Green Marketing 30

8/7/2019 Green Marketing 30

1/47

Green Marketing:Better Late Than Never

-- Ambika Lal

Faculty Member, INC Ghaziabad.

The author can be reached at

[email protected]

Green marketing is the need of the hour when we are seeing environmental

degradation every single day. Although eco-friendly products are slightly expensive

compared to their traditional counterparts, they offer many advantages. While the

market for green products is definitely on the increase, the "green marketing"

campaign is yet to achieve a critical mass. There is an urgent need for both marketers

and consumers to appreciate the importance of green products.

We are not here to sell the consumer on saving the planet. This is about `saving me'

we are the next endangered species on the list.

-- Jacquelyn OttmanAuthor of "Green Marketing: Opportunity for Innovation"

Green marketing can be defined as the marketing of products that are regarded to

be safe for the environment. The quality of our environment is deteriorating with each

passing day. It has become a challenge for all human beings to safeguard Mother

Earth and green marketing is a small endeavor in this direction. Green marketing can

serve as an effective tool for encouraging the sale of a product by using its ecological

credentials.

It all began with the perception that many consumers will choose products that do not

damage the environment over less environment-friendly products, even if they cost

more. Green marketing incorporates a wide range of activities to meet ecological

standards. These include: product modification, changes in the production process,

packaging changes as well as alterations in advertising, so as to have minimum

detrimental effect on the environment. In the long run, green marketing benefits one

and allthe environment, businesses and human beings.

Green marketing is also known as environmental marketing or ecological marketing. It

includes marketing of products that are phosphate-free, replenishable, eco-friendly,

ozone-friendly and recyclable. Consumers spend billions of dollars on buying goods

and services every year, many of which harm the environment by way of how they are

harvested, made or used. The drive is on to motivate consumers to adopt

environmentally safe alternatives, while encouraging manufacturers to develop moreeco-friendly products by offering incentives to them.

It would be incorrect to state that the concept of green marketing originated quite

recently. It has been in existence since the first Earth Day in 1970. But nothing much

happened until the 1980s. This was the time when people visibly started taking

interest in saving the environment, eventually leading to increased interest in green

products and services. There was reciprocation from the manufacturers to the rising


2/47

demand for environment-friendly, energy efficient, biodegradable and compostable

products from the customers.

In 1992, the Federal Trade Commission (FTC) came forward with guidelines for the

application of environmental terms like, `biodegradable', `compostable', `recyclable',

`reusable', etc. According to FTC and the US Environmental Protection Agency,

"environmentally preferable products" may be defined as those goods and services

that have a smaller adverse impact on the environment and the human health, when

weighed against other goods and services that are used for the same purpose. It is all

about how the raw materials are obtained, given shape to, enclosed, distributed and

recycled, and how the service and the products are made available to the consumers.

If any company wants to promote itself or any of its products/services as being

environment friendly, it must then abide by the rules laid down by FTC.

Green marketing has evolved through three phases. The first phase was termed as

`ecological' green marketing. During this period, all marketing activities revolved

around ecological problems, providing timely and effective remedies for the same. The

second phase was `environmental' green marketing during which, the focus was onthe development of technology which is environmentally safe. The thrust was on

designing new products which help in the reduction of waste effluents and pollution.

The third phase commenced in the late 1990s and this phase was actually the

`sustainable' green marketing phase. This was at its peak when the former President

of the United States, Bill Clinton, had directed all federal offices to buy and use

environmentally safe products.

Green marketing campaign can be started by ensuring credibility of the green claims.

This can be achieved by having the product certified that it was produced in an

environmentally sound manner. Once certified, the eco-labels enable the consumers to

make educated and responsible choices.

Call to Change Peoples' Mindset

It is a general tendency among customers to go in for a cheaper alternative, rather

than purchase a more costly green and eco-friendly product. It has really been an

uphill task for the `green activists' to reach to the masses and change their way of

thinking. The proponents of green marketing emphasize that the `greenness' of a

product should be considered as a necessity by customers while taking the buying

decision, rather than a luxury.

It is also possible that marketers may put on a show of supporting the environment

without actually doing so. This is known as `greenwashing'. It is the presenting of aproduct or service as green, when it is actually not.

However, green marketing can be a very powerful marketing tool, when it is used

correctly and with fair intentions. We need to follow three principal dictums for

effective green marketing; which are:

y Be genuine


3/47

y Educate your customers, and

y Give them the opportunity to participate.

Accomplishments in Green Marketing

There has been a significant change in the mindset of customers, and manufacturers

are leaving no stone unturned to respond to the shoppers' demands. The hotel

industry is showing maximum inclination towards green marketing by projecting their

eco-testimonials more aggressively. The concept of `green inn' is catching on. For

example, hotels have been suggesting to their guests to reuse towels for the period of

their stay, so as to save water and energy spent on laundering.

A lodge at Sun Ranch in Cameron, Missouri (in the US) dedicatedly plants 10 trees in

the Amazon region for every guest's stay in its place. Another effort is being made at

The Hilton in Naples, Florida (USA). The hotel is growing a Confederate Jasmine vine

garden on top of its roof, which keeps the building effectively cool and the best feature

is that the garden is watered with condensation waste from the air conditioners.

According to The American Hotel and Lodging Association, when it put up `Green BestPractices' resource guide on its official website, it soon became one of the most visited

sites in recent times.

Clearly, the environment is becoming a priority for hoteliers and that too for good

reasons. The general public too has started taking a firm stand on its responsibility

towards the environment and according to the Travel Industry Association-USA, more

American adults are keen to select an environmentally responsible hotel. "Putting the

`eco' in front of your name gets attention", according to Ted Martens, director at

Sustainable Travel International, a nonprofit organization in the US that educates

travelers and travel providers about ecology conservation. As an offshoot, the concept

of `Green IT' has evolved as well, which is being taken very seriously by many

companies, particularly in Britain. Here, almost half of the large IT firms have adopted

the green IT strategy.

Measures Taken in India

y Introduction of Compressed Natural Gas (CNG) and Unleaded Petrol in

Delhi: This improved the quality of petrol and has helped bring down pollution

levels.

y Solar Equipment: Solar equipments are the need of the hour, as they assist

in enhancing the quality of our environment by not generating noise or air

pollution. They also conserve energy.

y Energy Conservation: Compact Fluorescent Lamps (CFLs) provide an energysaving alternative to incandescent lamps, and they are also very effective in

bringing down electricity expenses. Today, we find widespread use of CFLs.

Similarly, introduction of hybrid and electric vehicles is a useful measure for

reducing air pollution.

y Eco-friendly Furniture: It is a good substitute for classical wooden furniture

which we use in our households. Eco-friendly furniture draws more on waste


4/47

products and other by-products, which do not pose any threat to our

environment and depends less on wood.

y Recycling: Recycled plastics, recycled rubber, textiles, recyclable synthetic

and waste products go into the making of many products such as eco shoes.

Similarly, eco-friendly paints are being manufactured that have non-hazardous

and natural raw materials as their ingredients. Such paints are the need of the

hour to make our environment safer. Handmade paper is much in demand as

it is made of non-wood resources. Handmade paper has dual benefits, as it

help conserve trees and also reduces pollution.

It is often said that the green niche can be more appealing and lucrative. Customers

who are environmentally aware keep on learning more about green products and do

not mind paying more for such products. However, Edwin R Stafford, Associate

Professor of Marketing at Utah State University's College of Business, states that even

after so much endeavors and publicity, only a small fraction of consumers base their

buying decisions on a product's environmental quality. People, in general, although

they are aware, do not take environmental factors into consideration while making a

purchase. However, they definitely should, during these times of deterioratingenvironment.

Nonetheless, there is huge untapped potential for the marketing of green products

which provide an immediate advantage to the consumers. Several examples can be

quoted even from India, where customers are using them because of their practical

benefits. These include front-loading energy-efficient washing machines and other

appliances, compact fluorescent lamps, solar water heaters, etc. But we cannot ignore

the fact that the success of many green products is not because of their `greenness',

but due to the utility and the practical value they provide to the customers. This is

where education will have to play an important role in the marketing efforts. People

need to be made aware about the benefits of using green products. A macro-level

thinking needs to be inculcated amongst the consumers.

