By

Green Marketing GuideA Research Perspective

By

Selvarasu a. MutharasuProfessor

Annamalai University

Green Marketing Guide— Research perspectives

— Educating Green Marketing

Consulting Green Marketing— Consulting Green Marketing

Green Marketing [GM]

— A strategic marketing technique — To gain maximum business performance using— Green products— Green brands— Green brands— Green consumers— Greening supply chain— Demand-supply integration

Stakeholder of GM— green ranking— green brand survey— green confidence index— green score

green brand reputation score— green brand reputation score— green marketing educational programme and— green certification professional

India : Top 10 Green brands1. Amul2. Dabur3. Infosys4. Taj hotels5. Britannia5. Britannia6. Suzlon7. Hindustan Unilever8. Wipro9. Maruti10. Godrej Consumer Products

Take away from GM— Voluntary and mandatory labels has become country specific— A syllabus for green marketing education— A multi-pronged research proposal — Newness in green marketing practices

Green hosting — Green hosting — Green politics — Energy stars

PERSONAL HEALTH$117 billionNatural, organic products, Nutritional productsIntegrative health careDietary supplements

GREEN BUILDING$100 billionHome certificationEnergy Star appliancesSustainable flooringRenewable energy systems

ECO TOURISM$42 billionEco-tourism travelEco-adventure travel

Green Market Size in US for LOHAS

Dietary supplementsMind body spirit products

Renewable energy systemsWood alternatives

ALTERNATIVE TRANSPORTATION$20 billionHybrid vehiclesBiodiesel fuelCar sharing programs

NATURAL LIFESTYLES$10 billionIndoor & outdoor furnishingsOrganic cleaning suppliesCompact fluorescent lightsSocial change philanthropyApparel

ALTERNATIVE ENERGY$1 billionRenewable energy

creditsGreen pricing

Raw is Green

Raw Bhagalpur silk, linen and cotton-linen blends; the golden yarns were made of silk wastes that he further hand-knitted for a spectacular effect.

All that glitters green is not greenGreenwashing Greenness

Black is Green

— Black is internal— Green is External— Green Marketing is Planetary Marketing

— Geology has been renamed as Earth Science— Green Marketing can also be named as ‘Earth Marketing’ or

‘Planetary Marketing’

Research Perspective

Effect of Octagonal Green Marketing Mix on LOHAS and LOVOS Consumer Segment Model

GM - Research— Awareness is more among consumers— Mandate of business is known to people— Is part of Sustainable marketing practices— Consumer decides to reward green products

Green residential development— Green residential development— Knowingly Greenwashing [exploitation] starts— Green Certification [Minimum 70% Green]— Green Scores & Green Brand Scores

Who is a Green Consumer?— A target customer of greenness — whose consumption patterns focused on the preservation of

resources; — Willingness to limit — the amount of resources consumed;— the amount of resources consumed;— materials that endanger the environment, and — avoid using products that endanger the health of consumers

By Peattie, 2001

Lifestyle and Greenness— Lifestyle of consumer has been oriented to their— Plan— Work— Fashion— Recreation and— Recreation and— price

By [Wen-Lan Wang, 2012]

Green product’s advertising— perceived quality— consumer’s willingness to pay— information seeking and— suspicion

Dimensions reported to understand consumer’s perception towards decisiveness

By [Saurabh Battacharya, 2011].

Green Confidence Index (GCI)— A monthly measure of — Responsibility— Information and — Purchasing — in American marketplace to — in American marketplace to — reveal tracking & flagging of market place perception,— future changing intentions of consumers and — evolving green economy

[Greenbiz.com, visited January 2013].

Green Brands and Green Halos— with poor green practices but strong green halos that colour

peoples’ perception and vice-versa

[Newsweek, visited on January 21, 2013]

Green products call for eco-friendly — where cost of production and price goes up — affordability of consumers — usage of green marketing concept in the travel and tourism

industry — the term is popular as— the term is popular as— ‘zero carbon/— carbon neutral’

[Al Bawaba Ltd., 2011]

GE’s Ecomagination— Multimillion dollar campaign for greenpeace — 17 products with measurable environmental performance

advantages,— Lexan film that replaces conventional paint— Harmony water-conserving washing machines— Harmony water-conserving washing machines— the new fuel-efficient GEnx jet engine and — GE's Evolution locomotive, — a 208-ton, 4,400hp workhorse that burns 3% less fuel and puts

out 40% less pollution than its immediate predecessor[Fisher Daniel, 2005]

Socially responsible marketing• Emphasised distinguishing interest in green

marketing orientation among different stakeholders of business

[Pranee Chitakornkijsil, 2012].

