Green marketing

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According to the American Marketing Association, green marketing is the marketing of products
that are presumed to be environmentally safe.[1] Thus green marketing incorporates a broad range of
activities, including product modification, changes to the production process, packaging changes, as well
as modifying advertising. Yet defining green marketing is not a simple 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.[1]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.[2]
 Contents
[hide]
• 1 History
• 2 Greenhouse gas reduction
market
• 3 Popularity and effectiveness
○ 3.1 Ongoing debate
○ 3.2 Confusion
○ 3.3 Statistics
• 4 Green marketing cases
○ 4.1 Philips Light's
"Marathon"
○ 4.2 Car sharing
services
○ 4.3 Electronics sector
[ edit]History
The term Green Marketing came into prominence in the late 1980s
and early 1990s.[3] The American Marketing Association (AMA)
held the first workshop on "Ecological Marketing" in 1975.[4] The
proceedings of this workshop resulted in one of the first books on
green marketing entitled "Ecological Marketing".[5]
The first wave of Green Marketing occurred in the 1980s. 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

○ 4.4 Introduction of tangible milestones for wave 1 of green marketing came in the form

CNG in Delhi of published books, both of which were called Green Marketing.
They were by Ken Peattie (1992) in the United Kingdom and by
• 5 See also
Jacquelyn Ottman (1993) in the United States of America.[citation
• 6 References needed]

• 7 External links
According to Jacquelyn Ottman, (author of Green Marketing:
Opportunity for Innovation) from an organizational standpoint, environmental considerations should be
integrated into all aspects of marketing — new product development and communications and all points
in between.[6] 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.[citation needed]

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.[7] 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.[1] 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.[citation needed] In 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 consensus—by consumers, marketers, activists, regulators, and influential people—has
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.[citation needed]

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[8]
[9]
.

[ edit]Greenhouse gas reduction market

The emerging greenhouse gas reduction market can potentially catalyze projects with important local
environmental, economic, and quality-of-life benefits. The Kyoto Protocol’s 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. Although
the United States is not participating in the Kyoto Protocol, several US programs enable similar
transactions on a voluntary and regulatory basis.[1]

While international trade in greenhouse gas[10] reductions holds substantial promise as a source of
new funding for sustainable development, this market can be largely inaccessible to many smaller-
scale projects, remote communities, and least developed localities. To facilitate participation and broaden
the benefits, several barriers must be overcome, including: a lack of market awareness among
stakeholders and prospective participants; specialized, somewhat complicated participation rules; and the
need for simplified participation mechanisms for small projects, without which transaction costs can
overwhelm the financial benefits of participation. If the barriers are adequately addressed, greenhouse
gas trading can play an important role supporting activities that benefit people’s lives and the
environment.[1]

[ edit]Popularity and effectiveness

[edit]Ongoing debate
The popularity of such marketing approach and its effectiveness is hotly debated. Supporters claim that
environmental appeals are actually growing in number–the Energy Star label, for example, now
[11]
appears on 11,000 different companies' models in 38 product categories, from washing
machines and light bulbs to skyscrapers and homes. The difference is, however, that green—
rightfully so—is on the wane as the primary sales pitch for products. On the other hand, Roper’s Green
Gauge shows that a high percentage of consumers (42%)[12] feel that environmental products don’t work
as well as conventional ones. This is an unfortunate legacy from the 1970s when shower heads sputtered
and natural detergents left clothes dingy. 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. New reports, however show a growing trend towards green products.[13]
[edit]Confusion

One challenge green marketers -- old and new -- are likely to face as green products and messages
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 Ottman(founder of J. Ottman
[13]
Consulting 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".[citation needed]

A very good example of Green Washing can be found in the claims about Bamboo Fibres.It is equaoted
and sounds similar to Cotton fibre/Organic cotton fibres . In the case of bamboo it is pulped and mixed
with caustics and other 5 different chemicals and yarn is made out of this certainly not similar to Organic
cotton. Similarly Csurina ,uclyptus and other trees even vegitalbes used in pulp ping and yarn making this
is not organic bamboo firbre in the sense the Organic cotton is used . This is punishable offence on the
part of traders and others .Ignorance of masses of this technical knowledge is well known . The
marketters create confusion taking advantage of this lack of knowledge of masses. Another example is
Eco-friendly dyed garments and Low-impact dyed garments is sheer green wash . 50 years ago all Denim
cotton jeans were organic and all Indigo dye was natural plant-extracted. Now 100% of the Denim Jeans
pants in U.S. is opposite to this.

[edit]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 so-called green products. Another 68%[13][14] 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."[13]

[ edit]Green marketing cases

[edit]Philips Light's "Marathon"
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.[15] The product had difficulty climbing out of its
deep green niche.[15] 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.[16] 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.[16]

[edit]Car sharing services

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.[citation needed] 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 by joining one of the many services springing up, including ZipCar
(East Coast), I-GO Car (Chicago)[17], Flex Car (Washington State),[18] and Hour Car (Twin Cities).[19]

[edit]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.[20] To
accomplish this reduction below 2005 levels, The Hewlett-Packard Company announced plans to
deliver energy-efficient products and services and institute energy-efficient operating practices in its
facilities worldwide.

[edit]Introduction of CNG in Delhi

New Delhi, capital of India, was being polluted at a very fast pace until Supreme Court of
India forced a change to alternative fuels. In 2002, a directive was issued to completely adopt CNG in all
public transport systems to curb pollution.[21]

[ edit]See also
 Marketing
 Green hosting
 Green politics
[ edit]References
1. ^ a b c d e "Green Trade & Development" (.html). Green Markets International, Inc. Retrieved January 2008.

2. ^ "Environmental Claims". Federal Trade Commission. 2008-11-17. Retrieved 2008-11-17.

 3. ^ Dodds, John (August 11, 2006). "Geek Marketing 101". Retrieved January 2008.

4. ^ Curtin, Emily (2006-09-14). "Lower East Side Green Market". Retrieved January 2008.

5. ^ Karl E., Henion; Thomas C. Kinnear (January 1976). "Ecological Marketing". Ecological Marketing. American

Marketing Association. pp. 168. ISBN 0877570760, ISBN 9780877570769.

6. ^ "J. Ottman Consulting in the News". Retrieved 2008-01-20.

7. ^ Dodds, John (August 11, 2006). "Geek Marketing 101". Retrieved January 2008.

8. ^ Mendleson, Nicola; Michael Jay Polonsky (1995). "Using strategic alliances to develop credible green

marketing". Journal of Consumer Marketing (MCB UP Ltd) 12 (2): 4–18. doi:10.1108/07363769510084867.

9. ^ McDaniel, Stephen W.; David H. Rylander (1993). "Strategic green marketing". Journal of Consumer

Marketing (MCB UP Ltd) 10 (3): 4–10. doi:10.1108/07363769310041929.

10. ^ Thomas L. Friedman (April 15, 2007), "The Power of Green", The New York Times

11. ^ Ottman, Jacquelyn (May 2002). "THE REAL NEWS ABOUT GREEN CONSUMING". Retrieved January 2008.

12. ^ "'Green' Sales Pitch Isn't Moving Many Products", Wall Street Journal, March 6, 2007

13. ^ a b c d Hanas, Jim (June 8, 2007), "Environmental Awareness Has Not Only Tipped in the Media -- It's Hit
Corporate Boardrooms as Well" (PDF), Advertising Age

14. ^ Greenfield Online/Mintel

15. ^ a b "Philips Nightlight - Hybrid CFL + LED Source". Retrieved 2008-01-19.

16. ^ a b "Philips Marathon 60 CFL Light Bulb (3 Pack)". Retrieved 2008-01-19.

17. ^ I-GO Car Sharing Business Profile

18. ^ "Welcome to Flexcar, the Car-Sharing Company". Retrieved January 2008.

19. ^ "What is Hour Car?". Retrieved January 2008.

20. ^ "HP to Reduce its Global Energy Use 20 Percent by 2010". Retrieved January 2008.

21. ^ "Green marketing". Retrieved January 2008.

[ edit]External links
 Guides for the use of Environmental Marketing Claims
 Discussion of the Evolution of the Definition of the Term Green
 B2B Green Marketing Success Storyhttp://www.ecoles-idrac.com/Blogs/Green-
Market-IN
http://www.ecoles-idrac.com/Blogs/Green-Market-IN
Categories: Environmentalism | Marketing

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Definition:

What is green marketing? 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
itself or produced and/or packaged in an environmentally friendly way.

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, in my opinion, has not been proven
conclusively.

While green marketing is growing greatly as increasing numbers of consumers are willing to back their
environmental consciousnesses with their dollars, it can be dangerous. The public tends to be skeptical
of green claims to begin with and companies can seriously damage their brands and their sales if a
green claim is discovered to be false or contradicted by a company's other products or practices.
Presenting a product or service as green when it's not is called greenwashing.
Green marketing can be a very powerful marketing strategy though when it's done right. See Three
Keys to Successful Green Marketing.

Also Known As: Environmental Marketing, Ecological Marketing, Eco-Marketing.

Common Misspellings: Geen marketing, gren marketing.

Examples:

Chad’s green marketing campaign bombed because he made the mistake of packaging his
environmentally friendly product in styrofoam.

