What is Green Marketing and How to Do It Right?

Green marketing is a popular strategy in the corporate world, with consumers increasingly cognizant of the ecological and societal effects of their buying choices. But what exactly is green marketing and how can you use it to promote your products or services? Stay until the end of this blog post to find out more.

What “Green Marketing” does even mean?

Green marketing is a term that describes the process of creating and promoting products or services that have a positive impact on the environment or society. Green marketing is not just about using green colors or logos, but about designing products or services that are environmentally friendly or sustainable in their production, packaging, distribution, or consumption. 

A bright example of eco-friendly delivery solutions are our partners from BOX NOW. 

Green marketing also involves communicating the environmental benefits or values of the products or services to the potential customers, and convincing them that choosing green products or services is not only good for the planet but also for their own well-being.

Is green marketing just a trendy marketing strategy? 

Surprisingly or not, “green marketing” has been around for a long time. To be exact, the trace of the first green marketing initiatives can be traced back to the 1980 year. 

Here’s what Wikipedia has to say about it:

The term Green Marketing came into prominence in the late 1980s and early 1990s. The American Marketing Association (AMA) held the first workshop on “Ecological Marketing” in 1975. The proceedings of this workshop resulted in one of the first books on green marketing entitled "Ecological Marketing".

The Corporate Social Responsibility (CSR) Reports started with the ice cream seller Ben & Jerry's where the financial report was supplemented by a greater view of the company's environmental impact. In 1987 a document prepared by the World Commission on Environment and Development defined sustainable development as meeting “the needs of the present without compromising the ability of future generations to meet their own need”, this became known as the Brundtland Report and was another step towards widespread thinking on sustainability in everyday activity. 

It seems that truly there are no new answers, just new questions.

Today’s Green Marketing Is Leaning On A Well-defined User Segment - The LOHAS Demographic

If you haven't done your research, green marketing can sound like something that a bunch of late-drinking vintage-looking teens have come up with (obviously we are joking :)). But the truth is that this eco-friendly approach to marketing is something serious and every eCommerce owner should start looking at this direction because green marketing is constantly gaining popularity. 

The driving force behind this is a growing market segment of consumers who would rather buy green products, even if they cost a little more. The Lifestyles of Health and Sustainability (LOHAS) demographic is what these customers are referred to as. 

Let’s see how Wikipedia describes this user segment:

[LOHAS] is a demographic defining a particular market segment related to sustainable living, and "green" ecological initiatives, and is generally composed of a relatively upscale and well-educated population segment. 

LOHAS customers are the most devoted buyers of environmentally and socially conscious goods, and they actively promote environmental health. Furthermore, they exhibit the ability to influence other customers.

With over 100 million LOHAS customers globally, this industry shows a booming demand for green marketing initiatives centered around environmentally friendly procedures and goods.

Green marketing strategy

The goal of green marketing is to sway consumer behavior and preferences in favor of goods and services that are more socially or ecologically responsible. Green marketing seeks to inform and influence consumers about the effects that their purchases have on the environment and society. 

• Examples of such effects include:
• Lowering greenhouse gas emissions
• Protecting natural resources
• Promoting fair trade
• Enhancing human health and well-being

In addition to increasing market share, customer loyalty, and profitability, green marketing aims to give companies that implement green practices a competitive edge. 

Furthermore, by promoting awareness and encouraging constructive change among customers, companies, and legislators, green marketing can also help advance the more universal goals of social justice and environmental conservation.

On top of producing eco-friendly goods, entrepreneurs can use supplementary strategies to develop a company plan that leverages the advantages of green marketing. 

An eco-friendly marketing plan may include any of the following elements:

• Printing marketing brochures on environmentally friendly paper and pigments
• Abandoning physical materials in favor of digital marketing
• Using ethical methods for disposing of garbage 
• Utilizing recycled or environmentally friendly materials in product packaging
• Pursuing formal certifications in the fields of sustainability and
• Employing effective packaging and delivery techniques
• Utilizing sustainable agricultural methods and renewable energy
• Making investments to reduce carbon emissions
• Green firms adopt a long-term perspective in which the health of the environment and future generations are given precedence above immediate financial gain
• Leveraging and promoting environmentally friendly delivery solutions, such as powered by renewal energy courier boxes

The list of green marketing tactics can go on, but as long as you remember the goal of green marketing which is to advertise goods and services that are good for the environment, you will be fine. 

Also, don’t forget that this approach can assist companies in lessening their environmental effect, attracting eco-aware customers, and improving their brand image. Green marketing does, however, confront several difficulties, including regulatory compliance, avoiding greenwashing, and persuading skeptics. 

