ENVIRONMENTAL

MARKETING
RUNATAY, JOHN ERROL

BSBA MM (2-1)
 RUNATAY, JOHN ERROL A.

BSBA MARKETING MANAGEMENT (2-1)

ENVIRONMENTAL MARKETING

UNIT II

GREEN PRODUCTS

ACTIVITY: Individual Assignment Answer the following questions:

1. How do you know whether or not a product is "green?"

-In all occasions, the generally quality of an item can as it were be decided by a seal or symbol

from an objective organization that has carried out quality tests and regarded it commendable of passing

such a test. Thus, with respects to eco-friendly items, all you have got to do is look at the thing and search

for a seal or symbol from somebody who isn’t the company. Here are a few you ought to see out for.

2. Who should decide what a "green" product is?

-Buyers must at that point choose whether an item lives up to its green notoriety. However numerous

are doubtful around natural claims, somewhat since they doubt enterprises and the media. At last,

customers must choose whether a item is worth the fetched and exertion required to buy it. But buyers

frequently accept that the costs of green merchandise are as well tall, and have a difficult time finding

them besides.

3. Is greener always better?

- Greener is always better than the products are made only to satisfy the consumer and not considering

the product has a harmful effect to the environment. This modern days humans produced tons of plastic

material every year, we are producing over 300 million tons of plastic every year, 50% of which is for
single-use purposes. Those plastics are not all disposed properly and every year, 8 million metric tons of

plastics enter our ocean on top of the estimated 150 million metric tons that currently circulate our marine

environments. Plastics are harmful to marine animals, because plastics can be eaten by them and causes

fatalities due to suffocation causing plastic indigestion. Globally, 100,000 marine mammals die every year

as a result of plastic pollution. Fortunately humans produced a plastics that are eco-friendly such as

Bioplastics made from natural materials such as corn starch, Biodegradable plastics made from traditional

petrochemicals, which are engineered to break down more quickly and Eco/recycled plastics, which are

simply plastics made from recycled plastic materials rather than raw petrochemicals. Those said eco-

friendly plastics are big help to reduce plastic pollution to are oceans and reduce the marine mammals die

every year. We must choose Green Products that satisfies our needs and at the same time helps our

mother nature to heal herself rather than cheap products causes’ bad effect to our health and even the

health of the living things that are surrounding to us. Greener is always better because it benefits both

humans and the environment.

4. Who Are Green Consumers?

- A green consumer is someone who is aware of his or her obligation to protect the environment by

selectively purchasing green products or services. A green consumer tries to maintain a healthy and safe

lifestyle without endangering the sustainability of the planet and the future of mankind.
Activity #1 -What are the benefits of Environmental Management in your place?

Location: Riviera Heights Subdivision, Barangay Labas. Santa Rosa Laguna

-An environmental management system protects public health and safety by establishing

procedures to limit or eliminate harmful substances from entering the environment. Every organization

in some way affects the environment, which directly affects public health. An environmental management

system is an evolving policy that seeks to continually lessen negative impacts on the environment.

• For use of resources

• To overcome environment and ecology crisis

• For sustainable development

• For economic need and values

• To reduce disasters

• To decide the limiting line between environment and development

Activity #2 What is green technology and examples of its benefits? Explain each

-Green tech can be used in processes intended to conserve energy, such as energy-efficient light

fixtures. Green technology is also used to create alternative fuel sources that are more environmentally

friendly than fossil fuels. Fossil fuels typically create waste as a byproduct of their production. Solar, wind,

and hydroelectric dams are all examples of green technology because they are safer for the environment

and don't produce fossil fuel waste by-products. Besides the environmental benefits of these alternative

energy sources, they can also be used to power a home or a utility power plant.

To explain furthermore, Green technologies are a worthwhile investment for any company that

wants to improve its operations, enhance company thinking, and reduce expenses. While green
technologies may be more costly to implement initially, their long-term benefits surpass the short-term

benefits for any construction company.

Activity #3 What are the most popular renewable energy sources? Describe each along with the sponsors,

ads and objectives

-Renewable energy sources are projected to account for more than half of global electricity

production by 2035. Power Technology lists the top five renewable energy sources based on global

installed power generation capacities as of 2018.

Hydropower

Hydropower is the most widely-used renewable power source, with the global hydroelectric

installed capacity exceeding 1,295GW, accounting for more than 18% of the world’s total installed power

generation capacity and more than 54% of the global renewable power generation capacity.

