1. Green Marketing
Dr.A.S.R.PRASAD
MOHANA PRASAD.M
INTRODUCTION:
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 or services based on
their environmental benefits. Such as product or service may be environmentally friendly in it or
produced and/or packaged in an environmentally friendly way.
The obvious assumptions of green marketing are that potential consumers will
view a product or services “greenness” as the benefit and base their buying decisions
accordingly. The not-so-obvious assumption of green marketing is that consumers will be willing
to pay more for green products that they would for a lees. Green comparable alternative product
on assumptions that in many opinion, has not been proven conclusively.
While green marketing is greatly as increasing numbers of customers are willing
to back their environmental consciousness with their dollars. It can be dangerous. The public
tends to be skeptical of green claims to begin with and companies and seriously damage their
brands and their sales if a green claim is discovered to be sales contradicted by a company’s
other products or practices. Presenting a product or service as green when it is 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
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2. incorporate 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 tack where several meanings intense 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.
Evolution of green marketing:-
The green marketing has evolved over a period of time. According to peattie
(2001), the evolution of green marketing has three phases.
First phase:-
First phase was termed as “ecological” green marketing, and during this all
marketing activities were concerned to help environment problems and provide remedies for
environmental problems.
Second phase:-
In the second phase was “environmental” green marketing and the focus shifted
on clean technology that involved designing of innovative new products, will take care of
pollution and waste issues.
Third phase:-
The third phase was”sustainable” green marketing. It came in to prominence in
the late 1990’s a early 2000.
Need for 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
organizational goal. So green marketing is inevitable.
There is growing interest among the customers all over the world regarding
protection of environment world wide evidence indicates people are concerned about the
environment and are changing their behavior. As a result of this, green marketing has emerged
which speak for growing market for sustainable and socially responsible products and services.
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3. Rules of green marketing:-
Leading the competition is not easy especially if you are opting for green
marketing. But following there effective rules can help you to lead the way.
1.focus on customer need:-
Every successful business first focus on customer need. Customers are bothered
about their own benefit and not the profit of your company. So make them understand how they
can be benefited by using your product or service. You need to judge whether your customers are
educated or they are learning what it means to be green. If they are still in the learning process
take small steps to teach them how using your product and service is beneficial for them as well
as for the environment.
2. Try to educate your customers:-
This is very important because if they understand the need of being environment
friendly they will surely by your product or avail your service. Through education the customers
can make a change in their decision and can stop using products that are harmful for the
environment. They will turn to your company knowing that you can help them do something for
the planet even local scale.
3.Green marketing ads are not easy to make:-
As people say “truth in advertising is critical “we often tend to think that
advertising is all about generating hype regarding a brand. But it is not so. You can do away with
hype and promote the truth. The process is slow but steady. You will see the result as soon as the
customers understand that what you are showing is not a fake.
4.The best way to convince your customers is to offer proof :-
If your product or service do some good to the customer as well as to the
environment it is great share the fact with people and what can be a better is other than offering
proof. Customer’s testimonial or test result can easily make the care for you.
5.The price of your product or service should meet the expectations of the customers:-
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4. High-end customers often don’t mind paying more for a valuable product or
service. They will never question your price as far as you keep the price where it is. But if you
want to entice the non premium customers then maintaining an affordable price rate is important
or else you should add more value to your product so that they don’t hesitate buying it.
Objectives of green marketing:-
 To identify the customers to fulfill their need.
 To create awareness about the ecological process and environmental, sustainable, green
marketing process.
 To educate the customers.
 To avoid the wastage of resources.
 To utilize maximum resources in an effective manner a cycle process.
 To tell the truth and generating hype regarding a brand.
Uses of green marketing:-
• Companies that develop new and improved products services with environment inputs in
mind give themselves access the new markets, to increase their profit sustainability.
• Competitive advantage over the companies which are not concerned for the environment.
• Remove the wastage resources, raw materials in the manufactured side. In this case the
manufacturer using the wastage materials also. He may produce the effective products
and innovative production process.
