GREEN MARKETING

Global economic integration, the competition of the new borderless pattern of marketing in the highly
competitive and rapidly changing macro-environment, with the new economy emerging to the sustainable
development of human society for the purpose of the green wave is sweeping the earth.
In the wake of changes taking place in the business economy, a significant area of social concern is the
environment and therefore to minimize environmental impacts by significant orders of magnitude requires the
combination of good engineering with good economics as well as changing consumer preferences .Marketing is
ultimately dependent on the use of scarce resources to fulfill human needs, with efficient use of scare resources. It
has been observed that consumers more and more often prefer eco-friendly, safe and clean products that do not
pollute the environment. The changing attitudes of consumers regarding environmental protection, ecology, social
responsibility and the change of consumption habits force enterprises to look for new alternatives of activities.
Therefore Green Marketing is a necessary requirement for sustainable development .It is accompanied by all social
and economic changes in attitudes and economic behavior. Thus green marketing incorporates a broad range of
activities, including product modification, changes to the production process, packaging changes, as well as
modifying advertising.
Green marketing satisfies two objectives: improved environmental quality and customer satisfaction. Based on the
evidence, successful green products are able to appeal to mainstream consumers or lucrative market niches and
frequently command price premiums by offering non-green consumer value(such as convenience and
performance). Thus GREEN MARKETING can be defined as All activities designed to generate and facilitate
any exchange intended to satisfy human needs or wants such that satisfying of these needs and wants occur
with minimal detrimental input on the national environment.

EVOLUTION
The green marketing has evolved over a period of time. The evolution of green marketing has three phases. First
phase was termed as "Ecological" green marketing, and during this period all marketing activities were concerned
to help environment problems and provide remedies for environmental problems. Second phase was
"Environmental" green marketing and the focus shifted on clean technology that involved designing of
innovative new 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. The term Green Marketing came into
prominence in the late 1980s and early 1990s. The American Marketing Association (AMA) held the first
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workshop on "Ecological Marketing" in 1975. The proceedings of this workshop resulted in one of the first books
on green marketing entitled "Ecological Marketing". Other similar terms used for green marketing are
Environmental Marketing and Ecological Marketing. Green marketing has continued to gain adherents,
particularly in light of growing global concern about climate change. This concern has led more companies to
advertise their commitment to reduce their climate impacts, and the effect this is having on their products and
services is far-reaching.
GREEN MARKETING MIX

Every company has its own favorite marketing mix. Some have 4 P's and some have 7 P's of
marketing mix. The 4 P's of green marketing are that of a conventional marketing but the
challenge before marketers is to use 4 P's in an innovative manner.
GREEN PRODUCT
1. The ecological objectives in planning products are to reduce resource consumption and pollution and to
increase conservation of scarce resources. The customers who prefer environment friendly products
demand development of the products accordingly. Products can be made from recycled materials or from
used goods. Efficient products not only save water, energy and money, but also reduce harmful effects on
the environment. Green chemistry forms the growing focus of product development. Management of
product requires providing product designers with market-driven trends and customer requests for green
product attributes such as energy saving, organic, green chemicals, local sourcing, etc., For example, Nike
is the first among the shoe companies to market itself as green. It is marketing its Air Jordan shoes as
environment-friendly, as it has significantly reduced the usage of harmful glue adhesives. It has designed
this variety of shoes to emphasize that it has reduced wastage and used environment-friendly materials.

GREEN PRICE
Price is a critical and important factor of green marketing mix. Most consumers will only be prepared to pay
additional value if there is a perception of extra product value. This value may be improved performance, function,
design, visual appeal, or taste. Green marketing should take all these facts into consideration while charging a
premium price.

Green pricing takes into consideration the people, planet and profit in a way that takes care of the health of
employees and communities and ensures efficient productivity. By changing the appearance, functionality and
customization, value can be added to the product. Wall Mart unveiled its first recyclable cloth shopping bag. IKEA
started charging consumers when they opted for plastic bags and encouraged people to shop using its "Big Blue
Bag".