Demand – Supply integration [DSI]— Giving greenness to gain consumer’s perception— supply chain ability — green campaign and green marketing for competitive edge in

business performance

[Jon F. Kirchoff et al., 2011]

Green marketing tools

— Eco-label & Eco-brands— Environmental advertisements— energy conservation— agricultural products— agricultural products—Degradable— non-toxic plastic packaging material— hazardous metal-free electrical and electronic equipment— biodegradable cleaning agents and recycled paper

[Elham Rahbar and Nabsiah Abdul Wahid, 2011]

Eco-brands— Emotional benefits—A feeling of well-being—auto-expression benefits — the socially visible consumption — the socially visible consumption —nature-related benefits are reported

— The eco-image gain green feel toward —eco-image of country—manufacturer and —products.

Eco-brands— papers and plastics from — recycled materials, soy, corn plastic, stone, hemp, or organic

cotton- all of which are sustainable materials drives green marketing efforts realistic.

— In printing the marketing materialsrecycled paper for direct mails and publishing marketing pamphlet, — recycled paper for direct mails and publishing marketing pamphlet, brochure on line in place of print are resounding change in marketing with alternative forms to promote green marketing in action[

[Sebor, Jesica, 2007]

The certification of sustainably— forest and timber wood strategically has been strongly

supported by green consumers and their willingness to pay positively for certified product in Greece

6%6%6%plus6%plus

[Ioannis Papadopoulos et al., 2010].

The depth of greenness— Lean green (product)— Defensive green (product & promotion)— Shade green (product, price & promotion) and— Extreme green (product, price, place & promotion).

[Chun-Shuo Chen, & Long-Yi Lin., 2011]

America’s Federal Trade commission— Reasons for revision of green guide in carbon offset and

renewable energy certificate (REC) — claiming single attribute— lack of proof— vague claims— vague claims— claims irrelevant to product— true claims but distract product’s true problem— claiming certificate by independent authority

[Bergeson Lynn L., 2008]

Compostable Packaging

— Greening of the packaging has been done by reducing from muti-layer to few layers and replacing the rigid polyethylene film by sustainable flexible films like polylactic acid that are degradable, decomposable and renewable are degradable, decomposable and renewable

[Lecki, Molly, 2008] .

Green Monkey A Super Premium Brand

— A niche-in-niche organic baby food and packaging company in New Zealand

— claimed that 100 percent organic is much more reliable than 95 percent organic food.

— The truth of success is — The truth of success is — in the processing of food and — a highly traceable product with advanced thermal processing — gives an official 12-months shelf-life with a pouch system for

superior flavour and freshness as an innovator than a manufacturer [Baker, Glenn, 2010].

8Mix2Segment Green Marketing Model

—bimodal class —octagonal offerings of GM Mix—for sustainable green marketing —for sustainable green marketing

8Mix2Segment Green Marketing Model— Sustainable marketing and sustainable

advertising of octagonal green marketing mix has direct effect on LOHAS and indirect effect on LOVOS consumer segment towards LOVOS consumer segment towards remanufactured, recycle, reuse and household composting both greenness and green washing for green branding.

LOHAS ~ LOVOS— Lifestyles of Health & Sustainability; upscale and well-

educated population segment) — Lifestyle of Voluntary Simplicity— LOHAS 17 %; Naturalites (19%), Drifters (19%),

Conventional (26%) and Unconcerned (19%)Conventional (26%) and Unconcerned (19%)

[NMI’s 2007 LOHAS consumer segmentation model]

The octagonal green marketing mix— The offering in the form of eco-product (protect & liquidate

environmental damages), — Price (little higher)— Place (ecological packaging & regional source), — Promotion (CP certificate & ISO14000) — Promotion (CP certificate & ISO14000) — Plus— Social marketing drivers 4Ps....

The octagonal green marketing mixSocial marketing drivers 4Ps....

Publics (external & internal; policy makers and gatekeepers & approval and implementers), partnership (associating groups)policy (change in directives & media advocacy programs) policy (change in directives & media advocacy programs) Purse strings (cost & funding).

