Abstract

Green marketing is a phenomenon which has developed particular important in the modern
market. This concept hasenabled for the re-marketing and packaging of existing products
which already adhere to such guidelines. Additionally, the development of green marketing
has opened the door of opportunity for companies to co-brand their products into separate
line, lauding the green-friendliness of some while ignoring that of others. Such
marketing techniques will be explained as a direct result of movement inthe minds of the
consumer market. As a result of thisbusinesses have increased their rate of targeting
consumerswho are concerned about the environment. These sameconsumers through their
concern are interested in integrating environmental issues into their purchasing decisions
throughtheir incorporation into the process and content of themarketing strategy for
whatever product may be required.This paper discusses how businesses have increased
their rate of targeting green consumers, those who are concerned about the environment and
allow it to affect their purchasing decisions. The paper identifies the three particular
segmentsof green consumers and explores the challenges and opportunities businesses have
with green marketing. The paper also examines the present trends of green marketing
in India and describes the reason why companies are adopting it and future of green
marketing and concludes that greenmarketing is something that will continuously grow in
both practice and demand.
Key Words: -
Green Product, Recyclable, Environmentally safe, Eco Friendly.
INTRODUCTION
According to the American Marketing Association, greenmarketing is the marketing of
products that are presumed to be environmentally safe. Thus green marketing incorporates
a broad range of activities, including product modification,changes to the production process,
packaging changes, aswell as modifying advertising. Yet defining green marketingis not a
simple task where several meanings intersect andcontradict each other; an example of this
will be the existenceof varying social, environmental and retail definitionsattached to this
term. Other similar terms used areEnvironmental Marketing and Ecological Marketing.
Thus"Green Marketing" refers to holistic marketing conceptwherein the production,
marketing consumption an disposalof products and services happen in a manner that is
lessdetrimental to the environment with growing awarenessabout the implications of global
warming, non-biodegradablesolid waste, harmful impact of pollutants etc., both marketersand
consumers are becoming increasingly sensitive to theneed for switch in to green products and
services. While theshift to "green" may appear to be expensive in the short term,it will
definitely prove to be indispensable and advantageous,cost-wise too, in the long run.Pride
and Ferrell (1993) Green marketing, also alternativelyknown as environmental marketing and
sustainablemarketing, refers to an organization's efforts at designing, promoting, pricing and
distributing products that will notharm the environmentPolonsky (1994) defines green
marketing as .all activitiesdesigned to generate and facilitate any exchanges intended tosatisfy
human needs or wants, such that the satisfaction of these needs and wants occurs, with
minimal detrimentalimpact on the natural environment.Elkington (1994: 93) defines green
consumer as one whoavoids products that are likely to endanger the health of theconsumer or
others; cause significant damage to theenvironment during manufacture, use or disposal;
consume adisproportionate amount of energy; cause unnecessary waste;use materials derived
from threatened species or environments; involve unnecessary use of, or cruelty toanimals;
adversely affect other countries.
WHY GREEN MARKETING?
It is really scary to read these pieces of information as reportedin the Times recently: "Air
pollution damage to people, cropsand wildlife in US. Total tens of billions of dollars each
year"."More than 12 other studies in the US, Brazil Europe, Mexico,South Korea and Taiwan
have established links between air pollutants and low birth weight premature birth still birth
andinfant death". As resources are limited and human wants areunlimited, it is important for
the marketers to utilize theresources efficiently without waste as well as to achieve
theorganization's objective. So green marketing is inevitable.There is growing interest among
the consumers all over theworld regarding protection of environment. Worldwideevidence
indicates people are concerned about theenvironment and are changing their behavior. As a
result of this, green marketing has emerged which speaks for growingmarket for sustainable
and socially responsible products andservices.Thus the growing awareness among the
consumers all over the world regarding protection of the environment in whichthey live,
People do want to bequeath a clean earth to their offspring. Various studies by
environmentalists indicate that people are concerned about the environment and are
changingtheir behavior pattern so as to be less hostile towards it. Nowwe see that most of the
consumers, both individual andindustrial, are becoming more concerned about environment-
friendly products.Green marketing was given prominence in the late 1980s and1990s after the
proceedings of the first workshop onEcological marketing held in Austin, Texas (US), in
1975.Several books on green marketing began to be publishedthereafter. According to the
Joel makeover (a writer, speaker and strategist on clean technology and green
marketing),green marketing faces a lot of challenges because of lack of standards and public
consensus to what constitutes "Green".The green marketing has evolved over a period of
time.According to Peattie (2001), the evolution of green marketinghas three phases. First
phase was termed as "Ecological"green marketing, and during this period all
marketingactivities were concerned to help environment problems and provide remedies for
environmental problems. Second phasewas "Environmental" green marketing and the focus
shiftedon clean technology that involved designing of innovativenew products, which take
care of pollution and waste issues.Third phase was "Sustainable" green marketing. It came
into prominence in the late 1990s and early 2000.
GREEN PRODUCTS AND ITS CHARACTERISTICS
The products those are manufactured through greentechnology and that caused no
environmental hazards arecalled green products. Promotion of green technology andgreen
products is necessary for conservation of naturalresources and sustainable development. We
can define green products by following measures:

Products those are originally grown,

Products those are recyclable, reusable and biodegra-dable,

Products with natural ingredients,

Products containing recycled contents, non-toxicchemical,

Products contents under approved chemical,

Products that do not harm or pollute the environment,

Products that will not be tested on animals,

Products that have eco-friendly packaging i.e. reusable,refillable containers etc.
NEED OF GREEN MARKETING :AN ANTHROPOLOGICAL VIEW
Issues like Global warming and depletion of ozone umbrellaare the main for the healthy
survival. Every person rich or poor would be interested in quality life with full of health
andvigor and so would the corporate class. Financial gain andeconomic profit is the main aim
of any corporate business.But harm to environment cost by sustain business across theglobe
is realized now though off late. This sense is buildingcorporate citizenship in the business
class. So greenmarketing by the business class is still in the selfishanthological perspective of
long term sustainable businessand to please the consumer and obtain the license by
thegoverning body. Industries in Asian countries are catching theneed of green marketing
from the developed countries but stillthere is a wide gap between their understanding
andimplementation.
CHALLENGES IN GREEN MARKETING

Need for Standardization
It is found that only 5% of the marketing messages fromGreen campaigns are entirely true
and there is a lack of standardization to authenticate these claims. There is nostandardization
to authenticate these claims. There is nostandardization currently in place to certify a product
asorganic. Unless some regulatory bodies are involved in providing the certifications there
will not be any verifiablemeans. A standard quality control board needs to be in placefor such
labeling and licensing.
New Concept
Indian literate and urban consumer is getting more awareabout the merits of Green products.
But it is still a newconcept for the masses. The consumer needs to be educatedand made
aware of the environmental threats. The new greenmovements need to reach the masses and
that will take a lot of time and effort. By India's ayurvedic heritage, Indianconsumers do
appreciate the importance of using natural andherbal beauty products. Indian consumer is
exposed tohealthy living lifestyles such as yoga and natural foodconsumption. In those
aspects the consumer is already awareand will be inclined to accept the green products.
Patience and Perseverance
The investors and corporate need to view the environment as amajor long-term investment
opportunity, the marketers needto look at the long-term benefits from this new
greenmovement. It will require a lot of patience and no immediateresults. Since it is a new
concept and idea, it will have its ownacceptance period.
Avoiding Green Myopia
The first rule of green marketing is focusing on customer benefits i.e. the primary reason
why consumers buy certain products in the first place. Do this right, and motivateconsumers
to switch brands or even pay a premium for thegreener alternative. It is not going to help if a
product isdeveloped which is absolutely green in various aspects butdoes not pass the
customer satisfaction criteria. This will leadto green myopia. Also if the green products are
priced veryhigh then again it will lose its market acceptability.
GOLDEN RULES OF GREEN MARKETING1. Know you're Customer :
Make sure that the consumer isaware of and concerned about the issues that your
productattempts to address, (Whirlpool learned the hard way thatconsumers wouldn't pay a
premium for a CFC-free refrigerator because consumers dint know what CFCswere.).
Reassure the Buyer:
Consumers must be made to believe that the product performs the job it's supposed todo-they
won't forego product quality in the name of theenvironment.5.
Consider Your Pricing:
If you're charging a premium for your product-and many environmentally preferable products
cost more due to economies of scale and use of higher-quality ingredients-make sure those
consumerscan afford the premium and feel it's worth it.6.7.
Thus leading brands should recognize that consumerexpectations have changed:
It is not enough for acompany to green its products; consumers expect the products that they
purchase pocket friendly and also tohelp reduce the environmental impact in their own
livestoo.
GREEN MARKETING ADOPTS BY THE FARMS
Green marketing has been widely adopted by the firmsworldwide and the following are the
possible reasons cited for this wide adoption:
1.Opportunities -
As demand changes, many firms seethese changes as an opportunity to exploit and have
acompetitive advantage over firms marketing non-environmentally responsible alternatives.
Someexamples of firms who have strived to become moreenvironmentally responsible, in an
attempt to better satisfy their consumer needs are:

McDonald's replaced its clam shell packaging withwaxed paper because of increased
consumer concernrelating to polystyrene production and Ozonedepletion.

Tuna manufacturers modified their fishingtechniques because of the increased concern
over driftnet fishing, and the resulting death of dolphins.
Educating your customers
:
isn't just a matter of letting people know you're doing whatever you're doing to protect the
environment, but also a matter of letting themknow why it matters. Otherwise, for a
significant portionof your target market, it's a case of "So what?" and your green marketing
campaign goes nowhere.
Being Genuine & Transparent:

means that
a)
you areactually doing what you claim to be doing in your greenmarketing campaign and
b)
the rest of your business policies are consistent with whatever you are doing
that'senvironmentally friendly. Both these conditions have to be met for your business to
establish the kind of environmental credentials that will allow a greenmarketing campaign to
succeed.
Giving your customers an opportunity to participate
:means personalizing the benefits of your environ-mentally friendly actions, normally
through letting thecustomer take part in positive environmental action.

