International Journal of Research and Development - A Management Review (IJRDMR)
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Green Marketing
Prabhavathy.K, Sharmila
II BBA CA, Department of Business Administration with CA
Sri Krishna Arts and Science College
Abstract- In today's business world environmental issues
plays an important role in marketing. All most all the
governments around the world have concerned about
green marketing activities that they have attempted to
regulate them. There has been little attempt to
academically examine environmental or green marketing.
It introduces the terms and concepts of green marketing,
briefly discuss why going green is important and also
examine some of the reason that organizations are
adopting a green marketing philosophy. It also focuses
some of the problems with green marketing. It also
discusses the keys to green marketing and how firma are
using green marketing.
Key words: Green Marketing, Environmental Marketing
and Ecological Marketing.
GREEN MARKETING;
Green marketing involves developing and promoting
products and services that satisfy customers want and
need for Quality, Performance, Affordable Pricing and
Convenience without having a detrimental input on the
environment.
Meaning
Green marketing refers to the process of selling products
and/or services based on their environmental benefits.
Such a product or service may be environmentally
friendly in it or produced and packaged in an
environmentally friendly way.
The obvious assumption of green marketing is that
potential consumers will view a product or service's
"greenness" as a benefit and base their buying decision
accordingly. The not so obvious assumption of green
marketing is that consumers will be willing to pay more
for green products than they would for a less-green
comparable alternative product an assumption that, in
my opinion, has not been proven conclusively.
While green marketing is growing greatly as increasing
numbers of consumers are willing to back their
environmental consciousnesses with their dollars, it can
be dangerous. The public tends to be skeptical of green
claims to begin with and companies can seriously
damage their brands and their sales if a green claim is
discovered to be false or contradicted by a company's
other products or practices. Presenting a product or
service as green when it's not is called green washing.
Definition
According to the American Marketing Association,
green marketing is the marketing of products that are
presumed to be environmentally safe. Thus green
marketing incorporates a broad range of activities,
including product modification, changes to the
production process, packaging changes, as well as
modifying advertising. Yet defining green marketing is
not a simple task where several meanings intersect and
contradict each other; an example of this will be the
existence of varying social, environmental and retail
definitions attached to this term. Other similar terms
used are Environmental Marketing and Ecological
Marketing.
The legal implications of marketing claims call for
caution. Misleading or overstated claims can lead to
regulatory or civil challenges. In the USA, the Federal
Trade Commission provides some guidance on
environmental marketing claims.
Three keys to successful green marketing;
Show potential customers that you follow green business
practices and you could reap more green on your bottom
line. Green Marketing isn't just a catchphrase; it's a
marketing strategy that can help you get more customers
and make more money. But only if we do it right.
For green marketing to be effective, we have to do three
things; be genuine, educate our customers, and give
them the opportunity to participate
1) Being genuine;
means that we are actually doing what you claim to be
doing in your green marketing campaign and that the
rest of your business policies are consistent with
whatever we are doing that's environmentally friendly.
Both these conditions have to be met for our business to
establish the kind of environmental credentials that will
allow a green marketing campaign to succeed.
2) Educating your customers;
Isn’t just a matter of letting people know you're doing
whatever you're doing to protect the environment, but
also a matter of letting them know why it matters.
Otherwise, for a significant portion of your target
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International Journal of Research and Development - A Management Review (IJRDMR)
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market, it's a case of "So what?" and your green
marketing campaign goes nowhere.
3) Giving your customers an opportunity;
To participate means personalizing the benefits of your
environmentally friendly actions, normally through
letting the customer take part in positive environmental
action.
Evolution of Green Marketing;
The green marketing has evolved over a period of time.
According to Pattie (2001), the evolution of green
marketing has three phases. First phase was termed as
"Ecological" green marketing, and during this period all
marketing activities were concerned to help environment
problems and provide remedies for environmental
problems. Second phase was "Environmental" green
marketing and the focus shifted on clean technology that
involved designing of innovative new products, which
take care of pollution and waste issues. Third phase was
"Sustainable" green marketing. It came into prominence
in the late 1990s and early 2000.
Why Green Marketing;
As resources are limited and human wants are unlimited,
it is important for the marketers to utilize the resources
efficiently without waste as well as to achieve the
organization's objective. So green marketing is
inevitable.
There is growing interest among the consumers all over
the world regarding protection of environment.
