
Agency: WAX, Canada
Copy: "When the horsemen of the apocalypse arrive, we bet they won't be riding horses. The XL 1200 N Nightster is coming. "


Now let's take a look at some eco-designs (improvements over existing products), and eco-innovations (new types of products) that do a great job of winning over green consumers while grabbing market share.
Tom's of Maine
The husband-and-wife team of Tom and Kate Chappell created this full line of personal care products about 25 years ago. Ten or so years later, the brand broke out of the "deep green" niche to achieve distribution in CVS, Duane Reade, and other mainstream drug outlets.
The company is now owned by Colgate-Palmolive and is just one of many "deep green" brands that are being purchased by mainstream marketers. Other examples are Estee Lauder's purchase of Aveda, Danone's partial purchase of Stonyfield Farm, and Unilever's acquisition of Ben and Jerry's. The messages on the sides of the Tom's of Maine toothpaste packaging may be one reason why. Check out the letter from Tom and Kate stating their company's mission.
Signing the letter lets customers know there really is a Tom, there really is a Kate—just like there really is a Ben and there really is a Jerry: i.e., two real live people "minding the store" and staking their personal reputations on the quality of their products.
On another panel is a list of all the ingredients in the toothpaste—all natural spearmint oil for instance, and next to each ingredient is the role each plays in the toothpaste. There's even a third column that lists from where each ingredient is sourced.
This is unprecedented in the history of consumer goods! Can you do this with your product's ingredients? How many of them may contain warning labels? (Crest and Colgate each do.) For Tom's, listing the ingredients, such as natural spearmint oil, helps get consumers over any price barriers at the point of sale. They are choosing a brand with natural ingredients and recognize that it must come with a price.
Toyota Prius
I know you've been hearing a lot these days about Toyota's Prius. For lots of good reasons, it's likely the most successful "green" product in the US.
It provides consumers with all they seek in a sedan and more—attractive styling, fuel efficiency, the ability to drive for an unlimited amount of miles only stopping for fill-ups (versus, for instance, having to stop for a 12-hour recharge if the engine were only electric), and because of the hybrid engine, a quiet ride, since the car doesn't idle at stoplights.
The car's dashboard comes with an unusual feature: a screen that lets the driver know which of the two engines is in use and how efficiently fuel is being used at any given moment; according to anecdotes, Prius owners try to beat their previous record each time they drive!
When the car was introduced, ads focused on superior performance evidenced by a quiet ride, and supplemental ads touted its environmental bona fides. With energy prices on the rise, the Prius is now being marketed for its superior fuel efficiency, and a PR machine fuels efforts to link the car to environmentally conscious celebrities and causes. Some owners, it is reported, even buy the car for what is being called "Conspicuous Conservation"—letting all know that they are environmentally astute.
Tide Coldwater
Tide Coldwater is a line extension of Tide that is helping it build brand equity and stay fresh in the marketplace.
A "Life Cycle Assessment" commissioned by Procter and Gamble found that 80%-85% of the energy used to wash clothes comes from heating the water. P&G calculated that US consumers could therefore save $63 per year by washing in cold water rather than warm. So, with the proviso that it could persuade consumers that coldwater washing was efficacious, P&G positioned the product as a way to save on energy bills.
First, marketing efforts reassured consumers of the product's efficacy. On a special Web site, consumers could calculate the amount of energy they could save yearly personally and in conjunction with all the others who took the "Tide Coldwater Challenge."
Advertising showed how long major US landmarks such as the Empire State Building could be lit with the energy that could be saved if all of the consumers in those cities switched to cold-water washing.
Finally, the Web site provided various energy saving tips and resources, starting with information about switching to Energy Star certified energy-saving compact fluorescent lighting, tips from respected environmental group the Alliance to Save Energy, and encouragements to "Consider buying a Different Kind of Car"—namely, the Prius.
This type of marketing no doubt reassured consumers of the product's performance. They were empowered by the ability to calculate their own savings and to aggregate that savings with those of others. By using the Internet versus traditional advertising-led messages, they were engaged in the message. By leveraging word-of-mouth via the Tide Coldwater Challenge and associating with notable third parties, any barriers of skepticism were overcome. And Tide
Brand found a fresh new message that was in step with consumers' need to control rising energy prices.
Method Line of Household Cleaning, Laundry and Personal Care Products
The environmental movement is about doing things differently. Method is a brand that is trying to express this "differentness" in nearly every way possible, starting with how the product looks and smells.
The bottle for the dish soap looks like an upside down teardrop. It was specifically designed by well-known fashion designer Karim Rashid so consumers would feel comfortable leaving it right at the kitchen sink, helping the user project a status of sorts.
The product label sports a very understated lower case "m" in a circle, with "method" also in lowercase just beneath. No splashy lettering. No flashy starbursts like those that were designed to capture consumers' attention at mainstream store shelves. What attracts consumers to this product is the distinctiveness of the package shape and the unique coloring of the product inside.
This product may look expensive, but it actually sells at competitive prices at Target, Office Depot and Safeway!
