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Eco-Friendly Building Trends & How You Can Sell and Market the Value of 'Green'

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Steven Kleber, President of Kleber and Associates- a marketing and communications agency based in Atlanta, presents at the 2009 Southern Building Show.
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SOUTHERN BUILDING SHOW 2009 Eco-Friendly Building Trends and How you can Sell and Market the Value of “Green” 1
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Page 1: Eco-Friendly Building Trends & How You Can Sell and Market the Value of 'Green'

SOUTHERN BUILDING SHOW 2009 Eco-Friendly Building Trends and How you can Sell and Market the Value of “Green”

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SOUTHERN BUILDING SHOW 2009 Eco-Friendly Building Trends and How you can Sell and Market the Value of “Green”

Introduction My name is Steven Kleber, CEO and founder of Kleber & Associates, an Atlanta integrated marketing firm that specializes in the home and building products channel. With more than 22 years of experience targeting consumers and influencers in the marketplace, I hope my perspective is beneficial to you as you strive for business success, increased market share and a strengthened competitive edge in today’s marketplace and during our nation’s challenging economic times. Green Movement Times have changed from the tree hugging hippy era when being “green” was thought of as just a fad. With soaring, record-breaking energy, water and food costs, elevated concerns about our nation’s economic and financial crises, and escalating awareness about global warming and the preservation of the Earth’s water and energy supply, individuals nationwide are coming together in an effort to reduce their carbon footprints. Today’s Presentation: An Overview Today’s presentation will be split up into two sections:

1. The industry’s eco-friendly building, design, architecture and product trends of note 2. How to market and sell the value of green

• Macro/global trends • Short-term micro eco trends • Consumerism • “Generation Green” – demographic breakdown • “Generation Green” -- motivating factors and purchasing habits • “Generation Green” – how to market and sell to them

SECTION I: GREEN BUILDING, DESIGN AND PRODUCT TRENDS The green movement has vastly altered the building, architecture, home design and home products industries. “Going green” used to be focused more toward commercial applications that weren’t necessarily visually appealing, affordable or functional for more residential uses. Now, building, design and product interest and demand for eco-friendly design, building and home products has risen, leading to increased selection and competitive pricing. People can now get a wider selection of “green” products that are aesthetically pleasing, affordable and that provide cost savings over time. Federal Incentives for Consumers In addition to the changing environmentally-friendly landscape, federal incentives have increased consumer demand and interest for energy saving products, design, buildings and services. As I’m sure you’re aware the new energy product tax credits are applicable for consumers on:

• Windows • Doors • Insulation • Roofs • HVAC systems

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SOUTHERN BUILDING SHOW 2009 Eco-Friendly Building Trends and How you can Sell and Market the Value of “Green”

• Water heaters • Biomass stoves • Geothermal heat pumps • Solar panels • Solar water heaters • Small wind energy systems • Fuel cells

Federal Incentives for Builders Home builders are eligible for a $2,000 tax credit for a new energy efficient home that achieves 50% energy savings for heating and cooling over the 2004 International Energy Conservation Code (IECC) and supplements through homes built through the end of December 2009.

Stipulations include that at least 1/5 of the energy savings must come from building envelope improvements. This credit also applies to contractors of manufactured homes conforming to Federal Manufactured Home Construction and Safety Standards.

There is also a $1,000 tax credit to the producer of a new manufactured home achieving 30% energy savings for heating and cooling over the 2004 IECC and supplements (at least 1/3 of the savings must come from building envelope improvements), or a manufactured home meeting the requirements established by EPA under the ENERGY STAR program.

Other Builder Incentives With an increased focus on energy and water saving options for today’s homes, builders, developers, architects and designers can capitalize on organizational programs and product options: WaterSense Program

• Help to make environmentally-products the preferred choice

• Conservation of water • Environmental protection • Increased revenue, market share by

providing ways homeowners can save on utility bills

ENERY STAR Program

• Market differentiation • Market recognition • Increased customer satisfaction • Increased revenue • EPA support • Program flexibility • Environmental protection • For developers, increased ability to attract builders and easier access to rights for land

development

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LEED for Homes

• High-performance eco-friendly homes • Use less energy, water and natural resources • Create less waste • For consumers, market: • Lower energy and water bills • Reduced greenhouse gas emissions • Less exposure to mold, mildew and other indoor toxins • Healthier and more comfortable • Comparable pricing to a conventional home

Changes in Building and Design Landscape New federal legislation that benefits both consumers and builders, along with the increased interest in reducing the nation’s carbon footprint has contributed to the demand of new residential buildings for homeowners including:

• Smaller homes on small lots • Available of at-home gardens (locavore movement) • Cluster developments – lots are smaller, commonly cared for, include exterior ecologically-

made materials and internal green products, design elements • Communal Living -- “intentional communities” comprised of people of all ages and

backgrounds seeking to reduce their carbon footprints and a way of working within the community to help one another and the environment,” most prevalent in larger urban areas.

• Cohousing communities -- boast high quality, energy efficient homes, a common house, office/studio space for rent, and productive farmland in a woodland area.

Home Systems

• Greywater systems • Water infiltration systems • Small wind energy systems • Solar • HVAC systems

Energy Savings

• Appliances • Windows • Doors • Insulation • Roofs • HVAC systems • Water heaters • Biomass stoves

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• Geothermal heat pumps • Solar panels • Solar water heaters • Small wind energy systems • Fuel cells

Water Savings Low-flow:

• Toilets • Faucets • WaterSense plumbing fixtures

Other Eco-Friendly Options

• Low VOC exterior and interior paint • Lighting • Products made out of ecologically-friendly materials, i.e. flooring, cabinetry

Green Movement: The Bottom Line The green movement isn’t just a fad, but a valid concern and priority for millions of people throughout the nation -- we’ll discuss this is more detail shortly. That means that today’s builders, architects, designers, remodelers and home products manufacturers must react to the needs and demands of homeowners, especially among today’s emerging homeowners. It’s not window

dressing; it’s about providing customers with what they are seeking in terms of buildings, design and product performance in relation to the green marketplace. And from a marketing and sales perspective, it’s essential to market the value of green in all aspects of your business by providing information, direct messaging and marketing collateral, among other tools by leveraging today’s multiple marketing platforms and reaching out to today’s environmentally-friendly consumers in the places they live and learn.

SECTION II: HOW TO MARKET AND SELL THE VALUE OF GREEN TARGET AUDIENCES SHAPING THE GREEN MOVEMENT Macro Global Trends Let’s first discuss today’s global macro trends. The major forces that shape our societies—from politics to environmental developments to financial meltdowns—have a major impact on changes in consumer behavior. First, a brief definition: Macro trends* are the broad forces of change that create the future context of today’s world. They represent the sudden appearance and ongoing progress of emerging global phenomena, such as market motivators and consumer values. Understanding and utilizing macro trends is now seen as a prerequisite for excelling in business.

