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GREEN MARKETING: WAY TO GREEN

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 2nd International Conference on Marketing

[13]

GREEN MARKETING: WAY TO GREEN ECONOMY

Dr. Veena Tewari Nandi

Majan College, Univeristy College, Muscat
veenatewari@yahoo.com

ABSTRACT

I am writing this as I believe that all human beings want a better future for themselves and their
children. Further I believe that the dream of creating a global green economy is alive within
everyone. We as professionals believe that the goal of a world powered entirely by the zero emissions
energy sources of the future is within reach — and that each of us has the power within to help make
this universal dream come true. When I quoted, ―be the change‖ that‘s what I mean. Green economy
includes green energy generation based on renewable energy to substitute for fossil fuels and energy
conservation for efficient energy use.A green economy is part of the broader concept of sustainable
development but does not replace it, it simply offers a bridge towards development that is sustainable.
We know that our planet is under unprecedented stress at the moment and that the patterns of
production and consumption that we have been using are no longer sustainable. To maintain the
levels which we have at present we would need another earth! Efforts have been made to reverse
trends that have near depleted the earth‘s resources, but it may already be too late and a way forward
is not clear. The Rio+20 has given a sense of action, implementation and at least a roadmap for
future direction. In the past market failed in terms of related products to environmental and climate
protection because of external costs, high future commercial rates and associated high initial costs
for research, development. Marketing of green energy sources and green products prevents firms
from being voluntarily interested in reducing environment-unfriendly activities, the green economy
may need government subsidies as market incentives to motivate firms to invest and produce green
products and services. This paper will attempt 1) to introduce the terms and concepts of green
marketing; 2) briefly discuss why going green is important; 3) examine some of the reason that
organizations are adopting a green marketing philosophy; 4) mention some of the problems with
green marketing and 5) will also examine how green marketing can be helpful for green economics.

Key Words: Communities, Ecological, Impact, Non-human, Strategies

INTRODUCTION economy, a traditional ―black‖ energy

The Green Economy can be defined as a
sustainable economy and society with zero
carbon emissions and a one-planet footprint
where all energy is derived from renewable
resources which are naturally replenished. A
green economy rigorously applies the triple
bottom line of people, planet and profits across
all corporations at the microeconomic level
and throughout the entire economy at the
macroeconomic level. In contrast to a green
economy is based on carbon-intensive fossil
fuels such as coal and petroleum. By
definition, a low-carbon economy is distinct
from a green economy because it still
generates carbon emissions.
A green economy exhibits the following
characteristics:
 An energy infrastructure with zero
carbon emissions that is powered 100
percent by renewable energy — made