The most common method of hydropower generation involves construction of dams on rivers and

releasing water from the reservoir to drive turbines. Pumped-storage type plants represent another

method of hydroelectricity generation.

China has the biggest hydroelectric generation capacity in the world and hosts the world’s largest

hydropower plant, the Three Gorges (22.5GW). The nation accounted for approximately 40% of the total

hydroelectric capacity added in the world in 2018. Brazil, the US, Canada, and Russia also have some of

the biggest hydropower installations in the world.

Wind is the second most widely used renewable energy source, as global installed wind power

capacity exceeded 563GW in 2018, accounting for approximately 24% of the world’s total renewable

energy generation capacity. China, with an installed capacity of more than 184GW, is the biggest wind

energy generator in the world, followed by the US (94GW by the end of 2018). More than half of the 49GW

wind power capacity added worldwide in 2018 was in China (20GW) and the US (7GW).

Solar power

More than 486GW of installed capacity makes solar the third biggest renewable power source in

the world, with photovoltaic (PV) technology being dominant. The use of concentrating solar power (CSP)

technology is also on the rise, with global CSP installed capacity reaching 5.5GW by the end of 2018. China,

US, Germany, Japan, Italy, and India possess the biggest solar PV capacity in the world, while Spain has

42% of the global CSP capacity.

Bio-power

Bio-power is the fourth biggest renewable power source after hydro, wind and solar. The world’s

net electricity production capacity from bio-mass currently exceeds 117GW, while global bio-power

generation increased from 317TWh in 2010 to more than 495TWh in 2018. Modern biomass, especially

biofuels and wood pellets, are increasingly being used for heat and power generation, alongside

traditional biomass sources such as agricultural by-products.

Geothermal power

Global geothermal power generation capacity exceeded 13.2GW in 2018 making it the fifth

biggest renewable source for electricity generation. Geothermal electricity generation exceeded 85TWh
in 2018. One-third of the green energy generated using geothermal sources is electricity, while the

remaining two-third is direct heat. The US, Philippines, Indonesia, Mexico, and Italy are the top five

geothermal power producers in the world. The global geothermal capacity increased by 539MW in 2018,

out of which Turkey’s share was approximately 40%.

GREEN CONSUMER

ACTIVITY: INDIVIDUAL ASSIGNMENT

Answer the following questions:

1) What is the profile of the typical ‘green’ consumer?

-The typical green consumer will only buy things that are environmentally friendly and

uses organic product, made with processes that provide energy saving, then by the action of

recycling.

2) Do you think you can sell ‘green’ products to ‘basic browns’ or to ‘grousers’? Why or why not

& what type of products?

- Yes we can sell ‘green products either of the two (Basic Browns & Grousers), regardless

of their demographic background, all respondents expressed concerns about the environment,

not only for themselves but also for their children and the future generations. Such these products

known to be safe on their young children (Caboo Tree-Free Baby Wipes)

All expressed the beliefs that the environment had gotten worse, the ozone layers has

been disappearing, the weather has turned hotter and less predictable and the earth’s resources

were limited and that people should not over-exploit these resources.
3) How do American, Canadian and Mexican consumers differ in terms of their environmental

concerns?

- North American Free Trade Agreements went into effect under the Clinton

administration in 1994. The purpose of the deal was to boost trade within North America between

Canada, the United States, and Mexico. It also aimed to get rid of trade barriers between the three

parties, as well as most taxes and tariffs on goods imported and exported by each.

4) The last survey was done in 1992. How do you think things may have changed since then?

- North American Free Trade Agreement has led to trade deficits, factory closures, and

job losses for the U.S. Isolating North American Free Trade American's effects is also difficult due

to rapid technological change.

5) What do you think Roper would find if they did similar surveys in Poland? Norway? Nigeria?

-Roper would interchange to find a mere solution in survey on the said problem. Increased

environmental knowledge may have contributed to a reduced sense that individual action holds

the solution to environmental problems; that’s the bad news. The good news is that the survey

data suggests that government, business, and non-profits have a green light to continue to

encourage and empower Americans to take small steps towards protecting the environment.

Consumers increasingly feel they can at least take small steps to improve the environment as

evidenced by the increase in those who say individuals can do a little. Such calls to personal action

are likely to be especially effective if consumers see that other key players namely, government

and businesses are also doing their part to protect the environment

-
 UNIT IV

TRENDS & EFFECTIVENESS OF GREEN MARKETING

ACTIVITY

Assignment #1: Based on your understanding of

1. Who the "green consumer" is, where do you believe the most opportunities (product types,

consumer types, geographic areas, etc.) exist for green marketing?