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countries will remain the largest consumer and industrial markets, the rise of a massive

Understanding macro trends—and determining their significance to current challenges—allows us to strategically anticipate and adapt to change, and alerts us to the threats and opportunities in our future business environments. So what are the most important macro trends for the next 12-18 months? Macro Global Trends The current top 12 global macro trends, which look beyond the current recession, as defined by Swiss business school IMD:

1) Economic Power Shifting: The focus of economic

power is shifting to Asia and BRIC in terms of investment and output, away from the outdated “Triad” markets of the 1980s and 1990s. The question is how independent the BRIC markets will be in driving global growth and what the role of the Triad will be.

2) Shifting Market Landscape: While developed

global “middle class” in rapidly developing economies (RDEs) will shift the demandlandscape radically. The competition for these markets will be intense, but which competitors will succeed?

3) Changing Geopolitical & Security Landscape: Globalization is driving new dimensions

of power beyond military might, including economics, resources and technology. But the new global landscape is not stable: risks and nationalism are rising.

4) Fracturing Global Social Fabric: Globally the population is becoming older, more urban,

more Asian and more mobile. At the same time, traditional social structures are fragmenting, shifting notions of personal identity. With demands for greater inclusion by previously isolated segments of society, divides—and associated tensions—are increasing.

5) Growing Stakeholder Demands on Business: More stakeholders—public and private—

are actively demanding transparency and accountability from business. Corporations are seen as part of society’s problems. Can they also become critical contributors to required solutions?

6) Changing Consumer Landscape: In more diverse

and mobile societies and economies, new consumer groups are emerging. Consumer segmentation now requires new lenses, as new sources of similarity and difference emerge. Consumers increasingly demand more involvement in and customization of consumption experiences.

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ourced

7) Changing Industry Landscape: Business models must become more flexible. Power is shifting along the value chain and the competition to create and capture value—and profits—is intensifying. The emergence of BRIC multinationals means more intense competition. Flexibility and innovation are critical to avoid being “stuck in the middle.”

8) Changing Nature of Capital: Global financial flows are accelerating, with Asia increasingly

funding the deficit spending of the US and, partly, Europe, leading to global systemic risks now being realized as the current credit crunch redefines the global financial system. New power brokers are emerging, reshaping market dynamics and potentially raising tensions.

9) Changing Labor Landscape: A raging global war for talent for both skilled and “low cost”

jobs is increasing. Asia is increasingly important for all types of skills. Partnering and outsourcing is on the rise within and across borders.

10) Growing Pressure on Natural Resources: Basic resources are under threat, including

water, energy, food and habitats/climate. Consumption of critical resources is outpacing the rate that the planet can sustain. Public and institutional activism is rising, demanding action.

11) Changing Technology Landscape: A global technology revolution is gaining pace,

crossing national borders and scientific disciplines. New technologies, including biotechnology and nanotechnology, will reshape industries and our daily lives.

12) Changing Economics of Information & Knowledge: Exploding connectivity and

channels for information are making knowledge creation a global imperative. Networking is critical! Gaining an advantage in and protecting knowledge is difficult to achieve—and even more difficult to sustain.

While for some of you macro trends are also something to be watched and interpreted by your scenario-planning department, they’re crucial elements of your point of view. Let’s move on to the short-term future. Short-Term Future Consumer trends emerge across the globe and have the potential to spread quickly because they appeal to experienced consumers’ needs and wants in almost universal ways. The same goes for the

examples highlighted: they’re best of breed, and sfrom Singapore to Sweden. In that sense, we’re very much about the SHORT-TERM FUTURE*: there is nothing in these slides that can’t be applied today or tomorrow. It is all happening; it’s a snapshot of what other organizations are having fun with worldwide as we speak, and that makes it perhaps even scarier than exploring the unknown, since there is no excuse for not knowing or acting upon the information provided.

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But. What if one or more of the trends and related examples featured in this report really do not apply to your market or country? It’s a question often asked. The standard reply (assuming you’re right about your market’s unreadiness):

• First of all, why limit yourself to one market or country? If you think your own country isn’t ready for a trend, why not introduce it to another country that is ready? It's a global marketplace out there, making it easier than ever for you to be a global entrepreneur or marketer.

• Secondly, you only have to dive into one of the many global youth tribe studies to find

further proof that when it comes to brands, when it comes to consumption, the similarities worldwide far outnumber the differences. It's a total cliché, but yes, younger consumers are well-connected and well-informed, and treat the global marketplace as a smorgasbord of best-of-the-best delicacies. A taste of things to come if we've ever seen one.

• Thirdly, instead of worrying about readiness in a specific market, you can also go ahead and

carefully prepare for that moment, while learning best practices from those who are already applying the trend elsewhere. Just keep your costs down while waiting and learning :-)

Basically, either think big by taking something global, or think small while learning and not spending too much money. Now let’s explore the global eco phenomenon. ECO What could I possibly add to the heaps of eco-documentaries, carbon emission studies, corporate greening initiatives and Earth Day activities now dedicated to one of the world's biggest tasks at hand: moving from wasteful, polluting economies to sustainable ones? Well, how about a fresh, consumer-oriented look at some of the newer opportunities in the next 12-18 months now that ‘eco awareness’ has been embraced by sizable parts of the global middle classes? That means I won’t be talking about the hunt for renewable energy sources (it’s macro, and it’s being documented everywhere),or merely ‘green products’ (ditto), but rather focus on sub-trends like ECO-ICONIC, ECO-METERING, ECO-CHEAP, ECO-CHINA and ECO-GENEROSITY. ECO-ECONIC Will continue to grow in importance this year. “Eco-friendly goods and services sporting bold, iconic markers and design, helping their eco-conscious owners show off their eco-credentials to their peers. At the heart of ECO-ICONIC is a status shift (isn’t there always?): many consumers are eager to flaunt their green behavior and possessions because there are now millions of other consumers who are actually impressed by green lifestyles.” Here are the latest examples on this trend:

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• Philips has introduced an ecological lighting concept called the Light Blossom. The

Light Blossom collects energy and monitors light emission differently in its ‘day’ and ‘night’ modes: at night the LEDs beam light only when and where needed through proximity-sensing technology and during the day the Blossom imitates a real flower with petals that open toward (and follow) the sun, storing solar energy. The Light Blossom can also function like a windmill.

• Texas-based Ronn Motor Company has

designed a sexy new eco-friendly car, The Scorpion. This hybrid features the company’s Hydrogen Fuel Injection (HFI) fuel delivery system which increases fuel mileage between 20-40% and reduces CO2 emissions to nearly zero. The USD 150,000 Scorpion will bon the market soon.

e

• Toyota officially announced the details

of the new generation Prius in January 2009 at the North American International Auto Show in Detroit, but a Solar Prius has apparently now been produced in prototype form. Toyota placed solar panels on the roof; the power generated by the system will be used for the air conditioning.

