I’ve been working in marketing and communications for the better part of 15 years, mostly business to business with the occasional consumer project thrown in. The economy may be in a tailspin, but these are exciting times for B2B marketers who understand how to market and sell in the new green economy.
There are many industries on the cusp, if not already, producing significant inroads in garnering signficant market share in the green economy. You can’t help but notice rising industries like solar and wind power and fuel cells commanding more attention from government and businesses. Mix in semi-established industries like geothermal, environmental agencies, alternative fuels and old-line firms like energy companies and you get the picture of potential compaines needing copywriters.
Some of these industries are still in R&D stages, not ready for prime-time marketing. But 2009 will see more companies go from the lab to launch, thus requiring the services of marketing professionals. Many of these marketing resources, whether at the corporate or agency level, rely on copywriters who understand ‘green’ industries.
You don’t need a lot of technical background to help develop strategies and tactics for the green economy. It is imperative that you can quickly understand an industry and what type of marketing strategies work and adapt your tactics appropriately. Developing a marketing communications plan for rooftop solar panels for the commercial building market takes a different approach than for a civil engineering firm.
Combining the green economy with new media is also exciting. The ability to craft a marketing message for the Internet, e-mail, podcast, DVD/CD-ROM and other new media channels is also exciting and challenging for us green marketers.
The green economy is about creating jobs that will sustain the USA in the years ahead. Those marketers who can adapt to the new marketplace will also find new oppportunities for personal and career growth.
How much time and effort should be dedicated to developing an environmental strategy for your company? I would say just as much effort as in product, price, promotion and distribution strategy. Here’s why:
Whether you are in product or service marketing, your customers are defining the way your company is positioned in the marketplace. It’s no longer a competitive advantage to focus strictly on price, service, quality, speed of delivery or other factors.
Customers also want to see you as an environmental leader, a company that is sending a message that you have a concern for our limited natural resources and is taking positive steps to make a small difference.
How do you get started by developing and executing an environmental marketing strategy? Clients I have developed marketing materials for start with clear-cut reasons for this strategy, then expand. For example:
- Meeting the triple bottom line: environmental, social, financial
- Opportunity to set yourself apart as an environmental leader within your industry
- Immediate and positive on employees, customers, stakeholders
- Demonstrate corporate responsibility in multiple ways
- Greater customer loyalty = increased revene
- Provides outstanding opportunities for significant public relations exposure
- Constant interaction with public, customers, employees, media and community
- Continual promotion of reduce, reuse, recycle.
The above critieria then become a basis for your environmental mission statement, which I will discuss in a future post.
Marketing efforts from electric and gas utilities seems sporadic at best, especially since deregulation has hit most of the country. One would think that when customers are given a choice to flee, the utilitiy company would up its retention efforts.
Many utilities are using alternative fuels to generate power, which becomes a good marketing messages in itself. But I would like to see some cross-promotion to help customers manage their utility bills. How about a partnership with a larger HVAC company like Carrier or Trane where customers could get discounts on higher SEER-rated A/C or heat pump units, thereby reducing their energy load.
Why not introduce a geothermal campaign where customers can get a rebate off an underground system, sponsored by the electric utility. Albeit, geothermal units are more expensive to install that traditional forced-air units, the energy savings is greater and payback can be less than 5 years.
Some utilities are introducing programs for CF bulbs and one utility I know offered battery-powered lawn mowers from Black & Decker at a discount. There are not profit centers for utilities, but it does help increase customers satisfaction ratings.
It doesn’t take a lot of advertising dollars to create these types of programs, either. Many times, the partnering company will contribute co-op marketing dollars to reach the utilities massive customer base. A small bill insert or mention in the customer newsletter can generate positive response.
Many people have the mistaken notion that since utilities have ‘captured’ customers, why bother advertising and marketing, especially if de-regulation has not worked in some parts of the country? It’s my belief that keeping your customers informed with programs like the ones mentioned above helps in saving energy and decreases the need for the construction of power plants.
Everybody wins in that scenario.
The value of green building construction is projected to increase to $60 billion by 2010, according to a report by McGraw-Hill. The green building products market is projectedt to be worth $30-$40 billion annually by 2010, according to Green Building Alliance.
What does this all mean for marketers in this industry? Positioning your commercial building product as ‘green’ or ‘environmentally friendly’ is no longer a unique selling proposition. It’s become the norm and no longer sets you apart from the competition.
Read any trade publication today dealing with new construction, green building design, facilities management and most advertisers are jumping on the green bandwagon. That worked a few years ago…not heading into 2009. Readers such as architects, civil engineers, property ownwers, developers, remodelers and the like need more convincing.
Focusing a marketing strategy away from ‘green’ and into the core benefits of the product is a starting point. For example, how efficient is a geothermal unit compared to the alternative heating/cooling sources. How much more energy can a building owner save by installing solar panel roofing membrane? The more facts and figures you can place in your messages (ads, direct mail, web), the more relevancy you have with your target audience.
Green building products, because of their quasi-complex nature, scream out for follow-up information once inquiries are generated through your marketing effots. A white paper, case study, Q&A, website landing page, etc. are all good sources for follow-up and give your prospects a better understanding of product benefits.
Saying your product is green isn’t enough anymore. Most customers have already accepted that attribute. Take your marketing to the next level with more in-depth product benefits and watch your leads escalate.
Much has been written about the green marketing movement in the consumer marketplace and perhaps there is some truth to an over-saturation of green messages. What company is not green anymore when touting a consumer product?
In my practice, I see a lot more ‘B2B green’ because industrial and commercial companies have a different need for environmental initiatives than their consumer counterparts.
Businesses that market to other businesses invariably want to be seen as an environmental steward in their market sector, thus earning the respect of their customers and prospects. This is especially true in the industrial sector where companies that own a market niche do not want to dive on price to thwart the competition. Rather, they ramp up the ‘green’ initiatives for differentiation.
What are some of these green initiatives? Introducing a product that can save more energy, conserve natural resources, eliminate waste for customers. This could be a second generation of an existing product, a ‘green’ upgrade, which doesn’t entail a totally new manufacturing process.
Another initiative is to internally reduce waste by recycling spent materials (scrap steel, aluminum, copper, cardboard, paper) by getting both plant workers and admin staff to support the cause. The result? Some positive PR in a leading industry trade publication or a talking point for the company’s sales team in a prospect meeting.
Hosting an environmental event at the company’s HQ or satellite division site is a third way to gain leadership status. This could be an educational event mixed in with recycling to gain local publicity and further a grass roots level campaign, especially if the company has a regional footprint.
In my discussion with company executives, there is no right or wrong way to start an environmental initiative. But it must be sincere, long-lasting and create a positive impression on the intended audience.