GREEN MARKETING

1. INTRODUCTION
1.1 Meanings & Concepts:
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.

In today's business world environmental issues plays an important role in marketing. All most all the governments around the world have concerned about green marketing activities that they have attempted to regulate them. For example, in the United States (US) the Federal Trade Commission and the National Association of Attorneys-General have developed extensive

documents examining green marketing. There has been little attempt to academically examine environmental or green marketing.

Yet 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. Other similar terms used are Environmental Marketing and Ecological Marketing. The legal implications of marketing claims call for caution. Misleading or overstated claims can lead to regulatory or civil challenges. In the USA, the Federal Trade Commission provides some guidance on environmental marketing claims.

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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.

Are you aware of the term green marketing?

a. Yes

b. No

36 No 14 Yes

10

15

20

25

30

35

40

The above bar graph indicates that out of 50, 36 respondents are not familiar with the term Green Marketing. Many of them have a misconception with the term Green Marketing My definition which encompasses all major components of other definitions is: "Green or Environmental Marketing consists of all activities designed to generate and facilitate any exchanges intended to satisfy human needs or wants, such that the satisfaction of these needs and wants occurs, with minimal detrimental impact on the natural environment."

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So, in simple terms Green marketing refers to the process of selling products and/or services based on their environmental benefits. Such a product or service The obvious assumption of green marketing is that potential consumers will view a product or service's "greenness" as a benefit and base their buying decision accordingly. The not-so-obvious assumption of green marketing is that consumers will be willing to pay more for green products than they would for a less-green comparable alternative product - an assumption that has not been proven conclusively, specially the mild effect which it had had on consumers has washed away by the present recession (2008-09) only.

1.2 Importance of Green Marketing:

Man has limited resources on the earth, with which she/he must attempt to provide for the worlds' unlimited wants. There is extensive debate as to whether the earth is a resource at man's disposal. In market societies where there is "freedom of choice", it has generally been accepted that individuals and organizations have the right to attempt to have their wants satisfied. As firms face limited natural resources, they must develop new or alternative ways of satisfying these unlimited wants. Ultimately green marketing looks at how marketing activities utilize these limited resources, while satisfying consumers wants, both of individuals and industry, as well as achieving the selling organization's objectives.

1.3 Goals of Green Marketing:

Eliminate the concept of waste. Reinvent the concept of product. Make prices reflect actual and environmental costs. Make environmentalism profitable.

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Bringing out product modifications. Changing in production processes. Packaging changes. Modifying advertising.

1.4 NEED OF GREEN MARKETING:

Issues like Global warming and depletion of ozone umbrella are the main for the healthy survival. Every person rich or poor would be interested in quality life with full of health and vigor and so would the corporate class. Financial gain and economic profit is the main aim of any corporate business. But harm to environment cost by sustain business across the globe is realized now though off late. This sense is building corporate citizenship in the business class. So green marketing by the business class is still in the selfish anthological perspective of long term sustainable business and to please the consumer and obtain the sanction license by the governing body. Industries in Asian countries are catching the need of green marketing from the developed countries but still there is a wide gap between their understanding and implementation.

1.5 Challenges in Green Marketing: a) NEED FOR STANDARDIZATION:

It is found that only 5% of the marketing messages from Green campaigns are entirely true and there is a lack of standardization to authenticate these claims. There is no standardization to authenticate these claims. There is no standardization currently in place to certify a product as organic. Unless some regulatory bodies are involved in providing the certifications there will not be any verifiable means. A

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standard quality control board needs to be in place for such labeling and licensing.

b) NEW CONCEPT:
Indian literate and urban consumer is getting more aware about the merits of Green products. But it is still a new concept for the masses. The consumer needs to be educated and made aware of the environmental threats. The new green movements need to reach the masses and that will take a lot of time and effort. By Indias ayurvedic heritage, Indian consumers do appreciate the importance of using natural and herbal beauty products. Indian consumer is exposed to healthy living lifestyles such as yoga and natural food consumption.

c) PATIENCE AND PERSEVERANCE:

The investors and corporate need to view the environment as a major long-term investment opportunity, the marketers need to look at the longterm benefits from this new green movement. 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.

d) AVOIDING GREEN MYOPIA:

The first rule of green marketing is focusing on customer benefits i.e. the primary reason why consumers buy certain products in the first place. Do this right, and motivate consumers to switch brands or even pay a premium for the greener alternative. 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.

GREEN MARKETING 1.6 Benefits of Green Marketing:

Todays consumers are becoming more and more conscious about the environment and are also becoming socially responsible. Therefore, more companies are responsible to consumers aspirations for environmentally less damaging or neutral products. Many companies want to have an early mover advantage as they have to eventually move towards becoming green.

Some of the advantages of green marketing are: It ensures sustained long term growth along with profitability. It saves money in the long run, though initially the cost is more. It helps the companies market their products and services keeping the environment aspects in mind. It helps in accessing the new markets and enjoying the competitive advantage. Most of the employees also feel proud and responsible to be working for an environmentally responsible company.

1.7 Golden Rules of Green Marketing:

1. Know Your Customer: Make sure that the consumer is aware of and concerned about the issues that your product attempts to address, (Whirlpool learned the hard way that consumers wouldnt pay a premium for a CFC-free refrigerator because consumers dint know what CFCs were.).

2. Empower Consumers: Make sure that consumer feel. By themselves or in concert with all the other users of your product, that they can make a difference. This is
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called empowerment and due to this main reason consumers will buy greener products.

3. Be Transparent: Consumers must believe in the legitimacy of the product and the specific claims made in regard.

4. Reassure the Buyer: Consumers must be made to believe that the product performs the job its supposed to do-they wont forego product quality in the name of the environment.