-Green consumerism refers to a state in which consumers demand products and services

that have undergone an eco-friendly production process or one that involves recycling and

safeguarding the planets’ resources. In other words, green consumerism entails the production,

promotion, and advancement of the utilization or use of goods and services based on their pro-

environment benefits.

Economic, social, and cultural forces have set the framework for green consumerism. This

is because it is a social attitude and movement in the modern era, especially aimed at encouraging

people to be more aware of the firms’ production processes and only to buy or use products and

services that do not harm the environment. For this reason, green consumerism has created a

balance between the buyers’ behaviors and the organizations’ profit objectives as it mostly based

on the sustainable and pro-environmental behavior of consumers.

2. What should the advertising message be?

The advertisement copy refers to the written contents of the advertisement including its

text and head line. It can be referred to as the heart of advertising and should be drafted with
utmost care; otherwise all the money invested in carrying out the advertisement campaign will

go waste.

Salient features or characteristics of a good advertisement copy are: it should be simple,

it should be capable of holding the reader’s attention, it must be suggestive, it should have

conviction value, it should educate the people, it should have memorizing value and it should be

true!

3. What format should the green marketing campaign take? (Max 3 pg double spaced)

The most important thing is to illustrate something that people care about. Green

marketing should not really be about educating the public about global warming. It should be to

illustrate how the consumer can buy a green product or service that also benefits the planet. In

support of making campaign about environmental marketing, the following can be of use to make

it more informative.

 Conduct some basic background research on the company's environmental

performance and reputation, as well as for its competitors.

 Analyze consumers demographics, purchase habits, etc. for this product.

 How does your recommendation fit into the company's strategic focus for this product

or its position in the marketplace?

 What (if any) are the risks associated with your proposed marketing strategy?

 Can the firm obtain a sustainable competitive advantage in this market?

Advertising wields an immense influence in our contemporary society. Not only is it a

communication tool which brings buyers and sellers together but also a viable mechanism of

control. Taking into account the power and impact of modern-day advertising, there has to be a

foolproof mechanism which shall enable the State to ensure truth in advertising, uphold the

people's right to know and protect them from unfounded and fraudulent claims.

Republic Act 7394 (The Consumer Act of the Philippines) was enacted primarily to protect

the consumers against false, deceptive and misleading advertisements. Unfortunately, the law

fails to address the substantiation and documentation of advertising claims. As a result, the

consuming public continues to fall prey to the empty words and promises of unscrupulous

Advertisers.

This bill seeks to improve the quality of advertisements by requiring all advertisers to

maintain a file containing the evidence of safety, performance, efficiency, quality and

comparative price of the advertised product. Such data shall, upon demand, be made available

to the public except for trade secrets, customer lists or other financial matters which may be

considered confidential. Furthermore, it seeks to increase the imposable administrative fine to

deter large-scale perpetrators of deceptive and unethical advertising practices.

5. “A Content Analysis of Environmental Advertising Claims: A Matrix Method Approach,”

Journal of Advertising www.ftc.gov/opp/green. Html

A growing number of American consumers are looking to buy environmentally friendly,

“green” products, from recycled paper to biodegradable trash bags. Companies have responded

with “green” marketing touting the environmental benefits of what they’re selling. But sometimes

what companies think their green claims mean and what consumers really understand are two
different things. The Federal Trade Commission’s Green Guides are designed to help marketers

avoid making environmental claims that mislead consumers.

The Green Guides were first issued in 1992 and were revised in 1996, 1998, and 2012. The

guidance they provide includes: 1) general principles that apply to all environmental marketing

claims; 2) how consumers are likely to interpret particular claims and how marketers can

substantiate these claims; and 3) how marketers can qualify their claims to avoid deceiving

consumers.

The FTC’s most recent update of the Guides is designed to make them easier for

companies to understand and use. The changes include new guidance on marketers’ use of

product certifications and seals of approval, claims about materials and energy sources that are

“renewable,” and “carbon offset” claims.

Assignment:

(1) Who was likely to support the FTC's general approach in writing advertising guidelines?

What type of firms might benefit, what type firms might be harmed?

