Green Marketing

Chapter I: “ABSTRACT” :-

'I'll go out for a breath of fresh air' is an often-heard phrase. But how many

of us realize that this has become irrelevant in today's world, because the quality

of air in our cities is anything but fresh.

Green marketing is a phenomenon which has developed particular important in

the modern market. This concept has enabled for the re-marketing and packaging

of existing products which already adhere to such guidelines. Additionally, the

development of green marketing has opened the door of opportunity for

companies to co-brand their products into separate line, lauding the green-

friendliness of some while ignoring that of others. Such marketing techniques will

be explained as a direct result of movement in the minds of the consumer

market. As a result of this businesses have increased their rate of targeting

consumers who are concerned about the environment. These same consumers

through their concern are interested in integrating environmental issues into their

purchasing decisions through their incorporation into the process and content of

the marketing strategy for whatever product may be required. This topic

discusses how businesses have increased their rate of targeting green

consumers, those who are concerned about the environment and allow it to affect

their purchasing decisions. The topic identifies the three particular segments of

green consumers and explores the challenges and opportunities businesses have

with green marketing. It also examines the present trends of green marketing in

India and describes the reason why companies are adopting it and future of green

marketing and concludes that green marketing is something that will

continuously grow in both practice and demand.

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Chapter II: “LITERATURE REVIEW” :-

Cateora Graham, in International Marketing, has drawn a parallel line

between green marketing and product development. The author has cited a

variety of examples where the importance of green marketing has been laid focus

on. Green marketing is a term used to identify concern with the environmental

consequences of a variety of marketing activities. It very evident from the

author’s research and examples the packaging and solid waste rules are

burdensome but there are successful cases of not only meeting local standards

but also being able to transfer this approach to other markets.

Philip Kotler and Kevin Lane Keller in Marketing Management has

initiated the topic by discussing about the relevance of green marketing in the

past few decades and has also discussed the explosion of environmentally

friendly products. However, according to the author from the branding

perspective green marketing programs have not been very successful. Marketers

tried and failed with green sales pitches over the last decade because of certain

obstacles which the movement encountered. The consumer behaviour is such

that most consumers appear unwillingly to give up the benefits of other

alternatives to choose green products.

Along with definitions from different sources, the authors Debraj Dutta and

Mahua Dutta, of Marketing Management, have given an explanation of what

is green marketing. According to the authors green marketing incorporates a

broad range of activities including the modification of product, production process

and packaging. The authors have also discussed a few literature sources that

have focused on green marketing and its relevance in today’s era. It was evident

that the possible reasons because of which organizations engage in green

marketing.

K.K.Shrivastava & Sujata Khandai, the author of Consumer Behaviour in

Indian Context, has discussed green marketing legislation in association with

the multinational corporations. These face a growing variety of legislation

designed to address environmental issues. Global concern for the environment

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extends beyond industrial pollution, hazardous waste disposal and rampant

deforestation to include issues that focus directly on consumer products.

Kenneth E. Clow & Donald Baack the authors of Integrated Advertising,

Promotion and Marketing Communication. According to the authors the

marketers need to be aware of the threats and opportunities associate with four

trends in the natural environment namely shortage of raw materials, increased

cost of energy, increased pollution levels and the changing roles of government.

New regulations hit certain industries very hard and also that consumers often

appear conflicted about the natural environment.

Jacquelyn A. Ottman the author of Green Marketing: Opportunity for

Innovation, has explained green marketing from an organizational standpoint,

environmental considerations should be integrated into all aspects of marketing

new product development and communications and all points in between.

According to the author environment should be balanced with primary customer

needs. The so-called "green consumer" movements in the U.S. and other

countries have struggled to reach critical mass and to remain in the forefront of

shoppers' minds. The lack of consensus by consumers, marketers, activists,

regulators, and influential people has slowed the growth of green products.

Prof. Sanjit Kumar Dash author of Green Marketing: Opportunities &

Challenges has mentioned that all activities designed to generate and facilitate

any exchange intended to satisfy human needs or wants such that satisfying of

these needs and wants occur with minimal detrimental input on the national

environment. The evolution of green marketing involves (three phases) from this

article. 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.

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Chapter III: “INTRODUCTION TO GREEN MARKETING” :-

The moment you step out of the house and are on the road you can actually see

the air getting polluted; a cloud of smoke from the exhaust of a bus, car, or a

scooter; smoke billowing from a factory chimney, fly ash  generated by thermal

power plants, and speeding cars causing dust to rise from the roads. Natural

phenomena such as the eruption of a volcano and even someone smoking a

cigarette can also cause air pollution. Air pollution is aggravated because of four

developments: increasing traffic, growing cities, rapid economic development,

and industrialization. The Industrial Revolution in Europe in the 19th century saw

the beginning of air pollution as we know it today, which has gradually become a

global problem. Air pollution is nothing new. Ever since the discovery of fire, less-

than-desirable substances have been vented into the air. Every Govt. is trying to

minimize this problem. But regardless of the efforts, air pollution continues to be

a serious local and world-wide problem.

Although environmental issues influence all human activities, few academic

disciplines have integrated green issues into their literature. This is especially

true of marketing. As society becomes more concerned with the natural

environment, businesses have begun to modify their behaviour in an attempt to

address society's "new" concerns. Some businesses have been quick to accept

concepts like environmental management systems and waste minimization, and

have integrated environmental issues into all organizational activities.

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.

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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 behaviour 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.

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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 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 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.

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.

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Chapter IV: “HISTORY OF GREEN MARKETING” :-

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”

1) 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.

2) 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.

3) 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

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brought scientific-environmental arguments to a wide public in an easy to

understand way.

Chapter V: “A-Z OF GREEN MARKETING” :-

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. 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.

MARKETING MIX OF GREEN MARKETING

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1) GREEN 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

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adhesives. It has designed this variety of shoes to emphasize that it has reduced

wastage and used environment-friendly materials.  

2) GREEN 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".

3) GREEN 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.

4) GREEN 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. Toyota is trying to push gas/electric

hybrid technology into much of its product line. It is also making the single largest

R&D investment in the every-elusive hydrogen car and promoting itself as the

first eco-friendly car company. International business machines Corporation (IBM)

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has revealed a portfolio of green retail store technologies and services to help

retailers improve energy efficiency in their IT operations. The centre piece of this

portfolio is the IBM SurePOS 700, a point-of-sale system that, according to IBM,

reduces power consumption by 36% or more. We even see the names of retail

outlets like "Reliance Fresh", Fresh@Namdhari Fresh and Desi, which while selling

fresh vegetables and fruits, transmit an innate communication of green

marketing.

Additional Social Marketing "P's" that are used in this process are as followed:

5) GREEN PUBLIC

Effective Social Marketing knows its audience, and can appeal to multiple groups

of people. "Public" is the external and internal groups involved in the program.

External publics include the target audience, secondary audiences, policymakers,

and gatekeepers, while the internal publics are those who are involved in some

way with either approval or implementation of the program.

6) GREEN PARTNERSHIP

Most social change issues, including "green" initiatives, are too complex for one

person or group to handle. Associating with other groups and initiatives to team

up strengthens the chance of efficacy.

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A GREEN MARKET IN NEWCASTLE

A GREEN MARKET IN NEWYORK

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WHAT ARE “GREEN PRODUCTS” OR “ENVIRONMENTAL PRODUCTS”

Although no consumer product has a zero impact on the environment, in

business, the terms “green product” and “environmental product” are used

commonly to describe those that strive to protect or enhance the natural

environment by conserving energy and/or resources and reducing or eliminating

use of toxic agents, pollution, and waste. Greener, more sustainable products

need to dramatically increase the productivity of natural resources, follow

biological/ cyclical production models, encourage dematerialization, and reinvest

in and contribute to the planet’s “natural” capital. Escalating energy prices,

concerns over foreign oil dependency, and calls for energy conservation are

creating business opportunities for energy-efficient products, clean energy, and

other environmentally sensitive innovations and products.

ONE OF THE MOST COMMONLY USED GREEN PRODUCTS – THE

PHILIPS CFL

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GREEN MARKETING: A CORPORATE INITIATIVE

It is important in today’s world because mankind has limited resources on the

earth and if we want long term sustainability of human life on this earth’s surface,

then companies has to learn to conserve these scarce natural resources and

create products that have less environmental damage. Otherwise the very

existence of humankind will be under question mark.

Corporate are going green from the grassroots level to sustain and win the

customers’ expectations. The environment is becoming increasingly important

part of the corporate reputations and they are actively participating in greening

the corporate strategy. Companies have converted almost all the products to

make them eco-friendly products. Following are the recent environment friendly

initiatives taken by the companies.

