Anda di halaman 1dari 39

INTRODUCTION

The promotion of environmentally safe/ beneficial


products, green marketing began in Europe in the early
1980’s when specific products were identified as being
harmful to the earth’s atmosphere. As the result new
“green” products were introduced that were less
damaging to the environment. The concept caught on in
the United States and has been gaining steadily ever
since.

Green marketing is also known as environmental


marketing or sustainable marketing. Divergent aspect of
green marketing includes ecologically safer products,
recyclable and biodegradable packaging, energy efficient
operations and better pollution controls. Advances
produced from green marketing include packaging made
from recycle paper, phosphate-free detergents, refillable
containers for cleaning products and bottle using less
plastic.

As today’s consumer become more and more conscious


of natural products, businesses are beginning to modify
their own thoughts and behavior in an attempt to
address the concerns of consumers. Green marketing is
becoming more important to businesses because of
consumers’ genuine concerns about our limited resources
on the earth. By implementing green marketing
measures in order to save the earth’s resources in
productions, packaging and operations, businesses are
showing consumers that they too share the same
concern about environment, boosting their credibility.
Government has also taken certain initiatives by making
regulations relating to green marketing in order to
protect the environment.
WHAT IS GREEN MARKETING?
Many people believe that green marketing refers solely
to the promotion or advertising of products with
environmental characteristics. Generally terms like
Phosphate Free, Recyclable, Refillable, Ozone Friendly,
and Environmentally Friendly are some of the things
consumers most often associate with green marketing.
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 "ecotourism" facilities, i.e., facilities that
specialize in experiencing nature or operating in a
fashion that minimizes their environmental impact.

Green marketing 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, as well as modifying
advertising. It is the process of selling products and
services based on their environmental benefits. Such a
product or service may be environmentally friendly in
itself or produced and/or packaged in an environmentally
friendly way.

Green marketing involves developing and promoting


products and services that satisfy customers want and
need for Quality, Performance, Affordable Pricing and
Convenience without having a detrimental impact on the
environment. The Obvious assumption of green
marketing is that potential consumers will view a product
or service's "greenness" as a benefit and base their
buying decision accordingly.

DEFINITION

According to Pride and Ferrell

“Green Marketing alternatively known as


environmental marketing refers to an organization
efforts at designing , promoting , pricing and
distributing products that will not harm the
environment”

According to Polonsky ,Green marketing is defined as

"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.”

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"
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. So green marketing should look
at minimizing environmental harm, not necessarily
eliminating it.

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

 The first wave of Green Marketing occurred in the


1980s. Corporate Social Responsibility (CSR)
Reports started with the ice cream seller Ben &
Jerry's where the financial report was supplemented
by a greater view on the company's environmental
impact.
 In 1987 a document prepared by the World
Commission on Environment and Development
defined sustainable development as meeting "the
needs of the present without compromising the
ability of future generations to meet their own
need", this became known as the Brundtland Report
and was another step towards widespread thinking
on sustainability in everyday activity.
 Two tangible milestones for wave of green
marketing came in the form of published books,
both of which were called Green Marketing. They
were by Ken Peattie (1992) in the United Kingdom
and by Jacquelyn Ottman (1993) in the United
States of America.

In the years after 2000 a second wave of Green


marketing emerged. By now CSR and the Triple Bottom
Line (TBL) were widespread. Such publications as a 2005
United Nations Report, then in 2006 a book by Al Gore
and the UK Stern Report brought scientific-environmental
arguments to a wide public in an easy to understand
way.

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.

So in this era where consumer determine the fate


of a company, green marketing imparts a proactive
strategies to these companies to cater the market by
imparting natural friendly product/ services which
otherwise reduce or minimize detrimental impact on
environment.

A green marketing approach in productive


area promotes the integration of environmental issues
on all corporate activities; from strategy formulation,
planning re-engineering in production process and
dealing with consumers. So to remain competitive within
the challenge thrown by environment protectionists, the
companies will have to find out the answer through their
marketing strategies, product or services redesign,
customer handling.

in this endeavour the companies go for new


technologies for handling waste, sewage and air
pollution; it can go for product standardization to
ensure environmentally safe product; by providing truly
natural product. In this regard companies should be
concerned with what happens to a product during and
after its useful life. Companies may manifest these
concerns through experimentation with ways to reassess
the product life stages.