• Philippe Starck has offered his own take on the electricity-generating wind turbine. The

design, called Democratic Ecology, has been developed with Italian industrial group Pramac and features transparent plastic blades. The device will be priced at EUR 500-800, and it is designed to produce 80% of a home’s electricity. The first in a series of designs reflecting Starck’s new environmental focus, the turbine could soon be joined by a solar panel than attaches as a thin film to existing windows.

And a cool aquatic ECO-ICONIC example:

• The DSe Hybrid 12m is a sustainable luxury yacht that was recently introduced at the Fort Lauderdale International Boat Show by Miami-based Island Pilot. The ship can cruise indefinitely at speeds up to 6 knots while creating zero CO2 emissions using technology that combines diesel, solar and electric power. On-board amenities include a master stateroom with a 270-degree panorama view, a 26” HDTV and a Bose home theater system. The prominent solar panels and two wind turbines show off the owner’s green leanings.

ECO-CHEAP With America still operating in a recession, count on all things ‘eco’ to be repositioned from ‘worthy but expensive’ to ‘cheap and, oh yes, worthy’. Dubbing this sub-trend ECO-CHEAP, these manifestations will be hard to miss.

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On the one hand, there will be cash-strapped consumers who go out of their way to save money on energy bills, motorized transport and other waste-prone, eco-unfriendly activities. While the environment may not be their first concern, they will nevertheless create less pollution. On the other hand, there’ll be consumers who are still primarily interested in more sustainable products, but no longer willing or able to pay the usual premiums. Examples:

• BMW repositions the fun-loving Mini as cheap to run, and no doubt as eco-friendlier, too. Which will become an even more compelling story when the new Mini E (E for electric) goes into mass production.

• Payless ShoeSource recently announced a new

line of affordable eco-minded shoes. Summer Rayne Oakes, green fashion and beauty expert, has signed on as eco-consultant for the green footwear collection, which will use sustainable and eco-friendly materials such as organic cotton and linen, natural hemp, recycled outsoles and eco-smart packaging. See also Wal-Mart's Love, Earth line of affordable, environmentally conscious jewelry.

What product or service will you reposition in the next 12 months to appeal to consumers who are into ECO-CHEAP? ECO-METERING ECO-METERING is where ECO-CHEAP and ECO-STATUS meet. Expect frugal, status-seeking consumers to embrace a growing crop of devices and services that help them make the most of energy saving options (ECO-CHEAP) and simultaneously display the related ‘green savings’ to peers (ECO-STATUS), or at least provide their owners with eco-bragging ammunition. Smart Meter Ontario, an informational site maintained by the government of Ontario, has a good summary of the benefits of smart meters:

• You’ll be able to take action to manage your electricity bills. With attention to how and when you use electricity, you'll be able to contain or reduce your costs.

• You’ll get real feedback about your electricity use. • Your electricity bill will show how much you consumed—and, in the future, detailed

information may be available to you via the internet or by telephone. • You’ll get more precise electricity bills. The bills you receive will be based on the hourly

readings taken and sent by your Smart Meter. Examples:

• In September 2008, smart meter producer Echelon announced the first full-scale roll-out of its Networked Energy Services (NES) System in Germany. The public utility of

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Hassfurt awarded the contract to provide all of its approximately 10,000 customers with an advanced metering infrastructure over the next three years. In fact, Germany recently proposed a new energy law requiring all new and remodeled homes to be equipped with smart meters by 2010 to promote energy conservation and efficiency. Echelon also has a deal with Swedish utility Halmstad Energi och Miljö AB to update its customer base of 38,000 electricity meters.

• Smart meters need a smart grid though. This year, keep an eye on GE and Google, who

are cooperating to develop a smart electrical grid that can make better use of power derived from renewable energy, and will enable consumers to monitor individual energy use, sell energy back to utilities from electric car batteries and program appliances to turn on at times when electricity is least expensive.

More metering, counting and tracking of energy use:

• UK-based Ecokettle’s Eco Showerdrop is the world’s first low-cost, universal shower meter. A digital LED display indicates exactly how much water a particular shower uses so that consumers can monitor their ahome use of water, saving money and energy. No installation or tools are required to set up the Showerdrop, which is available for order through several sustainable suppliers posted on the website.

t-

• RoofRay is a brand-new California startup

aiming to help consumers with the often arduous process of getting solar panels installed. Using the site's modeling tools, consumers can estimate how much solar energy a home could capture and how that would affect their monthly bills based on past weather conditions, current power bills, the slope of the roof, and how much paneling the roof can hold. Ultimately, RoofRay hopes to create "RoofRaytings" for buildings and provide them to real-estate search engines as an indicator of the solar potential of homes or businesses for sale. It also plans to create an online marketplace where solar installers and integrators can bid for consumers' business. See also FirstLook.

• eco:Drive is a new Fiat-branded widget which aims to improve driving efficiency by up

to 15%. This means a smaller carbon footprint at the same time as saving on fuel. The widget can be transferred onto a USB stick and plugged into Fiat’s Blue&Me technology (a USB port on the dashboard). The software then evaluates driving and gives a mark out of 100. Tutorials subsequently encourage drivers to improve their driving, their score and ultimately, reduce their carbon emissions.

• Carbon Diem, a new software package that launched in the beginning of 2009, runs on

users' GPS-enabled mobile phones to determine how they're getting around at any given

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moment—on foot, by car, or on a bus, train or airplane. As an algorithm tracks the transportation mode used and distance covered, the software uses that information to keep an up-to-the-minute record of the user's carbon emissions, displaying the results in both daily and weekly terms. In tests over the past year, Carbon Diem's accuracy ranged from 100 percent when people are on planes or trains to between 65 and 75 percent when they travel by bus, company founder Andreas Zachariah told The Guardian. Its software is already Nokia N-series compliant, and the company is currently seeking funding to speed up its development cycle for the BlackBerry platform.

In what ways will you embed ECO-METERING into your products or services in the next 12 months? ECO-CHINA Here comes NOW MADE IN CHINA with a green twist. Expect to hear from many more Chinese manufacturers hopping onto the green bandwagon this year. I’m not saying it’s going to be NOW MADE WELL IN CHINA, but still…

• Shenzhen-based automotive company BYD has announced plans to be the first to mass-market electric cars in China late 2009 or early 2010, with plans to ultimately market the cars in Europe and North America as well. The BYD e6 can go 300 km on a single full charge and will retail in China for CNY 200,000 (approximately USD 29,000). BYD’s gasoline-electric hybrid F6DM can be plugged into a home electric outlet and is capable of traveling 100 km with a full charge, and will retail for CNY 150,000 (approximately USD 22,000). Both BYD cars are safer than other electric cars because of the lithium ion battery technology BYD has developed, which uses iron phosphate as one of the main electrode materials to keep the batteries from exploding from overheating.

