project on green marketing

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1. INTRODUCTION

1.1 Meanings & Concepts:

According to the American Marketing Association, 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.

In today's business world environmental issues plays an important role in

marketing. All most all the governments around the world have concerned about

green marketing activities that they have attempted to regulate them. For

example, in the United States (US) the Federal Trade Commission and the

National Association of Attorneys-General have developed extensive

documents examining green marketing. There has been little attempt to

academically examine environmental or green marketing.

Yet defining green marketing is not a simple task where several meanings

intersect and contradict each other; an example of this will be the existence of

varying social, environmental and retail definitions attached to this term. Other

similar terms used are Environmental Marketing and Ecological Marketing. The

legal implications of marketing claims call for caution. Misleading or overstated

claims can lead to regulatory or civil challenges. In the USA, the Federal Trade

Commission provides some guidance on environmental marketing claims.

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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" Thus

green marketing incorporates a broad range of activities, including product

modification, changes to the production process, packaging changes, as well as

modifying advertising.

Are you aware of the term green marketing?

a. Yes b. No

0 5 10 15 20 25 30 35 40

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36

NoYes

The above bar graph indicates that out of 50, 36 respondents are not familiar with

the term Green Marketing. Many of them have a misconception with the term

Green Marketing

My definition which encompasses all major components of other definitions is:

"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."

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So, in simple terms Green marketing refers to the process of selling products

and/or services based on their environmental benefits. Such a product or service

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. The not-so-obvious assumption of green marketing is that

consumers will be willing to pay more for green products than they would for a

less-green comparable alternative product - an assumption that has not been

proven conclusively, specially the mild effect which it had had on consumers

has washed away by the present recession (2008-09) only.

1.2 Importance of Green Marketing:

Man has limited resources on the earth, with which she/he must attempt to

provide for the worlds' unlimited wants. There is extensive debate as to whether

the earth is a resource at man's disposal. In market societies where there is

"freedom of choice", it has generally been accepted that individuals and

organizations have the right to attempt to have their wants satisfied. As firms

face limited natural resources, they must develop new or alternative ways of

satisfying these unlimited wants. Ultimately green marketing looks at how

marketing activities utilize these limited resources, while satisfying consumers

wants, both of individuals and industry, as well as achieving the selling

organization's objectives.

1.3 Goals of Green Marketing:

Eliminate the concept of waste.

Reinvent the concept of product.

Make prices reflect actual and environmental costs.

Make environmentalism profitable.

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Bringing out product modifications.

Changing in production processes.

Packaging changes.

Modifying advertising.

1.4 NEED OF GREEN MARKETING:

Issues like Global warming and depletion of ozone umbrella are the main for

the healthy survival. Every person rich or poor would be interested in quality

life with full of health and vigor and so would the corporate class. Financial

gain and economic profit is the main aim of any corporate business. But harm to

environment cost by sustain business across the globe is realized now though

off late. This sense is building corporate citizenship in the business class. So

green marketing by the business class is still in the selfish anthological

perspective of long term sustainable business and to please the consumer and

obtain the sanction license by the governing body. Industries in Asian countries

are catching the need of green marketing from the developed countries but still

there is a wide gap between their understanding and implementation.

1.5 Challenges in Green Marketing:

a) NEED FOR STANDARDIZATION:

It is found that only 5% of the marketing messages from “Green”

campaigns are entirely true and there is a lack of standardization to

authenticate these claims. There is no standardization to authenticate

these claims. There is no standardization currently in place to certify a

product as organic. Unless some regulatory bodies are involved in

providing the certifications there will not be any verifiable means. A

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standard quality control board needs to be in place for such labeling and

licensing.

b) NEW CONCEPT:

Indian literate and urban consumer is getting more aware about the merits

of Green products. But it is still a new concept for the masses. The

consumer needs to be educated and made aware of the environmental

threats. The new green movements need to reach the masses and that will

take a lot of time and effort. By India’s ayurvedic heritage, Indian

consumers do appreciate the importance of using natural and herbal

beauty products. Indian consumer is exposed to healthy living lifestyles

such as yoga and natural food consumption.

c) PATIENCE AND PERSEVERANCE:

The investors and corporate need to view the environment as a major

long-term investment opportunity, the marketers need to look at the long-

term benefits from this new green movement. It will require a lot of

patience and no immediate results. Since it is a new concept and idea, it

will have its own acceptance period.

d) AVOIDING GREEN MYOPIA:

The first rule of green marketing is focusing on customer benefits i.e. the

primary reason why consumers buy certain products in the first place. Do

this right, and motivate consumers to switch brands or even pay a

premium for the greener alternative. It is not going to help if a product is

developed which is absolutely green in various aspects but does not pass

the customer satisfaction criteria.

1.6 Benefits of Green Marketing:

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Today’s consumers are becoming more and more conscious about the

environment and are also becoming socially responsible. Therefore, more

companies are responsible to consumer’s aspirations for environmentally less

damaging or neutral products. Many companies want to have an early mover

advantage as they have to eventually move towards becoming green.

Some of the advantages of green marketing are:

It ensures sustained long term growth along with profitability.

It saves money in the long run, though initially the cost is more.

It helps the companies market their products and services keeping the

environment aspects in mind. It helps in accessing the new markets and

enjoying the competitive advantage.

Most of the employees also feel proud and responsible to be working for

an environmentally responsible company.