Moreover, man 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.. 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.

ADOPTION OF GREEN MARKETING


There are basically five reasons for which a marketer
should go for the adoption of green marketing. They are
-

* Opportunities or competitive advantage


* Corporate social responsibilities (CSR)
* Government pressure
* Competitive pressure
* Cost or profit issues

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.

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. In India, the green building
movement, spearheaded by the Confederation of Indian
industry (CII) - Godrej Green business Center, has
gained tremendous impetus over the last few years.
From 20,000 sq ft in 2003, India's green building
footprint is now over 25 million sq ft.
CORPORATE 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.

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’ 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. The Indian government
too has developed a framework of legislations to reduce
the production of harmful goods and by products. These
reduce the industry's production and consumers'
consumption of harmful goods, including those
detrimental to the environment; for example, the ban of
plastic bags in Mumbai, prohibition of smoking in public
areas, etc.

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.

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. 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.

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.

Remember the validity of piece of market research is


not related to degree to which it support your preferred
option.

Explore the context from which the market research


data comes. Be clear on the nature of sample used , the
question asked the way in which the responses were
recorded and time and place from where the responses
come.
Ensure that where the market research is crossing
international boundaries, that the terminology and
interpretations remain consistent.

Neurality is important. Ensure that when you pose


questions to consumers that they can made any
responses without being made guilty or uncomfortable
and ensure that your own preconceptions about green
agenda are not encoded with in the questions.

GREEN MARKETING STRATEGIES


AND TACTICS
4P’s OF GREEN MARKETING MIX
Every company has its own favorite 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.The four P’s of green
marketing mix of which a marketer should take care of
are:

 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.

There are three types of green advertising: -

• Ads that address a relationship between a product


or service and the biophysical environment
• Those that promote a green lifestyle by highlighting
a product or service
• Ads that present a corporate image of
environmental responsibility

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.

4’s OF GREEN MARKETING


 Safety of product.
 Satisfaction of customer.
 Social acceptability of a product.
 Sustainability of product.

STRATEGIES
The marketing strategies for green marketing include: -

 Marketing Audit (including internal and external


situation analysis)
 Develop a marketing plan outlining strategies with
regard to 4 P's
 Implement marketing strategies
 Plan results evaluation

GREEN MARKETING BASIS


For green marketing to be effective, following
points should be taken into account;
 Balance environmental issues with primary customer
needs. If customers aren’t going to use environmental
issues to gauge products and companies, and if
environmental initiatives are not going to drive a
purchasing decision or brand loyalty, green marketing
isn’t going to be an effective use of the marketing
budget.
 The green marketing claims must be credible.
Companies need to provide a level of detail about the
claims that make them meaningful, and be able to
substantiate those claims. Customers need to believe
the claims for green marketing to be effective.
 Green marketing must empower the customers. The
green marketing message must make customers feel
that by using the product or service they will make a
difference.
 Overcome customers’ concerns about price and
product performance. Educate customers about the
benefits the
product or service provides, and provide testimonials,
case studies, or research reinforcing the performance
and value claims.
Green marketing can be an effective and useful tool, but
it must align with customers’ needs. If environmental
concerns aren’t important to customers, green marketing
will not be effective. However, if customers do place high
importance on green products and sustainability issues,
green marketing can be a powerful way to positively
position the company and its products and services

BENEFITS OF GREEN MARKETING


Today's consumers are becoming more and more
conscious about the environment and are also becoming
socially responsible. Therefore, more companies are
responsible to consumers' aspirations for
environmentally less damaging or neutral products. Many
companies want to have an early-mover advantage as
they have to eventually move towards becoming green.
Companies that develop new and improved products and
services with environment inputs in mind give
themselves access to new markets, increase their profit
sustainability, and enjoy a competitive advantage over
the companies which are not concerned for the
environment. The key to successful green marketing
campaigns is not to be too forceful; instead simply make
potential customers aware of the tangible benefits of
thinking environmentally, which they can do by
frequenting your business