5. Consider Your Pricing:

If youre charging a premium for your product-and many environmentally preferable products cost more due to economies of scale and use of higher-quality ingredients-make sure those consumers can afford the premium and feel its worth it.

1.8 WHY 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 organization's objective. So green marketing is inevitable. There is growing interest among the consumers all over the world regarding protection of environment. Worldwide evidence indicates people are concerned about the environment and are changing their behavior. As a result of this, green marketing has emerged which speaks for growing market for sustainable and socially responsible products and services.

GREEN MARKETING
Green marketing is a process of selling products or services that are based on the benefits they may provide to the environment. From utilizing recycled paper for packaging to using soy-based ink and recycled paper for all printed marketing materials, businesses have an opportunity to attract new customers by incorporating green practices into their business model.

1.9 Green Business Practice:

Green business initiatives can give a business a distinct advantage over competing businesses that are not incorporating environmentally-friendly tactics into their business model. Green initiatives a business might highlight in their marketing efforts include steps taken by their facility to reduce pollution. Other green initiatives worthy of highlighting include recycling efforts. Try capturing the amount of material recycled each year and saved from the landfill and highlight in marketing materials. Communicate about the efforts made to conserve resources or new technology used to improve energy efficiency. Businesses that follow fair trade and labor practices should include these policies in their green marketing efforts as well.

1.10 Green Marketing Tips for Businesses:

To be successful at green marketing, the efforts should be genuine, informative and engaging. Be clear and concise in communicating the green processes used when creating products or services. However, be careful not to oversell green policies and initiatives. Instead, be honest and just state the facts about the environmentally-friendly practices in place. For product packaged in recyclable packaging, provide tips for recycling the components of the packaging. If carbon offsets are purchased to help reduce environmental impact, provide information to customers about how carbon

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offsets work and how they can purchase carbon offsets to help reduce their overall impact. Green marketing provides businesses with the opportunity of showing customers they care about the environment and ways they are making a difference. And when done right, green marketing can build lasting relationships with current customers as well as attract new ones.

1.11 DEBATE, CONFUSION AND STATISTICS:

1) Ongoing debate:
The popularity of such marketing approach and its effectiveness is hotly debated. Supporters claim that environmental appeals are actually growing in numberthe Energy Star label, for example, now appears on 11,000 different companies' models in 38 product categories, from washing machines and light bulbs to skyscrapers and homes. However, despite the growth in the number of green products, green marketing is on the decline as the primary sales pitch for products. (NEEDS CITATION) On the other hand, Ropers Green Gauge shows that a high percentage of consumers (42%) feel that environmental products dont work as well as conventional ones. Given the choice, all but the greenest of customers will reach for synthetic detergents over the premium-priced, proverbial "Happy Planet" any day, including Earth Day.

2) Confusion regarding Green Marketing:

One challenge green marketers -- old and new -- are likely to face as green products and a message become more common is confusion in the marketplace. "Consumers do not really understand a lot about these issues, and there's a lot of confusion out there," says Jacquelyn Othman (founder of J. Othman Consulting

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and author of "Green Marketing: Opportunity for Innovation.") Marketers sometimes take advantage of this confusion, and purposely make false or exaggerated "green" claims. Critics refer to this practice as "green washing".

3) Statistics:
According to market researcher Mintel, about 12% of the U.S. population can be identified as True Greens, consumers who seek out and regularly buy socalled green products. Another 68% can be classified as Light Greens, consumers who buy green sometimes. "What chief marketing officers are always looking for is touch points with consumers, and this is just a big, big, big touch point that's not being served," says Mintel Research Director David Lockwood. "All the corporate executives that we talk to are extremely convinced that being able to make some sort of strong case about the environment is going to work down to their bottom line.

SOURCE: www.GREEN AT WORK MAG.com

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2. MARKET MIX OF GREEN MARKETING

When companies come up with new innovations like eco friendly products, they can access new markets, enhance their market shares, and increase profits. Just as we have 4Ps product, prices, place and promotion in marketing, we have 4ps in green marketing too, but they are a bit different. They are added by three additional Ps, namely people, planet and profits.

2.1 FOUR PS (4PS)A. 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. Do you consider the environmental aspects of the products before buying them? a. Yes b. No c. Sometimes

Sometimes 48%

yes 24% No 28%

The above chart indicates that only 48% i .e. the majority of respondents consider the Environmental aspect some times. And, only 24% consider the environmental aspect of the product while buying it

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GREEN MARKETING B. 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. Examples are: 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. 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. 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. Examples are: British petroleum (BP) displays gas station which its sunflower motif and boasts of putting money into solar power. Indian Tobacco Company (ITC) has introduced environmental-friendly papers and boards, which are free of elemental chlorine.

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Toyota is trying to push gas/electric hybrid technology into much of its product line. It is also R&D investment in the every-elusive hydrogen car and promoting itself as the first eco-friendly car company.

2.2 ECO-LABELING INITIATIVES:

Eco label provide information regarding the environmental performance of products. The objective of eco-labeling is to provide authentication to genuine claims regarding the environmental impact of products and processes by manufacturers. In India the government has introduced the eco-mark scheme since 1981. The objectives of the scheme are: To provide incentives to manufacturers and importers to reduce the adverse environmental impact of products. To reward genuine initiatives by companies to reduce adverse impact of environmental impact of products. To assist consumers to become environmentally responsible in their daily lives by providing them information to take account of environmental factors in their daily lives. To encourage citizens to purchase products which have less environmental impact?

2.3 ECO-LABELLING SCHEMES IN INDIA:

The Ministry of environment and forest of government of India has prescribed the following criteria for products:

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That they cause substantially less pollution than comparable products in production, usage and disposal, That they are recycled and/or recyclable whereas comparable products are not. That they contribute to a reduction on adverse environmental health consequences. That they comply with laws, standards and regulations pertaining to the environment. That their price is not exorbitantly higher than comparable products.

