ABSTRACT

In today's business world environmental issues plays an important role in marketing. All most all the governments around the world have concerned about green marketing activities that they have attempted to regulate them. There has been little attempt to academically examine environmental or green marketing. It introduces the terms and concepts of green marketing, briefly discuss why going green is important and also examine some of the reason that organizations are adopting a green marketing philosophy. It also focuses some of the problems with green marketing. It also discusses the keys to green marketing and how firma are using green marketing. This report also stresses upon the effect of green marketing on the consumers. Green marketing isn't just a catchphrase; it's a marketing strategy that can help you get more customers and make more money. But only if you do it right.

INTRODUCTION
According to the American Marketing Association, Green Marketing is the marketing of products that are presumed to be environmentally safe. Thus green marketing incorporates broad range of activities, including Product modification, Changes to the production process, Packaging changes, as well as Modifying advertising.

Green Marketing refers to the process of selling products and/or services based on their environmental benefits. Such a product or service may be environmentally friendly in it 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 input on the environment.

Goals of Green Marketing:

Eliminate the concept of waste Reinvent the concept of product Make prices reflect actual and environmental costs Make environmentalism profitable Bringing out product modifications Changing in production processes Packaging changes Modifying advertising.

Yet defining green marketing is not a simple task where several meanings intersect and contradict each other; an example of this will be the existence of varying social, environmental and retail definitions attached to this term. Other similar terms used are Environmental Marketing and Ecological Marketing. The legal implications of marketing claims call for caution. Misleading or overstated claims can lead to regulatory or civil challenges.

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. Green marketers though argue that it is a way to use the environmental benefits of a product or service to promote sales. Many consumers will choose products that do not damage the environment over less environmentally friendly products, even if they cost more. With green marketing, advertisers focus on environmental benefits to sell products such as biodegradable diapers, energy-efficient light bulbs, and environmentally safe detergents. People buy billions of dollars worth of goods and services every yearmany which harm the environment in how they are harvested, made, or used. Environmentalists support green marketing to encourage people to use environmentally preferable alternatives, and to offer incentives to manufacturers that develop more environmentally beneficial products.

BIRTH OF GREEEN MARKETING

The concept of green marketing has been around at least since the first Earth Day in 1970.But the idea did not catch on until the 1980s, when rising public interest in the environment led to a demand for more green products and services. Manufacturers responded to public interest by labelling hundreds of new products "environmentally friendly"making claims that products were biodegradable, compostable, energy efficient, or the like. The term Green Marketing came into prominence in the late 1980sand early 1990s. The green marketing has evolved over a period of time. According to Peattie (2001), 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.

NEED FOR GREEN MARKETING

Most of the companies are venturing into green marketing because of the following reasons: Issues like Global warming and depletion of ozone umbrella are important for the healthy survival. Every person rich or poor would be interested in quality life with full of health and vigour and so would the corporate class. Harm to environment cost by sustain business across the globe is realized now though off late. This sense is building corporate citizenship in the business class. So green marketing by the business class is still in the selfish anthological perspective of long term sustainable business and to please the consumer and obtain the sanction license by the governing body. With the proliferation of environmental stories in the press and broadcast media, individuals (whether as a consumer or acting for a company), are more aware of their personal responsibility to try to make a difference. Appealing to this need can increase response rates to marketing executions and build brand loyalty. Green marketing is very low on the agenda of most businesses and therefore its still an under-leveraged USP (Unique Selling Proposition). Effective green marketing targeted at the right audience will make a

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

1. Opportunities or competitive advantage

As demands change, many firms see these changes as an opportunity to be exploited and have a competitive advantage over firms marketing non-environmentally responsible alternatives. Some examples of firms who have strived to come more environmentally responsible, in an attempt to better satisfy their consumer needs are: McDonald's replaced its clam shell packaging with waxed paper because of increased consumer concern relating to polystyrene production and Ozone depletion. The Surf Excel detergent which saves water (advertised with the message"do bucket paani roz bachana). The energy-saving LG consumers durables are examples of green marketing. Xerox introduced a "high quality" recycled photocopier paper in an attempt to satisfy the demands of firms for less environmentally harmful products.

2. 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. There are examples of firms adopting both strategies. y Organizations like the Body Shop heavily promote the fact that they are environmentally responsible. y Fund managers and corporate developers too, are taking into account the environmental viability of the company they invest in Venture Capitalists are investing in green business because they believe it's a growth opportunity. Britain based HSBC became the world's first bank to go carbon neutral late last year and is now turning its 11000 buildings in 76countries worldwide into models of energy efficiency

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.

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.