Sony: Green “ODO” Line Products

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Sony has recently launched developed and launched a range of innovative

products named as “ODO” line products also called as Eco-chic. These products

do not require AC adapter as they were powered by kinetic or solar energy. Sony

has used simplified packaging and recycled plastic in the manufacturing of ODO

products as a “Sustainable Product” initiative. The ODO line products comprise of

five products:

1. Spin N Snap: The spin and snap is a digital camera. It has two holes

which are used as viewfinder and chargers. On spinning the camera on

ones fingers generates kinetic energy and charges the device.

2. Push Power Play: Push power play is a display device with a roller on

the base. The rollers are used to charge the device by the friction of

the device with hard surface.

3. Crank N’ Capture: Crank and Capture is a digital video camera with a

crank used to operate and generate power.

4. Pull and Play: The pull and play is a stereo headphone with a cord to

simply pull and use.

5. Juice Box: The juice box is a credit card sized object used to recharge

the other ODO products.

Sony has also added a new Twirl N Take hand powered digital camera to the

odo line series. Twirl N take digital camera has a sleek stem circle design. It is

recharged by rolling the round wheel on the hard surface.

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IFC: Green Mutual Fun for Asia

The European countries are innovative new supports for actively involving the

Asian countries in green movement. Green Movement in Asian countries is

growing at slow pace as compare to other European and American countries. To

support the environment in Asian countries, IFC (International Finance

Corporation), a member of the World Bank, has recently announced a first

investment plan of €15 million for third party environment – focused private

equity fund. Along with the IFC, Swedish government risk capital company

Swedfund and French development company Prooarco will also invest euro 8

million and euro 5 million respectively in the same fund. The fund will be

managed by Aloe Private Equity. The funds will support the companies in India

and China which will focus on clean and renewable energy, waste recycling,

emissions controls, and eco-processes.

Maruti Suzuki

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.

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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

The Country’s largest car manufacturer had managed to slash energy

consumption per car at its Gurgaon factory by 26 per cent over the past six

years, while its carbon dioxide (CO2) emissions during car manufacturing

processes has come down 39 per cent in the past five years. The model with gas

as fuel was adopted by Maruti Suzuki India Limited as their Green Marketing

practices.

Bharat Petroleum

Bharat Petroleum launched a campaign to position itself as a responsible

corporate ‘green’ entity. Foraying into renewable energy-solar and wind power-it

installed solar panels on its service stations. It also ran a program to cut

production of greenhouse gases by 10% across its units worldwide and achieved

it much ahead of schedule. Cleaner fuels such as Greener Diesel (ultra low

sulphur content) and BP Auto gas were developed. Almost all of its plants are ISO

14001 certified. Currently it is running a program to contain its net emissions at

current levels for ten years.

Hindustan petroleum

Hindustan petroleum owns a massive e-waste recycling plants, where enormous

shredders and granulators reduce four million pounds of computer detritus each

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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 by 20 percent by 2010.

Proctor & Gamble

Laundry detergents are also touting energy savings. Proctor & Gamble’s (P&G)

newest market entry, Tide Coldwater, is designed to clean clothes effectively in

cold water. About 80 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.

ITC

ITC has been 'Carbon Positive’ for three years in a row sequestering/storing twice

the amount of CO2 than the Company emits. It has been 'Water Positive' six

years in a row creating three times more Rainwater Harvesting potential than

ITC's net consumption. It has obtained 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 recognized 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 programs.

WHY IS GREEN MARKETING IMPORTANT ?

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The question of why green marketing has increased in importance 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.”

Thus mankind has limited resources on the earth, with which she/he must

attempt to provide for the worlds' unlimited wants. 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.

WHY ARE FIRMS USING GREEN MARKETING?

When looking through the literature there are several suggested reasons for firms

increased use of Green Marketing. Five possible reasons cited are:

1. Organizations perceive environmental marketing to be an opportunity

that can be used to achieve its objectives;

2. Organizations believe they have a moral obligation to be more socially

responsible;

3. Governmental bodies are forcing firms to become more responsible;

4. Competitors' environmental activities pressure firms to change their

environmental marketing activities; and

5. Cost factors associated with waste disposal, or reductions in material

usage forces firms to modify their behaviour.

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DELHI’S FAMOUS CNG AUTORICKSHAW

OPPORTUNITIES

It appears that 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 behaviour, including their purchasing behaviour, due

to environmental reasons. As demands change, many firms see these changes as

an opportunity to be exploited.

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Given these figures, 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 needs.

1) McDonald's replaced its clam shell packaging with waxed paper

because of increased consumer concern relating to polystyrene

production and Ozone depletion.

2) Tuna manufacturers modified their fishing techniques because of the

increased concern over driftnet fishing, and the resulting death of

dolphins.

3) 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 behaviour. 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 behaviour,

their claims, or the effectiveness of their products.

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

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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.

SOME COMPANIES THAT USE GREEN MARKETING AS SOCIAL

RESPONSIBILITY

THE 3C’s OF MATKETING GREEN PRODUCTS

The analysis of past research and marketing strategies finds that successful

green products have avoided green marketing myopia by following three

important principles: “The Three Cs” of consumer value positioning,

calibration of consumer knowledge, and credibility of product claims.

1) Consumer Value Positioning

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The marketing of successfully established green products showcases non-green

consumer value, and there are at least five desirable benefits commonly

associated with green products:

1.1. Efficiency and cost effectiveness;

1.2. Health and safety;

1.3. Performance;

1.4. Symbolism and status; and

1.5. Convenience.

Additionally, when these five consumer value propositions are not inherent in the

green product, successful green marketing programs bundle (that is, add to the

product design or market offering) desirable consumer value to broaden the

green product’s appeal. In practice, the implication is that product designers and

marketers need to align environmental products’ consumer value (such as money

savings) to relevant consumer market segments (for example, cost conscious

consumers).

1.1 Efficiency and Cost Effectiveness

The common inherent benefit of many green products is their potential energy

and resource efficiency. Given sky-rocketing energy prices and tax incentives for

fuel-efficient cars and energy saving home improvements and appliances, long-

term savings have convinced cost-conscious consumers to buy green.

Recently, the home appliance industry made great strides in developing energy

efficient products to achieve EPA’s Energy Star rating. For example, Energy Star

refrigerators use at least 15 percent less energy and dishwashers use at least

percent less energy than do traditional models. Consequently, an Energy Star

product often commands a price premium. Whirlpool’s popular Duet frontloading

washer and dryer, for example, cost more than $2,000, about double the price of

conventional units; however, the washers can save up to 12,000 gallons of water

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and $110 on electricity annually compared to standard models (Energy Star does

not rate dryers). Laundry detergents are also touting energy savings. Procter &

Gamble’s (P&G) newest market entry, Tide Coldwater, is designed to clean

clothes effectively in cold water. About 80 to 85 percent of the energy used to

wash clothes comes from heating water. Working with utility companies, P&G

found that consumers could save an average of $63 per year by using cold rather

than warm water. Adopting Tide Coldwater gives added confidence to consumers

already washing in cold water. As energy and resource prices continue to soar,

opportunities for products offering efficiency and savings are destined for market

growth.

1.2 Health and Safety

Concerns over exposure to toxic chemicals, hormones, or drugs in everyday

products have made health and safety important choice considerations,

especially among vulnerable consumers, such as pregnant women, children, and

the elderly. Because most environmental products are grown or designed to

minimize or eliminate the use of toxic agents and adulterating processes, market

positioning on consumer safety and health can achieve broad appeal among

health-conscious consumers. Sales of organic foods, for example, have grown

considerably in the wake of public fear over “mad cow” disease; antibiotic- laced

meats, mercury in fish, and genetically modified foods. Mainstream appeal of

organics is not derived from marketers promoting the advantages of free-range

animal ranching and pesticide free soil. Rather, market positioning of organics as

flavourful, healthy alternatives to factory-farm foods has convinced consumers to

pay a premium for them.

1.3 Performance

The conventional wisdom is that green products don’t work as well as

“non-green” ones. This is a legacy from the first generation of environmentally

sensitive products that clearly were inferior. Consumer perception of green

cleaning agents introduced in health food stores in the 1960s and 1970s, for

example, was that “they cost twice as much to remove half the grime.” Today,

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however, many green products are designed to perform better than conventional

ones and can command a price premium. For example, in addition to energy

efficiency, front-loading washers clean better and are gentler on clothes

compared to conventional top-loading machines because they spin clothes in a

motion similar to clothes driers and use centrifugal force to pull dirt and water

away from clothes. By contrast, most top-loading washers use agitators to pull

clothes through tanks of water, reducing cleaning and increasing wear on clothes.