Here are a few instances of successful eco-friendly marketing tactics:

Product modification

‍The process of altering a product's features, composition, or design to make it more environmentally friendly. For instance, Patagonia encourages customers to repair and reuse their products rather than purchase new ones and makes its apparel from organic cotton and recycled materials.

Modifications to the production process

‍This entails using more environmentally friendly procedures when producing, distributing, or running a business. For instance, IKEA has promised to run entirely on renewable energy sources by the year 2025 and allows its consumers to purchase solar panels for their residences.

Sustainable packaging

‍Reducing the quantity of packaging waste or using recyclable or biodegradable materials for packaging are two examples of sustainable packaging. For instance, Lush sells its products in "naked packaging," which denotes that there is no wrapping or container on them. Additionally, customers are welcome to recycle their empty pots and bottles by returning them to the store.

Changing advertising: This entails emphasizing in the marketing communication the advantages or environmental aspects of a good or service. For instance, Tesla informs consumers about the environmental effects of transportation while highlighting the energy economy and low carbon footprint of its electric cars.

Green marketing can offer several benefits for your business

Let’s not forget that the real goal of adopting an eco-friendly way of doing business is to preserve the environment for future generations. But still, a well-executed green strategy can impact your brand in many positive ways, let’s look at some examples.

Fostering a positive brand image involves demonstrating a commitment to environmental and social causes, differentiating your brand from competitors. Nielsen reports that 66% of consumers are willing to pay more for products from socially and environmentally responsible brands. Embracing green practices not only broadens your customer base but also positions your brand as a forward-thinking choice.

As we mentioned, the appeal of green products extends to a growing demographic of environmentally conscious consumers, with a 71% global increase in searches for sustainable goods over the past five years, according to The Economist Intelligence Unit. Integrating green initiatives builds lasting connections with customers, fostering loyalty and retention. A study by Cone Communications found that 87% of consumers are likely to purchase from a company advocating for an issue they care about.

Beyond brand and customer relations, adopting green practices often brings tangible financial benefits. Using renewable energy, reducing waste, and optimizing the supply chain lead to cost savings and enhanced efficiency. Accenture reports that 99% of CEOs consider sustainability crucial to future business success, highlighting the integral role of eco-friendly practices in overall business strategy.

Green Marketing is not all sunshine and roses

Although leveraging Green Marketing strategies seems like a very good idea, there are a few pitfalls that have to be addressed. For example…

Meeting consumer expectations

‍Consumers increasingly prioritize the environmental and social performance of products and services, expecting brands to uphold green claims transparently. Failure to meet these expectations may result in a loss of trust and customer defection. A notable example is Volkswagen, which faced severe consequences, including a sales drop, when it was exposed for cheating on emissions tests.

Complying with regulations

‍Green marketing is governed by environmental and consumer protection laws. Businesses must adhere to these regulations, staying abreast of market-specific changes. Non-compliance can lead to legal repercussions, fines, or bans. Amazon, for instance, was fined $1.2 million by the US Environmental Protection Agency for allowing the sale of illegal pesticides on its platform.

Avoiding greenwashing

‍Greenwashing involves making exaggerated or false environmental claims, harming a brand's reputation, and undermining genuine green efforts. H&M faced accusations of greenwashing for its Conscious Collection, criticized for containing minimal recycled or organic materials and having a high environmental impact due to its fast fashion model.

Balancing profitability and environmental responsibility

‍Green marketing presents a challenge in reconciling financial goals with environmental obligations. Higher costs, such as research and development, sustainable sourcing, and eco-friendly practices, need to be recuperated for green products or services to remain competitive and profitable. Tesla, despite its popularity and innovation in electric vehicles, has struggled to achieve consistent profitability and growth, highlighting the inherent challenges.

With all being said, every online merchant has to understand that green marketing is not a one-time or isolated activity, but a continuous and integrated process that involves all aspects of marketing  

Is having a “green marketing” in your marketing mix worth it?

Your aim with green marketing is to showcase products and services as environmentally friendly, making a positive impact. This approach not only reduces your environmental footprint but also attracts customers who prioritize eco-friendly choices, ultimately enhancing your brand image. 

Yet, green marketing comes with its challenges, such as navigating regulations, avoiding greenwashing, and convincing skeptics.

To succeed in green marketing, you need a comprehensive and strategic approach that integrates environmental considerations into every aspect of your marketing, from communication to product development. 

By adopting best practices and leveraging green marketing technologies, you can craft an effective and enduring green marketing plan. This not only benefits the environment but also contributes to the success of your company, two reasons that are motivating enough, if you ask us.

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