2.4 ECO-MARK IN INDIA:

Under the concept, products which are less harmful to the environment or have benign impact on environment through the various stages of developmentmanufacture, packaging, distribution, use and disposal or recycling may be awarded the Eco-Mark. An earthen pot has been chosen as the logo for Eco-Mark scheme in India. The familiar earthen pot has renewable resource like earth, does not produce hazardous waste and consume little energy in making. As a symbol it puts across its environmental message. Its image has the ability to reach people and help to promote a greater awareness of the need to be kind to the environment. The logo Eco-Mark scheme signifies that the product which carries it does least damage to the environment.

2.5 SHIFTING TO A GREEN ERA:

The color GREEN, until recently was associated all over the world with emerald. In the modern age, however, GREEN is getting associated with sustainable development. Being green is no longer a matter of choice; its

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GREEN MARKETING
marketing is a must, or else enterprise may run the risk of losing customers, employees and shareholders. It has become almost a necessity to maintain a green lifestyle. The major areas addressed by GSCM are: The upstream activities of an organization that comprises evaluation of suppliers environmental performance. Downstream actions that include activities related to the disposal of surfeit stock, particularly the recovery and recycling opportunities. The business enterprises can have several benefits by greening their supply chain. Some of them are:

1. Risk Reduction and Adapting of Regulation:

Enterprises with green practices of SCM can keep themselves free of being prosecuted due to unethical and anti-environmental practices.

2. Sustainability of Resources: The greening of SCM helps in effective utilization of enterprise resources. The enterprises shall purchase green input resources for environment friendly production process to produce eco friendly outputs.

3. Production Process and Competitive Advantage: GSCM helps the business houses in positioning the products differently in the minds of the target set of buyers. It will not only attract profitable customers for the organizations, but also bestow competitive edge over its rivals, thereby strengthening brand image.

4. Cost Reduction and Increased Efficiency: Effective utilization of GSCM may fetch reduction of transaction cost as well as promote recycling of raw materials.

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GREEN MARKETING 2.6 Stakeholders in Green Marketing:

They are all the people or groups whose lives or environment are affected by the project, but who receive no direct benefit from it. These can include the teams families, people made redundant by the changes introduced, people who buy the product and the local community. FRAMEWORK STAKEHOLDERS Identifying appropriate stakeholders Specifying the nature of their interests Measuring the stakeholder interest Predicting what each stakeholders future behavior will be to satisfy his/her stake Evaluating the impact of the expected behavior on the project teams latitude in managing the project politics. FOR PROPER IDENTIFICATION OF

SOURCE: www.Green marketing work.com

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3. PRESENT TRENDS IN GREEN MARKETING IN INDIA

A. Organizations Perceive Environmental marketing to be an Opportunity that can be used to achieve its objectives:
Firms have realized that consumers prefer products that do not harm the natural environment as also the human health. Firms marketing such green products are preferred over the others not doing so and thus develop a competitive advantage, simultaneously meeting their business objectives.

B. Organizations believe they have a moral obligation to be more socially responsible:

This is in keeping with the philosophy of CSR which has been successfully adopted by many business houses to improve their corporate image. Firms in this situation can take two approaches: Use the fact that they are environmentally responsible as a marketing tool. Become responsible without prompting this fact.

C. Governmental Bodies are forcing Firms to Become More Responsible:

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In most cases the government forces the firm to adopt policy which protects the interests of the consumers. It does so in following ways: Reduce production of harmful goods or by products Modify consumer and industrys use and /or consumption of harmful goods; or Ensure that all types of consumers have the ability to evaluate the environmental composition of goods

D. Competitors Environmental Activities Pressure Firms to change their Environmental Marketing Activities:
In order to get even with competitors claim to being environmentally friendly, firms change over to green marketing. Result is green marketing percolates entire industry.

E. Cost Factors Associated With Waste Disposal or Reductions in Material Usage Forces Firms to Modify their Behavior:
With cost cutting becoming part of the strategy of the firms it adopts green marketing in relation to these activities. It may pursue these as follows: A Firm develops a technology for reducing waste and sells it to other firms. A waste recycling or removal industry develops.

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GREEN MARKETING 3.1 Corporate Environmental Management, Strategy and

Practices Environmental Management

There are three categories of Environmental Management Crisis-oriented Cost-oriented, and Enlightened The firms with crisis-oriented management handle environmental conflicts on a fire-fighting basis. These firms have no environmental policy strategy for compliance with laws and regulations and have no separate environmental unit in the firm.

Five development stages of environmental management as given below:

The beginner who provides no protection from environmental risk The fire-fighter who provides minimal protection The concerned citizen who provides moderate protection The pragmatist who provides comprehensive protection The pro-activist who provides maximum protection

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GREEN MARKETING 3.2 GREEN HOUSE AS REDUCTION MARKET:

The emerging greenhouse gas reduction market can potentially catalyze projects with important local environmental, economic, and quality-of-life benefits. The Kyoto Protocols 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.

Companies that need to increase their emission allowance must buy credits from those who pollute less. The transfer of allowances is referred to as a trade. In effect, the buyer is paying a charge for polluting, while the seller is being rewarded for having reduced emissions by more than was needed.

Thus, in theory, those who can reduce emissions most cheaply will do so, achieving the pollution reduction at the lowest cost to society. There are active trading programs in several air pollutants. For greenhouse gases the largest is the European Union Emission Trading Scheme.