Consequently, the efficiency and high performance benefits of top-loading

washers justify their premium prices.

Homeowners commonly build decks with cedar, redwood, or pressure-treated

pine (which historically was treated with toxic agents such as arsenic). Wood

requires stain or paint and periodic applications of chemical preservatives for

maintenance. Increasingly, however, composite deck material made from

recycled milk jugs and wood fibre, such as Weyerhaeuser’s ChoiceDek, is

marketed as the smarter alternative. Composites are attractive, durable, and low

maintenance. They do not contain toxic chemicals and never need staining or

chemical preservatives. Accordingly, they command a price premium — as much

as two to three times the cost of pressure-treated pine and 15 percent more than

cedar or redwood.

In sum, “high performance” positioning can broaden green product appeal.

1.4 Symbolism and Status

As mentioned earlier, the Prius, Toyota’s gas-electric hybrid, has come to

epitomize “green chic.” According to many automobile analysts, the cool-kid

cachet that comes with being an early adopter of the quirky-looking hybrid

vehicle trend continues to partly motivate sales. Establishing a green chic appeal,

however, isn’t easy. According to popular culture experts, green marketing

must appear grass-roots driven and humorous without sounding

preachy. To appeal to young people, conservation and green

consumption need the unsolicited endorsement of high-profile

celebrities and connection to cool technology. Prius has capitalized on its

evangelical following and high-tech image with some satirical ads, including a

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television commercial comparing the hybrid with Neil Armstrong’s moon landing

(“That’s one small step on the accelerator, one giant leap for mankind”) and

product placements in popular Hollywood films and sitcoms (such as Curb Your

Enthusiasm). More automobile analysts, the cool-kid cachet that comes with

being an early adopter of the quirky-looking hybrid vehicle trend continues to

partly motivate sales.

THE GREEN CHIC SYMBOL

In business, where office furniture symbolizes the cachet of corporate image and

status, the ergonomically designed “Think” chair is marketed as the chair “with a

brain and a conscience.” Produced by Steelcase, the world’s largest office

furniture manufacturer, the Think chair embodies the latest in “cradle to cradle”

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(C2C) design and manufacturing. C2C, which describes products that can be

ultimately returned to technical or biological nutrients, encourages industrial

designers to create products free of harmful agents and processes that can be

recycled easily into new products (such as metals and plastics) or safely returned

to the earth (such as plant-based materials). Made without any known

carcinogens, the Think chair is 99 percent recyclable; it disassembles with basic

hand tools in about five minutes, and parts are stamped with icons showing

recycling options. Leveraging its award-winning design and sleek comfort, the

Think chair is positioned as symbolizing the smart, socially responsible office. In

sum, green products can be positioned as status symbols.

1.5 Convenience

Many energy-efficient products offer inherent convenience benefits that can be

showcased for competitive advantage. CFL bulbs, for example, need infrequent

replacement and gas-electric hybrid cars require fewer refuelling stops—benefits

that are highlighted in their marketing communications. Another efficient

alternative to incandescent bulbs are light emitting diodes (LEDs): They are even

more efficient and longer-lasting than CFL bulbs; emit a clearer, brighter light;

and are virtually unbreakable even in cold and hot weather. LEDs are used in

traffic lights due to their high-performance convenience.

To encourage hybrid vehicle adoption, some states and cities are granting their

drivers the convenience of free parking and solo-occupant access to HOV lanes. A

Toyota spokesperson recently told the Los Angeles Times, “Many customers are

telling us the carpool lane is the main reason for buying now.” Toyota highlights

the carpool benefit on its Prius Web site, and convenience has become an

incentive to drive efficient hybrid cars in traffic- congested states like California

and Virginia. Critics have charged, however, that such incentives clog carpool

lanes and reinforce a “one car, one person” lifestyle over alternative

transportation. In response, the Virginia legislature has more recently enacted

curbs on hybrid driver’s use of HOV lanes during peak hours, requiring three or

more people per vehicle, except for those that have been grandfathered in.

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Solar power was once used only for supplying electricity in remote areas (for

example, while camping in the wilderness or boating or in homes situated off the

power grid). That convenience, however, is being exploited for other applications.

In landscaping, for example, self-contained solar-powered outdoor evening lights

that recharge automatically during the day eliminate the need for electrical hook-

ups and offer flexibility for reconfiguration. With society’s increasing mobility and

reliance on electronics, solar power’s convenience is also manifest in solar-

powered calculators, wrist watches, and other gadgets, eliminating worries over

dying batteries.

1.6 Bundling

Some green products do not offer any of the inherent five consumer

desired benefits noted above. This was the case when energy-efficient and

CFC-free refrigerators were introduced in China in the 1990s. While Chinese

consumers preferred and were willing to pay about 15 percent more for

refrigerators that were “energy efficient,” they did not connect the environmental

advantage of “CFC-free” with either energy efficiency or savings. Consequently,

the “CFC-free” feature had little impact on purchase decisions. To encourage

demand, the CFC-free feature was bundled with attributes desired by Chinese

consumers, which included energy efficiency, savings, brand/quality, and

outstanding after-sales service. Given consumer demand for convenience,

incorporating time-saving or ease-of- use features into green products can further

expand their mainstream acceptance. Ford’s hybrid Escape SUV comes with an

optional 110-volt AC power outlet suitable for work, tailgating, or camping.

Convenience has also enhanced the appeal of Interface’s recyclable FLOR

carpeting, which is marketed as “practical, goof-proof, and versatile.” FLOR

comes in modular square tiles with four peel-and-stick dots on the back for easy

installation (and pull up for altering, recycling, or washing with water in the sink).

Modularity offers versatility to assemble tiles for a custom look. Interface

promotes the idea that its carpet tiles can be changed and reconfigured in

minutes to dress up a room for any occasion. The tiles come in pizza-style boxes

for storage, and ease of use is FLOR’s primary consumer appeal.

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Austin (Texas) Energy’s “Green Choice” program has led the US in renewable

energy sales for the past three years. In 2006, demand for wind energy outpaced

supply so that the utility resorted to selecting new “Green Choice” subscribers by

lottery. While most utilities find it challenging to sell green electricity at a

premium price on its environmental merit, Austin Energy’s success comes

from bundling three benefits that appeal to commercial power users:

First, Green Choice customers are recognized in broadcast media for their

corporate responsibility; second, the green power is marketed as “home grown,”

appealing to Texan loyalties; and third, the program offers a fixed price that is

locked in for 10 years. Because wind power’s cost is derived primarily from the

construction of wind farms and is not subject to volatile fossil fuel costs, Austin

Energy passes its inherent price stability onto its Green Choice customers. Thus,

companies participating in Green Choice enjoy the predictability of their future

energy costs in an otherwise volatile energy market.

The analysis suggests that successful green marketing programs have broadened

the consumer appeal of green products by convincing consumers of their “non-

green” consumer value. The lesson for crafting effective green marketing

strategies is that planners need to identify the inherent consumer value

of green product attributes (for example, energy efficiency’s inherent long-

term money savings) or bundle desired consumer value into green

products (such as fixed pricing of wind power) and to draw marketing

attention to this consumer value.

2. Calibration of Consumer Knowledge

Many of the successful green products in the analysis described here employ

compelling, educational marketing messages and slogans that connect

green product attributes with desired consumer value. That is, the

marketing programs successfully calibrated consumer knowledge to recognize

the green product’s consumer benefits. In many instances, the environmental

benefit was positioned as secondary, if mentioned at all. Changes made in EPA’s

Energy Star logo provide an example, illustrating the program’s improved

message calibration over the years. One of Energy Star’s early marketing

messages, “EPA Pollution Preventer,” was not only ambiguous but myopically

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focused on pollution rather than a more mainstream consumer benefit. A later

promotional message, “Saving The Earth. Saving Your Money.” better associated

energy efficiency with consumer value, and one of its more recent slogans,

“Money Isn’t All You’re Saving,” touts economic savings as the chief benefit. This

newest slogan also encourages consumers to think implicitly about what else

they are “saving”—the logo’s illustration of the Earth suggests the answer,

educating consumers that “saving the Earth” can also meet consumer self-

interest.

