So, now that you’ve read part one of this article, you’re convinced that greener is better for your business. But how do you begin? 

Trying to be eco-friendly can sometimes be a challenge. The wealth of information out there can be time consuming and confusing. Muddying the water is the need to also understand marketing principles. 

I’ve tried here to simplify the basics of what you should know.    

Steps for green marketing 

1. Research
Too many people overlook this crucial first step. Do not assume you know everything because the market can and does change rapidly. I harp on about this in most of my blogs, but it’s because in trying to save yourself time now, you’re likely to make a very costly mistake later.  

For example, Whirlpool learned the hard way that customers weren’t prepared to pay top dollar for a CFC-free fridge because they didn’t know what CFC’s were. 

Most importantly here, you should get to know your customers as well as the green consumer. What are customers really after in your product/ service? Which features can you modify for eco-friendliness and which ones should remain the same? Are your customers price sensitive? Do they care about and understand environmental issues?  

Some interesting general attributes of the green consumer include:

> They are likely to be well educated, young adults with slightly more disposable income.
> They will expect green products to function as effectively as non-green counterparts.
> Green is only seen as an added benefit, therefore, they won’t buy on the basis of environmental friendliness alone (product still needs to meet their basic needs).
> They are generally analytical and eager to learn about green issues. As such, they will take the time to read explanations about your product’s green attributes but will also be the most critical about false green qualifications.
> Green consumers won’t expect your business to have perfect green credentials but will expect you to show a proven commitment and process of improvement towards being green.  

2. Set objectives
Green marketing must be a strategic commitment not an adhoc sales initiative. Ask yourself why you’re trying to enter this space – is it to gain brand awareness, competitive advantage, achieve operational efficiencies or to get traction in new markets? Also consider how you will measure if you’ve achieved your goals (ie. competitive advantage could be measured through any increases in market share). 

3. Map your green path
Devise strategies on how you’re going to achieve your objectives, looking at both your internal and external environments.  You should also conduct a cost/ benefit analysis. Ask yourself questions like:
> How much will it cost you to implement your strategies?
> How will this impact on your pricing models and profits?
> Will your business reduce its operating costs from being more efficient?
> How much extra business do you expect to get back in return for your efforts? 

4. Paint the town green
You’ll need to create an eco-friendly marketing plan. To do this, you should address issues and ideas for each of the 4P’s of marketing (ie. product, price, place and promotion). 

a. Price
Generally speaking, it’s a case of all things being equal that people tend to choose the greener option. This means they’re not likely to forgo quality, functionality, convenience or price.  

I say “price” because whilst it’s generally accepted that green products have smaller economies of scale, consumers are only prepared to pay marginally higher pricing. If you do need to increase your prices, refer back to your research to see your customers’ price sensitivity as a guide for how far you can go, but note that people are only prepared to pay more for a product if they see added value compared to alternatives.  

b. Product
You should also look at your production processes. Can you source eco-friendly suppliers? Can you used recycled parts or make your product recyclable? Can you reduce waste or resource usage? Can you reduce the level of packaging used or use greener alternatives? 

c. Place
People are busy and they’re bombarded with a million alternatives to your product, so they won’t go out of their way to find you. Be green and convenient by utilising online and digital technology. 

d. Promotion
Some tips for devising promotions in your marketing plan include: 

> Reinforce the sentiment that one individual can make a difference. It is crucial that consumers understand they are able to help save the environment through their purchasing decisions. 

> Be green and proud in your communications (ie. packaging, labelling, advertising, website, etc) but do not overstate your claims. Back yourself with credentials. You should also encourage the market to be greener in general (ie. use green bags rather than plastic) and if possible, use a credible spokesperson or a carefully chosen celebrity to support the green movement and demand for your product. 
 

> Practice what you preach. Prove to the market that you are green in your communications. For instance, try using online and digital communications instead of print. The current rise of many citizen journalists in the blogosphere as well as websites, email newsletters and social networks dedicated to this niche will help you tap into new markets with just a mouse click. 

If you are going to use print collateral, don’t go bananas. Use eco-friendly print solutions like avoiding customised paper shapes and sizes that require cutting and wastage of paper, eco-friendly inks or paper and don’t print excessive amounts just to get cost economies. 

> Capitalise on your PR opportunities! If you’re green activities are innovative then your local paper or radio station may want to hear about it.   

5. Prove you’ve earned your stripes
Your customers aren’t stupid. Greenwashing or making green claims that aren’t stacked up to what they should be have can incur the wrath of consumers. Indeed, rising consumer complaints has resulted in the ACCC cracking down on the misleading use of terms like offset carbon credits, phosphate free, recyclable and eco-friendly.  

The Carbon Reduction Institute (www.NOCO2.com.au) is an excellent resource to assist you and can provide certification for the use of the widely recognised “No CO2” and “Low CO2” logos in your promotions to boost your credibility. 

> Clearly state your green benefits to the environment, the environmental characteristics and issues involved as well as explain how benefits will be achieved. 

> Release regular reports on your achievements. Let your customers know about the efficiencies created or how you have contributed to saving the environment (ie. since 2005, our new packaging processes have saved X tonnes of paper). 

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