Xerox introduced a "high quality" recycled photocopier paper in an attempt to satisfy
thedemands of firms for less environmentally harmful products.
2. Government Pressure
- As with all marketing relatedactivities, governments want to "protect" consumer andsociety;
this protection has significant green marketingimplications. Government regulations relating
toenvironmental marketing are designed to protectconsumers in several ways,1.Reduce
production of harmful goods or by-productsModify consumer and industry's use
and/or consumption of harmful goods2.Ensure that all types of consumers have the ability
toevaluate the environmental composition of goods.Government establish regulations
designed tocontrol the amount of hazardous wastes produced by firms.
3. Competitive Pressure -
Another major force in theenvironmental marketing area has been firms' desire tomaintain
their competitive position. In many cases firmsobserve competitors promoting their
environmental behaviors and attempt to emulate this behavior. In someinstances this
competitive pressure has caused an entireindustry to modify and thus reduce its
detrimentalenvironmental behavior. For example when one tunamanufacture stopped using
driftnets the others followedsuit.
4. Social Responsibility
- Many firms are beginning torealize that they are members of the wider communityand
therefore must behave in an environmentallyresponsible fashion. This translates into firms
that believe they must achieve environmental objectives aswell as profit related objectives.
This results inenvironmental issues being integrated into the firm'scorporate culture. There
are examples of firms adopting both strategies.
An example
of a firm that does not promote itsenvironmental initiative is Coca-Cola. They haveinvested
large sums of money in various recyclingactivities, as well as having modified their
packaging tominimize its environmental impact. While beingconcerned about the
environment, Coke has not used thisconcern as a marketing tool. Thus many consumers
maynot realize that Coke is a very environmentallycommitted organization. Another firm
who is veryenvironmentally responsible but does not promote thisfact, at least outside the
organization, is Walt DisneyWorld (WDW). WDW has an extensive wastemanagement
program and infrastructure in place, yetthese facilities are not highlighted in their general
tourist promotional activities.
5. Cost of Profit Issues -
Firms may also use greenmarketing in an attempt to address cost or profit relatedissues.
Disposing of environmentally harmful by- products, such as polychlorinated biphenyl
(PCB)contaminated oil are becoming increasingly costly and insome cases difficult.
Therefore firms that can reduceharmful wastes may incur substantial cost savings.
Whenattempting to minimize waste, firms are often forced tore-examine their production
processes. In these casesthey often develop more effective production processesthat not only
reduce waste, but reduce the need for someraw materials. This serves as a double cost
savings, since both waste and raw material are reduced. In other casesfirms attempt to find
end - of - pipe solutions, instead of minimizing waste. In these situations firms try to
findmarkets or uses for their waste materials, where onefirm's waste becomes another firm's
input of production.One Australian example of this is a firm who producesacidic waste water
as a by-product of production and sellsit to a firm involved in neutralizing base materials.
SOME CASES
Interestingly, green marketing continues to be an issue of
5
global interest. In fact, Google Trends reports that, on arelative basis, more searches for
green marketingoriginated from India than from any other country.
RankCountry
1.India2.UK 3.US4.Thailand5.Australia6.Canada7.ChinaMany companies are adopting green
for capturing marketopportunity of green marketing some cases
EXAMPLE 1 :

Best Green IT Project: State Bank of India: Green IT@SBI
By using eco and power friendly equipment in its 10,000 new ATMs, the banking giant has
not only saved power costs and earned carbon credits, but also set the right example
for others to follow.
SBI is also entered into green service known as GreenChannel Counter. SBI is providing
many services like; paper less banking, no deposit slip, no withdrawal form, no checks,no
money transactions form all these transaction are donethrough SBI shopping & ATM cards.
State Bank of India turnsto wind energy to reduce emissions:

The State Bank of India became the first Indian bank to harness wind energy through a15-
megawatt wind farm developed by Suzlon Energy. Thewind farm located in Coimbatore uses
10 Suzlon windturbines, each with a capacity of 1.5 MW. The wind farm isspread across
three states Tamil Nadu, with 4.5 MW of windcapacity; Maharashtra, with 9 MW; and
Gujarat, with 1.5MW. The wind project is the first step in the State Bank of India's green
banking program dedicated to the reduction of its carbon footprint and promotion of energy
efficient processes, especially among the bank's clients.
EXAMPLE 2 : Lead Free Paints from Kansai Nerolac
Kansai Nerolac Paints Ltd. has always been committed to thewelfare of society and
environment and as a responsiblecorporate has always taken initiatives in the areas of
health,education, community development and environment preservation.Kansai Nerolac has
worked on removing hazardous heavymetals from their paints. The hazardous heavy metals
likelead, mercury, chromium, arsenic and antimony can haveadverse effects on humans. Lead
in paints especially posesdanger to human health where it can cause damage to
Central Nervous System, kidney and reproductive system. Childrenare more prone to lead
poisoning leading to lower intelligencelevels and memory loss.
EXAMPLE 3 :

Indian Oil's Green AgendaGreen Initiatives

Indian Oil is fully geared to meet the target of reachingEURO-III compliant fuels to all parts
of the country bythe year 2010; major cities will upgrade to Euro-IVcompliant fuels by that
time.

Indian Oil has invested about Rs. 7,000 crore so far ingreen fuel projects at its refineries;
ongoing projectsaccount for a further Rs. 5,000 crore.

Motor Spirit Quality Improvement Unit commissioned atMathura Refinery; similar units are
coming up at threemore refineries.