The connection between environmental benefit and consumer value is evident in

Earthbound Farm Organics’ slogan, “Delicious produce is our business, but health

is our bottom line,” which communicates that pesticide-free produce is flavourful

and healthy. Likewise, Tide Cold water’s “Deep Clean. Save Green.” slogan not

only assures consumers of the detergent’s cleaning performance, but the term

“green” offers a double meaning, connecting Tide’s cost saving with its

environmental benefit. Citizen’s solar-powered Eco-Drive watch’s slogan,

“Unstoppable Calibre,” communicates the product’s convenience and

performance (that is, the battery will not die) as well as prestige. Some

compelling marketing communications educate consumers to recognize green

products as “solutions” for their personal needs and the environment. When

introducing its Renewal brand, Rayovac positioned the reusable alkaline batteries

as a solution for heavy battery users and the environment with concurrent ads

touting “How to save $150 on a CD player that costs $100” and “How to save 147

batteries from going to landfills.” Complementing the money savings and landfill

angles, another ad in the campaign featured sports star Michael Jordan

proclaiming, “More Power. More Music. And More Game Time.” to connect

Renewal batteries’ performance to convenience. In practice, the analysis

conducted here suggests that advertising that draws attention to how the

environmental product benefit can deliver desired personal value can broaden

consumer acceptance of green products.

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3. Credibility of Product Claims

Credibility is the foundation of effective green marketing. Green products must

meet or exceed consumer expectations by delivering their promised consumer

value and providing substantive environmental benefits. Often, consumers don’t

have the expertise or ability to verify green products’ environmental and

consumer values, creating misperceptions and scepticism. As exemplified in the

case of Mobil’s Hefty photodegradable plastic trash bag described earlier, green

marketing that touts a product’s or a company’s environmental credentials can

spark the scrutiny of advocacy groups or regulators. For example, although it was

approved by the U.S. Food and Drug Administration, sugar substitute Splenda’s

“Made from sugar, so it tastes like sugar” slogan and claim of being “natural”

have been challenged by the Sugar Association and Generation Green, a health

advocacy group, as misleading given that its processing results in a product that

is “unrecognizable as sugar.”

3.1. Third Party Endorsements and Eco-Certifications

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Expert third parties with respected standards for environmental testing (such as

independent laboratories, government agencies, private consultants, or nonprofit

advocacy organizations) can provide green product endorsements and/ or “seals

of approval” to help clarify and bolster the believability of product claims. The

“Energy Star” label, discussed earlier, is a common certification that distinguishes

certain electronic products as consuming up to 30 percent less energy than

comparable alternatives. The U.S. Department of Agriculture’s “USDA Organic”

certifies the production and handling of organic produce and dairy products.

Green Seal and Scientific Certification Systems emblems certify a broad spectrum

of green products. Green Seal sets specific criteria for various categories of

products, ranging from paints to cleaning agents to hotel properties, and for a

fee, companies can have their products evaluated and monitored annually for

certification. Green Seal has certified the Hyatt Regency in Washington, DC, for

the hotel’s comprehensive energy and water conservation, recycling programs,

and environmental practices. By contrast, Scientific Certification Systems (SCS)

certifies specific product claims or provides a detailed “eco-profile” for a

product’s environmental impact for display on product labels for a broad array of

products, from agricultural products to fisheries to construction.

Although eco-certifications differentiate products and aid in consumer decision

making, they are not without controversy. The science behind eco-seals can

appear subjective and/or complex, and critics may take issue with certification

criteria. For example, Green Order, a New York-based environmental consulting

firm, has devised a scorecard to evaluate clean-tech products marketed in

General Electric’s “Ecomagination” initiative, which range from fuel-efficient

aircraft engines to wind turbines to water treatment technologies. Only those

passing Green Order’s criteria are marketed as Ecomagination products, but

critics have questioned GE’s inclusion of “cleaner coal” (that is, coal gasification

for cleaner burning and sequestration of carbon dioxide emissions) as an

“Ecomagination” product.

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3.2. Word-of-Mouth Evangelism and the Internet

Increasingly, consumers have grown sceptical of commercial messages, and

they’re turning to the collective wisdom and experience of their friends and peers

about products. Word-of-mouth or “buzz” is perceived to be very credible,

especially as consumers consider and try to comprehend complex product

innovations. The Internet, through e-mail and its vast, accessible repository of

information, Web sites, search engines, blogs, product ratings sites, podcasts,

and other digital platforms, has opened significant opportunities for tapping

consumers’ social and communication networks to diffuse credible “word-of-

mouth” (buzz facilitated by the Internet) about green products. In 2005, Proctor &

Gamble partnered with the non-profit organization, the Alliance to Save Energy

(ASE), in a “viral marketing” campaign to spread news about the money-saving

benefits of laundering clothes in cold water with specially formulated Tide

Coldwater. ASE provided credibility for the detergent by auditing and backing

P&G’s claims that consumers could save an average of $63 a year if they

switched from warm to cold water washes. ASE sent e-mail promotions

encouraging consumers to visit Tide.com, an interactive Web site and take the

“Coldwater Challenge” by registering to receive a free sample. Visitors could

calculate how much money they would save by using the detergent, learn other

energy-saving laundry tips, and refer email addresses of their friends to take the

challenge as well. Tide.com offered an engaging map of the United States where,

over time, visitors could track and watch their personal networks grow across the

country when their friends logged onto the site to request a free sample.

Given the immediacy of e-mail and the Internet, word-of-mouth is fast becoming

an important vehicle for spreading credible news about new products. According

to the Pew Internet & American Life Project, 44 percent of online U.S. adults

(about 50 million Americans) are “content creators,” meaning that they

contribute to the Internet via blogs, product recommendations, and reviews. To

facilitate buzz, however, marketers need to create credible messages, stories,

and Web sites about their products that are so compelling, interesting, and/or

entertaining that consumers will seek the information out and forward it to their

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friends and family. The fact that P&G was able to achieve this for a low-

involvement product is quite remarkable.

STRATEGIES AND ADVANTAGES OF GREEN MARKETING

a. Minimize Direct Environmental Impact

b. Use Sustainable Sources of Raw Material

c. Source-Reduce Products and Packaging

d. Conserve Natural Resources, Habitats, and Endangered Species

e. Use Recycled Content

f. Make Products Energy Efficient

g. Maximize Consumer and Environmental Safety

h. Make Products More Durable

i. Make Products and Packaging Reusable or Refillable

j. Design Products for Remanufacturing, Recycling, and Repair

THE SEVEN STRATEGIES OF GREEN MARKETING SUCCESS

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GREEN MARKETING MYOPIA

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Green marketing must satisfy two objectives: improved environmental quality

and customer satisfaction. Misjudging either or overemphasizing the former at

the expense of the latter can be termed “green marketing myopia”. In 1960,

Harvard business professor Theodore Levitt introduced the concept of

“marketing myopia” in a now-famous and influential article in the Harvard

Business Review. In it, he characterized the common pitfall of companies’ tunnel

vision, which focused on “managing products” (that is, product features,

functions, and efficient production) instead of “meeting customers’ needs” (that

is, adapting to consumer expectations and anticipation of future desires).

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Levitt warned that a corporate preoccupation on products rather than consumer

needs was doomed to failure because consumers select products and new

innovations that offer benefits they desire. Research indicates that many green

products have failed because of green marketing myopia—marketers’ myopic

focus on their products’ “greenness” over the broader expectations of consumers

or other market players (such as regulators or activists).

AN EXAMPLE OF GREEN MARKETING MYOPIA

PHILIPS MARATHON BULBS

In 1994, Philips launched the “Earthlight,” a super energy-efficient compact

fluorescent light (CFL) bulb designed to be an environmentally preferable

substitute for the traditional energy-intensive incandescent bulb. The CFL’s

clumsy shape, however, was incompatible with most conventional lamps, and

sales languished. After studying consumer response, Philips reintroduced the

product in 2000 under the name “Marathon,” to emphasize the bulb’s five year

life. New designs offered the look and versatility of conventional incandescent

light bulbs and the promise of more than $20 in energy savings over the

product’s life span compared to incandescent bulbs.

The new bulbs were also certified by the U.S. Environmental Protection Agency’s

(EPA) Energy Star label. Repositioning CFL bulbs’ features into advantages that

resonated with consumer values—convenience, ease-of-use, and credible cost

savings—ultimately sparked an annual sales growth of 12 percent in a mature

product market.

