Table of Contents

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Executive Summary Definition

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History of Green Marketing

Challenges

What Makes Marketing Green?

Targeting Green Consumers

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Green Marketing Cases

Examples of Green Marketing in Malaysia

Case Study in Malaysia and Factor Analysis

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Summary

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References Executive Summary

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Green Marketing, Sustainable Marketing, Environmental Marketing and Ecological Marketing carry a same definition of it terms which is related to the entire process of the company products such as methods of processing, packaging and distribution. Nowadays, an environmental issue has become a debate and most companies take this opportunity to engage with their customers and cater to a new target market. As we know, many industries has taken one step ahead by promoting green marketing concept to the customers and at the same time to create awareness to the importance of being eco-friendly. In fact the green marketing is actually a promotion of environmentally safe or beneficial products and services such as packages using recycled paper, phosphate free detergents, refill containers and bottles using less plastic, no plastic bag on Saturday Campaign, e-statement bills, hybrid cars, eco-friendly shopping mall and many other methods use for that purposes. The awareness of green marketing begin since 1980s in Europe when certain products were found to be harmful to the earths atmosphere and it has been growing steadily ever since. The development of eco-logically safer products, recyclable and bio-degradable packaging, energy efficient operations and better pollution controls are all aspects of green marketing. In Malaysia, big companies are taking the initiatives to promote and create the awareness of green marketing to the public through their Corporate Social Responsibility activities or products and services offering. In this topic we would like to highlight the green marketing concept, the importance and how it can save the environment in the long run. As we know, Malaysia consumers nowadays have moved to another level of consumer rights awareness and how it can reflect the level of its concern for the community. From a business perspective, it is a new target market which can be captured and it has proven since from the beginning where sales has increased in certain industries such as Philips light bulb, Toyota hybrid car manufacturing and health products. Due to the fact that green marketing has create a new segment in marketing strategy on top of the 4Ps principles, the green marketing approaches has widely spread in different types of products and services which will benefit the consumer and the planet.
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Definition
Green marketing refers to the process of selling products and or services based on their environmental benefits. Such a product or service may be environmentally friendly in it or produced and or packaged in an environmentally friendly way. Companies involved in green marketing make the decisions relating to the entire process of the companys products such as methods of processing, packaging and distribution. They seek to go above and beyond traditional marketing by promoting environmental core values in the hope that consumers will associate these values with their company or brand. Engaging in these sustainable activities can lead to creating a new product line that caters to a new market segment. Promotional activities aimed at taking advantage of the changing consumer attitudes toward a brand. These changes are increasingly being influenced by a firms policies and practices that effect the quality of the environment. It is also promoting the environmentally safe or beneficial products to the consumers and consequently new types of products were created that would cause less damage to the environment. There are many environmental issues impacted by the production of goods and rendering of services, and therefore there are also many ways a company can market their eco-friendly offerings. Green marketing can appeal to a wide variety of these issues: an item can save water, reduce greenhouse gas emissions, cut toxic pollution, clean indoor air, and/or be easily recyclable. When put side by side with the competition, the more environmental marketing claims that the product or service can make, the more likely it is the consumer will select it, provided the price is competitive than the alternative.

History of Green Marketing

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. The Corporate Social Responsibility (CSR) Reports started with the ice cream seller Ben & Jerry's where the financial report was supplemented by a greater view on the company's environmental impact. In 1987 a document prepared by the World Commission on Environment and Development defined sustainable development as meeting the needs of the present without compromising the ability of future generations to meet their own need, this became known as the Brundtland Report and was another step towards widespread thinking on sustainability in everyday activity. Two tangible milestones for wave 1 of green marketing came in the form of published books, both of which were called Green Marketing. They were by Ken Peattie (1992) in the United Kingdom and by Jacquelyn Ottman (1993) in the United States of America. According to Jacquelyn Ottman, (author of "The New Rules of Green Marketing: Strategies, Tools, and Inspiration for Sustainable Branding" (Greenleaf Publishing [9] and Berrett-Koehler Publishers, February 2011)) from an organizational standpoint, environmental considerations should be integrated into all aspects of marketing new product development and communications and all points in between. The holistic nature of green also suggests that besides suppliers and retailers new stakeholders be enlisted, including educators, members of the community, regulators, and NGOs. Environmental issues should be balanced with primary customer needs. The past decade has shown that harnessing consumer power to effect positive environmental change is far easier said than done. The so-called "green consumer" movements in the U.S. and other countries have struggled to reach critical mass and to remain in the forefront of shoppers' minds. While public opinion polls taken since the late 1980s have shown consistently that a significant percentage of consumers in the U.S. and elsewhere profess a strong willingness to favor environmentally conscious products and companies, consumers' efforts to do so in real life have remained sketchy at best.

