ESG investing: meaning and trends
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Redefining Profit: How Green Marketing is Shaping the Future
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Marketing is stressful enough, especially in today’s day and age where attention spans are shorter than ever before – but green marketing adds a new layer and dimension to the struggle to attract and retain people’s interest.
Green marketing is becoming more popular as companies seek to transition to more sustainable business practices, but the sudden expectations placed on companies to prevent greenwashing may be too much to handle.
In this article, we’ll review what green marketing is, why it is important, and how businesses should adjust their own marketing tactics accordingly in order to align with a greener future.
What is green marketing?
Green marketing refers to the style of marketing which caters to advertising a product or service based on their true environmental criteria as opposed to greenwashing – which is when false claims are made to make a product or service appear more eco-friendly than it actually is.
“ Green marketing can be utilized during the manufacturing or packaging process of a product, such as when seeking to ethically source materials or use sustainable packaging. ”
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A green marketing is often implemented not only to demonstrate environmental sustainability and sustainable practices, but the use of green marketing campaigns can help to illustrate greater corporate social responsibility (CSR) and an effort to pertain to environmentally conscious consumers.
Adopting sustainable business practices and green marketing efforts may seem out of reach for many companies, but luckily – there are several ways in which companies can employ green marketing initiatives.
Examples of Green Marketing Strategies
Other common examples of green marketing strategies companies may choose to implement include:
- Partnering with or donating to non-profit organizations seeking to do good for the environment, such as extensive efforts to re-plant trees for reforestation;
- Labeling their products as recyclable or for using sustainable packaging;
- Demonstrating support for other existing environmental initiatives.
Green marketing and developing a green marketing strategy has become an essential tactic for marketing teams seeing as customers and investors alike have grown interested in spending their time and money on products companies can demonstrate as a worthwhile sustainable effort.
Why is green marketing important?
Green marketing is important for a multitude of reasons, however – the most important being that it is becoming an imperative marketing strategy for companies who wish to avoid greenwashing and create a business that exhibits longevity.
“ Businesses, even before climate change, had to ensure that their products or services could remain in demand over long periods of time – and now with newfound cognizance on sustainability, demonstrating this to the public is even more important. ”
👉 Did you know that up to 77% of people consider a brand’s sustainability before committing to purchasing a product or service?
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Green Marketing Initiatives & Why They're Important
Here are just a few reasons why green marketing is important in today’s day and age:
- Air & Water Pollution – Products that are sustainable enough to be categorized to be branded under green marketing tactics mean they are making a genuine effort to mitigate excess emissions, which results in improved air and water quality.
- Deforestation – Seeing as many companies contribute to cutting down trees either for supplies or to create new land to build factories, green marketing is important as it can help to avoid this deleterious consequence – as deforestation allows for excess carbon dioxide emissions.
- Plastic Pollution – Companies aiming to become more sustainable in order to genuinely practice green marketing will often seek ways to avoid using plastic, which can inspire others to do the same.
- Food Waste – Oftentimes, green marketing tactics will include demonstrating efforts to partner with other organizations looking to reduce their own environmental impact – such as global food waste. Therefore, green marketing can help to shed light on important issues caused by climate change that may otherwise go unnoticed.
- Sustainable Agriculture Practices – The environmental benefits for lands that undergo the use of eco friendly materials, implement the use of renewable energy, and implement eco friendly practices demonstrate not only improved environmental responsibility – but a more fruitful harvest. As a result, this type of farming can also be used as an invaluable asset for sustainable marketing.
- Comply with Environmental Regulations – With new and upcoming climate legislation and environmental regulations, companies who seek to become fit for green marketing can also ensure they will be able to adhere to existing and future environmental protocols.
What is the main reason why a green marketing strategy is important?
“ However, the overarching reason why green marketing is important is because it is essential for companies that wish to avoid being accused of greenwashing – which can negatively harm their business. ”
Green practices and overall environmentally conscious behavior is becoming a compulsory element to a more sustainable future, which can include simple yet approachable business practices such as seeking to decarbonize your supply chain, use recycled materials, and practice responsible waste disposal practices.
In fact, climate change and sustainability have become especially important amongst Gen Z and internet buyers, seeing as 62% prefer to purchase sustainable brands. This goes to show how green marketing is imperative as it works to build better brand image and ensure a company’s long-term success.
👉 Even though eco-friendly products are often more expensive than the less sustainable alternatives, consumers have revealed that they will opt for the more sustainable options when purchasing a product or service.
Green Marketing vs Traditional Marketing
| Aspect | Green Marketing | Traditional Marketing |
|---|---|---|
| Focus | Promotes environmentally friendly products and practices. | Focuses on promoting products and services to increase sales and market share. |
| Target Audience | Environmentally conscious consumers who prioritize sustainability. | General consumers who prioritize price, quality, and convenience. |
| Product Lifecycle | Considers the entire lifecycle of the product, from production to disposal, aiming to minimize environmental impact. | Focuses on the benefits and features of the product without considering environmental impact. |
| Marketing Strategies | Uses eco-labeling, sustainable packaging, and emphasizes the environmental benefits of the product. | Uses traditional advertising methods like TV, radio, print, and online ads to highlight product benefits. |
| Corporate Responsibility | Companies are often committed to corporate social responsibility (CSR) and sustainability initiatives. | May not prioritize corporate social responsibility or environmental impact in their business practices. |
| Consumer Trust | Builds trust through transparency about environmental practices and benefits. | Builds trust through brand reputation, quality, and reliability of products. |
| Regulation Compliance | Often exceeds regulatory requirements to demonstrate commitment to the environment. | Meets minimum regulatory requirements for product safety and quality. |
| Examples | Marketing biodegradable products, using recycled materials in packaging, promoting energy-efficient products. | Marketing luxury items, fast food, electronics with a focus on features and benefits rather than sustainability. |
What are the benefits of green marketing?