3.3 The New Green Revolution:

Global Warming is the phenomenon of increase in Earths temperature caused by burning of fossil fuels and other pollutants in the air. As per the predictions by IPCC (Intergovernmental Panel on Climate Change) it is predicted that the global temperature is likely to increase by 1.1 to 6.4 degrees Celsius between 1990 to 2100. The key causes of global warming are summarized below:

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Carbon dioxide emitted from the Power Plants, Cars, airplanes and other industries. Methane emitted from landfill, petrochemical factories and steel and fertilizer plants. Nitrogen dioxide emitted from waste combustion, agriculture water pollution and sewage. Other harmful gases emitted by industries, and manufacturing units, which are causing depletion of Earths ozone, layer. Deforestation is another major contributor towards global warming. The destruction of tropical forests is throwing millions of tons of carbon dioxide into the atmosphere. For a long time now the effect of mans industrialization and technological progress ha s quietly yet continuously eked away at the delicate balance of the planets atmosphere and ecosystem, but within the last 30 or so years the place of this damage has markedly accelerated. It is presently estimated that 700 tons of carbon dioxide are pumped into the earths atmosphere every second of the day. Carbon dioxide is the chief contributor to the greenhouse gases. It is these greenhouse gases, which cause global warming.

SOURCE: www.Green magazine.com

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4. Green Warming Proposed Solution

The solution to this problem lies in Going Green in our thoughts, behavior and actions. The consumers and corporations need to focus on clean and environment friendly products and services. To elaborate on the Green terminology: 1. Green Product is non-toxic and is made from recycled material. There is no absolute green product. However the products, which consume less energy, cause less pollution and are biodegradable, belong to this category. Thus Green is a relative term. 2. Green Service fulfills the philosophy of sustainable development, improving and maintain the quality of life for people without compromising the environment. 3. Green washing is the process of making products and services Green in all respects. To make products and services green the businesses need to focus on bringing the green in various aspects such as: Supply Chain Packaging Raw Material Product Innovations It is not enough just to develop a brand or a logo, or invest in an advertising campaign, and then position a product as Green before consumers.

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It is also important to understand how companies across the globe are innovating and creating Green products.

4.1 GREEN RAW MATERIAL:

This refers to using recycled material or using material, which does not have a negative impact on natural resources like resulting in problems such as deforestation and pollution. Example: Grid core Systems International demonstrated the use of Recycled Building Material. The company was looking for an alternative building material in-order to reduce the impact on environment. While researching they discovered space board, a new type of building panel developed by the Forest Products laboratory. Space board can be manufactured from various recycled or agricultural fibers, and due to a honeycomb the interior design is just as strong as and several times lighter than conventional fiberboard.

4.2 GREEN IN MANUFACTURING:

This focuses on using renewable energy for production and minimizing air and water pollution during the manufacturing process. Example: Energy Star is helping businesses and consumers save money and check pollution. Energy star has its own pre defined parameters and gadgets which conform to the energy efficiency standards. The businesses that join hands with energy star sign an MOU and upgrade their facility as per the requirement outlined by Energy Star. There are about 2,400 corporations, hospitals, schools and other organizations, which are energy star compliant in the US today.

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GREEN MARKETING 4.3 GREEN IN PRODUCT DEVELOPMENT:

This refers to either environment friendly or environment efficient products as demonstrated by the following examples. Example: Kodaks Recyclable Camera When Kodak created its first

disposable camera it also solved the waste disposal problem by initiating a camera take back scheme during picture processing. This not only reduced the waste disposable problem, it also saved Kodak the manufacturing costs for new cameras. This made it completely recycled camera.

4.4 GREEN BY USING ALTERNATIVE INGREDIENTS TO REDUCE HEALTH RISKS:

Example: AFM Safe coat and Safe choice Paints to meet the markets demand for non-toxic paints, the California based company invested in Research and Development and developed a full line of non-toxic coatings, paints, stains and adhesives.

4.5 GREEN IN SUPPLY CHAIN:

Example: McDonalds is often blamed for polluting the environment because much of their packaging finishes up as roadside waste. It must be remembered that it is the uncaring consumer who chooses to dispose of their waste in an inappropriate fashion. With the intent to cut costs and work on eco-friendly image and practices McDonalds tried to reduce the amount of material disposed by its stores. McDonalds asked the supplier to do away with the cartons for napkins. The

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supplier suggested a better way and came up with dimpling pattern on napkins, which enabled the supplier to pack 25% more napkins in one box and reduction in shipping cost accordingly. McDonalds also allied with Environment Defense Fund (EDF) and created a waste reduction plan.

4.6 GREEN IN PACKAGING:

Packaging is a key element of marketing mix for promoting Green washing. It can also be an effective tool to display the Green component of the product.

i.

Natural Package for a Natural Product:

When creating product materials, markets need to remember that a Green product is appealing to consumers for its benefits to the environment and for its roots in natural resources. There should be a consistent look for the product package, or materials that appear natural, not glossy or extravagant. Green consumers tend to appreciate consistence in package and product. They will appreciate the usage of recycled paper and other environment friendly materials. That will help manufacturers/suppliers gain customer loyalty and product credibility.

ii.

Third Party Certification Seal on Package:

In order to win consumer trust and for product credibility many companies go in for a third party certification. This helps build trust and acceptability by the consumer. A third party seal guarantees the consumer that the product fulfills its promise and is true to his claim. One such third party in the USA is the Green-e Program of the Center for Resource Solutions. Certification provides an independent

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Third-party review of the program similar to the ISO 9000 or CMMI Six Sigma level of certifications, which mat help build consumer confidence. Once a green product earns certification, they can publicize this achievement and promote their certification through the use of the Green-e logo on their marketing materials and website.