GREEN PROMOTION
There are three types of green advertising: Ads that address a relationship between a product/service and the
biophysical environment, those that promote a green lifestyle by highlighting a product or service and ads that
present a corporate image of environmental responsibility. Green promotion involves configuring the tools of
promotion, such as advertising, marketing materials, signage, white papers, web sites, videos and presentations by
keeping people, planet and profits in mind. British petroleum (BP) displays gas station which its sunflower motif
and boasts of putting money into solar power. Indian Tobacco Company has introduced environmental-friendly
papers and boards, which are free of elemental chlorine. Toyota is trying to push gas/electric hybrid technology
into much of its product line. It is also making the single largest R&D investment in the every-elusive hydrogen car
and promoting itself as the first eco-friendly car company. International business machines Corporation (IBM) has
revealed a portfolio of green retail store technologies and services to help retailers improve energy efficiency in
their IT operations. The center piece of this portfolio is the IBM Sure POS 700, a point-of-sale system that,
according to IBM, reduces power consumption by 36% or more. We even see the names of retail outlets like
"Reliance Fresh", Fresh@Namdhari Fresh and Desi, which while selling fresh vegetables and fruits, transmit an
innate communication of green marketing.
Green marketer can attract customers on the basis of performance, money savings, health and convenience, or just
plain environmental friendliness, so as to target a wide range of green consumers.
Consumer awareness can be created by spreading the message among consumers about the benefits of
environmental-friendly products. Positioning of profiles related to green marketing on social networks creates
awareness within and across online peer groups. Marketing can also directly target the consumers through
advertisements for product such as energy saving compact fluorescent lamps, the battery powered Reva car, etc.
GREEN PLACE
The choice of where and when to make a product available will have significant impact on the
customers. Managing logistics, to cut down on transportation emissions, thereby in effect aiming at reducing the
carbon footprint is all about Green Place. For example, mango juice in India can be licensed for local production
rather than marketing it. This would avoid shipping of the product from far away, thus reducing shipping cost and
more importantly, the consequent carbon emission by the ships and other modes of transport.
GOVERNMENT REGULATION
Green marketing has a positive impact on the environment because it provides green consumers with the
information they need to make environmentally sound purchasing decisions but it is observed that a very small
percentage of the marketing messages from Green campaigns are entirely true and there is a lack of
standardization to authenticate these claims. There is no standardization to authenticate these claims. There is no
standardization currently in place to certify a product as organic. However green marketing loses much of its value
if consumers cannot differentiate between environmentally preferable products and those marketed with misleading
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or exaggerated green claims. Therefore in order to protect consumers and marketers both, government has designed
regulations to protect environment in several ways:

Ensuring that all types of consumers have the capability to assess the environmental composition of goods.
Change in consumer and industrys consumption of harmful products.
Lastly reduction in the overall production of harmful goods or by products.

Most consumers understand that the choices they make impact the environment, and are often drawn to products
that claim to be environmentally friendly. Surveys done over the past few years have found that most consumers
are more likely to choose products that claim to be environmentally friendly over products that do not make such a
claim. A majority of these consumers are willing to pay up to five percent more for those products. These
consumers believe that these products advertised as environmentally friendly will have less of a negative impact on
the environment. Companies respond to this consumer demand by developing greener products, and marketing
these products as more "environmentally friendly" than regular products of the same nature. Credibility is the
foundation of effective green marketing. Green products must meet or exceed consumer expectations by delivering
their promised consumer value and providing substantive environmental benefits. Often, consumers dont have the
expertise or ability to verify green products environmental and consumer values, creating misperceptions and
skepticisms. Therefore, it becomes the duty of the government to take utmost care to satisfy the demands and
expectations of the consumers in the right direction.

PRESSURE FROM THE COMPETITORS

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 when one tuna manufacture stopped using driftnets the others
followed suit. Businesses have increased their rate of targeting consumers who are concerned about the
environment. These same consumers through their concern are interested in integrating environmental issues into
their purchasing decisions through their incorporation into the process and content of the marketing strategy for
whatever product may be required. The changing consumer preferences with concern for future generations,
environmental protection and responsibility for the results of human activities require enterprises to have new
decisions and new ways for the creation of competitive advantage. Wipro InfoTech was India's first company to
launch environment friendly computer Peripherals. For the Indian market, Wipro has launched a new range of
desktops and laptops called Wipro Green ware. These products are RoHS (Restriction of Hazardous Substances)
compliant thus reducing e-waste in the environment.
CONCERNS FOR PROFIT
Firms may also use green-marketing in an endeavour to have some control over the cost associated with waste
disposal. Therefore it will be possible for firms to reduce their operational cost significantly by introducing green
marketing or by lesser use of harmful products. In other case the firm may attempt to find end-of pipe solution,
instead of minimizing waste. Take the example of China and Denmark; In China organic waste from thousands of
small straw pulp mills is used as agricultural fertilizer, in Denmark, a coal-fired power station, an oil refinery , a
plastic board factory, a pharmaceutical plant and the municipality have created an industrial symbiosis by
exploiting each others waste streams.
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GREEN MARKETING AND CORPORATE SOCIAL RESPONSIBILITY