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Yes, green marketing is a golden goose. As per Mr. J. Polonsky,
Human Resource green marketing can be defined as, "All activities designed to
generate and facilitate any exchange intended to satisfy human needs
or wants such that satisfying of these needs and wants occur with
System minimal detrimental input on the national environment."
Green marketing involves developing and promoting products and
Operations services that satisfy customer's want and need for Quality,
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detrimental input on the environment.
Knowledge Seminar Evolution of Green Marketing
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Encyclopedia of Business, 2nd ed.

Reference for Business » Encyclopedia of Business, 2nd ed. » Gov-Inc » Green Marketing

GREEN MARKETING

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Environmentally responsible or "green" marketing refers to the satisfaction of consumer

needs, wants, and desires in conjunction with the preservation and conservation of the
natural environment. Considered an oxymoron by many environmentalists (because it
still promotes consumption, albeit so-called responsible consumption), green marketing
manipulates the four elements of the marketing mix (product, price, promotion, and
distribution) to sell products and services offering superior environmental benefits in
the form of reduced waste, increased energy efficiency, and/or decreased release of toxic
emissions. These benefits are frequently estimated using life-cycle analysis (LCA)
studies, which measure the environmental impact of products over their entire life cycle
—resource extraction, refining, manufacturing, transportation, use, and disposal.

Green consumerism is based on public awareness of pressing environmental issues.

Green marketers hope to capitalize on this by developing strategies that allow
consumers to integrate green products into their lifestyles. Many such efforts by green
marketers have met with considerable success. The "organic" industry, for example,
which specializes in the sale of organically based foods, health and nutritional products,
and other green lifestyle items, saw its sales boom in the 1990s, from $1 billion in 1991
to $3.3 billion in 1996.
BEGINNINGS OF ENVIRONMENTALISM
Environmental concern in the United States has ebbed and flowed with the times. The
first wave of environmentalism began in the late 19th century and was hallmarked by
the preservationist-conservationist debates between naturalist John Muir (1838-1914)
and Gifford Pinchot (1865-1946), the first chief of the U.S. Forest Service. Many of the
early attempts to promote environmentalism involved simply setting aside relatively
undisturbed natural habitats in parks or reserves, but little attention was paid to what
was happening on land already occupied by human industry. In 1962, Rachel Carson's
(1907-64) monumental book on the harmful effects of the pesticide DDT, Silent
Spring, touched off another wave which took hold in the turbulent 1960s and lasted
until the early 1970s. Much of our current environmental legislation stems from
concerns raised during this period. In 1976, marketing scholars Karl E. Henion II, and
Thomas C. Kinnear introduced the concept of ecological marketing as being "concerned
with all marketing activities (1) that have served to help cause environmental problems
and (2) that may serve to provide a remedy for environmental problems." Shortly
thereafter, the nation was hit by hard economic times and little attention was paid to
either the impact of business on the environment or ecological/green marketing
strategies for the remainder of the decade.
In the late 1980s, a renaissance of environmental concern swept through the country,
sparked by fears of global warming, loss of the earth's protective ozone layer,
destruction of tropical rain forests, and changing perceptions of mankind's place in the
world. This "third wave" of environmentalism differed from earlier periods in two
significant aspects: (1) the most pressing environmental problems were now seen as
global, rather than local, in scope; and (2) businesses were responding much more
proactively and much less antagonistically than in former times. Many businesses
believe long-term success in the 21st century will require increased attention to
environmental issues.

Green marketing emphasizes environmental stewardship. Alma T. Mintu and Hector R.

Lozada define green marketing as "the application of marketing tools to facilitate
exchanges that satisfy organizational and individual goals in such a way that the
preservation, protection and conservation of the physical environment is upheld."
Walter Coddington defines environmental marketing as "marketing activities that
recognize environmental stewardship as a business development responsibility and
business growth responsibility." Others have focused more on strategic dimensions in
defining green marketing; for example, Martin Charter defines it as "a holistic and
responsible strategic management process that identifies, anticipates, satisfies and
fulfills stakeholder needs for a reasonable reward, that does not adversely affect human
or natural environmental well-being." Finally, Robert D. Mackoy, Roger Calantone, and
Cornelia Dr6ge differentiate among three aspects of green marketing, which they
identify as demarketing (managing demand to maintain optimal long-term
profitability), green marketing (addressing the needs and wants of a segment of
consumers expressing environmental concerns), and social marketing (adapting
marketing tactics and strategies to the development and promotion of social goals).

All of these definitions enlarge the traditional objective of business to maximize profits
by including some notion of maintaining the integrity of the natural environment.
Operationally, green marketing seeks to satisfy the needs and wants of individual
consumers while simultaneously seeking to improve environmental quality of life for
society as a whole. Environmental concerns thus act as constraints on business
operations, echoing a passage from the Great Law of the Iroquois Confederacy: "In our
every deliberation, we must consider the impact of our decisions on the next seven
generations."
THE GREENING OF BUSINESS
A number of factors have caused business firms to behave more responsibly towards the
natural environment. Perhaps foremost among these is the possibility of capitalizing on
opportunities from the sale of environmental services and/or "earth-friendly" products.
Environmental awareness has increased dramatically, particularly since the organized
environmental movement emerged in the late 1960s. Issues ranging from global
warming to animal rights to species preservation to the protection of wetlands are now
prominent in the media and in the minds of consumers. "Green" consumers have thus
arisen with preferences for products made from recycled materials or products whose
use entails reduced environmental impact. Often such products command premium
prices, and therefore the task of marketers has become all the more crucial.

As landfills fill up and public opposition mounts against opening new ones (the NIMBY,
or "Not In My Back Yard," syndrome), waste treatment and disposal costs rise. Storage,
transport, and disposal of hazardous wastes is quickly becoming unaffordable for many
firms, stimulating a search for less-toxic alternative processes. Furthermore, liability
and litigation costs for environmental damages are skyrocketing with little sign of
abatement. At the time of the first Earth Day in April 1970, there were approximately
2,000 federal, state, and local environmental regulations. In the late 1990s there were
approximately 100,000 such rules. By some estimates, U.S. businesses have spent well
over a trillion dollars since the 1970s on environmental law compliance.

Faced with a growing environmental consciousness, many business firms are adopting a
pro-environment stance in hopes of improving credibility with the public.
Unfortunately, some companies have been a bit overzealous with their environmental
claims, prompting cries of "greenwashing" from critics. Another impetus causing
business to embrace environmental concerns is to attract better employees and/or
improve working conditions. Many young people entering the workforce today exhibit
greater social concerns than those of ten years ago, and many wish to join firms
perceived to be making a positive contribution to society.
Environmental regulations continue to increase in both number and complexity. Some
firms have identified opportunities in this changing legal environment and are making
changes to drive regulation for purposes of competitive advantage. Because many
regulations require use of the "best available technology," firms actively involved in
developing and implementing new technologies may achieve the benefits of monopoly
status for a short while.

Companies are also becoming more environmentally responsible as part of an overall

commitment to Total Quality Management or sustainable development. Sustainable
development involves meeting the needs of the present without compromising the
ability of future generations to meet their own needs.
CRITICISMS OF THE CONSUMPTION
CULTURE
Traditional marketing attempts to identify and meet latent, current, or future consumer
needs by manipulating the so-called four Ps: price, promotion, product, and place
(distribution channels). These objectives have historically been identified with efforts to
increase consumption of material goods and services, practices not particularly
compatible with the notion of a sustainable society. Environmentalists have criticized
various aspects of the consumption culture, particularly its wasteful and pollutive
production and disposal processes. Managers should keep these critiques in mind when
creating green marketing strategies. Green marketing can accommodate these concerns
in a way that remains attractive to consumers by addressing the environmental and
consumer advantages inherent in the product.
GREEN PRODUCTS
There is no widespread agreement on what exactly makes a product green. Some general
guidelines include that a green product

• does not present a health hazard to people or animals;

• is relatively efficient in its use of resources during manufacture, use, and disposal;

• does not incorporate materials derived from endangered species or threatened

environments;

• does not contribute to excessive waste in its use or packaging; and

 • does not rely on unnecessary use of or cruelty to animals.

Other favorable attributes from the green point of view are the incorporation of recycled
materials into the product and the product's own recyclability.

A great deal of work in the determination of these factors is concerned with a product's
environmental impact at various stages of its useful life. Life cycle analysis (LCA)
and product line analysis (PLA) studies measure the environmental impact of products
over their entire life cycle, that is, from the "cradle to the grave." Such studies track
resource use, energy requirements, and waste generation in order to provide
comparative benchmarks enabling manufacturers and consumers to select products
involving the least impact upon the natural environment. Though useful, LCA studies
have been criticized for their subjectivity in setting analysis boundaries and for
difficulties in establishing comparable impacts across environmental media, e.g., "How
many tons of carbon dioxide emissions equal the release of one picogram of dioxin?"