4.7 GREEN IN SERVICES:

With increased demand for value-based marketing, there is also growing demand of Green services. Global customers are not only interested in cost Cutting through outsourcing but are also looking for energy efficient IT operations. Example: ITC InfoTech is a good example to understand how to package the services Green ITC InfoTech is a Bangalore based independent Subsidiary of ITC Ltd. At corporate level ITC is working to establish itself as a carbon free company. The company is working on Triple Bottom Line i.e. social, economic and environmental capital. The company is involved in many community driven initiatives. It is one of the 10 companies globally and first one from India to start publishing sustainability report in compliance with G3 guidelines of Global Reporting Initiative. 36 Cigarette warehouses were converted to make ITC InfoTechs global development campus in the heart of Bangalore. The company has used recycled material and virtualization tools for optimizing energy usage in its data centers. It is also working on digital infrastructure to connect the rural farmers to the Internet using solar panels for power, so that the Indian farmers can get information on crop research and monitor weather trends. The company is using

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these as a service differentiator and positioning itself as Green service Provide. The corporate image of ITC Ltd. is further enhancing the True Green Image.

4.8 Green Strategy Formulation:

As in formulation of green strategy, a firm may evolve it from a SWOT analysis or Environmental Audit.

SWOT Analysis OF GREEN MARKETING

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STRENGTHS:

1. Marketers get access to new markets and gain an advantage over competitors that are not focusing on greenness. 2. Marketers can charge a premium on products that are seen as more ecoresponsible. 3. Organizations that adopt green marketing are perceived to be more socially responsible. WEAKNESS:

1. Most customers choose to satisfy their personal needs before caring for environment. 2. Overemphasizing greenness rather than customer needs can prove devastating for a product. 3. Many customers keep away from products labeled Green because they see such labeling as a marketing gimmick, and they may lose trust in an organization that suddenly claims to be green. OPPORTUNITIES:

1. Marketing to segment which are becoming more environmentally aware and concerned. These consumers are demanding products that conform to these new attitudes. 2. Organizations perceive green marketing to be a competitive advantage, relative to the competitors. Firms, therefore, strive to improve upon their societal awareness. 3. E.g. offering an environmental friendly product and saving resources, and relating them to internal strengths.

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EXTERNAL THREATS:

1. Uncertainty as to the environmental impact of present activities, including that is perceived to be less environmentally harmful. 2. Uncertainty as to which green marketing activities are acceptable from a government perspective. 3. The possibility of a backlash from consumers or government based on existing green marketing claims, threat one and two above may cause backlash to arise. E.g. competitors gain market shares with green products and increased environmental regulations).

SOURCE: www.Green warming.com

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5. THE FUTURE OF GREEN MARKETING

There are many lessons to be learned to be learned to avoid green marketing myopia, the short version of all this is that effective green marketing requires applying good marketing principles to make green products desirable for consumers. The question that remains, however, is, what is green marketings future? Business scholars have viewed it as a fringe topic, given that environmentalisms acceptance of limits and conservation does not mesh well with marketings traditional axioms of give customer what they want and sell as much as you can. Evidence indicates that successful green products have avoided green marketing myopia by following three important principles:

5.1 CONSUMER VALUE POSITIONING:

Design environmental products to perform as well as (or better than) alternatives. Promote and deliver the consumer desired value of environmental products and target relevant consumer market segments. Broaden mainstream appeal by bundling consumer desired value into environmental products.

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GREEN MARKETING 5.2 CALIBRATION OF CONSUMER KNOWLEDGE:

Educate consumers with marketing messages that connect environmental attributes with desired consumer value. Frame environmental product attributes as solutions for consumer needs. Create engaging and educational internet sites about environmental products desired consumer value.

5.3 CREDIBILITY OF PRODUCT CLAIMS:

Employ environmental product and consumer benefit claims that are specific and meaningful. Procure product endorsements or eco-certifications from trustworthy third parties and educate consumers about the meaning behind those endorsements and eco-certifications. Encourage consumer evangelism via consumers social and internet communication network with compelling, interesting and entertaining information about environmental products.

5.4 STRATEGIES FOR GREEN COMMUNICATION:

Make environmental messages consistent with the companys existing voice in the market place. Empower consumers to get involved to make a difference. Enlist cultural icons to tell the story. Show that environmental initiatives lead to better quality products. Be ready to experiment publicly, even if it doesnt always lead to success.

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Price environmentally preferable products comparable to conventional ones. Link environmental innovations to other benefits, like quality and durability.

SOURCE: www.Green at work mag.com

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6. Attributes of the Green Consumers

To take the advantage of the emerging green market, it is important to understand who green customers are and the factors influencing their purchasing decisions and behavior. Attributes of Environmentally Implication for Green Marketers

Conscious Consumers Target products to women who

generally buy on behalf of men and families. Will most likely be well educated, Use the influence of children to young adult women who have more encourage money to spend. parents to try green

products. The green consumers of the future are generally knowledgeable about should environmental be offered issues. They samples and

increments to try products. Will expect green products to function Effectively communicate assurance of as non-green products and wont pay quality-for example quality of

much extra or sacrifice quality for performances, look, feel, fit, comfort, greener products. durability.

Will not buy green products on the Like environmental attributes such as basis of environmental benefits alone. energy efficiency or toxic substance Products choice is still based on reduction with other benefits such as whether it meets their basic want or lower price, convenience, or quality of need. Environmental features are life improvements.

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added selling points.

Will be more likely to respond to Emphasize personal benefits by using product attribute that will personally terms such as safe, non-toxic, cost benefit them. effective rather than more generalized green messages such as biodegradable or ozone friendly. Will tolerate only minimal Making the use of product simple- e.g.

inconvenience in using green products minimize or eliminate refilling bottles. and dont want to go out of their way Select to buy them. mainstream distributors

wherever possible. Offer one-stop shopping and eye appealing displays.

