Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836

Vol.2 (7), July (2013)

Online available at indianresearchjournals.com

GREEN MARKETING AND ITS IMPLEMENTATION IN INDIAN

BUSINESS ORGANIZATIONS
MANJUNATH .G.*; GUNDUPAGI MANJUNATH**
*ASSISTANT PROFESSOR,
ADARSH GROUP OF INSTITUTIONS (AGI),
ADARSH INSTITUTE OF MANAGEMENT & INFORMATION TECHNOLOGY (AIMIT),
5TH MAIN, CHAMRAJPET, BANGALORE 18. KARNATAKA, INDIA.
**ASSISTANT PROFESSOR,
SRN ADARSH COLLEGE, DEPARTMENT OF COMM. MGMT.,
5TH MAIN CHAMRAJPET, BENGALURU-18. KARNATAKA, INDIA.

_____________________________________________________________________________________

ABSTRACT
Purpose: Green marketing refers to holistic marketing concept wherein the production,
marketing, consumption and disposal of products and services happen in a manner that is less
detrimental to the environment. Over the years, a majority of consumers have realized that their
behavior had a direct impact on environment. The objective of this paper is to study the
implementation of Green Marketing initiatives in the Indian organizations and also highlights on
the top five green marketing initiatives in the information technology (IT) sector in Bangalore.
The paper also aims to understand the concepts of Green Products; green marketing mix and
points out the challenges before green marketing initiators.
Methodology/Approach: The present paper studies the theoretical concepts of the green
marketing, green marketing management and green products. The paper also studies the theory
contributed by researchers in the area of environment marketing which includes green products,
green customers, green marketing mix and ecological processes.
Time frame: The research study was conducted during the period of August 2012 to April 2013.
Value: The research paper concludes that business firms need to change their mind set from
traditional marketing strategies to green marketing strategies in order to survive in the green
competitive world and to have a positive impact on the environment through green marketing
elements.
KEYWORD: Environment, Green Marketing, Green Marketing Management, Green Products
and Green Marketing Mix.
_____________________________________________________________________________________

Earth provides enough to satisfy every man's needs, but not every man's greed.
Mahatma Gandhi

75

Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836

Vol.2 (7), July (2013)
Online available at indianresearchjournals.com

Introduction:
According to American Marketing Association (AMA), 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 packaging as well as
modifying advertizing. Hence, green marketing refers to holistic marketing concept wherein the
production, marketing, consumption and disposal of products and services happen in a manner
that is less detrimental to the environment. Over the years, a majority of consumers have realized
that their behavior had a direct impact on environment. There is a growing amount of evidence
indicating that consumers are shifting traditional products to green products to have a positive
impact on the natural environment.
Green Marketing as the development and marketing of products designed to minimize negative
effects on the physical environment. Green Marketing as the study of all efforts to consume,
produce, distribute, promote, package, and reclaim products in a manner that is sensitive or
responsive to ecological concerns. The inclusion of all efforts to consume recognizes that many
entities are involved in green marketing. Green marketing is not limited to government or
nongovernment organizations, nor is it solely an activity undertaken by consumers.
Manufacturers, wholesalers, retailers, and services firms each has opportunities to contribute in
the field of green marketing. This definition also identifies the need to consider the production,
distribution, and reclamation of products as integrated components of the marketing effort.
Efficiency at one stage of this process (e.g., distribution) may offer advantages in the channel,
but the goal of green efforts is to limit the total ecological influence associated with
consumption. Green Marketing must consider the promotional efforts employed to gain
consumer support of ecologically friendly products.
Green Marketing Management as the process of planning and executing the marketing mix to
facilitate consumption, production, distribution, promotion, packaging, and product reclamation
in a manner that is sensitive or responsive to ecological concerns. The management of green
marketing activity continues to evolve as companies incorporate new thinking about climate
change throughout their organizations. Initial green marketing efforts focused on the recycling of
products such as aluminum cans and photocopier toner cartridges. Over time, firms have begun
to consider ways to modify inputs to production that limit the influence of the products on the
environment. The study of green marketing reflects an interest in becoming more aware of
ecological and sustainability issues and consistently working to achieve higher levels of
sustainability. Increasingly, firms are recognizing that outputs from the production process
should be viewed under scrutiny of climate change as well. Savvy management recognizes that
everything coming out of a production facility is a product, by-product, or waste. Green products
are recognized nationally or internationally through certification and eco-labeling. For example,
the United States Environmental Protection Agency provides Energy Star labels for electronics
and appliances that are environmentally friendly. In the United States, personal computers
account for 2% of annual electricity consumption. The EPA s new Energy Star labels require
76

Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836

Vol.2 (7), July (2013)
Online available at indianresearchjournals.com

computers possessing the label to be 65% more efficient than conventional products. Adoption of
these new personal computers will enable industry to save $1.2 billion over the life of the
products. Firms also are viewing by-products of production in novel ways. Shell Oil is pumping
carbon dioxide, a refinery by-product, into 500 Dutch greenhouses. This action reduces
emissions by 325,000 tons per year and saves greenhouses from having to burn millions of cubic
meters of gas needed to produce carbon dioxide. Each of these aforementioned activities
represents a form of green marketing employed at various points in the supply chain.
Increasingly, however, organizations recognize the interdependencies operating throughout an
economy. Efforts to control costs and enhance productivity at one stage cannot occur at the
expense of other stages. The United Nations is an organization that has led the way in this
recognition of the multiple interdependencies among nature, economy, and society. In December
1983, the United Nations commissioned research on development and the environment.
The 1987 report of the United Nations Commissioned Research defined sustainability as
development that meets the needs of the present without compromising the ability of future
generations to meet their own needs. Importantly, this edict recognizes that there are at any time
limits on the ability of the biosphere to absorb human activity. The sustainable organization must
generate acceptable levels of economic performance, or it will not survive. It must also nurture
social performance in its interaction with customers, suppliers, consumers, and other interest
groups. Survival is also contingent on the firm s ability to achieve acceptable levels of
environmental performance throughout the supply cycle from raw material procurement to post
consumption disposal. In the retail sector, Wal-mart has publicly committed to reducing
packaging in its global supply chain by 5% by 2013.As part of its effort to gain logistical
sustainability; the firm developed a packaging scorecard to monitor supplier performance.
Green Products:
Simon (1995) defined "Green Products" as products made with reduced amounts of
material, highly recyclable material, non-toxic material, do not involve animal testing, do
not adversely affect protected species, require less energy during production or use, or
have minimal or no packaging.
Nimse (2007) defined green products as those that use recyclable materials, minimal
wastage, and reduce the use of water, save energy, have minimal packaging, and emit less
toxic substances. Compared with other products, green products bring less harm to
humankind and offer more long-term practical development opportunities from a social
and economic perspective. Green products are environmentally friendly products.

77

Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836

Vol.2 (7), July (2013)
Online available at indianresearchjournals.com

Gains/Benefits of Green Marketing:

Green marketing has positive influences on multiple participants in the economy. The
environment, developing economies, consumers, corporate strategy, the product, production
processes, and supply chain benefit from green marketing.
Environmental Benefits: The obvious benefactor of green marketing is the environment.
Conditions and trends in climate change, air, water, and soil conservation. Green marketing can
have an influence on climate change in several substantial ways. Fossil fuel consumption is a
major source of greenhouse gases associated with climate change. Two leading sources of
climate change are the burning of coal for electricity and the burning of gasoline for automobile
transportation. Green marketing initiatives focused on product development strategies reduce the
need to rely on these forms of energy.
For example, new appliances are designed with fuel efficiencies that clearly reduce energy
consumption. It is important to recognize that the consumer must incorporate concern for the
environment with multiple other considerations. For example, potential consumers of the new
Chevrolet Volt must reconcile the zero-fossil fuel consumption with the price differential for this
car versus less expensive cars that produce more carbon dioxide. Green marketing initiatives
contribute to the environment by incorporating green marketing strategies into superior value
propositions for consumers.
Developing Economies: The term developing economies refers to nations that have a relatively
low gross domestic product (GDP) per capita. The low income, underdeveloped assets, and
economic vulnerability common to these economies results in high dependence on the
agricultural sector. Inhabitants in these markets, however, face increased exposure to drought,
intense storms, floods, and environmental trauma that limits the ability to enhance quality of life.
Research performed by the United Nations indicates that inhabitants of these countries are much
more likely to be affected by natural disasters than inhabitants in high-income countries. Climate
change limits agricultural productivity, increases water stress, raises sea levels, negatively
transforms ecosystems, and thwarts human health. These factors do not operate in isolation;
interactively, they contribute to hunger and poverty in developing markets. Green marketing and
production position to reduce climate modify and consequently limit hunger and poverty.
Consumer Benefits: Consumers benefit in several important ways through green marketing.
These benefits often influence consumer decision making, and consumers will vary in the extent
to which they value these benefits. Initially, consumers benefit from the knowledge that they are
doing their part to reduce climate change. These consumers are likely to favor corporate efforts
to reduce pollution over efforts to raise corporate profitability. Consumers also value the
opportunity to be associated with environmentally friendly products and organizations.
Strategic Benefits: Managers of corporate strategy realize multiple benefits from a green
approach to marketing. Companies that incorporate ecological consciousness into their mission
78

Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836

Vol.2 (7), July (2013)
Online available at indianresearchjournals.com

statements and strategy enhance their images among consumers, employees, investors, insurers,
and the general public. Some consumers have strong attraction toward green products, and
approaching the market with an ecological focus enhances image of the brand among these
consumers.
Product benefits: Product benefits refer to components introduced into production outputs or
services designed to benefit the consumer, whereas process benefits refer to tools, devices, and
knowledge in throughput technology designed to facilitate manufacturing and logistics. For
example, a hybrid engine is a product innovation, whereas a just-in-time inventory system is a
process innovation.
Production Process Benefits: Production processes focus on organizational efforts to produce
the highest-quality products at the lowest possible cost. Process benefits accrue for handling of
products, by-products, and waste. The materials costs associated with sustainable manufacturing
techniques can be reduced in a number of ways.
Supply-chain Benefits: Green marketing influences relationships among the firms that make up
the channel from raw material mining to consumption. Green strategies that seek to eliminate
waste in the supply chain result in firms analyzing truck loading and route planning in the
delivery process. Routing that seeks to eliminate fuel costs can maximize truck capacity
utilization and improve customer service.
Review of Literature:
According to the authors like Ottaman, (1993) and Ken Peattie, (1993) concept of green
marketing is in and the concept of conventional marketing is out. Azhagaiah and Ilangovan
(2006) according to their study, researchers found out that the environmental issues have a
significant impact on the modern society and observed the impact of green marketing and the
environment protection. Thakur (2009) Customer awareness with reference to green marketing
of automobiles an empirical research carried at Indore, Madhya Pradesh and concluded that
green marketing of automobiles is attracting both from urban and rural people. This clearly
indicates that people are shifting to the eco-friendly products to have a positive impact on the
natural environment rather than traditional products. Welling & Chavan (2010) Analyzing the
feasibility of Green Marketing in Small & Medium Enterprises, an empirical study and the data
was collected from 114 respondents in (Suburban Mumbai) , the main purpose of their study was
to find out whether the Small & Medium Enterprises believed in implementing green culture
practices in the manufacturing and marketing of green products. Further their study concluded
that both the State and Central governments should take necessary steps and encourage the
SMEs to manufacture green products. Brady (2010) Due to the diminishing availability of
natural resources, such as water, oil, this green interest is also creating a concern for
conservation. Sustainability concerns- climate change, toxic substances, ethical sourcing and
extreme utilization are at an all time high with consumers and media. With the viability of the
79

Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836

Vol.2 (7), July (2013)
Online available at indianresearchjournals.com

planet a growing concern many consumers are willing to do their part. Ramakrishna (2012)
Green Marketing in India: Some Eco-Issues, the researcher analysed the Eco-issues in Green
Marketing through the 4ps of green marketing mix and concluded that awareness to be created
among the people about green marketing benefits and eco-friendly products and also concluded
that the firms need to give more attention towards the green culture in order to survive in the
tough market.
Participants who need to understand the Green Marketing:
Green marketing is progressively more an important issue for most entities concerned in
marketing whether they are buyers, sellers, or regulators of an industry.
Consumers.
Governments.
Companies with recognized environmental reputations.
Companies highly dependent on scarce human capital.
Companies with low market power.
Companies operating in highly regulated industries.
Companies dependent on natural resources.
Reasons Why companies to adopt Green Marketing:
Opportunities or competitive advantage.
Corporate social responsibilities (CSR).
Government pressure.
Competitive pressure.
Cost or profit issues.
Challenges in Green Marketing:
Majority of the people are not aware of Green products and their uses.
Green products require a recyclable and renewable materials or elements which are
expensive.
People are often perceived that green products are expensive compared to traditional
products.
Green Marketing depends on technology and requires a huge investment in Research and
Development.