Information from these studies and additional consumer research is being used to
develop new products and to redesign existing products and services in order to reduce
environmental impact. The U.S. Office of Technology Assessment (OTA, a congressional
research department that was closed in 1994) advocated green design: "a design process
in which environmental attributes are treated as design objectives, rather than as
constraints … green design incorporates environmental objectives with minimum loss to
product performance, useful life or functionality." "Design for the environment," "design
for durability," and "design for disassembly" have become popular phrases at companies
seeking to prevent waste and manage material flows more efficiently. Products and
packaging are being redesigned to use less materials or to be easily disassembled so
high-value components can be recycled or refurbished more readily. Of course,
numerous trade-offs must be made weighing health and safety attributes and consumer
desires for convenience against packaging, energy use, and recycling requirements.
GREENER PRICING
A central concern of many environmentalists is that product prices do not reflect total
environmental costs. Waste disposal costs, for instance, are frequently incurred on a
fixed-fee basis, regardless of how much waste is actually generated. Similarly, the
national accounting systems of most countries do not incorporate the costs of
environmental degradation or depletion. After-the-fact expenditures on pollution
control and remediation are included, albeit as income. Greener pricing decisions are
based on the premise that goods and services associated with greater environmental
damage should cost more.

A number of companies have undertaken audits of their production processes to identify

hidden environmental costs and to provide better information for pricing decisions.
Emissions charges, carbon taxes, and increased fines are possible methods governments
might use to implement better environmental costing. European firms have been
particularly proactive in this area, developing a method of environmental auditing
(the ecobalance) bridging the gap between standard accounting practice, in which
data are expressed solely in conventional monetary terms, and qualitative
environmental impact reports.

Research conducted by the Roper Organization in 1990 identified five different groups
of environmental consumers with varying degrees of commitment to purchasing
environmental products. The premium on a product's price tag people were willing to
pay for perceived environmental benefits varied widely from about 3 percent for the
least-committed group to approximately 20 percent for individuals espousing the
highest level of commitment. Across the board, consumers indicated a willingness to pay
an average premium of approximately 6.6 percent for products with positive
environmental attributes. Attitudes do not always translate into action, of course, but
environmental attributes do seem to be "tiebreakers" for customers faced with a choice
between two products offering similar benefits and prices.

In 1996 Roper conducted another study to examine the demographics of green

consumers. The study revealed, for example, that women were on average slightly more
likely to be green-conscious consumers than were men. Those over the age of 60
constituted the least likely green consumption demographic. Furthermore, there was a
general indication of greater green consciousness in the consumption habits of people in
higher income brackets and with greater educational backgrounds. However, between
1990 and 1996, the overall percentage of the U.S. population committed to green
products actually seemed to decline, particularly as measured by how much extra they
were willing to pay. The average premium among all environmental consumers was just
4.5 percent, according to the survey, down by nearly a third from 1990. Overall, the
number of people who expressed the highest commitment to the environment declined,
and the number voicing the least concern grew. The middle group, which expressed only
limited commitment to environmental causes but was still willing to pay on average 4
percent extra for green products, expanded from a quarter of the population to one-
third. As of 1996, the two of the five groups that were most committed made up just 15
percent of the population, while the two groups that were least committed accounted for
52 percent.
GREEN PROMOTION
Perhaps no area of green marketing has received as much attention as promotion. In
fact, green advertising claims grew so rapidly during the late 1980s that the Federal
Trade Commission (FTC) issued guidelines to help reduce consumer confusion and
prevent the false or misleading use of terms such as "recyclable," "degradable," and
"environmentally friendly" in environmental advertising.

The FTC offers four general guidelines for environmental claims:

1. Qualifications and disclosures should be sufficiently clear and prominent to prevent

deception.

2. Environmental claims should make clear whether they apply to the product, the package,
or a component of either. Claims need to be qualified with regard to minor, incidental
components of the product or package.

3. Environmental claims should not overstate the environmental attribute or benefit.

Marketers should avoid implying a significant environmental benefit where the benefit
is, in fact, negligible.

4. A claim comparing the environmental attributes of one product with those of another
product should make the basis for the comparison sufficiently clear and should be
substantiated.

The FTC's Environmental Marketing Guidelines provides additional guidance for a

number of specific claims including "Degradable/Biodegradable/Photodegradable,"
"Compostable," "Recyclable," "Recycled Content," "Source Reduction," "Refillable," and
"Ozone Safe/Ozone Friendly." They strongly recommend avoidance of overly general
claims such as "environmentally friendly." In 1996, the FTC updated the guidelines,
substantially refining and detailing these issue-specific guidelines in order to over-come
what critics called the ambiguous nature or "flexibility" of private labeling practices.

ECO-LABELING.
Environmental certification or labeling programs attempt to increase consumer
awareness and knowledge of environmental issues. Marketers use eco-labels to convey
information about a product's environmental benefits and to differentiate among
competing products. Eco-labels may identify a product's contents, e.g. the triangular
arrangement of arrows on recycled paper and plastic products, or highlight other
benefits, e.g., reduced water usage or increased energy efficiency. At least 25 countries
maintain eco-seal programs, usually whereby seals are awarded for specific
environmental attributes. Germany's "Blue Angel" program is the oldest and most
successful eco-labeling program. Introduced in 1977 by the federal minister and
ministers for environmental protection of the various German states, it now appears on
more than 4,000 different products. The Blue Angel is awarded on the basis of
comparisons with similar products, and is designed to guide consumers in their
purchasing decisions. For instance, a product may have particularly low pollutant or
noise emissions, entail less wastes in its production, or be designed for easier recycling
than its competitors. The Blue Angel has proven to be a useful selling tool in Germany's
ecologically conscious society. A few other countries have established eco-labels, though
none has yet had as great an impact as the Blue Angel.

In the United States, two private firms, Scientific Certification Systems and Green Seal,
have developed guidelines to identify environmentally preferable products. Scientific
Certification Systems, a private testing concern, awards a "Green Cross" for products
meeting very specific criteria, e.g. X percent recycled content, less than Y percent
pesticide residues, and so on. Green Seal, a nonprofit organization formed in 1990, is
engaged in more ambitious efforts using life-cycle analysis to identify a product's impact
on the environment at all stages of its life. The group has demarcated 84 categories of
products (and according standards) that qualify for certification.

Eco-labeling programs increase awareness of environmental issues, set high standards

for firms to work towards, and help reduce consumer uncertainty regarding a product's
environmental benefits. They have also been criticized as confusing, misleading, overly
simplistic and prone to manipulation by firms with less-than-honorable intentions.
Thus far, aside from some Environmental Protection Agency (EPA) programs discussed
below, the U.S. government has resisted instituting an officially sanctioned eco-label
program.

ECO-SPONSORING.
Another avenue for companies to promote their ecological concern is to affiliate
themselves with groups or projects engaged in environmental improvements. In its
simplest form, firms contribute funds directly to an environmental organization to
further the organization's objectives. Another approach is to "adopt" a particular
environmental cause, e.g. a community recycling program, demonstrating the
company's willingness to put its money and its reputation on the line. Sponsoring
educational programs, wildlife refuges, and clean-up efforts communicates a firm's
commitment to finding environmental solutions. Partnerships with environmental
organizations can open lines of communication and provide new perspectives on
"business as usual."

The EPA, for example, sponsors the Energy Star and Green Lights Buildings programs,
in which partners in industry agree to upgrade their facilities over time to reflect
environmental concerns (usually energy efficiency and waste minimization). The EPA,
in turn, agrees to provide technical support and labeling, which contributes to a green
marketing program.

In considering an eco-sponsorship, firms must address the problems of legitimacy and

believability. Not all environmental sponsorships are legitimate or appropriate for a
particular company's needs. Chemical firms, for instance, may find it difficult to support
Greenpeace's anti-chlorine campaign. Believability is even more critical. Business firms
consistently rate lowest in surveys of credibility with consumers. Ecosponsoring should
not be used as an alibi for a firm's day-to-day actions.
GREENER DISTRIBUTION
Logistics and transportation costs are coming under greater scrutiny due to rising fuel
prices, congested highways, and global-warming concerns. Package redesign for lighter
weight and/or greater recyclability reduces waste while simultaneously reducing costs.
In some countries, marketers must also consider two-way flows, as governments pass
legislation requiring manufacturers to take back products at the end of their useful life
("reverse logistics"). Germany is again the world leader in this arena; it has already
passed ordinances targeting the electronics, automobile, and packaging industries.

Faced with the undesirable option of accepting used packaging from consumers,
German manufacturers banded together in 1990 to create the "Dual System"—an
alternative, country-wide waste management system that guaranteed the collection and
recycling of various packaging materials. Administered by the Duales System
Deutschland (DSD), a consortium of retailers, distributors, manufacturers, waste
haulers, and recycling firms, the system requires manufacturers to pay a small fee for
the right to display a green dot (griinerPunkt) on their products, indicating that the
packaging is eligible for recycling by the DSD.

Green marketing strategies are also reducing inventory and production costs.
Standardization and identification of product parts and packaging materials benefits the
environment by reducing complexity and improving efficiency. Substituting electronic
or computer controls for analog devices improves quality and reduces waste.
STRATEGY AND TACTICS
Green marketing as a subdiscipline is only a few decades old, and much remains to be
learned about consumer preferences, product substitutions, and environmental
tradeoffs. Nonetheless, a few principles useful in developing a green marketing strategy
have emerged.

