GREEN MARKETING
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-
1. Product modification,
2. Changes to the production process,
3. Packaging changes, as well as
4. Modifying advertising.
The term green marketing came into prominence in the late 1980s and early 1990s. The
American Marketing Association (AMA) held the first workshop on “Ecological Marketing”
in 1975. The proceedings of this workshop resulted in one of the first books on green
marketing entitled “Ecological Marketing”.
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 or Environmental Marketing satisfies human needs with minimal detrimental impact
on the national environment. Green marketing not only includes consumer goods and
industrial goods but also the services sector. In the process of distribution of goods and
services, both the manufacturing and the services balance contribute towards the ecological
imbalance and loss of the ozone layer.
However, the role of the manufacturing sector in this regard is more significant. The process
of manufacturing and selling goods and services with the least threat to the environment is a
big issue before the business houses. Green marketing requires awareness not only from the
consumers but also from the manufacturers of such goods.
Green or Environmental Marketing satisfies human needs with minimal detrimental impact
on the national environment. Green marketing not only includes consumer goods and
industrial goods but also the services sector. In the process of distribution of goods and
services, both the manufacturing and the services balance contribute towards the ecological
imbalance and loss of the ozone layer.
However, the role of the manufacturing sector in this regard is more significant. The process
of manufacturing and selling goods and services with the least threat to the environment is a
big issue before the business houses. Green marketing requires awareness not only from the
consumers but also from the manufacturers of such goods.
It is needless to say that the major reason behind the imbalance in the ecosystem is the
improper management of resources and the population explosion. Hence, the process of
selling goods and services in an eco-friendly way is a big issue before the business houses
across the globe.
Moreover, keeping eco-friendly goods in the hands of the ultimate users is the social
responsibility of the manufacturer as the role of wealth creators has been more in damaging
the ecosystem rather than preserving it.
In our days the environmental problems seem to concern all active citizens, enterprise, and
institutions all over the world much more than it did 30 years ago. International researches
show that consumers worry about the environment and change their behaviour gradually.
Thus a new market for viable or sustainable product emerges, which is further strengthened
by active consumers since it is a way to contribute to the protection of the environment.
The enterprises gradually recognize the various competitive advantages and the enterprising
opportunities that arise from this ecological consuming approach, entering the word “green”
in many of their activities. Thus, in parallel with the concept of corporate social responsibility
of “green marketing” has also been cultivated with sufficiently effective practices.
The important golden laws of Green Marketing are as follows:
1. Customers should be Aware:
If a company needs to sell the products, it should make sure that the customers are better
aware of the benefits of “green” products and their growing necessity. The customer should
know the main reason behind the issue of the products that are eco-friendly.
2. Reassure the Buyers:
Marketer should understand that they need to convince the customers by promoting the true
quality and ethically show the performance of the product, because it would be very difficult
to sell the products to customers only on the lines that they are eco-friendly.
3. Transparency:
Marketers should be ethical in claiming their products as eco-friendly. They should be
genuine and transparent about their claims. The business policies should also go with it.
4. Consider Pricing:
It is possible that marketers charge a greater price for their “green” products because of their
high cost of production and use of higher-quality ingredients. Many customers might not
afford these high prices, so company needs to consider a reasonable price and target the
appropriate audience effectively.
5. Customer Participation:
The marketer should involve the customers in the initiative of green marketing. Once the
customer is a part of this cause, he or she will understand the concept better and the issues of
pricing etc. can be resolved.
IMPORTANCE OF GREEN MARKETING
1. Environmental Advantages:
Going green is an environmentally responsible choice. It is estimated that 40 percent of all
greenhouse gases in the United States comes from energy production that businesses use to
heat, cool and light workplaces. Reducing these energy needs reduces carbon dioxide output,
helping to control global warming. As businesses use more natural resources than individual
consumers, recycling business materials and conserving water contribute to conservation on a
larger scale.
2. Economic Advantages:
The reduction in waste equals lower operating costs and more savings. Eco-friendly business
equipment and practices such as – low-wattage or LED lights, use of natural lighting, water
conservation policies, mandatory recycling and hybrid company vehicles save money on
utilities, fuel and office supplies. This generates instant cash flow. Further going green puts a
business in a positive light in the eyes of customers, potential investors, distributors, activists,
watchdog groups, communities and prospective employees.
3. Sustainability:
Going green is about sustainability; this sustainability translates to sustainable profits in green
sectors with secure futures. The future-safe markets include biomaterials, green buildings,
personal transportation, smart grids, mobile applications and water filtration.
4. Efficient Use of Resources:
Today, human demands and needs are unlimited but resources are short enough that cannot
fulfill the human needs. Markets need to facilitate the consumers by utilizing resources
efficiently.
5. Planned Techniques:
It needs to develop well planned techniques and innovative policies to achieve the
organizational goals effectively without any wastage of time and other resources. Green
marketing examples of different products and services develops a growing interest among
customers throughout the world.
6. Consumer Attraction:
Green marketing examples of different products attracts the consumers regarding
environment protection. People are so much conscious about their environment and variations
in behavior. Green marketing is considered as growing marketing that helps to design socially
and sustainable products.
7. Innovation:
Green marketing helps to design such kinds of products that are economically affordable and
satisfy the human needs efficiently. It produces innovative green products that consume less
resource.
8. Competitive Advantage:
Companies enjoy competitive advantage over other companies in the market through green
marketing examples. Today, companies which adopt green marketing techniques gain more
competitive advantage over other companies which are not conscious about such techniques
and environment. Companies which develop innovative products and services with
innovative qualities at affordable rates are successful in the market.
Green marketing is a group of activities that are designed to meet the consumer‟s demands
and needs at affordable price range.