ECO-GENERORSITY The ECO trend lends itself well to combinations with other trends. So here’s one that should make some waves this year: ECO-GENEROSITY. Basically, once companies and consumers can no longer get away with anything less than totally offsetting their negative impact on the environment—and this will happen sooner rather than later—the only way to stand out, to gain any kind of respect in the eco-sphere, will be to go the extra mile and to be GENEROUS. From planting more trees than is strictly required, to cleaning up not only your own mess, but someone else's, too. Count on being sustainable or being carbon-neutral to soon be merely the starting point, not the end goal. So start thinking about how your brand can actually boost the environment instead of just

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limiting the damage. Call it PR or responsibility or both. As long as you’re going out of your way to be generous, everyone wins. Alongside those macro and micro consumer trends, and eco-friendly building, design and product introductions surrounding the sustainability of the green movement are the multifaceted groups driving and shaping this new evolution. Let’s first explore some changing habits among our target consumers. Consumerism 1.0 – 4.0 A refresher: when dealing with (and selling to) people, everything always comes back to status. In a traditional consumer society, he or she who consumes the most, the best, the coolest, the most expensive, the scarcest or the most popular goods, will typically also gain the most status.

While this will ring true this year for many consumers, 'old', mass-era status symbols, from the Audi R8 to Patek Philippe’s Nautilus watch, will no longer be every consumer's dream. After all, as mature consumer societies are increasingly dominated by (physical) abundance, by saturation, by experiences, by virtual worlds, by individualism, by participation, by feelings of guilt and concern about the side effects of unbridled consumption, status is to be had in so many more ways than leading a lifestyle centered on hoarding as much as possible. So different status spheres will co-exist: think of

this as Consumerism 1.0-4.0…

• Consumerism 1.0: Consumers buying and possessing more and/or better stuff than fellow consumers.

• Consumerism 2.0: Consumers driven by experiences instead of the fixed—and enjoying the

status derived from the stories they can tell afterwards, too. Freeing oneself from the hassles of permanent ownership and possessions is big for this one.

• Consumerism 3.0: Consumers participating, creating, developing skills and acquiring

knowledge. Status comes from finding an appreciative audience, impressed with what one knows and can create, instead of what one consumes or experiences.

• Consumerism 4.0: For some, giving, caring, contributing, being generous, and yes,

consuming less are the new status symbols. However, these various forms of consumerism are not exclusively tied to specific countries or regions, and most individuals adhere to more than one level, as they enjoy a variety of lifestyles,

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omething ing

activities and persuasions, which can be mixed and matched depending on the kind of recognition they’re looking for, and from which crowd or scene they’re hoping to get it. Individuals from the US to India will be into buying more, more, more for years to come, while simultaneously, other individuals from Belgium to South Korea will want to actively consume less. Worth keeping in mind when you’re busy coming up with the Next Big Thing! Nadaism The real-world examples in this presentation all have ‘something’. They are focused on real consumer needs and wants, they have been thought through, and reflect their creators’ enthusiasm. They stand out. They’re interesting. And so they should be, because there is so much clutter, such abundance, such an onslaught of smart professionals and brands from around the world having joined the game, that consumers are indifferent to any new product, service or experience that is average. Mediocre. Run of the mill. Me-too. A duplicate.

So the one danger that overrides all other threats this year: Nadaism, or the art of doing sthat’s just… ‘nothing’. Nothing special, nothloved, nothing remarkable, nothing exciting.Nada. We know you know this. But to prevent you from letting your standards slip or your attention waver remember: The sad lie of mediocrity -- “Doing 4% less does not get you 4% less. Doing 4% less may very well get you 95% less.

That's because almost good enough gets you nowhere. No sales, no votes, no customers. The sad lie of mediocrity is the mistaken belief that partial effort yields partial results. In fact, the results are usually totally out of proportion to the incremental effort. Big organizations have the most trouble with this, because they don't notice the correlation. It's hidden by their momentum and layers of bureaucracy. So a mediocre phone rep or a mediocre chef may not appear to be doing as much damage as they actually are. The flip side of this is that when you are at the top, the best in the world, the industry leader, a tiny increase in effort and quality can translate into huge gains. For a while, anyway.” This year, stand for something, and do it well. If you don’t, others will run with the prize. Good Times And yes, even with sliding currencies, financial meltdowns, plummeting or rocketing oil prices and other doom and gloom dominating the news, there is plenty of opportunity to delight, to care for, and to offer excellent service to consumers, as those consumers will certainly communicate no shortage of needs, wants and hopes. And they will absolutely remember the way you listened to and acted upon their wishes in tougher times. Also, while any time is a good time to focus on innovation, let’s not discount the creative and

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innovative juices that are released when budgets tighten or even dry up. Expect to see more (low-investment) innovations popping up in the next 12-18 months than ever before. The impetus to innovate really is every recession's silver lining. Now, let’s move on to how actually to apply trends to make sure good times are had by all. Apply! Applying trends isn’t that hard. Use this checklist, and ask yourself if a certain trend has the potential to:

1) Influence or shape your company's vision. 2) Inspire you to come up with a new business

concept, an entirely new venture, a new brand.

3) Spawn a new product, service or experience.

4) Help you speak the language of those consumers already ‘living’ the trend, i.e. Generation Green: show them you get it, show them you know what they’re excited about. Basically, marketing, advertising, or PR.

That's all there is to it. Seriously, though: don't be too earnest about the quest at hand; it's about coming up with exciting new products and services for your customers, nothing more and nothing less. Generation Green: Demographic Breakdown Let’s first start with the important demographic groups that make up what I like to call “Generation Green” and how they relate to the eco-friendly movement in your area of business including:

• Women (Female Fever!) o Chief Purchasing Officers of the Home o Millennial Moms o Single Females

• Emerging Homeowners • Ruppies

First we’ll start with the women -- or the nation’s “female fever” as we like to refer to it. Women Of the key consumer groups that make up Generation Green, women are considered one of the principal forces and influential buying groups. In terms of sheet volume, they account for about 51 percenti of the total U.S. population. They can be subdivided into three distinct groups in terms of age and characteristics, yet all share the same attitudinal traits that categorize them as Generation Green and include the:

• Chief Purchasing Officers of the Home

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SOUTHERN BUILDING SHOW 2009 Eco-Friendly Building Trends and How you can Sell and Market the Value of “Green”

• Millennial Moms • Single Females

What are today’s women like and what are their motivating factors and purchasing habits leading them to reduce their carbon footprints? Let’s begin with today’s Chief Purchasing Officers of the Home. The Chief Purchasing Officer of the Home Over a period of several weeks last year, my agency conducted research designed to further understand the characteristics and attitudinal traits of a mounting demographic—the educated, financially secure and ecologically aware female. After surveying a pool of noted kitchen and bath remodelers and designers, we found this demographic to be armed with financial power and knowledge, soon coining these women the Chief

Purchasing Officers, or, CPOs of the Home as they are responsible for about 80 percent of all household related purchasing decisions and control the family purse strings. As they also typically manage the majority of household finances, they are an essential portion of Generation Green and are a prime target for those of you in the residential building, design and remodeling industries. Needless to say, this group cannot be overlooked.