Worldwide evidence indicates people are concerned
about the environment and are changing their behavior.
As a result of this, green marketing has emerged which
speaks for growing market for sustainable and socially
responsible products and services.
Benefits of Green Marketing;
Companies that develop new and improved products and
services with environment inputs in mind give
themselves access to new markets, increase their profit
sustainability, and enjoy a competitive advantage over
the companies which are not concerned for the
environment.
Environmentally responsible or "green" marketing refers
to the satisfaction of consumer needs, wants, and desires
in conjunction with the preservation and conservation of
the natural environment. Considered an oxymoron by
many environmentalists (because it still promotes
consumption, albeit so called responsible consumption),
green marketing manipulates the four elements of the
marketing mix (product, price, promotion, and
distribution) to sell products and services offering
superior environmental benefits in the form of reduced
waste, increased energy efficiency, and decreased
release of toxic emissions. These benefits are frequently
estimated using life-cycle analysis (LCA) studies, which
measure the environmental impact of products over their
entire life cycle resource extraction, refining,
manufacturing, transportation, use, and disposal.
Green consumerism is based on public awareness of
pressing environmental issues. Green marketers hope to
capitalize on this by developing strategies that allow
consumers to integrate green products into their
lifestyles. Many such efforts by green marketers have
met with considerable success. The "organic" industry,
for example, which specializes in the sale of organically,
based foods, health and nutritional products, and other
green lifestyle items, saw its sales boom in the 1990s,
from $1 billion in 1991 to $3.3 billion in 1996.
Beginnings of environmentalism;
Environmental concern in the United States has ebbed
and flowed with the times. The first wave of
environmentalism began in the late 19th century and
was hallmarked by the preservationist-conservationist
debates between naturalist John Muir (1838-1914) and
Gifford Pinchot (1865-1946), the first chief of the U.S.
Forest Service.
All of these definitions enlarge the traditional objective
of business to maximize profits by including some
notion of maintaining the integrity of the natural
environment. Operationally, green marketing seeks to
satisfy the needs and wants of individual consumers
while simultaneously seeking to improve environmental
quality of life for society as a whole. Environmental
concerns thus act as constraints on business operations,
echoing a passage from the Great Law of the Iroquois
Confederacy: "In our every deliberation, we must
consider the impact of our decisions on the next seven
generations."
The greening of business;
A number of factors have caused business firms to
behave more responsibly towards the natural
environment. Perhaps foremost among these is the
possibility of capitalizing on opportunities from the sale
of environmental services and “earth ECO-LABELING.
ECO-LABELING;
Environmental certification or labeling programs
attempt to increase consumer awareness and knowledge
of environmental issues. Marketers use eco-labels to
convey information about a product's environmental
benefits and to differentiate among competing products.
Eco-labels may identify a product's contents, e.g. the
triangular arrangement of arrows on recycled paper and
plastic products, or highlight other benefits.
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For instance, a product may have particularly low
pollutant or noise emissions, entail less waste in its
production, or are designed for easier recycling than its
competitors. The Blue Angel has proven to be a useful
selling tool in Germany's ecologically conscious society.
A few other countries have established eco-labels,
though none has yet had as great an impact as the Blue
Angel.
Eco-labeling programs increase awareness of
environmental issues, set high standards for firms to
work towards, and help reduce consumer uncertainty
regarding a product's environmental benefits.
ECO-SPONSORING;
Another avenue for companies to promote their
ecological concern is to affiliate themselves with groups
or projects engaged in environmental improvements. In
its simplest form, firms contribute funds directly to an
environmental organization to further the organization's
objectives. Another approach is to "adopt" a particular
environmental cause, a community recycling program,
demonstrating the company's willingness to put its
money and its reputation on the line. Sponsoring
educational programs, wildlife refuges, and clean-up
efforts communicates a firm's commitment to finding
environmental
solutions.
Partnerships
with
environmental organizations can open lines of
communication and provide new perspectives on
"business as usual.
The EPA, for sponsors the Energy Star and Green Lights
Buildings programs, in which partners in industry agree
to upgrade their facilities over time to reflect
environmental concerns (usually energy efficiency and
waste minimization). The EPA, in turn, agrees to
provide technical support and labeling, which
contributes to a green marketing program.
In considering an eco-sponsorship, firms must address
the problems of legitimacy and believability. Not all
environmental sponsorships are legitimate or appropriate
for a particular company's needs. Chemical firms, for
instance, may find it difficult to support Greenpeace's
anti-chlorine campaign. Believability is even more
critical. Business firms consistently rate lowest in
surveys of credibility with consumers. Eco sponsoring
should not be used as an alibi for a firm's day-to-day
actions.
Importance;

