The four Ds of cleantech marketing

In 2008, more than 400 cleantech companies were successful enough to collectively raise $8.4 billion (see Record 2008 for cleantech with $8.4B in investments). And large companies invested billions to re-fashion themselves.

Yet most of these companies will underperform their potential, often due to fundamental marketing and product issues.

With a tough economy, reduced oil prices and a 50 percent plunge in cleantech exchange-traded funds, the stakes are higher than ever to avoid strategic gaffes and to rise above the noise with investors, customers, partners, distribution, employees and community.

So how to companies, whether startups or large corporations, manage their cleantech evolutions and find success in bringing products to market and to profitable acceptance?

With respect and appreciation for the simplicity—and longevity—of McCarthy’s four Ps of the marketing mix, here are four Ds that are particularly important in today’s cleantech market:

• Differentiated offering and message

Look at any crowded cleantech sector—like solar—and see if you can tell one company from another. Hard, isn’t it? Thin-film, concentrators, inverters and renewable are all buzzwords and generalities that quickly blur.

Precision. Clarity. Simplicity. There's a premium on these issues in emerging markets with new product and service offerings. If people can’t understand what you really have—or you make them work extra hard to figure out why they should care—that’s sufficient reason for people to move on to something else, especially given tight budgets.

But the most important factor in your offering and messaging is differentiation. Many companies market solely on features, as if they have the only product in the category. But if you can’t clearly explain why your product meets your customer’s key needs better than the competition, you open the door for the other guy—even if his product is technically inferior.

• Drama in the story

Innovation doesn’t have to be boring. Find a way to connect to a bigger picture—both in reality, and emotionally. Tell a story that shows how you make a difference.

Over the last few years, at Serious Materials, I helped make drywall sexy—drywall, for goodness’ sake—by exposing its impact on the environment (see How green is your drywall?). Our EcoRock drywall product went on to win multiple awards, including Popular Science’s Green Product of the Year. We were voted the most promising technology of 2007 at the Cleantech Forum (see 2007 Cleantech Awards).

The story, or drama, should be an intrinsic part of developing the company or product idea.

The drama dimension is my personal favorite because it is seldom applied in high-tech. Drama represents a real outside-the-box opportunity to connect emotionally to multiple audiences. People became interested in EcoRock, not because it could do anything different than standard drywall, but because they connected with the adverse environmental effects of standard drywall and the value of a new approach. While purchasing and investment decisions are ostensibly rational, analytical processes, we’re all human—and we want to feel good about what we’re doing. There’s big upside potential for companies that can tap into this.

• Defining the right product

This is a marketing nuts-and-bolts item—or at least it should be. Too many companies fall in love with their presumed technology breakthroughs and forget to account for what motivates buyers.

For example, most would agree that the Prius was the first successful hybrid for reasons beyond its mileage ratings. A key feature of the product was its unusual shape, which led early buyers to make a readily-identifiable statement about themselves. Likewise, new green offerings can’t focus only on the green benefits while ignoring "fit and finish" issues such as installation, service, appearance, maintenance and status. Even the greenest product needs to pass a "what's in it for me" test.

• Delivering what you promise

This last point may seem obvious, but your credibility—whether you do what you say—is critical in tough times. "Vaporware" can be as dangerous for a company as greenhouse gases (see Kicks the butt of YOUR hybrid).

Be clear when you talk about vision versus shippable products. I like the management approach of Paul Detering, CEO of Tioga Energy, who pays attention to his company’s "do/say ratio." Show the same responsibility and sensibility as a public company. Do what you say.

Are there other factors? Sure. But a company needs good answers to marketing basics to persuade me (and many other investors) to think it will be a player. If you haven't addressed these four Ds yet, now is a good time to make sure you can get there.

A new discipline and rigor is needed to address this strategy. The authors of Billion-Dollar Lessons propose a "devil's advocate" process on key strategic decisions. A similar approach of aggressively "fire-hardening" your strategy with respect to the four Ds is beneficial.

Cleantech companies have got to connect. You advance the process with good application of the four Ds.

Steve Weiss advises cleantech companies and venture firms, including NewCycle Capital and Green Wireless Systems. For three years, Steve worked at Serious Materials as its marketing vice president. He has more than 25 years of marketing and executive experience. Contact him at weiss@greyheron.com or read more here.

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