Diesel quality improvement facilities in place at all sevenIndian Oil refineries, several more
green fuel projects areunder implementation or on the anvil.

The R&D Centre of Indian Oil is engaged in theformulations of eco-friendly biodegradable
lubeformulations.

The Centre has been certified under ISO-14000:1996 for environment management systems.
GREEN FUEL ALTERNATIVES
In the country's pursuit of alternative sources of energy,Indian Oil is focusing on CNG
(compressed natural gas),Auto gas (LPG), ethanol blended petrol, bio-diesel, andHydrogen
energy.
EXAMPLE 4 :

India's 1st Green Stadium
The Thyagaraja Stadium stands tall in the quiet residentialcolony behind the Capital's famous
INA Market. It was jointlydedicated by Union Sports Minister MS Gill and Chief Minister
Sheila Dikshit on Friday.
Dikshit said that the stadium is going to be the first greenstadium in India, which has taken a
series of steps to ensureenergy conservation and this stadium has been constructed as per the
green building concept with eco-friendly materials.
EXAMPLE 5:

Eco-friendly Rickshaws before CWG
Chief minister Shiela Dikshit launched on Tuesday a battery-operated rickshaw, E-rick,
sponsored by a cellular services provider, to promote eco-friendly transportation in the
cityahead of the Commonwealth Games.
EXAMPLE 6 : Wipro Green It.
Wipro can do for you in your quest for a sustainable tomorrow- reduce costs, reduce your
carbon footprints and becomemore efficient - all while saving the environment.
Wipro's Green Machines (In India Only)
Wipro Infotech was India's first company to launchenvironment friendly computer
peripherals. For the Indianmarket, Wipro has launched a new range of desktops andlaptops
called Wipro Greenware. These products are RoHS(Restriction of Hazardous Substances)
compliant thusreducing e-waste in the environment.
EXAMPLE 7 : Agartala to be India's first Green City
Tripura Sunday announced plans to make all public and private vehicles in Agartala run on
compressed natural gas(CNG) by 2013, thus making the capital India's first
greencity.Tripura Natural Gas Co Ltd (TNGCL), a joint venture of theGas Authority of
India Ltd (GAIL) and the Tripura and Assamgovernments, has undertaken a project to supply
CNG to all private and government vehicles.CNG will also be availableto those now using
electricity, petrol and diesel to run variousmachineries.TNGCL chairman Pabitra Kar told
reporters. He said: Thecompany will soon provide PNG connections to 10,000 newdomestic
consumers in the city and outskirts. Agartala will bethe first city in India within the next three
years to become agreen city.
EXAMPLE 8 : Going Green: Tata's new mantra
The ideal global benchmark though is 1.5. Tata Motors issetting up an eco-friendly
showroom using natural buildingmaterial for its flooring and energy efficient lights.
TataMotors said the project is at a preliminary stage.The Indian Hotels Company, which runs
the Taj chain, is inthe process of creating eco rooms which will have energy-efficient mini
bars, organic bed linen and napkins made fromrecycled paper. But there won't be any carpets
since chemicalsare used to clean those. And when it comes to illumination, therooms will
have CFLs or LEDs. About 5% of the total roomsat a Taj hotel would sport a chic eco-room
design.One of the most interesting innovations has come in the formof a biogas-based power
plant at Taj Green Cove in Kovalam,which uses the waste generated at the hotel to meet its
cookingrequirements. Another eco-friendly consumer product that isin the works is Indica
EV, an electric car that will run on polymer lithium ion batteries. Tata Motors plans to
introducethe Indica EV in select European markets this year.
PRESENT TRENDS IN GREENMARKETING IN INDIA
Organizations are Perceive Environmental marketing asan Opportunity to achieve its
objectives. Firms haverealized that consumers prefer products that do not harmthe natural
environment as also the human health. Firmsmarketing such green products are preferred
over theothers not doing so and thus develop a competitiveadvantage, simultaneously
meeting their businessobjectives.Organizations believe they have a moral obligation to
bemore socially responsible.

This is in keeping with the philosophy of CSR which has been successfully adopted by many
business houses to improve their corporateimage. Firms in this situation can take two
approaches:

Use the fact that they are environmentallyresponsible as a marketing tool.

Become responsible without prompting this fact.Governmental Bodies are forcing Firms to
BecomeMore Responsible.

In most cases the government forcesthe firm to adopt policy which protects the interests
of the consumers. It does so in following ways:

Reduce production of harmful goods or by products

Modify consumer and industry's use and /or consumption of harmful goods; or

Ensure that all types of consumers have the abilityto evaluate the environmental composition
of goods.Competitors' Environmental Activities Pressure Firmsto change their Environmental
Marketing Activities.

Inorder to get even with competitors claim to beingenvironmentally friendly, firms change
over to greenmarketing. Result is green marketing percolates entireindustry.Cost Factors
Associated With Waste Disposal or Reductions in Material Usage Forces Firms to
Modifytheir Behavior. With cost cutting becoming part of thestrategy of the firms it adopts
green marketing in relationto these activities. It may pursue these as follows:

A Firm develops a technology for reducing wasteand sells it to other firms.

