A Blog by Jonathan Low

 

Apr 15, 2014

The Truth About Marketing Sustainability

70 percent of shoppers claim to consider sustainability in their purchase decisions. Organic, natural and environmentally friendly product categories are all growing.

And yet. Marketers are still unsure of how best to communicate their products' or companies' bona fides in ways that substantiate their claims - and sell more stuff.

Some of the discomfort appears to flow from confusion about what features will optimally appeal to customers. There is a paucity of credible data, made worse by controversies over the meaning of words like 'organic' and 'natural' whose uses and applications are not effectively regulated. The absence of reliable metrics that support the broader product claims based on the still-urgent drives of price and convenience are a hindrance to overcoming this uncertainty.

There also remains some concern that corporate executives remain ambivalent about all this. They are not certain that investors think it is anything more than hype or that outside of the socially responsible investment community, they particularly care. An element of 'real men don't tout the environment' still lingers.

Concerns about health are growing globally. Aging populations in Asia and the developed Western economies assure that any longevity-related benefits will gain attention. These two factors alone almost guarantee market share. Marketers own lack of determination  appears to be the greatest obstacle to seizing optimal advantage from the evident trend lines. JL



Kim Finnerty reports in Epsilon:

Brands have more sustainability practices in place than they’re communicating to their customers.
As Kermit the Frog said, “It’s not easy being green." 
 A recent Ryan Partnership study,  found that even organizations that have been focused on sustainability for some time are still grappling with the right level and type of customer communications about their efforts.
Overall, the study found that brands have more sustainability practices in place than they’re communicating to their customers.
Why would marketers allow their great work to go unnoticed, especially in an era when 70% of shoppers consider sustainability in their purchase decisions? Here are two reasons that stood out in the study:
1.  Concerns about consumer confusion and greenwashing. Over three-quarters of those surveyed cited this as a key challenge to communicating their brand’s green practices. Our study found that shoppers understand and define sustainably in a number of ways. When asked, what qualities do you expect in a sustainable product, responses included:
“A high-quality product that is affordable and does not harm the environment.”
“An environmentally, socially and economically quality product that not only promotes fair trade practices, but also tastes good, or is useful, in a good way.”
“Eco-packaging, organic, cruelty-free, animal friendly and environmentally friendly.”
“Does what it’s supposed to do while being healthy for the environment, people, pets, etc.”

“Environmentally friendly & aware. Natural or recycled parts. A company that cares about the environment and is looking to educate consumers.”
These varying comments make it clear why some brands may be hesitant to share their sustainable practices for fear that their target audience may feel that the brand doesn’t live up to their particular definition of “sustainable.”

2.  The lack of standardized measurement tools. Over 50% of respondents said we need a single definition, rating or score system to measure products’ sustainability. This sentiment was especially prevalent in the electronics category. Three out of four consumers surveyed agreed that a standard scoring system to identify green qualities in products and services would be useful.  Such a numeric system would allow shoppers to quickly and easily digest and compare what is being communicated and would also give brand marketers a fact-based method to establish that their products are  sustainable.  This could certainly help avoid charges of greenwashing and bring some of those silent sustainable brands out in the open.

2 comments:

BEST NCDEX Tips said...

Well Marketers are still unsure of how best to communicate their products for companies in ways that substantiate their claims - and sell more stuff.

Jon Low said...

Agreed. The additional issue here is that marketers may also have questions about whether they invite truly negative reaction from consumers and regulators if they exaggerate or misstate their claims

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