Green Marketing.ppt https://www.slideteam.net/powerpoint/Green-Marketing

In today’s environmentally concerned world, green marketing, sometimes referred to as environmental marketing or sustainable marketing, has emerged as a crucial strategy. It entails advertising and offering products and services that have been manufactured and distributed with as little harm to the environment as possible. The whole marketing process, including product creation, manufacturing, distribution, and communication, is covered by green marketing. Its main goal is to satisfy customer expectations while defending and safeguarding the environment.

1. Green MarketingGreen Marketing

2. What is it?What is it?

Using claims about a product's Using claims about a product's
environmental "friendliness" in order environmental "friendliness" in order
to promote the productto promote the product

3. Examples of “green” advertising Examples of “green” advertising
claims?claims?

biodegradablebiodegradable

compostablecompostable

recyclable/recycledrecyclable/recycled

environmentally safeenvironmentally safe

ozone friendlyozone friendly

4. Why do companies use it?Why do companies use it?

Research shows that consumers Research shows that consumers
prefer--and are willing to spend more prefer--and are willing to spend more
money on--products they perceive as money on--products they perceive as
environmentally safeenvironmentally safe

More than half of American More than half of American
consumers have purchased a product consumers have purchased a product
because of a label that said it was because of a label that said it was
environmentally safe or environmentally safe or
biodegradablebiodegradable

5. Are there problems of deception Are there problems of deception
with “green” claims?with “green” claims?

Keyes Keyes FibreFibre Company's Company's claims for Chinet claims for Chinet
disposable tablewaredisposable tableware
•biodegradablebiodegradable
•compostable in municipal solid waste compostable in municipal solid waste
composting facilitiescomposting facilities
•RecyclableRecyclable

In fact, according to the FTCIn fact, according to the FTC
•Won’t degrade in landfillWon’t degrade in landfill
•Few municipal composting facilitiesFew municipal composting facilities
•No facilities accept it for recyclingNo facilities accept it for recycling

6. Why are consumers fooled by such Why are consumers fooled by such
claims?claims?

consumers generally can't tell consumers generally can't tell
whether a product will do what the whether a product will do what the
advertiser claimsadvertiser claims
•degrade in a landfilldegrade in a landfill
•not deplete the ozone layernot deplete the ozone layer

even if the claims are true, it may even if the claims are true, it may
not be evident for five, ten, fifty or not be evident for five, ten, fifty or
more yearsmore years

7. 
As a result of concerns about As a result of concerns about
growing use of such claims, the FTC growing use of such claims, the FTC
issued Guides for the Use of issued Guides for the Use of
Environmental Marketing ClaimsEnvironmental Marketing Claims

8. What do the Guides cover?What do the Guides cover?
Any way in which a message can be Any way in which a message can be
receivedreceived

labelinglabeling

advertisingadvertising

promotional materialspromotional materials

9. Any form a message can takeAny form a message can take

wordswords

symbolssymbols

emblemsemblems

logoslogos

depictionsdepictions

product brand namesproduct brand names

10. 260.6 General Principles260.6 General Principles
(a) Any qualifications or disclosures (a) Any qualifications or disclosures
should be sufficiently clear, should be sufficiently clear,
prominent and understandable to prominent and understandable to
prevent deceptionprevent deception
(b) Claim should make clear whether it (b) Claim should make clear whether it
applies to the product or the packageapplies to the product or the package
(c) Claims should not overstate the (c) Claims should not overstate the
environmental attribute or benefitenvironmental attribute or benefit

11. 260.7 Environmental Marketing 260.7 Environmental Marketing
ClaimsClaims
(a) General claims (e.g., “eco-safe”) (a) General claims (e.g., “eco-safe”)
must bemust be

not misleadingnot misleading

substantiated in advance of the claimsubstantiated in advance of the claim
•burden of proof on advertiserburden of proof on advertiser