1.7 Golden Rules of Green Marketing:

1. Know Your Customer:

Make sure that the consumer is aware of and concerned about the issues

that your product attempts to address, (Whirlpool learned the hard way

that consumers wouldn’t pay a premium for a CFC-free refrigerator

because consumers dint know what CFCs were.).

2. Empower Consumers:

Make sure that consumer feel. By themselves or in concert with all the

other users of your product, that they can make a difference. This is

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called “empowerment” and due to this main reason consumers will buy

greener products.

3. Be Transparent:

Consumers must believe in the legitimacy of the product and the specific

claims made in regard.

4. Reassure the Buyer:

Consumers must be made to believe that the product performs the job it’s

supposed to do-they won’t forego product quality in the name of the

environment.

5. Consider Your Pricing:

If you’re charging a premium for your product-and many

environmentally preferable products cost more due to economies of scale

and use of higher-quality ingredients-make sure those consumers can

afford the premium and feel it’s worth it.

1.8 WHY GREEN MARKETING?

As resources are limited and human wants are unlimited, it is important for the

marketers to utilize the resources efficiently without waste as well as to achieve

the organization's objective. So green marketing is inevitable. There is growing

interest among the consumers all over the world regarding protection of

environment. Worldwide evidence indicates people are concerned about the

environment and are changing their behavior. As a result of this, green

marketing has emerged which speaks for growing market for sustainable and

socially responsible products and services.

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Green marketing is a process of selling products or services that are based on

the benefits they may provide to the environment. From utilizing recycled paper

for packaging to using soy-based ink and recycled paper for all printed

marketing materials, businesses have an opportunity to attract new customers by

incorporating green practices into their business model.

1.9 Green Business Practice:

Green business initiatives can give a business a distinct advantage over

competing businesses that are not incorporating environmentally-friendly tactics

into their business model. Green initiatives a business might highlight in their

marketing efforts include steps taken by their facility to reduce pollution. Other

green initiatives worthy of highlighting include recycling efforts. Try capturing

the amount of material recycled each year and saved from the landfill and

highlight in marketing materials.

Communicate about the efforts made to conserve resources or new technology

used to improve energy efficiency. Businesses that follow fair trade and labor

practices should include these policies in their green marketing efforts as well.

1.10 Green Marketing Tips for Businesses:

To be successful at green marketing, the efforts should be genuine, informative

and engaging. Be clear and concise in communicating the green processes used

when creating products or services. However, be careful not to oversell green

policies and initiatives. Instead, be honest and just state the facts about the

environmentally-friendly practices in place.

For product packaged in recyclable packaging, provide tips for recycling the

components of the packaging. If carbon offsets are purchased to help reduce

environmental impact, provide information to customers about how carbon

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offsets work and how they can purchase carbon offsets to help reduce their

overall impact.

Green marketing provides businesses with the opportunity of showing

customers they care about the environment and ways they are making a

difference. And when done right, green marketing can build lasting

relationships with current customers as well as attract new ones.

1.11 DEBATE, CONFUSION AND STATISTICS:

1) Ongoing debate:

The popularity of such marketing approach and its effectiveness is hotly

debated. Supporters’ claim that environmental appeals are actually growing in

number–the Energy Star label, for example, now appears on 11,000 different

companies' models in 38 product categories, from washing machines and light

bulbs to skyscrapers and homes. However, despite the growth in the number of

green products, green marketing is on the decline as the primary sales pitch for

products. (NEEDS CITATION) On the other hand, Roper’s Green Gauge shows

that a high percentage of consumers (42%) feel that environmental products

don’t work as well as conventional ones. Given the choice, all but the greenest

of customers will reach for synthetic detergents over the premium-priced,

proverbial "Happy Planet" any day, including Earth Day.

2) Confusion regarding Green Marketing:

One challenge green marketers -- old and new -- are likely to face as green

products and a message become more common is confusion in the marketplace.

"Consumers do not really understand a lot about these issues, and there's a lot of

confusion out there," says Jacquelyn Othman (founder of J. Othman Consulting

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and author of "Green Marketing: Opportunity for Innovation.") Marketers

sometimes take advantage of this confusion, and purposely make false or

exaggerated "green" claims. Critics refer to this practice as "green washing".

3) Statistics:

According to market researcher Mintel, about 12% of the U.S. population can

be identified as True Greens, consumers who seek out and regularly buy so-

called green products. Another 68% can be classified as Light Greens,

consumers who buy green sometimes. "What chief marketing officers are

always looking for is touch points with consumers, and this is just a big, big, big

touch point that's not being served," says Mintel Research Director David

Lockwood. "All the corporate executives that we talk to are extremely

convinced that being able to make some sort of strong case about the

environment is going to work down to their bottom line.

SOURCE: www.GREEN AT WORK MAG.com

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2. MARKET MIX OF GREEN MARKETING

When companies come up with new innovations like eco friendly products, they

can access new markets, enhance their market shares, and increase profits. Just

as we have 4Ps product, prices, place and promotion in marketing, we have 4ps

in green marketing too, but they are a bit different. They are added by three

additional Ps, namely people, planet and profits.

2.1 FOUR PS (4PS)-

A. 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.

Do you consider the environmental aspects of the products before buying them?

a. Yes b. No c. Sometimes

yes24%

No28%

Some-times48%

The above chart indicates that only 48% i .e. the majority of respondents

consider the Environmental aspect some times. And, only 24% consider the

environmental aspect of the product while buying it

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B. 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. Examples are:-

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".

C. 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.

D. 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. Examples are:-

British petroleum (BP) displays gas station which its sunflower motif and

boasts of putting money into solar power.