Will be analytical, eager to learn, and Reinforce

product

benefits

with

can be cynical about corporate claims evidence of corporate performance and for green product unless they have improvements. independent verification. Educate consumers

about environmental issues and your efforts through a variety of means. Provide credible Use environmental labels in

endorsements.

compliance with government labeling guidelines, to convey precise, detailed information about your product and its packaging. Will not expect companies to have Communicate your steps towards

perfect green credentials, but will look sustainability and commitments to for a commitment to improve and improvement. evidence backed by facts. Seek feedback and

promote your efforts to respond to customer concerns.

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GREEN MARKETING 6.1 Green Marketing Strategies versus Conventional Marketing:

CONVENTIONAL MARKETING Consumers Consumers with lifestyles

GREEN MARKETING Human lives beings with

Products

Cradle-to-gave one size fits for Cradle-to all products

Cradle

flexible services Educational Values

Marketing and Selling oriented and benefits Communication Corporate Receptive, competitive, Short term

Independent, Proactive, Departmentalized, Interdependent, oriented profit cooperative, long term Holistic,

maximizing.

6.2 Environmentally Conscious Consumer Behavior:

Environmentally Conscious Behavior (ECCB) is consumer behavior based on some awareness of the environmental impacts associated with a product or service, and a desire to reduce those impacts. The term environmental consciousness does not have a standardized definition in the body of academic literature; the reason can be due to arousal of the term out of political and everyday language. Environmental consciousness is the desire to protect flora and fauna, a willingness to scrutinize the consequences of economic activity and a willingness to combine long-term with short-term planning.

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GREEN MARKETING
CONSUMER ENVIRONMENT INPUT
Social Stimuli, Marketers Efforts

INFORMATION PROCESSING
Exposure, Attention, Comprehension, New Knowledge and Belief, Integration

CONSTRUCTS
Values and Beliefs, Motivation, Attitude, Knowledge

MEDIATORS
Product Knowledge, Involvement, Habit, Cost, Opportunity, Availability, Convenience

OUTCOME
Attention, Product Comprehension, Purchase Avoidance

EXTERNAL FACTORS
Cultural Norms, Group Influence, Family Influence, Unexpected Circumstances

CONSUMER ENVIRONMENT CONSUMER ENVIRONMENT CONSUMER ENVIRONMENT 6.3 Green Buyers and Green Consumers: CONSUMER ENVIRONMENT Research about the identity and nature of green consumer has been the central character in the development of green marketing, as business attempt to understand and respond to external pressures to improve their environmental performance. Marketing practitioners and academics are attempting to identify and understand green consumers and their needs, and to develop market offerings that meet these needs.

36

GREEN MARKETING 6.4 SEGMENTATION OF GREEN CONSUMERS:

True-Blue Greens- The most environmentally active segment of the society. Greenback Greens- Those most willing to pay the highest premium for green products. Spouts- Fence-sitters who have embraced environmentalism more slowly. Grousers- Uninvolved or disinterested in environmental issues, who feel the issues are too big for them to solve. Apathetic- The least engaged group who believe that the environmental indifference is main stream.

6.5 Identify and Close the Green Gap:

Right now, gaps exist on both sides of the market, between where customers are today and the preferences that will help sustain a future market. There is also a gap, between todays products and green designs of tomorrow. Greening the market means closing the gaps. The focus on the market oriented mechanisms is also required along with R&D to close the gaps. These gaps cab be closed by innovatively addressing the following area:

a) Green product:
This includes identifying customers environmental needs, developing environmentally responsible green products like-products made from recycled goods, products which save water, energy, gasoline, money, etc.

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GREEN MARKETING
b) Green Value and lesser Price: It has been analyzed that most customers will only be prepared to pay a premium if there is a perception of additional product value. Environmentally responsible products are often less expensive when product life cycle costs are taken into consideration even though their purchase cost is high.

c) Customer Information: Idea of Green needs to be communicated to the customers through campaigns and advertisements.

d) Special and Green Place: The location must differentiate green marketers from competitors. This can be achieved by in-store promotions and visually appealing displays or using recycled materials to emphasize the environmental and other benefits. e) Green promotion Aided by ICT: Smart green marketers will be able to reinforce environmental credibility by using sustainable marketing and communication tools and practices. E-marketing is rapidly replacing more traditional marketing methods. For example, many companies are providing electronic statements by e-mail.

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GREEN MARKETING

Greening the Market Means Closing the Gaps

Demand

Supply
Product Plans

Consumer Preference

Future Market

Environmental Values

Green Design

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GREEN MARKETING

6.8 Identify and Target the Green Consumer:

According to David Wheeler, the green consumers are distributed somehow like this: Green Consumer, who no matter what will only buy the green product. Green Activists that may not be able or willing to pay more, or to travel the distance to the specialist store where the offered product is, but try to promote the product and try to buy it any time they can, when the budget and the opportunity allow them. Latent Greens, who are willing to pay more for the product if the properties of the product, are same as of the others.

Green Activists 10%

Green Consumers 27%

Inactive 23%

Latent Green 40%

Fig: Types of Green Consumers

Thus to take the advantage of the emerging green market, a) It is important to understand who green consumers are and the factors influencing their purchasing decisions and behavior.

40

GREEN MARKETING
b) Target products to women who generally buy on behalf of men and families.

c) Use the influence of children (green consumers of the future) to encourage parents to try green products.

d) Offer samples and incentives to try products, effectively communicate assurance of quality-for example quality of performance, look, feel, fit, comfort, durability, etc.

e) Linking environmental attributes (energy efficiency or toxic substance reduction) with other benefits such as lower price, convenience or quality of life improvements, emphasis on personal benefits by using terms such as safe, non-toxic, cost effective, rather than biodegradable or ozone friendly, making use of the product simple- for example, minimize or eliminate refilling bottles, select mainstream distributors where possible, offer one-stop shopping and eye-appealing displays, reinforce product benefits with evidence of corporate environmental performance and improvements.

