Green Marketing Believers and Skeptics


A long, long post today all about the green/environmental/sustainability movement and its effect on consumers. So take a deep breath and start reading...

Burst Media's widely covered report on green advertising (Direct, eMarketer, MediaPost and Advertising Age) shows that while consumers have a high recall (37% frequently recall and 33% occasionally recall) of green advertising messages for environmentally friendly products or services, they don't necessarily believe the claims made in those ads (23% seldom believe and 65% sometimes believe).

Actually, ads are only the fourth most important source of information about green companies, initiatives and products for consumers, preceded by news stories, word-of-mouth and personal research. Nearly 80% use the Internet to research and more than 40% frequently or occasionally investigate ad claims. Unfortunately, most people complain that companies do not offer enough info about green products and services (= average at best).

The most dedicated green consumers (the top 5% who are "completely green" - 10% for 18-34 year olds) are the biggest cheerleaders of green ads - 44% think advertisers are doing an excellent or good job at providing info on green claims. In comparison, less than 20% of "aspirationally green" consumers (those 44% that incorporate a few things that are green into their daily lives but "have a long way to go") think the same.

Bottom-line: The popularity of current green-marketing initiatives offers a unique marketing opportunity and the Internet with its targeting possibilities is a good place to start. "Businesses that can support their claims in their green messaging and sustainability topics in a way that incorporates the consumers in the conversation are at an advantage in the marketplace. In providing information that is accessible, transparent and easy for consumers to share, businesses have the opportunity to reach consumers in relation to a core personal value."

An IRI study on sustainability (covered in Progressive Grocer) showed that half of U.S. consumers consider at least one sustainability factor when selecting brands to buy or stores to shop, 30% look for eco-friendly products and packaging in their brand selection, 25% consider fair trade practices along with eco-friendly or organic designations in selecting a shopping destination, and 40% search specifically for organic products. A related study from Mintel (covered by RetailWire) also shows that green is going mainstream - more than twice as many green products were rolled out in 2007 compared to 2005. And for good reason -  36% of adults regularly buy green products (triple the number from 16 months ago) and only 10% never buy green products (down from 20%.)

According to a Mambo Sprouts Marketing survey (covered in Progressive Grocer and eMarketer) consumers remain interested in purchasing environmentally friendly items and organic food, despite the economic situation. More than half are buying the same amount compared with 6 months ago and 36% are buying even more. In order to make it work, they shop closer to home, combine trips, rely more on coupons and sales, stock up on products and cook at home. In fact, nearly 70% are still OK with spending 20% more for sustainable items. For a different take take a look at the Landor Associates study (covered in MarketingDaily) which maintains that consumers are cutting back on often-pricier green purchases and plan to spend even less in the coming year.

While more consumers are going green, they don't always understand what it means. According to a Shelton Group's EcoPulse study (covered in BrandWeek) there's still a lot more education to be done. For example, while 49% said a company's environmental record is important in their purchasing decisions, only 21% had chosen one product over the other for this reason and only 7% could name the product they purchased. Additionally, more people put their personal comfort ahead of the environment (46% vs 31%) and 40% had negative or ambivalent responses to increased media attention regarding our impact on the environment. A related study by BuzzBack (also covered in BrandWeek) found that while more than half of US and UK residents agree that "the environment is the most important issue, only one-third knew what 'sustainable' means.

Finally, a study from Cone (covered in MarketingDaily) reports that while nearly 25% consistently buy products they believe to be environmentally friendly, 48% think that "green" products are actually beneficial for the earth and only 22% understand that such purchases are simply less harmful than competing products. Additional findings:
  • 47% trust companies to tell the truth in environmental messages and 45% believe companies accurately communicate information about their environmental impact.
  • 80% say that third-party certification is important and 63% are influenced in their purchasing by these designations.
  • 70% said that quantifying a product's environmental impact influences their decisions, and the more specific it is, the better. For example, while 36% find a paper product labeled "environmentally friendly" credible, for example, 60% say that one marked as "made with 80% post-consumer recycled paper" is believable.
  • 74% are more influenced by messages that link a product with a specific environmental result--for example, hybrid cars produce lower emissions.
  • Only 14% say environmental messaging makes them either feel cynical or overwhelmed, 38% say they feel informed by green marketing messages, and another 11% say they feel empowered or inspired.

Posted by Universal Ad

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