Greenmarketing

GREEN MARKETING

Members

Introduction

"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."

Marketing of Environmentally safe Products Minimize negative effects on the physical Environment Ecological concerns products

DEFINITION 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 “

Marketing of products /or services based on their environmental benefits.• Incorporates a broad range of activities• product modification• changes to the production process• packaging changes• modifying advertising

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“.

WHY IS GREEN MARKETING IMPORTANT?

Limited resources to satisfy world’s unlimited wants

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.

4S OF GREEN MARKETING

• Safety of product

• Satisfaction of customer

• Social acceptability of a product

• Sustainability of the product

NEED OF GREEN MARKETING

On our planet sources are limited and human needs (wants) unlimited

green marketing is important for the firms to utilize the limited resources satisfying the consumer needs as well as achieving the organization’s selling objectives

REASONS WHY FIRMS ARE ADOPTING GREEN MARKETING SOCIAL RESPONSIBILITY LAWS COMPETITION COST REDUCTION

COMPANIES USING GREEN MARKETING

MCDONALD’S XEROX HONDA NESTLE

NESTLE WATERS’ ‘REBORN’ BOTTLE MADE WITH 50% RECYCLED PET PLASTIC:

Nestlé Waters has created a new “Reborn” 500ML water bottle that is made with 50% recycled POLYETHYLENE TEREPHTHALATE (rPET), and that requires 15% less energy to produce.

Nestle Reborn bottle comes from CARBON LITE, a plastic processing facility that can be reused again and again without altering the taste of water and its hygienist.

Nestle Waters bottles are 100% recyclable, and the company says it “leads action programs all over the world to encourage bottle collection and optimize the recycling chain.” One of the company’s core aims is to continuously raise consumer awareness on the importance of PET bottle collection.

MCDONALD'S GREEN MARKETING:

• McDonald’s is aiming to blow up their green with five criteria, there are nutrition and well-being the new ECO-FRIENDLY features include a light-colored hardscape to reduce HEAT EMISSIONS, almost 300 PHOTOVOLTAIC PANELS to generate solar energy power, native drought tolerant plants to REDUCE WATER CONSUMPTION, low-flow plumbing fixtures to reduce water usage and recycled denim insulation within the building. The couple worked closely with the McDonald’s Corporation throughout the entire process.

XEROX'S GREEN INNOVATION:

Sustainable innovation is key to Xerox's strategy. The company is putting green innovation to work for profit and the planet.

Xerox company has maintained a business strategy focused on sustainable innovation. Xerox pioneered two-sided copying, PRINT-ON-DEMAND, RECYCLED PAPER AND TONER CARTRIDGES. This technology has enabled a 30 PERCENT REDUCTION IN WASTE

Xerox created the industry’s FIRST SUSTAINABILITY CALCULATOR to help customers develop a fact-based estimate of their print-related environmental footprint.

HONDA GOING GREEN:

Going so far as to call Honda “The most fuel-efficient auto company in the US”, CNN tells the story of how Honda is hard at work on the hydrogen fuel cell powered “FCX.” Honda is apparently also taking steps to create an entire infrastructure for hydrogen, looking forward to a day when hopefully more cars will be powered by that instead of gasoline.

Honda has also created a hybrid car called INSIGHT that is more fuel efficient its fuel consumptions starts from 60mph that makes it a very fuel efficient car.

PROBLEMS WITH GREEN MARKETING

Ensure that your activities are not misleading to consumers or industry

There is difficulty in establishing policies that will address all environmental issues

The environmentally responsible action of today might be harmful in the future

PROBLEMS WITH GREEN MARKETING

Reacting to competitive pressures can cause all to make the same mistake as the leader.

To reduce costs or increase profits may not force firms to address the important issue of environmental degradation

SUGGESTED SOLUTION

Environmentally responsible organizations should attempt to minimize their waste

Improve awareness about green products and there effectiveness. Green products should be priced according to it’s quality. There should not be more price difference between standard product and green product. Green product’s quality should be better than standard products.

Benefits Improved environmental quality & customer

satisfaction Consumer value positioning Efficiency and cost effectiveness Health and safety Gaining and retaining customers Innovation in products and operations Staff Development

CONCLUSION Green marketing covers more than a firm's marketing

claims. Firms have a great impact on the natural environment. Consumers lay too much responsibility on industry and

government. firms alone cannot lead the green marketing revolution. consumers and industrial buyers have ability to pressure

organizations to integrate environmental factor.

REFERENCE www.ecomall.com www.treehugger.com www.greenmarketingcorner.com www.greenpeace.org “Power of Green Lies in Marketers’ Hands”

By Jacquelyn Ottman

September 9, 2008