SOURCE: www.Green marketing strategies.com

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GREEN MARKETING

7. STRATEGIES TO BE IMPLEMENTED IN GREEN MARKETING

7.1

STRATEGIES OF GREEN MARKETIN ARE:

I.

PRODUCT DIFFERENTIATION:

Organizations are putting continuous efforts to differentiate their products and services using green marketing practice. In a wide range of markets including retailing etc companies have used eco performance to differentiate and to compete. Products with poor eco performance can become targets for new substitution, as a result of this many organizations are coming up with greener ideas to differentiate their products from competitors.

II.

DESIGNING BIO-DEGRADABLE PACKAGING:

It is seen that promotion of green products strongly influences the consumers buying decisions. It is one of the most important factors of product attractiveness. Thus it has been indicated that bio-degradable packaging will affect in a strong and moderate way respectively on their buying decisions. As a marketing strategy the companies should modify the product packaging by using only the recycle as well as handmade paper in packaging. Instead of being more mechanized the companies must find creative ways reusing the waste products which are harmful to the environment.

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GREEN MARKETING

III.

PRODUCT STRATEGY:

In this strategy marketers can identify customers environmental needs and develop products to address this issue, produce more environmentally responsible packages and insure that products meet or exceed the quality expectation of customers. In addition to that marketer can charge higher price with highlighting eco-friendliness of the products.

IV.

DISTRIBUTION STRATEGY:

In case of this strategy obtaining dealer support to green marketing practice is essential. The location must differentiate from competitors and it can be achieved by in-store promotions and displays by using recycle materials to emphasize the environmental and other benefits.Even though distribution has no big involvement in green marketing, few consumers are willing to get the services from places and distribution channels which are not cause to environmental pollution.

V.

LIFE-CYCLE ANALYSIS:

Brands which aspire to be sustainable must get their house in order before they start planning any green marketing initiatives. The best brands are performing life cycle analysis- complex assessments which provide critical data on social, environmental and economic impact of products through the supply chain production process and after the purchase. Life cycle analysis tells a brand just how far it needs to go before it claims to be sustainable.

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GREEN MARKETING

VI.

INCENTIVES AND STRUCTURAL FACTORS:

Commercialization programs and incentives help get new technologies introduced examples include fleet programs to cultivate strategic niche markets and by providing financial incentives such as the advanced vehicle tax credit proposal in case of green vehicle purchase. Consumers can be motivated by incentives and awards to: Curtail reduce the impact on the environment by modifying extant living patterns. Maintain keep equipment in good working order. Be efficient undertake structural changes such as buying environmental friendly equipment.

SOURCE: www.Greenatworkmag.com

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GREEN MARKETING

8. RESEARCH METHDOLOGY

Research Methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. It is necessary for the researcher to know not only the research methods/techniques but also the methodology. Researchers not only need to know how to develop certain indices or tests, how to calculate the mean, the mode, the median or the standard deviation, how to apply particular research techniques, but they also need to know which of these methods or techniques, are relevant and which are not, and what would they mean and indicate and why. Researchers also need to understand the assumptions underlying various techniques and they need to know the criteria by which they can decide that certain techniques and procedures will be applicable to certain problems and others will not.

8.1 PRIMARY DATA:

The primary data are those which are collected afresh and for the first time, and thus happen to be original in character. We collect primary data during the course of doing experiments in an experimental research but in case we do research of the descriptive type and performs surveys. Here the Primary data will be collected by means of preparing a questionnaire and getting it filled by a

45

GREEN MARKETING
large sample space. These questionnaires will help in drawing conclusions about the case.

8.2 SECONDARY DATA:

Secondary data means data that are already available i.e. they refer to the data which have already been collected and analyzed by someone else. When the researcher utilizes secondary data then he has to look into various sources from where he can obtain them. In this case he is certainly not confronted with the problems that are usually associated with the collection of original data. Secondary data may either be published data or unpublished data.

8.3 DATA ANALYSIS & INTERPRETATION:

RESULTS: According to the analysis of questionnaire most of the respondents were not aware about green marketing but after reading the questionnaire they realized what it is all about. 1. Are you aware of the term green marketing?

a. Yes

b. No

36 No 14 Yes

10

15

20

25

30

35

40

The above bar graph indicates that out of 50, 36 respondents are not familiar with

46

GREEN MARKETING
the term Green Marketing. Many of them have a misconception with the term Green Marketing.

2. Have you heard of any campaign related to Green Marketing?

a. Yes

b. No

35 30 25 20 15 10 5 0 19

32

Yes No

From this bar chart we can say that most of the respondents are not aware of any campaign related to green marketing.

3. Have you been part of any such campaign? a. Yes b. No

47 50 40 30 20 10 0 3 Yes No

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GREEN MARKETING
We can see here that out of 50 respondents only 3 has been part of such type of campaign.

4. Do you consider the environmental aspects of the products before buying them? a. Yes b. No c. Sometimes

yes 24% Sometimes 48% No 28%

The above chart indicates that only 48% i .e. the majority of respondents consider the Environmental aspect some times. And, only 24% consider the environmental aspect of the product while buying it.