Ottman's Rules of Green Marketing

According to Jacquelyn Ottman, there are five rules for effective green marketing.

These are:

y Companies and customers need to reciprocate in creating awareness about

and demand for green products. It is important for marketers to know the

customer and his requirements.

y Consumers have to feel that using an eco-friendly product can make a

difference to their lives.Otherwise, why should a consumer bother to buy sucha product, which may be costlier?

y Consumers need to believe the claims made by the company. Open and

transparent communication is certainly the best policy to adopt, to gain

support from consumers. Transparency is the best policy.

y The product has to work. The buyers need to be reassured regarding the

quality of the product. Otherwise, they would think that nothing much is


5/47

received in return from these green products, in spite of spending more on

buying them.

y Consumers do not think much about paying more for a better product if they

are convinced of its worth. They pay more money for energy labeled and `star

graded' products which consume less electricity and produce less greenhouse

gas emissions.

Conclusion

With the progressive degradation of the environment with each passing day, green

marketing has become a necessity, to sustain the quality of our environment. It is

high time we understood the importance of a healthy environment. If the general

public is still not able to foresee the detrimental effects of environmental damage,

then probably our future generations will never be able to know the meaning of a

`healthy' environment. It is expected that if a company is already competitive in

terms of quality, price and performance, adding `green claims' and eco labels to its

marketing strategy would augment its brand image and safeguard its market share

amongst those who fail to do so.


6/47

Welcome to PSGIM COLLEAdvanced Search |Tips

IUP Publications Online

About IUP Magazines Journals Books Amicus Archives)DVW)LQG

d Tour |Recommend | Subscriber Services | Feedback | Subscribe Online

Magazines >> Finance Management Marketing

Marketing Mastermind

January'09

Archives

2009

Sep '09 Oct '09 Nov '09 Dec '09

Aug '09 July '09 June '09 May '09

Jan '09 Feb '09 Mar '09 Apr '092010 2008 2007 2006

2005 2004 2003 2002

Articles

GREEN MARKETING

Sustainable Green Marketing:The New Imperative

-- Bholanath Du

Assistant Placement Officer & Senior Lectu

CMR Institute of Technolo

Bangalo

The author can be reached at bhola - [email protected]; [email protected]

Resources are limited and human wants are unlimited. Hence, it is very important for the marketer to utilize

resources efficiently and, at the same time, achieve the organization's objective. Green Marketing is the b

suited solution to this issue. The consumers of today are more conscious about protecting the environment. T

are enlightened consumers and are known as `green consumers'. Green marketing talks about sustainable

socially responsible products and services. This article discusses the evolution and the importance of grmarketing. It also discusses various challenges contained in it.

In this era of globalization, corporate responsibility is no longer merely about local labor issues, pollution cont

or energy efficiency. Sustainable businesses are those that are helping find global solutions to our most press

environmental and social issues.

- Ed Bar


7/47

Director of Corporate Partnerships at Earthwa

Green products don't work well and consumers won't pay a premium for them - is an old saying. But most of

companies today believe that investing in environmentally preferable products and technologies can be a sou

of innovation and competitive advantage. The success of companies practicing `green marketing' has drawn

attention of corporates, policy-makers and, more importantly, consumers. Green marketing is the rec

buzzword ruling the corporate world. In today's context of global warming, climate change and environme

pollution, this concept has evolved as a savior for the mankind.

Green marketing is environment-friendly, sustainable and socially responsible marketing. According to Amer

Marketing Association (AMA), "Green or Environmental Marketing consists of all activities designed to gene

and facilitate any exchanges intended to satisfy human needs or wants, such that the satisfaction of these ne

and wants occurs, with minimal detrimental impact on the natural environment".

Many people have attempted to define the term "green marketing". It is sometimes used as a synonym

ènvironmental marketing' and ècological marketing. Jacquelyn A Ottman, author of "Green Market

Opportunity for Innovation", defines green marketing as environmental considerations integrated in all aspect

marketing. Michael J Polonsky, author of the books on environment and green marketing, defines the term"All activities designed to generate and facilitate any exchange intended to satisfy human needs or wants s

that satisfying of these needs and wants occur with minimal detrimental input on the national environment".

Broadly, green marketing involves developing good quality products which can meet consumer needs and wa

by focusing on the quality, performance, pricing and convenience in an environmental-friendly way. Practic

green marketing is not only good for mankind but also for the environment. It also give competitive advant

to the marketers.

Evolution of the Concept

Many people believe that green marketing has evolved from environmental marketing and ecological marke

and its scope is much wider when compared to the other two. It encompasses environment-friendly products

services and also guarentees value, pricing and customer satisfaction. The term `Green Marketing' was, in f

coined much earlier but gained popularity only during the late 1980s and early 1990s. The AMA, for the

time, organized a workshop on Ècological Marketing' in 1975. The results of the proceedings of the works

were documented in one of the first books on green marketing titled Ècological Marketing'. According to Pea

(2001). there are three phases in the evolution of green marketing:

i. Ecological Green Marketing: This is the phase when companies were concerned about the environme

problems and tried to provide appropriate solutions to the same.

ii. Environmental Green Marketing: In this phase, the focus was shifted to clean technology and this, in t

helped in designing innovative products and taking care of waste disposal and pollution.

iii. Sustainable Green Marketing: Green marketing is not for the short-term, but needs to be sustainabl

the long-term; and for this, it should be able to command adequate customer support. This concept began

gain importance during the late 1990s.

Jacquelyn A Ottman and others have described green marketing at three different levels:


8/47

i. Marketing: Development of new technology, new process and new product and communicating the same

the customer. Innovation is an integral part of it. New process and technology to develop environment-frien

products and services.

ii. Holistic Nature: All stakeholders need to be part of this initiative _ marketer, supplier, retailer, educa

community member, regulator, NGO _ indeed all of them.

iii. Environmental Issues: Need to be balanced with primary customer needs. There are many ways whe

along with making profits, marketers can take care of environmental issues.

Importance of Green Marketing

Green Marketing comprises a broad range of activities like product development and modification, packag

advertising, pricing, etc. It is, in fact, a very challenging task to deliver a product that meets customer ne

and demands in terms of quality, value, pricing and availability. The result of this is the outcome of `gr

consumers', especially in the US first and followed by many other countries. Green Marketing has gai

momentum in the context of global warming and climate change and this, in turn, has forced many companie

incorporate the principles of Green Marketing. Recently, Green Marketing has drawn the attention of national state governments and this has forced them to introduce environment-friendly policies.

As resources are limited and human needs and wants are unlimited, resources have to be utilized economic

and in an environment-friendly way. Apart from being socially responsible and environment-friendly, there

other reasons like corporate governance, government pressure, competitive pressure, etc., that lead a comp

to adopt Green Marketing strategies. Green Marketing is a remedy for mitigating climate change and glo

warming and it can also give a competitive edge over others. Today's enlightened consumer, the so-ca

`green consumer', a company practising Green Marketing.

Rules of Green Marketing

There are many ways as to how a company can incorporate the concept of Green Marketing in its marke

activities. The first and foremost is the customer satisfaction in an environment-friendly way. In develo

countries like the US, customer awareness of the environment is very high. That is the reason there are `gr

consumers', and this has become prevalent in many other countries. Companies that want to incorporate Gr

Marketing need to work on the following areas:

y Be aware of the environmental issues and the way it will impact people's lives. There is a need to cre

awareness among the customers to make Green Marketing work.

y Make the customers feel that they will make a difference by being environment-friendly. Once

customers understand and start appreciating and valuing the companies practicsing Green Marketin

lot will change for the better.

y Going green implies working towards the greater cause of environmental protection and safeguarding ecology and climate. Marketers have to believe that by practising Green Marketing, they will be helpthe environment and the mankind.

y Make best possible efforts to ensure that the green products provide the same benefits to customersthe non-green alternatives and are affordably priced.