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Philips’ experience provides a valuable lesson on how to avoid the common pitfall

of “green marketing myopia.” Philips called its original entry “Earthlight” to

communicate the CFL bulbs’ environmental advantage. While noble, the benefit

appealed to only the deepest green niche of consumers. The vast majority of

consumers, however, will ask, “If I use ‘green’ products, what’s in it for me?” In

practice, green appeals are not likely to attract mainstream consumers unless

they also offer a desirable benefit, such as cost-savings or improved product

performance. To avoid green marketing myopia, marketers must fulfil consumer

needs and interests beyond what is good for the environment. Thus we see how

green marketing myopia was faced by the Philips while trying to bring into

market the environment friendly light bulbs.

TOYOTA PRIUS

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Consider the Toyota Prius, the gas-electric hybrid vehicle that achieves about 44

miles per gallon of gasoline. In recent years, Toyota’s production has hardly kept

pace with the growing demand, with buyers enduring long waits and paying

thousands above the car’s sticker price. Consequently, other carmakers have

scrambled to launch their own hybrids. However, despite higher gas prices,

analysts assert that it can take 5 to 20 years for lower gas expenses to offset

many hybrid cars’ higher prices. Thus, economics alone cannot explain their

growing popularity.

Analysts offer several reasons for the Prius’ market demand. Initially, the buzz

over the Prius got a boost at the 2003 Academy Awards when celebrities such as

Cameron Diaz, Harrison Ford, Susan Sarandon, and Robin Williams abandoned

stretch limousines and oversized sport utility vehicles, arriving in Priuses to

symbolize support for reducing America’s dependence on foreign oil. Since then,

the quirky-looking Prius’ badge of “conspicuous conservation” has satisfied many

drivers’ desires to turn heads and make a statement about their social

responsibility, among them Google founders Larry Page and Sergey Brin,

columnist Arianna Huffington, comic Bill Maher, and Charles, Prince of Wales. The

Prius ultimately was named Motor Trend’s Car of the Year in 2004. The trendy

appeal of the Prius illustrates that some green products can leverage consumer

desires for being distinctive. Others say the Prius is just fun to drive—the dazzling

digital dashboard that offers continuous feedback on fuel efficiency and other car

operations provides an entertaining driving experience. More recently, however,

the Prius has garnered fans for more practical reasons. A 2006 Maritz Poll finds

that owners purchased hybrids because of the convenience of fewer fill-ups,

better performance, and the enjoyment of driving the latest technology. In some

states, the Prius and other high-mileage hybrid vehicles, such as Honda’s Insight,

are granted free parking and solo-occupancy access to high occupancy vehicle

(HOV) lanes. In sum, hybrid vehicles offer consumers several desirable benefits

that are not necessarily “green” benefits.

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SOME PROBLEMS WITH GOING GREEN

No matter why a firm uses green marketing there are a number of potential

problems that they 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. For example marketers in the US must ensure

their green marketing claims can meet the following set of criteria, in order to

comply with the FTC's guidelines. Green marketing claims must;

Clearly state environmental benefits;

Explain environmental characteristics;

Explain how benefits are achieved;

Ensure comparative differences are justified;

Ensure negative factors are taken into consideration; and

Only use meaningful terms and pictures.

Another problem firm’s 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. Take 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 (hydrofluorocarbons) only to be told HFCs are also

a greenhouse gas. Some firms now use DME (dimethyl ether) as an aerosol

propellant, which may also harm the ozone layer. Given the limited scientific

knowledge at any point in time, it may be impossible for a firm to be certain they

have made the correct environmental decision. This may explain why some firms,

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like Coca-Cola and Walt Disney World, are becoming socially responsible without

publicizing the point.

5 Reasons Why Green Marketing Is a New World

Unlike the physically bounded geographic world, the “new frontiers” of marketing

are continually emerging for the next great advertising explorers. However, just

as Giovanni da Verrazano’s explorations led to his demise at the hands of

cannibalistic natives, overly audacious marketing adventures can be fatal; if not

to your life then to your product. The combination of ethical circumspection,

smaller budgets, and divergent markets for green products necessitate the

abandonment of old forms of marketing, while still playing it safe enough to avoid

potentially lethal detours. As with the emergence of any new enterprise, the

flexibility of undefined practices has put a penumbra over the efficacy and

relevance of green marketing. To succeed in making green marketing a reputable

undertaking, boldly going where no marketer has gone before is not only a

prerogative, but an obligation.

The Use of New Formats

Utilizing the Internet

Branding of Green Products is More Difficult than Traditional Products

Green Marketing is a Niche Field, and Marketing Dollars Will Be Wasted

with Indiscriminate Advertising

Use the People Who Love Your Products to Promote Them, and Hear

From the Ones That Don’t

CASES RELATED TO GREEN MARKETING

CASE 1: Best Green IT Project: State Bank of India: Green IT@SBI

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; paperless banking, no deposit slip, no withdrawal

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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 State Bank of India became the first Indian bank to

harness wind energy through a 15-megawatt wind farm developed by Suzlon

Energy. The wind farm located in Coimbatore uses 10 Suzlon wind turbines, each

with a capacity of 1.5 MW. The wind farm is spread across three states – Tamil

Nadu, with 4.5 MW of wind capacity; Maharashtra, with 9 MW; and Gujarat, with

1.5 MW. 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.

CASE 2: Phillips’s "Marathon" CFL light bulb

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

CASE 3: India's 1st Green Stadium

The Thyagaraja Stadium stands tall in the quiet residential colony behind the

Capital's famous INA Market. It was jointly dedicated by Union Sports Minister MS

Gill and Chief Minister Sheila Dikshit on Friday. Journal of Engineering, Science

and Management Education Dikshit said that the stadium is going to be the first

green stadium in India, which has taken a series of steps to ensure energy

conservation and this stadium has been constructed as per the green building

concept with eco-friendly materials.

CASE 4: Introduction of CNG in Delhi

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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.

GREEN BRANDS

Green brands are those brands that consumers associate with environmental

conservation and sustainable business practices. Such brands appeal to

consumers who are becoming more aware of the need to protect the

environment. A green brand can add a unique selling point to a product and can

boost corporate image. However, if a company is found or perceived to overstate

its green practices its green brand may be criticized as “green wash”.

GREEN WASHING

In spite of its growing popularity, the green marketing movement faced serious

setbacks in the late 1980s because many industries made false claims about their

products and services. For instance, the environmental organization Corp Watch ,

which issues annually a list of the top ten "green washing" companies, included

BP Amoco for advertising its "Plug in the Sun" program, in which the company

installed solar panels in two hundred gas stations, while continuing to

aggressively lobby to drill for oil in the Arctic National Wildlife Refuge. Green

marketing can be a very powerful marketing strategy though when it's done right.

In a similar kind of case Chad’s green marketing campaign bombed because he

made the mistake of packaging his environmentally friendly product in

Styrofoam, emitting CFC’s. Without environmental labelling standards, consumers

could not tell which products and services were truly beneficial. Consumers

ended up paying extra for misrepresented products. The media came up with the

term "green washing" to describe cases where organizations misrepresented

themselves as environmentally responsible. So, While green marketing was

growing greatly as increasing numbers of consumers were willing to back their

environmental consciousnesses with their dollars, it can be dangerous. The public

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tends to be sceptical of green claims to begin with and companies can seriously

damage their brands and their sales if a green claim is discovered to be false or

contradicted by a company's other products or practices. Thus, in other words

presenting a product or service as green when it's not is called green washing.

GREEN PACKAGING

Green packaging is not just about reducing the amount of packaging but takes

package design, processing, disposal conditions and the entire product lifecycle

into consideration. Some of characteristics of sustainable packaging include:

1. Minimizing the amount of packaging used (weight and volume)

2. Minimizing the energy used for production and transportation of goods

3. Using packaging that can be reused again, such as bottles and

refillable ink cartridges

4. Using recycled and recyclable materials

5. Using biodegradable materials

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The Cradle to Cradle Approach

Cradle to Cradle Certification is carried out by McDonough Braungart Design

Chemistry (MBDC) consultants. The cradle to cradle concept holds that it is

possible to have products that follow the natural principles of regeneration and

create zero waste products. Each product is believed to consist of 2 components

the technical nutrients and biological nutrients. The technical nutrient can be

reused without degradation into an inferior product while the biological nutrient is

returned to nature at the end of its useful life. Besides being earth friendly, this

approach can lower costs for organizations and do away with the need for

landfills.

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Different Types of Sustainable Packaging

Sustainable packaging is made of recycled products, recyclable products,

biodegradable material and renewable raw materials. Some types of sustainable

packaging products are described below. The list is indicative and not exhaustive.

