Old news: Green products don't work, and consumers won't pay a premium for them. New news: Investment in environmentally preferable products and technologies can lead to a potent new source of innovation and competitive advantage.
Take heed!
Contrary to what many marketers may think, environmental marketing appeals are growing in number. The US EPA's Energy Star label for energy efficiency, for example, now appears on 11,000 companies' SKUs in 39 product categories, ranging from washing machines and light bulbs to skyscrapers and homes.
Granted, polls such as Roper's Green Gauge tell us that a high percentage of consumers (around 42%) still feel that environmental products don't work as well as conventional ones. This is an unfortunate legacy from the 1970s, when low-flow showerheads sputtered and natural detergents left clothes dingy.
And, granted, given the choice, all but the greenest of consumers will reach for Tide, a name they trust to get their clothes clean, over the premium-priced, proverbial "Happy Planet" any day, including Earth Day.
But given a brand they trust, a large and growing number of consumers, armed with the extra knowledge that it happens also to be green, will grab the eco-friendly option. Case in point: the runaway success of Tide Coldwater, with its energy and environmental benefits.
And there's even better news. Many green products and technologies have improved significantly since the "crunchy" days of green marketing, and many are so improved that they are now superior to their conventional "brown" counterparts. Probably the most familiar case in point is Toyota's hybrid, Prius, which has consumers lining up to purchase it—at a significant premium price, to boot.
And don't expect to see babies, planets, and daisies in these products' ads. That's because they can attract users on the basis of why consumers buy certain products in the first place: performance, cost savings, health, and convenience—benefits that appeal to a much wider set of consumers than those in the "deep green" niche.
Need a light bulb? Consider the Marathon brand from Philips. A compact fluorescent light bulb that comes with a $15 price tag but will save you approximately $26 over its lifetime and spare you the hassle of changing bulbs—especially appreciated if they're in hard-to-reach places.
Want cleaner clothes? Try some of the front-loading washers that are on the market these days thanks to Department of Energy regulations requiring more energy- and water-efficient washers. Chances are that the one you buy will not only leave your clothes clean and bright but also, since they don't agitate the washload, without the prospect of a shortened life, too.
Drive fewer than 7,500 miles per year? Look forward to saving thousands of dollars annually by joining one of the 25 "car sharing" services that have cropped up around the US. A notion imported from Europe, such services let you borrow any type of vehicle to suit the particular need of your driving occasion. This concept innovation represents only one of the possible new business models that green-inspired innovation can bring.
Speaking of Europe, there's a lot on the horizon that marketers need to be cognizant of. In Europe (and in Japan) companies are now gearing up to respond to government directives and policies that have serious repercussions on the way that many types of products will be designed and conceived of in the future. Two examples are the End of Life Vehicles Policy and the WEEE Directive (Waste Electronics and Electrical Equipment) that requires manufacturers to assume responsibility of their products until the end of their lives.
Such initiatives spur foreign competitors to push the environmental-innovation envelope; American companies can't risk being caught off guard lest they fall into the same trap as Ford and GM in a US auto market swiftly veering toward smaller, fuel-efficient models.
Environmentalism is fast becoming embedded in American culture, and consumers are increasingly demanding that environmental performance be a part of any successful product the success. Roper's poll also tells us that 56% of Americans would do more for the environment if they only knew how—certainly a signal to innovate product design and communication.
Tomorrow's news: Those businesses that grew in the 21st century were those with an appreciation for how "green" was equated with "superior performance"; success in the global marketplace came as a result of integrating green considerations into innovation.