Perhaps most obviously, the more recognizable the "green credentials," the greater the
chances of a successful marketing campaign. A green product that properly addresses a
well-known environmental issue of prominent concern, or that displays a well-
established and respected eco-seal, will be more likely to win favor among green
consumers.

In reacting to environmental constraints required by green marketing, managers should

apply the Precautionary Principle. Environmental issues are fraught with scientific and
social uncertainties. There is significant debate, for example, regarding the effects of
global warming and thinning of the ozone layer. In designing new products and services,
marketers should choose a strategy providing benefits even if the environmental issue
proves inconsequential. For example, improving energy efficiency reduces carbon
dioxide emissions, a primary factor in global warming. It also reduces energy use and
saves money, making it a "no regrets" decision, even if global warming is not as severe a
problem as some environmentalists suggest.

Governments are increasingly adopting the "polluter pays" principle, establishing

environmental liability for manufacturers and businesses engaged in polluting activities.
Neither environmental legislation nor waste cleanup costs are likely to decrease in the
coming decades, suggesting that a proactive strategy aimed at reducing waste and
pollution at the source will yield both financial and environmental benefits.
Indeed, pollution prevention is recommended by the U.S. Environmental Protection
Agency as the most appropriate course of action for dealing with environmental
problems. Firms needing an extra nudge towards this position might consider the
features of the federal government's Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (Superfund), which assigns retroactive
and shared liability to owners, transporters, and generators of hazardous wastes that
violate its requirements.

The so-called principle of cooperation advises marketers to interact more closely with
communities and governments in addressing environmental problems and
communicating their respective expectations and concerns. Failure to work together on
a voluntary basis may lead to additional regulations and requirements. For example, the
Chemical Manufacturers' Association, a trade organization representing approximately
90 percent of basic industrial chemical production in the United States, requires its
members to subscribe to the principles of Responsible Care, a program designed to
improve communication about environmental, health, and safety issues between
workers and communities. The European Union's Eco-Audit program, also
administered on a voluntary basis, shows promise in creating greater opportunities for
communication and cooperation between industry, communities, and governments.

Numerous product success stories are associated with the implementation of these
strategies. Low-phosphate detergents, CFC-free refrigerators, high-efficiency light bulbs,
low-emissions gasoline, lighter-weight packaging, powder paint sprays, and high-quality
clothing made from recycled soda bottles are among many examples which might be
mentioned. Partnerships between environmental groups and business organizations,
such as the Environmental Defense Fund's work with the McDonald's restaurant chain,
have increased communication and fostered better understanding of each group's
objectives.
CONCLUSION
Green marketing is based on the premise that businesses have a responsibility to satisfy
human needs and desires while preserving the integrity of the natural environment.
That this latter concern has been ignored throughout most of recorded human history
does not mean it will be unimportant in the future. Indeed, there are significant
indications that environmental issues will grow in importance over the coming years
and will require imaginative and innovative redesign and reengineering of existing
marketing efforts on the part of many businesses. Solutions to environmental problems
can be characterized into roughly three categories: ethical, legal, and business
(economic and technological). Long-term sustainability of the planet is likely to require
some rather distinct changes in the ethical behavior of its human population. Barring a
crisis, these changes will probably be a long time coming. Legislation is a useful tool for
effecting social change; it has a tremendous advantage over moral persuasion in terms
of speed and efficacy of implementation, although its results are not always as intended.
In the short term, business solutions—the enlightened self-interest of commercial
enterprises finding new ways to incorporate technology and carry on exchanges with
greater concern for heretofore unpriced environmental goods and services—offer
particular promise. Green marketing and the promotion of responsible consumption are
part of that solution.

SEE ALSO : Business and Society ; Environmental Law and Business

[ Mark A. White ]
FURTHER READING:
Fuller, Donald A. Sustainable Marketing: Mancigerial-Ecological Issues. London: Sage
Publications, 1999.

Mintu-Wimsatt, Alma T., and Michael J. Poloinsky, eds. Environmental Marketing;

Strategies, Practice, Theory, and Research. Binghamton, NY: Haworth Press, 1995;

Ottman, Jacquelyn A. and Reilly, William K. Green Marketing:

Opportunity for Innovation. Lincolnwood, IL: NTC Business Books, 1998.

Smith, Toby. The Myth of Green Marketing: Tending Our Goats at the Edge of
Apocalypse. Toronto: University of Toronto Press, 1998.

Speer, Tibbett L. "Growing in the Green Market." American Demographics, August

1997.

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 Home > Library > Business & Finance > Marketing Dictionary

Promotion of environmentally safe or beneficial products. Green marketing began in Europe in the
early 1980s when certain products were found to be harmful to the earth's atmosphere. Consequently
new types of products were created, called "green" products, that would cause less damage to the
environment. The movement quickly caught on in the United States and has been growing steadily
ever since. The development of ecologically safer products, recyclable and biodegradable packaging,
energy-efficient operations, and better pollution controls are all aspects of green marketing. Green
marketing has produced advances such as packages using recycled paper, phosphate-free detergents,
refill containers for cleaning products, and bottles using less plastic.

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Environmentally-responsible or "green" marketing is a business practice that takes into account

consumer concerns about promoting preservation and conservation of the natural environment. Green
marketing campaigns highlight the superior environmental protection characteristics of a company's
products and services, whether those benefits take the form of reduced waste in packaging, increased
energy efficiency in product use, or decreased release of toxic emissions and other pollutants in
production. As the Encyclopedia of the Environment noted, marketers have responded to growing
consumer demand for environment-friendly products in several ways: "by promoting the
environmental attributes of their products; by introducing new products; and by redesigning existing
products—all components of environmental marketing." Indeed, marketing campaigns touting the
environmental ethics of companies and the environmental advantages of their products
have proliferated in recent years.
Most observers agree that while some businesses engage in green marketing solely because such an
emphasis will enable them to make a profit, other businesses conduct their operations in an
environmentally-sensitive fashion because their owners and managers feel a responsibility to preserve
the integrity of the natural environment even as they satisfy consumer needs and desires. Indeed,
true green marketing emphasizes environmental stewardship. Environmental Marketing author Walter
Coddington, for example, defined environmental marketing as "marketing activities that recognize
environmental stewardship as a business development responsibility and business growth
responsibility." Another analyst of green marketing, Greener Marketing editor Martin Charter, defined
the practice as "a holistic and responsible strategic management process that identifies, anticipates,
satisfies and fulfills stakeholder needs for a reasonable reward that does not adversely affect human
or natural environmental well-being." Such interpretations expand on the traditional understanding of
business's responsibilities and goals.
Reactions to "green Consumerism"
A number of factors have caused business firms in some industries to incorporate an environmental
ethic into their operations. The principal factor, of course, is the growing public awareness of the
environmental degradation that has resulted as a consequence of the growth in population and natural
resource consumption throughout the world during the last 50 years. The issue is particularly relevant
in America, which accounts for fully one quarter of world consumption despite having only a small
fraction of the world's population. This growing public awareness of environmental issues has brought
with it a corresponding change in the buying decisions of a significant segment of American
consumers. As the Encyclopedia of the Environmentobserved, "many consumers, and not just the
most environmentally conscious, are seeking ways to lessen the environmental impacts of their
personal buying decisions through the purchase and use of products and services perceived to be
environmentally preferable."
Businesses took heed of this growth in "green consumerism," and new marketing campaigns were
devised to reflect this new strain of thought among consumers. Companies with product lines that
were created in an environmentally friendly fashion (i.e., with recycled products, comparatively low
pollutant emissions, and so on) quickly learned to shape their marketing message to highlight such
efforts and to reach those customers most likely to appreciate those efforts (an advertisement
highlighting a company's recycling efforts, for instance, is more likely to appear in an outdoor/nature
magazine than a general interest periodical).
Ironically, studies have shown that the most environmentally aware consumers are also the ones most
likely to view green claims of companies with skepticism. As George M. Zinkhan and Les Carlson wrote
in the Journal of Advertising, "green consumers are the very segment most likely
todistrust advertisers and are quite likely to pursue behaviors and activities that confound business
people." Corporate reputation, then, has emerged as a tremendously important factor in reaching and
keeping these consumers. A company that touts its sponsorship of an outdoor oriented event or
utilizes nature scenery in its advertising, but also engages in practices harmful to the environment, is
unlikely to gain a significant portion of the green consumer market. Of course, such tactics are
sometimes effective in reaching less informed sectors of the marketplace.
Environmental or green marketing differs from other forms of advertising in some fairly fundamental
ways. The Encyclopedia of the Environment summarized the most striking differences effectively:
"First, unlike, price, quality, and other features, the environmental impacts of a product are not
always apparent and may not affect the purchaser directly. Thus environmental claims are often more
abstract and offer consumers the opportunity to act on their environmental concerns. Second, unlike
most advertised product attributes, environmental claims may apply to the full product life cycle, from
raw material extraction to ultimate product disposal, reuse, or recycling [see the discussion of life
cycle analysis below]. Third, and most important, environmental marketing provides an incentive for
manufacturers to achieve significant environmental improvements, such as toxics use reduction and
recycling, by competing on the basis of minimizing environmental impacts of their products."
Green Products
In their book The Green Consumer, John Elkington, Julia Hailes, and John Makower discussed several
characteristics that a product must have to be regarded as a "green" product. They contended that a
green product should not:
• Endanger the health of people or animals
• Damage the environment at any stage of its life, including manufacture, use, and disposal
• Consume a disproportionate amount of energy and other resources during manufacture, use,
or disposal
• Cause unnecessary waste, either as a result of excessive packaging or a short useful life
• Involve the unnecessary use of or cruelty to animals