Packaging made out of recycled source material

Paper – is light weight, easy to print and can be recycled multiple

times by using relatively little energy. However, the chemicals used to

bleach paper may not be environmentally friendly and the replacement

of forests by monocultures reduces biological diversity. Unbleached,

post consumer waste paper is the best.

Glass Uses the least energy per pound to recycle. Additionally it is

chemically inert and can be recycled almost infinitely without

degrading. The disadvantage is that it is heavy and breakable.

Aluminium Is easy to recycle and can be moulded to almost any

shape. On the flip side mining for aluminium ore and aluminium

manufacture are highly energy intensive processes.

Synthetic biodegradable polyesters

These advanced materials are moisture resistant, and disintegrate in 12 weeks

under aerobic conditions. They are often used as a coating for protecting cheaper

biodegradable materials.

5 ways of making your packaging greener

1. Reduce packaging The ideal packaging is no packaging. Reduced

packaging translates to cost savings in material costs, transportation

and disposal.

2. Recycled material is better than recyclable products a

recyclable product may or may not be recycled. A recycled product on

the other hand has been recycled and therefore has a smaller

ecological footprint.

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3. Use Biodegradable materials Biodegradable plastics and polyesters

are available and so are paper containers, paper nuts, etc.

4. Do not mix products that are incompatible for recycling If two or

more polymers are used in making a package it may not be possible to

recycle the package. If you must use plastics try to stick to one single

plastic so that it is easy to recycle.

5. Design packages with other functional attributes A food

container shaped as a toy or a puzzle box that can double up as an

ornament store can ensure that packaging does not end up in landfills.

Choose the right partner – Green your packaging

Be Green Packaging

Be Green Packaging LLC is based out of Santa Barbara. The company provides

cradle to cradle certified, compostable packaging made from bulrush an annually

renewed plant. These packages are free from tree products and are made from

bulrush plants harvested from the wild and not cultivated commercially. The

impact on the biodiversity of the planet is therefore minimal. Some of the

products that need a cover have been provided with clear 100% recyclable PETE

lids.

Green Cell Foam

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Green Cell Foam provides coolers and other packaging solutions made from corn.

These can be easily composted, recycled or burnt safely. The natural material has

been used by Pharmaceutical companies like Sandoz, computer manufacturers

and automobile manufacturer Volvo to minimize their environmental impact. The

product is used for transporting heavy items like windshields on one hand and

delicate play station games on the other.

Globe Guard Products

Based out of Plainfield, Illinois, Globe Guard Products supplies reusable boxes,

100% recyclable poly padded paper, corrugated mailers made of 100% recycled

material, post consumer waste recycled paper labels, Oxodegradable stretch film,

eco friendly cushioning products and even gift bags made of treeless paper.

Green Packaging is available for almost every application.

GREEN LOGISTICS

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Logistics is the integrated management of all the activities required to move

products through the supply chain. For a typical product this supply chain

extends from a raw material source through the production and distribution

system to the point of consumption and the associated reverse logistics. The

logistical activities comprise freight transport, storage, inventory management,

materials handling and all the related information processing.

The main objective of logistics is to co-ordinate these activities in a way that

meets customer requirements at minimum cost. In the past this cost has been

defined in purely monetary terms. As concern for the environment rises,

companies must take more account of the external costs of logistics associated

mainly with climate change, air pollution, noise, vibration and accidents. This

research project is examining ways of reducing these externalities and achieving

a more sustainable balance between economic, environmental and social

objectives.

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Chapter VI: “PRESENCE OF GREENNESS IN INDUSTRIES” :-

To make products and services green the industries need to focus on bringing the

green in various aspects such as:

Supply Chain

Packaging

Raw Material

Product Innovations

Services

It is not enough just to develop a brand or a logo, or invest in an advertising

campaign, and then position a product as Green before consumers. Like any

other new concept, marketers must first educate the public about going green,

ensure product credibility, and establish trust. Moreover, since “Green” aspect of

the product is not a tangible attribute that the consumers receive the consumer

has to be convinced about the benefits of the green benefits of the product. It is

also important to understand how companies across the globe are innovating and

creating “Green” products.

“GREEN” IN SUPPLY CHAIN

Example: McDonald’s is often blamed for polluting the environment because

much of their packaging finishes up as roadside waste. It must be remembered

that it is the uncaring consumer who chooses to dispose of their waste in an

inappropriate fashion. With the intent to cut costs and work on eco-friendly image

and practices McDonald’s tried to reduce the amount of material disposed by its

stores. McDonalds asked the supplier to do away with the cartons for napkins.

The supplier suggested a better way and came up with dimpling pattern on

napkins, which enabled the supplier to pack 25% more napkins in one box and

reduction in shipping cost accordingly. McDonalds also allied with Environment

Defence Fund (EDF) and created a waste reduction plan. It also made a Paper

Task Force to focus on paper waste reduction and better solid waste

management.

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“GREEN” IN PACKAGING

Packaging is a key element of marketing mix for promoting “Green washing”. It

can also be an effective tool to display the “Green” component of the product.

Natural Package for a Natural Product

When creating product materials, markets need to remember that a “Green”

product is appealing to consumers for its benefits to the environment and for its

roots in natural resources. There should be a consistent look for the product

package, or materials that appear natural, not glossy or extravagant. “Green”

consumers tend to appreciate consistence in package and product. They will

appreciate the usage of recycled paper and other environment friendly materials.

That will help manufacturers/suppliers gain customer loyalty and product

credibility.

Third Party Certification Seal on Package

In order to win consumer trust and for product credibility many companies go in

for a third party certification. This helps build trust and acceptability by the

consumer.

A third party seal guarantees the consumer that the product fulfils its promise

and is true to his claim. One such third party in the USA is the Green-e Program of

the Centre for Resource Solutions. Certification provides an independent third-

party review of the program similar to the ISO 9000 or CMMI Six Sigma level of

certifications, which mat help build consumer confidence. Once a green product

earns certification, they can publicize this achievement and promote their

certification through the use of the Green-e logo on their marketing materials and

website.

“GREEN RAW MATERIAL”

This refers to using recycled material or using material, which does not have a

negative impact on natural resources like resulting in problems such as

deforestation and pollution.

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Example: Gridcore Systems International – demonstrated the use of

Recycled Building Material. The company was looking for an alternative building

material in-order to reduce the impact on environment. While researching they

discovered space board, a new type of building panel developed by the Forest

Products laboratory. Space board can be manufactured from various recycled or

agricultural fibres, and due to a honeycomb the interior design is just as strong as

and several times lighter than conventional fibreboard.

“GREEN” IN PRODUCT INNOVATION / DEVELOPMENT

This refers to either environment friendly or environment efficient products as

demonstrated by the following examples.

Example: Kodak’s Recyclable Camera When Kodak created its first

disposable camera it also solved the waste disposal problem by initiating a

‘camera take back’ scheme during picture processing. This not only reduced the

waste disposable problem, it also saved Kodak the manufacturing costs for new

cameras. This made it completely recycled camera.

Example: Philips Earthlight Compact Fluorescent Light Bulbs With

relentless efforts on research and development the company was successful in

producing compact fluorescent light bulbs, which are the most energy efficient

bulbs.

“GREEN” IN SERVICES

With increased demand for value-based marketing, there is also growing demand

of “Green” services. Global customers are not only interested in cost cutting

through outsourcing but are also looking for energy efficient IT operations.

Example: ITC InfoTech is a good example to understand how to package the

services “Green” ITC InfoTech is a Bangalore based independent Subsidiary of ITC

Ltd. At corporate level ITC is working to establish itself as a carbon free company.

The company is working on “Triple Bottom Line” i.e. social, economic and

environmental capital. The company is involved in many community driven

initiatives. It is one of the 10 companies globally and first one from India to start

publishing sustainability report in compliance with G3 guidelines of Global

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Reporting Initiative. The company is investing in large-scale plantations to wash

away its carbon positive image. It is also focusing on water harvesting and

working towards zero solid waste by recycling.

Chapter VII: “SWOT ANALYSIS OF GREEN MARKETING

STRATEGY” :-

STRENGTHS

1. Marketers get access to new markets and gain an advantage over

competitors that are not focusing on “greenness.”

2. Marketers can charge a premium on products that are seen as more

eco-responsible.

3. Organizations that adopt green marketing are perceived to be more

socially responsible.

4. Green marketing builds brand equity and wins brand loyalty among

customers.

WEAKNESS

1. Most customers choose to satisfy their personal needs before caring

for environment.

2. Overemphasizing greenness rather than customer needs can prove

devastating for a product.