Green marketing isn’t only a newfound essential for environmental reasons, but it can prove extremely efficacious for those looking to grow their business as well – demonstrating that any green marketing initiative could also help to boost your business model and profit.
“ This is because green marketing can allow for reduced operational costs, pique the interest of younger investors and customers with sustainability initiatives, and also implement a multitude of efforts to ensure longevity. ”
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Benefits of Green Marketing & Creating Eco Friendly Products
Here are just a few reasons why green marketing could prove beneficial for your company beyond environmental welfare:
- Allowing your company to differentiate itself from its competitors on the market such as by committing to a green marketing challenge or addressing the environmental concerns of your stakeholders;
- Seeking to become eligible for green marketing often results in companies implementing the use of more energy efficient technologies which can help to reduce operational costs and utility bills;
- Implementing the ideals of ethical sourcing and using materials that are not only better for the environment such as sustainable packaging over the use of plastic, but will also encourage customers to purchase that product instead and ultimately boost sales revenue;
- Developing new ideas that otherwise would not have come to fruition if it weren’t for green marketing incentivizing the company to curate new strategies.
“ Ultimately, green marketing can help companies make more money and gain as well as retain their existing customer base – making green marketing a win-win situation for all stakeholders involved. ”
👉 The good thing about green marketing is that it isn’t a one-size fits all approach; there are multiple ways for companies to genuinely “go green” and subsequently implement green marketing tactics.
Why is green marketing shaping the future and how business success is measured?
The reason why green marketing is shaping the way companies approach their marketing tactics in the future is because the world, first and foremost, is changing in itself.
Climate change has become a part of our lives, meaning we have become used to expecting natural disasters, efforts to reduce the environmental impact of transportation, and so on – which means that another daily part of our lives (i.e., shopping and consumerism) has to change alongside it.
“ In the future and as we’ve already seen, companies will begin to define their success by their customer loyalty and sustainability as opposed to profits – because long-term profitability will become more valuable as opposed to a short-term, sudden spike in revenue. ”
Think about it this way – think of a nifty trend that takes off and everyone starts buying the product immediately, such as a new electric toothbrush. Sure, maybe the new toothbrush gets a lot of attention in the beginning – but overtime users will become aware of the batteries or plastics being used to manufacture and allow that product to work.
On the flip side, eco-friendly toothbrushes may have not been as well-known or used in the past – but after years of slow and steady traction, are now more commonly known, appreciated, and even sought after. In the end, the business selling the sustainable toothbrush will go further than the one selling the electric toothbrush.
👉 The same goes for businesses seeking to develop and market a green product – the success may not be as instantaneous, but in the long-run will prove to be a more valuable and durable business.
How can your company adjust to green marketing practices?
It may seem overwhelming that green marketing is becoming a new tacit essential for any start-up or even well-established company, but don’t worry – there are a vast array of ways your company can adhere to the values of green marketing.
If your company is looking to adjust to the ideals of green marketing, these are a few things to keep in mind:
Making Your Product Design More Sustainable
Even if your product is recyclable, it still may not win over Gen Z consumers – seeing as life cycle is more important than ever in the midst of climate change. Therefore, it’s important to think of the manufacturing, packaging, and delivery process for your product when it comes to green marketing.
Be Ready to Take Responsibility
You can’t implement green marketing if your company doesn’t make a genuine effort to reduce the environmental impact of its products. Therefore, green marketing requires everyone involved at your company to take greater note of the ecological and societal impact your product or service currently creates and remain equipped to make the necessary changes.
Small Steps with Packaging
If the thought of changing up your entire production line or supply chain sounds like a massive headache, have your company start small on the road towards green marketing with more sustainable packaging.
This way, you have a valid component to use in your green marketing without having to tackle the entire life-cycle of your product right away.
Price Tags
It may seem counterintuitive to raise the price of your new green product, but it will be essential if you want to keep the funding for future eco-friendly endeavors going. In other words, your company won’t have the money to implement new green initiatives without a hefty price tag – and studies show that customers will be understanding of this, as ⅔ of people are willing to pay more for sustainable products.
Other small steps that can be taken towards green marketing include:
- Seeking to use more recyclable materials in order to promote the use of sustainable packaging;
- Developing a new email campaign that can be used for all demographics and stakeholders;
- Upgrading the equipment and vehicles used to inherently reduce the emissions a product creates to ultimately be able to market your products as less carbon intensive;
- Creating catchy slogans that depict your company’s honest commitments to environmental reform;
- Dedicating time and money to curating a social media and marketing team aware of common greenwashing tactics in order to ensure they are avoided;
- Demonstrating your support towards other companies environmental initiatives.
Overall, green marketing is going to continue to overshadow the importance and value of profit in business as sustainability continues to become a predominant business and ethical practice. Therefore, it’s best for all companies to familiarize themselves with green marketing today to cultivate a better future for their business tomorrow.
What about Greenly?
If reading this article about how green marketing has made you interested in reducing your carbon emissions to further fight against climate change – Greenly can help you!
It can be difficult to understand how green marketing will impact your company's future, but don’t worry – Greenly is here to help! Click here to book a demo and get personalized expertise on how various environmental regulations and laws will have an impact on your own emission reductions and efforts to decrease your environmental impact.
Greenly can help you make an environmental change for the better, starting with a carbon footprint assessment to know how much carbon emissions your company produces.
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