• Use materials derived from threatened species or environments

J. Stephen Shi and Jane M. Kane, meanwhile, noted in Business Horizons that the consulting firm
FIND/SVP also judged a product's friendliness to the environment by ultimately simple measurements:
"FIND/SVP considers a product to be 'green' if it runs cleaner, works better, or saves money and
energy through an efficiency. Businesses practice being green when theyvoluntarily recycle and
attempt to reduce waste in their daily operations. Practicing green is inherently proactive; it means
finding ways to reduce waste and otherwise be more environmentally responsible, before being forced
to do so through government regulations. Green promotion, however, requires businesses to be
honest with consumers and not mislead them by over promising."
LIFE CYCLE ANALYSIS. Most analysts agree that the "life" of the product and its parts is one of the
most important components in determining whether a product is "green" or not. Most people think
only of the process of creating a product when gauging whether a product is green, but in reality,
products impact on the environment at several additional stages of their useful lives. Life cycle
analysis (LCA) and/or product line analysis (PLA) studies measure the cumulativeenvironmental
impact of products over their entire life cycle—from extraction of the resources used to create the
product to all aspects of production (refining, manufacturing, and transportation) to its use and
ultimate disposal. These studies are sometimes referred to as "cradle to grave" studies. Since such
studies track resource use, energy requirements, and waste generation in order to provide
comparative benchmarks, both manufacturers and consumers can select products that have the least
impact upon the natural environment. Some detractors of LCA studies, though—while granting that
they do provide useful information—contend that they are subjective in setting analysis boundaries
and claim that it is difficult to compare the environmental impact of disparate products.
Green Promotion
Perhaps no area of green marketing has received as much attention as promotion. In fact, green
advertising claims grew so rapidly during the late 1980s that the Federal Trade Commission (FTC)
issued guidelines to help reduce consumer confusion and prevent the false or misleading use of terms
such as "recyclable," "degradable," and "environmentally friendly" in environmental advertising. Since
that time, the FTC has continues to offer general guidelines for companies wishing to make
environmental claims as part of their promotional efforts:
• Qualifications and disclosures should be sufficiently clear and prominent to prevent deception.
• Environmental claims should make clear whether they apply to the product, the package, or a
component of either. Claims need to be qualified with regard to minor, incidentalcomponents
of the product or package.
• Environmental claims should not overstate the environmental attribute or benefit. Marketers
should avoid implying a significant environmental benefit where the benefit is, in
fact, negligible.
• A claim comparing the environmental attributes of one product with those of another product
should make the basis for the comparison sufficiently clear and should be substantiated.
The FTC regulations apply to all aspects and forms of marketing, including labeling, advertising, and
promotional materials. "When a business makes any environmental claim, it must be able to support
that claim with reliable scientific evidence," summarized Shi and Kane. "A corporation trumpeting an
environmental benefit that it is unable to substantiate is treading on thin ice and leaving itself open to
substantial penalties if a legal suit is brought against the company."
In addition to delineating marketing claims that might be regarded as false or misleading, the FTC also
provides guidance to businesses on how to make specific claims about environmentally-friendly
aspects of their operation, in part by clarifying the definitions of such commonly used terms as
"recyclable," "biodegradable," and "compostable." These guidelines were issued (and remain in force)
not only to curb businesses engaged in misleading advertising practices, but also to clarify the
regulatory environment for companies. Various entities, from states and cities to industry groups and
standards-setting organizations, had developed their own definitions in the years prior to the
publication of the FTC report precisely because of the dearth of federal guidelines. "As a
consequence," said the Encyclopedia of the Environment, "marketers faced apatchwork and
sometimes costly marketplace where relabeling, legal actions, and negative publicity can create
additional costs, can cause market share losses, and may deter some from making credible claims
altogether."
Eco-Sponsoring
One avenue commonly used by companies to promote their specific ecological concerns (or polish
their overall reputations as good corporate citizens) is to affiliate themselves with groups or projects
engaged in environmental improvements. In eco-sponsoring's simplest form, firms contribute funds
directly to an environmental organization to further the organization's objectives. Another approach is
to "adopt" a particular environmental cause (community recycling programs are popular), thus
demonstrating the company's interest in supporting environmental protection efforts. Sponsorships of
educational programs, wildlife refuges, and park or nature area clean-up efforts also communicate
concern for environmental issues. Environmental organizations charge, however, that some
businesses use eco-sponsorships to hide fundamentally rapacious attitudes toward the environment.
Eco-Labeling
Another vehicle that has been used with increasing frequency in recent years to convey environmental
information to consumers is "eco-labeling." Ecolabeling programs are typically voluntary, third-party
expert assessments of the environmental impacts of products. "By performing a thorough evaluation
of a product, but awarding only a simple logo on packages, ecolabels offer consumers clear guidance
based on expert information," claimed the Encyclopedia of the Environment, which noted that
government-sponsored ecolabeling programs have been launched with great success in many areas of
the world, including Europe, Canada, and Japan. Indeed, those programs, which provide consumers
with easily understandable information on the most environmentally sensitive products and services in
various market areas, can be a potentfactor in guiding the purchasing decisions of consumers.
Recognition may be given for several different reasons. For instance, a product may have particularly
low pollutant or noise emissions, give off less waste material in its production, or be more recyclable
than competing products.
Eco-labeling programs increase awareness of environmental issues, set high standards for firms to
work towards, and help reduce consumer uncertainty regarding a product's environmental benefits.
Thus far, however, the U.S. government has resisted instituting an officially-sanctioned eco-labeling
program.
Further Reading:
Charter, Martin. "Greener Marketing Strategy." Greener Marketing. Greenleaf Publishing, 1992.
Coddington, Walter. Environmental Marketing. New York: McGraw-Hill, 1993.
Elkington, John, Julia Hailes, and Joel Makower. The Green Consumer. 1993.
Meiklejohn, Gregg. "The Marketing Value of Environmental Stewardship." Direct Marketing. October
2000.
Meyer, Harvey. "The Greening Corporate America." Journal of Business Strategy. January 2000.
Ottman, Jacquelyn A. "Back Up Green Programs with Corporate Credibility." Marketing News.October
28, 1998.
Ottman, Jacquelyn A. Green Marketing. NTC Business Books, 1993.
Rehak, Robert. Greener Marketing and Advertising: Charting a Responsible Course. Rodale Press,
1993.
Shi, J. Stephen, and Jane M. Kane."Green Issues." Business Horizons. January-February 1996.
Stoeckle, Andrew, et al. "Green Consumerism and Marketing." Encyclopedia of the Environment,Ruth
A. Eblen and William R. Eblen, eds. Houghton Mifflin, 1994.
Zinkhan, George M., and Les Carlson."Green Advertising and the Reluctant Consumer." Journal of
Advertising. Summer 1995.
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 wind energy policy, transmission & regulation
licy Principles of Green Marketing
EA Policy Portfolio
an Air
Adopted By the Board of Directors of the
American Wind Energy Association
duction Tax Credit
• Summary
newables Portfolio
ndard (RPS) • Power from Emerging Renewable Resources
ng Policy • Make a Difference
nsmission Policy • Avoid Distinctions between "Existing" and "New" Renewables
ntact AWEA Policy • Fully Disclose Product Contents
cy Home • Document Claims
• No Excessive Prices
• No Advance Premiums and Donations
• Universal System of Price
• Support Public Policies that Advance Sustainable Energy Goals
eas of interest
AWEA has developed the following principles in an effort to foster a credible market in
nd Energy Basics environmentally-preferable electric services and one that results in meaningful
changes in the electric system as a whole. AWEA will periodically revisit these
EA Events
principles, adding and modifying recommendations where appropriate, as the green
market evolves and new information is gained. (Note: these guidelines apply to utility
"green pricing" programs as well as green marketing that occurs in a competitive retail
market.)
Summary of Principles
Issues Related to Product Content and Related Claims
1. Include power from emerging renewable resources (wind, solar,
biomass, geothermal).
2. Make a difference. Marketed renewables should be above and beyond
any renewables requirements. Ratebased resources should be
marketed only under certain circumstances.
3. Avoid distinctions between "existing" and "new"renewables.
4. Fully disclose product contents and provide information to allow on-
going product verification (in the absence of uniform disclosure
requirements).
5. Document claims that power from undesirable sources is not being
 supported.
6. Do not charge excessive prices.
7. Do not collect premiums in advance and avoid donation programs.
8. Other Issues.
9. Support a universal system of price, fuel mix and emissions
disclosure.
10. Support public policies that advance sustainable energy goals.
Principles and their Rationales
Include power from emerging renewable resources (wind, solar, biomass,
geothermal).
Green marketing can improve the environmental profile of the U.S. electricity
supply if marketers sell a power product that includes a substantial fraction of
wind, geothermal, biomass (including landfill gas) and/or solar resources. The
generation of power from these renewable resource technologies produces
few or no air emissions, no carbon (no net carbon, in the case of biomass),
and do not cause irreparable damage to river ecosystems. They will be most
vulnerable in competitive markets and can most benefit from consumer
support. While "green" is difficult to define, and arguments can be made that
natural gas and large hydropower are less environmentally harmful than coal,
oil, and nuclear power, green-customer demand is unlikely to exceed the
supply of large, existing quantities of gas and hydro resources. To make a
difference in the amount of emerging renewable resources in the electric
system, "green" endorsements should be limited to portfolios that include
substantial amounts of wind, solar, biomass and geothermal resources. The
balance of the product should contain no greater fraction of nuclear- or coal-
fired power than would otherwise be provided by the system mix.
TOP
Make a difference. Marketed renewables should be above and beyond any
renewables requirements. Ratebased resources should be marketed only
under certain circumstances.
Green marketing can make a difference by building total consumer demand
for renewables and ultimately increasing the supply of renewables in the
marketplace. This argues against creating artificial distinctions among
renewable resources (see next principle). There are, however, some
situations in which it would be inappropriate to market certain renewable
resources. These situations may include those in which: (a) consumer
purchases would clearly not make a difference in the total demand/supply
picture, (b) consumers would be treated unfairly, or (c) an unfair advantage
for existing power providers (i.e., utilities) would be created in competitive
markets. All three could occur at once.
Example 1 -- Mandated Renewables. Where a marketer is required by law to
have a certain amount of renewable power in its resource portfolio, marketing
that power separately at a premium would make no difference in the total
amount of renewable energy in the system. Similarly, consumers should not
be asked to pay extra for environmental practices that are already required
by law (e.g., hydro spills required to protect fish). In these cases, green
consumers would simply be picking up a larger share of the tab that would
otherwise be shared by all consumers, and markets for other renewables
would be dried up. If the marketer wishes to sell the mandated resources to
consumers along with additional benefits (e.g., offering consumers a long-
term fixed rate in exchange for their purchase), it should clearly inform
consumers that the renewable power would be generated regardless of their
purchase in order to avoid misleading them.
Example 2 -- Renewables Already Paid for by Ratepayers. In some cases, the
cost of renewable capacity and/or energy is included in the rates being paid
by utility customers. This may occur when costs are included in a utility's
ratebase, when a utility passes contract costs through to ratepayers, or when
ratepayers are paying the costs in a fixed stranded-asset charge. (a) Where
renewable resource costs are already being paid for by consumers, they
should be marketed at a premium only when the green sales result in
additional generation from those resources and a commensurate price is
charged. Otherwise, the green marketing would result in cost-shifting or
double-charging. (b) Resources that are already being charged to consumers
by a utility should not be sold in competitive markets outside of the utility's
territory. A utility should be able to market renewable resources when they
have been removed from rates and placed within an unregulated subsidiary.
Otherwise, utility shareholders assume no risk and gain an unfair competitive
advantage against companies who do not have access to ratepayer-subsidized
resources and must take additional risks to participate in the green market.
Absent a rate case or other adjustments to lower rates to reflect the green
sales, utility shareholders would gain at the expense of ratepayers, who
would no longer have access to the green resources they have paid for. In
some cases, sale of the green resource could result in greater generation
from local fossil fuel resources, leaving local consumers environmentally
disadvantaged.
TOP
Avoid distinctions between "existing" and "new" renewables.
Markets work effectively by rewarding the lowest-cost producers, whether
they are existing producers or new entrants. Building demand for renewable
resources will attract competitors and influence incremental investment
decisions made in the power industry in favor of a renewable resource (the
investment may be in refurbishing existing equipment or in a new plant).
Each purchasing decision can make a difference in pushing toward that next
investment in renewable energy supply. Some believe that the total amount
of renewables in the system can be increased the fastest by drawing a
distinction between "existing" and "new" resources, and by favoring the
latter. We believe this is inappropriate for a number of reasons.
First, a new project may not need support while an existing project might. For
example, a new project whose "above market" costs are being fully covered
by a government subsidy may not need additional consumer support,
whereas an existing project receiving market prices that are inadequate to
sustain operations may. Second, from an environmental perspective, it makes
no sense to build a new project (new roads, power lines, etc.) while an
existing project languishes, if it is possible to maintain or repower the existing
project at the same or lower cost. Third, definitions of "new" are problematic
(e.g., when does "new" become "old"?). Fourth, it is unfair to penalize early
investors in renewable energy by classifying their product as somehow
inferior. It is best to allow the market to displace existing renewable
resources when new ones of greater value or lower cost are available.
This principle does not mean that marketers cannot tout a new project if that's what
they are doing and selling. However, marketers should not imply that new is better
simply because it is new, or that existing renewables are somehow unworthy of
support simply because of the fact that they were built earlier.
Fully disclose product contents and provide information to allow on-going
product verification (in the absence of uniform disclosure requirements).
In the absence of uniform public disclosure requirements, green marketers
should voluntarily disclose portfolio contents to consumers, including
percentages of emerging renewable resources, in all product advertisements
and billing statements to the maximum extent practicable. Marketers should
also provide all necessary information to government agencies and private
organizations seeking to verify those claims. Otherwise, it will be difficult, if
not impossible, for consumers to know what they are purchasing and for
interested parties to verify green claims.
Document claims that power from undesirable sources are not being
supported.
Where marketing and advertising claims involve the exclusion of nuclear- or coal-fired
power, those resources must not be supported in any way by the green purchase (with
the exception of incidental system power balancing requirements and ancillary
services). Electrons and dollars are fungible, so the marketer must prove that
consumer dollars do not in any way support the bads.
Do not charge excessive prices.
Reasonable prices for renewable energy products would be a natural outcome of a
market that is vibrantly competitive and in which consumers have good information.
And, where consumers have choices, informed consumers can be trusted to decide
whether product benefits are worth the price. However, many consumers are unaware
that the cost of renewable energy has fallen dramatically in the last decade, and if
excessive prices are charged for renewable energy it will give the public the
impression that renewables cost more than they actually do, which could decrease
support for public policies promoting renewables and reduce the size of the market for
renewables. Green marketers that charge prices that are clearly out of proportion to
the actual cost of renewable energy, after factoring in reasonable marketing costs and
rewards for risks taken, should expect some criticism.
TOP
Do not collect premiums in advance, and avoid donation programs.
Collecting premiums in advance invites abuse. Consumers should not be asked to pay
for someone else's investment when they get nothing in return. Green purchases that
are product- oriented rather than donation or promise-oriented are likely to be more
successful. Collecting expressions of interest or agreements to purchase power when it
becomes available are more appropriate methods of securing consumers.

