GREEN MARKETING

Dr. Ronald Mani Sr. Assistant Professor JSBS, SHIATS Allahabad

Introduction to Green Marketing

The negative impact of human activities over environment is a matter of concern today. Governments all over the world making efforts to minimise human impact on environment. Today our society is more concerned with the natural environment. Understanding the society's new concern businesses have begun to modify their behaviour and have integrated environmental issues into organisational activities. Academic disciplines have integrated green issues in their literature. This is true with marketing subject too, and the terms like "Green Marketing" and "Environmental Marketing are included in syllabus. Governments all over the world have become so concerned about green marketing that they have attempted to regulate them.

Green Products
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.

Why?
Safe for environment Easy disposal Healthy Increase greenness Public pressure Govt. pressure Global warming Decrease in forest

Evolution of Green Marketing

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.

Definition and Meaning of Green Marketing Definition according to American Marketing Association - "Green marketing is the marketing of products that are presumed to be environmentally safe. According to Polonsky 1994 "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.

Definition of Green Marketing

The concept of green marketing was developed in the late 1980s and early 1990s. Yet defining green marketing is not a simple task. Indeed the terminology used in this area has varied, it includes: Green Marketing, Environmental Marketing and Ecological Marketing. 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.

Importance of Green Marketing

The question of why green marketing has increased in importance? It is quite simple and relies on the basic definition of Economics: Economics is the study of how people use their limited resources to try to satisfy unlimited wants. 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.

Reasons of using Green Marketing

Organizations perceive environmental marketing to be an opportunity that can be used to achieve its objectives; 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; Cost factors associated with waste disposal, or reductions in material usage forces firms to modify their behavior;

The Green Marketing MIX

The product mix of green marketing consists of 4ps of marketing with 3ps of social marketing. 4ps: Product, Price, Place & promotion 3ps: Public, Partnership & Policy

The Green Marketing MIX

Product: Eco-friendly product, should protect environment Price: In general high price Place: ecological packing, marketing local & seasonal product Promotion: promotion should be certified under ISO 14000

The Green Marketing MIX

People: Involvement of both consumer & employee. Partnership: Costly affair , required involvement of groups of organization. Policy: Different policies has to be adopt for social marketing.

Benefits
Healthy products Prevent soil degradation Increased life expectancy Enhance environmental awareness Protecting environment Protecting various animal species Improve agriculture Save energy Less pollution Recycling of products

Complications
Difficult to develop eco-friendly products High cost of product Promotion problem Awareness problems False claims Costly affair for organization

Challenges
1. Need for Standardization It is found that only 5% 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. A standard quality control board needs to be in place for such labeling and licensing.

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 the masses and that will take a lot of time and effort. By India's ayurvedic heritage, Indian consumers do appreciate the importance of using natural and herbal beauty products. Indian consumer is exposed to healthy living lifestyles such as yoga and natural food consumption. In those aspects the consumer is already aware and will be inclined to accept the green products.

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. Since it is a new concept and idea, it will have its own acceptance period.

4. 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.

Best examples are

Whirlpool introduced CFC free Refrigerators. Introduction of LED bulb. Jute bags used by various companies. Energy efficient products introduced by various organization like 5 star rating electrical equipments. Tata motors ltd. is setting up an eco-friendly showroom using natural material for its flooring and energy efficient lights. The Taj chain, is in the process of creating ecorooms which have energy efficient mini bars, organic bed linen and napkins made up of recycled papers. The rooms will have CFLs or Leds. Launched a low cost water purifier made up of natural ingredients. Developing indica EV, an electric car that would run on polymer lithium ion batteries.

Recently launched Samsung solar mobile guru. Battery operated L.G TV. Introduction of C.N.G in Delhi. 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. Reva, Indias very-own Bangalore-based company was the first in the world to commercially release an electric car. Honda India introduced its Civic Hybrid car

Wipro Infotech (Green It) was India's first company to launch environment friendly computer peripherals. Samsung, was the first to launch ecofriendly mobile handsets (made of renewable materials) W510 and F268- in India. Oil and Natural Gas Corporation Ltd (ONGC), Indias largest oil company, has introduced energy-efficient Mokshada Green Crematorium, which saves 60 to 70% of wood and a fourth of the burning time per cremation. ITC has introduced Paperkraft, a premium range of eco-friendly business paper.

IndusInd Bank installed the countrys first solar-powered ATM and thus brought about an eco-savvy change in the Indian banking sector. Suzlon Energy manufactures and markets wind turbines, which provide an alternative source of energy based on wind power. This green initiative taken by the company is extremely important for reducing the carbon footprint. Digital Tickets by Indian Railways. :Recently IRCTC has allowed its customers to carry PNR no. of their E-Tickets on their laptop and mobiles. Customers do not need to carry the printed version of their ticket anymore.

No Polythene carry bags for free :-Forest & Environmental Ministry of India has ordered to retail outlets like BigBazar, More, Central, D-Mart etc that they could provide polythene carry bags to customers only if customers are ready for pay for it. Green IT Project: State Bank of India:-By using eco and power friendly equipment in its 10,000 new ATMs, the banking giant has not only saved power costs and earned carbon credits, but also set the right example for others to follow. SBI is also entered into green service known as Green Channel Counter. SBI is providing many services like; paper less banking, no deposit slip, no withdrawal form, no checks, no money transactions form all these transaction are done through SBI shopping & ATM cards. State Bank of India turns to wind energy to reduce emissions. The wind project is the first step in the State Bank of India's green banking program dedicated to the reduction of its carbon footprint and promotion of energy efficient processes, especially among the bank's clients.

Lead Free Paints from Kansai Nerolac:- Kansai Nerolac has worked on removing hazardous heavy metals from their paints. The hazardous heavy metals like lead, mercury, chromium, arsenic and antimony can have adverse effects on humans. Lead in paints especially poses danger to human health where it can cause damage to Central Nervous System, kidney and reproductive system. Children are more prone to lead poisoning leading to lower intelligence levels and memory loss. Wipro's Green Machines:-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 Greenware. These products are RoHS (Restriction of Hazardous Substances) compliant thus reducing e-waste in the environment.

These are some of the success stories but if you look at it from Indian consumers (or consumption pattern) perspective-

There is very less uptake of solar batteries and equipments (cooker etc). Recently launched Samsung solar mobile Guru is not finding foot in market due to inconvenience in solar charging. Battery operated LG TV failed in Indian market to due to sound quality Very less consumption of CFL bulbs due to high cost. Consumption of plastic bags is very high in both rural and urban sector etc.

Conclusion
Green Marketing is best as it offers.. Consumer satisfaction as well as eco-friendly product & does not pollute environment. Also create awareness among public to save the world.

THANK YOU

Go Green Save Environment, Save Life