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possible through a combination of
proven, renewable energy
technologies; breakthrough cleantech
solutions; as well as enabling
regulation and carbon markets.
 The water, waste and wastewater
infrastructure is based on long-term
sustainability.
 The preservation and protection of the
world‘s ecosystems, biological
diversity and forests in partnership
with indigenous peoples and all
relevant stakeholders through the
creation of sustainable governance
models, markets and business models
for delivering, maintaining and paying
for ecosystem services.
 sustained and successful adaption to
climate change at a local, regional and
global level.
 The green economy is comprised of
the 25 industries listed below (in
alphabetical order):
1. Biofuels
2. Biomass
3. Carbon capture and storage
4. Carbon markets and renewable
energy credits
5. Climate change adaptation services
6. Distributed generation
7. Ecosystem services
8. Energy efficiency, recycling,
conservation, software and controls
9. Energy storage, batteries and fuel
cells
10. Geothermal energy
11. Green design
12. Green IT
13. Green buildings, materials and
construction products
14. Green transportation technologies
and green vehicles
15. Hydropower
16. Ocean power
17. REDD
18. Smart grid
19. Solar energy
20. Sustainable and organic
agriculture, food and products
21. Waste management
22. Wastewater management
23. Waste-to-energy
24. Water and water technologies
25. Wind energy
By definition, coal and petroleum are not a
part of a green economy due to their high
carbon emissions. Although nuclear energy
generates relatively low carbon emissions on a
lifecycle basis it is excluded from a green
economy due to its potential for long-term
adverse environmental impacts.
GREEN ECONOMY AND ITS VARIOUS
DIMENSIONS:
1) Sector #1: Renewable Energy: Renewable
energy needs to come online in order to allow
for the phase-out of traditional sources of
energy, such as oil, natural gas, coal, and
nuclear power. The renewable energy green
economy sector includes cleantech
developments such as solar electric and solar
thermal, wind, geothermal, biomass, batteries
and energy storage, and more.
2) Sector #2: Transportation: Transportation
contributes a huge quantity of greenhouse
gases to the environment, making it a primary
concern in the fight against climate change.
The infrastructure for conventional vehicles
also has a big environmental impact on our
societies. The transportation sector therefore
needs to be transformed by introducing much
more energy efficient vehicles and fuels and
batteries, encouraging the use of alternative
forms of transportation such as mass transit
and freight rail, and developing an
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infrastructure that has less of a footprint on the
planet.
3) Sector #3: Energy Efficiency: Studies
have shown that inefficiencies in the electric
grid, conventional buildings, and existing
vehicles contribute significantly to climate
change. Simple, widespread upgrades to all of
these systems would require a relatively small
investment for significant environmental
benefits, while creating millions of jobs. This
green economy sector covers things such as
the smart grid, energy efficient appliances and
electronics, better building technologies, and
more.
4) Sector #4: Green Construction: From the
materials used to the energy consumed to the
waste produced, the existing building
construction sector has an impact on virtually
every ecological system. Yet there are
tremendous opportunities to achieve
sustainability in green construction, whether
it‘s for existing or new building projects. In
this green economy sector, you‘ll find
businesses that do retrofitting of existing
buildings, building of new buildings, and
research into new construction technologies.
5) Sector #5: Energy Trading: Increasingly,
governments and private entities are
recognizing the risks and costs associated with
energy and climate change, and in response
are developing energy trading systems to
encourage energy efficiency and the growth of
the renewable energy sector. Given that energy
trading involves the creation and exchange of
economic commodities, this green economy
focuses on financial services.
6) Sector #6: Carbon Capture and Storage:
Climate change is largely caused by the
excessive addition of greenhouse gases to our
planet‘s atmosphere. Technologies that take
those greenhouse gases and find ways to store
and sequester them are included in the carbon
capture and storage sector of the green
economy.
7) Sector #7: Recycling and Waste
Reduction: Waste is essentially a misused
resource. By finding ways to turn trash into
viable resources that can be transformed into
useful products and/or energy, the recycling
and waste reduction green economy sector
helps to limit the use of virgin resources, save
energy, and reduce pollution in the
environment.
8) Sector #8: Environmental Protection:
Many industrial and consumer-related
activities result in environmental destruction –
whether it‘s pollution, climate change, or
ecological degradation. Those working in the
green economy sector of environmental
protection are focused on preventing
degradation and restoring areas that have been
destroyed or damaged.
9) Sector #9: Agriculture and Forestry: The
planet‘s soil, forests, wild spaces, and other
ecological systems are sensitive the human
activities. Working in agriculture and forestry
involves finding sustainable, efficient ways to
use land and other natural resources so that
these systems are enhanced and left viable for
future generations.
10) Sector #10: Water Management: Water
is one of the most important resources of our
