Green Marketing 1. Definition of Green Consumer LOHAS: (Lifestyle of Heath and Sustainability) very...

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Transcript of Green Marketing 1. Definition of Green Consumer LOHAS: (Lifestyle of Heath and Sustainability) very...

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Definition of Green Consumer Definition of Green Consumer Definition of Green Consumer Definition of Green Consumer LOHAS: (Lifestyle of Heath and

Sustainability) very progressive on environment and society, looking for ways to do more; not too concerned about price (16%).

Naturalites: primarily concerned about personal health and wellness, and use many natural products; would like to do more to protect the environment (25%).

Conventionals: practical, like to see the results of what they do; interested in green products that make sense (e.g., save money) in the long run (23%).

Drifters: not too concerned about the environment, figure there’s time to fix environmental problems; don’t necessarily buy a lot of green products, though may like to “be seen” in Whole Foods to enhance their image (23%).

Unconcerned: have other priorities, not really sure what green products are available, and probably wouldn’t be interested anyway; they buy products strictly on price, value, quality, and convenience (14%).

2Source: Natural Marketing Institute 2/02/10

Population Breakdown

16%

25%

23%

23%

14%

LOHAS Naturalites Conventionals

Drifters Unconcerned

Psychographic Segmentation for Psychographic Segmentation for Affluent IndividualsAffluent Individuals

Psychographic Segmentation for Psychographic Segmentation for Affluent IndividualsAffluent Individuals

Affluent Globalists (18% of population/$207 Billion inspending power)

Would be willing to pay more for products that are environmentally friendly

Minimizing impact on the environment is an important part of life

Believe in protecting the environment

3Source: Ipsos/Medelsohn Affluent Study November 2009

Profile of Green Attitude & Profile of Green Attitude & Behavior SegmentsBehavior Segments

Profile of Green Attitude & Profile of Green Attitude & Behavior SegmentsBehavior Segments

Age18-34 110 85 8318-49 105 91 9725-54 101 97 10545-54 96 100 11955-64 85 115 129

EducationGraduated College Plus 85 117 228

Household Income$60,000+ 95 111 145$75,000+ 94 113 160$100,000+ 93 115 178$200,000+ 95 114 239

4Source: 2009 Doublebase Mediamark Research & Intelligence; Weighted to Population (000) – Base: All

Index (to Total U.S.)

Green at Their Green Ungreen Best Advocates

Profile of Green Attitude & Profile of Green Attitude & Behavior SegmentsBehavior Segments

Profile of Green Attitude & Profile of Green Attitude & Behavior SegmentsBehavior Segments

5Source: 2009 Doublebase Mediamark Research & Intelligence; Weighted to Population (000) – Base: All

Geographic Marketing Regions

New England 96 112 178

Mid-Atlantic 89 122 116

East Central 107 91 89

West Central 96 115 96

Southeast 112 82 65

Southwest 117 70 67

Pacific 85 111 135

Index (to Total U.S.)

Green at Their Green Ungreen Best Advocates

Profile of Regional Differences in Profile of Regional Differences in Green Attitude SegmentsGreen Attitude Segments

Profile of Regional Differences in Profile of Regional Differences in Green Attitude SegmentsGreen Attitude Segments

6Source: 2009 Doublebase Mediamark Research & Intelligence; Weighted to Population (000) – Base: All

UngreenGreen at the SupermarketGreen in TheoryGreen But Only IfGreen at Their BestGreen Advocates

Green Attitudes & Behaviors

Degree to Which U.S. Adult Internet Degree to Which U.S. Adult Internet Users Incorporate Green Behavior in Users Incorporate Green Behavior in

Daily LifestyleDaily Lifestyle

Degree to Which U.S. Adult Internet Degree to Which U.S. Adult Internet Users Incorporate Green Behavior in Users Incorporate Green Behavior in

Daily LifestyleDaily Lifestyle

Adult Internet Users Completely Somewhat None

18-24 9.7% 77.1% 13.2%

25-34 6.3% 81.4% 12.2%

35-44 4.4% 80.6% 15.0%

45-54 3.2% 85.3% 11.5%

55-64 3.7% 88.0% 8.3%

65+ 4.8% 74.9% 20.4%7

Most consumers are incorporating “Green” standards into their lifestyle. This trend is lowest at the extremes in ages. However the amount of people that completely accept “Green” is amongst the youngest demographic: 18-24.

The least eco-conscious consumers are the oldest of the grouping at 65+.

The most eco-conscious consumers are the 55-64 year olds who display tendencies that lean somewhat toward eco-friendly behaviors.

Source: Environmental Leader and MediaBuyerPlanner Study as seen in Center for Media Research 1/4/10

Consumer Preference for GreenConsumer Preference for GreenConsumer Preference for GreenConsumer Preference for Green

67% Americans agree that “even in tough economic times, it is important to purchase products with social and environmental benefits”

51% say they are “willing to pay more” for them

66% say price is very important in purchase decision

64% look for quality 55% want “good for your health” 49% look for “made in the USA”

8Source: Consumer Report 2009

Green Benefits Increased Green Benefits Increased in Importance Since Last Yearin Importance Since Last Year

Green Benefits Increased Green Benefits Increased in Importance Since Last Yearin Importance Since Last Year

9Source: BBMG Conscious Consumer Report: Redefining Value in a New Economy 2009

% of Respondents indicating this attribute is “very important” for products purchased.

Green Company MarketingGreen Company MarketingGreen Company MarketingGreen Company Marketing

According to the green marketing study, 82% indicated they expect to spend more on green marketing in the future.

At least half of respondents plan to engage in online marketing efforts in the future.

28% of marketers think green marketing is more effective than other marketing messages, compared to 6% of marketers who think it is less effective.

Management is more optimistic, with 46% of them indicating that green marketing is more efficacious.

23% of those in operations think green marketing is more effective.

Companies with smaller marketing budgets tend to spend more on green marketing. Those with budgets under $250,000 spend just over 26%, while those with budgets of more than $50 million spend 6% on green marketing.

10Source: Environmental Leader and MediaBuyerPlanner Study as seen in Center for Media Research 1/4/10

Environmental Advertising by MediaEnvironmental Advertising by MediaEnvironmental Advertising by MediaEnvironmental Advertising by Media

Online: 74.2% of respondents have spent marketing budgets online.

Print: Print is the second strongest media for Green marketing at 49.8%.

Direct: Direct completes the top trio, at the third highest ad spend, with 40% of total spend.

Other Media: Outdoor, Radio & TV, and Mobile account for the remaining ad spending.

11Source: Environmental Leader and MediaBuyerPlanner Study as seen in Center for Media Research 1/4/10

Respondents Reporting Green Marketing Budgets in Media Categories

74%

50%

40%

Online Print Direct

Consumer Attitudes Towards Consumer Attitudes Towards Green CompaniesGreen Companies

Consumer Attitudes Towards Consumer Attitudes Towards Green CompaniesGreen Companies

41% of Americans could not name a single company that they consider the most socially and environmentally responsible.

Within these respondents: 71% of consumers agree that they “avoid

purchasing from companies whose practices they disagree with”

55% tell others to shop for products based on a company's social and environmental practices

48% tell others to drop products based on a company's social and environmental practices

12Source: Environmental Leader and MediaBuyerPlanner Study as seen in Center for Media Research 1/4/10