Green Marketing

RAHUL SHARMA

What is it?

Using claims about a product's

environmental "friendliness" in order
to promote the product

Examples of green advertising

claims?

biodegradable
compostable
recyclable/recycled
environmentally safe
ozone friendly

Why do companies use it?

Research shows that consumers

prefer--and are willing to spend more
money on--products they perceive as
environmentally safe
More than half of American
consumers have purchased a product
because of a label that said it was
environmentally safe or
biodegradable

Why are consumers fooled by such

claims?

consumers generally can't tell

whether a product will do what the
advertiser claims
degrade in a landfill
not deplete the ozone layer

even if the claims are true, it may

not be evident for five, ten, fifty or
more years

What do the Guides cover?

Any way in which a message can be
received
labeling
advertising
promotional materials

Any form a message can take

words
symbols
emblems
logos
depictions
product brand names

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

Environmental Marketing Claims

(a) General claims (e.g., eco-safe)
must be
not misleading
substantiated in advance of the claim
burden of proof on advertiser

(b) Claims of degradability,

biodegradability, and photodegradability

are deceptive unless there is

scientific evidence that the entire
product or package will completely
break down and return to nature (i.e.
decompose) within a reasonably
short period of time

(c) Claims of compostability (of the

product or package)
are deceptive unless all the materials
in the product or package will break
down into usable compost in a safe
and timely manner
in an appropriate composting facility; or
a home compost pile

are deceptive if
the item is not compostable in a home
compost pile; and
there are no institutional or municipal
composting facilities in the community
where the item is sold

(d) Claims of recyclability

are deceptive unless the product or
package can be collected, separated or
otherwise recovered from the solid waste
stream
for reuse; or
in the manufacture or assembly of another
package or product
through an established recycling program

If only part of a package or item is

recyclable, any claim of recyclability
must be adequately qualified to
avoid consumer deception
A claim of recyclability is not
deceptive if only minor, incidental
components are non-recyclable

Claims of recyclability have unique

potential for deception because
not all communities have recycling
facilities
not all facilities recycle the same
products and packages

As a general rule, use of the term "recyclable"

and/or use of symbols that imply recyclability are
deceptive
unless collection sites for recycling the material
are available to a substantial majority of
consumers or communities
even if collection sites are established in a
significant percentage of communities or available
to a significant percentage of the population
unless the claim is qualified to indicate the limited
availability of recycling programs

(h) Claims relating to the preservation

of the ozone layer
For example:
ozone safe
ozone friendly
contains no CFCs

are deceptive if the product contains

any ozone-depleting substance

Problem: all ozone is not alike:

ozone layer in upper atmosphere is
necessary to prevent sun's harmful
radiation from reaching earth
ozone at ground level forms smog
can cause serious breathing problems

"ozone safe" products should not

harm the atmosphere at either level

Green Power

Green marketing heavily used in

electricity generation/marketing
What is green power?
electric power that is
generated by renewable resources
less polluting than fossil fuels and
nuclear power

What types of power are green?

Wind
Bioenergy
Geothermal energy
Solar power
Hydroelectric power

Why is green power attractive to

consumers?

Electricity generation is largest industrial

polluter in US; currently produces:
two-thirds of the annual U.S. emissions of
sulfur dioxide (main cause of acid rain)
30 percent of the nitrogen oxide emissions
(stress forest ecosystems; combine with
organic compounds in sunlight to form
smog)
40 percent of carbon dioxide emissions
toxic-metal emissions (mercury and lead)
nuclear waste.

What are the dirtiest energy

sources?

Coal
Oil
Nuclear power
Natural Gas

What are the green power options?

1. Green Pricing
Consumers do not have to change their
electricity provider
Customers choose to pay a premium on
their electricity bill to cover the extra cost
of purchasing clean, sustainable energy
As of March 2003, more than 300
electricity providers in 32 states have
implemented green pricing options or
announced plans to do so
Green Mountain Powers
Coolhome, Coolbusiness

2. Green Marketing
Sale of green power in competitive
markets; consumers have option to
choose among suppliers and service
offerings
like choosing long-distance telephone carriers

As of October, 2003 green marketing was

available in nine states
all in the northeast except Texas
not in Vermont

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

THANK YOU. . .