A Few Cases


9/47

y Dell Computers: Recently, Dell has launched the plant a tree for me' program in partnership with Conservation Fund' and `Carbonfund.org'. It has been a very good initiative to offset carbon emissand individuals and corporations can easily participate in it.

y General Motors (GM): GM has launched a light-hearted advertisement on the TV that begins w`Dear Oil'. The purpose behind this advertisement is to make people understand its efforts to mbeyond oil as the source of energy and look to other options.

y CNG in Delhi: In 2002, the Supreme Court of India passed a verdict to completely adopt CompresNatural Gas (CNG) for all public transportation systems in the Indian capital to curb pollution. This swas appreciated by one and all as the level of pollution in Delhi was very high. However, initially thwere objections raised by the transporters; but in due course, it was successfully implemented (Exh1).

y McDonald's: The company has started using restaurant napkins and bags made of recycled paper.y Hewlett-Packard (HP): HP has promised to cut its global energy uses 20% by 2010. To accomp

this reduction, HP has announced plans to deliver energy-efficient products and services.

y Philips: Philips has launched the super long life' bulb which saves up 20% energy.y Badarpur Thermal Power Station, New Delhi: Trying to find out ways to utilize the coal-ash wh

pollutes air and water

y Xerox Corporation and Canon: It has introduced high quality recycled photocopier paper (Exhibit 2meet the demand for less environmentally harmful products.

y Walt Disney World (WDW): It has an extensive waste management program and infrastructure

place.

Challenges Associated with Green Marketing

There are a number of challenges and problems associated with the understanding and application of gr

marketing practices. Some of them are as follows:

y

Firms practicing Green Marketing must ensure that their activities are not misleading the customers are not violating any rules and regulations pertaining to environmental protection.

y Firms must do their best to clearly state the benefits of Green Marketing. If customers are explained

benefits of Green Marketing, then it is certain that they will appreciate the same.

y Lack of scientific knowledge on the part of firms sometimes creates unnecessary problems. McDona

replaced its clam shells with plastic-coated paper. This lead to a debate as to which is m

environmental-friendly.

y Sometimes, steep competition can force a company to adopt unfair practices to cut costs. Firms sho


10/47

be socially responsible and look for sustainable development.

y Practising green is costly. Green products require renewable and recyclable products that are m

expensive. Green Marketing can succeed in the long-run, only if the additional costs can be recovered

y Substantial investments in research and development and an innovative organizational culture ar

must for developing and marketing of green products. Innovation is, in fact, the first step in

successful development of a green product (Exhibit 3).

y Majority of the people are not aware of this concept in the developing and under-developed countries

a result, in such situations, one faces the additional challenge of creating awareness and willingness

spend on green products.

y Many people may not be prepared to pay higher prices for green products. Unless there is widespr

awareness about the long-term implications of continuing to use non-green products, it becomes diffi

for the companies to practice Green Marketing.

y Water treatment technology is very expensive. This takes the use of recycled water beyond the reac

most users, though there may be dire shortage of water.

The Winning Mantra

Companies need to believe first that Green Marketing `can work' and make diligent efforts to make necess

product improvements, which deliver performance, are marketable and profitable. Companies should not o

develop green products but must explain about the same more effectively to the consumers. They also nee

integrate Green Marketing strategy into all the 4 P's (Product, Price, Profit and People) of the marketing m

Consumers, suppliers of raw materials, distributors and retailers _ all need to be made aware of Green Marke

and its benefits. Green marketing has to be considered as a visionary goal to be achieved through continu

improvements and efforts. It must be included in the company's overall corporate strategy.


11/47

Green Myopia

The concept of `marketing myopia' was introduced by Theodore Levitt in 1960. He laid emphasis on `manag

products' rather than `meeting customer needs'. Sometimes, this can also happen for companies practi

`Green Marketing', if they focus on `greenness' over the broader expectations and needs of the consumers

other stakeholders including suppliers, distributors, regulators and various activists.

Conclusion

Green Marketing is still in its infancy. A lot of research has yet to be made to explore various opportunities

possibilities. Profit is important for the sustenance of any firm. Adoption of Green Marketing may not


12/47

profitable sometimes in the short-run, but definitely firms that are first movers, will have competitive edge o

the others in the long-run. Today's consumers are very much aware of environmental issues like global warm

climate change, etc., and are getting ready to pay the premium for environment-friendly products and servi

Companies too have a role to play in creating awareness regarding the necessity of using green products.

time has come for firms to explore every opportunity to enhance their products/services in terms of qua

performance, social responsibility and environment-friendliness. Social organizations and consumer forums

have to pressurize companies to adopt green practices in their operations.

The government has to strengthen policy measures to facilitate the move towards environment friendly produ

and practices. There is already a significant degree of development in this direction in the US and m

European countries. This movement has to spread geographically across the world, which would also necessi

customization to match with the requirements and affordability levels in different countries.

Reference # 10M-2009-01-05-01.

> Finance Management Marketing


July '08

Archives

2008

Dec'08 Nov'08 Oct'08 Sep'08

Aug'08 July'08 June'08 May'08

Apr'08 Mar'08 Feb'08 Jan'08

2010 2009 2007 2006

2005 2004 2003 2002

Articles

IUP

---------


13/47

ng World

ronicle

nagement

Banker

anizer

ofits

cutive

xpress

stermind

GREEN MARKETING

Green Marketing :A Perspective

Ecological imbalance is a major issue facing the world today. This is due to two

basic reasons: firstly, the depleting natural resources and, secondly, rapid increase

in the use of products that are environmentally harmful. Ecology is also getting

imbalanced because of the increasing generation of waste in one or the other

form. Use of herbal products, stationery items from recycled paper, etc., is one of

the steps companies have taken towards conserving the environment. Green

marketing is the process of marketing with the focus on a balanced ecology. This

article discusses some aspects of green marketing.

Green Marketing - The Concept

Maintaining ecological balance is a major issue confronting the corporate world

today. The damage done to the environment has already crossed threshold and

reached alarming limits. Non-replenishable natural resources are getting depletedat a rapid pace. Generation of waste, including non-biodegradable waste, is

increasing enormously. All these negative developments have forced mankind to

think more seriously about conserving the environment. Green marketing is one

such initiative towards environment protection.

Green marketing is a broad term covering all aspects of marketing decision-

making that keep the ecology and environment in focus. There are basically two

major issues in green marketing. The First one is to check the misuse of natural

resources and the second is to control wastage. The wastage can be in any form.

It can be the unused product itself or it can be the expired product. Wastage can

also be from primary, secondary and tertiary types of packaging. The material

used in packing can cause damage to the environment. Even today, plastic is

being used as a raw material in the manufacture of packaging materials and carry

bags, which proves harmful to animals which swallow such material accidentally.

Green marketing incorporates an array of activities, including product modification,

changes in production processes, changes in packaging materials, etc. It has led to

green products and green consumers. Green marketing tackles issues related to

environmentally-safe production, distribution, consumption, disposal, etc., of the

products and the packaging materials on the marketing front in order to make

marketing activities eco-friendly.

Conventional Marketing versus Green Marketing

Marketing is a process which begins with identifying the needs of the consumer

and further includes product development, delivering products to the consumer

and providing after-sales service. The conventional marketing process is not

specifically concerned or bothered about environmental safety. The contemporary

green marketing concept, on the other hand, analyzes ecological compatibility of

the product, its raw materials, packaging materials, etc. In green marketing, the

---------

---------

Subscribe tkeep up wi

---------

Click her

---------

ACo-Cre

Ef

An intervie Owen L

Owen LinFrancisco-been cove

industry mcontributepublicationabout Appthe best-seThe DefinitColorful CoStarch PreHe holds aadministraSchool of Mat http://w


14/47

environment is at the center point of decision-making. It emphasizes on

formulation of marketing strategies in conformation with environment protection.