5. Do you think that Green Marketing and advertising are good sources of information about green products and services? a. Yes b. No
No 6%

Yes 94%

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GREEN MARKETING

From this pie chart, it indicates that 94% respondents think that green marketing and advertising are good sources of information about green products and services. 6. Do you think that Green Marketing activities are good at addressing environmental issues?

a. Yes
50 40 30 20 10 0

b. No
45

Yes

No

We can see most of the respondents feel that Green marketing activities are good at addressing environmental issues. 7. Do you think Green Marketing activities results in better products?

a. Yes

b. No

0%

10%

20%

30%

40%

50% Yes No

60%

70%

80%

90%

100%

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GREEN MARKETING
In this above bar chart it is clearly indicates that 82% of respondents think this strategy results in better products while 18% have different opinion.

.8. Do you think that Green Marketing strengthen companys image in the mind of consumers? a. Yes
40 30 20 10 0 Yes 13 No

b. No
37

The above chart indicates, majority of the respondents, i.e. 37 respondents feel that it strengthen companys image in the mind of consumers. 9. Do you think that companies that focus on environmental concerns persuade consumers to buy products? a. Yes b. No

No 42% Yes 58%

Most of the respondents feel that it helps to persuade consumers to buy products.

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GREEN MARKETING
10. Do you think that by implementing green marketing strategy the

companies are able to gain competitive advantage over others? a. Strongly agree
25 20 15 10 5 0 strongly agree agree disagree strongly disagree

b. agree

c. disagree

d. strongly disagree

Most of them agree that by implementing green marketing strategy the companies are able to gain competitive advantage over others. 11. Do you think sometimes companies are trying to cheat customers in the name of green products? a. Yes b. No

40 30 20 10 0

33 Yes 17 No

Here, we can say that most of the respondents have negative opinion. They feel that sometimes companies are trying to cheat the customers in the name of green products.
SOURCE: www.Green marketing mag.com

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GREEN MARKETING CONCLUSION

Green marketing do not strengthen companys image in the mind of respondents that is very much clear from trustworthiness of green claims and certainly it do not have positive image of the organization in the minds of the respondents. It was observed that the respondents who were more proactive with the environmental behavior have positive attitude towards green advertisements. It means green advertisements have positive impact on only those who are already practicing it. Rest of the respondents who were passive had very less impact on their buying behavior. This is the crucial aspect that needs to be changed so that they can have positive impact on all the target market which will have an effect on their buying behavior. The result of the study indicate that the advertisements not reflected the companies level of greenness and the proposition that green advertising reflects environmentally sound strategic and structural level decisions. Green marketing covers more than a firm's marketing claims. While firms must bear much of the responsibility for environmental degradation, the responsibility should not be theirs alone. Ultimately green marketing requires that consumers want a cleaner environment and are willing to "pay" for it, possibly through higher priced goods, modified individual lifestyles, or even governmental intervention. Until this occurs it will be difficult for firms alone to lead the green marketing revolution. Having said this, it must not be forgotten that the industrial buyer also has the ability to pressure suppliers to modify their activities. Thus an Environmental committed organization may not only produce goods that have

52

GREEN MARKETING
reduced their detrimental impact on the environment, they may also be able to pressure their suppliers to behave in a more environmentally "responsible" fashion. Green marketing covers more than a firm's marketing claims. While firms must bear much of the responsibility for environmental degradation, ultimately it is consumers who demand goods, and thus create environmental problems. One example of this is where McDonald's is often blamed for polluting the environment because much of their packaging finishes up as roadside waste while firms can have a great impact on the natural environment, the responsibility should not be theirs alone Thus an environmental committed organization may not only produce goods that have reduced their detrimental impact on the environment, they may also be able to pressure their suppliers to behave in a more environmentally "responsible" fashion. Final consumers and industrial buyers also have the ability to pressure organizations to integrate the environment into their corporate culture and thus ensure all organizations minimize the detrimental environmental impact of their activities.

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GREEN MARKETING

REFERENCE
Books:
Chopra, S. Lakshmi (2007), "Turning Over a New Leaf", Indian Management, Vol-64, April-2007 Othman, J.A. et al, "Avoiding Green Marketing Myopia", Environment, Vol-48, June-2006 Philip Kotler & G. Armstrong .Principles of marketing, Edition- 12, March 9, 2007 Richa Agrawal, Green Marketing: An Emerging Trend (PMR, Vol.5, April 2000)

Magazines:
Green at Work Magazine : Edition - March/April 2006 by Bruce Piasecki. Article - Future of Green Marketing Edition - Jan/Feb 2007 by Rob Bradley Article - Green Warming Solutions

Websites:
http://www.greenmarketing.com/blog/ http://greenmarketing.net/stratergic.html http://epa.qld.gov.au/sustainable_ industries http://wmin.ac.uk/marketing research/marketing/greenmix.html

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GREEN MARKETING

ANNEXURE

GREEN MARKETING & ITS IMPACT ON CONSUMERS

NAME.. ADDRESS

1. Are you aware of the term green marketing? a. Yes b. No

2. Have you heard of any campaign related to Green Marketing? a. Yes b. No

3. Have you been part of any such campaign? a. Yes b. No

4. Do you consider the environmental aspects of the products before buying them? a. Yes b. No c. Sometimes

5. Do you think that Green Marketing activities are good at addressing environmental issue? a. Yes b. No

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GREEN MARKETING
6. Do you think that Green Marketing activities are good at addressing environmental issues? a. Yes b. No

6. Do you think Green Marketing activities results in better products? a. Yes b. No

8. Do you think that Green Marketing strengthen companys image in the mind of consumers? a. Yes b. No

9. Do you think that companies that focus on environmental concerns persuade consumers to buy products? a. Yes b. No

10. Do you think that by implementing green marketing strategy the companies are able to gain competitive advantage over others? a. Strongly agree b. agree c. disagree d. strongly disagree

11. Do you think sometimes companies are trying to cheat customers in the name of green products? a. Yes b. No

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GREEN MARKETING

57