What CPOs are Really Like Our research found that today’s educated and multi-minding females are typically career driven, hard working and highly motivated. Despite the importance of her family life, the CPO’s career goals are a driving force behind her individuality. If the CPO is married, she often manages family finances and balances the checkbook. Overall, this group consists of empowered women who work long hours in their respective careers and have achieved success in both their personal and professional lives by juggling and balancing the two. They make time for the extras in their lives that are important to them and shed the bulk of other small distractions. CPOs make BIG purchasing decisions As these modern-day women enter middle age, they tend to revisit their idealist roots -- getting more involved in their home, family, and community including protecting the health of their families, children, and grandchildren with strides with a goal of achieving a healthier, cleaner way of life. They control both the purse strings and the wallet in the home and own the sweet spot of prime earning and spending power, estimated at an annual $1.4 trillion.

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SOUTHERN BUILDING SHOW 2009 Eco-Friendly Building Trends and How you can Sell and Market the Value of “Green”

Some further points to mention include that over the past three decades, women’s median income has risen about 63 percent compared to their male counterparts, up just 0.6 percent. Furthermore, in three out of 10 homes, the female head of house is now earning at least half, if not the majority, of the household income. Lucky for us, women are heavily immersed in the home building, design and remodeling marketplace, as they view their homes as their greatest investments with resale value at top of mind. What Makes Them Green Green isn’t just a color to today’s CPOs, it’s a way of life. They are concerned about the future of the world and their families’ health. Also, they have HUGE spending power so these women are the primary force driving up-and-coming pollution free and conservation products. They buy from companies that are socially responsible in their manufacturing, marketing, and product performance. In addition, they often consider a company’s sustainability and corporate philanthropy initiatives as foresight to what they offer the community as a whole and evaluate this factor when it comes to time of purchase. One example is upscale chain Whole Foods, where customers who bring their own bags are rewarded with "wooden nickels" that can be deposited in boxes assigned for donation to select local charities. Now that we’ve taken a look at the CPO of the Home, let’s find out more about today’s “Millennial Moms” taking center stage over yesteryear’s “Soccer Moms. Soccer Moms No More Gone are the days of the beloved soccer moms traveling to and from their children’s games and practices in the infamous minivan of the 90s. Replacing the former generation’s “soccer mom” stereotype is the latest group of Millennials who are finally of age to be mothers . . . and they are VERY different from their predecessors. Millennial Moms Embrace New Trends Today’s young moms have a more relaxed attitude about their children. Realizing that raising children isn’t always going to go smoothly, Millennial Moms are more natural in their approach. What’s notable is that they are also hanging on to their individual personalities. They are more interested in enjoying motherhood (and life) then being consumed by it. In this generational cohort you’ll see other interest groups pop up like “eco moms,” “yoga moms” and the famous “mommy bloggers” as these women strive to balance their environmental, social, political and economic minded lives and personal interests with motherhood and family. Millennial Moms have a unique outlook on life Speaking of balance, they experienced their own mothers juggling a demanding career and work life with no avail, as many of their parents’ marriages ended in divorce. This wasn’t always the case, yet as a result, Millennial Moms realized the limited obtainability of this “perfect” life, thus, are more apt to customize and tailor their own lives similar to the way they choose the music on their iPods.

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SOUTHERN BUILDING SHOW 2009 Eco-Friendly Building Trends and How you can Sell and Market the Value of “Green”

Technology also provides these Moms with added comfort and freedom as they realize they have convenience and control on their side. As a result, Millennial Moms tend to be more empowered then the mothers who preceded them due to a number of factors like the Internet, social media and instant access and a seemingly unlimited supply to information via the Web. Remember, Millennial Moms are also an integral part of the Emerging Homeowners group (which we will be talking about later) who thrive on community and a collaborative environment. Millennial Moms are the Real Deal To put it in perspective, according to a recent article in Brandweek,ii there are nine million Millennial Moms in the U.S. (U.S. Census Bureau). This group is still growing and has yet to hit its prime baby-making potential. Moms classified as Gen Y-ers or Millennials are also projected to have more kids than their Gen X and Boomer predecessors, and, at a younger age. For those of us in the home building and remodeling marketplace, this is one of the vital groups to watch. What Makes Them Green Millennial Moms are technological savvy, enabling them to participate and research environmentally-friendly brand and product groups from the comfort of their own homes and on their own time. They know what’s going on in the world around them and have unlimited access to information at the tip of their fingertips. As America’s youngest generation of mothers, Millennial Moms are increasingly aware of the green movement and what they can do to become a driving force and reduce their carbon footprints. Being eco-friendly also hits closer to home as their children and future grandchildren are the most likely to suffer the ill-effects of global warming, pollution, drought and an overall lack of the world’s precious natural resources. Single Females Last, but certainly not least, are today’s single females. In relation to the home marketplace, single female homeowners outnumber their male counterparts 2 to 1, proving women in all facets of life are a prime force to be reckoned with. Remember, single women aren’t synonymous with those women featured on “Sex and the City” who actually made being single the new trend. Single women come from all walks and stages of life including a divorcee, widow, single mother, or a first-time homebuyer just beginning to hit salary peaks.

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SOUTHERN BUILDING SHOW 2009 Eco-Friendly Building Trends and How you can Sell and Market the Value of “Green”

more, this group can be sub-defined as a Ct

Single Females: An Overlooked Opportunity Typically, young single women reside in their homes five years or less, creating an immense opportunity to service or sell to them repeatedly as they are buying new and existing homes and are

refurnishing and redecorating them continuously….a prime opportunity for builders, designers, remodelers and home product manufacturers. In fact, the number of singe females operating as the ‘head of household’ is increasing at a staggering rate. Additionally, the idea of three head-of-households living under one roof may become the new tradition. Think of it this way. One home may be comprised of a divorced wage earner, her daughter just boomeranging from college and a widowed mother, all under one roof. What’s PO, Millennial Mom, Ruppie, or an Emerging

