From driving hybrid cars to using less paper products, people everywhere are using the power of the purse to live a more sustainable life. As more consumers base purchasing decisions on their environmental impact, savvy corporations and small businesses are responding by incorporating green marketing strategies to boost their street credibility — and their profit margins.
What is Green Marketing?
Green marketing refers to the process of selling products or services based on their environmental benefits. Such a product or service may be environmentally friendly in itself or produced and/or packaged in an environmentally friendly way.
- Bank of America reduced paper products by 32% from 2000-2005, runs an internal recycling program that recycles 30,000 tons of paper products and offers a $3,000 cash-back reward for employees who buy hybrid cars.
- Starbucks recently began using coffee cup sleeves made of recycled paper which saves almost 78,000 trees per year.
Saving Green & Making Green
Companies are also profiting from concepts of green marketing by combining environmental and economic sustainability, and consumers are responding:
- Despite the economic recession, Seventh Generation reported company sales were up 50% in 2008.
- According to a research report from Mintel, “Green Marketing in Finance, 2011,” 72% of respondents said they “feel good about working with a financial services firm that invests in companies that are looking at eco-solutions.”
- In this same survey, 45% of respondents would like to see financial institutions provide monetary incentives to businesses that are developing new technologies and processes that are environmentally friendly.
Socially Green Technologies
Green marketing has gone digital with the help of social media and technology. Utilizing Facebook or Twitter instead of print advertisements in magazines or providing digital version of press kits instead of printed versions are all steps marketers can take. Major corporations are also utilizing social media to promote their company-wide green initiatives:
- General Electric has introduced the Ecomagination Challenge, which challenges businesses, entrepreneurs, innovators, citizens and students to generate ideas how to improve the planet’s energy future. This project is promoted through the company’s website, blog and Twitter.
- IBM has created a Smarter Planet blog and encourages Web site visitors to participate in conversations about creating a more sustainable planet. IBM also uses Facebook pages and Twitter accounts to keep the conversations alive.
- Clorox has developed a mobile application and website devoted to making it easier to see the chemical makeup of its products
So what does the future hold for green marketing?
As more companies begin to realize the benefits of green marketing, several trends are expected to emerge in coming years:
- More companies implementing teams of employees to focus exclusively on environmental sustainability efforts
- Employees who are more engaged in green initiatives by communicating about green practices and generating new ways to help
- More green-friendly products incorporated into the supply chain
- More companies using social media and electronic files to communicate their messages with customers
What do you think? Share your ideas with us on the future of green marketing and how technology, including social media, will have an impact on creating a more sustainable planet.