PART I Introduction

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©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
PART I: INTRODUCTION

Environment

Marketing
Action Macro-
Marketing
economic
Strategy
Sector

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 CHAPTER 1 An Overview
of Green
Marketing

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©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 AN OVERVIEW OF GREEN MARKETING

A. Introduction to Green Marketing

B. Why study Green Marketing?
C. Groups that Need to Understand
Green Marketing

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LAKEFIELD WIND PROJECT

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LAKEFIELD WIND PROJECT

In Lakefield, Minnesota where negotiations have been finalized

between EnXco and 140 Minnesota landowners. The project has
great potential to be successful on multiple fronts. The new jobs
will bring new revenue to the economy. EnXco indicates that the
wind farm will yield deliver 200 construction jobs and add eight to
12 full-time jobs to the local economy. The area will also benefit
from productions of 201 megawatts of renewable energy. These
renewable sources of energy will be employed rather than fossil
fuels in the form of coal, oil, or natural gas. Interesting, the energy
will be produced in Minnesota, but it will be transmitted to Indiana.

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A. INTRODUCTION TO GREEN MARKETING

1. Green Marketing
refers to all efforts to
consume,
produce,
distribute,
promote,
package, and
reclaim products in a manner that is
sensitive or responsive to ecological
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concerns
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A. INTRODUCTION TO GREEN MARKETING

2. Green Marketing Management

the process of planning and executing the marketing
mix to facilitate consumption, production, distribution,
promotion, packaging, and product reclamation in a
manner that is sensitive or responsive to ecological
concerns.

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A. INTRODUCTION TO GREEN MARKETING

3. Sustainability:
a. development which meets the needs
of the present without compromising
the ability of future generations to
meet their own needs
Gro Harlem Brundtland (1983)

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WHY STUDY GREEN MARKETING?

Relational
Financial
Performance
Performance

Sustainability

Figure 1-2
Environmental outlines the
pursuit of
Performance
sustainability
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B. WHY STUDY GREEN MARKETING?

1. Environment
a. Fossil fuel consumption
 coal for electricity
 gasoline burned for automobile transportation.
b. Air pollution
c. Water pollution
d. Land degradation
e. Endangered species

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B. WHY STUDY GREEN MARKETING?

2. Developing Economies
a. Low income, underdeveloped assets, and economic
vulnerability
b. High dependence on the agricultural sector
c. Increased exposure to drought, intense storms, floods,
and environmental stress
d. Increasing pressure on urban areas
e. Leapfrog antiquated operations with efficient and
environmentally-friendly designs

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B. WHY STUDY GREEN MARKETING?

3. Consumers
a. Knowledge that they are doing their part to reduce
climate change
b. Associated with environmentally-friendly products
and organizations
c. Ecologically friendly products without sacrificing
other valuable features

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B. WHY STUDY GREEN MARKETING?

4. Corporate Strategy
a. Image
b. Employees
c. Financial markets
d. NGO’s
e. Redefine markets

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B. WHY STUDY GREEN MARKETING?

5. The Product
a. Improve environmental quality and customer
satisfaction
b. Product life cycle costing
c. Product differentiation
d. Packaging

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B. WHY STUDY GREEN MARKETING?

6. Production Processes
a. Material costs
b. Just-in-time (JIT) inventory procedures

c. By-product considerations

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B. WHY STUDY GREEN MARKETING?

7. Supply Chain
a. From raw material mining to consumption.
b. Eliminate waste in the supply chain result in firms
analyzing truck loading and route planning in the
delivery process
c. Trace products throughout the supply chain
d. A level of insurance of product quality

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C. GROUPS THAT NEED TO UNDERSTAND
GREEN MARKETING

1. Consumers
a. Reduce their personal influences on the environment.
b. Ancillary, financial benefits from product offerings
that are designed to be sustainable

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C. GROUPS THAT NEED TO UNDERSTAND
GREEN MARKETING

2. Governments
a. Lower expenditure costs and limit influences on the
environment
b. Better positions to develop regulations strategies that
serve the needs of society and industry

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C. GROUPS THAT NEED TO UNDERSTAND
GREEN MARKETING

3. Companies with established

environmental reputations
a. Standard bearers for green marketing expect
significant scrutiny and publicity from
environmentally questionable activity
b. Companies singled-out for nefarious acts against the
environment must address green marketing issues if
they seek to change their reputations

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C. GROUPS THAT NEED TO UNDERSTAND
GREEN MARKETING

4. Companies highly dependent on scarce human capital

5. Companies with high brand exposure
6. Companies with low market power
7. Companies dependent on natural resources
a. oil, fish, and forestry

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C. GROUPS THAT NEED TO UNDERSTAND
GREEN MARKETING

8. Companies operating in highly

regulated industries
a. Hazardous materials
b. Utilities,
c. Automobile producers, and
d. Airlines
e. Electronics industries

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