Earthenterprise Tool Kit - International Institute for Sustainable ...

EarthEnterprise Tool Kit
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How To Target Deep-Green Markets
Deep-green markets are too small to attract major competition, which may be
an important factor in planning long-term strategy. Recent estimates put the
size of this market at about two percent of U.S. and Canadian consumers.These
individuals gravitate towards political advocacy and will often pay higher prices
or sacrifice product performance for environmental improvements.
If you decide to target this market,
• Your products must be significantly better env i ronmentally than the
competition’s or you will be viewed as a hypocrite, as well as lose the sale.
• Provide clear, engaging, and comprehensive information on what sets your
p roduct apart env i ro n m e n t a l l y. D e e p - g reen consumers appre c i a t e
information on how they can make a difference ecologically.
• Monitor the competition to see if they are developing products almost as
green as yours, but without the price/quality tradeoffs. Keep ahead of the
green development curve by minimizing the sacrifices required to purchase
or use your product.
Know the Factors That Drive Green Market Growth
G e n e ral economic expansion tends to correlate directly with incre a s e d
environmental concern, action, and consumer spending. According to research
by economics Professor Don Coursey of Washington University, t h e s e
behaviours tend to grow at three times the rate of increase in Gross Domestic
Product (GDP).
Traditional and green companies are also beginning to give consumers what
they want: substantive environmental improvements that do not require price
premiums or quality compromises. As a result, consumers will see more, new,
green products and services. These will legitimize the market and expand
choice, leading to more vigorous green consumerism.
Eco-entrepreneurs faced with green competition from established companies
will either be pressured into well protected niches, or into the mainstream
marketing arena, where sophisticated marketing strategies based on sound
consumer research tend to carry the day.
Build Credibility if You Want To Grow
Marketers alert to consumer concern and interest in the environment found a
new advertising ploy in the late 1980’s: the green claim. In 1993, approximately
13 percent of new products introduced in the United States made some type of
environmental claim. But just like “cholesterol free”peanut butter, some claims
AVALANCHE MARKETS
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