Green marketing, offers utilities and power marketers a


way to differentiate their numerous products. To date,
utility experience with green pricing has been quite
mixed. While some programs have met their goals rather
easily, others have been unable to educe significant
customer response, and have even encountered
resistance from environmental and consumer groups.
The common thought is that even though the marketing
is “green”, it’s an unfair practice that wishes to take
advantage of our planet and its many residents. The
benefits of being environmentally responsible are easy to
grasp. Very few people intend to do harm to the

environment and most have some comprehension of how


going green is the best thing to do on all fronts.
Achieving a green way of living has been on the minds,
and the business meetings of executives and business
owners more now than ever before. Some believe this
easily obtainable dream to be the start of a world-wide
neo-industrial revolution.

The overall benefits of green marketing are far more vast


than anyone can imagine. It’s the snowball effect that
could easily put the chill on global warming and take the
heat out of your financial stress. Apart from being a
consumer-friendly market, the green business is also just
smart. This has been a long time coming in a world that
immediately needs changes, so that we don’t forever
change into a downtrodden society who’s inhabiting a
planet on its last gasp. As a complete race of people, we
need green markets for so many major reasons; the
minor pleasantries are just an added bonus.

Some of the advantages of green marketing are,

* It ensures sustained long-term growth along with


profitability.
* It saves money in the long run, thought initially the
cost is more.
* It helps companies market their products and services
keeping the environment aspects in mind. It helps in
accessing the new markets and enjoying competitive
advantage.
* Most of the employees also feel proud and responsible
to be working for an environmentally responsible
company

ECO FRIENDLY PRODUCT


Eco-products are products with strong environmentally
sound features. Some of the eco products are as follow:

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-friendly furniture are good alternative to wooden


furniture. Eco-friendly furniture use less wood and more
use of waste products and other products, the use of
which are not a threat to our environment,

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.

ECO FRIENDLY PAINTS:


Eco friendly paints carry non-toxic elements, which have
lesser chemical element. Made of naturally derived raw
materials, Eco friendly paints are in great need for
healthier environment.

HANDICRAFT PRODUCTS:

Eco friendly handicraft items are mostly handmade and


are environment friendly, which use less consumption of
energy. Besides, these items also help eradicating
unemployment.
PAPER BAGS AND NOTEBOOKS:
Made of handmade papers, paper bags are best
alternative to plastic bags, which are not recyclable and
are danger to ecology. Using paper bags and notebooks
are aimed to save trees.

GREEN MARKETING CASES

* Philips Light's CFL


Philips Lighting's first shot at marketing a standalone
compact fluorescent light (CFL) bulb was Earth Light, at
$15 each versus 75 cents for incandescent bulbs. The
product had difficulty climbing out of its deep green
niche. The company re-launched the product as
"Marathon," underscoring its new "super long life"
positioning and promise of saving $26 in energy costs
over its five-year lifetime.

Finally, with the U.S. EPA's Energy Star label to add


credibility as well as new sensitivity to rising utility costs
and electricity shortages, sales climbed 12 percent in an
otherwise flat market.

* ELECTRONIC SECTOR

The consumer electronics sector provides room for using


green marketing to attract new customers. One example
of this is HP's promise to cut its global energy use 20
percent by the year 2010.[21] To accomplish this
reduction below 2005 levels,
The Hewlett-Packard Company announced plans to
deliver energy-efficient products and services and
institute energy-efficient operating practices in its
facilities worldwide.

* INTRODUCTION OF CNG IN DELHI

New Delhi, capital of India, was being polluted at a very


fast pace until Supreme Court of India forced a change to
alternative fuels. In 2002, a directive was issued to
completely adopt CNG in all public transport systems to
curb pollution

MARUTI: GREENING OF SUPPLY CHAIN


The company has remained ahead of regulatory
requirements in pursuit of environment protection and
energy conservation at its manufacturing facilities, and in
development of products that use fewer natural
resources and are environment friendly.

