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Green Marketing 2

Green Marketing 2

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Published by apsavi
green marketing article
green marketing article

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Published by: apsavi on Oct 11, 2011
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07/19/2013

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GREEN MARKETING - STRATEGIES AND ISSUES
 
Introduction
 Today society becomes more concerned with the natural environment; businesses have begun to modify theirbehavior in an attempt to address society's "new" concerns. Some businesses have been quick to acceptconcepts like environmental management systems and waste minimization, and have integratedenvironmental issues into all organizational activities. One business area where environmental issues havereceived a great deal of discussion in the popular and professional press is marketing. Terms like "GreenMarketing" and "Environmental Marketing" appear frequently in the popular press. Many governments aroundthe world have become so concerned about green marketing activities that they have attempted to regulatethem. For example, in the United States (US) the Federal Trade Commission and the National Association of Attorneys-General have developed extensive documents examining green marketing issues.
 
Purpose of study
 
While some companies have already implemented some sort of strategies for going green, the majority of thecompanies have little to no plans in going green. Even fewer companies have enterprise level strategies forgoing green. The purpose of this report is to provoke thought about the potential destructiveness of global warming andwhat business can do to prevent further damage to our eco-system. This study would further focus on greenstrategies and green marketing and their importance for corporations. Corporations can learn from thisresearch paper about the benefits of going green. In addition, the companies should not only take on theinitiative of going green but should also take on the responsibility of educating consumers on going green ordemanding for greener products. With these changes, our ecosystem and environment can maintain ahealthier lifestyle. The research would address issues such as the following:
 
1. What are green strategies and enterprise-level green strategies?2. Ways for corporations going green3. How green strategies can help businesses operate more efficiently4. Driving forces for corporations to go green5. Corporations going green under different pressures6. The emerging green markets and green consumers7. How to improve green marketing8. How to execute green strategies
 
2. LITERATURE REVIEW2.1 Green strategies
"A green strategy facilitates decisions and transformation initiatives that improve the environment" (Olson,2008). Green Strategies help individuals, corporations, and non-profit organizations change behaviors anddecisions on a more responsible way--environmentally, socially and economically (Green strategies, n.d).From business point of view, a green strategy is a good way to invest in future energy alternatives for big orsmall companies alike. In the long run, it will reduce energy bills and help improve the environment.For companies seeking to go green, there is basically a strategy known as the "enterprise-level greenstrategy." An enterprise-level green strategy helps a company make decisions based on its impact to the
 
environment. Like any other company strategies, the enterprise-level green strategy should formulate ideasand address the question of environmental friendliness. As a company sides with going green, other benefitssuch as social responsibility and cost of bills will also be positively affected. Having a clear vision to go greenultimately leads a company in the right direction of making good decisions (Olson, 2008).
2.2 Go green
"Practicing green is inherently proactive; it means finding ways to reduce waste and other-wise be moreenvironmentally responsible, before being forced to do so through government regulations." Businesses couldpractice green by voluntarily recycling and attempting to reduce wastes and the amounts of resources theyconsume in their daily operations (Shi, Kane, 1996).
2.3 Green marketing
Green marketing is the promotion of products or services in a way that encourage environmental safety.Consequently, green marketing encompasses a wide scope of actions some of which include productmodifications, changes of product process and packaging, and advertisement modification (Guides for the useof environmental marketing claims, n.d.). Green marketing also helps to build green brands for products andhelps to maintain sustainability of products along the product life cycle.
2.4 Green markets
Going green has actually been a huge development in many countries. Many companies have emerged toproduce green products to sell to consumers who make buying decisions based on environmental criteria. Asthe market grows, more companies will attempt to dip into this green market segment to become the pioneerand dominant supplier (Hartmann, Ibanez, 2006).
2.5 Green products
A product is considered "green if it operates cleaner or saves money and energy" compared to its non-greencounterparts (Shi, Kane, 1996). Many buyers who seek to go green are there for obvious reasons. Some of these reasons include health improvement, lowering cost of bills, and saving the environment. The bestmarketing strategy for getting people/companies to go green is to let the consumers be aware of the positiveeffect of the product to the environmental. Bringing environmental awareness can help tip the scale for thosehesitating on going green (Hartmann, Ibanez, 2006).
2.6 Green consumers
Public surveys given out in the United States indicate that an average consumer is willing to pay up to fivepercent more for greener products. The extra cost of five percent comes from green strategies such as,reducing, recycling, reusing, or redesigning of existing products (Kassaye, 2001).
 
Green Marketing and its importance:
 
Green marketing incorporates a broad range of activities, including product modification, changes to theproduction process, packaging changes, as well as modifying advertising. Terms like Phosphate Free,Recyclable, Refillable, Ozone Friendly, and Environmentally Friendly are some of the things consumers mostoften associate with green marketing Indeed the terminology used in this area has varied, it includes: GreenMarketing, Environmental Marketing and Ecological Marketing.
 
Green marketing offers business bottom line incentives and top line growth possibilities. While modification of business or production processes may involve start-up costs, it will save money in the long term. For examplethe cost of installing solar energy is an investment in future energy cost savings. Companies that developnew and improved products and services with environmental impacts in mind give themselves access to new
 
markets, substantially increase profits and enjoy competitive advantages over those marketing non-environmentally responsible alternatives.
 
Evolution of Green Marketing.
 
 The green marketing has evolved over a period of time. The evolution of green marketing has three phases.First phase was termed as "Ecological" green marketing, during this period all marketing activities wereconcerned to help environment problems and provide remedies for environmental problems. Second phasewas "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" greenmarketing. It came into prominence in the late 1990s and early 2000.
The Four Ps of Green Marketing
 
Green marketers concentrate on the ‘four Ps’ in inventive ways.
 
1. Product-Entrepreneurs wanting to exploit emerging green markets either identifying customers’ environmental needsand develop products to address these needs; or developing environmentally responsible products to haveless impact than competitors.
 
 The increasingly wide variety of products on the market that support sustainable development and are goodfor the triple bottom line include:
 
v
Products that can be recycled or reused.
v
Efficient products, which save water, energy or gasoline, save money and reduce environmentalimpact. Queensland’s only waterless printer, Printpoint, reduces operating costs by using less waterthan conventional printers and is able to pass the savings on to customers.
v
Products with environmentally responsible packaging. McDonalds, for example, changed theirpackaging from polystyrene clamshells to paper.
v
A service that rents or loans products – such as toy libraries.
v
Certified products, which 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 thoroughly tested.
 
2. Price-
Environmental benefits are usually an added bonus but will often be the deciding factor between products of equal value and quality. Environmentally responsible products, however, are often less expensive whenproduct life cycle costs are taken into consideration. For example fuel-efficient vehicles, water-efficientprinting and non-hazardous products.
 
3. Place-
 The choice of where and when to make a product available has a significant impact on the customersbeing attracted.Very few customers go out of their way to buy green products merely for the sake of it.

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