Indian Tobacco Company (ITC) has introduced environmental-friendly

papers and boards, which are free of elemental chlorine.

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Toyota is trying to push gas/electric hybrid technology into much of its

product line. It is also R&D investment in the every-elusive hydrogen car

and promoting itself as the first eco-friendly car company.

2.2 ECO-LABELING INITIATIVES:

Eco label provide information regarding the environmental performance of

products. The objective of eco-labeling is to provide authentication to genuine

claims regarding the environmental impact of products and processes by

manufacturers.

In India the government has introduced the eco-mark scheme since 1981. The

objectives of the scheme are:

To provide incentives to manufacturers and importers to reduce the

adverse environmental impact of products.

To reward genuine initiatives by companies to reduce adverse impact of

environmental impact of products.

To assist consumers to become environmentally responsible in their daily

lives by providing them information to take account of environmental

factors in their daily lives.

To encourage citizens to purchase products which have less

environmental impact?

2.3 ECO-LABELLING SCHEMES IN INDIA:

The Ministry of environment and forest of government of India has prescribed

the following criteria for products:

That they cause substantially less pollution than comparable products in

production, usage and disposal,

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That they are recycled and/or recyclable whereas comparable products

are not.

That they contribute to a reduction on adverse environmental health

consequences.

That they comply with laws, standards and regulations pertaining to the

environment.

That their price is not exorbitantly higher than comparable products.

2.4 ECO-MARK IN INDIA:

Under the concept, products which are less harmful to the environment or have

benign impact on environment through the various stages of development-

manufacture, packaging, distribution, use and disposal or recycling may be

awarded the Eco-Mark.

An earthen pot has been chosen as the logo for Eco-Mark scheme in India. The

familiar earthen pot has renewable resource like earth, does not produce

hazardous waste and consume little energy in making. As a symbol it puts

across its environmental message. Its image has the ability to reach people and

help to promote a greater awareness of the need to be kind to the environment.

The logo Eco-Mark scheme signifies that the product which carries it does least

damage to the environment.

2.5 SHIFTING TO A GREEN ERA:

The color GREEN, until recently was associated all over the world with

emerald. In the modern age, however, GREEN is getting associated with

sustainable development. Being green is no longer a matter of choice; its

marketing is a must, or else enterprise may run the risk of losing customers,

employees and shareholders. It has become almost a necessity to maintain a

green lifestyle. The major areas addressed by GSCM are:

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The upstream activities of an organization that comprises evaluation of

supplier’s environmental performance.

Downstream actions that include activities related to the disposal of

surfeit stock, particularly the recovery and recycling opportunities.

The business enterprises can have several benefits by greening their supply

chain. Some of them are:

1. Risk Reduction and Adapting of Regulation:

Enterprises with green practices of SCM can keep themselves free of

being prosecuted due to unethical and anti-environmental practices.

2. Sustainability of Resources:

The greening of SCM helps in effective utilization of enterprise

resources. The enterprises shall purchase green input resources for

environment friendly production process to produce eco friendly outputs.

3. Production Process and Competitive Advantage:

GSCM helps the business houses in positioning the products differently

in the minds of the target set of buyers. It will not only attract profitable

customers for the organizations, but also bestow competitive edge over its

rivals, thereby strengthening brand image.

4. Cost Reduction and Increased Efficiency:

Effective utilization of GSCM may fetch reduction of transaction cost as

well as promote recycling of raw materials.

2.6 Stakeholders in Green Marketing:

They are all the people or groups whose lives or environment are affected by the

project, but who receive no direct benefit from it. These can include the team’s

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families, people made redundant by the changes introduced, people who buy the

product and the local community.

FRAMEWORK FOR PROPER IDENTIFICATION OF

STAKEHOLDERS

Identifying appropriate stakeholders

Specifying the nature of their interests

Measuring the stakeholder interest

Predicting what each stakeholder’s future behavior will be to satisfy

his/her stake

Evaluating the impact of the expected behavior on the project team’s

latitude in managing the project politics.

SOURCE: www.Green marketing work.com

3. PRESENT TRENDS IN GREEN MARKETING IN INDIA

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A. Organizations Perceive Environmental marketing to be an

Opportunity that can be used to achieve its objectives:

Firms have realized that consumers prefer products that do not harm the

natural environment as also the human health. Firms marketing such

green products are preferred over the others not doing so and thus

develop a competitive advantage, simultaneously meeting their business

objectives.

B. Organizations believe they have a moral obligation to be

more socially responsible:

This is in keeping with the philosophy of CSR which has been

successfully adopted by many business houses to improve their corporate

image.

Firms in this situation can take two approaches:

Use the fact that they are environmentally responsible as a marketing

tool.

Become responsible without prompting this fact.

C. Governmental Bodies are forcing Firms to Become More

Responsible:

In most cases the government forces the firm to adopt policy which

protects the interests of the consumers. It does so in following ways:

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Reduce production of harmful goods or by –products

Modify consumer and industry’s use and /or consumption of harmful

goods; or

Ensure that all types of consumers have the ability to evaluate the

environmental composition of goods

D. Competitors’ Environmental Activities Pressure Firms to

change their Environmental Marketing Activities:

In order to get even with competitors claim to being environmentally

friendly, firms change over to green marketing. Result is green marketing

percolates entire industry.

E. Cost Factors Associated With Waste Disposal or Reductions

in Material Usage Forces Firms to Modify their Behavior:

With cost cutting becoming part of the strategy of the firms it adopts green

marketing in relation to these activities. It may pursue these as follows:

A Firm develops a technology for reducing waste and sells it to other

firms.