Green marketing offerings - products and services— Organic and locally grown food— Organic and natural personal care products— Hybrid and electric cars as well as city bicycles— Green and sustainable building— Sustainable or ecotourism— Energy efficient electronics/appliances— Energy efficient electronics/appliances— Socially responsible investing— Natural household products (paper goods and cleaning products)— complementary alternative and preventive medicine (Naturopathy, Chinese

medicine, etc.)— Fair trade products— Literature in the mind/body/soul, holistic health, and — New age genres.

[NMI]

Propositions— Green Marketing Mix components has positive direct effect on the LOHAS

consumer segment as a part of both sustainable marketing and sustainable advertising towards remanufactured, recycle, reuse, and household composting products

— Green Marketing Mix components has positive indirect effect on the LOVOS consumer segment as a part of both sustainable marketing and sustainable advertising towards remanufactured, recycle, reuse, and household composting products

Task NameDefinition phase

Kick off meetingEstablish feasibilityFinalization of work plan1st pre-test meeting for green marketing perception measuring scale items1st Interim report and models

Stage 1 (Measuring Tool selection)Listing of consumersListing of measuring tool for GM perceptionListing of measuring tool for Consumer SegmentLOHAS & LOVOSShort listing of measuring tool for Green Marketing [Green Consumer Segment- Green Branding Value]

Stage 2 (Qualitative assessment of Consumers)Listing of Green Products/Brands photograph

Listing of Green Service/Brands photographParticipation and selection of photographs by Consumers – LOHAS, LOVOS &Other segmentsFinal report stage 1

Stage 3 - hosting of survey instrument/ questionnaire on surveymonkey.comMediation and facilitation in administering and filling up of questionnaires by consumers - Area 1, 2,3 & 4Final report stage 2

Stage 4 - Compilation of Data and report writing on stage 2Editing and coding of data - Area 1, 2, 3 & 4Final report stage 3

Stage 5 Final Research Project Management

Task Name Quarter 1 Quarter 2 Quarter 3 Quarter 4

Definition phaseM1

M2 M3 M4 M 5

M 6 M7 M 8 M9

M10 M11 M12

Kick off meeting

Establish feasibility

Finalization of work plan

1st pre-test meeting for green marketing

perception measuring scale items

1st Interim report and models

Stage 1 (Measuring Tool selection)

Listing of consumers

Listing of measuring tool for GM perception

Listing of measuring tool for Consumer Segment

LOHAS & LOVOS

Short listing of measuring tool for Green

Marketing [Green Consumer Segment- Green

Branding Value]Branding Value]

Stage 2 (Qualitative assessment of Consumers)

Listing of Green Products/Brands photograph

Listing of GreenService/Brands photograph

Participation and selection of photographs by

Consumers – LOHAS, LOVOS &Other segments

Final report stage 1

Stage 3 - hosting of survey instrument/

questionnaire on surveymonkey.com

Mediation and facilitation in administering and

filling up of questionnaires by consumers - Area

1, 2,3 & 4

Final report stage 2

Stage 4 - Compilation of Data and report writing on stage 2

Editing and coding of data - Area 1, 2, 3 & 4

Final report stage 3

Stage 5 Final Research Project Management

Stage Colour Code Duration Dependency0 Green 2Months1 Blue 3Months Stage 02 Purple 3Months Stage 13 Red 3Months Stage 24 Yellow 4Months Stage 35 Light Blue 1Month Stage 45 Light Blue 1Month Stage 4

Methodology— An exploratory qualitative study — Three pronged approach in the data collection— Initial stage of research - content analysis for conclusive

evidence -Green identity in the advertising messages in the mediathe media

— The second stage – identifying LOHAS and LOVOS customers using PET & ZMET

— The third stage – Remanufactured, reuse, recycle

LOHAS

Lifestyle

Agree &

Strongly Agree

Disagree,

Strongly Disagree

& NA-NDA

%

& NA-NDA

%

LOHAS 36.8 63.2

Naturalite 34.2 65.8

Drifters 36.8 63.2

Conventional 52.6 47.4

Unconcerned 39.5 60.5

LOVOS - Organic

Lifestyle

Agree &

Strongly Agree

%

Disagree,

Strongly Disagree

& NA-NDA% & NA-NDA

%

Devoted 48.5 51.5

Temperate 54.5 45.5

Dabbler 54.5 45.5

Reluctant 57.6 42.4

Green ProductsGreen

Product/Service Mean

Std.

