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The marketing efforts to produce, promote, distribute and reclaim products or services which are environmentally safe or has environmental benefits. Such a product or service may be environment friendly or produced and/ or packaged in an environment friendly way The assumption of this marketing is that the potential consumers will view a product or services GREENNESS as a benefit and make their buying decision accordingly.
HISTORY
The AMA held the first workshop on Ecological marketing in 1975. The proceedings of this workshop resulted in one of the first books on Green Marketing entitled Ecological Marketing by Jacquelyn Ottman in late 1970s. The term Green Marketing came in to picture in the late 1980s and early 1990s.
What is it?
Corporate Social Responsibility Triple Bottom Line Accounting New Product Innovation Company Ethos
Corporate(social) responsibility
Term is new, practice is not. CSR is about sustainability of profits, the company, its people and the environment. Its now about how a company EARNS its money, not how it SPENDS it.
Why Is It Important?
Unlimited Wants Alternative Ways
Limited Resources
Green Marketing looks at how marketing activities utilize limited resources, while satisfying consumers unlimited wants, both of individuals and industry, as well as achieving the selling organization's objectives
1. Opportunity
Firms marketing goods with environmental characteristics will have a competitive advantage over firms marketing non-environmentally responsible alternatives. For Example:
Mcdonalds replaced clamshell packaging with waxed paper. Because of polysterine production and ozone layer depletion
Xerox introduced a "high quality" recycled photocopier paper in an attempt to satisfy the demands of firms for less environmentally harmful products
2. Social Responsibility
Environmental issues being integrated into the firm's corporate culture. Firms in this situation can take two perspectives;
Do not promote
Body Shop heavily promote the fact that they are environmentally responsible. While this behavior is a competitive advantage, the firm was established specifically to offer consumers environmentally responsible alternatives to conventional cosmetic products
Coca-Cola. has invested large sums of money in various recycling activities, as well as having modified their packaging to minimize its environmental impact
3.Governmental Pressure
Government wants to "protect" consumers and society; Governmental regulations relating to environmental marketing are designed to protect consumers in several ways:
Reduce production of harmful goods or byproducts; Modify consumer and industry's use and/or consumption of harmful goods; or Ensure that all types of consumers have the ability to evaluate the environmental composition of goods.
4.Competitive Pressure
Firms observe competitors promoting their environmental behaviors and attempt to emulate this behavior. In some instances this competitive pressure has caused an entire industry to modify and thus reduce its detrimental environmental behavior.
For Example:
Xerox's "Revive 100% Recycled paper" was introduced a few years ago in an attempt to address the introduction of recycled photocopier paper by other manufacturers
Benefits
Reputation Gaining and retaining customers Cost savings (CNG) Innovation in products and operations Staff Developments Energy, Enthusiasm and Openness Supplier Contracting Electronics sector
How do we do it?
Company values Mission and aims Marketing and transparency Supply chain management
Aveda
Long Hog Unilever
PRICE
Environmentally responsible products, however, are often less expensive when product life cycle costs are taken into consideration.
For example: fuel-efficient vehicles, water-efficient printing and non-hazardous products.
PLACE
Very few customers will go out of their way to buy green products merely for the sake of it. Marketers looking to successfully introduce new green products should, in most cases, position them broadly in the market place so they are not just appealing to a small green niche market. This can be achieved by in-store promotions and visually appealing displays or using recycled materials to emphasize the environmental and other benefits.
PROMOTION
Smart green marketers will be able to reinforce environmental credibility by using sustainable marketing and communications tools and practices.
For example: To reduce the use of plastic bags and promote their green commitment, some retailers sell shopping bags.
Eco label is an environmental claim that appears on the packaging of a product .It is awarded to a manufacturer by an appropriate authority. ISO 14020 is a guide to the award of Eco-labels. The government of India launched an Eco-mark Scheme in 1991 to increase consumer awareness in respect of environment friendly products.The aim of the scheme is to encourage the customers to purchase those products which have less harmful environmental impact.
Improvement of image and sales of products Manufacturers being more accountable to environmental impacts. Consumers awareness that their choice of product do affect the environment as some products are less damaging to environmental than others
Consumers Responsibility
I Damage The Environment Because...
23%
26%
21% 12%
No Alternatives Don't Understand Issue Not Convenient
8% 10%
To Cheap No Time Lazy
Ultimately green marketing requires that consumers want a cleaner environment and are willing to "pay" for it, possibly through higher priced goods, modified individual lifestyles, or even government.
While firms must bear much of the responsibility for environmental degradation, ultimately it is consumers who demand goods, and thus create environmental problems.
It must be remembered that it is the uncaring consumer who chooses to disposes of their waste in an inappropriate fashion
NGO-Greenpeace
Solar products
Recycled/ecofriendly products
Hybrid/Electrical cars
Transportation
Give Local Love Receive Local Love
Challenges
Consumers awareness (education and knowledge). Variety of products. Price of green products are slightly more. People does not want to stop consuming but want to buy ways that does not harm the environment. To construct a consumer society that accommodates less waste and lower emission.
Conclusion
Green marketing covers more than a firm's marketing claims.
While firms can have a great impact on the natural environment, the responsibility should not be theirs alone