ENVIRONMENTAL MARKETING GREEN MARKETING SYPNOSIS MARKETING - the activity - set of institutions - processes for creating - communicating - delivering - exchanging offering that have value for customers This definition recognizes that marketing is an organizational function and set of activities undertaken to bring about exchanges of goods, services, or ideas between people. Green or Environmental Marketing consists of all activities designed to generate and fascinate any exchanges intended to satisfy human needs and wants, such that the satisfaction of these needs and wants occur, with minimal detrimental impact on the natural environment. WHAT IS GREEN ENVIRONMENTAL MARKETING? 1. As the study of all efforts to consume, produce, distribute, promote, package, and reclaim products in a manner that is sensitive or responsive to ecological concerns. 2. Marketing of products or services based on their environmental benefits - incorporates a broad range of activities - product modification - changes to the production process - packaging changes - modifying advertising 3. Using claims about a products environmental “friendliness” in order to promote the product WHY IS GREEN MARKETING IMPORTANT? 1. Limited resources to satisfy worlds unlimited wants 2. Looks at how marketing activities utilize these limited resources while satisfying consumer wants, both of individual. GREEN MARKETING MANAGEMENT As the process of planning and executing the marketing mix to facilitate consumption, production, distribution, promotion, packaging, and product reclamation in a manner that is sensitive or responsive to ecological concerns. WHY STUDY GREEN MARKETING? - The obvious benefactor of green marketing is the environment - Green Marketing can have an influence on climate change in several substantial ways DEVELOPING ECONOMIES The term developing economies refers to nations that have a relatively low gross domestic product (GDP) per capital. The low income, underdeveloped assets, and economic vulnerability endemic to these economic results in high dependance on the agricultural sector. CONSUMER BENEFITS Consumers benefit in several important ways through green marketing STRATEGIC BENEFITS Managers of corporate strategy realize multiple benefits from a green approach in marketing PRODUCT BENEFITS Components introduced into production outputs or services designed to benefit the consumer, whereas process benefits refer to tools, devise, and knowledge PRODUCTION PROCESS BENEFITS Organizational efforts to produce the highest quality products at the lowest possible cost SUPPLY CHAIN BENEFITS Green strategies that seek to eliminate waste in the supply chain result in firms analyzing truck loading and route planning in the delivery process. GROUPS THAT NEEDS TO UNDERSTAND GREEN MARKETING Consumers Consumers that understand green marketing Government - Federal state, and local government benefits in a number of ways due to green marketing - Just as consumers sometimes can lower expenditure costs and limit influences on the environment, government similarly benefit from green procurement programs. Companies with established environment reputation Companies highly dependent on scarce human capital Services refers to intangible activities that organizations provide to consumers (Meralco, Maynilad) Companies with high brand exposure As brands increase in appeal, they simultaneously increase the amount of scrutiny they incur Companies with low market power Companies that rely on other firms for substantial amounts of output must attend to the given marketing constraints leveled by the supplier Companies operating in highly regulated industries Government implements regulations emissions and help develop local renewable energy projects. IMPLEMENTATION - Wood floors and cash register wraps made from reclaimed lumber - Wall fixtures made from recycled fiber - Wall points and floor finishes with very low or no volatile organic compound content - Energy-efficient light fixtures - Glass, an abundantly available material. Companies dependent on natural resources Industries that are highly reliant on natural resources recognize the absolute limits in the availability of natural resources. These industries include oil, fish, and forestry. EVALUATION AND CONTROL - Metric tons of carbon emissions - Renewable energy as percentage of energy usage - Metric tons of emissions for footwear factories STRATEGIC GREEN PLANNING OUTLINE THE INTERACTION BETWEEN ENERGY AND ENVIRONMENT GREEN MARKETING PLANNING The process of creating and maintaining a fit between the environment and objectives and resources of the firm Example: Timberland Strategic Marketing Planning throughout all functional areas of the firm such as financial, planning, production, and research and development. MISSION STATEMENT Describes