The company credited the 'Just-in-Time' philosophy


adopted and internalized by the employees as the prime
reason that helped to excel in this direction.

The company has been promoting 3R since its inception.


As a result the company has not only been able to
recycle 100% of treated waste water but also reduced
fresh water consumption.

The company has implemented rain water harvesting to


recharge the aquifers. Also, recyclable packing for
bought out components is being actively promoted. The
company has been facilitating implementation of
Environment Management System (EMS) at its suppliers'
end.
Regular training programs are conducted for all the
suppliers on EMS. Surveys are conducted to assess the
vendors who need more guidance. The systems and the
environmental performance of suppliers are audited.

HCL’s ENVIRONMENT MANAGEMENT POLICY


*
UNDER HCL ECOSAFE
In building a system to identify, develop and sustain the
maintenance of an environment management system at
corporate level they have formulated a program that is
known as HCL's ecosafe.

The aim is to encapsulate knowledge, awareness, and


key developments on all environmental issues faced by
today's world and to incorporate these in HCL's
operations assuring their commitment in delivering
quality products, solutions and services.

NOKIA THE TAKE BACK CAMPIAGN


Nokia is also doing its share in reducing the waste
generated by its products. Nokia’s Take-Back campaign
encourages users to give their old, broken, unused cell
phones and chargers for recycling at their Nokia Priority
dealers.

One of the great benefits of this campaign is that Nokia


doesn’t discriminate by brand – all cell phones and
chargers of any brand are accepted, thus reducing the
growing amount of electronic waste piling up on landfills.
It’s also a step toward green education: a recent survey
showed India at the bottom of the chart, with only 17
percent of respondents having knowledge about the
recyclability of phones.

The Take-Back campaign is running successfully in 85


countries. It was recently launched in India, specifically
in Bangalore, Delhi, Gurgaon and Ludhiana, with over
1,300 recycling bins distributed just in the first months.

ITC

* ITC has been 'Carbon Positive' three years in a row


(sequestering/storing twice the amount of CO2 than the
Company emits).

* 'Water Positive' six years in a row (creating three times


more Rainwater Harvesting potential than ITC's net
consumption).

* Close to 100% solid waste recycling.

* All Environment, Health and Safety Management


Systems in ITC conform to the best international
standards.

* ITC's businesses generate livelihoods for over 5 million


people.

* ITC's globally recognised e-Choupal initiative is the


world's largest rural digital infrastructure benefiting over
4 million farming families.

* ITC's Social and Farm Forestry initiative has greened


over 80,000 hectares creating an estimated 35 million
person days of employment among the disadvantaged.
* ITC's Watershed Development Initiative brings
precious water to nearly 35,000 hectares of drylands and
moisture-stressed areas.

* ITC's Sustainable Community Development initiatives


include women empowerment, supplementary education,
integrated animal husbandry programmes.

Some more Examples:

* McDonald's restaurant's napkins, bags are made of


recycled paper.

* Coca-Cola pumped syrup directly from tank instead of


plastic which saved 68 million pound/year.

* Badarpur Thermal Power station of NTPC in Delhi is


devising ways to utilize coal-ash that has been a major
source of air and water pollution.

* Barauni refinery of IOC is taken steps for restricting air


and water pollutants

Five simple rule to green marketing


1. Know your customer. If you want to sell a greener
product to consumers, you first need to make sure that
the consumer is aware of and concerned about the issues
that your product attempts to address. (Whirlpool
learned the hard way that consumers wouldn't pay a
premium for a CFC-free refrigerator because consumers
didn't know what CFCs were.
2. Empower consumers. Make sure that consumers
feel, by themselves or in concert with all the other users
of your product, that they can make a difference. This is
called "empowerment" and it's the main reason why
consumers buy greener products.

3. Be transparent. Consumers must believe in the


legitimacy of your product and the specific claims you
are making. Caution: There's a lot of skepticism out
there that is fueled by the raft of spurious claims made in
the "go-go" era of green marketing that occurred during
the late 80s-early90s - one brand of household cleaner
claimed to have been "environmentally friendly since
1884"!

