Green Marketing
Green Marketing
Green Marketing
History
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".
It means that:-
A. GREEN PRODUCT:
The products have to be developed
depending on the needs of the customers who
prefer environment friendly products. Products can
be made from recycled materials or from used
goods. Efficient products not only save water,
energy and money, but also reduce harmful effects
on the environment. Green chemistry forms the
growing focus of product development. The
marketer's role in product management includes
providing product designers with market-driven
trends and customer requests for green product
attributes such as energy saving, organic, green
chemicals, local sourcing, etc., For example, Nike is
the first among the shoe companies to market
itself as green. It is marketing its Air Jordan shoes
as environment-friendly, as it has significantly
reduced the usage of harmful glue adhesives. It
has designed this variety of shoes to emphasize
that it has reduced wastage and used
environment-friendly materials.
B. GREEN PRICE
Green pricing takes into consideration the people,
planet and profit in a way that takes care of the
health of employees and communities and ensures
efficient productivity. Value can be added to it by
changing its appearance, functionality and through
customization, etc. Wal Mart unveiled its first
recyclable cloth shopping bag. IKEA started
charging consumers when they opted for plastic
bags and encouraged people to shop using its "Big
Blue Bag"
C. GREEN PLACE
Green place is about managing logistics to cut
down on transportation emissions, thereby in effect
aiming at reducing the carbon footprint. For
example, instead of marketing an imported mango
juice in India it can be licensed for local production.
This avoids shipping of the product from far away,
thus reducing shipping cost and more importantly, the
consequent carbon emission by the ships and
other modes of transport.
D. GREEN PROMOTION
Green promotion involves configuring the tools of
promotion, such as advertising, marketing
materials, signage, white papers, web sites, videos
and presentations by keeping people, planet and
profits in mind. British petroleum (BP) displays gas
station which its sunflower motif and boasts of
putting money into solar power. Indian Tobacco
Company has introduced environmental-friendly
papers and boards, which are free of elemental
chlorine. Toyota is trying to push gas/electric
hybrid technology into much of its product line. It is
also making the single largest R&D investment in
the every-elusive hydrogen car and promoting
itself as the first eco-friendly car company.
• Green products:
Companies producing products can do many things to improve
the green factor of their offerings, including choosing
sustainable materials, designing products to save energy and
water, and making products that are less toxic and more natural
than competitors’ goods. Greener products will also be
packaged in an eco-friendly manner and will be made to be
easily recycled or composted.
• Sustainable marketing:
You’ll also want to ensure that the actual
marketing systems you use are green, which is
really distinct from your operational sustainability
which focuses on manufacturing and production.
For instance, when printing marketing materials,
use 100% post-consumer recycled paper made
without chlorine (called “processed chlorine free”)
and printed using plant-based dyes (like soy inks).
You could also investigate tools like green web
hosting, carbon offsets for any marketing
emissions you may cause, recycling any unused
materials from billboards and signage, ecological
packaging, and so on.
• Environmental causes:
Any organization can choose to promote
environmental causes. Nonprofits and NGOs will
engage in green marketing to get the word out
about their activities, but for profits can also
suppose environmental causes by making
donations and advertising for these environmental
do gooders as part of a green marketing campaign.
a. Opportunity
In India, around 25% of the consumers prefers
environmental-friendly products, and around 28%
may be considered healthy conscious. There fore,
green marketers have diverse and fairly sizeable
segments to cater to. The Surf Excel detergent
which saves water (advertised with the message
—"do bucket paani roz bachana") and the energy-
saving LG consumers durables are examples of
green marketing. We also have green buildings
which are efficient in their use of energy, water
and construction materials, and which reduce the
impact on human health and the environment
through better design, construction, operation,
maintenance and waste disposal. In India, the
green building movement, spearheaded by the
Confederation of Indian industry (CII) - Godrej
Green business Center, has gained tremendous
impetus over the last few years. From 20,000 sq ft
in 2003, India's green building footprint is now over
25 million sq ft.
b. Social Responsibility
Many companies have started realizing that they
must behave in an environment-friendly fashion.
They believe both in achieving environmental
objectives as well as profit related objectives. The
HSBC became the world's first bank to go carbon-
neutral last year. Other examples include Coca-
Cola, which has invested in various recycling
activities. Walt Disney World in Florida, US, has an
extensive waste management program and
infrastructure in place.
c. Governmental Pressure
various regulations rare framed by the government
to protect consumers and the society at large. The
Indian government too has developed a framework
of legislations to reduce the production of harmful
goods and by products. These reduce the
industry's production and consumers' consumption
of harmful goods, including those detrimental to
the environment; for example, the ban of plastic
bags in Mumbai, prohibition of smoking in public
areas, etc.
d. Competitive Pressure
Many companies take up green marketing to
maintain their competitive edge. The green
marketing initiatives by niche companies such as
Body Shop and Green & Black have prompted
many mainline competitors to follow suit.
Marketing Strategies
The marketing strategies for green marketing
include: -
PATHS TO GREENNESS
Green marketing involves focusing on promoting
the consumption of green products. Therefore, it
becomes the responsibility of the companies to
adopt creativity and insight, and be committed
to the development of environment-friendly
products. This will help the society in the long
run. Companies which embark on green
marketing should adopt the following principles
in their path towards greenness."
Adopt new technology/process or modify
existing technology/process so as to reduce
environmental impact.
Establish a management and control system
that will lead to the adherence of stringent
environmental safety norms.
Using more environment-friendly raw
materials at the production stage itself.
Explore possibilities of recycling of the used
products so that it can be used to offer similar
or other benefits with less wastage.
CONCLUSION
A clever marketer is one who not only convinces
the consumer, but also involves the consumer in
marketing his product. Green marketing should not
be considered as just one more approach to
marketing, but has to be pursued with much
greater vigor, as it has an environmental and social
dimension to it. With the threat of global warming
looming large, it is extremely important that green
marketing becomes the norm rather than an
exception or just a fad. Recycling of paper, metals,
plastics, etc., in a safe and environmentally
harmless manner should become much more
systematized and universal. It has to become the
general norm to use energy-efficient lamps and
other electrical goods.
2.Empower consumers:
Make sure that consumers feel, by themselves or
in concert with all the other users of your product,
that they can make a difference. This is called
"empowerment" and it's the main reason why
consumers buy greener products.
3. Be transparent:
Consumers must believe in the legitimacy of your
product and the specific claims you are making.
Caution: There's a lot of skepticism out there that
is fueled by the raft of spurious claims made in the
"go-go" era of green marketing that occurred
during the late 80s-early90s
GOVERNMENTALPRESSURE
As with all marketing related activities,
governments want to "protect" consumers and
society; this protection has significant green
marketing implications. Governmental 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.
COMPETITIVE PRESSURE
Another major force in the environmental
marketing area has been firms' desire to maintain
their competitive position. In many cases firms
observe competitors promoting their
environmental behaviors and attempt to emulate
this behavior. In some instances this competitive
pressure has caused an entire industry to modify
and thus reduce its detrimental environmental
behavior. For example, it could be argued that
Xerox's "Revive 100% Recycled paper" was
introduced a few years ago in an attempt to
address the introduction of recycled photocopier
paper by other manufacturers.