A waste recycling or removal industry develops.

3.1 Corporate Environmental Management, Strategy and

Practices

Environmental Management

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There are three categories of Environmental Management

Crisis-oriented

Cost-oriented, and

Enlightened

The firms with crisis-oriented management handle environmental conflicts on a

“fire-fighting’” basis. These firms have no environmental policy strategy for

compliance with laws and regulations and have no separate environmental unit

in the firm.

Five development stages of environmental management as given

below:

The “beginner” who provides no protection from environmental risk

The “fire-fighter” who provides minimal protection

The “concerned citizen” who provides moderate protection

The “pragmatist” who provides comprehensive protection

The “pro-activist” who provides maximum protection

3.2 GREEN HOUSE AS REDUCTION MARKET:

The emerging greenhouse gas reduction market can potentially catalyze projects

with important local environmental, economic, and quality-of-life benefits. The

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Kyoto Protocol’s Clean Development Mechanism (CDM), for example, enables

trading between industrial and developing nations, providing a framework that

can result in capital flows to environmentally beneficial development activities.

Companies that need to increase their emission allowance must buy credits from

those who pollute less. The transfer of allowances is referred to as a trade. In

effect, the buyer is paying a charge for polluting, while the seller is being

rewarded for having reduced emissions by more than was needed.

Thus, in theory, those who can reduce emissions most cheaply will do so,

achieving the pollution reduction at the lowest cost to society. There are active

trading programs in several air pollutants. For greenhouse gases the largest is

the European Union Emission Trading Scheme.

3.3 The New “Green” Revolution:

Global Warming is the phenomenon of increase in Earth’s temperature caused

by burning of fossil fuels and other pollutants in the air. As per the predictions

by IPCC (Intergovernmental Panel on Climate Change) it is predicted that the

global temperature is likely to increase by 1.1 to 6.4 degrees Celsius “between”

1990 to 2100.

The key causes of global warming are summarized below:

Carbon dioxide emitted from the Power Plants, Cars, airplanes and other

industries.

Methane emitted from landfill, petrochemical factories and steel and

fertilizer plants.

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Nitrogen dioxide emitted from waste combustion, agriculture water

pollution and sewage.

Other harmful gases emitted by industries, and manufacturing units,

which are causing depletion of Earth’s ozone, layer.

Deforestation is another major contributor towards global warming. The

destruction of tropical forests is throwing millions of tons of carbon

dioxide into the atmosphere.

For a long time now the effect of man’s industrialization and technological

progress ha s quietly yet continuously eked away at the delicate balance of the

planet’s atmosphere and ecosystem, but within the last 30 or so years the place

of this damage has markedly accelerated.

It is presently estimated that 700 tons of carbon dioxide are pumped into the

earth’s atmosphere every second of the day. Carbon dioxide is the chief

contributor to the greenhouse gases. It is these greenhouse gases, which cause

global warming.

SOURCE: www.Green magazine.com

4. Green Warming – Proposed Solution

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The solution to this problem lies in “Going Green” in our thoughts, behavior

and actions.

The consumers and corporations need to focus on clean and environment

friendly products and services. To elaborate on the “Green” terminology:

1. “Green Product” is non-toxic and is made from recycled material. There

is no absolute green product. However the products, which consume less

energy, cause less pollution and are biodegradable, belong to this

category. Thus “Green” is a relative term.

2. “Green Service” fulfills the philosophy of sustainable development,

improving and maintain the quality of life for people without

compromising the environment.

3. “Green washing” is the process of making products and services

“Green” in all respects.

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

the green in various aspects such as:

Supply Chain

Packaging

Raw Material

Product Innovations

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.

It is also important to understand how companies across the globe are

innovating and creating “Green” products.

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4.1 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.

Example: Grid core 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 fibers, and due to a honeycomb the interior design is just as strong

as and several times lighter than conventional fiberboard.

4.2 “GREEN” IN MANUFACTURING:

This focuses on using renewable energy for production and minimizing air and

water pollution during the manufacturing process.

Example: Energy Star is helping businesses and consumers save money and

check pollution. Energy star has its own pre defined parameters and gadgets

which conform to the energy efficiency standards. The businesses that join

hands with energy star sign an MOU and upgrade their facility as per the

requirement outlined by Energy Star. There are about 2,400 corporations,

hospitals, schools and other organizations, which are energy star compliant in

the US today.

4.3 “GREEN” IN PRODUCT DEVELOPMENT:

This refers to either environment friendly or environment efficient products as

demonstrated by the following examples.

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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.

4.4 “GREEN” BY USING ALTERNATIVE INGREDIENTS TO

REDUCE HEALTH RISKS:

Example: AFM Safe coat and Safe choice Paints to meet the markets demand

for non-toxic paints, the California based company invested in Research and

Development and developed a full line of non-toxic coatings, paints, stains and

adhesives.

4.5 “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 Defense

Fund (EDF) and created a waste reduction plan.

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4.6 “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.

i. 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.

ii. 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 fulfills its promise

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

of the Center 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

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

materials and website.

4.7 “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 Reporting Initiative.

36 Cigarette warehouses were converted to make ITC InfoTech’s global

development campus in the heart of Bangalore. The company has used recycled

material and virtualization tools for optimizing energy usage in its data centers.

It is also working on digital infrastructure to connect the rural farmers to the

Internet using solar panels for power, so that the Indian farmers can get

information on crop research and monitor weather trends. The company is using

these as a service differentiator and positioning itself as Green service Provide.