4. Reassure the buyer. Consumers need to believe that


your product performs the job it's supposed to do - they
won't forego product quality in the name of the
environment.

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 ingredient- make sure that consumers can
afford the premium and feel it's worth it. Many
consumers, of course, cannot afford premiums for any
type of product these days, much less greener ones, so
keep this in mind develop your target audience and
product specifications."

PATHS TO GREENNESS

Green marketing involves focusing on promoting the


consumption of green products. Therefore, it becomes
the responsibility of the companies to adopt creativity
and insight, and be committed to the development of
environment-friendly products. This will help the society
in the long run. Companies which embark on green
marketing should adopt the following principles in their
path towards "greenness."

* Adopt new technology/process or modify existing


technology/process so as to reduce environmental
impact.
* Establish a management and control system that will
lead to the adherence of stringent environmental safety
norms.
* Using more environment-friendly raw materials at the
production stage itself.
* Explore possibilities of recycling of the used products
so that it can be used to offer similar or other benefits
with less wastage.

SOME PROBLEMS WITH GREEN


MARKETING
There are a number of potential problems that 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. Green marketing claims must clearly state
environmental benefits.

A problem of the 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. 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 (hydro
fluorocarbons) only to be told HFCs are also a
greenhouse gas. Some firms now use DME (di-methyl
ether) as an aerosol propellant, which may also harm the
ozone layer. Given the limited scientific knowledge at any
point, it may be impossible for a firm to 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. 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." Mobil Corporation who has followed the
competition and introduced "biodegradable" plastic
garbage bags, as because 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. 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.

SOLUTIONS
Following steps should be taken to solve the problem
regarding green marketing:

Organizing policies

Effective communication

Constantly refine the process and product

Environmentally responsible organizations should


attempt to minimize their waste
Public Opinion on Green Marketing:
* Now eco packaging is poised to become the next low-
hanging fruit of the clean tech world. Investors and
entrepreneurs this week at Europe's most important
annual clean tech conference reported unprecedented
interest in reducing the use of raw materials while finding
superior protection for food and other products.

* Consumers are increasingly putting plastic shopping


bags and non-green wrapping items on their naughty
list, according to Deloitte's 2008 Annual Holiday Survey.
Nearly half of the 13,000 consumers polled said they'd
be willing to pay more for green gifts. This was up from
17 percent last year.

* Consumers perceive themselves as being


environmentally responsible. Successful green marketing
requires matching a company's brand attributes with its
customers' identity as "green." An article suggested
examining green marketing from the perspective of the 4
P's of marketing -- product, price, placement and
promotion -- plus a 5th P, "prove it."

* Americans are quick to identify polluting companies as


"socially irresponsible" and make their purchasing
decisions accordingly, says a new survey. The poll also
found that American consumers between the ages of 18-
29 are more likely to spend more on organic,
environmentally preferable or fair trade products than
other age groups.

* The survey, by the research firm Global Market Insite,


quizzed more than 15,000 online consumers in the U.S.
and 16 other countries about their socially conscious
business practices.

* Americans placed the highest value on corporate


community involvement; when asked what factor was
the most important in determining if a business is
socially responsible, "contributing to the community"
(e.g. sponsorship, grants, employee volunteer programs)
came in highest with 47%. On the other hand, all of the
other countries surveyed (India, Canada, Australia,
Germany, China, and Japan) selected environmentally
preferable practices (recycling, using biodegradable
products) as the top factor.

* "In the high-tech era where employees are expected to


work 24/7, it's significant that Americans rate giving
back to the community as their top priority in recognizing
socially responsible companies," said Marjorie Thompson,
co-author of Brand Spirit: How Cause Related Marketing
Builds Brands. "It shows that people want to feel
connected to each other and that they are willing to
reward businesses who tap into this sense of mutual
support and belonging. Companies will need to start
thinking of their community programs as core to their
businesses and brands, and central to how they market
themselves."

* Not surprising, the U.S., along with other countries


such as India and China, which have experienced
environmental disasters caused by corporations (e.g.
Love Canal, Bhobal, Exxon Valdez) or have had to deal
with major polluting issues (e.g. coal plants,
manufacturing), believe that damaging the environment
is associated with acting socially irresponsible. Other
countries, including France (60%), Denmark (52%) and
Italy (45%) selected the use of child labor as the main
factor in making them think a corporation is socially
irresponsible.