time, and will likely prove to be the subject of
future wars as existing resources dwindle and
become polluted. Sustainable water use, reuse,
and restoration is required at every level to
prevent significant destruction related to water
restrictions.
11) Sector #11: Research, Design, and
Consulting Services: Professionals are
required in every single one of the green
economy sectors already mentioned.
Scientists, engineers, and many other
professions are needed to develop the next best
technologies, systems, and designs to ensure a
sustainable future. In this sector, we see cradle
to cradle marketing consultants, green
architects, zero waste manufacturing
consultants, and more.
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12) Sector #12: Regulatory Administration:
Many of the green economy sectors already
covered require governmental input and
regulation, including carbon trading,
agriculture and forestry, environmental
protection, recycling and waste management,
and many others. Increasingly this sector will
grow as more professionals are needed to
navigate complex but necessary government
intervention.
13) Sector #13: Consumer Products: Small
businesses and large enterprises alike are
designing products with sustainability
attributes in mind. This includes consumer
goods that are organic, biodegradable, energy
efficient, recycled, natural, and fair trade.
According to the 2011 Ethical Consumerism
Report, expenditure on green goods and
services in the UK was valued at £46.8 billion
(USD$74.6 billion) growing 18% over the
previous 2 years, in spite of the economic
downturn.
Generally the individual economies are the
key to global transformation. They will have to
start individually.
INCLUSION OF MARKETING IN TO
ECONOMICS
According to scientists, the world is moving
towards an environmental turmoil. The only
way to save our planet is to go green on a full
swing as quickly as possible. For this cause,
economists have also been doing their parts.
Green marketing is a relatively new
phenomenon which has arisen as a result of
increasing awareness that economic policies
have a lot to do with our ecology. In other
words, green marketing, which is also termed
as environmental or sustainable marketing, is
the effort made by any business organization,
large or small to design and promote products
that are eco-friendly. The main idea behind
green marketing has been re-marketing of
products that are already manufactured, which
adhere to certain environmental guidelines.
There has been a huge hue and cry from
various environmental organizations about the
damage caused to the planet by large scale
production industries, and the inappropriate
disposal methods they use. Having looked into
these accusations, the government has
imposed different agreements and guidelines
on production units. Some business
organizations have used it to their advantage,
by openly campaigning for the cause, hence
gaining the support of customers. However,
some critics claim that this is just an
advertising stunt to promote business, and that
no real steps have been taken towards the
cause.
A green consumer is one who is aware of the
background of the products he consumes,
which he chooses upon careful investigation of
their broad effects on the environment. This
spirit is essential in customers, so that they do
not blindly fall for a company‘s
advertisements, which will hinder the progress
of the green movement. Hence it is only with
the right attitude from both the consumers and
the marketers, that ―going green‖ can be
achieved in the true sense. And when that
happens, we can finally feel safe, and at home!
THE IMPORTANCE
The question of why green marketing has
increased in importance is quite simple and
relies on the basic definition of Economics:
"Economics is the study of how people use
their limited resources to try to satisfy
unlimited wants." [McTaggart, Findlay and
Parkin 1992, 24]
It suggests that mankind 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, for
example, see Gore 1993.) While the question
of whether these wants are reasonable or
achievable is important, this issue will not be
addressed in this paper. In market societies
where there is "freedom of choice", it has
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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.
Why the businesses started using green
marketing: As per the literature available,
there are several suggested reasons for firms
increased use of Green Marketing. Five
possible reasons cited are:
Organizations perceive environmental
marketing to be an opportunity that can be
used to achieve its objectives [Keller 1987,
Shearer 1990];
Organizations believe they have a moral
obligation to be more socially responsible
[Davis 1992, Freeman and Liedtka 1991,
Keller 1987, McIntosh 1990, Shearer 1990];
Governmental bodies are forcing firms to
become more responsible [NAAG 1990];
Competitors' environmental activities pressure
firms to change their environmental marketing
activities [NAAG 1990]; and
Cost factors associated with waste disposal, or
reductions in material usage forces firms to
modify their behavior [Azzone and Manzini
1994].
ANOTHER ASPECT OF GREEN
MARKETING: CORPORATE SOCIAL
RESPONSIBILITY
Many firms are beginning to realize that they
are members of the wider community and
therefore must behave in an environmentally
responsible fashion. This translates into firms
that believe they must achieve environmental
objectives as well as profit related objectives.
This results in environmental issues being
integrated into the firm's corporate culture.
Firms in this situation can take two
perspectives; 1) they can use the fact that they