Method doesn't advertise. It attracts consumers via strong price value and word-of-mouth that is generated in highly effective ways, starting with the uniqueness of the product itself. Visit the Web site and read how Method tells visitors what it stands for: A page each is devoted to the elements of the Method "mantra": Efficacy, Safety, Environment, Design (do your brands consider design?), and Fragrance. (In-home interviews I conducted for a client recently attested to the importance of light scent to this brand's purchasing decision.)
Do your brands have mantras—or simply a list of benefits, or possibly just a marketing and creative strategy?
Another thing you'll find at the Method Web site is a campaign called "I Fight Dirty." (Note the "anti" tone.) This campaign empowers users to not only fight against dirt but also dirty practices by industry. Thus, its captures the essence of what the brand is about from both functional as well as emotional standpoints. (Another breakthrough.)
It also sends a newsletter to consumers who sign up. Recent issues have proffered tips on how to compost Christmas trees, locate brands of reusable diapers, and save pristine beaches by fighting dumping in oceans of plastic laundry bottles.
The Web site talks about the places where Method has been spotted—like the "Green Festival" hosted by Coop America each year. And it even gives visitors the opportunity to buy merchandise, like T- shirts emblazoned with the method name. How many of your users would wear clothing with your brand's name on it? How many of you would even think to offer it?
Putting the "Rules" to Work for Your Business
To start capitalizing on the many market opportunities represented by sustainability, consider the following:
[Jacquelyn A. Ottman is president of J. Ottman Consulting, Inc., a New York City-based marketing and new products firm that advises on strategies for green marketing. She is the author of Green Marketing: Opportunity for Innovation (2nd edition). Contact her via (info@greenmarketing.com). ]
'Classic Truths': If You Don't Measure, You Can't Manage: The Best Metrics for Managing Marketing PerformanceA good example of a marketing benchmark can be traced back to the early 1990s. Over a decade ago, market research firm IntelliQuest (now Millward Brown IntelliQuest) conducted a customer satisfaction research study for the personal computing industry.
The firm spoke to customers who rated the companies in the industry, which resulted in a measurement on a one-to-nine scale. It then learned that 84% of users who rated their satisfaction as a seven, an eight, or a nine would consider the same brand for their next purchase. Seven, eight, or nine became the metrics that companies aspired to attain. The benchmark was nine.
Three Metrics Gauges
To determine which success factors to measure and the appropriate metrics for each, marketers must have a clear understanding of the company's goals. A young company looking to gain traction in the market is focused on factors different from those of a more established company wanting to improve its customer relationships.
For those beginning to use metrics, listed below are four key performance indicators that support three metrics gauges: market share, lifetime value, and brand equity.
These gauges are directly linked to the three specific performance areas that Marketing can impact: acquisition, penetration, and monetization.
The first responsibility of Marketing is to identify and enable the organization to acquire customers, without whom there is no revenue, without which there is no business. Acquisition enables the company to increase its market share.
Although Marketing may not close the deal, marketing strategies move the customer through the buying process, from awareness to consideration. Four key performance indicators enable you to address market share:
The second responsibility of Marketing is to keep the customers that the company acquires and increase the value of those customers. It is expensive and ultimately disastrous to have customers coming in one door only to go out another. High customer churn signals a variety of problems and hinders your ability to create leverage.
The following performance indicators will help your drive these penetration-related metrics:
The third responsibility of Marketing is monetization. Up until the 1970s, a company's value was determined by its book value. Over time, intangible assets, such as a company's intellectual property, customer value, franchises, goodwill, and so on have had an increasing effect on a company's market value.
Marketing professionals can improve the market value of their company by improving their performance in four key areas:
A recently published report, "Measures + Metrics: Assessing Marketing Value + Impact," by Glazier, Nelson and O'Sullivan, corroborates these gauges and performance metrics. In their report for the CMO Council, the authors specified four performance metrics:
Regardless of which model companies choose to deploy, to fully capitalize on the benefits of metrics they should consider establishing a continuous process in which metrics are collected, analyzed, and reported on a regular basis.
Over time, metrics can reveal valuable information about which marketing tactics are most effective, what types of prospects are most likely to buy, which customers are most profitable, and how the market in general develops over time.
Also important to remember is that metrics themselves can change over time. As the market and the company evolve, marketers must diligently review and adjust their metrics.
Innovative competitors will continue to set higher benchmarks, ratcheting up the acceptable range of metrics. The airline industry's 45-minute airplane turnaround time was considered standard until Southwest Airlines decided to do it in 15 minutes. Some metrics may become outdated, and newer metrics and methods of measurement will require attention.
To work without metrics is to work blindly. A lack of metrics makes it extremely difficult to assess whether a course of action is working or needs adjustment. The proper use of metrics can provide guidance to help a company expand market position, lower costs, and retain the best customers so that the company can ultimately set the benchmarks in its industry.




What Is Your 'Return on Marketing Integrity'?
by Lynn B. Upshaw October 16, 2007
A Yankelovich study a few years ago found that as many as two-thirds of Americans believe that businesses would take advantage of the public if those businesses did not think they would be exposed. As many as one-fourth of Americans agreed that there is literally nothing that business can do to recapture their trust once it is lost. ("State of Consumer Trust," 2004).