A waste recycling or removal industry develops.
THE FUTURE OF GREEN MARKETING
There are many lessons to be learned to be learned to avoidgreen marketing myopia, the short
version of all this is thateffective green marketing requires applying good
marketing principles to make green products desirable for consumers.The question that
remains, however, is, what is greenmarketing's future? Business scholars have viewed it as
afringe topic, given that environmentalism's acceptance of limits and conservation does not
mesh well with marketing'straditional axioms of give customer what they want andsell as
much as you can.Evidence indicates that successfulgreen products have avoided green
marketing myopia byFollowing three important principles:
CONSUMER VALUE POSITIONING

Design environmental products to perform as well as (or better than) alternatives.

Promote and deliver the consumer desired value of environmental products and target
relevant consumer market segments.

Broaden mainstream appeal by bundling consumer desired value into environmental
products.
CALIBRATION OF CONSUMER KNOWLEDGE

Educate consumers with marketing messages thatconnect environmental attributes with
desired consumer value.

Frame environmental product attributes as solutionsfor consumer needs.

Create engaging and educational internet sites aboutenvironmental products desired
consumer value.
CREDIBILITY OF PRODUCT CLAIM

Employ environmental product and consumer benefitclaims that are specific and meaningful.

Procure product endorsements or eco-certifications fromtrustworthy third parties and educate
consumers aboutthe meaning behind those endorsements and eco-certifications.

Encourage consumer evangelism via consumers socialand internet communication network
with compelling,interesting and entertaining information aboutenvironmental products.
CONCLUSION
Now this is the right time to select Green Marketingglobally. It will come with drastic
change in the world of business if all nations will make strict roles because greenmarketing
is essential to save world from pollution. From the business point of view because a clever
marketer is one whonot only convinces the consumer, but also involves theconsumer in
marketing his product. Green marketing shouldnot be considered as just one more approach
to marketing, buthas to be pursued with much greater vigor, as it has anenvironmental and
social dimension to it. With the threat of global warming looming large, it is extremely
important thatgreen marketing becomes the norm rather than an exceptionor just a fad.
Recycling of paper, metals, plastics, etc., in a safeand environmentally harmless manner
should become muchmore systematized and universal. It has to become the generalnorm to
use energy-efficient lamps and other electrical goods.Marketers also have the responsibility
to make the consumersunderstand the need for and benefits of green products ascompared to
non-green ones. In green marketing, consumersare willing to pay more to maintain a cleaner
and greener environment. Finally, consumers, industrial buyers andsuppliers need to
pressurize effects on minimize the negativeeffects on the environment-friendly. Green
marketingassumes even more importance and relevance in developingcountries like India.