12. (b) Claims of degradability, (b) Claims of degradability,
biodegradability, and photodegradabilitybiodegradability, and photodegradability

are deceptive unless there is are deceptive unless there is
scientific evidence that the entire scientific evidence that the entire
product or package will product or package will completelycompletely
break down and return to nature (i.e. break down and return to nature (i.e.
decompose) within a reasonably decompose) within a reasonably
short period of timeshort period of time

13. (c) Claims of compostability (of the (c) Claims of compostability (of the
product or package)product or package)

are deceptive unless all the materials are deceptive unless all the materials
in the product or package will break in the product or package will break
down into usable compost in a safe down into usable compost in a safe
and timely mannerand timely manner
•in an appropriate composting facility; orin an appropriate composting facility; or
•a home compost pilea home compost pile

14. 
are deceptive ifare deceptive if
•the item is not compostable in a home the item is not compostable in a home
compost pile; andcompost pile; and
•there are no institutional or municipal there are no institutional or municipal
composting facilities in the community composting facilities in the community
where the item is soldwhere the item is sold

15. (d) Claims of recyclability(d) Claims of recyclability

are deceptive unless the product or are deceptive unless the product or
package can be collected, separated or package can be collected, separated or
otherwise recovered from the solid waste otherwise recovered from the solid waste
streamstream
•for reuse; orfor reuse; or
•in the manufacture or assembly of another in the manufacture or assembly of another
package or productpackage or product
•through an established recycling programthrough an established recycling program

16. 
If only part of a package or item is If only part of a package or item is
recyclable, any claim of recyclability recyclable, any claim of recyclability
must be adequately qualified to must be adequately qualified to
avoid consumer deceptionavoid consumer deception

A claim of recyclability is not A claim of recyclability is not
deceptive if only minor, incidental deceptive if only minor, incidental
components are non-recyclablecomponents are non-recyclable

17. 
Claims of recyclability have unique Claims of recyclability have unique
potential for deception becausepotential for deception because

not all communities have recycling not all communities have recycling
facilitiesfacilities

not all facilities recycle the same not all facilities recycle the same
products and packagesproducts and packages

18. As a general rule, use of the term "recyclable" As a general rule, use of the term "recyclable"
and/or use of symbols that imply recyclability are and/or use of symbols that imply recyclability are
deceptivedeceptive

unless collection sites for recycling the material unless collection sites for recycling the material
are available to a are available to a substantial majority of substantial majority of
consumers or communitiesconsumers or communities

even if collection sites are established in a even if collection sites are established in a
significant percentage of communities or significant percentage of communities or
available to a significant percentage of the available to a significant percentage of the
populationpopulation

unless the claim is qualified to indicate the limited unless the claim is qualified to indicate the limited
availability of recycling programsavailability of recycling programs

19. Symbols that imply recyclability includeSymbols that imply recyclability include

three chasing arrowsthree chasing arrows
•FTC Guide says that, unless qualified, it means FTC Guide says that, unless qualified, it means
product or package is made of product or package is made of recycled recycled
materials as well as being recyclablematerials as well as being recyclable

SPI symbolSPI symbol
•code developed by the Society of the Plastics code developed by the Society of the Plastics
Industry to indicate the type of plastic from Industry to indicate the type of plastic from
which product is madewhich product is made
•numbers run from 1 to 7numbers run from 1 to 7

20. Qualifications that adequately notify Qualifications that adequately notify
consumers of limited availability of consumers of limited availability of
recycling programs includerecycling programs include

"This bottle may not be recyclable in your "This bottle may not be recyclable in your
area"area"

"Recyclable in the few communities with "Recyclable in the few communities with
facilities for foam polystyrene cups"facilities for foam polystyrene cups"

providing the approximate number or providing the approximate number or
percentage of communities or population percentage of communities or population
to whom programs are availableto whom programs are available

21. (h) Claims relating to the preservation (h) Claims relating to the preservation
of the ozone layerof the ozone layer