An increasing number of companies have integrated Corporate Social Responsibility with green marketing and it
has transformed from an abstract idea to a conception. The major development in this area has been seen in the past
one year. The essence of Corporate Social Responsibility could be defined as the continuing commitment by
business to behave ethically and contribute to economic development while improving the quality of life of the
employees and their families as well as of the community and society at large.
In todays competitive global marketing, ethics play a vital role, because we are dealing with human values and
beliefs. Business spreads beyond boundaries. The marketer has to deal with cross country culture. As
competitiveness increases especially as the factor of social and ecological responsibility of business becomes more
important. Green marketing may become an effective tool for acquiring companys competitive advantage and for
strengthening the image. When we start talking about Corporate Social Responsibility (CSR) and Ethics in
marketing, the marketer needs to know the concepts of Corporate Social Responsibility and how it is applicable in
the field of marketing and ethical conflicts faced by the marketers, the concepts of Consumerism, Social
responsibility and ethics in Marketing. The Natural Environment, Green Marketing, Cause Related Marketing,
Social Marketing, Ethnic Marketing and its relationships in Marketing Ethics.
ADOPTION OF GREEN MARKETING
Green marketing talks about not just greening products but greening firms as well. Though normative concerns
impact consumers and firms decision making, economic aspects of green marketing should not be neglected.
Managers need to identify what ought to be greened: systems, processes or products? Consumer apathy to green
products is due to many factors, including inadequate information about levels of greenness, lack of credibility of
firms claims and the tendency to free ride. It also seems that green products that offer direct excludable benefits to
consumers (such as pharmaceuticals with minimum side effect and nutritious and natural foods) would have higher
acceptability.
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Here are basically five reasons for which a marketer should or may have to go for the adoption of green marketing.
They are

To achieve competitive Advantage

To develop Corporate social responsibilities (CSR)