Homeowner, so their approach to buying green products and support for the green movemencomes in many forms as we’ll get into later. Wrap-Up: Women and their Role in the Green Movement If you think women aren’t a force to be reckoned with, think again. Women spend about $5 trillion annually, which amounts to about half of the U.S. GDP. They are also buying 91 percent of all new homes. In terms of eco-friendly products, nearly 50 percent of women say they want “green” choices, 37 percent are more likely to pay attention to brands committed to environmental causes, and 25 percent of all products in a woman’s shopping cart are environmentally friendly.iii And remember, they are not just BUYING eco-friendly products and services for the home, they are DRIVING the green movement. They have the power to influence companies to participate in everything from reducing climate change, to restoring our water, air, and protecting the health of their families, children, and grandchildren. They can, and are, using their purse to pull builders, designers, architects, product manufacturers and service providers into a new, cleaner, and more environmentally-friendly direction. Women are past the point of letting providers tell them what to buy. They are telling YOU how to build, what to manufacture and how to run your business, based on the purchases they make every day. Respect modern-day women, in all facets of life, as the powerful buying force and influential part of Generation Green they have proven to be, and you will have an increased chance of expanding your business and exceeding your profit margins. Let’s now talk about today’s Emerging Homeowners. Emerging Homeowners—Gen X Generation X, born between the years 1965 and 1981, is an influential buying group about 51 million strong. Now between the ages of 27 and 43, this group spends $125 billion a year, with a total spending power of more than $200 billion annually.

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SOUTHERN BUILDING SHOW 2009 Eco-Friendly Building Trends and How you can Sell and Market the Value of “Green”

illennials

• Falling home prices age rates

r first-time

credit (up to $1,500) for

Millennials, Defining Traits ive, hopeful, confident, open-minded, influential, technologically

d,

hey have always felt preferred, needed and important. After all, their parents have been telling

Generation X—What This Group is Really Like Generation X can be defined as diverse, self-reliant and pragmatic. They judge “green” companies, brands, products and services by how well they honor their promises. They are highly visual and go the Internet for all research prior to making any definitive purchasing decisions. They are constantly every changing and upgrading and respond to a more stimulating and entertaining shopping experience. What Makes Them Green Generation X tends to view the green movement as their responsibility to guide their predecessors into a world where sustainable design and practices are possible, practical and necessary. Sustainability is a way of life for them, from simple recycling to incorporating solar power home systems and energy and water conserving products into their homes. To them, it’s not about companies talking the talk, but walking the talk. As this group is more adaptable and open to change, sustainability is just another step in creating a secure future by resolving the very issues we as a nation have created. As this group has children, they will have a huge affect on the future of the sustainability movement as their children and grandchildren will no doubt concern themselves with securing their own future while becoming members of the Green Generation. Emerging Homeowners—Gen Y A consumer group of some 80 million, the Millennials cover an age span of 21 years and include consumers in their upper 20s with money to spend. They are first-time homebuyers, and may be the most avid adapters of new technology and ecological products in the marketplace.

Due to new federal legislation passed this year, the Mare best poised to enter the lackluster housing and remodeling market with numerous unprecedented advantages:

• Historically low mortg• An enormous federal tax credit fo

homebuyers ($8,000) • A 30 percent energy tax

energy saving projects

Millennials are defined as inclusadvanced, community minded, achievement-oriented, sociable, optimistic, talented, highly educatecollaborative, motivated and resourceful. Tthem that their entire lives. By-products of their Boomer parents’ child-rearing styles, “You are special” was the mantra of Millennials’ youth. Since childbirth, they have been taught to be interdependent and to “start achieving now!” They’ve grown up participating in a variety of activities

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SOUTHERN BUILDING SHOW 2009 Eco-Friendly Building Trends and How you can Sell and Market the Value of “Green”

like sports, clubs and extracurricular activities. It seems as if they’ve been multitasking and overachieving since the moment they came out of the womb. Millennials, Defining Traits They are the first generation to grow up with the Internet and other forms of digital media. They care about the environment, are economic and political minded, and so they are very sophisticated in their approach to sustainability and the products they choose for their home. Because of their individuality, the green movement means different things to different members of this group and they like to actively discover ways to get involved in adapting their lifestyles to make eco-conscious choices. As members of this group can also be classified as Millennial Moms, they share similar traits. Do They REALLY Care About the Environment? Just Look at the Numbers Like Generation X, Generation Y also embraces sustainability as a way of life. According to Outlaw Consulting (a qualitative research firm focused on generation Y), this young demographic not only favors green products, but also company environmentally responsible messaging with green packaging, signage and marketing. As proof, one of their top five favorite brands is Whole Foods. In addition, many of the 84 percent of Generation Y actively concerned about the climate crisis stated that the green movement related directly to product purchases.iv Still not convinced? Do They REALLY Care About the Environment? Just Look at the Numbers

According to a recent poll from Maritz Research environmental messaging has a major impact on customer loyalty among Generation Y, with 50 percent of respondents saying it influences their shopping behavior.

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SOUTHERN BUILDING SHOW 2009 Eco-Friendly Building Trends and How you can Sell and Market the Value of “Green”

About 46 percent of respondents say they'd shop at a retailer more if it were environmentally friendly. And 47 percent say they're willing to pay more for environmentally friendly services, products or brands.v Convinced now? Millennials’ Home Design and Building Preferences Millennials favor value engineering and prefer green building and homes that use sustainable, recycled materials. They like color palettes of earth tones like blue sky, stone gray, greens, and slate blue. Recycled materials for their furnishings and buildings are critical to this group. For surfaces, consider bamboo, cork and concrete. They also tend to favor more resource-friendly home choices—contrasting the Boomers’ McMansions—and smaller spaces/cluster developments with areas that are more open and in locations closer to the action. As this group ages, the industry’s youngest homeowners will continue to have a tremendous impact on the eco-friendly home building, design and remodeling movement and will continue to play an even bigger role in shaping its future. Ruppies “Ruppies” (a new generational cohort identified as “retired urban professionals”) is a vast influential demographic with an estimated $2 trillion in annual spending power, controlling about 50 percent of all discretionary income. This group is about 40 million strong, comprised of affluent empty nesters born between the years of 1946 and 1964. In fact, every eight seconds a baby boomer turns 60 and becomes a new Ruppie candidate. Ruppies Set the New Standard for Post-Retirement What’s important about this group is that they’re certainly not going into retirement quietly. They are living their lives the way they want to, without any predisposition to typecasts, setting the new standard for life after retirement.

Motivated by a desire to stay young, healthy and fit, Ruppies remain active and an integral part of “what’s happening” in their communities. From an aspirational point of view, 20 percent of this audience claims that they are “much healthier than other people their same age.” And, they are urban making them an exciting market for a wide range of products for urban living previously targeted to the younger demos. These guys are not sitting on a porch in a retirement community in Florida.

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SOUTHERN BUILDING SHOW 2009 Eco-Friendly Building Trends and How you can Sell and Market the Value of “Green”

Ruppies are Engaged and Interactive The internet, not surprisingly, is contributing to this emerging consumer movement by breaking down barriers in much the same strategy as living in place designers. Web sites such as RetirementLivingTV.com redefine what it means to age gracefully by offering its visitors education on the best places to settle after retirement, health tips on staying young, as well as providing interactive games, blogs, forums and e-newsletters that allow Ruppies to stay connected with each other. This group is learning about green and changing lifelong practice to be a part of the environmental movement.