The main idea behind green marketing has been
re-marketing of products that are already manufactured,
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which adhere to certain environmental guidelines. There
has been a huge hue and cry from various environmental
organizations about the damage caused to the planet by
large scale production industries, and the inappropriate
disposal methods they use. Having looked into these
accusations, the government has imposed different
agreements and guidelines on production units. Some
business organizations have used it to their advantage,
by openly campaigning for the cause, hence gaining the
support of customers. However, some critics claim that
this is just an advertising stunt to promote business, and
that no real steps have been taken towards the cause.

There is growing interest among the consumers
all over the world regarding protection of environment.
Worldwide evidence indicates people are concerned
about the environment and are changing their behavior.
As a result of this, green marketing has emerged which
speaks for growing market for sustainable and socially
responsible products and services.

STRATEGY AND TACTICS
1.
Green marketing as a sub discipline is only a few
decades old, and much remains to be learned about
consumer preferences, product substitutions, and
environmental tradeoffs. Nonetheless, a few
principles useful in developing a green marketing
strategy have emerged.
2.
Perhaps most obviously, the more recognizable the
"green credentials," the greater the chances of a
successful marketing campaign. A green product
that
properly
addresses
a
well-known
environmental issue of prominent concern, or that
displays a well-established and respected eco-seal,
will be more likely to win favor among green
consumers.
3.
Governments are increasingly adopting the
"polluter
pays"
principle,
establishing
environmental liability for manufacturers and
businesses engaged in polluting activities. Neither
environmental legislation nor waste cleanup costs
are likely to decrease in the coming decades,
suggesting that a proactive strategy aimed at
reducing waste and pollution at the source will
yield both financial and environmental benefits.
Indeed, pollution prevention is recommended by
the U.S. Environmental Protection Agency as the
most appropriate course of action for dealing with
environmental problems.
4.
The so-called principle of cooperation advises
marketers to interact more closely with
communities and governments in addressing
environmental problems and communicating their
respective expectations and concerns. Failure to
work together on a voluntary basis may lead to
additional regulations and requirements.
5.
Numerous product success stories are associated
with the implementation of these strategies. Lowphosphate detergents, CFC-free refrigerators, highefficiency light bulbs, low-emissions gasoline,
lighter-weight packaging, powder paint sprays, and
high-quality clothing made from recycled soda
bottles are among many examples which might be
mentioned. Partnerships between environmental
groups and business organizations, such as the
Environmental Defense Fund's work with the
McDonald's restaurant chain, have increased
communication and fostered better understanding
of each group's objectives.
Advantages;
Advantages with the proliferation of environmental
stories in the press and broadcast media, individuals
(whether as a consumer or acting for a company), are
more aware of their personal responsibility to try to
make a difference. Appealing to this need can increase
response rates to marketing executions and build brand
loyalty.

Promote for the better to customer
As marketing actors should give the best to
customers, by making green marketing strategy.
For the better to consumers could mean provide
packaging that can support surrounding
environment or it could be if we have a food
product we can pay more attention to consumer
health impacts. With more attention to that, we
have given something better than other products
and it can make we more stand out in front of the
customer. As said by Carrie Walsh, Our customers
are consumers who care about their personal health
and planetary health”

More attractive products with green
Doing a green marketing makes you different from the
others, and this is will make its own interest to your
product. However, implementing green marketing is
certainly not easy, for the first you must know surefire
steps that lead you to green marketing.
Adoption of Green Marketing;
There are basically five reasons for which a marketer
should go for the adoption of green marketing. They are

Opportunities or competitive advantage

Corporate social responsibilities (CSR)

Government pressure

Competitive pressure
Cost or profit issues
Green Marketing Mix: Every company has its own
favorite marketing mix. Some have 4P's and some have
7P's of marketing mix. The 4 P's of green marketing are
that of a conventional marketing but the challenge
before marketers is to use 4 P's in an innovative manner.
Product: The ecological objectives in planning products
are to reduce resource consumption and pollution and to
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increase conservation of scarce resources (Keller man,
1978).
Price: Price is a critical and important factor of green
marketing mix. Most consumers will only be prepared to
pay additional value if there is a perception of extra
product value. This value may be improved
performance, function, design, visual appeal, or taste.
Green marketing should take all these facts into
consideration while charging a premium price.
Promotion: There are three types of green advertising:

Ads that address a relationship between a
product/service and the biophysical environment

Those that promote a green
highlighting a product or service

Ads that present a corporate
environmental responsibility
lifestyle
by
image
of
Place: The choice of where and when to make a product
available will have significant impact on the customers.
Very few customers will go out of their way to buy
green products.
After-the-fact expenditures on pollution control and
remediation are included, albeit as income. Greener
pricing decisions are based on the premise that goods
and services associated with greater environmental
damage should cost more.
Research conducted by the Roper Organization in 1990
identified five different groups of environmental
consumers with varying degrees of commitment to
purchasing environmental products. The premium on a
product's price tag people were willing to pay for
perceived environmental benefits varied widely from
about 3 percent for the least-committed group to
approximately 20 percent for individuals espousing the
highest level of commitment. Across the board,
consumers indicated a willingness to pay an average
premium of approximately 6.6 percent for products with
positive environmental attributes. Attitudes do not
always translate into action, of course, but
environmental attributes do seem to be "tiebreakers" for
customers faced with a choice between two products
offering similar benefits and prices.
Green promotion;

Marketing Audit (including internal and external
situation analysis)

Develop a marketing plan outlining strategies with
regard to 4 P's
Perhaps no area of green marketing has received as
much attention as promotion. In fact, green advertising
claims grew so rapidly during the late 1980s that the
Federal Trade Commission (FTC) issued guidelines to
help reduce consumer confusion and prevent the false or
misleading use of terms such as "recyclable,"
"degradable," and "environmentally friendly" in
environmental advertising.