Conventional marketing paid little attention to the pollution caused to the

environment from the unused or expired products, the raw material used in

manufacturing or from the packaging materials used. It had a myopic vision, while

green marketing has long-term orientation. Conventional marketing concentrated

on the convenience of human beings, while green marketing maintains the

environment at the center of marketing decisions. Green marketing owns

environmental responsibility and makes itself accountable for fulfilling such

responsibility.

Green marketing uses techniques focusing on management of raw materials as

well as waste materials. It adopts a proactive approach to waste management.

Conventional marketing has self-centered approach while green marketing has a

social cost- benefit approach, towards environmental conservation. Thus, the

prominent difference between conventional marketing and green marketing is that

conventional marketing does not bother about the environment, while greenmarketing focuses on environmental safety.

Consumers are becoming increasingly aware of the hazards of a polluted

environment. They have experienced the damage caused to animals and to soil

fertility by expired products and from non-biodegradable packaging material like

polythene bags. They are witnesses to the increasing of all types of waste. The

consumers today have started emphasizing on green products and green

packaging materials. All these factors have contributed towards the emergence of

green marketing, which is definitely a step ahead of conventional marketing.

Green Marketing - Some Key Notions

Green marketing is gaining importance day by day due to increasing awareness

about environmental conservation. Green marketing utilizes natural resources as

raw material. It adopts production procedures which result in the least amount of

waste products. It focuses on using such materials in packaging, which are

biodegradable (Exhibit 1) and do not cause harm to other living ones or the

environment. Many marketers are adopting green marketing as their Unique

be reached

What doeWhat doestand forSteves braperformanelegance. with creatieasy to uswith the Aera, and n

Many desgreatest your impras a markassessme

(iPod, iTumarketinthat for atop-ratedhad any bWithout a memorablenobody cawhich is tothe campaproduct is has had treyears and market beadvantageadvocate,

was once aoriginal Mathan anythwith over acapitalize oits personadrop to theFortunatelfrom its mwere perfeof young, dancing sillifestyle cacompletelyproduct bepractical smarket.

more...

Vi

,VVXHV

Mar


15/47

Selling Proposition (USP). They are becoming consumer- friendly and are gaining

recognition.

Product System Life Cycle (PSLC) Concept

Green marketing focuses on Product System Life Cycle (PSLC) to be eco-friendly

(Exhibit 2). PSLC relates to the life cycle of resources and distribution channels.

Resource life cycle starts with identification of resources to be used in the creation

of products.

The next stage will be to procure such resources in a cost-effective manner. There

may or may not be the need for processing of the procured resources. If there is a

need, the processing of resources is the next stage in PSLC. The product is

manufactured as a result of processing of resources. The waste from the

manufacturing process is disposed of in the environment. The manufactured

product is then distributed and eventually sold to customers.

At the last stage of PSLC, the unused or the expired product and the packaging is

disposed of by the consumer after the consumption of the product. It is obvious

that waste gets generated at several stages of the PSLC. The selection ofresources and the treatment of waste before releasing into the environment are

two important considerations in PSLC, with greater focus on waste management.

The strategic issues involved in PSLC are reduction of wastes by delaying the

expiration of resources, effective waste management at each stage of the PSLC

and increasing accountability of resource management. The PSLC concept needs to

be understood by the marketers as well as consumers in order to further develop


16/47

green marketing.

Integrated Waste Management

Green marketing further incorporates integrated waste management (IWM)

system. IWM involves strategies to prevent environmental pollution and resource

conservation. It also controls the ultimate release of residues into the eco-system.

The type of product to be manufactured not only helps in resource identification

but also helps in knowing the levels and types of waste that will be generated

during the production of the final product and the types of packaging materials

that can be used. IWM focuses on identification of waste which will be generated

at each stage of production and whether it can be of any further use. It also

involves identification of the final disposal process. The analysis regarding making

the product green with least waste and that too biodegradable waste is the key to

the success of the IWM system.

Organizations can pursue green marketing activities by changing the raw material

mix, by modifying the product, by improving the production processes, by using

biodegradable packaging materials and by checking the release of waste products

into the environment during production or consumption of the product or at the

time of disposal of surplus or expired product.

Some Examples of Green Marketing

Green marketing activities include the use of appropriate raw materials in the

manufacture of products. Companies can change the raw materials from chemicals

to natural materials. Taking the example of bath soaps, washing soaps, tooth

paste, edible salt, etc., we observe that the manufacturers claim that their

products contain natural materials like neem, tulsi, clove oil, sea salt, water from

Ganges, milk and milk cream, natural flowers for fragrances, etc., instead of

harmful chemicals.


17/47

There are eco-friendly hotels such as The Orchid chain of hotels (Exhibit 3), which

use environment-friendly materials in their construction and operation, and

conserve the use of electricity and other resources through various adaptations.

There is emergence of shopping malls with nature as their basic ambience. Some

segments of the cosmetic industry avoid chemicals and use herbs and other

natural ingredients. For example, Vicco uses turmeric in its face cream. The plastic

bottles used for packaging of soft drinks are reused for packaging of phenyl, acid

or other products. The incandescent electric bulbs are being replaced by compact

fluorescent lamps (CFLs), which are superior in performance, produce less heat,

consume less electricity and have longer life.

The transport industry is looking forward to the use of alternative fuels. Maruti

Udyog Limited has come up with models using gas as fuel. YO bikes (Exhibit 4) run

on batteries. Commercial vehicles run on CNG instead of conventional fuel. The

Delhi Transport Corporation runs its fleet of buses on CNG only. Researches are on

for developing solar-powered automobiles. There is emphasis on using articles

made from hand-made paper. There are numerous examples where the

manufacturers have either changed the raw materials or even modified the

product design for conservation of the environment. With more concern beingshown by the corporate world towards green marketing, the day is not far when

green marketing becomes a common practice among manufacturers and

marketers throughout the globe.

Conclusion

Green marketing refers to marketing where ecological issues are the focal point of

marketing decision-making. It ranges from change in raw materials to change in

packaging materials. It includes change in product design or even substitution of

one product by another. It also encompasses disposal of waste generated during

production and distribution, the disposal of surplus or expired products and even

the disposal of packaging after the use of the product. There is ample scope for

green marketing at both the manufacturers' end and marketers' end.

Green marketing is catching on in a big way. Marketers as well as consumers are

slowly but strongly recognizing it. Awareness is being created about the use of

such materials, which are helpful in conserving the environment and are eco-

friendly. Though the green products can be a bit costlier in comparison to their

non-green counterparts, they are beneficial from the viewpoint of environment


18/47

conservation, which will definitely prove advantageous in the long run. Green

marketing is gaining increasing prominence across the world and in India too.

- Vikas Shrotriya

Reader

Department of Management Studies,

Swami Keshvanand Institute of Technology,

Management & Gramothan, Jaipur.

The author can be reached at [email protected]

Reference # 10M-2008-07-03-01.

Finance Management Marketing


January' 07

Archives

2007

Dec '07 Nov '07 Oct '07 Sep '07


Apr '07 Mar '07 Feb '07 Jan '07

2010 2009 2008 2006

2005 2004 2003 2002

Articles

Ecopreneurship

Green Marketing

- Sanjit Kumar Roy

Research Scholar,

IIMT, Hyderabad.

IUP

---------

---------


19/47

ng World

ronicle

nagementBanker

anizer

ofits

cutive

xpress

stermind

The author can be reached at [email protected]

In the modern times, most companies have begun to feel the need for green

marketingmarketing of products that are presumed to be environmentally safe. It

requires a slight manipulation in the existing four Psproduct, price, place, and

promotionof marketing in addition to a careful understanding of the public policies.

This article outlines the increasing scope of green marketing and defines the

concept as such.

