Green Marketing

What is Green Marketing

Green Marketing

Green Marketing

 Macdonalds

have

stopped

packaging their hamburgers etc in

polystyrene containers and now

use cardboards which comes from a renewable resource and is biodegradable or recyclable .

Green Marketing

Evolution of Green Marketing

Ecological green marketing

Environmental green marketing

Sustainable green marketing

Green Marketing

 As resources are limited& human wants are unlimited -it is important to utilize the resources efficiently.

Growing interest among the consumers regarding protection of environment. Opportunities or Competitive advantage, CSR, Government pressure, Competitive pressure, Cost or profit issues, etc.
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 Research shows that consumers prefer--and are willing to spend more money on products they perceive as environmentally safe

More than half of the consumers have purchased a product because of a label that said it was environmentally safe or biodegradable

Green Marketing

Ginsberg and Bloom :Companies can be classified

1. Lean Green- These companies adopt the green practices but they do not focus to publicise these initiatives. 2. Defensive Green- This kind of marketer use green marketing as a precaution to avoid the crisis situation or to counter the competition.. 3. Shaded Green- The companies those adopt shaded green strategy invest in long-term, environmentally friendly processes that require a significant financial and nonfinancial dedication. 4. Extreme Green- Extreme green adopt green marketing mix in the holistic manner.

Green Marketing

GREEN PRODUCTS IN INDIA

Wipro Infotech (Green IT) was India's first company to launch environment friendly computer peripherals.

Samsung, was the first to launch eco friendly mobile handsets (made of renewable materials) W510 and F268- in India.
Oil and Natural Gas Corporation Ltd (ONGC), Indias largest oil company, has introduced energy-efficient Mokshada Green Crematorium, which saves 60 to 70% of wood.

Honda India introduced its Civic Hybrid car

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ITC has introduced Paperkraft, a premium range of eco-friendly business paper.

IndusInd Bank installed the countrys first solar-powered ATM and thus brought about an eco-savvy change in the Indian banking sector.

Suzlon Energy manufactures and markets wind turbines, which provide an alternative source of energy based on wind power. This green initiative taken by the company is extremely important for reducing the carbon footprint.

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PRODUCT

PURSE STRINGS

PRICE

POLICY

PLACE

PARTNERSHIP

PROMOTION

PUBLIC Green Marketing

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The ecological objectives in planning products are to reduce resource consumption and pollution and to increase conservation of scarce resources

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.

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.

There are two types of green advertising -Those that promote a green lifestyle by highlighting a product or service - Ads that present a corporate image of environmental responsibility

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Public is the external and internal groups involved in the program. External publics include the target audience, secondary audiences, policymakers, and gatekeepers, while the internal publics are those who are involved in some way with either approval or implementation of the program.

Most social change issues, including "green" initiatives, are too complex for one person or group to handle. Associating with other groups and initiatives to team up strengthens the chance of efficacy

Social marketing programs can do well in motivating individual behavior change, but that is difficult to sustain unless the environment they're in supports that change for the long run. Often, policy change is needed, and media advocacy programs can be an effective complement to a social marketing program.

How much will this strategic effort cost? Who is funding the effort?

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AN INTEGRATED APPROACH TO GREEN ENVIRONMENT- LINK AMONG PLAYERS

PRODUCER

CONSUMER

GREEN ENVIRONMENT

STATE

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Producers role
Companies must remove these five barriersnamely
Lack of Awareness
Negative Perceptions Distrust

High Prices
Low Availability Increase consumers awareness of green products, improve consumers perceptions of eco-products quality, strengthen consumers trust, lower the prices of green products, and increase these products availability.

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Consumers Role
Conscious effort to educate themselves on the green advantages and make an informed choice. Should look at the Bigger picture and not be guided purely by price and personal gains.

Consumers should actively participate in green initiatives launched by Corporates, government and NGOs. Consumers should shed inhibitions and preconceived notions about not using ecofriendly products. They should understand that every positive step contributes to the cause and shed the mentality that they alone cannot bring about the change.

Abide by the green regulations and not be guided by personal short term gains.

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Government Role

There has to be a stimulus provided by the Government to encourage and support the manufacturers who are manufacturing green products by providing subsidies. Financial assistance should be given in the form of easy loan facility to equip for manufacturing green products. Tax incentives or Tax holidays will also help the small and medium scale manufacturers as green marketing is costly.
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Awards and recognition should be given to those who successfully practice green marketing which becomes a motivating factor for others to implement it.
Social advertising to be carried out on a large scale through various medias to promote environment friendly practices, to promote the consumption of green products. Promotion of Eco-mark or Eco-labeling has to be done to create awareness not only amongst manufacturers but also consumers
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 Invention of new products &services. Increase their profit sustainability.

Enjoy a competitive advantage over the companies which are not concerned for the environment.
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PROBLEMS WITH GREEN MARKETING

Credibility

Firms using green marketing must ensure that their activities are not misleading to consumers or industry Activities do not breach any of the regulations or laws dealing with environmental marketing.

Dont Follow fact that consumers' perceptions are sometimes not correct Consumers McDonalds replaced its clamshells with plastic coated paper. Some scientific evidence Perception suggests that polystyrene is less environmentally harmful. Blindly

Those who modify their products due to increase consumer concern must contend with the

Lack Of Policies

There is a difficulty in establishing policies that will address all environmental issues

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PROBLEMS........
Firms using green marketing must ensure that their activities are not misleading to consumers or industry Activities do not breach any of the regulations or laws dealing with environmental marketing.

Credibility

Dont Follow Competition Blindly

Reacting to competitive pressures can cause all "followers" to make the same mistake as the "leader." Mobil Corporation who followed the competition and introduced "biodegradable" plastic garbage bags. While technically these bags were biodegradable, the conditions under which they were disposed did not allow biodegradation to occur.

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Solutions
Benchmarking

Establish a benchmark upon which to measure the progress of company in term of eco aspects. Self certify the companys progress and the efforts made by company.

External Audit

Conduct a thorough environmental audit to assess current performance. To build credibility, have your audit certified by an independent third party and voluntarily report results to the Environmental Protection Agency

Employee Awareness Program

It is only when employees are aware of the issues and given the authority to make changes that greener products will be developed and environmentally sound corporate practices be put into place.
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Solutions....
Consumers intuitively understand that no product or company is truly "green". Constantly Refine What they want from companies is reasonable progress. The Product Constantly integrate, learn, and refine products and processes.

Effectively communicate with the consumers; always look for feedback from consumers as well as from environmental Effective organizations. Communication Regularly issue reports on environmental performance, advertise them & use them as a tool to improve public relations.

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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.
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Eco labeling leads to

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
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 3 stages led to award of eco-mark in India

The Steering Committee of the MEF determines the product categories for coverage under the scheme and to formulate strategies for implementation and future developments of the scheme. The second stage is the identification of specific products to be selected and the individual criteria to be adopted by the Technical Committee of CPCB. In the third stage the Bureau of Indian Standards (BIS) is to certify the product and formulae contract with the manufacturer allowing the use of eco-mark.

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