REFERENCES
1.J.A Ottman,. et al, "Avoiding Green Marketing Myopia",Environment, Vol-48, June-
20062.www.greenmarketing.net/stratergic.html3.www.epa.qld.gov.au/sustainable_
industries4.www.greenpeace.org/international5.www.google.com6.http://www.iocl.com/Abo
utUs/environment%28GFA%29.aspx
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INTRODUCTION
Although environmental issues influence all human activities, few academic disciplines have
integrated green issues into their literature. This is especially true of marketing. As society
becomes more concerned with the natural environment, businesses have begun to modify
their behavior in an attempt to address society's "new" concerns. Some businesses have been
quick to accept concepts like environmental management systems and waste minimization,
and have integrated environmental issues into all organizational activities. Some evidence of
this is the development of journals such as "Business Strategy and the Environment" and
"Greener Management International," which are specifically designed to disseminate research
relating to business' environmental behavior.
One business area where environmental issues have received a great deal of discussion in the
popular and professional press is marketing. Terms like "Green Marketing" and
"Environmental Marketing" appear frequently in the popular press. Many governments
around the world have become so concerned about green marketing activities that they have
attempted to regulate them (Polonsky 1994a). For example, in the United States (US) the
Federal Trade Commission and the National Association of Attorneys-General have
developed extensive documents examining green marketing issues [FTC 1991, NAAG 1990].
One of the biggest problems with the green marketing area is that there has been little attempt
to academically examine environmental or green marketing. While some literature does exist
[Carlson, Grove and Kangun 1993, Davis 1992, Davis 1993], it comes from divergent
perspectives.
This paper will attempt 1) to introduce the terms and concepts of green marketing; 2) briefly
discuss why going green is important; 3) examine some of the reason that organizations are
adopting a green marketing philosophy; and 4) mention some of the problems with green
marketing.
WHAT IS GREEN MARKETING
Unfortunately, a majority of people believe that green marketing refers solely to the
promotion or advertising of products with environmental characteristics. Terms like
Phosphate Free, Recyclable, Refillable, Ozone Friendly, and Environmentally Friendly are
some of the things consumers most often associate with green marketing. While these terms
are green marketing claims, in general green marketing is a much broader concept, one that
can be applied to consumer goods, industrial goods and even services. For example, around
the world there are resorts that are beginning to promote themselves as "ecotourist" facilities,
i.e., facilities that "specialize" in experiencing nature or operating in a fashion that minimizes
their environmental impact [May 1991, Ingram and Durst 1989, Troumbis 1991].
Thus green marketing incorporates a broad range of activities, including product
modification, changes to the production process, packaging changes, as well as modifying
advertising. Yet defining green marketing is not a simple task. Indeed the terminology used in
this area has varied, it includes: Green Marketing, Environmental Marketing and Ecological
Marketing. While green marketing came into prominence in the late 1980s and early 1990s, it
was first discussed much earlier. The American Marketing Association (AMA) held the first
workshop on "Ecological Marketing" in 1975. The proceedings of this workshop resulted in
one of the first books on green marketing entitled "Ecological Marketing" [Henion and
Kinnear 1976a]. Since that time a number of other books on the topic have been published
[Charter 1992, Coddington 1993, Ottman 1993].
The AMA workshop attempted to bring together academics, practitioners, and public policy
makers to examine marketing's impact on the natural environment. At this workshop
ecological marketing was defined as:
"the study of the positive and negative aspects of marketing activities on pollution, energy
depletion and nonenergy resource depletion." [Henion and Kinnear 1976b, 1]
This early definition has three key components,
1. it is a subset of the overall marketing activity;
2. it examines both the positive and negative activities; and
3. a narrow range of environmental issues are examined.
While this definition is a useful starting point, to be comprehensive green marketing needs to
be more broadly defined. Before providing an alternative definition it should be noted that no
one definition or terminology has been universally accepted. This lack of consistency is a
large part of the problem, for how can an issue be evaluated if all researchers have a different
perception of what they are researching. The following definition is much broader than those
of other researchers and it encompasses all major components of other definitions. My
definition is:
"Green or Environmental Marketing consists of all activities designed to generate and
facilitate any exchanges intended to satisfy human needs or wants, such that the satisfaction
of these needs and wants occurs, with minimal detrimental impact on the natural
environment." [Polonsky 1994b, 2]
This definition incorporates much of the traditional components of the marketing definition,
that is "All activities designed to generate and facilitate any exchanges intended to satisfy
human needs or wants" [Stanton and Futrell 1987]. Therefore it ensures that the interests of
the organization and all its consumers are protected, as voluntary exchange will not take
place unless both the buyer and seller mutually benefit. The above definition also includes the
protection of the natural environment, by attempting to minimize the detrimental impact this
exchange has on the environment. This second point is important, for human consumption by
its very nature is destructive to the natural environment. (To be accurate products making
green claims should state they are "less environmentally harmful" rather than
"Environmentally Friendly.") Thus green marketing should look at minimizing environmental
harm, not necessarily eliminating it.
WHY IS GREEN MARKETING IMPORTANT
The question of why green marketing has increased in importance is quite simple and relies
on the basic definition of Economics:
"Economics is the study of how people use their limited resources to try to satisfy unlimited
wants." [McTaggart, Findlay and Parkin 1992, 24]
Thus mankind has limited resources on the earth, with which she/he must attempt to provide
for the worlds' unlimited wants. (There is extensive debate as to whether the earth is a
resource at man's disposal, for example, see Gore 1993.) While the question of whether these
wants are reasonable or achievable is important, this issue will not be addressed in this paper.
In market societies where there is "freedom of choice", it has generally been accepted that
individuals and organizations have the right to attempt to have their wants satisfied. As firms
face limited natural resources, they must develop new or alternative ways of satisfying these
unlimited wants. Ultimately green marketing looks at how marketing activities utilize these
limited resources, while satisfying consumers wants, both of individuals and industry, as well
as achieving the selling organization's objectives.
WHY ARE FIRMS USING GREEN MARKETING?
When looking through the literature there are several suggested reasons for firms increased
use of Green Marketing. Five possible reasons cited are:
1. Organizations perceive environmental marketing to be an opportunity that can be used
to achieve its objectives [Keller 1987, Shearer 1990];
2. Organizations believe they have a moral obligation to be more socially responsible
[Davis 1992, Freeman and Liedtka 1991, Keller 1987, McIntosh 1990, Shearer 1990];
3. Governmental bodies are forcing firms to become more responsible [NAAG 1990];
4. Competitors' environmental activities pressure firms to change their environmental
marketing activities [NAAG 1990]; and
5. Cost factors associated with waste disposal, or reductions in material usage forces
firms to modify their behavior [Azzone and Manzini 1994].
OPPORTUNITIES
It appears that all types of consumers, both individual and industrial are becoming more
concerned and aware about the natural environment. In a 1992 study of 16 countries, more
than 50% of consumers in each country, other than Singapore, indicated they were concerned
about the environment [Ottman 1993]. A 1994 study in Australia found that 84.6% of the
sample believed all individuals had a responsibility to care for the environment. A further
80% of this sample indicated that they had modified their behavior, including their
purchasing behavior, due to environmental reasons [EPA-NSW 1994]. As demands change,
many firms see these changes as an opportunity to be exploited.
Given these figures, it can be assumed that firms marketing goods with environmental
characteristics will have a competitive advantage over firms marketing non-environmentally
responsible alternatives. There are numerous example of firms who have strived to become
more environmentally responsible, in an attempt to better satisfy their consumer needs.
McDonald's replaced its clam shell packaging with waxed paper because of increased
consumer concern relating to polystyrene production and Ozone depletion [Gifford
1991, Hume 1991].
Tuna manufacturers modified their fishing techniques because of the increased
concern over driftnet fishing, and the resulting death of dolphins [Advertising Age
1991].
Xerox introduced a "high quality" recycled photocopier paper in an attempt to satisfy
the demands of firms for less environmentally harmful products.
This is not to imply that all firms who have undertaken environmental marketing activities
actually improve their behavior. In some cases firms have misled consumers in an attempt to
gain market share. In other cases firms have jumped on the green bandwagon without
considering the accuracy of their behavior, their claims, or the effectiveness of their products.
This lack of consideration of the true "greenness" of activities may result in firms making
false or misleading green marketing claims.
SOCIAL RESPONSIBILITY
Many firms are beginning to realize that they are members of the wider community and
therefore must behave in an environmentally responsible fashion. This translates into firms
that believe they must achieve environmental objectives as well as profit related objectives.
This results in environmental issues being integrated into the firm's corporate culture. Firms
in this situation can take two perspectives; 1) they can use the fact that they are
environmentally responsible as a marketing tool; or 2) they can become responsible without
promoting this fact.
There are examples of firms adopting both strategies. Organizations like the Body Shop
heavily promote the fact that they are environmentally responsible. While this behavior is a
competitive advantage, the firm was established specifically to offer consumers
environmentally responsible alternatives to conventional cosmetic products. This philosophy
is directly tied to the overall corporate culture, rather than simply being a competitive tool.
An example of a firm that does not promote its environmental initiatives is Coca-Cola. They
have invested large sums of money in various recycling activities, as well as having modified
their packaging to minimize its environmental impact. While being concerned about the
environment, Coke has not used this concern as a marketing tool. Thus many consumers may
not realize that Coke is a very environmentally committed organization. Another firm who is
very environmentally responsible but does not promote this fact, at least outside the
organization, is Walt Disney World (WDW). WDW has an extensive waste management
program and infrastructure in place, yet these facilities are not highlighted in their general
tourist promotional activities (Murphy 1985).
GOVERNMENTAL PRESSURE
As with all marketing related activities, governments want to "protect" consumers and
society; this protection has significant green marketing implications. Governmental
regulations relating to environmental marketing are designed to protect consumers in several
ways, 1) reduce production of harmful goods or by-products; 2) modify consumer and
industry's use and/or consumption of harmful goods; or 3) ensure that all types of consumers
have the ability to evaluate the environmental composition of goods.
Governments establish regulations designed to control the amount of hazardous wastes
produced by firms. Many by-products of production are controlled through the issuing of
various environmental licenses, thus modifying organizational behavior. In some cases
governments try to "induce" final consumers to become more responsible. For example, some
governments have introduced voluntary curb-side recycling programs, making it easier for
consumers to act responsibly. In other cases governments tax individuals who act in an
irresponsible fashion. For example in Australia there is a higher gas tax associated with
leaded petrol.
One of the more recent publicized environmental regulations undertaken by governments has
been the establishment of guidelines designed to "control" green marketing claims [Polonsky
1994a]. These regulations include the Australian Trade Practices Commission's (TPC)
"Environmental Claims in Marketing - A Guideline [TPC 1992], the US Federal Trade
Commission's (FTC) "Guides for the Use of Environmental Marketing Claims" [FTC 1991
and 1992] and the regulations suggested by the National Association of Attorneys-General
[NAAG 1990]. These regulations are all designed to ensure consumers have the appropriate
information which would enable them to evaluate firm's environmental claims. In addition to
these guidelines many States in the US have introduced legislation to control various
environmental marketing activities [Kangun and Polonsky 1994]. In most cases these State
laws are more stringent than the FTC's guidelines. To date the majority of prosecutions of
firms using misleading green marketing has occurred in State rather than Federal courts.
Thus governmental attempts to protect consumers from false or misleading claims should
theoretically provide consumers with the ability to make more informed decisions. In
Australia where regulations have affected many companies, one unintended casualty was an
advertisement for the Federal Government's environmental labeling program "Environmental
Choice." This ad was deemed to breach the TPC's guidelines, as it implied that only products
with the logo were environmentally responsible.
COMPETITIVE PRESSURE
Another major force in the environmental marketing area has been firms' desire to maintain
their competitive position. In many cases firms observe competitors promoting their
environmental behaviors and attempt to emulate this behavior. In some instances this
competitive pressure has caused an entire industry to modify and thus reduce its detrimental
environmental behavior. For example, it could be argued that Xerox's "Revive 100%
Recycled paper" was introduced a few years ago in an attempt to address the introduction of
recycled photocopier paper by other manufacturers. In another example when one tuna
