A Study On Impact Of Green Marketing
Special Reference to Coimbatore City
A Study On Impact Of Green Marketing
INTRODUCTION
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.
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/or packaged in an environmentally friendly way.
Mr. J. Polonsky, Green Marketing can be defined as, “All activities designed to
generate and facilitate any exchange intended to satisfy human needs or wants such
that satisfying of these needs and wants occur with minimal detrimental input on the
national environment.”
Green Marketing involves developing and promoting products and services that
satisfy customer’s want and need for Quality, Performance, Affordable Pricing and
Convenience without having a detrimental input on the environment.
STATEMENT OF THE PROBLEM
The limited natural resources of the earth have to be used judiciously to satisfy the human
needs causing minimal environmental damage. Otherwise, mankind will face consequences
of environmental degradation. Mass production is inevitable to satisfy Earth‟s enormous
expanding population. Conservation efforts to remedy the situation will not succeed unless
these efforts include the participation of all concerned - the general public and the
government, individuals and groups, consumers and producers, young and old. Businesses
will incur additional costs in pursuing eco-friendly green processes that will however be
economical in time. Green marketing efforts are therefore appropriate for businesses in
developing countries like India
HISTORY OF GREEN MARKETING
Although some considerations were given to green marketing in the 1970s, it was actually in
the late 1980s that the idea of green marketing came out. All began in Europe in the early
1980s when some manufactured goods were discovered to be harmful to the natural
environment. Since that, green marketing has gone through three phases.
The late 1980s marked the first phase of green marketing when the concept of “green
marketing” was first discussed. The first phase was termed “Ecological” green marketing.
Throughout that stage, all marketing activities were attempting to provide solutions to
environmental problems. Marketers began to indulge in different forms of green marketing to
satisfy the needs and want of the consumers. It was thought that people would buy green
products and this would, in turn, increase the organization’s goodwill. These would help to
capture a greater share of the market. Nevertheless, nothing happened as expected. The
reason put forward for this repercussion was greenwashing. Businesses were only showing
that they were green but the truth is that they were doing nothing. Firms were just adding up
environmental claims to their existing products in order to increase sales.
Green marketing entered the second phase when marketers witnessed the backlash. The
Second phase was termed “Environmental” green marketing. During that phase, the focal
point shifted to clean technology, which was about designing new products which would not
harm the natural environment.
At the start of the mid-1990s, people began to be more aware of the protection and
preservation of the natural environment. People were becoming more alert about
environmental problems. This marked the third phase. The latter was termed “Sustainable”
green marketing. As customers were buying products and services that were less detrimental
to the natural environment, organizations were forced to change their selling behaviors.
The Importance of Green Marketing
1. Green marketing helps raise awareness about environmental issues and encourages
consumers to make more sustainable choices.
2. By promoting eco-friendly products and practices, companies can differentiate
themselves from their competitors and appeal to consumers who are increasingly
seeking out environmentally responsible products and services.
3. It can also help companies reduce their environmental impact by promoting products
and practices with a lower carbon footprint or recycled materials.
4. Companies that are seen as environmentally responsible can benefit from increased
customer loyalty and a positive brand reputation.
5. By embracing sustainable practices and promoting them through marketing
campaigns, companies can help to drive positive change and contribute to a more
sustainable future.
REVIEW OF LITERATURE
Green marketing, also known as environmental marketing or sustainability
marketing, involves promoting environmentally friendly products or services to
consumers. The focus is on developing and promoting products or services that have
minimal impact on the environment, are energyefficient or renewable, and promote
sustainability. The impact of green marketing has been studied by scholars and
researchers around the world. Here is a review of some of the literature on the
subject:
1. Alp et al. (2008) found that the knowledge of environment depends on their gender
because girl’s attitude was found statistically significant towards the environment
safety. Those students who have comparatively more knowledge about the
environment they show willingness to make some sacrifices about care of
environment.
2. Kim & Chung (2011) found that Past experiences with organic personal care
products also have an impact on purchase intention of such kind of products.
3. Gupta & Ogden (2009) stated that purchasing of green products depends on certain
individual characteristics as like reference groups, trust in others, and success of
green products and cost of cooperation to the individual. Green product success
depends on consumer tendency and understanding of green marketers for individual
factors to encourage the cooperation.
4. Park & Ha (2012) have found difference in proenvironmental behaviour of green
product purchaser and green product non-purchaser, and different psychological
factors regarding the recycling. Purchasers have the different levels of attitudes,
behavioural intention towards recycling & personal norms.