3. Government 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. They want to reduce production of harmful goods or by-products , modify consumer and industry's use and/or consumption of harmful goods, 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 firms. For example: The ban of plastic bags in Mumbai, prohibition of smoking in public areas, etc. Directive to completely adopt CNG in all public transport systems to curb pollution in New Delhi. produced by

4. Competitive Pressure Another major force in the environmental marketing area has been firms' desire to maintain their competitive position. 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

5. Cost Or Profit Issues Reduction of harmful waste may lead to substantial cost savings. Sometimes, many firms develop symbiotic relationship whereby the waste generated by one company is used by another as a cost-effective raw material. .

GREEN MARKETIG MIX

Green Marketing mix consists of following:

1) Product Mix:
Entrepreneurs wanting to exploit emerging green markets either: Identify customers environmental needs and develop products to address these needs or will develop environmentally responsible products to have less impact than competitors. The increasingly wide variety of products on the market that support sustainable developments are: Products made from recycled goods Products that can be recycled or reused. Efficient products, which save water, energy or gasoline, save money and reduce Environmental impact. Organic products-many customers are prepared to pay a premium for organic products, which offer promise of quality. Organic butchers, for example, promote the added qualities such as taste and tenderness.

2) Price Mix:
. Most customers will only be prepared to pay a premium if there is a perception of additional product value. This value may be improved performance, function, design, visual appeal or taste. Environmental benefits will often be the deciding factor between products of equal value or quality. Environmentally responsible products, however are often less expensive when product lifecycle coast are taken into consideration, for example fuel-efficient vehicles, water efficient printing and non-hazardous products.

3) Place Mix:
The choice of where and when to make products available will have significant impact on the customers you attract. Very few customers go out of their way to buy green products merely for the sake of it. Marketers looking to successfully introduce new green products should position them broadly in the market place so they are not just appealing to a small green niche market. The location must also be consistent with the image you want to project and allow you to project your own image rather than being dominated or compromised by the image of venue. The location must

differentiate you from the competitors. This can be achieved by in-store promotions and visually appealing displays or using recycled materials to emphasize the environmental and other benefits.

4) Promotion Mix:
Promoting products and services to target markets include paid advertising, public relations, sales promotions, direct marketing and on-site promotions. Smart green marketers will be able to reinforce environmental credibility by using sustainable marketing and communication tools and practices. For example, many companies in the financial industry are providing electronic statements by email; emarketing is rapidly replacing more traditional marketing methods and printed materials can be produced using recycled materials and efficient processes such as waterless printing. Retailers, when promoting their environmental commitment to reduce the use of plastic bags and promote their green commitment, some retailers sell shopping bags and promote their green commitments.

Figure 1: The Green Marketing Components

MOVING TOWARDS GREEN MARKETING

The era of green marketing has begun. It has already been granted wide acceptance by all stakeholders. However, there is a need to lay down the standards and practices, in order to bring in objectivity in the judgment of various national and international agencies. This will not only encourage the activities of green marketing but shall also provide the much needed level playing fields to all.

Development of ISO 14000 Series of Standards:

ISO has been developed to help any company in any country to meet the goal of sustainable development and environmental friendliness. The ISO 14000 family of standards (i.e. ISO 14001, 14004, 14010, 14011 and 1412) were published as an official document in 1996. The ISO series aims to provide guidance for developing a comprehensive approach to environmental management and for standardizing some key environmental tools of analysis such as labelling and life cycle assessment.

Eco-Labelling Initiatives:
Eco label provide information regarding the environmental performance of products. The objective of eco-labelling is to provide authentication to genuine claims regarding the environmental impact of products and processes by manufacturers. In India the government has introduced the eco-mark scheme since 1981.

Eco-Labelling Schemes in India:

The Ministry of environment and forest of government of India has prescribed the Following criteria for products: That they cause substantially less pollution than comparable products in production, Usage and disposal, That they are recycled and/or recyclable whereas comparable products are not. That they contribute to a reduction on adverse environmental health consequences. That they comply with laws, standards and regulations pertaining to the environment. That their price is not exorbitantly higher than comparable products.

Eco-Mark in India:
Under the concept, products which are less harmful to the environment or have benign impact on environment through the various stages of development-manufacture, packaging, distribution, use and disposal or recycling may be awarded the Eco-Mark. An earthen pot has been chosen as the logo for EcoMark scheme in India. The logo Eco-Mark scheme signifies that the product which carries it does least damage to the environment.

Green Code
G: Generalizes with care. Consumer behaviour will not necessarily be consistent across different product types, and particular market segments may respond to certain issues on the green agenda but not others. R: Remembers, the validity of a piece of market research is not related to the degree to which it supports your preferred option.

