As a business operator, you manage an array of issues from balancing cash flows to the skills shortage crisis. Should global warming be included too?  

The answer is yes, but why?  

Your business attracts and retains customers by satisfying their needs – the fact that your customers are concerned about global warming means you should be too. Just look at the results of our last election to see the impact that championing (or neglecting) this issue can have. 

But before you go off to pledge, contribute, offset and recycle until your fingers bleed, ask yourself, how can your business make the biggest impact to both saving the environment and your bottom-line?  

Through green marketing. 

Green marketing has been rebadged as many times as Lindsay Lohan has checked into rehab. Environmental marketing, sustainable marketing, ecological marketing…they’re all essentially about providing and promoting products and services that satisfy consumer needs with minimal detriment to the environment. This can include modifications to products, packaging, suppliers, distribution channels and production process as well as changes to promotions. 

At this point, I’m going to take the liberty of coining a new term, greener marketing. There are very few companies that are truly green or fully engage green marketing practices, so for the reality conscious, I’ll talk about concerted efforts to improve – to at least be “greener”. 

So why should your business be greener? 

Some organisations become greener out of necessity. McDonald’s replaced its polystyrene foam burger packaging with waxed paper as a result of consumer backlash and Xerox released its  “Revive 100% Recycled Paper” after competitors introduced recycled photocopy paper first. 

Being proactive, you should be greener because it offers a competitive advantage. World wide, people are concerned about climate change and are changing their behaviour accordingly. Recent surveys show that 94% of all consumers prefer to do business with companies that demonstrate a care for the environment[1].  

As such, social responsibility enables your business to form closer and more meaningful relationships not only with current customers, but the wider community, allowing access to new markets previously untouched.   

Going greener also enables your business to create a unique or stronger brand positioning. For instance, The Body Shop products are globally sought after due to its strong stance on social responsibility and environmental business practices.  

And don’t forget the benefits to your bottom-line. Green marketing looks at how you can increase efficiencies from resource use whilst satisfying customer needs and achieving business objectives. Whilst green activities may incur initial start up costs, your business will benefit from longer term savings.  

But as with all good things, there are some hurdles you need to be aware of. There are many companies making false eco-friendly assertions, which could lead to consumers being dubious of such claims. Known as “greenwash”, this has lead to a rise in consumer complaints, sparking the ACCC to crack down on false claims of green benefits including promises to offset carbon credits and the use of terms like phosphate free, recyclable and eco-friendly.  

Also in many cases, environmental friendliness is not the primary purpose for a purchase. It’s merely a side benefit. Thus, understanding the exact needs of your market is essential.  

For example, Philips Lighting produced a compact fluorescent light bulb (CFL) called “Earth Light”. At $15 a bulb, compared to the 75c for a regular bulb, sales under the niche eco-friendly banner were less than impressive. People just weren’t prepared to pay 2000% more to be green. So they rebranded the product as “Marathon” and repositioned it as having super long life benefits with long term cost savings to combat concerns at the time over rising electricity costs. Sales soared. The fact that the light bulb had green benefits was, in this instance, a side benefit that made consumers feel good in their purchase decision.  

As you can see, being greener opens up many opportunities and can bring about long term cost savings and great efficiencies for the business savvy. But be wary of overstating your green credentials and make sure you position your offering correctly to meet your market’s needs. 

It is recommended that you seek professional advice before going green. If you require more information or assistance with your green marketing, please contact Australian Business Marketing Services on 1800 505 529. 

Otherwise, tell us your story! If you have a similar experience or question relating to the article above, please do not hesitate to let us know in the comments section below. We will attempt to respond as soon as possible.

By Vanessa Tsui