The FTC is the only federal agency with both consumer protection and competition

jurisdiction in broad sectors of the economy. The FTC pursues vigorous and effective law

enforcement; advances consumers’ interests by sharing its expertise with federal and state

legislatures and U.S. and international government agencies; develops policy and research tools

through hearings, workshops, and conferences; and creates practical and plain-language

educational programs for consumers and businesses in a global marketplace with constantly

changing technologies.
(2) What are the pros and cons of the FTC guides from a consumer standpoint? From the

environment's standpoint?

Pros: protecting competition, protecting consumers

Industry guides, such as these, are administrative interpretations of the law. Therefore,

they do not have the force and effect of law and are not independently enforceable. The

Commission, however, can take action under the FTC Act if a marketer makes an environmental

claim inconsistent with the Guides. In any such enforcement action, the Commission must prove

that the challenged act or practice is unfair or deceptive.

The Green Guides outline general principles that apply to all environmental marketing

claims and provide guidance regarding many specific environmental benefit claims. The Guides

explain how reasonable consumers likely interpret each such claim, describe the basic elements

necessary to substantiate it, and present options for qualifying it to avoid deception. Illustrative

qualifications provide guidance for marketers who want assurance about how to make

nondeceptive environmental claims, but are not the only permissible approaches to qualifying a

claim. Although the Guides assist marketers in making non-deceptive environmental claims, the

Guides cannot always anticipate which specific claims will, or will not, be deceptive because of

incomplete consumer perception evidence and because perception often depends on context

Cons: The FTC's Bureau of Consumer Protection stops unfair, deceptive and fraudulent

business practices by collecting reports from consumers and conducting investigations, suing

companies and people that break the law, developing rules to maintain a fair marketplace, and

educating consumers and businesses about their rights.

perspective of the FTC guidelines. Do you think this passes their test? Where are the potential

vulnerabilities? How would you suggest they do things differently if at all? You can wily find

environmental claims anywhere you look - magazines, grocery or hardware stores, etc. You

must include a copy (or original if you wish!) of the ad or label for me to see. (Note: you may

choose an "image" ad instead of a "product" ad if you prefer.)

As a global beer and beverage

company, environmental sustainability is

extremely important for the Carlsberg

Group’s business. Most of their raw

materials and ingredients are sourced

directly from nature, and the continued

success of our business is directly linked to

the health of the environment.

The Carlsberg Group understands the important role that play in understanding,

protecting and enhancing the services that ecosystems provide and the underlying biodiversity.

Therefore they are constantly striving to optimize the use of natural resources, to view the

products and activities from a life cycle perspective, and to develop and use environmentally

friendly products, materials and technologies in a way that contributes to long-term sustainable

development that seemingly obvious that can pass the FTC or the Federal Trade Commission.
(4) Regulation of Advertising Claims (continued) Read: Mobil Chemical Corporation Case (MEB

Case

Under the law, claims in advertisements must be truthful, cannot be deceptive or unfair,

and must be evidence-based. For some specialized products or services, additional rules may

apply. The freedom of speech in the United States is regarded as one of fundamental human rights

and freedoms. In accordance with the First Amendment to the Constitution of the United States

the freedom of speech shall not be restricted so Congress shall make no law abridging the

freedom of speech, or of the press. However, the courts ruled that freedom of advertising, which

constitutes a part of freedom of speech, can be regulated more strictly than any other form of

expression. Thus, state authorities are entitled to control the distribution of false or misleading

advertising, advertising of illegal goods or services, and truthful advertising, if public interests are

in question.

(5) Browse through recent FCC orders against companies that have been accused of deceptive

marketing of their environmental claims. (You can find them by going to the Law Library and

looking at the past 3-4 year of "FTC Reports," or you can search on NEXIS in the OGSM library. I

found 60 cases, most of which are on point by going to the TRADE library, FTC file, and doing

the following search: (ENVIRONMENT! W/4 GUIDELINE!) OR (ENVIRONMENT! W/4 CLAIM!) OR

BIODEGRAD! OR LANDFILL!

Americans spend billions of dollars every year on supplements, foods and devices in

hopes of improving their health and fitness. But not all of these products live up to the advertising

claims that they can help people lose weight, combat disease, and improve their cognitive

abilities. The Federal Trade Commission combats this type of deceptive advertising in
coordination with the Food and Drug Administration. The FTC also seeks the expertise of other

government authorities, including the National Institutes of Health. With regard to the

supplement industry, which reported an estimated $25 billion in sales in 2009 a six percent

increase over the previous year – market analysts suggest that the downturn in the economy has

led to increased spending on these products, as consumers attempt to manage their own

healthcare and avoid expensive doctor visits and prescription medications. All too often, the

health claims made for these products are false or unproven. Over the last decade, the FTC has

filed one hundred and twenty cases challenging health claims made for supplements. Meanwhile,

in recent years there has been a trend in food advertising toward making unproven claims that

eating certain foods can improve health and even reduce the risk of serious illnesses such as

prostate cancer and heart disease.

the CEO of the company with the following information: (1) description of the product and

environmental claims, (2) restate the FTC concerns and the terms of their final order, (3) an

analysis from your company's perspective of why the FTC is right or wrong on the merits, and

(4) your recommendations for future marketing campaigns for this or similar products.