Deviation

Natural product 1.76 .639

Organic products .93 .775

Nutritional products 1.36 .756

Wood alternatives 1.32 .802

Eco-tourism travel 1.17 .805

Eco-adventure travel .93 .845

Hybrid vehicles 1.15 .744

Biodiesel fuel 1.11 .779

Car sharing programs .93 .828Health care product 1.33 .751

Dietary supplements 1.04 .759

Mind body spirit

products.94 .837

Home certification 1.01 .831

Energy Star appliances 1.04 .813

Sustainable flooring .74 .750

Renewable energy

systems1.10 .858

Car sharing programs .93 .828

Indoor furnishing 1.21 .804

Outdoor furnishings 1.33 .732

Organic cleaning supplies 1.11 .832

Compact fluorescent lights .96 .846

Social change philanthropy 1.19 .781

Apparel 1.18 .828

Renewable energy credits 1.01 .813

Green pricing 1.24 .957

Pre-Test Results -1sustainable marketing

Remanufactured

13.9Reuse

16.7

Recycle

23.6

Household composing

22.3Greenness of products

Yes

41.7%

No

19.4%

No idea

Missing

25.3%41.7% 19.4%15.3%

25.3%

Use of green colour and false message misguide me

37.5 20.8% 18.1% 23.6%

Octagonal Mix I II III IV V VI VII VIII IX XBuy eco-products/green products/organic product

15.3 11.1 15.3 4.2 6.9 5.6 2.8 1.4 8.3 5.6

Don’t mind to pay little extra price

5.6 20.8 11.1 4.2 8.3 1.4 2.8 8.3 5.6 8.3

product sourced from local/regional marketplace

6.9 9.7 18.1 8.3 11.1 2.8 2.8 5.6 4.2 6.9

Bio/decomposable 8.3 6.9 9.7 13.9 6.9 11.1 5.6 5.6 4.2 4.2

Pre-Test Results -2

Bio/decomposable packaged products Eco-label/mark/certification

8.3 6.9 9.7 13.9 6.9 11.1 5.6 5.6 4.2 4.215.3 8.3 6.9 4.2 11.1 5.6 9.7 6.9 4.2 4.2

Government approved seal

12.5 12.5 4.2 6.9 9.7 11.1 2.8 2.8 12.5 1.4

Companies associating environment issues

12.5 6.9 6.9 12.5 6.9 13.9 2.8 4.2 9.7

Don’t buy products/brands reported in the media negatively

8.3 6.9 5.6 9.7 6.9 11.1 5.6 12.5 1.4 8.3

Cost conscious/financing 9.7 15.3 12.5 2.8 4.2 1.4 11.1 - 5.6 13.9

Number of consumer durables in the household use * Educational level of Chief Earning person in the family Crosstabulation

Educational level of Chief Earning person in the family

Total5th to 9th

std Diploma SSLC/HSC UG/PG Professional

Number of consumer durables in the household use

1 Count 1 2 4 2 0 9

% of Total 1.4% 2.8% 5.6% 2.8% .0% 12.5%

2 Count 0 1 0 0 0 1

% of Total .0% 1.4% .0% .0% .0% 1.4%

3 Count 0 0 3 1 0 4

% of Total .0% .0% 4.2% 1.4% .0% 5.6%

4 Count 1 2 1 3 1 8

% of Total 1.4% 2.8% 1.4% 4.2% 1.4% 11.1%

5 Count 0 1 7 2 1 11

% of Total .0% 1.4% 9.7% 2.8% 1.4% 15.3%

6 Count 1 0 0 7 1 9

% of Total 1.4% .0% .0% 9.7% 1.4% 12.5%

7 Count 0 1 1 3 1 6

% of Total .0% 1.4% 1.4% 4.2% 1.4% 8.3%

8 Count 0 2 4 7 1 14

% of Total .0% 2.8% 5.6% 9.7% 1.4% 19.4%

9 Count 0 1 2 2 2 7

% of Total .0% 1.4% 2.8% 2.8% 2.8% 9.7%

10 Count 0 1 0 1 1 3

% of Total .0% 1.4% .0% 1.4% 1.4% 4.2%

Total Count 3 11 22 28 8 72

% of Total 4.2% 15.3% 30.6% 38.9% 11.1% 100.0%

Educating Green Marketing— Course content— Books— Syllabus— Assignments

Green Marketing Texts— “Esty and Winston’s Green to Gold

— Ottman’s Green Marketing.