are environmentally responsible as a
marketing tool; or 2) they can become
responsible without promoting this fact.
There are examples of firms adopting both
strategies. Organizations like the Body Shop
heavily promote the fact that they are
environmentally responsible. While this
behavior is a competitive advantage, the firm
was established specifically to offer consumers
environmentally responsible alternatives to
conventional cosmetic products. This
philosophy is directly tied to the overall
corporate culture, rather than simply being a
competitive tool.
PRESSURE FROM THE GOVERNMENT:
As with all marketing related activities,
governments want to "protect" consumers and
society; this protection has significant green
marketing implications. Governmental
regulations relating to environmental
marketing are designed to protect consumers
in several ways, 1) reduce production of
harmful goods or by-products; 2) modify
consumer and industry's use and/or
consumption of harmful goods; or 3) ensure
that all types of consumers have the ability to
evaluate the environmental composition of
goods.
Governments establish regulations designed to
control the amount of hazardous wastes
produced by firms. Many by-products of
production are controlled through the issuing
of various environmental licenses, thus
modifying organizational behavior. In some
cases governments try to "induce" final
consumers to become more responsible. For
example, some governments have introduced
voluntary curb-side recycling programs,
making it easier for consumers to act
responsibly. In other cases governments tax
individuals who act in an irresponsible
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fashion. For example in Australia there is a
higher gas tax associated with leaded petrol.
BEATING THE COMPETITION:
Another major force in the environmental
marketing area has been firms' desire to
maintain their competitive position. In many
cases firms observe competitors promoting
their environmental behaviors and attempt to
emulate this behavior. In some instances this
competitive pressure has caused an entire
industry to modify and thus reduce its
detrimental environmental behavior. For
example, it could be argued that Xerox's
"Revive 100% Recycled paper" was
introduced a few years ago in an attempt to
address the introduction of recycled
photocopier paper by other manufacturers. In
another example when one tuna manufacture
stopped using driftnets the others followed suit
[Advertising Age 1991].
OTHER NAME OF REVENUES:
Firms may also use green marketing in an
attempt to address cost or profit related issues.
Disposing of environmentally harmful by-
products, such as polychlorinated biphenyl
(PCB) contaminated oil are becoming
increasingly costly and in some cases difficult.
Therefore firms that can reduce harmful
wastes may incur substantial cost savings.
When attempting to minimize waste, firms are
often forced to re-examine their production
processes. In these cases they often develop
more effective production processes that not
only reduce waste, but reduce the need for
some raw materials. This serves as a double
cost savings, since both waste and raw
material are reduced.
In other cases firms attempt to find end-of-
pipe solutions, instead of minimizing waste. In
these situations firms try to find markets or
uses for their waste materials, where one firm's
waste becomes another firm's input of
production. One Australian example of this is
a firm who produces acidic waste water as a
by-product of production and sells it to a firm
involved in neutralizing base materials.
OTHER SIDE OF THE COIN:
No matter why a firm uses green marketing
there are a number of potential problems that
they must overcome. One of the main
problems is that firms using green marketing
must ensure that their activities are not
misleading to consumers or industry, and do
not breach any of the regulations or laws
dealing with environmental marketing. For
example marketers in the US must ensure their
green marketing claims can meet the following
set of criteria, in order to comply with the
FTC's guidelines. Green marketing claims
must;
Clearly state environmental benefits;
Explain environmental characteristics;
Explain how benefits are achieved;
Ensure comparative differences are justified;
Ensure negative factors are taken into
consideration; and
Only use meaningful terms and pictures.
Another problem firms face is that those who
modify their products due to increased
consumer concern must contend with the fact
that consumers' perceptions are sometimes not
correct. Take for example the McDonald's case
where it has replaced its clam shells with
plastic coated paper. There is ongoing
scientific debate which is more
environmentally friendly. Some scientific
evidence suggests that when taking a cradle-
to-grave approach, polystyrene is less
environmentally harmful. If this is the case
McDonald's bowed to consumer pressure, yet
has chosen the more environmentally harmful
option.
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ECOLOGICAL MARKETING
STRATEGIES UNDER GREEN
MARKETING:
BE TRUE TO YOUR BRAND:
Some big brands try to reinvent themselves in
order to communicate the customers what they
want to hear. Arguably, this is similar to a
brand that wants to engage consumers on
green issues but is not currently perceived in
the market as being green. Brands do not
necessarily have to be known for being green
in order to be relevant to consumers. Instead,
brands should tell their story in a way that is
true to their existing brand positioning.
Unilever‘s Axe is a great example. Known as
an irreverent brand that uses the sex appeal of
its products to drive sales, Axe launched its ―