5. Rowlands et al. (2002) emphasised on three things namely cost, public perception
of environmental impact and environmental certification which should be considered
by developers of green power product. A significant difference was found in this
study regarding the willingness to pay a large premium for green power.
6. Chan (2004) revealed that China is facing problem of protecting the environment
for developing its economy. Chinese government actively involved in many
development and economic projects due to which they have faced the degradation of
ecological conditions anddepilation natural resources.
7. Eraj & Martizaz (2006) defined that those individuals who have most value about
ecological matters, they have a higher environmental knowledge. Those consumers
who were aware of environmental problem tried to do something about to solve
these problems.
8. Cateora Graham, in International Marketing, has drawn a parallel line between
green marketing and product development. The author has cited a variety of
examples where the importance of green marketing has been laid focus on. Green
marketing is a term used to identify concern with the environmental consequences of
a variety of marketing activities. It very evident from the author’s research and
examples the packaging and solid waste rules are burdensome but there are
successful cases of not only meeting local standards but also being able to transfer
this approach to other markets.
9. Philip Kotler and Kevin Lane Keller in Marketing Management has initiated the
topic by discussing about the relevance of green marketing in the past few decades
and has also discussed the explosion of environmentally friendly products. However,
according to the author from the branding perspective green marketing programs
have not been very successful. Marketers tried and failed with green sales pitches
over the last decade because of certain obstacles which the movement encountered.
The consumer behaviour is such that most consumers appear unwillingly to give up
the benefits of other alternatives to choose green products.
10. Debraj Dutta and MahuaDutta, of Marketing Management, have given an
explanation of what is green marketing. According to the authors green marketing
incorporates a broad range of activities including the modification of product,
production process and packaging. The authors have also discussed a few literature
sources that have focused on green marketing and its relevance in today’s era. It was
evident that the possible reasons because of which organizations engage in green
marketing.
11. K.K.Shrivastava & Sujata Khandai, the author of Consumer Behaviour in
Indian
Context, has discussed green marketing legislation in association with the
multinational corporations. These face a growing variety of legislation designed to
address environmental issues. Global concern for the environment extends beyond
industrial pollution, hazardous waste disposal and rampant deforestation to include
issues that focus directly on consumer products.
12. Kenneth E. Clow & Donald Baack the authors of Integrated Advertising,
Promotion and Marketing Communication. According to the authors the
marketers need to be aware of the threats and opportunities associate with four trends
in the natural environment namely shortage of raw materials, increased cost of
energy, increased pollution levels and the changing roles of government. New
regulations hit certain industries very hard and also that consumers often appear
conflicted about the natural environment.
13. Jacquelyn A. Ottman the author of Green Marketing: Opportunity for
Innovation, has explained green marketing from an organizational standpoint,
environmental considerations should be integrated into all aspects of marketing new
product development and communications and all points in between. According to
the author environment should be balanced with primary customer needs. The so-
called "green consumer" movements in the U.S. and other countries have struggled
to reach critical mass and to remain in the forefront of shoppers' minds. The lack of
consensus by consumers, marketers, activists, regulators, and influential people has
slowed the growth of green products.
14. 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. It could be concluded that 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. As we know that the emerging greenhouse gas reduction market can
potentially catalyze projects with important local environmental, economic, and
quality-of-life benefits.The Kyoto Protocol’s Clean Development Mechanism
(CDM), for example, enables trading between industrial and developing nations,
providing a framework that can result in capital flows to environmentally beneficial
development activities.
15. Prof. Sanjit Kumar Dash author of Green Marketing: Opportunities &
Challenges has mentioned that all activities designed to generate and facilitate any
exchange intended to satisfy human needs or wants such that satisfying of these
needs and wants occur with minimal detrimental input on the national environment.
The evolution of green marketing involves (three phases) from this article. 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.
16. In the Strategic Marketing and Green Marketing, the Green Imperative is
impossible to ignore, and companies are scrambling to understand how to develop
business models that are more sustainable. After an objective analysis of all product,
process, and policy issues associated with your company as well as performing an
assessment of your current marketing strategy, we can develop a comprehensive
sustainability and corporate responsibility strategy to increase ROI. The organization
will then become more efficient through environmental and social responsibility,
achieve superior competitive advantage and brand differentiation, as well as enhance
your brand image in the marketplace.
17. In accordance with the Strategic Marketing - Brand Development and Green
marketing the brand image is derived from marketing strategy. We can develop the
brand identity and mold the company's image within the framework of the strategic
marketing plan. This strategy and design teams develop the marketing
communications materials around maintaining a positive, distinctive, and consistent
brand image in the marketplace.