Other Issues
Support a universal system of price, fuel mix and emissions disclosure.
To encourage a market in "green," consumers must have information that
allows them to comparison shop among all suppliers on the basis of the costs
and the environmental characteristics of their resource portfolio. This
necessarily requires disclosure of price, fuel mix, and emissions on a
consistent basis—not just for those claiming "greenness," but for all suppliers.
Without uniform disclosure requirements, the burden will fall on green
marketers to investigate their competitors' portfolios and educate consumers
 about them—a difficult and expensive task. Even then, consumers may be
mistrustful of green claims. Any green marketer with a worthy product has an
interest in disclosure requirements because it will give legitimacy and value to
its product. In a truly competitive market with full disclosure, we can expect
competitors to "bid up" the amount of renewables to attract environmentally-
concerned consumers. Disclosure mechanisms should be designed to
minimize public and private administrative costs, such as a "tradable tag"
approach.
Support public policies that advance sustainable energy goals.
Encouraging individuals to take responsibility for the environmental impacts
caused by their own personal electricity consumption is an important element
of moving to a more sustainable electricity supply. Green marketing is also an
important part of advancing renewable energy in the marketplace. However,
green marketing it is not an adequate substitute for public policies that
correct the market failures that will hinder renewables and cleaner fossil
resources in the market and that set the electric industry on a sustainable
course. Moreover, in order for consumers to have the choice of purchasing
renewable energy, we must have strong renewable energy industries. Given
the high entry barriers in the electric industry, we must ensure that a
meaningful base of renewables is built into the system. The green marketer
who is truly interested in significantly advancing renewables will:
• support transmission and system operation rules that treat intermittent
renewable resources fairly,

• support strong renewable energy and environmental policies in the states and
Congress,

• not represent green marketing as an adequate substitute for either of the

above.

TOP

mber Center | News | About AWEA | Events | Legislative | Policy | Small Wind | Publications | Resources | Utility | Top of Page
RICAN WIND ENERGY ASSOCIATION®
1 M Street, NW, Suite 1000 | Washington, DC 20005 | Phone: 202.383.2500 | Fax: 202.383.2505 | windmail@awea.org
yright 1996 - 2009 American Wind Energy Association. All Rights Reserved.
Guide | Please report bad links and technical problems to web support.