There is a growing interest among the consumers all over the world regarding

saving the environment and this is influencing the corporate world. Even though

environmental issues affect almost all the activities of human life, very less

academic attention has been paid to address them. Businesses are now waking up

to modify their behavior in order to address some of the environmental concerns

faced by the consumers today. Marketing has given a great deal of attention to the

environmental issues over the last decade or so. Some of the terms like "Green

Marketing,", "Ecological Marketing," and "Environmental Marketing" have cropped

up in the marketing literature in recent times. These three terms are usedsynonymously in the marketing literature.

Definition

The American Marketing Association defines Green Marketing as "the marketing of

products that are presumed to be environmentally safe for the consumers." It

includes a wide range of activities, viz., product modification, changes in the

production processes, modification of the advertising messages, changes in the

packaging of products, etc.

Queensland Government EPA defines Green Marketing" as one that involves

developing and promoting products and services, which the customer desires, for

quality, performance, affordability, and convenience, without having a detrimental

effect on the environment.

The concept of green marketing took birth in the early 1980s and became fully

developed by the 1990s. Prior to 1980s, it was referred to as "Ecological

Marketing". Henion (1972) defined Ecological Marketing as the marketing effort of

an organization expended directly or indirectly on selling or marketing goods,

services or ideas, whose positive ecological attributes or content constitute a

minor or major appeal for the buyer, user, or adopter, for the purposes of making,

or which tends to result in, a short-term or long-term profit for a profit-making

entity.

Peattie (2001) states that the term "Green Marketing" has been used to describe

marketing activities which attempt to reduce the negative social and

environmental impacts of existing products and production systems, and which

promote less damaging products and services.

---------

Subscribe tkeep up wit

---------

Click her

---------

ACo-Cre

Ef

An intervie Owen LOwen LinFrancisco-been coveindustry mcontributepublicationabout Appthe best-seThe DefinitColorful CoStarch PreHe holds aadministraSchool of M

at http://wbe reached


20/47

Evolution of Green Marketing

Over a period of time our understanding of the relationship between business,

society and the physical environment has improved. The understanding of the

principles and practices of green marketing has also evolved over the last decade

or so. According to Peattie (2001), the evolution of green marketing can be broken

down into three distinct phases. They have been described below:

First Phase

The first phase was termed as "Ecological" Green Marketing. This concept was

developed in the 1970s. Henion and Kinnear (1976) conceptualized green

marketing to be concerned with all marketing activities --

(i) that have served to help cause environmental problems, and

(ii) that may serve to provide a remedy for environmental problems.

It dealt with the positive and negative aspects of marketing activities, which were

related to pollution control and resource diminution. The characteristic features of

this phase of green marketing are the following:

1. It focused only on the environmental problems like air pollution, soil pollution,

water pollution, oil spillovers, etc.

2. It targeted the companies or units that were causing the environmental

problems.

Second Phase

The second phase of green marketing was "Environmental" Green Marketing. It

emerged during the late 1980s. The focus of this phase was on the potential

dangers to the environment and the human life residing in it. A series of

events/disasters, viz., the Bhopal gas tragedy (1984), the Chernobyl (1986), and

the oil spill at Exxon-Valdez (1989), led this phase to come into prominence. The

most significant thinking in the green thought was sustainability. The characteristic

features of this phase were the following:

1. Focus on clean technology that involved the designing of innovative new

products, which took care of the pollution and waste issues.

2. Green consumers were concerned about the impact of their consumption and

purchasing habits on the environment.

3. It considered the issues relating to physical environment, society, and economy.

4. It held a global perspective by recognizing unsustainable production and

What doeWhat doestand for?Steves braperformanelegance. with creatieasy to us

with the Aera, and n

Many desgreatest myour impras a markassessme(iPod, iTumarketingthat for atop-ratedhad any bWithout a memorablenobody ca

which is tothe campaproduct is has had treyears and market beadvantageadvocate, was once aoriginal Mathan anythwith over acapitalize oits personadrop to theFortunatelfrom its m

were perfeof young, hdancing sillifestyle cacompletelyproduct bepractical smarket.

more...

Vie

,VVXHV

Mar


21/47

consumption system as the causes for most of the environmental problems.

Third Phase

The third phase of green marketing was "Sustainable" green marketing. It came

into prominence in the late 1990s and early 2000. It emphasized on progress

towards greater sustainability. Fuller (1999) defines sustainable green marketing

as "the process of planning, implementing and controlling the development,

pricing, promotion, and distribution of products in a manner that satisfies the

following three criteria:

(a) Meeting of customer needs, (b) achieving organizational goals, and (c) the

process-compatibility with eco-systems."

Its focus is to achieve the "triple bottom line" through creating, producing, and

delivering sustainable products or services. Products/services need to have highe

net sustainable value while satisfying the customers and other stakeholders. To

make production process of products and consumption more sustainable, anumber of elements of market and marketing have to be modified. These are the

following (Cooper and Evans, 2000):

1. Product costs

2. Emphasizing cost instead of price

3. A better understanding of environment marketing

4. Industry structures

5. Focus from products to services

6. An emphasis on distribution

7. Moving beyond the niche.

Four Ps of Green Marketing

The Ps of green marketing is same as that of the traditional marketing. The only

difference is that the green marketers need to use the conventional four

Psproduct, price, place, and promotion of marketing in innovative ways.

Product

According to Kellerman (1978), "The ecological objectives in planning products are

to reduce resource consumption and pollution and to increase conservation of

scarce resources." Leigh, Murphy and Enis (1989) used a seven-layered

hierarchical product differentiation scale to analyze the societal benefit of three

selected product classes. The seven criteria used, ranked in decreasing order


22/47

were: ecological impact, societal impact, product performance, product extension,

product information, product design, and product embellishment. The rationale for

the hierarchical nature of this scale is drawn from the long-range perspective of

the total welfare to society. Companies, which are trying to exploit the green

market opportunity, have to do the following two things:

1. Identify customers' environmental needs and hence develop those products

which satisfy these needs;

2. Develop products that are environmentally responsible and have less impact on

the environment than that of competitors' products.

The desirable products are the ones having one of the following characteristics:

y Products made from recycled goods, e.g., recycled paper.

y Products that can be recycled

y Products which save water, energy, or oil and which have less harm on the

environmenty Products with environment friendly packaging, e.g., McDonald's packaging

with degradable paper

y Products are organic in nature.

Price

Henion (1976) suggested, if the price of each product is based on its true full cost,

which includes its social and environmental costs, and then there would be no

need for ecological marketing. In the real world, assumptions of traditional price

theory are often violated. Henion also suggests that ecological marketing can

convert non-environmentally concerned consumers into environmentallyconcerned consumers by way of effective education and merchandising.

Price is a critical component of the green marketing mix. Consumers are often

ready to pay a premium price if they perceive the value in a product. This

perceived value could come from taste, function, design, quality, and performance.

Early research findings have suggested that ecologically concerned consumers are

not always willing to pay a higher price for environmentally compassionate

products (Herberger & Buchanan, 1971). On the contrary, environmentally

accountable products, are often less costly when product life cycle costs are

considered. Some examples of such products include fuel-efficient vehicles,

energy-efficient lamps, and non-toxic products.

Promotion

Kellerman (1978) described promotion as a vehicle for expanding the demand for

ecologically benign products, while encouraging conservation of scarce resources

as well as a vehicle, by which consumers and producers can be taught to modify

their attitudes toward the environment. The promotional role of ecological

marketing is not always easy. Kinnear and Taylor (1973b) found that neutral


23/47

sources, such as television documentaries, rank much higher than market-

dominated sources such as advertisements. The neutral sources are seen as not

having any hidden motives for providing environmental information. Some of the

green marketers are able to reinforce environmental sincerity by using sustainable

marketing and communication tools. For example, companies in the financial

service providers are using e-mails to send statements or to correspond with the

customers; this clearly shows that e-marketing is rapidly gaining ground in place

of the traditional marketing methods. While promoting the green credentials and

achievements, it is necessary to build the trust of the customers and stakeholders.