a firms fundamental, unique purpose, indicating what organization intends to accomplish, the marketers in which it operates and the philosophical premises that guides its action. ORGANIZATIONAL OBJECTIVES S - Specific M - Measurable A - Attainable R - Realistic T – Time bound STRATEGIES -Verify greenhouse gases inventory with a third party vendor - Reduce energy demand through energy efficiency improvements - Purchase whatever clean, renewable energy we can from electric utilities - Generate our own renewable energy on site where we can’t purchase clean energy from the electric grid - Purchase renewable energy credits to offset *DELIVERING VALUE TO ALL STAKEHOLDERS STAKEHOLDERS Refers to the individuals, organizations, and groups that have an interest in the action of an organization and have the ability to influence it a. Government b. Consumers c. Suppliers d. Media e. Employees f. Stockholders/Owners g. Non-government organization h. Competition i. General Public j. Legal System k. Financial Institutions l. Scientific Community MARKETING ACTION Any behavior associated with the procurement, purchasing, sales, consumption, and past consumption of product offerings. FACTORS SURROUNDING MARKETING ACTION ENVIRONMENT AND CONSUMPTION Each year nearly 80 million people are added to the worlds’ population, putting ever more pressure on the Earths’ natural systems. Yet much of the increase is in the developing world, so the impact is not as great as if it had occurred in the developed world. CLIMATE CHANGE Refers to a change in climate attributed directly or indirectly to human activity that alters the composition of the global atmosphere and that is in addition to natural climate variability over comparable periods of time. CLIMATE CHANGE HAS SEVERAL CRITICAL INFLUENCES ON THE ENVIRONMENT THAT INCLUDE THE FOLLOWING: - Higher temperatures and increased risk - Decline in the quantity and quality of fresh water - Increased health risk - Rising sea levels - Threats to biodiversity - Affects the most vulnerable - Displaced people and environmental refugees CLIMATE CHANGE ALSO HAS SEVERAL DIRECT INFLUENCES ON BUSINESS THAT INCLUDE THE FOLLOWING: - Agriculture - Tourism - Insurance - Transportation and related costs - New product/solution development - Carbon dioxide (CO2) accounts for more than 80% of the greenhouse emission worldwide - Methane (CH4) is the second largest contributor to greenhouse gas emissions. - Nitrous oxide (N20) is the third largest contributor to greenhouse gas emissions. Although emissions are substantially lower than those of carbon dioxide, nitrous oxide is 310 times more powerful than CO2 in its ability to trap heat in the atmosphere. - Fluorinated gases (F-gases) is a collective term that describes hydrofluorocarbons (HFCs), perfluorocarbons (PFCs). In contrast to the previous three gases, which occur naturally in the atmosphere, F-gases are produced almost exclusively via industrial activity. HUMAN ACTIVITY AND THE ATMOSPHERE - Ozone is a form of oxygen naturally occurring in the atmosphere. In contrast to the typical oxygen molecule that has two oxygen atoms, the ozone molecule contains three atoms and is labeled 03. - Air pollution is a global health concern with marked influence on humans and the environment. Regulatory agents use six factors known as criteria pollutants to establish air quality levels. These factors include sulfur dioxide, nitrogen dioxide, carbon monoxide, ozone oxygen, lead, and particular matter (PM). HUMAN ACTIVITY AND WATER Access to clean drinking water - Water is essential for life, yet the influence of consumption on water use is not well understood. Ninety-seven percent of the worlds water supply is saline, leaving 3% freshwater. - Only 3% of the water in the world is fresh water. Several critical consequences of inadequate and unsanity water include the following: - Falling water tables - Floods and droughts - Disease - Farmers losing to cities - Political tension Oceans and Fisheries Oceans - Consumption has a marked influence on oceans and fisheries. - Mounting evidence indicates that the arctic is warming twice as fast as the rest of the planet is, with the summer sea ice shrinking at 9.1% a decade from 1979 to 2006.51. At this late, the sea could be ice free as early as 2030. Rivers Over the past half century, the demand for water has tripled, and the demand for hydroelectric power has grown even faster. 54 consequently, the worldwide number of dams more than 15 meters has high increased to 45,000 from 5,000. Those dams deprive rivers of some of their flow, and the associated evaporation is 10% of their capacities. Lakes On every continent, lakes are shrinking and, in some cases, disappearing as a result of consumption. The dissolution of lakes is due to excessive diversion of water from rivers.