Green Marketing Mix: The combination of 4 Green Ps or Green factors(Eco-friendly) is

known as Green Marketing Mix namely; Green Product, Green Promotion, Green Place and
80

Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836

Vol.2 (7), July (2013)
Online available at indianresearchjournals.com

Green Price. Under GMM Green factors should be considered as they closely associated to the
success or failure of the marketing of eco-friendly products:

Green Product: While manufacturing green products the firms should incorporate
environmentally friendly resources or materials in the product. The characteristics of the
resources or materials used in the product and its packaging should influence
environmental elements.
Green Promotion: The firms should focus more on Green Advertising in order to
communicate to its green customers (who uses eco-friendly products) and as well as
traditional customers (who are not green users) about the concept of environmental
protection. Apart from this, the firms should also launch promotional tools such as
schemes, coupons, offers and premium etc; in order to attract consumers to buy ecofriendly products.
Green Place: Green products and services which are to be delivered from the point of
producers to the point of ultimate green consumers. In this context, the firm should
choose a proper channel considering product characteristics, consumer characteristics and
market characteristics.
Green Price: It is often perceived by the consumers that the prices of green products are
relatively higher compared to the traditional products. If production and operating costs
are lowered, it would give green products more competent force on the market.

Green
Product

Green
Price

4 Green Ps of
Marketing

Green
Promotion

Green Place

Table: 1: Showing Companies had taken initiatives on Green Marketing:

81

Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836

Vol.2 (7), July (2013)
Online available at indianresearchjournals.com

SL.No: Company
1.
Philips India

Green Marketing Initiatives

Energy saving Lights.
Medical Equipments.
House hold appliances.

2.

Mahindra Reva

3.

Go GreenBOV

4.
5.

Philips
Hewlett-Packard
Company

6.

Wipro Technologies

7.

CISCO Systems

7.

Infosys
Ltd.

Technologies

Electric Vehicle-e2o.
Earth friendly small tractor designed to the
farmers.
Battery Operated Vehicles(BOV)
Compact Fluorescent Light (CFL) bulbs.
Energy-efficient products and services and
institute energy-efficient operating practices in its
facilities worldwide.
Sustainable IT products and solutions, which help
customers, achieve high productivity in energy,
space and asset management through the
lifecycle.
Recycled plastic.
Launched Green ware ranges of desktops are not
only 100% recyclable, but also toxin-free.
Cisco recently partnered with San Franciscos
Department of Energy to announce Worlds first
Urban Eco Map Pilot. This tool provides
information on carbon emissions which are
caused by transportation, energy waste etc.
organized by ZIP codes.
Cisco is planning to minimize the ecological
impact by establishing responsible operation
programs aimed to reduce energy consumption
across the company, limit the greenhouse gas
emissions implicated in global warming, closely
manage the air quality, water consumption, food
procurement and waste and lastly, monitor and
ensure proper disposal of hazardous materials.
Focused on green buildings, water harvesting and
conservation, better transport management by
encouraging car pool for its employees and
increasing bio-diversity in its campuses.
Focused on green engineering. The unit works
on new products as well as on refurbishing
existing products to make them more energy
efficient.
82

Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836

Vol.2 (7), July (2013)
Online available at indianresearchjournals.com

8.

Accenture

Focused on green buildings and data centers at

all global offices.

9.

HCL

10.

McDonald Restaurant

11.

Panasonic(With
ECONAVI Intelligent
eco sensors)

HCL commits to manufacture products that are

environment friendly in all respects and are free
from hazardous chemicals.
McDonald restaurants napkins, bags are made
of recycled paper.
Eco-friendly refrigerators, air conditioners,
washing machines.
Plasma TV, LCD.
Quick iron, batteries and bulbs.

Table No:2: Showing Countries ranked according to their response level on Green
Marketing:
Rank
1
2
3
4
5
6
7

Countries
India
UK
US
Thailand
Australia
Canada
China

(Source: Retrieved from www.google.com)

Table No: 3: Showing top 5 Information Technology (IT) Companies in Bangalore.
SL.NO
1
2
3
4
5

Company Name
Wipro Technologies
CISCO Systems
Infosys
Accenture
HCL Technologies

Source: www.mybangalore.com/.../top-5-green-it-companies-in-bangalore-.html

Conclusion: In the present day, a majority of consumers have realized that their
behavior had a direct impact on environment as there is mounting amount of evidence
83

Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836

Vol.2 (7), July (2013)
Online available at indianresearchjournals.com

indicating that consumers are shifting traditional products to green products to have a
positive impact on the natural environment. The research paper concludes that business
firms need to change their mind set from traditional marketing strategies to green
marketing strategies with a huge investment in technology, R and D and through Green
marketing elements such as eco-design of a product, eco-labeling, eco-packaging, green
logo in order to survive in the green competitive world and to have a positive impact on
the environment.

