DEFINITION
HISTORY
The term Green Marketing came into prominence in the
late 1980s and early 1990s.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
IMPORTANCE OF GREEN
MARKETING
Since early 1990’s,a major concern on ecological impact
of industrial house on environment has been surfaced on
marketplace. Not only the relations between human,
organization and natural environment has been
redefined, but the implication thereof are being
interpreted, because of these, new perception are being
formed or re-evaluated on issues like environmentally
product, recycle ability , waste reduction, the cost
associated with pollution and price value relationship of
environmentalism. Pressure from various stakeholders,
govt. environmentalists, NGO’s consumer is placed on
businesses, which in turn keep them under constant and
relentless watch in their daily operations. A direct result
can be seen in developing as well as in developed
countries where government become more strict in
imposing regulations to protect environment at the same
time, the consumers of these countries are being more
and more out spoken regarding their needs for
environmentally friendly products, even though question
remain on their willingness to pay higher premium for
these products.
OPPORTUNITIES
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. 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. As demands change, many firms
see these changes as an opportunity to be exploited. 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 examples
of firms who have strived to become more
environmentally responsible, in an attempt to better
satisfy their consumer need. McDonald's replaced its
clam shell packaging with waxed paper because of
increased consumer concern relating to polystyrene
production and Ozone depletion.
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,
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.
GREEN CODE
Generalise with care. Consumer behaviour will not
necessarily be consistent across different product types,
and particular market segment may respond to certain
issues on green agenda but not others.
Product
Price
Promotion
Place
PRODUCT
The products have to be developed depending on the
needs of the customers who prefer environment friendly
products. 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. The marketer's
role in product management includes 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
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. Value can be added to
it by changing its appearance, functionality and through
customization, etc. Wal 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".
PROMOTION
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.
PLACE
Green place is about managing logistics to cut down on
transportation emissions, thereby in effect aiming at
reducing the carbon footprint. For example, instead of
marketing an imported mango juice in India it can be
licensed for local production. This avoids 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. The choice of
where and when to make a product available will have
significant impact on the customers. Very few customers
will go out of their way to buy green products.
STRATEGIES
The marketing strategies for green marketing include: -
HANDMADE PAPER :
Hand made papers don't only reduce pollution by 70 %,
but also it helps in saving trees as it uses non-wood raw
materials. Thus, promoting the handmade papers is in
dire need today.
ECO WHEELS:
The use of Eco wheels, such as electric vehicles (EVs)
can help greatly in reducing air pollution. Also it can be
in great handy in decreasing the energy consumption by
20 %.
ECO FURNITURE:
ECO FAN:
Eco fans don't need electricity or any external batteries
to work, as the thermoelectric module works a small
generator to power the fan. This environment friendly
fan is capable of distributing the warm in whole of your
house.
HANDICRAFT PRODUCTS:
* ELECTRONIC SECTOR
ITC
PATHS TO GREENNESS
SOLUTIONS
Following steps should be taken to solve the problem
regarding green marketing:
Organizing policies
Effective communication
CONCLUSION
Green marketing should not neglect the economic aspect
of marketing. Marketers need to understand the
implications of green marketing. If we think customers
are not concerned about environmental issues or will not
pay a premium for products that are more eco-
responsible, think again. We must find an opportunity to
enhance our product's performance and strengthen your
customer's loyalty and command a higher price.
3. www.greenmarketing.net/stratergic.html
4. www.epa.qld.gov.au/sustainable_ industries
5. www.wmin.ac.uk/marketing
research/marketing/greenmix.html
6. http://www.green-markets.org/context.htm
PRESENTATION
ON
GREEN
MARKETING
SUBMITTED TO: SUBMITTED
BY:
MRS.SALONI P. DIWAN RANVEET
KAUR
MR. VARUN BHARAT
MBA(GEN)SEC.A
FACULTY USM,KUK ROLL NO.66
ACKNOWLEGEMENT