18. The American Wind Energy Association has associated green marketing with
wind energy. Green marketing can improve the environmental profile of the U.S.
electricity supply if marketers sell a power product that includes a substantial
fraction of wind, geothermal, biomass (including landfill gas) and/or solar resources.
The generation of power from these renewable resource technologies produces few
or no air emissions, no carbon. They will be most vulnerable in competitive markets
and can most benefit from consumer support. While "green" is difficult to define,
and arguments can be made that natural gas and large hydropower are less
environmentally harmful than coal, oil, and nuclear power, green-customer demand
is unlikely to exceed the supply of large, existing quantities of gas and hydro
resources.
19. Anja Schaefer from the The Open University (BBC) has mentioned that green
marketing is there in a sizeable market segment of green consumers who are willing
to pay a little more for environmentally friendly products from environmentally
friendly companies. Producers and retailers will react to this green demand and
environmentally friendly practices will be pushed through the supply chain. Green
marketing dates back several decades now, with specialist manufacturers and
retailers such as Ben and Jerry’s, the Body Shop and so forth, leading the way.
20. Green Marketing and Social Networks have discussed the problems related to the
idea of greening the world through marketing. The article has discussed that
organizations are not running charities and their main objective should be to align
their own objectives with that of the protection of the environment. And if it is really
delivered the environmental goods will deliver positive results for the organization.
The programme already lists quite a few problems with the various environmental
targets and actions described by retailers.
21. David Wigder the writer of Reframing Global Warming across the
Political Spectrum provides a different approach towards green marketing from this
article. The author says that the green marketers are challenged to efficiently reach
consumers and effectively impact their attitudes and behaviors. Marketing Green’s
mission is to provide industry professionals with practical strategic marketing advice
on how to build green brands and motivate mass market adoption of more
sustainable products. Today, there is a common perception that Democrats are more
proenvironment than Republicans.
22. Green marketing and biotechnology has provided a relationship
between. Biotechnology is often used to refer to genetic engineering technology of
the 21st century however the term encompasses a wider range and history of
procedures for modifying biological organisms according to the needs of humanity,
going back to the initial modifications of native plants into improved food crops
through artificial selection and hybridization. With the development of new
approaches and modern techniques, traditional biotechnology industries are also
acquiring new horizons enabling them to improve the quality of their products and
increase the productivity of their systems. Biotechnology is technology based on
biology, especially when used in agriculture, food , science and medicine.
OVERVIEW OF GREEN MARKETING
1. Characteristics
2. Benegits of Green Marketing
3. Adoption of the Firms of Green Marketing
4. Challenges of Green Marketing
5. Green Marketing Mix
6. Golden Rules of Green Marketing
7. How to Implement Green Marketing
8. 7 Steps to Implement Green Marketing
CHARACTERISTICS OF GREEN MARKETING
Products those are with natural ingredients and originally grown
Products those are recyclable, reusable and biodegradable,
Products should be organic,
Products containing recycled content, non-toxic chemical,
Products contents under approved chemical,
Products should be printed in carbon footprint, carbon neutral,
Products should be re-compostable,
Products that do not harm or pollute the environment,
Products that will not be tested on animals,
Products that have eco-friendly packaging i.e. Reusable, refillable containers
etc.
BENEFITS OF GREEN MARKETING
Emerging all new concepts is having benefits, if that has benefited only people
accept the new concepts. In that way Green Marketing also has some of the important
benefits those are:
a. Increased revenue:
Every new and positive concept has a good look by the consumers. Especially
Innovators are the important role of this segment. Because they are concentrated on
all new products, if they are satisfied with the products definitely the product very
successful. If the new concept may successful means the sales of the products also
going to increase. If the sales increase automatically revenue also increases.
b. Reduced cost:
In green marketing, the raw material of the production is less, and also the set up of
the business for the long run. The cost of the raw material should be low. This helps
to increase the production and also save money.
c. Build brand value:
Which company do well for the world and people, those companies will get a good
brand value in the heart of the consumers. In this way green practices companies also
get a good brand value among the consumers.
d. Get tax breaks and loans:
The government gives subsidies for innovative companies which help the people who
are living in a rural or un-employment. For example if the company start in rural area
government gives loans and also tax breaks, because of taking risks of the company
and also give employment of the rural area peoples. Likewise in green marketing of
the companies also take risk and also they are saving the environment and also save
health of the people, so they can get loan and tax breaks from the government.
e. Control wastage:
In main theme of the green marketing is reusable, re-compostable, natural way. So
the way of following green marketing the company can save and reduced of the
wastage.
f. World salvation:
Increase of wastage of the products the world going to increase warmth. And also
now days the production process of the companies is sending more smoke to outside.