The corporate image of ITC Ltd. is further enhancing the True Green Image.

4.8 Green Strategy Formulation:

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As in formulation of green strategy, a firm may evolve it from a SWOT analysis

or Environmental Audit.

SWOT Analysis OF GREEN MARKETING

STRENGTHS:

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

competitors that are not focusing on “greenness.”

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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.

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 labeled “Green” because they

see such labeling as a marketing gimmick, and they may lose trust in an

organization that suddenly claims to be green.

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. Firms, therefore, strive to improve upon their

societal awareness.

3. E.g. offering an environmental friendly product and saving resources, and

relating them to internal strengths.

EXTERNAL THREATS:

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

including that is perceived to be less environmentally harmful.

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GREEN MARKETING

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.

E.g. competitors gain market shares with green products and increased

environmental regulations).

SOURCE: www.Green warming.com

5. THE FUTURE OF GREEN MARKETING

30

GREEN MARKETING

There are many lessons to be learned 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? 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 customer what they want” and

“sell as much as you can”.

Evidence indicates that successful green products have avoided green marketing

myopia by following three important principles:

5.1 CONSUMER VALUE POSITIONING:

Design environmental products to perform as well as (or better than)

alternatives.

Promote and deliver the consumer desired value of environmental

products and target relevant consumer market segments.

Broaden mainstream appeal by bundling consumer desired value into

environmental products.

5.2 CALIBRATION OF CONSUMER KNOWLEDGE:

Educate consumers with marketing messages that connect environmental

attributes with desired consumer value.

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GREEN MARKETING

Frame environmental product attributes as “solutions” for consumer

needs.

Create engaging and educational internet sites about environmental

products desired consumer value.

5.3 CREDIBILITY OF PRODUCT CLAIMS:

Employ environmental product and consumer benefit claims that are

specific and meaningful.

Procure product endorsements or eco-certifications from trustworthy third

parties and educate consumers about the meaning behind those

endorsements and eco-certifications.

Encourage consumer evangelism via consumers social and internet

communication network with compelling, interesting and entertaining

information about environmental products.

5.4 STRATEGIES FOR GREEN COMMUNICATION:

Make environmental messages consistent with the company’s existing

voice in the market place.

Empower consumers to get involved to make a difference.

Enlist cultural icons to tell the story.

Show that environmental initiatives lead to better quality products.

Be ready to experiment publicly, even if it doesn’t always lead to success.

Price environmentally preferable products comparable to conventional

ones.

Link environmental innovations to other benefits, like quality and

durability.

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GREEN MARKETING

SOURCE: www.Green at work mag.com

6. Attributes of the Green Consumers

33

GREEN MARKETING

To take the advantage of the emerging green market, it is important to

understand who green customers are and the factors influencing their

purchasing decisions and behavior.

Attributes of Environmentally

Conscious Consumers

Implication for Green Marketers

Target products to women who

generally buy on behalf of men and

families.

Will most likely be well educated,

young adult women who have more

money to spend.

Use the influence of children to

encourage parents to try green

products. The green consumers of the

future are generally knowledgeable

about environmental issues. They

should be offered samples and

increments to try products.

Will expect green products to function

as non-green products and won’t pay

much extra or sacrifice quality for

greener products.

Effectively communicate assurance of

quality-for example quality of

performances, look, feel, fit, comfort,

durability.

Will not buy green products on the

basis of environmental benefits alone.

Products choice is still based on

whether it meets their basic want or

need. Environmental features are

added selling points.

Like environmental attributes such as

energy efficiency or toxic substance

reduction with other benefits such as

lower price, convenience, or quality of

life improvements.

Will be more likely to respond to

product attribute that will personally

benefit them.

Emphasize personal benefits by using

terms such as ‘safe’, ‘non-toxic’, ‘cost

effective’ rather than more generalized

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GREEN MARKETING

green messages such as

‘biodegradable’ or ‘ozone friendly’.

Will tolerate only minimal

inconvenience in using green products

and don’t want to go out of their way

to buy them.

Making the use of product simple- e.g.

minimize or eliminate refilling bottles.

Select mainstream distributors

wherever possible. Offer one-stop

shopping and eye appealing displays.

Will be analytical, eager to learn, and

can be cynical about corporate claims

for green product unless they have

independent verification.

Reinforce product benefits with

evidence of corporate performance and

improvements. Educate consumers

about environmental issues and your

efforts through a variety of means.

Provide credible environmental

endorsements. Use labels in

compliance with government labeling

guidelines, to convey precise, detailed

information about your product and its

packaging.

Will not expect companies to have

perfect green credentials, but will look

for a commitment to improve and

evidence backed by facts.

Communicate your steps towards

sustainability and commitments to

improvement. Seek feedback and

promote your efforts to respond to

customer concerns.

6.1 Green Marketing Strategies versus Conventional Marketing:

35

GREEN MARKETING

CONVENTIONAL

MARKETING

GREEN

MARKETING

Consumers Consumers with lifestyles Human beings with

lives

Products “Cradle-to-gave” one size fits for

all products

“Cradle-to Cradle”

flexible services

Marketing and

Communication

Selling oriented and benefits Educational Values

Corporate Receptive, Independent,

competitive, Departmentalized,

Short term oriented profit

maximizing.

Proactive,

Interdependent,

cooperative, Holistic,

long term

6.2 Environmentally Conscious Consumer Behavior:

‘Environmentally Conscious Behavior’ (ECCB) is consumer behavior based on

some awareness of the environmental impacts associated with a product or

service, and a desire to reduce those impacts.