E: Explores the context from which market research data comes. Be clear on the nature of the sample used, the questions asked, the way in which responses were recorded and the time and place from which the responses come. E: Ensures that where market research is crossing international borderlines, that the terminology and interpretation remains consistent. Terms like environment, green and conservation do not always translate precisely between languages. N: Neutrality is important. Ensure that when you pose questions to consumers, that they can make any response without being made to feel guilty or uncomfortable, and ensure that your own preconceptions about the green agenda (such as an assumption that green products will cost extra) are not encoded within the questions.

CHALLENGES IN GREEN MARKETING

Many organizations want to turn green, as an increasing number of consumers' want to associate themselves with environmental-friendly products. Alongside, one also witnesses confusion among the

consumers regarding the products. In particular, one often finds distrust regarding the credibility of green products. There are numerous challenges in the field of green marketing. Some of the major hurdles are as following:

1. Need For Standardization:

It is found that very less 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. Unless some regulatory bodies are involved in providing the certifications there will not be any verifiable means

2.

New Concept:

Indian literate and urban consumer is getting more aware about the merits of Green products. But it is still a new concept for the masses. The consumer needs to be educated and made aware of the environmental threats. The new green movements need to reach them asses and that will take a lot of time and effort.

3.

Patience and Perseverance:

The investors and corporate need to view the environment as a major long-term investment opportunity, the marketers need to look at the long-term benefits from this new green movement. It will require a lot of patience and no immediate results.

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 motivate consumers to switch brands or even pay a premium for the greener alternative. It is not going to help if a product is developed which is absolutely green in various aspects but does not pass the customer satisfaction criteria. This will lead to green myopia. Also if the green products are priced very high then again it will lose its market acceptability. Some Other Challenges Ahead In Green Marketing Are:

y y y y y

Green products require renewable and recyclable material, which is costly 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.

GREEN PRODUCTS: ITS CHARACTERISTICS

These products that are manufactured through green technology and that caused no environmental hazards are called green products. Promotion of green technology and green products is necessary for conservation of natural resources and sustainable development. We can define green products by following measures: y y y y y y y y Products that are originally grown Products those are recyclable, reusable and biodegradable Products with natural ingredients Products containing recycled contents, non-toxic chemical 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.

PRESENT TREND: GREEN MARKETING IN INDIA

y Organizations perceive environmental marketing to be an opportunity that can be used to achieve its objectives y y y Organizations believe they have a moral obligation to be more socially responsible Governmental bodies are forcing firms to become more responsible Competitors environmental activities pressure firms to change their environmental marketing activities y Cost factors associated with waste disposal or reductions in material usage forces firms to modify their behaviour

GREEN MARKETING INITIATIVES

ITC: Green Campaign
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 dry lands and moisture-stressed areas. ITC's Sustainable Community Development initiatives include women empowerment, supplementary education, integrated animal husbandry programmes.

Maruti: Greening The 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. The green co-efficient of this system is much better than the conventional system.

Hcl s: Environment Management & Ecosafe Policy

In building a system to identify, develop and sustain the maintenance of an environment management system at corporate level we have formulated a program that we proudly refer as HCL's eco safe. 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 our commitment in delivering quality products, solutions and services. The key objective under HCL eco Safe is targeted at integrating environmental management procedures into its business processes thereby protecting the environment, health, and safety of all its stakeholders. HCL commits to manufacture products that are environment friendly in all respects and are free from hazardous chemicals.

 HCL ecoSafe focuses on product lifecycle management to ensure that our products right from when they are manufactured, bought by customers, recovered at their end-of-life and recycled after useful life are done in an environmentally responsible manner

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 17"Marathon," underscoring its new "super long life" positioning and promise of saving $26in 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.

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.

Hindustan Petroleum:
Hindustan petroleum owns a massive e-waste recycling plants, where enormous shredder sand granulators reduce four million pounds of computer detritus each month to bite-sized chunks-the first step in reclaiming not just steel and plastic but also toxic chemicals like mercury and even some precious metals. HP will take back any brand of equipment; its own machines are 100 percent recyclable. It has promised to cut energy consumption by20 percent by 2010.

Proctor & Gamble:

Laundry detergents are also touting energy savings. Proctor & Gambles (P&G) newest market entry, Tide Coldwater, is designed to clean clothes effectively in cold water. About80 to 85 percent of the energy used to wash clothes from heating water. Working with utility companies, P and G found that consumers could save energy and resources by using cold rather than warm water. As energy and resource prices continue to soar, opportunities for products offering efficiency and savings are destined for market growth.

Referencehttp://www.climatechangecorp.com/content.asp?ContentID=4867
http://adage.com/greenmarketing08/article?article_id=127538 http://marketinggreen.wordpress.com/

http://www.carbonneutral.com.au/green_marketing_and_the_trade_practices_act.pdf http://www.greenmarketing.com/files/articles/Stafford-MyopiaJune06.pdf http://www.downloadit.org/free_files/filePages%20from%20Chapter%2028.%20Green%20marketing.pdf