Challenges
One of green marketing's challenges is the lack of standards or public consensus about what constitutes "green," according to Joel Makower, a writer on green marketing. In
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essence, there is no definition of "how good is good enough" when it comes to a product or company making green marketing claims. This lack of consensusby consumers, marketers, activists, regulators, and influential peoplehas slowed the growth of green products, says Makower, because companies are often reluctant to promote their green attributes, and consumers are often skeptical about claims. Despite these challenges, green marketing has continued to gain adherents, particularly in light of growing global concern about climate change. This concern has led more companies to advertise their commitment to reduce their climate impacts, and the effect this is having on their products and services. Would it be fair to say that most people buy with some degree of morality in mind, taking social or environmental issues into consideration as they select from a variety of options on offer? Whether driven by a desire to save energy with more efficient products or looking for coffee thats grown more sustainably, consumers can be swayed by green marketing schemes that set one product apart from the other based on environmental benefits. Consider this: in a study by Accenture that polled people from Europe, Asia, and North America, nearly nine out of 10 consumers were willing to pay more for green products (those that reduced greenhouse gas emissions in particular). While the percentage of people willing to pay a premium for eco-friendly products will go up and down as times change. Environmental disasters increase awareness and interest in green products, for instance, while prosperous economic times often dull interest in general, the market for green products and services is growing every year as people become more aware of the impact of their consumer choices. That said, environmental marketing is a tricky business, especially given the relative skepticism most people have toward green branding claims. Greenwashing abounds in the world of eco-friendly products and services, and with so many companies failing to live up to their green business promises, consumers are understandably wary of dubious branding.

What Makes Marketing Green?

Business cant really market the product as green without managing how the company functions with respect to the environment. Green marketing can take many forms. For instance, companies may market eco-friendly aspects such as:

Operational sustainability: Service companies and manufacturers can improve operational sustainability by reducing everyday energy and water consumption, minimizing pollution, using greener materials and processes, and properly managing waste.

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 ecofriendly manner and will be made to be easily recycled or composted.

Sustainable marketing: We also want to ensure that the actual marketing system has been use is green, which is really distinct from the 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). We could also investigate tools like green web hosting, carbon offsets for any marketing emissions that 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 supporters as part of a green marketing campaign.

Targeting Green Consumers

Knowing the target market is certainly a necessity if we want to have an effective environmental marketing campaign. In general, there will be at least three levels of green consumers in any industry. Deep green consumers are serious about their choices and will be looking for hard proof of the eco-friendliness which we claim. This group requires verifiable proof that a company providing products and services that will truly benefit the environment. The second group includes people genuinely interested in helping the planet, but not as current on the biggest environmental issues. This group may also be less willing to pay a premium for the green offerings. The third group includes people who are either apathetic or antagonistic toward green marketing efforts. Regardless of the target market, an eco marketing campaign should have several important factors in order to ensure long-term sustainability in the green space:

The green claims should be genuine and verifiable. Above all, be transparent and explicit about any environmental claims company make. Informed consumers are loyal consumers, so educate the consumers about the benefits of the product or service for the environment.

Make it possible for customers to give back to the environment by choosing the service or product.

Below : Green Marketing Activities at the 3 Levels (Polonsky & Rosenberger, 2001)

Green Marketing Cases

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Phillips's "Marathon" CFL lightbulb

Philips Lighting's first shot at marketing a standalone compact fluorescent light (CFL) bulb was Earth Light, at $15 each versus 75 cents for incandescent bulbs. The product had difficulty climbing out of its deep green niche. The company re-launched the product as "Marathon," underscoring its new "super long life" positioning and promise of saving $26 in energy costs over its five-year lifetime. Finally, with the U.S. EPA's Energy Star label to add credibility as well as new sensitivity to rising utility costs and electricity shortages, sales climbed 12 percent in an otherwise flat market.

Car Pool
Car-sharing services address the longer-term solutions to consumer needs for better fuel savings and fewer traffic tie-ups and parking nightmares, to complement the environmental benefit of more open space and reduction of greenhouse gases. They may be thought of as a "time-sharing" system for cars. Consumers who drive less than 7,500 miles a year and do not need a car for work can save thousands of dollars annually.

Electronics sector
The consumer electronics sector provides room for using green marketing to attract new customers. One example of this is HP's promise to cut its global energy use 20 percent by the year 2010. To accomplish this reduction below 2005 levels, The Hewlett-Packard Company announced plans to deliver energy-efficient products and services and institute energyefficient operating practices in its facilities worldwide.

Products & Services

Now companies are offering more eco-friendly alternatives for their customers. Recycled products for example, are one of the most popular alternatives that can benefit the environment. These benefits include sustainable forestry, clean air, energy efficiency, water conservation, and a healthy office. One example, is the E-commerce business and office supply company Shoplet which offers a web tool that allows you to replace similar items in your shopping cart with greener products.