The term environmental consciousness does not have a standardized definition

in the body of academic literature; the reason can be due to arousal of the term

out of political and everyday language. Environmental consciousness is the

desire to protect flora and fauna, a willingness to scrutinize the consequences of

economic activity and a willingness to combine long-term with short-term

planning.

CONSUMER ENVIRONMENT

INPUT Social Stimuli, Marketer’s Efforts

36

GREEN MARKETING

6.3 Green Buyers and Green Consumers:

Research about the identity and nature of green consumer has been the central

character in the development of green marketing, as business attempt to

understand and respond to external pressures to improve their environmental

performance. Marketing practitioners and academics are attempting to identify

and understand green consumers and their needs, and to develop market

offerings that meet these needs.

6.4 SEGMENTATION OF GREEN CONSUMERS:

INFORMATION PROCESSINGExposure, Attention, Comprehension, New Knowledge and Belief, Integration

CONSTRUCTS

Values and Beliefs, Motivation,

Attitude, Knowledge

MEDIATORS

Product Knowledge, Involvement, Habit, Cost, Opportunity,

Availability, Convenience

OUTCOME

Attention, Product Comprehension,

Purchase Avoidance

EXTERNAL FACTORSCultural Norms, Group Influence, Family Influence, Unexpected Circumstances

CONSUMER ENVIRONMENT

37

GREEN MARKETING

True-Blue Greens- The most environmentally active segment of the

society.

Greenback Greens- Those most willing to pay the highest premium for

green products.

Spouts- Fence-sitters who have embraced environmentalism more slowly.

Grousers- Uninvolved or disinterested in environmental issues, who feel

the issues are too big for them to solve.

Apathetic- The least engaged group who believe that the environmental

indifference is main stream.

6.5 Identify and Close the Green Gap:

Right now, gaps exist on both sides of the market, between where customers are

today and the preferences that will help sustain a future market. There is also a

gap, between today’s products and green designs of tomorrow. Greening the

market means closing the gaps.

The focus on the market – oriented mechanisms is also required along with

R&D to close the gaps. These gaps cab be closed by innovatively addressing the

following area:

a) Green product:

This includes identifying customer’s environmental needs, developing

environmentally responsible green products like-products made from

recycled goods, products which save water, energy, gasoline, money, etc.

b) Green Value and lesser Price:

38

GREEN MARKETING

It has been analyzed that most customers will only be prepared to pay a

premium if there is a perception of additional product value.

Environmentally responsible products are often less expensive when

product life cycle costs are taken into consideration even though their

purchase cost is high.

c) Customer Information:

“Idea of Green” needs to be communicated to the customers through

campaigns and advertisements.

d) Special and Green Place:

The location must differentiate green marketers from competitors. This

can be achieved by in-store promotions and visually appealing displays or

using recycled materials to emphasize the environmental and other

benefits.

e) Green promotion Aided by ICT:

Smart green marketers will be able to reinforce environmental credibility

by using sustainable marketing and communication tools and practices.

E-marketing is rapidly replacing more traditional marketing methods. For

example, many companies are providing electronic statements by e-mail.

39

GREEN MARKETING

Greening the Market Means Closing the Gaps

Demand Supply

Consumer Preference Product Plans

Future Market

Environmental Values Green Design

40

GREEN MARKETING

6.8 Identify and Target the Green Consumer:

According to David Wheeler, the green consumers are distributed somehow like

this: Green Consumer, who no matter what will only buy the green product.

Green Activists that may not be able or willing to pay more, or to travel the

distance to the specialist store where the offered product is, but try to promote

the product and try to buy it any time they can, when the budget and the

opportunity allow them. Latent Greens, who are willing to pay more for the

product if the properties of the product, are same as of the others.

Fig: Types of Green Consumers

Thus to take the advantage of the emerging green market,

a) It is important to understand who green consumers are and the factors

influencing their purchasing decisions and behavior.

b) Target products to women who generally buy on behalf of men and

families.

Green Consumers 27%

Inacti ve 23%

Latent Green 40%

41

GREEN MARKETING

c) Use the influence of children (green consumers of the future) to

encourage parents to try green products.

d) Offer samples and incentives to try products, effectively communicate

assurance of quality-for example quality of performance, look, feel, fit,

comfort, durability, etc.

e) Linking environmental attributes (energy efficiency or toxic substance

reduction) with other benefits such as lower price, convenience or quality

of life improvements, emphasis on personal benefits by using terms such

as ‘safe’, ‘non-toxic’, ‘cost effective’, rather than ‘biodegradable’ or

‘ozone friendly’, making use of the product simple- for example,

minimize or eliminate refilling bottles, select mainstream distributors

where possible, offer one-stop shopping and eye-appealing displays,

reinforce product benefits with evidence of corporate environmental

performance and improvements.

SOURCE: www.Green marketing strategies.com

7. STRATEGIES TO BE IMPLEMENTED IN GREEN

MARKETING

42

GREEN MARKETING

7.1 STRATEGIES OF GREEN MARKETIN ARE:

I. PRODUCT DIFFERENTIATION:

Organizations are putting continuous efforts to differentiate their products and

services using green marketing practice. In a wide range of markets including

retailing etc companies have used eco performance to differentiate and to

compete. Products with poor eco performance can become targets for new

substitution, as a result of this many organizations are coming up with greener

ideas to differentiate their products from competitors.