Those smokes are going to stay in the sky and change the climate and affect the
environment. The way of following green practices, the companies could save the
world in the way of saving the health of peoples and the environment.
GREEN MARKETING ADOPTION OF THE FIRMS
In any change of the products that going to concentrate and alteration of the activities
of the firms. How they are going to adopt green practices in their process of the
production activities. These are some of the adoptions of the companies
a. Opportunities:
In current situation both individual and industries are more about the natural
environment. People are more concentrated to buy environmentally friendly products.
So the industries more concentrate to modify their product. In future all industries
should follow the green practices of their company so this could be the very
opportunity for their business. These are some of the examples of green practices for
their business:
McDonald's replaced its clam shell packaging with waxed paper because of
increased consumer concern relating to polystyrene production and Ozone
depletion
Tuna manufacturers modified their fishing techniques because of the increased
concern over driftnet fishing, and the resulting death of dolphins
Xerox introduced a "high quality" recycled photocopier paper in an attempt to
satisfy the demands of firms for less environmentally harmful products.
b. Corporate social responsibilities:
In current scenario the educated peoples are more being compared before days.
People are concentrating on the advertisements and also corporate social
responsibilities (CSR) companies. Some of the companies are using this CSR for their
marketing tool. Because people believe the company and also their products, then
automatically the particular companies’ sales going to increase and get more profit.
The best examples are Sakthi masalas, they showing advertisement is the preparation
of the masalas done by the physically challenged persons. So when people seeing the
advertisements people impress and automatically give more importance to prefer the
product.
Another example of a firm that does not promote its environmental initiatives is
Coca-Cola. They have invested large sums of money in various recycling activities,
as well as having modified their packaging to minimize its environmental impact.
While being concerned about the environment, Coke has not used this concern as a
marketing tool. Thus many consumers may not realize that Coke is a very
environmentally committed organization. One another firm who is very
environmentally responsible but does not promote this fact, at least outside the
organization, is Walt Disney World (WDW). WDW has an extensive waste
management program and infrastructure in place, yet these facilities are not
highlighted in their general tourist promotional activities.
c. Government pressure:
Government implements rules and regulations to control and stop the illegal activities.
Particularly firms producing products for people. Because if any default in the product
that surely going to affect the people.
So, Government regulations relating to environmental marketing are designed to
protect consumers in several ways: 1) reduce production of harmful goods or by-
products; 2) modify consumer and industry's use and/or consumption of harmful
goods; or 3) ensure that all types of consumers have the ability to evaluate the
environmental composition of goods. In green marketing which come under the
government rules and regulations, so government preparing new rules and regulations
to implement green marketing activities. Like, tax benefit, subsidy.
d. Competitive pressure:
This is the one of the important ways to implement green marketing. In current
scenario more companies are producing in the same product. So if any one of the
company implements green practices for their company automatically that is one of
the enthusiastic to implement the green practices of other companies also. Because
now a days people are more aware of the products, producing company, brand name.
Best example is, the author takes drinking water producing companies, there are
several companies are in the field of drinking water. Aquafina packaged drinking
water from PEPSOCO, printed in every drinking bottle “giving back more water than
we take”, they call that “positive water balance” to help save a precious resource that
is fast depleting in India. Through rain – water harvesting, community watersheds,
and water conservation in agriculture. But Pespsico India saved 836 million liters
more water than they consumed in 2009. Here Aquafina following green practices so
automatically other drinking water companies take necessary steps to follow green
practices.
e. Cost reduction and profit issue:
To increase profit is not a very easy activity of the companies. When reducing the cost
of the production only can easy to reduce the cost and increase the profit. To change
or re-design the production process, can save the wastage of the raw material and also
minimize the raw material usage and automatically the profit going to increase.
CHALLENGES OF GREEN MARKETING
A. New Concept
In India literate and urban consumer is getting more aware about the merits of Green
products but rural consumer are not more aware like urban. New concepts are not
easy to reach very quickly to the consumers. They need to take more time to reach the
consumers. The company and government need to take steps that creates more
awareness and explain about the new concept, and then only the consumer can
understand and try to follow the new concept. When consumers understand the new
concept, then only they are going to accept the new concept. Otherwise the new
concept will be facing a big challenge.
B. Need for Standardization
There is no standardization to authenticate these claims. There is no standardization
currently in place to certify a product as natural. Unless some regulatory bodies are
involved in providing the certifications there will not be any verifiable means. A
standard quality control board needs to be in place for such labeling and licensing.