— Mintu and Lozada (1993) trace the greening of marketing education back to the 1970s

— Bridges and Wilhelm (2008) added an invaluable reference for the — Bridges and Wilhelm (2008) added an invaluable reference for the course.

— Other prime sources for lecturing on specific topics included Fuller (1999) and edited volumes by Charter and Polonsky (1999) and Galea (2004).”

Course Content Green Marketing Management— Environmental Marketing — Ecological Marketing— Green Marketing— Sustainable Marketing

Sustainable Advertising — Sustainable Advertising — Responsible Consumer— Greening Tools and Techniques— Research Methods for Green Marketing review— Green Marketing Myopia

Syllabus – Green Marketing— Unit – I Introduction to Green Marketing— Unit – II Sustainable Marketing— Unit – III Green Product, Green Brands and Green

Pricing— Unit – IV Greening of Merchandise and — Unit – IV Greening of Merchandise and

Environmental message— Unit –V Greenwashing and Green consumers

Assignments— Short assignment comparing pricing of two brands or

versions (one “regular” one “green”) of the same product category (of the student’s choosing) - Green alternative

— Longer projects included the semester-long (which included — Longer projects included the semester-long (which included clothing, cosmetics and sports stadiums, among others), and an analysis of an advertising campaign for a “green” product, service, or idea.

Consulting Green Marketing— The household composting by natural mill— Conserving water in cleaning clothing— Consumer education in resource utilization — The vegetarian and non-vegetarian centred green marketing

Chemicals preservatives— Chemicals preservatives— The packaging materials in its proportion of multiple layers

Consulting Green Marketing— The degree of greenness to 100 percent is again a criterion in

the food items especially to make consumers hassle free. — Green branding and green advertising — Bureau of Indian Standards [BIS] extends its support to

standardisation and labelling standardisation and labelling

Consulting Green Marketing— Green brand building with greenness identity and image. — Green rank survey— Green brand ranking— Green score for companies and green certification

Consulting Green Marketing— Biodegradable & Compostable— Fair Trade— Renewable Energy— Organic

Wood and Paper Products — Wood and Paper Products — Energy Efficiency — The reasonable cost for the green seal

Conclusion— Green marketing is a form of niche marketing

— In fact a niche-in-niche marketing

For greenness and organic food market— For greenness and organic food market

Conclusion— It is also considered by almost all corporate either in the

form of sense and simple orientation of greening or in the form of greenwashing

Conclusion— The emerging market segments in the value of health,

sustainability, simplicity etc. are an attraction for value and business performance.

— Sustainability marketing and sustainability advertising raise responsible consumers on one side and users of responsible consumers on one side and users of remanufactured, reuse and recycled products on the other side.

Conclusion— The uses of household composting natural mills have gained

importance and its acceptance in the market is noticed. — The need for consumer research in the lines of 8GM-

Mix2Segment Green Marketing— Need for consumer education and — Need for consumer education and — Consulting is the take away from green marketing initiatives

Green Marketing - LyricLOHAS,LOVOS Consumershit Octagonal Green Marketing Mixprotect/liquidate environmental damagebest-packaging for little high price organic with marking(promoting) green seals approvals associating group prevent media advocacyits the purse stringGreen marketing is ecological gain

Green seal, green label voluntary green label mandatory gain green confidence green index green score green reputation

Natural Nutritional dietary mind body spiritEnergy star Wood alternatives (Green building)Ecotourism travel, Ecotourism adventure, hybrid

energycar sharing, Natural lifestyle for organic, renewable Green marketing is ecological gain

Green marketing is environment gainGreenwashing drain Green marketingGreen marketing gain greenness Remanufacture gain greenness Reuse gain greenness Recycle gain greenness Green brand is everything Green branding is everywhere

car sharing, Natural lifestyle for organic, renewable energy

Green pricing for responsible consumergreen education, green certificationGreen marketing is sustainable developmentGreen brands is everything Green branding is everywhere LOHAS,LOVOS Consumershit Octagonal Green Marketing Mixprotect/liquidate environmental damage

Selvarasu a. MutharasuANNAMALAI UNIVERSITY

THANKING YOUTHANKING YOU