With pressure from Government

Competitive pressure

Cost or profit issues

WHY GOING GREEN CANNOT BE IGNORED

Green marketing is a concept that has evolved and gained importance in the modern market.
This concept of green marketing means development and distribution of ecologically-safe products and refers to
products and packages that have one or more of the following characteristics:
(1) Are less toxic
(2) Are more durable
(3) Contain reusable materials
(4) Are made of recyclable material
Consumers today are becoming more and more aware regarding the environment in which they live. Various
studies by environmentalists show that the consumers have become much more vigilant about the environmental
issues and are therefore changing their behavior pattern so as to become less hostile towards it. Additionally, the
development of green marketing has opened the door for organizations to co-brand their products into different
product line, boasting the green-friendliness of their products. It is not only important to offer the green product
and observe the reaction of the consumer but it is also important to find means that would enable to affect them in
such a way that the final result of decision making (the buying of an eco-friendly product) would be favorable for
them. Green marketing has a positive impact on the environment because it provides green consumers with the
information they need to make environmentally sound purchasing decisions. Green marketing also raises the
environmental awareness of non-green consumers and encourages manufacturers to produce more environmentally
sound products
Resources are scarce and getting depleted at a fast pace, it is vital for the people concerned with marketing of
green products to utilize the resources efficiently without squandering as well as to achieve goals of the
organization. So green marketing is inevitable.
STRATEGIES FOR SUSTAINABLE DEVELOPMENT
Based around the values of inclusivity, diversity, and integration he term Sustainable Development should be able
to stimulate discursive engagement with respect to the future development of society within an ethical framework.
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As more and more green products enter the markets all around the world, green consumption has become a fashion
As peoples' environmental and green awareness increases, the world has entered a green era of environmental
protection and sustainable development, which has profound and vast effects on human production and
consumption modes. Therefore to sustain in an economy, the various strategies to sustain green marketing may be:
i) Designing of environmental friendly products
ii)Gauging the consumer desired value of environmental; products, promoting and delivering to the relevant
consumer market segments such as market health benefits among health-conscious consumers.
iii)Expand demand and choice for environmentally friendly products by broadening the mainstream appeal by
adding consumer-desired value into environmental products for instance fixed pricing for subscribers of renewable
energy.
iv)Synchronize environmental product attributes with solutions for consumer needs
v)Educate consumers about environmentally friendly products that connect environmental product attributes with
desired consumer value
vi)Develop interesting engaging and educational Internet sites about environmental products desired consumer
value
vii)Procure product endorsements or eco-certifications from trustworthy third parties, and educate consumers about
the meaning behind those endorsements and eco-certifications.
GREEN MARKETING MYOPIA
Green marketing must satisfy two objectives: improved environmental quality and customer satisfaction.
Misjudging either or overemphasizing the former at the expense of the latter can be termed green marketing
myopia. In 1960, Harvard business professor Theodore Levitt introduced the concept of marketing myopia in a
now-famous and influential article in the Harvard Business Review.
A very significant example of Marketing Myopia could be IN 1994, when Philips came out with
"EARTHLIGHT," an energy-efficient compact fluorescent light (CFL) bulb with a clumsy shape that was
incompatible with most conventional lamps, sold in a confusing package and carrying a unacceptable height price
as compared to the regular bulbs available in the market. Indeed sales went down significantly. Philips reintroduced the product in 2000 under the name "Marathon very appropriately named to emphasize the bulb's fiveyear life. A new design had the similarity in look and versatility of incandescent bulbs. Messages and promotions
promised $20 in cost savings over the life of the bulbs, they provided credibility through an Energy Star seal
emblazoned on a redesigned package. It hit the chord right and this new value proposition triggered sales growth
of 12% in a relatively flat market otherwise. Philips' experience of course provides a valuable lesson in how to
avoid the common pitfall of "green marketing myopia." While noble, the environmental positioning of the original
Earthlight product appealed to only the deepest green of consumers. Inevitably, mainstream consumers ask, "If I
use 'green' products, what's in it for me?"
GREENWASHING

We have been seeing globally the awareness regarding the health of our planet and its depleting resources. Though
its inception goes back a long time, more than two decades ago, on Earth Day millions of people joined together
around the world to protest against these harsh steps, compelling corporations to realize and agree that even an
average and not so aware individual had started to take an interest in the well-being of the environment.
As expected and foreseen by experts, the level of "green washing" has shot up sharply since that eventful Earth
Day. Green washing primarily indicated when corporations try to make themselves look more environmentally
friendly than they are in reality .Arguably; the green washers get away with it more often than not. But their
deceptions mostly do not go entirely unnoticed. Every year for the past two decades or more, the watchdog group
Earth Day Resources for Living Green has released a report called "Don't Be Fooled." The report calls attention to
the year's 10 worst green washers, the 10 companies that have made the most misleading claims about the
environmental benefits of their products and industries. It indeed is a required and appreciated step to keep
companies away from fooling individuals and other corporations.

CHALLENGES AHEAD
It is indeed an uphill task and perhaps the apprehensions to integrate environmental attributes into their marketing
mix are often aggravated because of certain easily foreseeable challenges which deter marketers from taking such
initiatives. Producers face 3 problems when they attempt to utilize environmental marketing: a lack of credibility,
consumer cynicism and consumer confusion over claims. The problems could be majorly solved by strategic
alliances with environmental groups, as well as provide other advantages, including increased access to
environmental information, increased access to new markets, publicity and reduced public criticism and education
of consumers about key environmental issues relating to a firm's product. However the Environmental strategic
Alliance partner has to be chosen after a rigorous selection process. This selection process should thoroughly scan
and analyze alliance objectives, specifying outcomes desired and determining the fit between the organization,
environmental group and target market.
Apart from the above stated challenges of green Marketing, Certain crucial decision has to be considered keeping
in mind the cost and awareness and willingness factors. To name a few:
1) Green products require renewable and recyclable material, which is costly.

