Transitioning to a circular economy with green marketing strategies
Growing public awareness about climate change and sustainability is increasingly affecting consumer behavior. And, as more and more companies introduce circular economy principles, it’s an approach you should definitely be reflecting in your marketing!
The circular economy and marketing – what’s the link?
In view of resource shortages and growing calls for a more sustainable approach, the traditional take-make-waste system is no longer tenable in the modern world. By contrast, the circular economy model is going from strength to strength.
In a circular economy, the aim is to keep resources in circulation by reusing, repairing and recycling them, thereby keeping waste and the impact on the environment to a minimum. The key factors at play here are durable design, closed materials cycles and renewable concepts that support natural systems.
Instead of focusing on the short-term use of products, companies are focusing on longer-lasting items and how to market them. By offering repair and refurbishing services, they are responding to their customers’ needs and acting in a way that conserves resources by following circular economy principles.
Circular economy considerations actually come into play at an even earlier stage – in fact, the product design phase is central to the whole concept. For example, products have to be made from reusable and/or recyclable materials to meet with consumer approval. By harnessing digital technologies such as closed-loop reporting, companies can learn lessons from product use in order to make improvements, helping them to reach new milestones on the road to sustainability.
But why put in all this effort? In addition to benefiting sustainability in general, making the transition to a circular economy also improves a company’s image and how a brand is perceived. This goes hand in hand with engaging with new customers and increasing popularity.
Green marketing strategies: what today’s customers really want
What questions do consumers ask themselves before making a purchase? As well as thinking about the benefits of a product and whether or not it represents value for money, more and more customers care about where it was manufactured. Above all, they want to know whether environmental standards have been taken into account. Companies that are transparent when it comes to information about their supply chain, materials and production methods have an advantage here. After all, transparency is a sign of trustworthiness and authenticity. But take care: customers are alert to whether companies actually adhere to the ideals they espouse or if they are greenwashing. Buyers expect brands to be honest in their communications, even if they still have challenges to overcome.
These pressures make integrating circular economy principles into marketing strategies an inevitable step, known as sustainable or green marketing. Thanks to environmentally friendly materials and socially responsible practices, marketing can become both more sustainable and more attractive to customers. Although it takes place online, digital marketing is not excluded from requirements for sustainability and resource efficiency. After all, digital tools, servers, clouds and so on are big consumers of electricity. There is a question over just how sustainable green marketing can actually be.
What does green marketing involve?
If you want your products to impress customers from a sustainability angle, you need the right strategies. With green marketing, you’re primarily appealing to eco-conscious consumers. Green marketing focuses on environmental considerations in the following areas in order to minimize a brand’s ecological impacts:
- Manufacturing
- Product design
- Packaging
- Distribution
- Advertising and brand communication
Using green marketing strategies has a number of advantages. Consumers like to do their bit for the environment and are more likely to identify with sustainable companies – and that has a significant influence on purchasing decisions. Sustainable operational processes can make business practices more efficient. Above all, a company that adopts this approach can gain a competitive advantage.
However, green marketing also poses financial challenges that should not be underestimated. What’s more, the change in image may not appeal to everyone. That’s why it’s important to establish effective strategies.
Four green marketing strategies to boost your business
There are many factors that determine which strategies will pay off for a company. We’ve summarized four ways you can kick-start your green marketing below:
#1 Green campaigns: These kinds of special initiatives and campaigns are all about making an authentic connection with the chosen target group on as personal and emotional a level as possible. The aim is to raise awareness about issues relating to the environment and sustainability by shining a spotlight on values such as environmental protection, resource efficiency and social responsibility.
#2 Transparent communication: Honesty is the best policy. Measures such as storytelling about a product’s production journey, giving insights into working conditions and disclosing information about environmental impacts generate greater awareness and build a closer bond with the brand. Visually appealing content and interactive formats help to convey messages authentically and convincingly.
#3 Cause-related marketing (CrM): This involves collaborations with a charitable focus. The company donates a share of proceeds to a predetermined social or environmental cause, strengthening customer confidence. It’s essential that the cooperation partners are compatible with the company’s portfolio.
#4 Make use of sustainability certificates and labels: By using recognized sustainability certificates and labels, such as FSC, Fairtrade and EU Ecolabel logos, companies can provide credible proof of the environmentally and socially responsible nature of their products. These labels strengthen customer confidence as they are independently verified and guarantee that the product complies with specific standards.
Top green marketing examples
These three companies are already successfully implementing circular economy principles.
- Dyson produces innovative vacuum cleaners that have no dust bags and sells hair dryers that are more efficient than conventional models. The technology company has also put paper towels on the scrap heap by launching hand dryers that achieve the desired result within seconds.
- Ritter Sport has assumed responsibility as regards certified and sustainable chocolate. The German confectionery manufacturer has also invested in plantations and created new habitats for wildlife. Its cocoa farmers were involved in the company’s sustainability campaign.
- ASKET has committed to sustainability with its circular fashion concept. Its clothing is made in Europe from high-quality materials. The Swedish brand has also set up a Revival Program, where customers can return ASKET garments they no longer wear to receive a reward of up to 25 US dollars. ASKET then resells the garment as a second-hand item or remanufactures it.
Coupling the circular economy with a green marketing strategy
Establishing a circular model within your company and embracing sustainability represent a worthwhile and commendable mission that can have an impact on many parts of your business and help you appeal to new target groups by adopting green marketing strategies. Customers want to feel personally involved and be part of the change toward a more sustainable future. Companies that commit to transparent communication as well as resource-efficient production will gain customers’ trust in the long term, strengthen loyalty to their brand and set themselves clearly apart from the competition.
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