II. DESIGNING BIO-DEGRADABLE PACKAGING:

It is seen that promotion of green products strongly influences the consumers

buying decisions. It is one of the most important factors of product

attractiveness. Thus it has been indicated that bio-degradable packaging will

affect in a strong and moderate way respectively on their buying decisions. As a

marketing strategy the companies should modify the product packaging by

using only the recycle as well as handmade paper in packaging. Instead of being

more mechanized the companies must find creative ways reusing the waste

products which are harmful to the environment.

III. PRODUCT STRATEGY:

43

GREEN MARKETING

In this strategy marketers can identify customer’s environmental needs and

develop products to address this issue, produce more environmentally

responsible packages and insure that products meet or exceed the quality

expectation of customers. In addition to that marketer can charge higher price

with highlighting eco-friendliness of the products.

IV. DISTRIBUTION STRATEGY:

In case of this strategy obtaining dealer support to green marketing practice is

essential. The location must differentiate from competitors and it can be

achieved by in-store promotions and displays by using recycle materials to

emphasize the environmental and other benefits.Even though distribution has no

big involvement in green marketing, few consumers are willing to get the

services from places and distribution channels which are not cause to

environmental pollution.

V. LIFE-CYCLE ANALYSIS:

Brands which aspire to be sustainable must “get their house in order” before

they start planning any green marketing initiatives. The best brands are

performing life cycle analysis- complex assessments which provide critical data

on social, environmental and economic impact of products through the supply

chain production process and after the purchase. Life cycle analysis tells a brand

just how far it needs to go before it claims to be sustainable.

VI. INCENTIVES AND STRUCTURAL FACTORS:

44

GREEN MARKETING

Commercialization programs and incentives help get new technologies

introduced examples include fleet programs to cultivate strategic niche markets

and by providing financial incentives such as the advanced vehicle tax credit

proposal in case of green vehicle purchase.

Consumers can be motivated by incentives and awards to:

Curtail – reduce the impact on the environment by modifying

extant living patterns.

Maintain – keep equipment in good working order.

Be efficient – undertake structural changes such as buying

environmental friendly equipment.

SOURCE: www.Greenatworkmag.com

8. RESEARCH METHDOLOGY

45

GREEN MARKETING

Research Methodology is a way to systematically solve the research problem. It

may be understood as a science of studying how research is done scientifically.

In it we study the various steps that are generally adopted by a researcher in

studying his research problem along with the logic behind them. It is necessary

for the researcher to know not only the research methods/techniques but also the

methodology.

Researchers not only need to know how to develop certain indices or tests, how

to calculate the mean, the mode, the median or the standard deviation, how to

apply particular research techniques, but they also need to know which of these

methods or techniques, are relevant and which are not, and what would they

mean and indicate and why. Researchers also need to understand the

assumptions underlying various techniques and they need to know the criteria

by which they can decide that certain techniques and procedures will be

applicable to certain problems and others will not.

8.1 PRIMARY DATA:

The primary data are those which are collected afresh and for the first time, and

thus happen to be original in character. We collect primary data during the

course of doing experiments in an experimental research but in case we do

research of the descriptive type and performs surveys. Here the Primary data

will be collected by means of preparing a questionnaire and getting it filled by a

large sample space. These questionnaires will help in drawing conclusions

about the case.

8.2 SECONDARY DATA:

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GREEN MARKETING

Secondary data means data that are already available i.e. they refer to the data

which have already been collected and analyzed by someone else. When the

researcher utilizes secondary data then he has to look into various sources from

where he can obtain them. In this case he is certainly not confronted with the

problems that are usually associated with the collection of original data.

Secondary data may either be published data or unpublished data.

8.3 DATA ANALYSIS & INTERPRETATION:

RESULTS:

 According to the analysis of questionnaire most of the respondents were not

aware about green marketing but after reading the questionnaire they realized

what it is all about.

1. Are you aware of the term green marketing?

a. Yes b. No

0 5 10 15 20 25 30 35 40

14

36

NoYes

The above bar graph indicates that out of 50, 36 respondents are not familiar with

the term Green Marketing. Many of them have a misconception with the term

Green Marketing.

2. Have you heard of any campaign related to Green Marketing?

47

GREEN MARKETING

a. Yes b. No

0

5

10

15

20

25

30

35

19

32

YesNo

From this bar chart we can say that most of the respondents are not aware of any

campaign related to green marketing.

3. Have you been part of any such campaign?

a. Yes b. No

05

101520253035404550

3

47

YesNo

We can see here that out of 50 respondents only 3 has been part of such type of

campaign.

4. Do you consider the environmental aspects of the products before buying

them?

48

GREEN MARKETING

a. Yes b. No c. Sometimes

yes24%

No28%

Sometimes48%

The above chart indicates that only 48% i .e. the majority of respondents

consider the Environmental aspect some times. And, only 24% consider the

environmental aspect of the product while buying it.

5. Do you think that Green Marketing and advertising are good sources of

information about green products and services?

a. Yes b. No

Yes94%

No6%

From this pie chart, it indicates that 94% respondents think that green marketing

and advertising are good sources of information about green products and

services.

49

GREEN MARKETING

6. Do you think that Green Marketing activities are good at addressing

environmental issues?

a. Yes b. No

05

101520253035404550 45

5

Yes No

We can see most of the respondents feel that Green marketing activities are

good at addressing environmental issues.

7. Do you think Green Marketing activities results in better products?

a. Yes b. No

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Yes No

In this above bar chart it is clearly indicates that 82% of respondents think this

strategy results in better products while 18% have different opinion.