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Keyw ord Sea

e
ibe
xclusives
agazine

cs
stries
edge Centers
esources
/Programs

ays to Promote Green Marketing Share

y Edwards, director of corporate and social responsibility at the Direct Marketing Association, describes the top P
ds in "going green."
est of the April 2010 issue of CRM magazine please click here C
(

•
Integrating green initiatives into every aspect of the
organization:Companies are trying to link the corporate br
efforts in social responsibility, Edwards says—and environme
stewardship can affect the bottom line as it improves custom
relationships. At United Parcel Service (UPS), for example, n
systems enabled a “No Left Turn” rule to eliminate costly lef
drivers’ routes. According to The New York Times, UPS spok
Heather Robinson reported that the company shortened deli
million miles, saving 3 million gallons of gas and reducing carbon emissions by 31,000 metric tons. “They’re tying their brand image to efficiency
ental savings,” Edwards says.
ecolabels and ecologos on products or marketing materials: Perhaps the most well-known ecolabel is the recycling symbol composed of c
eated in 1970 by Gary Anderson, who won a graphics and design competition hosted by the Container Corporation of America. Since then, a si
f labels have popped up, some of which have contributed to an industry malfeasance known as “greenwashing.” (See the sidebar, “The 7 Sins o
hing.”) Other widely recognized symbols include the USDA Organic, which signifies the use of organic ingredients in food; Forest Stewardship C
wood and paper products produced in methods that advocate responsible forestry; and Energy Star identifies home, building and construction,
s that are energy efficient.

nt to Successfully Deploy At-Home Call Center Agents. This white paper overviews essential best practices for successfully deploying an a
ution.Click here to download.

pting these labels, Edwards warns marketers to be careful—while it can help inform consumers, oversaturation of labels in the market has resu
For the most part, consumers today only recognize a handful of labels. Therefore, marketers must identify whether the logo: a) is credible; b)
ul and recognizable by the intended audience; and c) fits with the organization’s message.
ng customers in green marketing: Companies are looking to motivate consumers by encouraging them to participate and engage in the cam
ith the product. Marketers that send out direct mail pieces can put links directing marketers to participate in green programs online, or do some
ask customers to recycle the mail after reading. Edwards has seen largely positive feedback from marketers who’ve attempted to bring custom
number of those doing so is growing but still pretty small, Edwards admits. Only about 100 marketers have enlisted in the DMA’s “Recycle Pleas
wide public education campaign where DMA members are asked to display a “Recycle Please” logo in catalogues and direct mail pieces.
and respecting customer choices and preferences: Segmentation is a practice that goes back to Marketing 101. Companies that are lever
data and respecting their preferences will inevitably have fewer unnecessary mailings. (For more on this, see this month’s Real ROI case study
October 2007, the DMA launched its Commitment to Consumer Choice policy, which among other stipulations, requires all DMA members to pr
nd prospective customers and donors with notice of an opportunity to modify or opt out of commercial communications. By giving consumers th
s are not only acting environmentally responsible, but also reinforcing their corporate responsibilities.
ng a lifecycle approach: Companies are selecting green materials and products for their marketing materials and adopting a lifecycle approac
ole of the campaign, thereby foreseeing areas of potential waste. Edwards sees more marketers adopting recycled and FSC-approved papers an
and soy-based inks, smaller formats and trim sizes, and a reduction in paper use overall. Aromatherapy and skincare treatment provider Decle
ramme for the Endorsement of Forest Certification and FSC-certified paper, despite the fact that it’s 3 percent to 7 percent more costly. This ye
stopped printing its logo on gold foil and changed it to a deep, eggplant color, in order to ensure that its paper products are 100 percent recycla
the company only maintains relationships with FSC-certified printers and has actually stopped doing business with a printer that wasn’t—until
k six months later newly certified.
g to the online space: Digital marketing was projected to reach $25.6 billion in 2009, and reach $55 billion, 21 percent of all marketing spend
to Forrester Research’s United States Interactive Marketing Spend report. Channels included in this report were mobile marketing, social media
, display advertising, and search marketing. More and more companies are requiring that employees remind email recipients to think about the
ent before printing.

t the editors, please email editor@destinationCRM.com

nth, CRM magazine covers the customer relationship management industry and beyond. To subscribe, please
/www.destinationCRM.com/subscribe/.

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With the continuing rise in environmental awareness and concern, companies

recognize that it pays to be green. As well as acting in an environmentally
responsible way, it is important for companies to communicate their green
credentials.

What You Need to Know

What is green marketing?

There is a degree of confusion over the term “green marketing.” Some believe that
it refers solely to the promotion or advertising of products with environmental
 characteristics such as “recyclable,” “organic,” or “environmentally friendly.” While
these terms are widely used by “green” companies, green marketing is a much
broader concept, one that can be applied to consumer goods, industrial goods and
some services. Green marketing incorporates a variety of activities, including
modifications to products, changes to the production and distribution processes,
packaging changes, and modifications to marketing communications.

What to Do
Minimize the Impact on the Environment

Green marketing mirrors the goals of traditional marketing, which is to “facilitate

exchanges intended to satisfy human needs or wants.” The point of difference is
that green marketing seeks to accomplish that with minimal detrimental impact on
the natural environment. As companies face limited natural resources, they must
also develop new or alternative ways of satisfying their customers’ needs. So green
marketing is also a way of looking at how marketing activities can make the best
use of these limited resources while meeting corporate objectives.

Set the Right Green Objectives

Commentators have suggested a number of reasons why companies are

increasingly considering green marketing:

• They believe green marketing is an opportunity that can be used to meet their
corporate objectives.
• They believe they have a moral obligation to be more socially responsible.
• Government regulations are forcing them to become more environmentally
responsible.
• Competitors’ environmental activities are pressuring them to change their
marketing activities.
• Cost factors associated with waste disposal, or reductions in material usage are
forcing them to modify their behavior.
Demonstrate Social Responsibility

Many companies realize that they are part of the wider community and must
behave in an environmentally responsible way. They set themselves environmental
objectives as well as corporate and profit objectives. In some cases, concern for
environmental issues has become integrated into the company’s culture—a fact
 which is recognized by customers and other influencers. Companies who
manufacture products can make a further contribution to environmental
improvements by encouraging their suppliers to behave in a more environmentally-
responsible way.

Comply with Legislation

Apart from proactively embracing green marketing, it is also essential to comply

with environmental legislation. Governments try to protect consumers and society
by minimizing the impact of business on the environment. For example, they try to
reduce production of harmful goods, modify consumer and industry’s use of harmful
goods, and ensure that businesses provide accurate information on the
environmental aspects of their activities.

Respond to Competitive Initiatives

In some market sectors, companies who have undertaken green initiatives have
increased market share as a result. Competitors, recognizing the value of the
“green factor,” may introduce their own versions. A good example is the cosmetics
industry in which organizations like The Body Shop successfully pioneered an
ethical approach that was later followed by the majority of their competitors. In
cases like this, the actions of one company have caused an entire industry to
modify its environmental behavior.

Provide Accurate Environmental Information

If you intend to practice green marketing, it is essential that your activities and
your communications do not mislead consumers or industry, and do not breach any
of the regulations or laws dealing with environmental marketing. Any green
marketing claims should:

• clearly state environmental benefits;

• explain environmental characteristics;
• explain how benefits are achieved;
• justify any environmental claims;
• use meaningful terms and pictures.
Identify Products with Green Characteristics
 There are a wide variety of products that support sustainable development and
demonstrate commitment to green marketing, including:

• products made from recycled goods;

• products that can be recycled or reused;
• energy-efficient products that save water, energy, or fuel and reduce environmental
impact;
• products with environmentally responsible packaging;
• organic products;
• services that rent or loan products-such as car sharing;
• products that meet or exceed environmentally responsible criteria.

Whatever the product or service, it is vital to ensure that products meet or exceed
the quality expectations of customers and are thoroughly tested.

Focus Product Development on Sustainability

Any new product development program should take into account environmental
issues. The objective should be to develop products that can be produced,
distributed, used, and recycled with minimal environmental impact. Product
development should focus on these issues:

• How will the product be produced? You need to consider the materials, energy, and
labor used to produce the product to assess whether the production process has
any detrimental social or environmental impact.
• How will the product be used? You need to consider whether the product can be
used for any unethical purpose. You also need to consider the resources the product
will consume during its lifetime, balancing performance requirements against
sustainability.
• How long will the product last? Here you need to balance your need for future
product sales or upgrades against concerns about built-in obsolescence. You also
need to consider how customers can dispose of the product at the end of its life.
Set Realistic Prices

Pricing is as critical in green marketing as in conventional marketing. Concerns

about the overpricing of organic foods, for example, has made consumers skeptical
about certain green claims. Most customers will only be prepared to pay a premium
if they perceive additional value such as improved performance, function, design,
visual appeal, or taste. Environmental benefits alone may not be a justification for
higher prices. However, there is a case for communicating the potential hidden
 savings in green products. Environmentally responsible products may be
comparatively less expensive when whole life costs are taken into consideration.
Examples include fuel-efficient vehicles, water-efficient printing and nonhazardous
products.

Eliminate Unnecessary Packaging

Packaging has become an environmental issue for marketing for a number of

reasons:

• Packaging is a major component of domestic waste and therefore an important

contribution to landfill.
• Discarded packaging is very visible as litter.
• Packaging reduction initiatives can reduce the environmental impact of a product
while also saving companies money.