They want to be current on everything but attack new ideas in a detailed and thoughtful way, trying to understand the background essence before taking the plunge. Green may have only been the color of grass when they were 20 somethings but they can be the leaders for funding and sheer available manpower and energy who will be a driver for the future of the environmental attitude correction. Now that we know who Generation Green is, let’s

explore how they buy and how to market to them the value of green. Showing the Green Side Citing the study I mentioned earlier in the presentation, when surveying the women in our focus groups regarding the eco-friendly home products inquired about during our research, we found homeowners most interested in:

• Low-flow rate and touchless faucets • High-efficiency toilets • Countertops • Appliances • Energy-efficient roofing options • Flooring • Cabinetry made from recycled materials

Showing the Green Side In addition, to capture the most of Generation Green’s coveted income, focus on energy efficient dishwashers, cooktops, and refrigerators in the kitchen and water-conserving toilets and faucets in the bath. Also popular are solar hot water heating, water storage tanks, solar power systems, micro hydro systems, and grey or black water treatment systems. We’ve also found three other areas that are increasingly gaining popularity—solar passive options for the home, low VOC substrates and hybrid water heaters.

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SOUTHERN BUILDING SHOW 2009 Eco-Friendly Building Trends and How you can Sell and Market the Value of “Green”

Of the motivating factors associated with these types of eco-friendly products, energy savings, preservation of natural resources, look and feel of natural products and indoor air quality were ranked the highest in terms of importance. Interestingly, in a May 2008 Harris Interactive Study, three quarters of those 2,602 U.S. adults surveyed said “they were doing their part” to keep the environment in check. In addition, of those who checked off various personal actions they were taking to be more green compliant, 46 percent of those surveyed checked “installing resource-friendly appliances.” GENERATION GREEN: MOTIVATING FACTORS AND PURCHASING HABITS Cost The focus group participants in our study were all familiar with the Energy Star logo. When asked if they would pay more for an item that bears this logo, they indicated they may be willing to pay an incremental increase as long as the increase was no more than five percent. Cost is a main purchasing factor and must be in line with products not considered eco-friendly. CPOs, Millennial Moms, a majority of Single Females and Emerging Homeowners who are just beginning to hit salary peaks, tend to make decisions that affect their day to day lives, like decreasing their utility bills. Currently, homeowners are specifically looking for those products and services that provide energy and water efficient benefits, as they are also typically the most accessible. It’s also important to consider the tax benefits from the newly passed government legislation. As I’m sure you’re all well aware, the 30 percent energy tax credit (up to $1,500) includes energy saving projects completed in 2009 and 2010 such as replacement windows and doors, roofs, insulation and water heaters. With Ruppies, price is not always the determining factor. In fact, safety and convenience are more typically the underlying factors. Ruppies tend to have a more socially-conscious attitude, meaning the products they choose to buy and companies they purchase from must resonate with this outlook. Quality and price outweighs brand name Though the Women are sometimes brand-conscious, they do not forsake quality for brand name. The younger generations are also known for having little or no brand loyalty and tend to purchase items that fit their needs and fall within their budgets. Generation Green understands that a brand product does not necessarily equate to quality workmanship. Moreover, these green-minded individuals are price conscious and evaluate products’ perceived value prior to making a buying decision. Moreover, with Ruppies, their brand loyalty isn’t as high as you may presume. In fact, according to a recent article in Multichannel News, despite popular belief, this older cohort actually has LESS brand loyalty than their younger counterparts. So what gives? Well, customer service is vital to the long-term success of a brand in the eyes of Ruppies and if they don’t feel they’re receiving the highest quality service, they’ll abandon your brand with little afterthought.

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SOUTHERN BUILDING SHOW 2009 Eco-Friendly Building Trends and How you can Sell and Market the Value of “Green”

Combination of luxury and environmental-consciousness One participant in our focus group indicated she would be thrilled, from a style point of view, if there was a marrying of both worlds: luxury and eco-friendliness. Emerging Homeowners tend to have varying styles, but often will choose design and comfort above any other product classifications. Ruppies are probably the group with the largest discretionary income and choose products and services for the home that allow them the flexibility, comfort, convenience and performance they desire. HOW TO MARKET AND SELL TO GENERATION GREEN Go digital Generation Green is comprised of avid and savvy users of the Internet. They use this medium and find it extremely useful as a way to research and learn about things that interest them, compare information about product brands and pricing, or for generation information collecting. By nature, Generation Green is comprised of fervent information seekers. Remember, Millennials grew up with the Internet and do not know life without it or the wealth of information it provides. If you’re product or service isn’t searchable online, you won’t be on their radar. Furthermore, this group embarks on vigorous and thorough Web research to compare products, services, speak with the brands and builders themselves on social media applications like twitter and facebook, and sometimes even make final purchasing decisions online. You want to engage with Generation Green where they interact – the Internet and social media. Incorporate interactivity into your website to stimulate the online customer experience. Make purchasing, design, product choice and comparative information simple and accessible. Provide them with flexibility. Allow them to personalize their choices and become part of the product development. Show you care about their environmental concerns by talking about and demonstrating what your company is doing to make sustainability a reality. Brand Called You 2.0 The advances in technology have created increased opportunities for brands to become more engaged with their important customers – what I call, “brand called you 2.0.” Branding today is about being an interesting and desirable brand to other individuals. To peers. To friends of friends. It’s playlists and videos and pictures, it’s one’s musings and creative outbursts, it’s gaming scores, it’s preferences, it’s portfolios, it’s an entire personal branding campaign trying to impress everyone.

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SOUTHERN BUILDING SHOW 2009 Eco-Friendly Building Trends and How you can Sell and Market the Value of “Green”

Brand Called You 2.0 Some telling BRAND CALLED YOU 2.0 self-help examples:

• The Ziggs helps people manage their business and social lives online by building a virtual brand for them the same way one would manage a corporate brand. Users can enhance their brand by learning how to make themselves more ‘Googleable’, shaping their social image and managing their online relationships.

• Nokia’s lifeviNe allows

the user to log everything from pictures to music and video on a map and then share the entire journey online. It can be set to automatically upload and can be filtered by user, time or location. There's also an online widget that allows friends to track users’ activities on their Facebook page.