Examples of Green Marketing Campaigns In Malaysia

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Malaysian government has made strong commitments to strengthen sustainable development. In a country where sustainable economy growth depends on careful protection of environment, existence the Ministry of Energy, Green Technology and Water (KeTTHA) can help to improve Malaysians environmental performance. This ministry promotes green technology and eco-friendly products and services to grow sustainable economy. Besides increasing the public knowledge about going green it also encourages and motivates public to perform green behaviors by consuming the resources efficiently. In 2011, government has started No Plastic Bag Day campaign on Saturdays for the major grocery retailers. All the hypermarkets, supermarkets and petrol station will practice No Plastic Bag Day and if consumers ask for it, that would add 20 cent on plastic shopping bags and direct the fund raised to education program publicizing the environmental costs and impact of plastic bag. (New Straits Times, 2011). In October 2010, government announced to grant full excise duty exemptions on Hybrid cars (Eugene Mahalingam, 2011). Hybrid car can help to improve the environment because oil is a limited resource that not only has to be refined from the environment but it also creates carbon emissions when burned. In 2 September 2008, Canon marketing Malaysia launched goes green campaign to create awareness on environmental issues. In 2011, Metrojaya department store has launched go green campaign which has been done by highlighting environmental friendly products in the store. HSBC Bank Malaysia Berhad had launched Green Campaign for its commercial banking customers in the banks efforts to reduce paper usage amongst its customers by at least 90 percent (Malaysia SME, 2009).

Case Study of Green Marketing in Malaysia & Factor Analysis 3M, Canon, Monark and The Body Shop
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3M stressing on the prevention of pollution from the source rather than removing it (prevention is better is better than cure concept). Canon Marketing highlighted its Clean Earth Campaign which emphasise the recycling of cartridges rather than allowing those used cartridges to end up in landfills and pollute the environment, Monark in contrast emphasised the recycling of bottles and also ensures that their manufacturing processes are green in order to control pollution and reduce waste. Rampai Niaga or more commonly known as The Body Shop differentiated itself from its competitors by focusing on cruelty-free toiletries and cosmetic products (products that are not tested on animals) All the four companies have long realised the importance of green marketing and have since incorporated the green values into their operations. They are aware of the environmental issues and have long held the idea of greening their businesses in order to attain competitive advantage. Factor analysis; among the customers, the most significant factor related to the Green issue is the companies attitude. It means companies are offering more education and information to facilitate and promote new values and behaviours of being green was identified as the most important factor. The second factor is the product characteristics which a survey has found that consumers doesnt necessarily buy a product just because it is green and its indicated that the green image of the product was not sufficient to influence consumers purchase decision. The third factor identified was Environmentally friendly and most green products in the market are not as environmentally friendly as they pollute the environment one way or another. Last but not least is the consumers attitude, consumers prefers to buy non-green products because they were not really concerned about the implications of the product to the environment, or the product was better in terms of its characteristics as compared to the green one

Summary
The concept of green is still very new to Malaysian people although many green campaigns have been carried out for quite sometimes. The market for green products in

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Malaysia is at the infancy stage. There is only a little knowledge about the consumers green consumption pattern in Malaysia. This success is mainly due to the increasing awareness and popularity with health consciousness, food safety, environmental issues and animal welfare. However, there is need to determine the extent to which Malaysian consumers are actually aware of green concept and the underlying advantages come along with this concept. Marketers in green industry should know the culture and lifestyle of the target consumers, for example where they do their shopping, what food products they most prefer to buy and how they get the information about food safety, animal welfare issues, health and environmental issues. This knowledge is important to identify the local marketing of green products and it can also be a guide for the private sector by providing accurate information on target consumers. When consumers consider purchasing green product, they need to evaluate what benefit they will receive in return. As recommendation, to increase the perception and attitude of green concept, government or institutes can carry out effective product awareness program in exhibitions, trade shows, campaign and seminar to introduce green concept to the markets. Frequency campaign or seminar can help to establish positive perception of consumers towards green concept. Private sectors also should play an important role in helping the government by following the rules and regulations of producing, processing and manufacturing the food products. The government has to control the products which concern about green as a solution to develop food products at international level. The food producers, processors and manufacturers should have enough knowledge and information about how to produce or process green products by following the rules and regulations of Malaysia and international norms. Consumers also should be aware and understand the importance of green product and how the green concept information can affect their future purchasing. References 1. http.www.articlebase.com 2. http.www.internationalconference.com.my 3. http.www.greenmarketing.com
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4. http.www.environmentalleader.com/category/green-marketing/ 5. http.www.eurojournals.com 6. http.www.krepublishers.com

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