References:
Adrienne Fox (2007), Corporate Social Responsibility Pays Off, HR Magazine, August 2007.
Ans Kolk(2000), Green Reporting, Harvard Business Review, pp15-16.
Andrea Coombes(2007), Deals Speed Up Hybrid Savings, Wall Street Journal, May 2, 2007.
Allen D. Lee and R. Conger(1996), Market Transformation: Does It Work? The Super Energy
Efficient Refrigerator Program, Proceedings of the 1996 ACEEE Summer Study.
Azhagaiah R.Ilangovan A. (2006), Green Marketing and Environment Protection, Indian
Journal of Marketing, Vol.XXXVI.
Clare D Souza, Mehdi Taghian, and Rajiv Khosla(2007), Examination of Environmental Beliefs
and Its Impact on the Influence of Price, Quality and Demographic Characteristics with Respect
to Green Purchase Intention, Journal of Targeting, Measurement and Analysis for Marketing
15, No. 2, pp69-78.
Chad Holliday(2001), Sustainable Growth, the DuPont Way, Harvard Business Review,No. 8,
pp129-132.
Carol Matlack(2007), Cleaning up with Next-Gen Jets, Business Week, June 25,
2007,available at http://www.businessweek.com/globalbiz/
Colleen Taylor(2006), EPA Revises Energy Star, Electronic News 52, No. 44.
Chrissy Kadleck, Calif(2007), Vineyard Cuts Environmental Impact, Waste News, August 6,
2007.
Robert A. Frosch(1996), Toward the End of Waste: Reflections on a New Ecology of Industry,
Daedalus 125, No. 3, pp 199- 212.

84

Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836

Vol.2 (7), July (2013)
Online available at indianresearchjournals.com

Edwin R. Stafford and Cathy L. Hartman (1996), Green Alliances: Strategic Relations between
Businesses and Environmental Groups, Business Horizons 2 , pp50-59.
Gert Cornelissen et all(2008), Positive Cueing: Promoting Sustainable Consumer Behavior by
Cueing Common Environmental Behaviors as Environmental, International Journal of Research
in Marketing 25, No. 1, pp46 55.
Gro Brundtland(1987), Our Common Future: The World Commission on Environment and
Development Oxford University Press, New York.
H.Ramakrishna (2012),Green Marketing in India: Some Eco-Issues, Journal Of Marketing,
Vol-42,No-11, pp.11-14.
James Salzman and David Hunter (2007), Negligence in the Air: The Duty of Care in Climate
Change Litigation, Working paper no. 95, Duke University Law School.
Jeffrey R. Kosnett(2007), GREEN is the Next Big Thing, Kiplingers Personal Finance,
October, pp32-34.
Jacquelyn Ottman, Edwin R. Stafford, and Cathy L. Hartman(2006),
Marketing Myopia, Environment 48, No. 5, pp22-36.

Avoiding Green

Kevin Watkins(2008), Human Development Report 2007/2008, United Nations Development

Programme, Geneva, Switzerland.
Mark Vigneri , Ron Adams, and Ron Scrudato (2007), Remediation for Those Hard-to-Reach
Places, Pollution Engineering 39, No.6 , pp 36-40.
Mary Ann Falkman (2007), Sustainability: The Wal-mart Way, Packaging Digest 44, No. 20.
Saheli Datta and Todd Woody, Technologies for a Green Future, Business (2007)
Stuart L. Hart and Mark B. Milstein(1999), Global Sustainability and the Creative Destruction
of Industries, Sloan Management Review 41, No. 1, pp23-33.
Stafford(2006), Ned, Gas for the Greenhouse, Nature.
Sandra A. Waddock, Charles Bodwell, and Samuel B. Graves(2002), The New Business
Imperative, Academy of Management Executive 16, No. 2, pp132-148.
Timothy Ashby(2001), Silicon Island Cuba s Digital Revolution, Harvard International
Review 23, No. 3, pp14-18.
Tony Kent and Dominic Stone(2007), The Body Shop and the Role of Design in Retail
Branding, International Journal of Retail and Distribution Management 35, No. 7, pp531-543.

85

Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836

Vol.2 (7), July (2013)
Online available at indianresearchjournals.com

The Editors of Consumer, Reports Consumer Reports Buying Guide 2008.

Thakur Girish and Joshi Nitin M. (2009), An Investigation Of Customers Awareness With
Reference To Green Marketing Of Automobiles, Indian Journal Of Marketing, Vol:XXXIX.
Welling & Chavan Anupam .S. (2010), Analyzing the Feasibility of Green Marketing in
SMEs, Asia-Pacific Journal of Research in Business Management, Vol-1, Issue-2.

86