Shower pooling‖ campaign to engage its
customer base on the issue of water
conservation. The platform uses shower
pooling — sharing showers — not only as a
way to grab attention, but to make it relevant
with the audience. The campaign jokes: ―It‘s
not just environmentally friendly … it‘s all
kind of friendly.‖
TARGET MICRO-SEGMENTS
Here marketers could develop their own
database by encouraging consumers to sign up
for ongoing communications from a company.
Even without a database, marketers can
certainly target micro-segments online. This
can be done by targeting green consumers on
contextually relevant sites, retargeting those
visitors elsewhere online or by partnering with
a demand side platform to identify and target
audiences with like-minded profiles regardless
of where they go online.
TURN LOYALISTS INTO
INFLUENCERS
Sometimes advertising campaigns should
activate loyal customers to serve as influencers
and advocates for the brand. Such a campaign
provides many lessons for green marketers —
as well as the opportunity to take a similar
approach to drive adoption of green products.
"GREEN" ECONOMISTS AND
ECONOMICS:
"Green economics" is loosely defined as any
theory of economics by which an economy is
considered to be component of the ecosystem
in which it resides (after Lynn Margulis). A
holistic approach to the subject is typical, such
that economic ideas are commingled with any
number of other subjects, depending on the
particular theorist. Some economists view
green economics as a branch or subfield of
more established schools. For instance, as
classical economics where the traditional land
is generalized to natural capital and has some
attributes in common with labor and physical
capital (since natural capital assets like rivers
directly substitute for man-made ones such as
canals). Or, as Marxist economics with nature
represented as a form of lumpen proletariat, an
exploited base of non-human workers
providing surplus value to the human
economy. Or as a branch of neoclassical
economics in which the price of life for
developing vs. developed nations is held
steady at a ratio reflecting a balance of power
and that of non-human life is very low. The
green economy promises a way forward by
offering a system of economics that ensures
both growth and the long-term viability of
human culture and the planet. It recognizes
that by reformulating how we approach
economic growth, we don‘t have to sacrifice
the natural world or human wellbeing in order
to achieve true wealth.
The green economy is simply a transformation
of the current economy with an eye to
sustainable development. In essence it‘s an
alternative way of thinking about growth and
development. In traditional economic growth
models, GDP is the primary measure of
success. Unfortunately, by focusing solely on
the ability of humans to produce and consumer
goods, significant damage is done to the
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quality of life for both humans and other
creatures of the planet. In this economic
system, poverty is rampant, and the gap
between rich and poor grows every year. Not
only that, but the natural wealth of the planet
is consistently and significantly reduced.
WHERE ARE WE NOW
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. It must be
remembered that it is the uncaring consumer
who chooses to disposes of their waste in an
inappropriate fashion. While firms can have a
great impact on the natural environment, the
responsibility should not be theirs alone. It
appears that consumers are not overly
committed to improving their environment and
may be looking to lay too much responsibility
on industry and government. 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 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.
WHERE ARE WE HEADING TO:
Think of your worst nightmare of the future.
Heat waves and drought devastate food
production, causing millions of the poorest to
die of hunger. The melting glaciers and polar
ice caps raise ocean levels, inundating coastal
cities such as Miami and Houston. Freak
storms cause so much property damage it
collapses national economies. We are
witnessing the birth of a new economic
model—a triple-bottom-line model that puts
social equity and environmental restoration on
an equal footing with financial sustainability
(profit). This nature-friendly economic model
will steadily replace the old profit-centric
model as the impacts of environmental
destruction and inequality become impossible
to ignore. The new economic model sees and
based on sharing as the new buying. This new
economic model undermines the old myth that
saving the environment will destroy jobs and
slow economic growth. The data are showing
us that the eco-enterprise model—making
money by saving resources rather than
destroying them—creates more and better jobs
than the old model.
It is all of us realizing that while our
imaginations are limitless, so too can be our
appetites. The planet that sustains us, abundant
as it is, has limited resources that we will
deplete if we continue to consume them faster
than they can regenerate. We need to take that
awareness as our guiding principle, as we
move gracefully towards an emergent goal of
quality, rather than quantity, of prosperity
redefined as an abundance of connection
rather than accumulation, in the direction of
the limitlessness of our imaginations rather
than our appetites. The Green Economy can be
rich and full and delicious and fun, as long as
we keep in mind the fact that we are, all of us,
traveling on a great big Spaceship Earth that is
subject to laws of nature that must be
respected and obeyed. And finally its in our
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