2)
3)
4)
5)

Requires a technology, which requires huge investment in R & D

Water treatment technology, which is too costly
Majority of the people are not aware of green products and their uses
Majority of the consumers are not willing to pay a premium for green products

Some significant examples of green marketing in the Global and Indian context
XEROX
How Xerox has created a sustainable advantage for the customers:
Reduce Energy Use: 50 % energy savings achieved through Xeroxs energy star Multi Function system use office
services to assess opportunities to improve document management practices.
Use Paper Responsibly: Use of simple 2 sided printing/scanning features and print on demand
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Use of docushare & free flow digital workflow products. Use of Xerox environmentally preferred paper and media
Protect indoor air quality: Use of Xerox Products which are below required chemical emission levels. Use of non
toxic dry inks with no hazardous waste
Reduce waste: recycle cartridges through Green world alliance programmed.
Use of solid ink cartridge free technology
Use of equipment return programmed.
Measure environmental benefits: Use of sustainability calculator.

HINDUSTAN UNILEVER
Hindustan Unilever (HUL) is the largest fast moving consumer goods (FMCG) company, leader in home &
personal care products and foods & beverages. HUL's brands are spread across 20 distinct consumer categories;
touching lives of every 2 out of 3 Indian. It has employee strength over 15000 & 1200 managers. It has created
widespread network through its 2000 suppliers & associates. There 75 manufacturing locations in India itself. It
caters its wide range of products to 6.3million outlets. It has market capitalization of 11.5billion
INITIATIVES TAKEN BY HUL
Water scarcity is one of the biggest crises facing India. Water management has been a focus area for HUL, and has
been made one of the key performance indicators for all HUL factories. Hindustan Unilever Limiteds Pureit has
received the UNESCO Water Digest Water Award 2008-2009 in the category of Best Domestic Non-Electric Water
Purifier. Pureit received the award for outstanding contribution in the field of water in India. HULs water
conservation and harvesting initiatives are created with principles of reduce, reuse, recycle, recover and renew to
help adjacent villages of Dadra and Nagar Haveli and make water available round the year.HUL's Silvassa unit
embarked on a long-term project of water harvesting, which aimed to dramatically change water availability, taking
it up to year-round availability from 4 months.
The Pollution Control Committee of Dadar &Nagar Haveli contacted HULS Silvassa Unit to tackle a critical
problem.
Drums
full
of
toxic
chemicals
were
dumped
into
the
Daman
Ganga river by some chemical manufacturer. It was of paramount importance to control the spread of these toxic
chemicals
before
it
assumed
severe
proportions.
The task was entrusted to a team headed by HULS Safety Officer from their Silvassa Unit. They provided safety
equipments and neutralizing agents which helped to defuse the situation in four hours. Their quick and timely
support was appreciated by the local administration.

MARKETING MESSAGES CONNECTING GREEN PRODUCTS WITH DESIRED CONSUMER

VALUE
1) ASKO: Efficiency and cost effectiveness: The only thing our washer will shrink is your water bill.

2) Tide Cold Water Laundry Detergent: Did you know that between 80 and 85 percent of the energy used to wash
clothes comes from heating the water? Tide coldwater- The Coolest Way to Clean.
3) Earthbound Farm Organic: 20 years of refusing to farm with toxic pesticides. Stubborn, perhaps. Healthy,
most definitely.
4) Seventh Generation Household Cleaners: Environmentally friendly stain removal. It is as simple as H2O.
5) Citizen Eco Drive Sports Watch: It s unstoppable. Just like the people who wear it.
6) Steelcase Think Chair: Think is the chair with a brain and a conscience
7) The Body Shop: Make up your mind, not just your face.
8) Lexus RX400h Hybrid Sports Utility Vehicle: Performance and luxury fueled by innovative technology

CONCLUSION
Green marketing is a complex tool that must be integrated across all organizational areas and activities if it is to be
successfully implemented and achieve long-term benefits. Failure to develop an integrated approach will increase
the probability that a firm's activities will not match consumers' expectations. The actions taken will be ineffective,
both from a business and an environmental perspective. Over the past two or three decades, corporate
environmental management has gradually developed in a more mature discipline. Many companies have
incorporated environmental considerations into their activities in order to eliminate or reduce the impact of these
activities on the natural environment. The question is, however, whether managers perceive corporate
environmental initiatives as a challenge leading to new strategic options and, eventually, increased competitiveness
or whether they regard it as yet another burden?
All that we consumers and marketers need to remember is:There are no passengers on Spaceship Earth. We are
all crew.

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