* Thompson adds: "Based on the findings, Generation Y


is obviously more environmentally conscious and socially
savvy, which is expected given that many are aware of
the issues surrounding globalization and trade and how
this can negatively affect the environment, labor pool
and the local communities."

* Surprisingly, a large majority of online consumers in


the less developed countries of China and India, 91%
and 71% respectively, will pay more for socially
responsible products, while almost half (47%) of the U.K.
respondents indicated they would spend more for these
types of goods.

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.

Green marketing is still in its infancy and a lot of


research is to be done on green marketing to fully
explore its potential. Think of a refrigerator for example.
While we may have had to be convinced in the 1950s to
buy a refrigerator, we would have wanted the great
white box to look cool in the 1970s, but in today's
uncertain world, we might ask ourselves about the
impact of the chlorofluorocarbons (CFCs) that our
refrigerator is emitting and demand a more
environmentally friendly refrigerator.

So, if today's successful marketing is about appealing to


personal values and delivering consumer empowerment,
then surely the time is right to inject sustainable
development into the marketing mix to help address
some of gritty issues currently facing our planet. Green
marketing methods produce highly effective results. They
apply all of the steps you need to cut costs, raise
response rates and increase growth in the most
important marketing metric we are all held accountable
for—the bottom line.

The key elements of green marketing can be


summarised as under:

• A balanced approach to the social, technological,


economic and physical aspects of businesses and
societies.
• An emphasis on long term sustainable qualitative
development rather than short-term unsustainable
quantitative growth.
• A holistic approach aimed at reversing the
reductionalist and fragmented approach of previous
business theory and practice.
• A consideration of consumers as real human beings
rather than as hypothetical ‘rational
economic’entities.
• An emphasis on meeting the genuine needs of
consumers, rather than on stimulating superficial
desires.
• A recognition that consumers and society have
multiple and sometimes conflicting wants and
needs.
• A view of the company and all its activities as part
of the ‘product’ that is consumed.
• A recognition that the large scale long distance
nature of the current economy is not sustainable,
and that in the future small and local will be
beautiful.
• Embracing the concept of eco-performance which
incorporates the non-market outputs of the
company, with performance of the product during
and after use and the environmental impact of
companies which contribute to the creation and
marketing of the product elsewhere in the supply
chain.
• The pursuit of added socio-environmental value as
well as added techno-economic value.
REFERENCES
1. Chopra, S. Lakshmi (2007), "Turning Over a
New Leaf", Indian Management, Vol-64, April-
2007

2. Ottoman, J.A. et al, "Avoiding Green Marketing


Myopia", Environment, Vol-48, June-2006

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

7. Thomas L. Friedman (April 15, 2007), "The


Power of Green",

8. Michael Jay Polanski (1995). "Using strategic


alliances to develop credible green marketing".
Journal of Consumer Market
CONTENTS
PARTICULARS PAGE
NO
 INTRODUCTION 1
 MEANING OF GREEN MARKETING 2
 DEFINITION 3
 HISTORY 4
 IMPORTANCE 5-6
 ADOPTION 7-10
 GREEN CODE 11
 STRATEGIES AND TACTICS 12-
14
 BASIS 15
 BENEFITS 16-
17
 ECOPRODUCTS 18
 GREEN MARKETING CASES 19-
22
 RULES OF GREEN MARKETING 23-
24
 PROBLEM OF GREEN MARKETING 25-
26
 SOLUTIONS AND PUBLIC OPINION 27-
29
 CONCLUSIONS 30-
31
 REFERENCES 32

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

I take this opportunity to thank Mrs. Saloni


Pawan Diwan and Mr.Varun Bharat for
giving me insight knowledge and their
valuable advice, timely suggestions and
constant support throughout the project. I
would also like to thank my other lecturers
and my friends who shared their valuable
information which proved to be very helpful
while preparing the project.

Anda mungkin juga menyukai