By C.R Herro Meritage Homes

Green marketing is being used to promote just about everything from toothpaste to homes, while promising consumers such lofty benefits as better health, reduced waste, the avoidance of global catastrophes and other “eco-friendly” and “sustainability” claims.

Being green denotes something different from product to product and from person to person. At times, being green has come to mean so many things, it doesn’t mean much at all.

But consumers’ interest in better health, responsible purchasing and saving the planet — and their appetite for positive product differentiation and a willingness to pay a premium for superior or responsible choices — has lured many manufacturers and service providers down the green marketing path in order to gain or keep their market share.

With green marketing becoming so ubiquitous, its overuse has spawned a new phrase, “green-washing.”

The accompanying rapid expansion of green marketing claims has caused the Federal Trade Commission (FTC) to repeatedly revise its guidance on how reasonable consumers can interpret particular green claims; and how marketers can substantiate and qualify their claims to avoid consumer deception.

In addition, the FTC recently sent warning letters and initiated legal actions against the green marketing practices of several of some of the largest and smallest U.S. companies.

This overpromising and under delivering on green claims has fostered a growing mistrust and skepticism among consumers. And as all marketers know, one poor impression in the marketplace can offset 99 positive impressions — causing the claims to be dismissed as marketing gimmicks and the company to fail in its marketing differentiation.

Follow a New Path to Green

Cutting energy consumption by 30% or using 50% recycled materials describe specific features or benefits — but these types of claims don’t necessarily resonate with consumers or fit neatly on a sales flyer.

And while green logos have come to embody everything from organic agriculture and global climate change to beneficial improvements in services and products, in some instances, they cynically depict business as usual.

The home building industry has made significant improvements in energy efficiency, indoor air quality, resource management and sustainable building practices, which can benefit individual consumers as well as the collective society.

But green homes are not all or nothing propositions. Features and benefits can vary from particular aspects of a home, such as extra insulation and the use of Energy Star appliances, to improving transportation logistics and reducing the ecological footprint of the home owner.

Whatever level of green attributes is achieved, green marketing can set new customer expectations and desires — and good green marketing can set them accurately. 

Third-Party Certification Can Set Accurate Expectations

One of the current tools to effectively educate and differentiate green homes are third-party labels and ratings denoting energy efficiency. From Energy Star appliance labels, SEER AC ratings, U and SHGC window labels and Home Energy Rating System (HERS) program certifications, a credible program depicting energy efficiency gives buyers, lenders and appraisers information that directly correlates with reduced home operating costs and enables consumer to compare home options.

Government-backed programs through the U.S. Department of Energy and the Environmental Protection Agency, such as Energy Star and Building America, provide government compliance and labeling.

Locally, there are municipal green building programs and utility-sponsored energy-efficient certification programs for indoor air quality, water management, energy efficiency and sustainable practices. In addition, independent engineering certifications and ratings exist for many household products and materials — including sustainably grown lumber, low-VOC paints and insulated doors, windows and walls.

These third-party validations allow consumers to make informed decisions based on empirical and comparative data.

Another important validation in home building comes from Realtors and appraisers, the experts that buyers look toward to guide them through the home buying process. So green marketing should not only demonstrate value to consumers, it should help Realtors better understand and leverage green home benefits to their buyers.

Such an approach also can lead to informed Realtors generating higher quality referrals and homes achieving higher resale values.

Make Good on Green Promises

With the consumer-realized benefits of green building constituting the most compelling value proposition when marketing green homes, a key component of consumer behavioral change rests on making good on green marketing promises.

Good green marketing substantiates and promotes the value of green home building and gives consumers the ability to make an informed, better choice.

C.R. Herro is the vice president of environmental affairs for Meritage Homes and heads its energy efficiency and sustainability program. In 2011, Meritage Homes began offering cost-effective, energy-efficient and integrated renewable designed net-zero homes. For more information, email C.R. Herro; or visit the Meritage Homes website.

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