For example:For example:
•ozone safeozone safe
•ozone friendlyozone friendly
•contains no CFCscontains no CFCs

are deceptive if the product contains are deceptive if the product contains
any ozone-depleting substanceany ozone-depleting substance

22. 
Problem: all ozone is not alike:Problem: all ozone is not alike:

ozone layer in upper atmosphere is ozone layer in upper atmosphere is
necessary to prevent sun's harmful necessary to prevent sun's harmful
radiation from reaching earthradiation from reaching earth

ozone at ground level forms smogozone at ground level forms smog
• can cause serious breathing problemscan cause serious breathing problems

"ozone safe" products should not "ozone safe" products should not
harm the atmosphere at either levelharm the atmosphere at either level

23. Green PowerGreen Power

Green marketing heavily used in Green marketing heavily used in
electricity generation/marketingelectricity generation/marketing

What is green power?What is green power?

electric power that iselectric power that is
•generated by renewable resourcesgenerated by renewable resources
•less polluting than fossil fuels and less polluting than fossil fuels and
nuclear powernuclear power

24. What types of power are “green”?What types of power are “green”?

Wind Wind

BioenergyBioenergy

Geothermal energyGeothermal energy

Solar power Solar power

Hydroelectric powerHydroelectric power

25. Why is green power attractive to Why is green power attractive to
consumers?consumers?

Electricity generation is largest industrial Electricity generation is largest industrial
polluter in US; currently produces:polluter in US; currently produces:

two-thirds of the annual U.S. emissions of two-thirds of the annual U.S. emissions of
sulfur dioxide (main cause of acid rain)sulfur dioxide (main cause of acid rain)

30 percent of the nitrogen oxide emissions 30 percent of the nitrogen oxide emissions
(stress forest ecosystems; combine with (stress forest ecosystems; combine with
organic compounds in sunlight to form organic compounds in sunlight to form
smog)smog)

40 percent of carbon dioxide emissions 40 percent of carbon dioxide emissions

toxic-metal emissions (mercury and lead)toxic-metal emissions (mercury and lead)

nuclear waste.nuclear waste.

26. What are the “dirtiest” energy What are the “dirtiest” energy
sources?sources?

CoalCoal

OilOil

Nuclear powerNuclear power

Natural GasNatural Gas

27. What are the green power options?What are the green power options?
1. Green Pricing1. Green Pricing

Consumers do not have to change their Consumers do not have to change their
electricity providerelectricity provider

Customers choose to pay a premium on Customers choose to pay a premium on
their electricity bill to cover the extra cost their electricity bill to cover the extra cost
of purchasing clean, sustainable energy of purchasing clean, sustainable energy

As of March 2003, more than 300 As of March 2003, more than 300
electricity providers in 32 states have electricity providers in 32 states have
implemented green pricing options or implemented green pricing options or
announced plans to do soannounced plans to do so

Green Mountain Power’s Green Mountain Power’s CoolhomeCoolhome, ,
CoolbusinessCoolbusiness

28. 2. Green Marketing2. Green Marketing

Sale of green power in competitive Sale of green power in competitive
markets; consumers have option to markets; consumers have option to
choose among suppliers and service choose among suppliers and service
offeringsofferings
•like choosing long-distance telephone carrierslike choosing long-distance telephone carriers

As of October, 2003 green marketing was As of October, 2003 green marketing was
available in nine statesavailable in nine states
•all in the northeast except Texasall in the northeast except Texas
•not in Vermontnot in Vermont

29. 3. Green Tags3. Green Tags

Tradable Renewable Certificates (TRCs) represent Tradable Renewable Certificates (TRCs) represent
the environmental (non-power) attributes or the environmental (non-power) attributes or
benefits of renewable electricity generation benefits of renewable electricity generation

consumer pays for the benefit of adding clean, consumer pays for the benefit of adding clean,
renewable energy generation to the regional or renewable energy generation to the regional or
national electricity grid national electricity grid

provides same environmental benefit as provides same environmental benefit as
purchasing green pricing or green marketing purchasing green pricing or green marketing
productproduct

provide “green” option for people in states where provide “green” option for people in states where
green pricing/marketing not availablegreen pricing/marketing not available

