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My other technology obsession -- alternative energy

I admit it: I'm a sucker for innovative, energy-saving products even if the savings never pay back the higher cost. But my reasons are more complex than showing off to others my environmental concern. And herein is a lesson for marketers about balancing rational and emotional messages to maximum effect.

Since it is Sunday, I will depart from my usual policy of only posting on topics relevant to marketing to vent about a New York Times article I read this week, "Why Appliances Buck the Trend and Cost More." But stick with me, there are marketing lessons here as well.

The author starts from an interesting premise, that while electronic gear packs more features every year, prices decline rapidly for PCs, flat panel TVs etc. "White goods" (refrigerators, washers/dryers, dishwashers, etc) have been increasing their prices while adding electronic controls, water/energy saving features, etc.

Why can one type of product get away with price increases while the other gets into a death-spiral of decreasing prices? The author comes to the conclusion that consumers are actually buying the styling and the look of the appliances, and justifying it with the savings, even though in many cases the higher price more that offsets any dollar savings from energy efficiency.

I can't argue with any of that. The line that ticks me off is when the author draws a parallel between the success of appliances like the high-style, high-end Whirlpool Duet and the Toyota Prius, he says: "The Prius is a feel-good car that runs on sanctimony as much as battery power." Reporter Damon Darlin gets it wrong on two counts:

1) Ask any automotive marketer and they'll tell you that every car purchase is fueled by some emotional reason, and not by gasoline. Why do we never see car reviews that deride Ford F150  or Nissan Titan purchases as a "feel macho car that runs on male insecurity" or a Volvo purchase as a "feel safe car that runs on family protection paranoia"?

2) As a 2002 Prius owner, there is a deeper message we are trying to tell the auto industry: we, the car-driving public, want to see change. We understand the impact our use of the automobile has on the planet, our national security, and the global geopolitical situation, but in our society a car is a necessity. Car makers must get over their thinking that increasing the cost of the automobile will cut into sales -- that only applies to indistinguishable and undistinguised run-of-the-mill models that make up the bulk of their boring product lines. If they come up with something truly unique, with real benefits, there is a market for it.

Since Prius sales have gone from 20,000 to 200,000, there are now 7 other hybrid models on the market, and even GM is getting into the market this statement is starting to have the desired impact. Not to mention the talk of "plug-in hybrids", flexible fuel vehicles, biodiesel, etc. I'd say the automakers are not hearing the sounds of sanctimony, but of cash registers ringing.

Since the days of the early '90's, environmentally-responsible products have failed to go mainstream based on their earth-saving benefits alone: think recycled content paper towels, organic foods, compact fluorescent light bulbs. If it takes wrapping these features in attractive styling and positioning the whole thing as upscale, cutting edge technology, so be it. Just get more of the products into use.

Enough for the Sunday sermon, back to the marketing lesson.

First, truly new, innovative products have talk value. If I'm excited about the fact my washing machine uses 1/3 the water of a normal machine, I'll tell people. I told Pete Blackshaw about my Prius and he went out and bought a Honda Civic Hybrid (see our WOMMA presentation, "A Tale of Two Hybrids"). In the new world of WOM, consumer-generated media, etc. be sure your marketing plan incorporates strategies and tactics that leverage this talk value to amplify your product's differentiation.

Second, consumers do not make a simple, rational decisions to buy things, even such mundane items as appliances. Emotional needs are the real drivers, but people don't want to feel ruled by their whims; they want to be able to explain a purchase rationally. When you find that combination that drives sales in your product category, you'll have a winner.

PS: I also have solar photovoltaic panels on my house, the Miele front-loading, low-water/low-energy washing machine, and all Energy Star appliances. If you want to thoroughly understand my reasons for being environmentally conscious, read Paul Hawken's "The Ecology of Commerce."

Posted by Jim Nail on March 12, 2006 at 06:47 AM | Email this post Permalink

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Comments

Hello, is the Manuel from Austria and your informative Blog read, after more briefly thinking break can I that agree.

beautiful Oestern still Manuel

Posted by: Manuel | Apr 15, 2006 4:39:42 PM

That´s in Europe/Austria normaly you can build a house which produced energy. At sunny days the house delivery energy at the public power network. And in winter the heating does work with earth-thermal. A completly autarkic system. This kind of building can afford 50% of the population.

Posted by: Rotolog | Jul 21, 2006 4:43:33 AM

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