LEANSPA, LLC

1) The FTC and the State of Connecticut sued the marketers of LeanSpa in December 2011,

charging that they used fake websites to promote acai berry and “colon cleanse” weight-loss products,

and falsely told consumers they could receive free trials by paying a nominal shipping and handling cost.

In reality, consumers paid $79.95 for the trial, and for recurring monthly shipments of the product that

were hard to cancel. The LeanSpa marketers settled the complaint in 2014, agreeing to stop their allegedly
deceptive practices and surrender assets for consumer redress. In October 2015, the FTC announced it

was mailing more than 23,000 checks totaling over $3.7 million to consumers who bought LeanSpa

products. In December 2019, the FTC sent a second round of checks totaling over $321,000 to consumers

who bought LeanSpa products.

2) The Federal Trade Commission is mailing 1,951 refund checks totaling over $321,000 to

consumers who bought supposed weight-loss products marketed by LeanSpa, LLC. This is the second

round of checks in this matter. The FTC and the State of Connecticut sued the marketers of LeanSpa in

December 2011, charging that they used fake websites to promote acai berry and “colon cleanse” weight-

loss products, and falsely told consumers they could receive free trials by paying a nominal shipping and

handling cost. In reality, consumers paid $79.95 for the trial, and for recurring monthly shipments of the

product that were hard to cancel. The LeanSpa marketers settled the complaint in 2014, agreeing to stop

their allegedly deceptive practices and surrender assets for consumer redress. In October 2015, the FTC

announced it was mailing more than 23,000 checks totaling over $3.7 million to consumers who bought

LeanSpa products. After the initial mailing was complete, money remained in the settlement fund. The

Commission used a portion of this money to send postcards to consumers potentially affected by

LeanSpa’s marketing practices, and received more than 2,000 responses, leading to the additional refund

mailing announced today.

3. When the Federal Trade Commission finds a case of fraud perpetrated on consumers, the

agency files actions in federal district court for immediate and permanent orders to stop scams; prevent

fraudsters from perpetrating scams in the future; freeze their assets; and get compensation for victims.

When consumers see or hear an advertisement, whether it’s on the Internet, radio or television, or

anywhere else, and federal law says that ad must be truthful, not misleading, and, when appropriate,
backed by scientific evidence. The FTC enforces these truth-in-advertising laws, and it applies the same

standards no matter where an ad appears – in newspapers and magazines, online, in the mail, or on

billboards or buses. The FTC looks especially closely at advertising claims that can affect consumers’ health

or their pocketbooks – claims about food, over-the-counter drugs, dietary supplements, alcohol, and

tobacco and on conduct related to high-tech products and the Internet. The FTC also monitors and writes

reports about ad industry practices regarding the marketing of alcohol and tobacco. During the recent

coronavirus (COVID-19) pandemic, the FTC has been sending warning letters to companies that may be

violating the FTC Act, to warn them that their conduct is likely unlawful and that they can face serious

legal consequences, such as a federal lawsuit, if they do not immediately stop.

4. Under the law, claims in advertisements must be truthful, cannot be deceptive or unfair, and

must be evidence-based. For some specialized products or services, additional rules may apply. If you

advertise directly to children or market kid-related products to their parents, it’s important to comply

with truth-in-advertising standards. Companies are offering consumers an ever-growing assortment of

“green” options. But whether your environmental claims are about the product or the packaging, you'll

need competent and reliable scientific evidence to support what you say

Companies must support their advertising claims with solid proof. This is especially true for

businesses that market food, over-the-counter drugs, dietary supplements, contact lenses, and other

health-related products. The Internet connects marketers to customers across the country and around

the world. If you advertise online, remember the rules and guidelines that protect consumers also help

businesses by maintaining the credibility of the Internet as a marketing medium. In addition, truth-in-

advertising standards apply if you sell computers, software, apps, or other products or services