Retailers also play a role in reducing packaging waste by encouraging suppliers to

minimize excess packaging or offering customers “shopping bags for life” to reduce
the volume of plastic bags.

Practice Greener Distribution

Distribution is a key issue in attracting the right customers for green products and
behaving in an environmentally responsible way. Experience indicates that
customers will not go out of their way to buy green products just for the sake of it;
where possible, products should be distributed through mainstream outlets so that
they are not just available to a small niche market of green consumers. If you
market your products across geographical boundaries, distribution becomes an
environmentally sensitive issue. Look carefully at the physical distribution of your
products to find where you could minimize the impact on the environment of your
logistics operations. This might mean reducing the number of miles driven by
keeping more regional inventory or by using fuel-efficient vehicles for distribution.

Promote Green Credentials Efficiently

The key to successful green marketing communications is credibility. Never

overstate environmental claims or establish unrealistic expectations, and
communicate simply through sources that people trust. Larger corporations may
 run major advertising and public relations campaigns to promote their commitment
to environmental improvement, but promotion on this scale is not essential. Green
marketers reinforce their environmental credibility by using sustainable marketing
and communications tools and practices. Examples include:

• providing electronic statements or billing by e-mail;

• using e-marketing rather than paper-based direct mail;
• offering downloadable publications to reduce print quantities and paper usage;
• printing on recycled materials using processes such as waterless printing;
• eliminating unnecessary packaging;
• offering Webcasting as an alternative to live events to reduce representatives’
travel.
Make It Easy for Customers to Be Green

Experience indicates that consumers and business customers are increasingly

concerned about the environment and are changing their purchasing behavior. That
means there is a growing market for sustainable and socially responsible products
and services. The challenge for green marketing is to make it easy for customers to
become green themselves. Commentators believe that when other factors such as
quality, price, performance, and availability are equal, environmental considerations
may tip the balance in favor of a green product.

What to Avoid
You Look for Green Competitive Advantage Without
Responsibility

With consumers, business customers, and government demonstrating increasing

concern about environmental issues, companies recognize the importance—and
potential benefits—of dealing with those concerns. Companies that market goods
with environmentally responsible characteristics are likely to have a competitive
advantage over companies without green credentials. However, there are also
examples of companies who have made green claims without the responsible
behavior to back up those claims. Communicating misleading information to gain
market share is known as “greenwashing” and could create a backlash in terms of
customer cynicism.

Where to Learn More

 Book:

Ottman, Jacquelyn A., Green Marketing: Opportunity for Innovation. Booksurge

Publishing, 2004.

Web Sites:

Sustainable Marketing.com: www.sustainablemarketing.com

J. Ottman Consulting, Inc: www.greenmarketing.com

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Home Page > Marketing > GREEN MARKETING – OPPORTUNITIES & CHALLENGES

GREEN MARKETING – OPPORTUNITIES & CHALLENGES

Posted: Aug 21, 2009 | Comments: 0 | Views: 2,330 |

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GREEN MARKETING – OPPORTUNITIES & CHALLENGES

BY

Miss. P. PIRAKATHEESWARI, Lecturer in Commerce,

Sri Sarada College for Women (Autonomous), Salem – 16.

"Progress is possible, No one can stop it, but obstacle is there, we have to face it."

- AmartyaSen
Introduction

Yes, green marketing is a golden goose. As per Mr. J. Polonsky, green marketing can be defined
as, "All activities designed to generate and facilitate any exchange intended to satisfy
human needs or wants such that satisfying of these needs and wants occur with minimal
detrimental input on the national environment."
Green marketing involves developing and promoting products and services that satisfy customers
want and need for Quality, Performance, Affordable Pricing and Convenience without having a
detrimental input on the environment.

Meaning

Green marketing refers to the process of selling products 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.

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, in my opinion, has
not been proven conclusively.

While green marketing is growing greatly as increasing numbers of consumers are willing to back their
environmental consciousnesses with their dollars, it can be dangerous. The public tends to be skeptical
of green claims to begin with and companies can seriously damage their brands and their sales if a
green claim is discovered to be false or contradicted by a company's other products or practices.
Presenting a product or service as green when it's not is called green washing.

Definition

According to the American Marketing Association, green marketing is the marketing of products that
are presumed to be environmentally safe. Thus green marketing incorporates a broad range of
activities, including product modification, changes to the production process, packaging changes, as
well as modifying advertising. Yet defining green marketing is not a simple 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 andEcologicalMarketing.

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.

Three keys to successful green marketing

Show potential customers that you follow green business practices and you could reap more green on
your bottom line. Green Marketing isn't just a catchphrase; it's a marketing strategy that can help you
get more customers and make more money. But only if you do it right.
 For green marketing to be effective, you have to do three things; be genuine, educate your
customers, and give them the opportunity to participate.

1) Being genuine means that a) that you are actually doing what you claim to be doing in your
green marketing campaign and b) that the rest of your business policies are consistent with whatever
you are doing that's environmentally friendly. Both these conditions have to be met
for your business to establish the kind of environmental credentials that will allow a green marketing
campaign to succeed.
2) Educating your customers isn't just a matter of letting people know you're doing whatever
you're doing to protect the environment, but also a matter of letting them know why it matters.
Otherwise, for a significant portion of your target market, it's a case of "So what?" and your green
marketing campaign goes nowhere.

3) Giving your customers an opportunity to participate means personalizing the benefits of your
environmentally friendly actions, normally through letting the customer take part in positive
environmental action.

Evolution of Green Marketing

The green marketing has evolved over a period of time. According to Peattie (2001), the evolution of
green marketing has three phases. First phase was termed as "Ecological" green marketing, and
during this period all marketing activities were concerned to help environment problems and provide
remedies for environmental problems. Second phase was"Environmental" green marketing and the
focus shifted on clean technology that involved designing of innovative new products, which take care
of pollution and waste issues. Third phase was "Sustainable" green marketing. It came into
prominence in the late 1990s and early 2000.

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.

Benefits of Green Marketing

Companies that develop new and improved products and services with environment inputs in mind
give themselves access to new markets, increase their profit sustainability, and enjoy a competitive
advantage over the companies which are not concerned for the environment.

Adoption of Green Marketing

There are basically five reasons for which a marketer should go for the adoption of green marketing.
They are -

• Opportunities or competitive advantage

• Corporate social responsibilities (CSR)
• Government pressure
• Competitive pressure
• Cost or profit issues
Green Marketing Mix

Every company has its own favorite marketing mix. Some have 4 P's and some have 7 P's of
marketing mix. The 4 P's of green marketing are that of a conventional marketing but the challenge
before marketers is to use 4 P's in an innovative manner.
Product

The ecological objectives in planning products are to reduce resource consumption and pollution and
to increase conservation of scarce resources (Keller man, 1978).

Price

Price is a critical and important factor of green marketing mix. Most consumers will only be prepared
to pay additional value if there is a perception of extra product value. This value may be improved
performance, function, design, visual appeal, or taste. Green marketing should take all these facts into
consideration while charging a premium price.

Promotion

There are three types of green advertising: -

ü Ads that address a relationship between a product/service and the biophysical environment

ü Those that promote a green lifestyle by highlighting a product or service

ü Ads that present a corporate image of environmental responsibility

Place

The choice of where and when to make a product available will have significant impact on the
customers. Very few customers will go out of their way to buy green products.

Strategies

The marketing strategies for green marketing include: -

• Marketing Audit (including internal and external situation analysis)

• Develop a marketing plan outlining strategies with regard to 4 P's
• Implement marketing strategies
• Plan results evaluation
Challenges Ahead

ü Green products require renewable and recyclable material, which is costly

ü Requires a technology, which requires huge investment in R & D

 ü Water treatment technology, which is too costly

ü Majority of the people are not aware of green products and their uses

ü Majority of the consumers are not willing to pay a premium for green products

Some Cases

ü McDonald's restaurant's napkins, bags are made of recycled paper.

ü Coca-Cola pumped syrup directly from tank instead of plastic which saved 68 million pound/year.

ü Badarpur Thermal Power station of NTPC in Delhi is devising ways to utilize coal-ash that has
been a major source of air and water pollution.

ü Barauni refinery of IOC is taken steps for restricting air and water pollutants.

Conclusion

Green marketing should not neglect the economic aspect of marketing. Marketers need to understand
the implications of green marketing. If you think customers are not concerned about environmental
issues or will not pay a premium for products that are more eco-responsible, think again. You must
find an opportunity to enhance you product's performance and strengthen your customer's loyalty and
command a higher price. Green marketing is still in its infancy and a lot of research is to be done on
green marketing to fully explore its potential.

References:

1. Chopra, S. Lakshmi (2007), "Turning Over a New Leaf", Indian Management, Vol-64, April-2007
2. Ottman, J.A. et al, "Avoiding Green Marketing Myopia", Environment, Vol-48, June-2006
3. www.greenmarketing.net/stratergic.html
4. www.epa.qld.gov.au/sustainable_ industries

(ArticlesBase SC #1146893)

P. Pirakatheeswari - About the Author:

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