3. Many customers keep away from products labelled “Green” because

they see such labelling as a marketing gimmick, and they may lose

trust in an organization that suddenly claims to be green.

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OPPORTUNITIES

1. Marketing to segment which are becoming more environmentally

aware and concerned. These consumers are demanding products that

conform to these new attitudes.

2. Organizations perceive green marketing to be a competitive

advantage, relative to the competitors.

THREATS

1. Uncertainty as to the environmental impact of present activities,

including that is perceived to be less environmentally harmful.

2. Uncertainty as to which green marketing activities are acceptable from

a government perspective.

3. The possibility of a backlash from consumers or government based

on existing green marketing claims, threat one and two above may

cause backlash to arise.

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Chapter VIII: “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

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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.

Problems associated with each market segment

Segment 1: Consumer Segment

Consumers may express more concern about the ecology, but they continues to

buy large luxury cars, relatively few recycle voluntarily, and most importantly,

economic issued continue to dominate political campaigns.

Researcher fail to see why people must pay a hefty premium for biodegradable

baby wipes that can be flushed down the toilet or coffee filters that aren’t

bleached. It raised a point in the mind of researcher that demand for green

products does exist, and people are willing to pay if they don’t feel they’re being

ripped off. Bank and credit card companies persuade customers to get paperless

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statements to save trees, but then charge a fee for accessing statements via

software.

While competition is inevitable in any business endeavour, the presence of

stricter regulations and public policies can aggravate the situation. This emanates

primarily from misleading statements and claims of products being environment

friendly. In particular, there are a number of criticisms regarding the “marketing

ploy” of degradable trash bags. Manufacturers claim that it is not their fault if

consumers are uniformed. Hence, consumers must interpret the degradability of

these products. Debate of this nature has led to stricter policies and governing

bodies.

Segment 2: Government Segment

Tackling India’s environment crisis is likely to be a difficult proposition for any

government. Indian government has much to do for addressing their

environmental issues as compared to its European or American counterparts

requiring environmental and social assessments for entire sectors. India does

have a system of environmental impact assessments being mandatory for most

‘development’ projects.

The western Ghats are not only valuable from the point of view of the timber and

non-timber forest produce they contain, but even more so for the enormous

water security they provide to the plains in Karnataka, Kerala, Maharashtra, Goa ,

and Tamil nadu, not speak of their potential genetic values. Yet none of these

values integrate when decisions are taken about land use in the Western Ghats.

On the contrary, cutting trees for timber appears as a positive contribution (as

revenue) in the budget figures, and there is no corresponding debit entry on the

resulting loss of ecosystem benefits.

In India, the central government does not maintain such a centralized database

and even the data that it has on companies is not easily available to public

accessibility. Moreover, within the environmental community, there is a very little

credibility in data being supplied to the government. The government should not

only provide the legislation regarding “environment” and “Green Marketing

practices” but also ensure that these are enforced. The government should adopt

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carrot and stick approach for the organizations i.e. rewarding organizations with

good EMP’s and imposing penalty on the erring ones. Formation of an

environmental award just like Rajiv Gandhi Quality Award would be a good step.

Segment 3: Private Industry Segment.

Within private industry, many companies are currently undertaking

environmental control and recycling programs. E.G. ITC, Philips, Electrolux,

Toyota, J&J, Orchid Hotel. The aforementioned programs and policies imply capital

expenditures for their installation and maintenance. When looking through the

literature there are several suggested reasons for firms increased use of green

marketing. Five possible reasons cited are: organizations perceive environmental

marketing to be an opportunity that can be used to achieve its objectives, moral

responsibility to be an opportunity that can be used to achieve its objectives,

moral responsibility to be socially responsible, governmental pressure,

competitors environmental activities, and costs factors associated with waste

disposal, or reductions in material usage forces firma to modify their behaviour.

Segment 4: Non-Profit Organization

While not a particularly lucrative group, this segment may be especially

appealing for companies that provide recycling and waste disposal services. Since

part of the green dilemma is rooted in the reduction of waste, business connected

with waste disposal will find this segment a viable customer. However, because

this segment often operates as non-profit institutions, budgetary constraints will

limit the extent to which they will be able to expend rupees for waste reduction

purposes. Nonetheless, if the trend of environment – related regulatory policies

continue, hospitals and universities (among others) will have no choice but to

allocate part of their budget for waste reduction purposes.

The NGOs must work hard in hand with the central as well as state government to

stop environmental degradation such as illegal felling of trees for commercial

purpose. It is suggested that NGOs, rather than partnering with the individual

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companies and opening themselves to the criticism of “bedding with the devil”

would be better to partner trade and professional organizations.

Chapter IX: “PUBLIC OPINION ON GREEN MARKETING” :-

1) 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.

2) 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.

3) 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."

4) 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.

5) The survey, by the research firm Global Market Insight, quizzed more than

15,000 online consumers in the U.S. and 16 other countries about their socially

conscious business practices.

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6) 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.

7) "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.”

8) 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, 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.

9) 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."

10) 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.

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Chapter X: “OPPORTUNITIES IN GREEN MARKETING” :-

Equipped with a better grasp of ecological issues, enlightened businesspeople

voluntarily adopt environmentally responsible business practices. A growing

number of CEOs now appreciate the link between environmental responsibility

and more efficient - and profitable - business practices. And more and more

business communicators know how to use green marketing strategies to take

advantage of opportunities to boost their corporate environmental images.

MORE PROFITS

Many companies, and especially those in such highly polluting industries as

chemicals, oil, and electrical power generation, now have management systems

in place to make sure corporate environmental profiles and products exceed

consumers’ expectations. Today, major U.S. corporations conduct environmental

audits and recycle their waste. Countless others upgrade their facilities with

energy-efficient technologies. Such steps reduce operating costs and liability

while boosting profits. Producing eco-efficient products creates less waste, uses

fewer raw materials and saves energy, too. Thanks to innovative manufacturing

processes suggested by highly motivated and environmentally trained

employees, Interface, the world's largest producer of commercial carpeting,

projects a savings of more than $35 million by the end of 1997. The changes

required for making and marketing environmentally sensitive products enhances

employee morale and productivity with a payoff in improved customer relations

and overall returns on investment. Enhanced corporate imagery ensues, and this

can help attract investors and top talent.

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COMPETITIVE ADVANTAGE

Many marketers now know that being the first to the shelf with an environmental

innovation brings competitive advantage. Since 1993, Rayovac introduced

Renewal brand reusable alkaline batteries and redefined the market for re-

chargeable. With 50 percent of the production capacity for phosphate detergents,

German-based Henkel pioneered the market for zeolites and claimed market

leadership when their consumers shifted to phosphate-free detergents. Philips

Lighting, inventors of compact fluorescent lighting technology, stood ready when

businesses and electric power utilities came calling for replacements for energy-

guzzling incandescent. Wellman, Inc. has expanded its business definition from

plastics recycler to pioneers in the market for branded polyester fibber made

from used Coke bottles.

Many of these leaders have been showered with any number of eco-accolades

now offered by industry, media, government or environmental groups. One

example is the Special Edison Award for Environmental Achievement bestowed by

the American Marketing Association. It has been won by Fortune 1000 firms

including 3M and Procter and Gamble as well as by a raft of up-and-coming firms

with a deep-green orientation like Natural Cotton Colours, Patagonia, and Tom’s

of Maine.

Young, aggressive competitors adept at capturing the imaginations and winning

the hearts of highly desirable environmentally and socially conscious customers

are introducing some of the most exciting green products. The success of

Patagonia outerwear, Stony field Farm Yogurt, and Tom’s of Maine toothpaste

suggest that consumers now have higher expectations for the products they buy

and that quality is an image that no longer stands apart from environmental

impact.

Looking to cash in on the potential for future green-oriented sales, well-

established mass marketers now shop for green companies with promising green

brands; recent acquisitions include Earth’s Best Baby Foods (by Heinz), Murphy’s

Oil Soap (Colgate- Palmolive), Earth Rite Cleaning Products (Reckitt & Colman).

After nearly two decades of compromising on quality –and languishing on once-

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dusty health food store shelves as a result–today’s crop of green products finally

embody all that consumers demand: an opportunity to clean up the mess without

having to give up price or quality. With the deepened consumer confidence in

green products that results, the market becomes legitimized.

PERSONAL REWARDS

Green marketing offers a rare opportunity to integrate one’s values into the

workplace. Creating products that are more in sync with nature allows one to

personally contribute to environmental cleanup and help ensure a more secure

future for our children. A mind once expanded never goes back to where it was.