Place

Kellerman (1978) not only discussed the development of reverse channel systems

for recycling, but also suggested that marketers encourage one-stop shopping as

well as developing distribution systems that involve more movement o

information and less movement of goods and people. Michman (1985) stated that

the role of distribution management in light of our environmental problems

involves emphasis on mass-transportation, containerization, unit trains and othergoods-handling technologies. Availability of the product at the right place at the

right time is of great importance for the marketer because it has an impact on the

customers. Marketers, who are looking for introducing their green products in the

market, must position them well in the marketplace to make green products

available to a wider section of the market. The location must differentiate itself

from the competitors' by way of in-store promotions and display of environmental

benefits in addition to other benefits of the products.

The exhibit will enable us to understand who the green consumers and what their

characteristics are.

Reasons for the Growth of Green Marketing

The natural resources are limited. Therefore, marketers must develop newer ways

of satisfying the never-ending wants and needs of customers. The prime duty of

green marketers is to look into how these limited resources will be utilized to

satisfy the consumers' need as well as the industries' need, and at the same time

fulfilling the objectives of the organization. Green marketing offers a company to

achieve both the bottom-line growth and the top-line growth opportunities. Some

of the reasons for companies going green are as follows:

1. Environmental "green marketing" is seen by organizations as an opportunity to

fulfill their objectives (Keller, 1987).

2. Competitive pressure is another important factor, which forces some companies

to go green.

3. Modifications in the production process or other business processes could be

costly at the beginning, but it pays in the long run. For example, installing a solar

heater is expensive; however, the maintenance is much cheaper than the


24/47

conventional heaters. Companies that are innovative, and consider environment

safety in their production processes and products and or services will have the

advantage of accessing new markets. It also gives them the competitive

advantage over those companies which do not care for the environment.

Exhibit: The Green ConsumersAttributes of

Environmentally Conscious

Consumers

Implications for Green Marketers

Will most likely be well-

educated, young adult

women who nave more

money to spend.

Target products to women who

generally buy on behalf of men

and families.

Use the influence of children to

encourage parents to try green

products. They are the green

consumers of the future and are

generally knowledgeable aboutenvironmental issues thanks to

school and community education

programs.

Offer samples and incentives to

try products.

Will expect green products

to function as effectively as

non-green products and

wont pay much extra or

sacrifice quality for greener

products.

Effectively communicate

assurances of qualityfor

example quality of performance,

look, feel, fit, comfort,

durability, etc.

Will not buy green products

on the basis of

environmental benefits

alone. Product choice is still

based on whether it meets

their basic want or need.

Environmental features are

added selling points.

Link 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

attributes that willpersonally benefit them.

Emphasize personal benefits by

using terms such as safe, non-

toxic, cost-effective ratherthan more generalized green

messages such as

biodegradable or ozone

friendly.

Will tolerate only minimal

inconvenience in using

green products and dont

Make using the product simple

for example, minimize or

eliminate refilling bottles.


25/47

want to have to go out of

their way to buy them.

Select mainstream distributors

where possible.

Offer one-stop shopping and

eye-appealing displays.

Will be analytical, eager to

learn, and can be cynicalabout corporate claims for

green product unless they

have independent

verification.

Reinforce product benefits with

evidence of corporateenvironmental 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 labelling 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

commitment to improvement.

Seek feedback and promote

your efforts to respond to

customer concerns.

Source: www.epa.qld.gov.au/sustainable_industries

4. Companies are also going for green marketing under governmental pressure.

The government is concerned about the environmental threat arising from harmful

products. It is also taking measures to protect consumers from the hazards of the

consumption of harmful goods/products, the false and misleading claims of the

marketers, etc.

Some of the companies have started to realize that they have a social

responsibility towards the society, and they have begun various environmental-

friendly activities.

The introduction of CNG in New Delhi by the Supreme Court of India in 2002 in all

forms of public transport to reduce air pollution is a classic case of green

marketing.

The introduction of CFLlamps by Phillips is another example of green marketing.

This has led to the reduction in energy consumption.

Conclusion


26/47

Green marketing considers both greening products and greening the firms. The

green marketers should not neglect the economic aspects of green marketing.

Managers need to understand the implications of green marketing. They should be

clear on what is to be greenedthe system, the processes, or the products.

Information disclosure is one of the important components of green marketing.

The information disclosed has to be genuine and substantiated. Green marketing is

still in its infancy, and a lot of research needs to be done on green marketing to

fully explore its potential.

Reference # 10M-2007-01-02-01.

Green Marketing - What About the Consumer's

Perspective?

How does concern for the environment manifest itself in

consumer attitude and consumer behavior? While many

express their support for "good causes", when it comes

to their making a purchase decision, what actually

happens? Consumers may express their preference to

buy environmentally safe products, or claim to base

their purchase decisions on environmental

considerations. This has been manifested in acceptance

of eco-safe packaging, without extra cost, but are

brands which claim to offer eco-preserving core

products given strong preference? Evidence seems to

suggest green marketing programs have met with

varying levels of success and failure.

Some of the identified negative factors have been:

1. Lack of credibility - the perception that the marketer

is only offering lip service to entice the consumer.

2. Overexposure - everyone is jumping on the

bandwagon, so where is the difference? This also

creates skepticism even towards the genuine cases.

3. Consumer behaviour - the complex underlying

realities which do not always match publicly expressed

perceptions.

In real life, few are willing to trade price or

performance - i.e. pay more, or compromise on

functional benefit, and sometimes even aesthetics, for

environment friendly appeal.

Compiled by Ravi Warriar, Consulting Editor, Marketing

Mastermind.


27/47


28/47

Corporate Initiatives: Over the past decade, businesses are under increasing

pressure to fulfill their social responsibilities and shun reckless pursuit of profits.

Corporate citizenship and Corporate Social Responsibility (CSR) are two such

manifestations. Media scrutiny on corporates has increased, to assess their fulfillment

of social obligations. They also quickly realized that a significant section of the society

held very strong green concerns and presented an opportunity for green products.

Tweaking the production process a bit and altering product features, some firms began

marketing greener products.

The Indian Initiatives

Over the past few years, some sectors in India have seen green initiatives by firms.

Partly, to differentiate their offerings in a competitive milieu and partly to take

advantage of the price premium possible, many companies have started offering

branded products in several categories. Some of these are detailed below:

Renewable Energy: Energy was one of the first sectors to be identified by the Indian

Government to reduce dependence on fossil fuels. To sustain the economic growthforeseen, it was felt two decades ago that alternative energy sources need to be

encouraged. Setting up Indian Renewable Energy Development Agency Limited

(IREDA) in 1987 was one such attempt. IREDA facilitates with monetary and technical

support to industries for pursuing projects related to solar, bio, hydro and wind

energy. These are high investment projects for corporates.

At the customer end, only solar energy has found applications for retailing green

products. Tata BP Solar, a leading private enterprise to venture in this area, markets

many solar products targeted at households under different brands. Vajra, for

example, is its domestic water heating system. Similarly, Jugnu and TATADEEP are its

brands for home lighting kits and lanterns respectively.

Hospitality: ECOTEL is a global certification for eco-friendly hotels. Presently, there

are 36 hotels worldwide, which are ECOTEL certified. Of these, five are in IndiaOrchid

Hotel (a 5-star hotel in Mumbai), Uppal's Orchid (a 5-star hotel in Delhi), Lotus Suites

(a 4-star hotel in Mumbai), Hotel Rodas (a 3-star hotel in Mumbai) and Rain Tree (a 5-

star hotel in Chennai).

Given the difficult yardsticks that need to be met to get the certification, the hotels

tout their status and position themselves on the green platform. The efforts taken and

the mileage drawn are best exemplified by the activities highlighted in the exhibit "Eco

Practices at Orchid Hotel, Mumbai".

