Choosing the Right Green Marketing Strategy

Choosing the Right Green Marketing StrategyBy Paul N. Bloom

onsumers, shareholders and society all can benefit when a company integrates environmental friendliness into its marketing strategy. If properly implemented, “green marketing” can help increase the emotional connection between consumers and brands. Being branded a green company can generate a more positive public image, which can enhance sales and increase stock prices.
Companies seeking higher revenues with green initiatives must learn to carefully size the potential market in their industry and consider their potential to differentiate their green products from those of competitors.
How, then, should companies handle the dilemmas associated with green marketing? Always keep in mind that consumers are unlikely to compromise on traditional product attributes, such as convenience, availability, price, quality and performance. A range of strategies work best under different market and competitive conditions.
Green Consumer SegmentsWhile buying green may not appeal to everyone, there are substantial numbers of consumers who are potentially receptive to a green appeal. Marketers can segment the market based on a Roper survey into different shades of green, ranging from True Blue Greens, who have strong environmental values, to Grousers and Basic Browns, who are uneducated and apathetic about the environment, respectively.
Choosing a Strategy
Companies contemplating a green strategy must consider how competitors are pursuing these potential segments. They must ask two primary questions. First, how substantial is the green consumer segment for the company? Second, can the brand or company be differentiated on the green dimension? Depending on how these questions are answered, companies should consider one of these strategies:

• Lean Greens try to be good corporate citizens, but they are not focused on publicizing or marketing their green initiatives. Instead, they are interested in reducing costs and improving efficiencies through pro-environmental activities, thereby creating a lower-cost competitive advantage. An example is Coca-Cola.
• Defensive Greens usually use green marketing as a precautionary measure, a response to a crisis or a response to a competitor's actions. They seek to enhance brand image and mitigate damage, recognizing that the green market segments are important and profitable constituencies that they cannot afford to alienate. Gap Inc. falls into this category.
• Shaded Greens invest in long-term, systemwide, environmentally friendly processes that require a substantial financial and nonfinancial commitment. They have the capability of truly differentiating themselves on greenness, but they choose not to do that because they operate in markets in which they can make more money by stressing other attributes. Toyota implements this strategy in marketing its Prius.
• Extreme Greens are companies shaped by holistic philosophies and values. Environmental issues are fully integrated into the business and product life-cycle process of these firms. Examples include The Body Shop, Patagonia and Honest Tea.

Implementation ConsiderationsUnderstanding where a brand or company really stands on the two dimensions of green market size and the ability to differentiate requires careful research. Companies must gather data from customer records or surveys to determine where their current customers fall in the range of green consumers and determine how those consumers perceive the greenness of competitors in relation to the company's brand. They also must cultivate a corporate culture that supports the success of a green marketing strategy and then educate consumers about it.
Conclusion: Fulfilling the PromiseWhile there are obvious benefits to integrating environmental friendliness into consumer marketing, there is a lot at stake for those who choose to implement green marketing strategies.
As consumers' needs and preferences evolve, they demand business practices and products that are friendly to the environment. Ultimately, the challenge lies with marketers to come up with a green solution that works for consumers as well as companies.