No longer content to promise consumers that their clothes will become "whiter

than white" or breath that is "fresher than fresh", green marketers–like their

bosses who manage for a double bottom line–cultivate higher levels of

satisfaction and reward. They offer their consumers the prospect of healthier,

more fulfilled lives, and the power to make the world a better place.

BETTER PRODUCTS

While much brand switching is conducted in the name of altruism, what attracts

many consumers to greener products is quite simply the prospect of higher

quality: water-saving showerheads slash energy bills, concentrated laundry

detergents are easier to carry and store, and nontoxic garden products are safer

for children. Except these enhanced primary benefits–of performance,

convenience, price, and safety, for example–that accompany environmental

improvements to continue to propel the market for environmentally preferable

products in the years and decades ahead.

INCREASED MARKET SHARE

Times are tough for marketers of branded products. Brand loyalty is near all time

lows, and the percentage of Americans who feel that some brands are worth

paying more for is declining. In this tough, competitive climate, environmental

compatibility breaks ties at the shelf. Pragmatic consumers skew purchases to

those products and packages that must be recycled or otherwise safely disposed

of in their communities. All else being equal, many consumers look to do their bit

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by happily switching brands, or "boycotting" those companies and products

deemed environmentally sound and boycotting the brands of companies with

disappointing environmental track records. These growth opportunities have not

been lost on such market leaders as Procter & Gamble, McDonald's, and Compaq.

They offer the greenest of mainstream products and take pains to project

environmentally appropriate corporate images. Pick up a bottle of Tide laundry

detergent and learn how it is "phosphate-free," contains "biodegradable cleaning

agents," and is packaged in a "recycled-content" bottle.

Chapter XI: “ROLE OF IT IN GREEN MARKETING” :-

IT departments are under increasing scrutiny and pressure to deliver

environmentally sound solutions. Large data centres are one of the most

significant energy consumers in an organizations IT infrastructure, so any

measures that the organization can take to reduce this consumption (and

therefore also carbon dioxide emissions) will have a positive impact on the

organization’s environmental footprint. Gartner reveals that during the last five

years, the power demands of equipments have grown by five or more times.

Additionally, a report issued by the environmental Protection Agency in US

indicates that environmental issues have placed IT departments under pressure

to develop ‘green’ data centres.

A green data centre is defined as one in which the mechanical, lighting, electrical

and computer systems are designed for maximum energy efficiency and

minimum environmental impact. The construction and operation of a green data

centre involved in advanced technologies and strategies.

Some examples include:

Reducing the power consumption of the data centre.

Minimizing the footprints of the buildings.

Maximizing cooling efficiency.

Using Low-emission building materials, carpets and paints.

Installing catalytic converters on backup generators.

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Using alternative energy technologies such as photovoltaic electrical

heat pumps and evaporating cooling.

The consumption of energy is considered the dominant- and often the

only-factor in defining whether or not a facility is green. IT executives

therefore need to start investigating alternative ways of building

energy-efficient data centres. This paper focuses on “How a Green

Data Centre can be a Great Marketing Tool”

Chapter XII: “CONCLUSION” :-

There are many lessons to be learned to avoid green marketing myopia —the

short version of all this is that effective green marketing requires applying good

marketing principles to make green products desirable for consumers. The

question that remains, however, is, what is green marketing’s future?

Historically, green marketing has been a misunderstood concept. Business

scholars have viewed it as a “fringe” topic, given that environmentalism’s

acceptance of limits and conservation does not mesh well with marketing’s

traditional axioms of “give customers what they want” and “sell as much as you

can.” In practice, green marketing myopia has led to ineffective products and

consumer reluctance. Sustainability, however, is destined to dominate twenty-

first century commerce. Rising energy prices, growing pollution and resource

consumption in Asia, and political pressures to address climate change are

driving innovation toward healthier, more-efficient, high-performance products. In

short, all marketing will incorporate elements of green marketing.

Successful green marketing entails much more than simply tweaking the size of a

package, using recycled materials in place of virgin ones, or substituting natural

ingredients for synthetic. While positive and necessary, such changes are just a

small part of a much, much bigger picture. When we look at the businesses that

are at the forefront of the green trend, we see a deeper characteristic than just

greened-up products or ads that makes them at once environmental and societal

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leaders as well as profitable: green leaders are driven by more than short-term

financial goals. They are motivated by a double bottom line, a bottom line that

recognizes the potential for business to affect societal change as well as create

economic wealth. A business that at the end of the day is measured by profits as

much as its contribution to human potential and the harmony of the company's

objectives with other living beings.

Green leaders are not afraid to project the values that underlie their

organization's mission and purpose. To their customers, the products they sell are

not just consumables sold at a profit but mirrors of their corporate commitment

to environmental care and social responsibility. Such products appeal to

consumers with a finely honed sense of idealism, integrity, and the belief that

businesses can and should achieve social goals as well as financial ones. Because

green leaders are not afraid to take a stand on their beliefs, their consumers

stand ready to believe their product claims and regard the individuals running the

company as sincere.

The most successful green companies operate holistically. Unlike conventional

marketers who most often react to consumers' immediate needs, the most

successful green companies lead their customers and other stakeholders, rather

than accept being led by them. They anticipate emerging environmental issues

and address them before being forced to do so. As such they are able to set their

own agenda with regulators and they don't risk disappointing their customers or

shaking their confidence.

Rather than simply employ resources at hand, the deep-seated convictions of the

founders and CEOs of the most environmentally responsible companies challenge

their employees to stretch beyond their immediate horizons, teaming up with

corporate environmental stakeholders to create optimal solutions to pressing

environmental problems.

These leaders are not afraid to question assumptions or break the rules. They

derive competitive advantage while accomplishing the most good for society by

embracing unconventional and often radical solutions. They enhance profitability

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and quality by innovating more and more efficient ways to design and market

products and conduct their businesses overall.

The greenest companies are not afraid to listen – to understand the issues from

all sides, to pick up clues from individuals and groups on the fringes who can lead

them to new opportunities, and to simply demonstrate to employees, customers,

suppliers and others that they care. At the same time, they are not afraid to trust .

They are open to entrees from government regulators offering technical

assistance or to an environmentalist with a seemingly off-beat idea. Most

importantly, they trust their own instincts, their insights into the causes and

probable solutions to society's environmental ills, and their own deeply held

beliefs. Green leaders focus–on the stakeholders most important to their business

and on the product attributes that represent the greatest environmental impact

and are most important to their customers.

Finally, green leaders are patient. They are committed to the long term, and to

continuous improvement. They are eager to learn from their own mistakes and

they engage in forums that allow them to learn from the mistakes of others. And,

like Sally Fox, who took 10 years to cultivate a naturally colored cotton seed

capable of yielding a fiber long enough to be spun into marketable yarn, green

leaders persevere.

A green future is now being created by visionaries with a competitive spirit in

their bellies and social activism in their hearts. While many businessmen and

women may still be content to tweak products or manage cash cows in the quest

for next quarter's earnings, green leaders are right now readying new products

and services to market, creating new industries and more inclusive work and

management styles that didn't exist five or ten years ago. Theirs will be the

standards for the future. With ever increasing scientific understanding of how the

Earth works, a general movement toward safer, less polluting and more

environmentally sustainable practices is inevitable. Marketers that take the time

now to court the deepest green consumers with truly innovative solutions to

environmental concerns will be the ones who reap the biggest future

opportunities.

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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.

REFERRENCE

Journals:

1. Amine, L.S. (2003), "An integrated micro- and macro-level discussion of

global green issues: ‘it isn't easy being green’", Journal of International

Management, Vol. 9 No.4, pp.373-94

2. Crane, A. (2000), "Facing the backlash: green marketing and strategic

reorientation in the 1990s", Journal of Strategic Marketing, Vol. 8 No.3,

pp.277-96.

3. Johri, L.M., Sahasakmontri, K. (1998), "Green marketing of cosmetics

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4. McDaniel, S.W., Rylander, D.H. (1993), "Strategic green marketing",

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Websites:

1. http://www.greenmarketing.com/green_marketing_book

2. http://egj.lib.uidaho.edu/egj02/polon01.html

3. http://www.awea.org/policy/greenprins.html

4. http://www.sustainablemarketing.com/

5. http://www.onpoint-marketing.com/green-marketing.htm

6. http://www.ecomall.com/greenshopping/greencorner.htm

7. http://www.tompaine.com/articles/2006/11/03/

bright_green_marketing_challenge.php

8. http://www.plentymag.com/features/2006/11/

green_marketing_machine.php

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