Eco Practices at Orchid Hotel, Mumbai

Hanger Made from Saw Dust

Kitchen garbage on the

site

Uses nine vermiculture bins

Personal care products Herbal products,


29/47

served to guests manufactured

under an ayurvedic license

Laundry Uses reusable cloth bags

Shopping bag

messagesCloth bag, with environment

StationeryEco-friendly (at least 50%

recycled)

Recycling bins Separate bins in each room

FootwearHandcrafted, from natural

reed

Waste water Recycled

Source: www.orchidhotel.com

Fuel: Petrol and Diesel, the dominant fuels used for mass and personal transport, are

major culprits in polluting the environment and the emissions released due to the

burning of these fuels into the atmosphere are harmful. With the liberalization of thissector, private petro retailers such as Reliance and Essar forayed and the public sector

giants BPCL, HPCL and Indian Oil became more market-oriented. Sprucing up the

ambience at retail outlets, providing value-added services, expanding the presence

and marketing of branded fuels at a price premium followed. To further differentiate

itself from others and provide a value-added service to its customers, BPCL offers

greener fuels. Different forms of these, with different value propositions, are marketed

under the brands of "Speed", "Speed 93", "Speed 97" and "Hi-Speed Diesel". These

are claimed to have additives that result in fewer polluting emissions from the vehicles

using such fuels. In the case of "Hi-Speed Diesel", particulate matter and black smoke

reductions are claimed to be 16% and 22% respectively.

Automotive: In the Indian context, use of the green plank was initiated a couple of

decades back when Hero Honda's four-stroke motorcycles were promoted as

environment-friendly. The then competitors to Hero Honda were marketing two-stroke

motorcycles, which were more polluting. Since then, almost all players in the

competitive scooter and motorcycle markets have shifted to the four-stroke

technology.

Last year saw some action in electric vehicles for the Indian market. Bajaj Auto

launched ECOrick, an electric three-wheeler. Although priced twice that of a petrol

vehicle, its running cost was claimed to be one-fourth that of the petrol version.

Hyderabad-based Cynosure Enterprises Ltd. launched Yash E-Bike, an electric two-

wheeler that runs at a speed of 25-30 km per hour and covers 60 km when fullycharged. In the current year, British player Ultra Motors has announced plans to

launch battery-powered scooters and motorcycles in India. As for mass transportation

vehicles, Supreme Court's ruling makes it mandatory for state-run road transport

buses in Delhi to shift to Compressed Natural Gas (CNG) made a huge impact. Even in

Mumbai, the state-run BEST is plying some of its buses on CNG. Needless to say, the

movement would easily spread to other states and ensure that manufacturers churn

out more such greener alternatives.


30/47

Personal Care Products: Across a wide range of product categoriessoap, cream,

talcum powder, oil, shampoothere is an increasing shift towards products that are

without chemicals. "Herbal", "Ayurvedic" and "Natural" are terms that we frequently

come across in these categories. Some firms specialize in such green products, while

others are also jumping onto the bandwagon. The herbal healthcare and personal care

market is estimated to be Rs.2,500-3,000 cr, according to Ravi Prasad, President and

CEO, Himalaya Drug Company.

Conclusion

Due to multiple reasonsregulatory pressures, technological developments, consumer

movement, emergence of niche segmentsIndian marketers are going green in new

product development, product modification and packaging. Apart from the above-

mentioned sectors, there are significant developments even in other areas. Eveready

Industries has launched rechargeable (upto thousand times) batteries. ITC actively

promotes its notebooks as being eco-friendly, as these are made from Elemental

Chlorine Free (ECF) paper. Michelin recently launched a new tyre, "Energy XM 1", that

is supposed to be developed using a silica-based compound "Green `X'". This is asubstitute for carbon black, which is a fossil fuel derivative.

The government has announced that blending petrol with ethanol would be made

mandatory by the end of the year. Ethanol reduces emission of carbon monoxide, a

polluting hydrocarbon. The auto industry is also taking keen interest in using biofuel.

DaimlerChrysler successfully completed a 5,000 km trial run of jatropha biodiesel in

one of its cars. Hopefully, the `greener movement' would engulf more and more

product categories and result in products that satisfy customer needs and do not harm

the environment.

Welcome to PS

Advanced Sear

IUP Publications Online

me About IUP Magazines Journals Books Amicus Archives)DVW)LQG

A Guided Tour |Recommend | Subscriber Services | Feedback | Subscribe Online

Magazines >> Finance Management Marketing


IUP


31/47

Login Details

Sign Out

ccount

k Outr Status

o Favorites

avorites

ge Password

ng World

ronicle

nagement

Banker

anizer

ofits

cutive

xpress

stermind

December '09

Archives

2009

Sep '09 Oct '09 Nov '09 Dec '09


Jan '09

Feb '09 Mar '09

Apr '09

2010 2008 2007 2006

2005 2004 2003 2002

Article

GREEN MARKETING

Green Marketing:Better Late Than Never

-- Ambika La

Faculty Member, INC Ghaziabad.

The author can be reached at

[email protected]

Green marketing is the need of the hour when we are seeing environmental

degradation every single day. Although eco-friendly products are slightly

expensive compared to their traditional counterparts, they offer many advantages.

While the market for green products is definitely on the increase, the "green

marketing" campaign is yet to achieve a critical mass. There is an urgent need for

both marketers and consumers to appreciate the importance of green products.

We are not here to sell the consumer on saving the planet. This is about `saving

me' we are the next endangered species on the list.

-- Jacquelyn Ottman

Author of "Green Marketing: Opportunity for Innovation"

Green marketing can be defined as the marketing of products that are regarded

to be safe for the environment. The quality of our environment is deteriorating

with each passing day. It has become a challenge for all human beings to

safeguard Mother Earth and green marketing is a small endeavor in this direction.

Green marketing can serve as an effective tool for encouraging the sale of a

product by using its ecological credentials.

It all began with the perception that many consumers will choose products that do

not damage the environment over less environment-friendly products, even if theycost more. Green marketing incorporates a wide range of activities to meet

ecological standards. These include: product modification, changes in the

production process, packaging changes as well as alterations in advertising, so as

to have minimum detrimental effect on the environment. In the long run, green

marketing benefits one and allthe environment, businesses and human beings.

Green marketing is also known as environmental marketing or ecological

---------

---------

---------

Subscribe tkeep up wit

---------

Click her

---------

ACo-Cre

Ef


32/47

marketing. It includes marketing of products that are phosphate-free,

replenishable, eco-friendly, ozone-friendly and recyclable. Consumers spend

billions of dollars on buying goods and services every year, many of which harm

the environment by way of how they are harvested, made or used. The drive is on

to motivate consumers to adopt environmentally safe alternatives, while

encouraging manufacturers to develop more eco-friendly products by offering

incentives to them.

It would be incorrect to state that the concept of green marketing originated quite

recently. It has been in existence since the first Earth Day in 1970. But nothing

much happened until the 1980s. This was the time when people visibly started

taking interest in saving the environment, eventually leading to increased interest

in green products and services. There was reciprocation from the manufacturers to

the rising demand for environment-friendly, energy efficient, biodegradable and

compostable products from the customers.

In 1992, the Federal Trade Commission (FTC) came forward with guidelines for the

application of environmental terms like, `biodegradable', `compostable',`recyclable', `reusable', etc. According to FTC and the US Environmental

Protection Agency, "environmentally preferable products" may be defined as those

goods and services that have a smaller adverse impact on the environment and

the human health, when weighed against other goods and services that are used

for the same purpose. It is all about how the raw materials are obtained, given

shape to, enclosed, distributed and recycled, and how the service and the products

are made available to the consumers. If any company wants to promote itself or

any of its products/services as being environment friendly, it must then abide by

the rules laid down by FTC.

Green marketing has evolved through three phases. The first phase was termed as

`ecological' green marketing. During this period, all marketing activities revolvedaround ecological problems, providing timely and effective remedies for the same.

The second phase was `environmental' green marketing during which, the focus

was on the development of technology which is environmentally safe. The thrust

was on designing new products which help in the reduction of waste effluents and

pollution. The third phase commenced in the late 1990s and this phase was

actually the `sustainable' green marketing phase. This was at its peak when the

former President of the United States, Bill Clinton, had directed all federal offices

to buy and use environmentally safe products.