Green Marketing – 5 Main Examples: Maruti Suzuki, Bharat Petroleum, Hindustan
Petroleum, Proctor & Gamble and ITC
Corporate are going green from the grassroots level to sustain and win the customers‟
expectations. The environment is becoming increasingly an important part of the corporate
reputations and they are actively participating in greening the corporate strategy. Companies
have converted almost all the products to make them eco-friendly products. Following are the
recent environment friendly initiatives taken by the companies.
1. Maruti Suzuki:
The company has been promoting 3 R since its inception. As a result the company has not
only been able to recycle 100% of treated waste water but also reduced fresh water
consumption. The company has implemented rain water harvesting to recharge the aquifers.
Also, recyclable packing for bought out components is being actively promoted.
The country‟s largest car manufacturer had managed to slash energy consumption per car at
its Gurgaon factory by 26 per cent over the past six years, while its carbon dioxide (CO2)
emissions during car manufacturing processes has come down 39 per cent in the past five
years. The model with gas as fuel was adopted by Maruti Suzuki India Limited as their Green
Marketing practices.
2. Bharat Petroleum:
Bharat Petroleum launched a programme to cut production of greenhouse gases by 10%
across its units worldwide and achieved it much ahead of schedule. Cleaner fuels such as
Greener Diesel (ultra low sulphur content) and BP Autogas were developed. Almost all of its
plants are ISO 14001 certified. Currently it is running a programme to contain its net
emissions at current levels for ten years.
3. Hindustan Petroleum:
Hindustan Petroleum owns a massive e-waste recycling plant, where enormous shredders and
granulators reduce four million pounds of computer detritus each month to bite-sized chunks
the first step in reclaiming not just steel and plastic but also toxic chemicals like mercury and
even some precious metals. HP will take back any brand of equipment; its own machines are
100 percent recyclable. It has promised to cut energy consumption by 20 percent by 2010.
4. Proctor & Gamble:
Laundry detergents are also touting energy savings. Proctor & Gamble‟s (P&G) newest
market entry, Tide Coldwater, is designed to clean clothes effectively in cold water. About 80
to 85 percent of the energy used to wash clothes from heating water.
5. ITC:
ITC has been „Carbon Positive‟ for three years in a row sequestering/ storing twice the
amount of CO2 than the Company emits. It has been „Water Positive‟ six years in a row
creating three times more Rainwater Harvesting potential than ITC‟s net consumption. It has
obtained close to 100% solid waste recycling. All Environment, Health and Safety
Management Systems in ITC conform to the best international standards. ITC‟s businesses
generate livelihoods for over 5 million people.
ITC‟s globally recognized e-Choupal initiative is the world‟s largest rural digital
infrastructure benefiting over 4 million farming families. ITC‟s Watershed Development
Initiative brings precious water to nearly 35,000 hectares of dry lands and moisture-stressed
areas. ITC‟s Sustainable Community Development initiatives include women empowerment,
supplementary education, integrated animal husbandry programmes.
Green Marketing Mix – 4 Ps of Green Marketing Mix: Green Products, Green Price,
Green Place and Green Promotion
Marketers need to define and design the 4 Ps of marketing mix from the viewpoint of
environmental preservation. The green marketing mix elements address the key
environmental issues appropriately and effectively.
1. Green Products:
Consider products that consume more energy, use toxic chemicals, cannot be recycled, and
use extensive packaging. Such products are a threat to the environment as they lead to
environmental degradation and pollution. On the other hand, products that help in saving
energy, use natural ingredients, are recycled, or use reduced packaging make contributions to
the environment. Therefore, those products that are produced in harmony with the
environment are known as „green products‟.
Production of green products is based on green technology. Green products help in saving
natural resources and subscribe towards sustainable future.
Organizations should produce environment-friendly products as they help in saving energy
resources and do not affect the environment adversely. The various stages involved in the
production of environment-friendly products are efficient in terms of environment protection
and conservation.
Environment-friendly products use natural and organic ingredients that are sourced from
local suppliers and its manufacturing and circulation is done in a manner that has least or no
impact on environment. Different governing organizations and certification systems certify
the product as green after assessing it against environmental performance criterion.
2. Green Price:
Production of green products requires modification in the production processes and this
necessitates expenditure. Cost increase results in increased price point of green products that
makes acceptability of the product in the market difficult. The high price may act as a
deterrent as consumers may be either unwilling or unable to pay this green premium.
The gap between the price of a green product and a non-green product is known as „pricing
gap‟. Price impediments can be tackled either by lowering the price point of green products to
make it contiguous with the prevailing products in the market or by enhancing the perceived
value of the green products in the eyes of the customer (by adding to the benefits derived
such as improved packaging, improved attributes, and making the product specific to
customers‟ needs).
3. Green Place:
Green place relates to the distribution of green products without doing any harm to the
environment. This is achieved through efficient utilization of fuel and energy and arranging
for logistics with the least emissions.
Transportation costs constitute a major part of business costs and resources spend in
distribution can be saved through local production. This decreases transportation costs and
also reduces carbon footprint. Selling over the Internet as compared to a shop also saves
business resources.
4. Green Promotion:
Consumers need to be made aware about green products and motivated to purchase them.
Therefore, huge amount of money and resources are spent by companies nowadays on
advertising and promotion of green products. Green promotion entails increasing the
sensitivity of consumers towards green products as well as promoting the products in an
environment-friendly manner like using social networking sites to post profiles related to
green marketing.
Recently, Nike with its „Better World‟ campaign launched its first 100 per cent recycled
television advertisement, which was recycled by reusing and remixing film of its earlier
campaigns.