Implement marketing strategies
Greener distribution;

Plan results evaluation
Logistics and transportation costs are coming under
greater scrutiny due to rising fuel prices, congested
highways, and global-warming concerns. Package
redesign for lighter weight and/or greater recyclability
reduces waste while simultaneously reducing costs. In
some countries, marketers must also consider two-way
flows, as governments pass legislation requiring
manufacturers to take back products at the end of their
useful life ("reverse logistics"). Germany is again the
world leader in this arena; it has already passed
ordinances targeting the electronics, automobile, and
packaging industries.
Strategies:
The marketing strategies for green marketing include:
Culture: Traditional marketing attempts to identify and
meet latent, current, or future consumer needs by
manipulating the so-called four Ps: price, promotion,
product, and place (distribution channels). These
objectives have historically been identified with efforts
to increase consumption of material goods and services,
practices not particularly compatible with the notion of a
sustainable society. Environmentalists have criticized
various aspects of the consumption culture, particularly
its wasteful and pollutive production and disposal
processes. Managers should keep these critiques in mind
when creating green marketing strategies. Green
marketing can accommodate these concerns in a way
that remains attractive to consumers by addressing the
environmental and consumer advantages inherent in the
product.
Greener pricing;
A central concern of many environmentalists is that
product prices do not reflect total environmental costs.
Waste disposal costs, for instance, are frequently
incurred on a fixed-fee basis, regardless of how much
waste is actually generated. Similarly, the national
accounting systems of most countries do not incorporate
the costs of environmental degradation or depletion.
The FTC offers four
environmental claims:
general
guidelines
for
1.
Qualifications and disclosures should be
sufficiently clear and prominent to prevent
deception.
2.
Environmental claims should make clear whether
they apply to the product, the package, or a
component of either. Claims need to be qualified
with regard to minor, incidental components of the
product or package.
3.
Environmental claims should not overstate the
environmental attribute or benefit. Marketers
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should avoid implying a significant environmental
benefit where the benefit is, in fact, negligible.
4.
A claim comparing the environmental attributes of
one product with those of another product should
make the basis for the comparison sufficiently clear
and should be substantiated.
WHY ARE FIRMS USING GREEN MARKETING;
When looking through the literature there are several
suggested reasons for firms increased use of Green
Marketing. Five possible reasons cited are:
1.
Organizations perceive environmental marketing to
be an opportunity that can be used to achieve its
objectives.
2.
Organizations believe they have a moral obligation
to be more socially responsible.
3.
Governmental bodies are forcing firms to become
more responsible.
4.
Competitors’ environmental activities pressure
firms to change their environmental marketing
activities.
5.
Cost factors associated with waste disposal, or
reductions in material usage forces firms to modify
their behavior.
CNG in Delhi
b.
Coca-Cola pumped syrup directly from tank
instead of plastic which saved 68 million pound
year.
c.
Badarpur Thermal Power station of NTPC in Delhi
is devising ways to utilize coal-ash that has been a
major source of air and water pollution.
d.
Bahraini refinery of IOC is taken steps for
restricting air and water pollutants.
CONCLUSION
Green marketing is based on the premise that businesses
have a responsibility to satisfy human needs and desires
while preserving the integrity of the natural
environment. That this latter concern has been ignored
throughout most of recorded human history does not
mean it will be unimportant in the future. Indeed, there
are significant indications that environmental issues will
grow in importance over the coming years and will
require imaginative and innovative redesign and
reengineering of existing marketing efforts on the part of
many businesses.
REFERENCES:
[1]
J.A Ottman,. et al, "Avoiding Green
Marketing Myopia",Environment, Vol-48, June2006
[2]
http://www.grailresearch.com/pdf/Conten
PodsPdf/TheGreenRevolution.pdf,(Accessed in
10 December 2010)
New Delhi, capital of India, was being polluted at a very
fast pace until Supreme Court of ndia forced a change to
alternative fuels. In 2002, a directive was issued to
completely adopt CNG in all public transport systems to
curb pollution.
a.
McDonald's restaurant's napkins, bags are made of
recycled paper.
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