• Companies create competition in the market. In this situation companies are not
bothering about the production features and customers value. Why because the customers
are not educated but they are understand the situation. At this time it is very useful to the
customers oriental. The manufacturer takes responsibility to educate the customers and to
create the awareness what happened in the future.
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5. • Increasingly, customers are becoming aware of all causes and effect of a polluted
environment. They are aware of the damage that polymethane bags have caused to the
soil and the drainage system. It is common at see all across India plastic bags litterating
streets, drains beaches and agricultural fields. Aware of the negative consequences, to
day many customers carries his/her own shopping bag. Also shopkeepers are becoming
conscious of this issues and using biodegrading and/or recycled materials for
packing/packaging. An aware customer now insists on a green product and packaging
material.
• Aware customers are joining together to form interest groups which lobby for eco-
friendly products and legislation to protect their environment. Companies are today
ranked by business magazines like business today on how effective they are on ecology
protection. This has also become a parameter of good corporate governance.
Green marketing mix:-
Every company has its own favorite marketing mix some have 4p’s and some have 7p’s
of marketing mix. The 4p’s of green marketing are that of a conventional marketing but the
challenge before marketers is to use 4p’s is an innovative manner. Green marketing mix or eco-
marketing differs from traditional marketing.
Product:-
The ecological objectives in planning products are to reduce resource consumption and
pollution and to increase conservation of scare resources.
Price:-
Price is a critical and important factor of green marketing mix. Most customers will only
be prepared to pay additional value if there is a perception of extra product value. This value
may be improved performance, function, visual appeal or taste. Green marketing should take all
these facts in to consider while changing a premium price. In this stage every manufacturer
concentrates on the price. The marketer can use activity based costing to identify eco-costs and
allocate them to the products responsible for them.
Promotion:-
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6. It is very key and important activity. They should create the awareness about the eco-
logical products or service features. Those that promote a green lifestyle by highlighting a
product or service. Ads that present a corporate image of environmental responsibility.
Place:-
place is also a one of the important attribute in the marketing mix. It is depend on the
product available will have a significant impact on the customers. And where the product is
available and when its available very few customers will go out of their way to buy green
products.
Marketing strategies:-
 Marketing audit.
 Develop a marketing plan outlining strategies with regard to 4p’s.
 Implement marketing strategies.
 Plan results in evaluation.
 Presentation oriented programs conducted in various qualities.
 Next phase we can conduct different promotional activities.
Some cases:-
 APSRTC introduces the CNG buses in cities. Like Vijayawada, Hyderabad etc.
 Mc Donald’s restaurants napkins, bags are made of recycled paper.
 Kothagudem thermal power station is devising way to utilize coal-ach that has been a
major source of air and water pollution.
 Barany refinery of IOC is taken steps for restriction air and water pollutants.
Conclusion:-
Green marketing should not neglect the economic aspect of marketing. Marketers need to
understand the implications of green marketing. If you think customers are not concerned about
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7. environmental issues or will not pay a premium for products that are more eco-responsible, think
again. You must find an opportunity to enhance your products performance and strengthen your
customer’s loyalty and command and higher price sustainable green marketing therefore requires
the marketing mix i.e. compatible with the ecology. This is possible through product and delight
system design for environment protection. For this purpose understanding the ecology is crucial.
It is important for the market to understand that a proper functioning of the eco-system ensures
the existence of life on earth.
References
Chopra, S. Lakshmi (2007), "Turning Over a New Leaf", Indian Management, Vol-64,
April-2007
Ottman, J.A. et al, "Avoiding Green Marketing Myopia", Environment, Vol-48, June-2006
www.greenmarketing.net/stratergic.html
www.epa.qld.gov.au/sustainable_ industries
www.wmin.ac.uk/marketing research/marketing/greenmix.html
http://www.coolavenues.com/mba-journal/marketing/green-marketing-opportunities-challenges?
page=0,1
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