manufacture stopped using driftnets the others followed suit [Advertising Age 1991].
COST OR PROFIT ISSUES
Firms may also use green marketing in an attempt to address cost or profit related issues.
Disposing of environmentally harmful by-products, such as polychlorinated biphenyl (PCB)
contaminated oil are becoming increasingly costly and in some cases difficult. Therefore
firms that can reduce harmful wastes may incur substantial cost savings. When attempting to
minimize waste, firms are often forced to re-examine their production processes. In these
cases they often develop more effective production processes that not only reduce waste, but
reduce the need for some raw materials. This serves as a double cost savings, since both
waste and raw material are reduced.
In other cases firms attempt to find end-of-pipe solutions, instead of minimizing waste. In
these situations firms try to find markets or uses for their waste materials, where one firm's
waste becomes another firm's input of production. One Australian example of this is a firm
who produces acidic waste water as a by-product of production and sells it to a firm involved
in neutralizing base materials.
The last way in which cost or profit issues may affect firms' environmental marketing
activities is that new industries may be developed. This can occur in two ways: 1) a firm
develops a technology for reducing waste and sells it to other firms; or 2) a waste recycling or
removal industry develops [Yurman 1994]. For example, firms that clean the oil in large
industrial condensers increase the life of those condensers, removing the need for replacing
the oil, as well as the need to dispose of the waste oil. This reduces operating costs for those
owning the condensers and generates revenue for those firms cleaning the oil.
SOME PROBLEMS WITH GOING GREEN
No matter why a firm uses green marketing there are a number of potential problems that
they must overcome. One of the main problems is that firms using green marketing must
ensure that their activities are not misleading to consumers or industry, and do not breach any
of the regulations or laws dealing with environmental marketing. For example marketers in
the US must ensure their green marketing claims can meet the following set of criteria, in
order to comply with the FTC's guidelines. Green marketing claims must;
Clearly state environmental benefits;
Explain environmental characteristics;
Explain how benefits are achieved;
Ensure comparative differences are justified;
Ensure negative factors are taken into consideration; and
Only use meaningful terms and pictures.
Another problem firms face is that those who modify their products due to increased
consumer concern must contend with the fact that consumers' perceptions are sometimes not
correct. Take for example the McDonald's case where it has replaced its clam shells with
plastic coated paper. There is ongoing scientific debate which is more environmentally
friendly. Some scientific evidence suggests that when taking a cradle-to-grave approach,
polystyrene is less environmentally harmful. If this is the case McDonald's bowed to
consumer pressure, yet has chosen the more environmentally harmful option.
When firms attempt to become socially responsible, they may face the risk that the
environmentally responsible action of today will be found to be harmful in the future. Take
for example the aerosol industry which has switched from CFCs (chlorofluorocarbons) to
HFCs (hydrofluorocarbons) only to be told HFCs are also a greenhouse gas. Some firms now
use DME (dimethyl ether) as an aerosol propellant, which may also harm the ozone layer
[Debets 1989]. Given the limited scientific knowledge at any point in time, it may be
impossible for a firm to be certain they have made the correct environmental decision. This
may explain why some firms, like Coca-Cola and Walt Disney World, are becoming socially
responsible without publicizing the point. They may be protecting themselves from potential
future negative backlash, if it is determined they made the wrong decision in the past.
While governmental regulation is designed to give consumers the opportunity to make better
decisions or to motivate them to be more environmentally responsible, there is difficulty in
establishing policies that will address all environmental issues. For example, guidelines
developed to control environmental marketing address only a very narrow set of issues, i.e.,
the truthfulness of environmental marketing claims [Schlossberg 1993]. If governments want
to modify consumer behavior they need to establish a different set of regulations. Thus
governmental attempts to protect the environment may result in a proliferation of regulations
and guidelines, with no one central controlling body.
Reacting to competitive pressures can cause all "followers" to make the same mistake as the
"leader." A costly example of this was the Mobil Corporation who followed the competition
and introduced "biodegradable" plastic garbage bags. While technically these bags were
biodegradable, the conditions under which they were disposed did not allow biodegradation
to occur. Mobil was sued by several US states for using misleading advertising claims
[Lawrence 1991]. Thus blindly following the competition can have costly ramifications.
The push to reduce costs or increase profits may not force firms to address the important
issue of environmental degradation. End-of-pipe solutions may not actually reduce the waste
but rather shift it around. While this may be beneficial, it does not necessarily address the
larger environmental problem, though it may minimize its short term affects. Ultimately most
waste produced will enter the waste stream, therefore to be environmentally responsible
organizations should attempt to minimize their waste, rather than find "appropriate" uses for
it.
CONCLUSION
Green marketing covers more than a firm's marketing claims. While firms must bear much of
the responsibility for environmental degradation, ultimately it is consumers who demand
goods, and thus create environmental problems. One example of this is where McDonald's is
often blamed for polluting the environment because much of their packaging finishes up as
roadside waste. It must be remembered that it is the uncaring consumer who chooses to
disposes of their waste in an inappropriate fashion. While firms can have a great impact on
the natural environment, the responsibility should not be theirs alone. In the EPA's 1994
study consumers gave the following reasons for why they damage the environment.
It appears that consumers are not overly committed to improving their environment and may
be looking to lay too much responsibility on industry and government. Ultimately green
marketing requires that consumers want a cleaner environment and are willing to "pay" for it,
possibly through higher priced goods, modified individual lifestyles, or even governmental
intervention. Until this occurs it will be difficult for firms alone to lead the green marketing
revolution.
Having said this, it must not be forgotten that the industrial buyer also has the ability to
pressure suppliers to modify their activities. Thus an environmental committed organization
may not only produce goods that have reduced their detrimental impact on the environment,
they may also be able to pressure their suppliers to behave in a more environmentally
"responsible" fashion. Final consumers and industrial buyers also have the ability to pressure
organizations to integrate the environment into their corporate culture and thus ensure all
organizations minimize the detrimental environmental impact of their activities.

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