Adotas

Where media buyers start online

Featured Author

Avi Savar is the founder and CEO of
Big Fuel

He began his career in the agent-training program at ICM in Los Angeles. Soon after, Avi transitioned to the creative side of entertainment -- as an independent producer, he created highly stylized programming for companies such as USA Networks, Fox, Columbia Tri-Star, and Showtime.

Anticipating the convergence of technology and media in 1998, Avi founded and launched AtBalance Solutions – an online media company delivering Health, Fitness and Wellness related content to Fortune 1000 companies.

Recruited back to “traditional” television in 2001, Avi served as the producer for ABC’s Good Morning America, before being asked to create and develop breakthrough entertainment programming for both MTV and VH1. Among other credits, he oversaw the production and was instrumental in the success of VH1’s hit series “The Fabulous Life of….”

In 2004, Avi launched Big Fuel Communications. Big Fuel has been pioneering the convergence of marketing and entertainment ever since. As a first-to-market innovator, Avi’s work continues to influence the shape of brand communications.

More articles by Avi Savar





Features

Is green marketing here to stay?

Written on
Jun 22, 2009 
Author
Avi Savar  |
Share
Is green marketing here to stay?

green_small.jpgADOTAS — To answer this question there are several factors to consider. First, we must look through the consumer lens to evaluate the marketplace, consumer motivation and accessibility. Additionally, we need to understand how those factors impact the key players responsible for developing, distributing and promoting the products that fill the marketplace: manufacturers, brands and marketers. So, let’s take it one step at a time…

THE MARKETPLACE

Although there is a slight discrepancy as to the definition of “green” or “sustainable,” The Green Marketplace is defined by the Natural Marketing Institute as “organic, natural or have an environmentally friendly benefit.” So, simply stated, “Green Marketing” is the positioning of a product or service within that marketplace. Therefore, in order to answer the above question, we first need to understand the dynamics of The Green Marketplace. NMI organizes the consumer base into five categories. Within those categories, half of consumers are aware of eco-friendly choices, but budget is forefront in their minds for making decisions.

lohas4.jpg

MOTIVATION

Driving the green marketplace there are factors to consider including: the psychological or social dynamics around “green” – this dynamic directly impacts the brand-consumer relationship and drives motivation. There is no question that “green” is mainstream. Beyond the immediate savings from purchasing conventional products and services, there has been a public shift toward choosing a lifestyle with a lesser environmental impact. The consumer choice is seen as stronger or more honorable. This motivation fuels the marketplace.

According to the NBC “Green is Universal” poll, 60% of consumers will buy eco-friendly products even if they cost more. Sixty-two percent say, “I am buying more environmentally responsible products than I did a year ago,” while 73% believe that “green” is good for the economy. Further, 85% of respondents say that companies have a social responsibility to protect the environment while 19% say they have boycotted a company/product in the past year because it had policies and practices that were not environmentally responsible. (Source, Adage 4/20/09)

However, cost is one of the largest motivational factors for consumers. In fact, “petroleum is cheap once again, having plummeted from US$147 a barrel in July to US$47 as of mid-March – greatly reducing the incentive for fuel efficiency. Across the United States and Canada, meanwhile, four million people have been thrown out of work by the recession. Investors have seen close to 25% of their life savings go down the tubes. Housing prices have crashed.” (Source, Financial Post, 4/6/09). This dramatically changes the motivational dynamic, pinning cost against social consciousness. However, as accessibility of green products increase, cost will inevitably decrease.

uscommunications.jpg

This will have a direct impact on consumer motivation allowing social responsibility to become the driving motivation factor.

powermotivation.jpg

ACCESSIBILITY

Having looked at the motivations that drive the marketplace — in order to truly evaluate the longevity of the market, we now need to look at how accessible the products and services within the marketplace are. In fact, accessibility tends to be the biggest hurdle for Millenials (13-25) to engage within the green marketplace:

That said, packaged-goods products on the market with claims to be environmentally friendly are expected to triple 2008′s numbers. As seen by the Datamonitor graph below, Eco-friendly product launches in 2008 were more than double that of 2007. Such data demonstrates the consumer demand for sustainable products despite needing to budget during the recession. According to a study conducted by the Opinion Research Corporation, 82% of consumers continue to buy green products during recession. Additionally, the Natural Marketing Institute (NMI) expects the green marketplace will reach $420 billion by 2010. Neilson reports, half of all consumers want to buy green products, but end up buying conventional products.

greenlight1.jpg

KEY PLAYERS

To truly access the long term viability of “green marketing” we must fully understand how these dynamics (marketplace, motivation and accessibility) directly impact the key players. These players include: manufacturers, brands, and marketers.

Marketers embrace “green” as it provides improved branding opportunities, by giving products differentiation as a point of engagement with consumers. Manufacturers and brands feels an increasing “social pressure” to go green. However, it is very hard to quantify the advantage. A study conducted by the Aberdeen Group shows the top five challenges marketers and brand face in developing green products.

challenge2.jpg

Research study by the Aberdeen Group

A perfect example of a major player (previous polluters) now showing their green side is Wal-Mart. “Wal-Mart’s marketing campaign is just the tip of the iceberg. Behind the scenes, a top-to-bottom review of its operations – including the efficiency of its buildings, trucking fleet and logistical systems – has resulted in hundreds of millions in savings, offering a crucial bottom-line incentive for shareholders. The company’s obsession with cutting costs even influences its suppliers, as Wal-Mart’s 70,000 vendors are required to “green” their products in order to gain access to shelves at over 7,500 outlets.” Source, Financial Post, 4/6/09.

So, to answer the question directly… As the marketplace floods with new products and services, increased accessibility will drive costs down. As cost becomes less of an issue, social responsibility will drive consumer motivation and increase demand. This demand creates a vested interest for the key players to make “green” work.

Which means — YES — Green marketing is here to stay.





Reader Comments.

Incredibly insightful post. Thank you so much for all the information on green products & markets. For more real time news on investor relations & green products visit http://www.proactivenewsroom.com

Thanks!

Posted by RM | 10:52 am on August 4, 2009.

You are dead on regarding green is here to stay and we’ll be seeing enormous growth. Check out http://www.villagetechnologies.ca. It is a design company I am associated with.

Posted by Adele Evans | 4:06 pm on August 14, 2009.

Leave a Comment

Add a comment

No Tags
Article Sponsor

More Features


  • Right now, at the beginning of 2012, what are you watching the most closely for its ad and marketing opportunities?

    View Results

    Loading ... Loading ...

Latest News

News Archive

Spotlight

Sponsormob Leads the Way Into RTB for MobileADOTAS – For more than half a decade, Berlin-based tech firm Sponsormob has remained relevant in an industry characterized by [...] more...


Adotas Partnership