.8. Do you think that Green Marketing strengthen company’s image in the mind

of consumers?

50

GREEN MARKETING

a. Yes b. No

05

10152025303540 37

13

YesNo

The above chart indicates, majority of the respondents, i.e. 37 respondents feel

that it strengthen company’s image in the mind of consumers.

9. Do you think that companies that focus on environmental concerns persuade

consumers to buy products?

a. Yes b. No

Yes58%

No42%

Most of the respondents feel that it helps to persuade consumers to buy

products.

10. Do you think that by implementing green marketing strategy the

companies are able to gain competitive advantage over others?

a. Strongly agree b. agree c. disagree d. strongly disagree

51

GREEN MARKETING

strongly agree agree disagree strongly disagree0

5

10

15

20

25

Most of them agree that by implementing green marketing strategy the

companies are able to gain competitive advantage over others.

11. Do you think sometimes companies are trying to cheat customers in the name

of green products?

a. Yes b. No

05

101520253035

33

17YesNo

Here, we can say that most of the respondents have negative opinion. They feel

that sometimes companies are trying to cheat the customers in the name of

green products.

SOURCE: www.Green marketing mag.com

CONCLUSION

52

GREEN MARKETING

Green marketing do not strengthen company’s image in the mind of respondents

that is very much clear from trustworthiness of green claims and certainly it do

not have positive image of the organization in the minds of the respondents. It

was observed that the respondents who were more proactive with the

environmental behavior have positive attitude towards green advertisements. It

means green advertisements have positive impact on only those who are already

practicing it.

Rest of the respondents who were passive had very less impact on their buying

behavior. This is the crucial aspect that needs to be changed so that they can

have positive impact on all the target market which will have an effect on their

buying behavior. The result of the study indicate that the advertisements not

reflected the companies level of greenness and the proposition that green

advertising reflects environmentally sound strategic and structural level

decisions.

Green marketing covers more than a firm's marketing claims. While firms must

bear much of the responsibility for environmental degradation, the

responsibility should not be theirs alone. Ultimately green marketing requires

that consumers want a cleaner environment and are willing to "pay" for it,

possibly through higher priced goods, modified individual lifestyles, or even

governmental intervention.

Until this occurs it will be difficult for firms alone to lead the green marketing

revolution. Having said this, it must not be forgotten that the industrial buyer

also has the ability to pressure suppliers to modify their activities. Thus an

Environmental committed organization may not only produce goods that have

reduced their detrimental impact on the environment, they may also be able to

pressure their suppliers to behave in a more environmentally "responsible"

fashion.

53

GREEN MARKETING

Green marketing covers more than a firm's marketing claims. While firms must

bear much of the responsibility for environmental degradation, ultimately it is

consumers who demand goods, and thus create environmental problems. One

example of this is where McDonald's is often blamed for polluting the

environment because much of their packaging finishes up as roadside waste

while firms can have a great impact on the natural environment, the

responsibility should not be theirs alone

Thus an environmental committed organization may not only produce goods

that have reduced their detrimental impact on the environment, they may also be

able to pressure their suppliers to behave in a more environmentally

"responsible" fashion. Final consumers and industrial buyers also have the

ability to pressure organizations to integrate the environment into their

corporate culture and thus ensure all organizations minimize the detrimental

environmental impact of their activities.

REFERENCE

Books:

54

GREEN MARKETING

Chopra, S. Lakshmi (2007), "Turning Over a New Leaf", Indian

Management, Vol-64, April-2007

Othman, J.A. et al, "Avoiding Green Marketing Myopia", Environment,

Vol-48, June-2006

Philip Kotler & G. Armstrong .Principles of marketing, Edition- 12, March 9, 2007

Richa Agrawal, Green Marketing: An Emerging Trend (PMR, Vol.5, April 2000)

Magazines:

Green at Work Magazine : Edition - March/April 2006 by Bruce

Piasecki.

Article - Future of Green Marketing

Edition - Jan/Feb 2007 by Rob Bradley

Article - Green Warming Solutions

Websites:

http://www.greenmarketing.com/blog/

http://greenmarketing.net/stratergic.html

http://epa.qld.gov.au/sustainable_ industries

http://wmin.ac.uk/marketing research/marketing/greenmix.html

ANNEXURE

GREEN MARKETING & ITS IMPACT ON CONSUMERS

55

GREEN MARKETING

NAME…………………………………………………………..

ADDRESS………………………………………………………

1. Are you aware of the term green marketing?

a. Yes b. No

2. Have you heard of any campaign related to Green Marketing?

a. Yes b. No

3. Have you been part of any such campaign?

a. Yes b. No

4. Do you consider the environmental aspects of the products before buying them?

a. Yes b. No c. Sometimes

5. Do you think that Green Marketing activities are good at addressing environmental issue?

a. Yes b. No

6. Do you think that Green Marketing activities are good at addressing environmental issues?

a. Yes b. No

56

GREEN MARKETING

6. Do you think Green Marketing activities results in better products?

a. Yes b. No

8. Do you think that Green Marketing strengthen company’s image in the mind of consumers?

a. Yes b. No

9. Do you think that companies that focus on environmental concerns persuade consumers to buy products?

a. Yes b. No

10. Do you think that by implementing green marketing strategy the companies are able to gain competitive advantage over others?

a. Strongly agree b. agree c. disagree d. strongly disagree

11. Do you think sometimes companies are trying to cheat customers in the name of green products?

a. Yes b. No