Green marketing campaign can be started by ensuring credibility of the green

claims. This can be achieved by having the product certified that it was produced

in an environmentally sound manner. Once certified, the eco-labels enable the

consumers to make educated and responsible choices.

Call to Change Peoples' Mindset

It is a general tendency among customers to go in for a cheaper alternative,

rather than purchase a more costly green and eco-friendly product. It has really

An intervie Owen LOwen LinFrancisco-been coveindustry mcontribute

publicationabout Appthe best-seThe DefinitColorful CoStarch PreHe holds aadministraSchool of Mat http://wbe reached

What doeWhat doestand for?Steves braperforman

elegance. with creatieasy to uswith the Aera, and n

Many des

greatest myour impras a markassessme(iPod, iTumarketingthat for atop-ratedhad any bWithout a

memorablenobody cawhich is tothe campaproduct is has had treyears and market beadvantageadvocate, was once aoriginal Mathan anythwith over acapitalize oits personadrop to theFortunatelfrom its mwere perfeof young, hdancing sillifestyle cacompletelyproduct bepractical smarket.


33/47

been an uphill task for the `green activists' to reach to the masses and change

their way of thinking. The proponents of green marketing emphasize that the

`greenness' of a product should be considered as a necessity by customers while

taking the buying decision, rather than a luxury.

It is also possible that marketers may put on a show of supporting the

environment without actually doing so. This is known as `greenwashing'. It is the

presenting of a product or service as green, when it is actually not.

However, green marketing can be a very powerful marketing tool, when it is used

correctly and with fair intentions. We need to follow three principal dictums for

effective green marketing; which are:

y Be genuine

y Educate your customers, and

y Give them the opportunity to participate.

Accomplishments in Green Marketing

There has been a significant change in the mindset of customers, and

manufacturers are leaving no stone unturned to respond to the shoppers'

demands. The hotel industry is showing maximum inclination towards green

marketing by projecting their eco-testimonials more aggressively. The concept of

`green inn' is catching on. For example, hotels have been suggesting to their

guests to reuse towels for the period of their stay, so as to save water and energy

spent on laundering.

A lodge at Sun Ranch in Cameron, Missouri (in the US) dedicatedly plants 10 trees

in the Amazon region for every guest's stay in its place. Another effort is being

made at The Hilton in Naples, Florida (USA). The hotel is growing a Confederate

Jasmine vine garden on top of its roof, which keeps the building effectively cool

and the best feature is that the garden is watered with condensation waste from

the air conditioners. According to The American Hotel and Lodging Association,

when it put up `Green Best Practices' resource guide on its official website, it soon

became one of the most visited sites in recent times.

Clearly, the environment is becoming a priority for hoteliers and that too for good

reasons. The general public too has started taking a firm stand on its responsibility

towards the environment and according to the Travel Industry Association-USA,

more American adults are keen to select an environmentally responsible hotel.

"Putting the `eco' in front of your name gets attention", according to Ted Martens,director at Sustainable Travel International, a nonprofit organization in the US that

educates travelers and travel providers about ecology conservation. As an

offshoot, the concept of `Green IT' has evolved as well, which is being taken very

seriously by many companies, particularly in Britain. Here, almost half of the large

IT firms have adopted the green IT strategy.

more...

Vie

,VVXHV

Mar


34/47

Measures Taken in India

y Introduction of Compressed Natural Gas (CNG) and Unleaded

Petrol in Delhi: This improved the quality of petrol and has helped bring

down pollution levels.

y Solar Equipment: Solar equipments are the need of the hour, as they

assist in enhancing the quality of our environment by not generating noise

or air pollution. They also conserve energy.

y Energy Conservation: Compact Fluorescent Lamps (CFLs) provide an

energy saving alternative to incandescent lamps, and they are also very

effective in bringing down electricity expenses. Today, we find widespread

use of CFLs. Similarly, introduction of hybrid and electric vehicles is a

useful measure for reducing air pollution.

y Eco-friendly Furniture: It is a good substitute for classical wooden

furniture which we use in our households. Eco-friendly furniture draws

more on waste products and other by-products, which do not pose any

threat to our environment and depends less on wood.

y Recycling: Recycled plastics, recycled rubber, textiles, recyclablesynthetic and waste products go into the making of many products such as

eco shoes. Similarly, eco-friendly paints are being manufactured that have

non-hazardous and natural raw materials as their ingredients. Such paints

are the need of the hour to make our environment safer. Handmade pape

is much in demand as it is made of non-wood resources. Handmade pape

has dual benefits, as it help conserve trees and also reduces pollution.

It is often said that the green niche can be more appealing and lucrative.

Customers who are environmentally aware keep on learning more about green

products and do not mind paying more for such products. However, Edwin R

Stafford, Associate Professor of Marketing at Utah State University's College of

Business, states that even after so much endeavors and publicity, only a small

fraction of consumers base their buying decisions on a product's environmental

quality. People, in general, although they are aware, do not take environmental

factors into consideration while making a purchase. However, they definitely

should, during these times of deteriorating environment.

Nonetheless, there is huge untapped potential for the marketing of green products

which provide an immediate advantage to the consumers. Several examples can

be quoted even from India, where customers are using them because of their

practical benefits. These include front-loading energy-efficient washing machines

and other appliances, compact fluorescent lamps, solar water heaters, etc. But we

cannot ignore the fact that the success of many green products is not because oftheir `greenness', but due to the utility and the practical value they provide to the

customers. This is where education will have to play an important role in the

marketing efforts. People need to be made aware about the benefits of using

green products. A macro-level thinking needs to be inculcated amongst the

consumers.


35/47

Ottman's Rules of Green Marketing

According to Jacquelyn Ottman, there are five rules for effective green marketing.

These are:

y Companies and customers need to reciprocate in creating awareness about

and demand for green products.It is important for marketers to know the

customer and his requirements.

y Consumers have to feel that using an eco-friendly product can make a

difference to their lives.Otherwise, why should a consumer bother to buy

such a product, which may be costlier?

y Consumers need to believe the claims made by the company. Open and

transparent communication is certainly the best policy to adopt, to gain

support from consumers. Transparency is the best policy.

y The product has to work.The buyers need to be reassured regarding the

quality of the product. Otherwise, they would think that nothing much is

received in return from these green products, in spite of spending more on

buying them.y Consumers do not think much about paying more for a better product if

they are convinced of its worth. They pay more money for energy labeled

and star graded' products which consume less electricity and produce less

greenhouse gas emissions.

Conclusion

With the progressive degradation of the environment with each passing day, green

marketing has become a necessity, to sustain the quality of our environment. It is

high time we understood the importance of a healthy environment. If the general

public is still not able to foresee the detrimental effects of environmental damage,then probably our future generations will never be able to know the meaning of a

`healthy' environment. It is expected that if a company is already competitive in

terms of quality, price and performance, adding `green claims' and eco labels to

its marketing strategy would augment its brand image and safeguard its market

share amongst those who fail to do so.

Reference # 10M-2009-12-04-01.


36/47

their higher cost. Nielsen Co data show sales growth of organic food at 5.6% year over year in

December from a year ago, though that's down from the double-digit pace of years past, and

its SPINS tracking service showed sales at natural-food stores up 10.9% to $4.2 billion last

year. K-C, which this month is launching Huggies Pure & Natural, positioned as having more

natural ingredients and post-consumer content than other products, found one sure sign of

consumer interest during pre-launch buzz building.

Jump to indexing (document details)

Full Text

(1823 words)CopyrightCrainCommunications, Incorporated Apr20, 2009

[Headnote]Sustainable-product sales rise as eco-friendliness goes mainstream and value players join thetrend

GREEN MARKETING IS turning OUt to be surprisingly recession-proof.

Datamonitor shows 458 launches so far in 2009 of package-goods products that claim to be

sustainable, environmentally friendly or "ecofriendly." If that pace holds all year, it will triple the

number of green launches last year, which in turn was more than double the number in 2007.

Seventh Generat

Green Marketing 30

Documents

Transcript of Green Marketing 30