strategy

Product Labels: Missed Marketing Opportunity

shopper When it comes to selling green products in a bleak economy, researchers at the Hartman Group say marketers may be missing a major opportunity: Using labels to create a story line.

In its ongoing research of people who fall all along the green continuum -- from those who don't participate at all to the most committed organic shoppers -- product labels are far and away the most important source of information for consumers, named by 33%. (Internet search engines come in second with 28%, but a company's own Web site ranked near the bottom of the list, with just 14%.)

"Consumers want to know the story -- the narrative behind a sustainable product," says Laurie Demeritt, president and COO of the Hartman Group, who made a presentation Tuesday on the issue. "For marketers, it's important to remember that sustainability claims are markers of quality, and product narratives help. The more you can tell people about how it's made, the greater its appeal."

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But it's important to do this in words that make sense to shoppers. The Bellevue, Wash.-based consulting company's research shows that "consumers are thinking much more broadly than marketers about what words like organic, green and sustainable mean," she says, adding that responsibility may be a word with greater resonance. "They use more positive words to describe these products," she says, "like hope, connection, simple living, authenticity and control."

Local -- another green-movement buzzword -- is also up for greater interpretation than many companies realize. The company's research shows that in survey-question format, people focus on the geographical implications, with 50% saying that "local" means products that are made or produced within 50 miles, and 37% saying they come from "within my state." But in interviews, the word has a more symbolic meaning. "It means that products come from a distinct locale, with authentic and unique attributes," she says, with the implication that they are made by a smaller company.

Demeritt says it's vital that marketers continue to promote the personal benefits that come from using a brand, whether that's a specific health benefit or financial savings. "Consumers are still thinking about a company's environmental and social reputation, but in the current economic downturn, it's important to connect value with quality."

Finally, she says the company's research shows that for all the media attention that has been given to greenwashing, consumers are less concerned: "They understand that they're taking small steps toward sustainability, and they seem to understand that companies are, as well."

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