GREEN MARKETING

a new dimension…..

By:- Priyanka Yadav

Emergence of concept 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.
 Meaning of Green Marketing
Green Marketing is a golden goose. As per Mr. J. Polonsky,
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 and Ecological Marketing.
Need of 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.
 Opportunity in India

In India, around 25% of the consumers prefer environmental-friendly products, and

around 28% may be considered healthy conscious. There fore, green marketers have
diverse and fairly sizeable segments.

In India, the green building movement, spearheaded by the Confederation of Indian

industry (CII) - Godrej Green business Center, has gained tremendous impetus over
the last few years. From 20,000 sq ft in 2003, India's green building footprint is now
over 25 million sq ft in 2009.
 Adaptation of Green Marketing

Commentators have suggested a number of reasons why companies

are increasingly considering green marketing:

• Opportunities and corporate objectives.

• Corporate social responsibilities (CSR)
• Government regulations
• Competitive advantage
• Cost and Profit factors
 Marketing Mix Strategy
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. They are as follows:-

• Product
• Price
• Place
• Promotion
Product

• Product should be mad in such a way that it can

help the customer who like environment friendly
products. It can be made from recycle materials
or from used things. The ecological objectives in
planning products are to reduce resource
consumption and pollution and to increase
conservation of scarce resources. Ex Toyota
Pirius hybrid car .
 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.
 Place

Green place is about managing

logistics to cut down on
transportation emissions,
thereby in effect aiming at
reducing the carbon footprint.
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.
 Promotion

There are three types of green advertising:-

• Ads that address a relationship between a

product/service and the biophysical
environment
• Those that promote a green lifestyle by
highlighting a product or service
• Ads that present a corporate image of
environmental responsibility
 Promotion cont..

• Efficiency and cost

effectiveness
• Health and safety
• Symbolism
• Convenience
 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
• Work on some national or international certification/standard
Challenges Ahead

• Green products require renewable and

recyclable material, which is costly.
• Requires a technology, which requires huge
investment in R & D
• Water treatment technology, which is too
costly.
• Majority of the people are not aware of green
products and their uses.
• Majority of the consumers are not willing to
pay a premium for green products.
 Essential for green marketing

• Do Your Own Research

• Being genuine and Sincerity is a Must
• Educating your customers
• Giving your customers an opportunity to participate
• Attach Your “Green” Label to Superior Products
Only
• Refocusing and Rebranding Your Product-line or
Services into the Environmental Sector
• Assessing Your Competitors’ Stance
Some examples of Green marketing

• Toyota cars, the better for the planet. By informing

consumers about the benefits of driving "green, clean and
lean" eco-cars, Toyota seeks to raise awareness among the
general public...
• McDonald's restaurant's napkins, bags are made of recycled
paper.
• Coca-Cola pumped syrup directly from tank instead of
plastic which saved 68 million pound/year.
• Barauni refinery of IOC is taken steps for restricting air
and water pollutants
Example cont..

• According to a survey conducted by BT-AC Nielsen ORG-

MARG, in 2009. Oil and petroleum sector is considered the
greenest sector in India. ONGC is the greenest company
followed by Reliance Industries.
• India is a world leader in green IT potential. According to
Global enterprise survey Indian respondents scored over
respondents from 10 other countries in expecting to pay 5%
or more for green technology if its benefits for the
environment and return on investment (ROI) is proven.
• Nokia's environmental welfare work is based on life cycle
thinking. Recycling, treatment of waste, and recovery of
used materials.
Example Cont..

TATA GROUP OF COMPANIES

• One of the most interesting innovations has come in the form of a biogas-
based power plant at Taj Green Cove in Kovalam, which uses the waste
generated at the hotel to meet its cooking requirements.

• Another eco-friendly consumer product that is in the works is Indica EV,

an electric car that will run on polymer lithium ion batteries. Tata Motors
plans to introduce the Indica EV in select European markets this year.

• Tata Power has said that of the total power it would generate in the next 10
years, 25% would be from renewable energy sources.
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 Market research is to be done on green
marketing to fully explore its potential.
 Green Code

• Generalize with care

• Remember
• Explore
• Ensure
• Naturally is important
Thank you