30. Consumer Protection Issues in Consumer Protection Issues in
Green PowerGreen Power

When power flows from the generator When power flows from the generator
to your house, electrons get mixed to your house, electrons get mixed
together on the wirestogether on the wires
•You can't specify which electrons you get You can't specify which electrons you get
•you can't know for sure if they are being you can't know for sure if they are being
generated by "green" power sources generated by "green" power sources

A number of mechanisms have been A number of mechanisms have been
established to avoid consumer established to avoid consumer
deceptiondeception

31. 1. Voluntary certification1. Voluntary certification

Green-eGreen-e

Establishes consumer protection and environmental Establishes consumer protection and environmental
standards for electricity products, and verifies that these standards for electricity products, and verifies that these
products meet the standards. products meet the standards.

Standards include:Standards include:

50% or more of the electricity supply comes from one or 50% or more of the electricity supply comes from one or
more of these eligible renewable resources: solar, wind, more of these eligible renewable resources: solar, wind,
geothermal, biomass, and small or certified low-impact geothermal, biomass, and small or certified low-impact
hydro facilitieshydro facilities

if a portion of the electricity is non-renewable, the air if a portion of the electricity is non-renewable, the air
emissions are equal to or lower than those produced by emissions are equal to or lower than those produced by
conventional electricityconventional electricity

there are no specific purchases of nuclear power, andthere are no specific purchases of nuclear power, and

the product meets the Green-e the product meets the Green-e new renewablenew renewable requirement requirement

32. 2. State standards2. State standards

In 2002 Illinois established a "green power In 2002 Illinois established a "green power
standard" for green power claims. The standard standard" for green power claims. The standard
establishes three tests:establishes three tests:

100% of the power must come from new clean 100% of the power must come from new clean
power sources (i.e., coming online after January 1, power sources (i.e., coming online after January 1,
2002)2002)

at least 2/3 of the power must be produced by wind at least 2/3 of the power must be produced by wind
or solar energy, with the remainder from other or solar energy, with the remainder from other
renewable energy sources such as landfill gas, renewable energy sources such as landfill gas,
small hydro, and biopowersmall hydro, and biopower

the power purchase must create clear air quality the power purchase must create clear air quality
benefits for the Illinois airshedbenefits for the Illinois airshed

33. 3. National Association of Attorneys 3. National Association of Attorneys
General (NAAG)--Environmental General (NAAG)--Environmental
Marketing Guidelines for ElectricityMarketing Guidelines for Electricity

Provisions include:Provisions include:

term "green" and other similarly general term "green" and other similarly general
statements of environmental benefit should be statements of environmental benefit should be
used with caution; every implied representation used with caution; every implied representation
of environmental benefit must be substantiatedof environmental benefit must be substantiated

term "clean energy" means energy whose term "clean energy" means energy whose
generation does not cause significant emissionsgeneration does not cause significant emissions

a "renewable" energy source is one which is a "renewable" energy source is one which is
naturally replenishable and is replenished on naturally replenishable and is replenished on
some reasonable time framesome reasonable time frame

34. Green Power in VermontGreen Power in Vermont

Apparently the only green power option Apparently the only green power option
available in Vermont is Green Mountain available in Vermont is Green Mountain
Power's Power's Cool Home Cool Home projectproject

Customers make a $6 monthly tax-Customers make a $6 monthly tax-
deductible contribution to the non-profit deductible contribution to the non-profit
group Clean Air-Cool Planetgroup Clean Air-Cool Planet

through the Vermont-based group through the Vermont-based group
NativeEnergyNativeEnergy, new renewable energy , new renewable energy
projects are developedprojects are developed
•wind farmswind farms
•farm methane systemsfarm methane systems