We live in a time of omnipresent scrutiny by citizen journalists, regulators, attorneys general, and virtually anyone with a computer and a point of view. The risks of shaky integrity have never been more real. Now would be a good time to measure how well a brand's marketing helps or hinders its perceived integrity, which is to say its ability to build and hold customer trust.
Metrics for a New Kind of ROMI
Most marketers may be honest in the sense that they do not habitually break the law, but the definition of "honest" is shifting to a higher plane, just as it has for stock-option grants and board directors' liabilities.
Marketers need to consider a new calculus: "return on marketing integrity"—that is, a new type of "ROMI"—which can lead to stronger business performance.
Traditional return on marketing investment is calculated using gross margin generated by marketing efforts (GM), minus the marketing investment (I), divided by that investment: ROMI = (GM - I) ÷ I. The calculation for return on marketing integrity is identical, except that investment is replaced with marketing integrity. Simple enough to explain, considerably more difficult to measure.
One of the advantages of an integrity metric is that the additional investment is not like any other factor that could confuse the calculation. Consequently, it may be difficult to extract the market impact of a specific marketing effort from the effects of sales development drives or unexpected distribution gains. However, integrity investments are unique and thus—at least in theory—should be more trackable.
For instance, if a company invests significant person hours and some out-of-pocket spending behind ensuring that every marketing claim is ruthlessly checked for accuracy, then any attitudinal or behavioral gains among customers can be at least partially credited to those investments.
Patagonia asks its people to continually check the earth-impact of its fabrics and to be certain that what it claims in its catalog is as accurate as it can be. Kiehl's Since 1851 does the same when it comes to its cosmetics lines. Herman Miller screens all its marketing materials through a simple filter suggested by a former CEO: "The truth is good enough."
These extra efforts cost resources and time, and some portion of what those companies reap in terms of positive customer attitudes and loyalty can be rightly attributed to such actions.
Exactly how much is attributable would be based on a weighted factoring system that could be established by the marketing teams, with the concurrence of other contributors to company/brand performance.
Why Integrity Is a Return Worth Measuring
Here's why measuring the impact of marketing integrity may be well worth the effort:
> Measuring the impact of integrity can help marketers learn some key reasons why customers may remain loyal, leading to increased profitability. Infosys is a Bangalore, India-based IT services company with a growth rate that is the envy of its industry. The 90% of Infosys customers who return year after year are there for one major reason: They can count on Infosys to deliver what they promise because they believe in the company's integrity, not just its past performance.
> Tracking integrity impact may yield new ways to attract more new customers than if the company had not adhered to such standards. Kiehl's, since 1851, has operated like a neighborhood apothecary, which means that the people of each store have a personal stake in what they sell. The products they serve and the service they provide are uniquely superior to so many other alternatives, and customers return because they know authentic integrity when they see it.
> Measuring a return on integrity can help build strong competitive strategies that could provide an edge in the marketplace. A competitor may gain some ground over the short term by stretching the truth or endangering its brand's equity, but this is an arena where what goes around tends to come around. Companies that demonstrate "disruptive integrity" stand out as organizations that customers believe, and which deserve their competitive advantages, as has been repeatedly demonstrated by Trader Joe's, W.L. Gore, and Timberland Shoes.
> By regularly evaluating integrity performance and its impact on the financials, a company may also be able to reduce or eliminate the unforced integrity errors that have cost other companies major brand equity and sales declines. For example, the business decline and fall of Guidant Corporation was prompted by alleged integrity flaws in its products, and the ultimate liabilities of those problems were gauged to be well into the billions. At last check, the Guidant brand itself was slated to be ash-heaped and, with it, an enormous amount of brand equity. A simple set of integrity metrics and measurements might have prevented such losses in both of these cases.
> Maintaining a measurable sense of integrity can protect brand equity when a company's integrity is under scrutiny. Hewlett-Packard has historically been a company that operates with exceptional integrity, but that ethos did not prevent members of its management from allegedly making serious ethical mistakes when investigating an information leak on its board of directors in the fall of 2006. On the other hand, when CEO Mark Hurd promised a Congressional subcommittee that such an integrity breech would not happen again, his promise may have carried a bit more weight because of the company's 68-year legacy of spotless integrity prior to the scandal.
Aggressive Integrity
The probabilities of such companies making serious integrity errors are much smaller than for other companies because they have committed to aggressive integrity through organizational and cultural honesty. That makes an enormous difference in how they create their products and services and how successfully they market them to their customers.
During a credibility crisis involving the troubled General Re acquisition, Warren Buffet once observed, "Berkshire can afford to lose money, even lots of money; it can't afford to lose...even a shred of reputation." If the Oracle of Omaha can't afford it, neither can the rest of us.
Whatever success a brand or company has in generating revenue with its marketing programs, that success will be enhanced and protected by aggressively cultivating and tracking marketing integrity.