C. Patience and Perseverance
The investors and corporate need view the environment as a major long-term
investment opportunity, the marketers need to look at the long-term benefits of this
new green practices. It will require a lot of patience and no immediate results. Since it
is a new concept and idea, it will have its own acceptance period. After the acceptance
period automatically the concept reaches to the consumers. So up to that period the
investors need to wait.
D. Avoiding Green Myopia
The first rule of green marketing is focusing on customer benefits with safe. The first
reason, to find the consumers to buy the first opportunity of the product. Motivate the
consumers to pay a premium amount to buy the environmentally friendly products. It
is not going to help if a product is developed which is absolutely green in various
aspects but does not pass the customer satisfaction criteria. This will lead to green
myopia. Also if the green products are priced very high at par with other products,
then again it will lose its market acceptability.
E. Huge investment for technology
The new technology will be high cost were the ordinary machine technology. So the
investors are not ready to invest more amounts and not ready to take risks.
F. Unwilling to pay premium
If green products are produced more, then the cost of production also raises when
compared with ordinary product. Raw material cost going high and production cost
and also low sales, those factors are going to raise the price of the green product. So
consumers are not ready to pay a premium amount for greener products.
GOLDEN RULES OF GREEN MARKETING
a. Know your Customer:
The marketer first to know about his consumer’s knowledge, and their awareness of
the product. Which product offers by the marketer to the consumer? (Whirlpool
learned the hard way that consumers wouldn't pay a premium for a CFC-free
refrigerator because consumers dint know what CFCs were.
b. Educating your customers:
The marketer educate to the known people, about the practices they sare supposed to
do to protect the environment, and also explain the advantages of the product. If the
marketer explains about the product to the known people, only they can know about
the product. Otherwise there is a low possibility to accept the green product.
c. Being Genuine:
Here the marketer could be genuine for their consumers. Then only consumers believe
the marketer and accept the products which offer by the marketer.
d. Comfort the Buyer:
Consumers must be made to believe that the product performs the job it's supposed to
do they won't forego product quality in the name of the environment.
e. Consider Your Pricing:
If marketer charging a premium for his product and many environmentally preferable
products, cost more due to economies of scale and use of higher quality ingredients
make sure those consumers can feel the real value of the product and pay premium
amount.
f. Giving your customers an opportunity to participate:
Marketer when implementing a new product, they need to give a chance to use the
product. If consumers satisfy the product, automatically they are like and try to
purchase the product. So the demo is very important.
GREEN MARKETING MIX
The marketing mixes are product, price, place, promotion. The 4 P's of green
marketing are that of a conventional marketing but the challenge before marketers is
to use the 4 P's in an innovative manner.
Product:
Products are classified based on product variety, quality, design, features, brand name,
packaging, sizes, services, warranties, returns. But in green marketing:
The product is made from recycled goods, Products that can be recycled and
re-usable,
Efficient processes would save water, energy or gasoline, save money and
reduce environmental impact.
Products with environmentally responsible packaging., For example,
McDonalds changed their packaging from polystyrene clamshells to paper
Price:
In price are classified are list price, discounts, allowances, payment period, credit
terms. But in green marketing pricing is the critical element of the marketing mix.
Most consumers are prepared to pay a premium amount of the product.
Place:
In place classified are channels, coverage, assortments, locations, inventory, and
transport. In green marketing the practices are changing with respect to distribution of
the product due various changes in the the mode of the transport which is safe the
environment.
Promotion:
In promotions classified are sales promotions, advertising, sales force, public
relations, direct marketing. In green practices, advertising of the product should be
carried out that shall not affect the environment and alternate the printed
advertisement to electronic advertisements..
HOW TO IMPLEMENT GREEN MARKETING
Implementation of practices of green marketing not only by firms and also individuals
can follow. These are the some of the ways to follow green marketing practices are:
Through website for advertisements,
Use green printing for product manuals,
Choose 100% recycled printer paper,
Go with green clothing,
Rethink your package and recyclable package paper,
Green delivery and better use cycle for courier in near area,
Send electronics proof,
Eco business card (Visiting card).
7 STEPS TO IMPLEMENT GREEN MARKETING
In generally the implemented green marketing in business is more ways even though
there are 7 steps to implement green market. These are the 7 steps to implement green
marketing for their business:
1. Reduce your printing habits
2. Print on both sides of the paper
3. Use recycled, post-consumer paper
4. Go digital when possible,
5. Shy away from ineffective marketing programs.
6. Reduce unnecessary product packaging.
7. Use alternative sources of energy.