Be Informative (slide 31) Today’s consumers want to speak with knowledgeable brand representatives that can give them the information they are seeking -- whether it’s in-person, online or on the phone. Taking into consideration that Genereration is well-informed and technologically savyy, marketing materials and sales representatives must provide the information they seek or they will have a negative brand image or worse, go somewhere else where they can get the information they desire or answers to the questions they are asking. Limit the fluff Reach Generation Green with a sound, honest message that provides the details out up front in a concise manner. Hype is not what attracts this key audience. They are leading busy lives and do not have time for gimmicks, or false “green” claims/greenwashing. With this group marketing materials also need to be detailed and attractive, but it is the information available that will influence their decision to explore further. Generation Green appreciates personalized, information-based messages. The Web plays a critical role in the initial research phase with this group, but women often want to touch and feel the items before they move forward with any decision. The importance of quality in the messages you use to attract them and in the actual products themselves cannot be underestimated. Protect Your Assets

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SOUTHERN BUILDING SHOW 2009 Eco-Friendly Building Trends and How you can Sell and Market the Value of “Green”

Speaking of greenwashing, it’s not only important to resonate honest claims to consumers but also to yourself. Before you make the leap to earning points toward green home certifications by installing green products, it’s important to ask the tough questions up front. Here are 12 questionsvi to ask your product manufacturer before a lawyer is asking you them later:

1) What is this product supposed to do? 2) Can large quantities of this product be delivered in a timely manner? 3) How does the product compare to existing products? 4) Does it meet recognized industry performance standards? 5) Does the product meet building code requirements? 6) How long will the product last? 7) How difficult is it to repair the product? 8) Is there test data available? 9) Are there installation issues that need to be considered? 10) Are there any maintenance requirements and are they necessary to ensure long-term

performance? 11) How will the product perform if it gets wet? 12) What is the product’s performance history?

Communicate referrals from a trusted source When it comes to decision making about large-scale purchases, such as a household-related items, Generation Green prefers receiving input and advice from a trusted source such as family members, spouses, significant others or friends. Remember the video about “the future of advertising.” Also keep in mind that Generation Green is reliant on the Internet; therefore, creating an online community via your company Web site where current customers and prospects can converse about your company, product or service, will pay dividends in the future. Endorsements and customer testimonials also go a long way with this group, especially with the Women and Ruppies. CARE!/Be active within the green community When it comes to raw emotions towards brands, those emotions are often caused by not caring. And as anyone can attest, there are an awful lot of companies who stopped caring a long time ago. Sure, there’s hardly any company left that does not have some kind of ‘social responsibility’ program in place. But while supporting a faraway orphanage, making sure office coffee cups are recycled, and celebrating an annual ‘Diversity Day’ are all laudable causes, social responsibility is hardly ever more than the sum of a number of initiatives that at times can feel forced, a response to societal pressures instead of a holistic plan to be good, if not generous. And that doesn’t even include a plan dedicated to caring for customers. Now, with a full blown recession having set in, expect to hear even more about ‘caring’, as that’s what consumers and citizens will demand from governments and organizations: someone to take care of their jobs, their savings, their fellow citizens.

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SOUTHERN BUILDING SHOW 2009 Eco-Friendly Building Trends and How you can Sell and Market the Value of “Green”

And yet, in major markets, trust in government and the corporate world is at an all-time low (just one finding out of many, by Faith Popcorn: “In the US, three out of five (64%) people don’t trust the ethics of major corporations”). So everything seems aligned to make generosity (“liberality in giving or willingness to give”) a leading and inclusive brand theme this year. We’re talking truly living a generous, caring brand, generous to customers, generous to employees, generous to the environment, generous to social causes, and so on. As always, companies can learn from consumers (nothing new there), who started hopping on the generosity bandwagon quite a while ago. Especially in the online space, where giving is the new taking, and now sharing is the new giving. Last but not least, due to ongoing individualization, self-expression and the feeling (or the illusion) of being in control in the online world, consumers have never before considered themselves as important or as entitled as they do now. Be active within the green community. Join and support green-minded organizations, chapter associations and other national, regional and local community programs that have the same environmental goals as your company. Enhance your environmental and innovative product development by partnering with eco-minded industry organizations and charities. This is especially important with today’s Emerging Homeowners and Millennial Moms who are actively involved in social networking and blogging. Just being a member is not enough. This audience will see through that and consider it window dressing and not credible. Generation Green isn’t just looking to purchase a high-efficiency toilet; they are looking to support a remodeling contractor or plumbing manufacturer that offers the innovative new developments that benefit Mother Nature. Remember that an underlying commitment to the sustainability of the planet is just as important as saying your product or service is “green.” Create compelling, green focused marketing messages Generation Green is sharp, knowledgeable and not easily fooled. With the plethora of greenwashing companies, genuine green-minded businesses must be wary of how they present their marketing messages. It’s also important to convey clear reasons why your audiences should buy from you and align with your brand. Aligning with environmentally-conscious industry organizations is one way that allows you to demonstrate your commitment to the Earth’s natural resources, but also reinforces and validates your reputation within the green community. Generation Green isn’t just going to buy from companies that say they’re green; you need to prove it. Smarter Marketing The most important thing to remember when trying to reach Generation Green is to tailor your sales and marketing messaging to each individual demographic or generational cohort—whether it is Women, Emerging Homeowners, or Ruppies—or a combination of the above. Remember their connection to the environment and what drives them to remain a part of Generation Green.

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SOUTHERN BUILDING SHOW 2009 Eco-Friendly Building Trends and How you can Sell and Market the Value of “Green”

Understanding your key audiences -- what they are like, what motivates and attracts them to the eco-friendly movement, how they buy, and how to reach them with relevant and appropriate sales and marketing messages, will pay dividends in the end.

Thank You/Contact Me

Phone: 770-518-1000 x203 Email: [email protected]

Web: www.kleberandassociates.com (you can also download our white papers from here) Twitter: @stevekleber

LinkedIn: http://www.linkedin.com/in/ownerkleberandassociates Blog: www.kleber-marketing.com

Facebook: http://www.facebook.com/home.php?#/pages/Atlanta-GA/Kleber-Associates/63701448764?ref=ts

i http://quickfacts.census.gov/qfd/states/00000.html ii Brandweek, “The Post-Soccer Mom.” June 25, 2008 . iii http://www.thedailygreen.com/living-green/blogs/green-products-services/women-marketing-55051206 iv http://www.lansingstatejournal.com/apps/pbcs.dll/article?AID=/20080813/COMM11/808130390 v http://www.mediapost.com/publications/index.cfm?fuseaction=Articles.showArticleHomePage&art_aid=67815 vi http://www.ecohomemagazine.com/news/2009/may/12-tips-for-avoiding-green-product-litigation.aspx Other resources: Daily Dog. “Top Ad Execs: Green is So Last Year: Tenuous Environmental Ties Spark Consumer Skepticism as Advertisers, PR and the Media Struggle to Cope.” July 21, 2008. Multichannel News. “Generation Buy Fickle Yet Free Spending: TV Land Study.” July 7, 2008. Advertising Age. “What Obama Can Teach You About Millennial Marketing.” August 11, 2008.

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