GREEN MARKETING

ASSIGNMENT
CONTENTS
1) Introduction
2) Definition
3) Positive Aspect of Green Maretin!
") Ne!ative Aspect of Green Maretin!
#) Pro$%e&s 'it( !oin! !reen
)) Green Maretin! strate!ies t(at different fir&s s(ou%d adopt
*) Green +ode
,) +(oosin! t(e ri!(t Green Maretin! Strare!-
.) +onc%usion
INTRODUCTION
T(e pro&otion of environ&enta%%- safe or $eneficia% products/ !reen &aretin! $e!an in
Europe in t(e ear%- 1.,0s '(en specific products 'ere identified as $ein! (ar&fu% to t(e
eart(1s at&osp(ere2 As a resu%t/ ne' 3!reen4 products 'ere introduced t(at 'ere %ess
da&a!in! to t(e environ&ent2 T(e concept cau!(t on in t(e 5nited States and (as $een
!ainin! steadi%- ever since2
Diver!ent aspects of !reen &aretin! inc%ude eco%o!ica%%- safer products/ rec-c%a$%e and
$iode!rada$%e paca!in!/ ener!-6efficient operations/ and $etter po%%ution contro%s2
Advances produced fro& !reen &aretin! inc%ude paca!in! &ade fro& rec-c%ed paper/
p(osp(ate6free deter!ents/ refi%%a$%e containers for c%eanin! products/ and $ott%es usin!
%ess p%astic2
As toda-1s consu&ers $eco&e &ore conscious of t(e natura% environ&ent/ $usinesses are
$e!innin! to &odif- t(eir o'n t(ou!(ts and $e(avior in an atte&pt to address t(e
concerns of consu&ers2 Green &aretin! is $eco&in! &ore i&portant to $usinesses
$ecause of t(e consu&er1s !enuine concerns a$out our %i&ited resources on t(e eart(2 7-
i&p%e&entin! !reen &aretin! &easures to save t(e eart(1s resources in production/
paca!in!/ and operations/ $usinesses are s(o'in! consu&ers t(e- too s(are t(e sa&e
concerns/ $oostin! t(eir credi$i%it-
DEFINITONS
Pride and 8erre%% 91..3) Green marketing/ a%so a%ternative%- no'n as environ&enta%
&aretin! and sustaina$%e &aretin!/ refers to an or!ani:ation2s efforts at desi!nin!/
pro&otin!/ pricin! and distri$utin! products t(at 'i%% not (ar& t(e environ&ent
Polonsky 91..") defines !reen &aretin! as 2a%% activities desi!ned to !enerate and
faci%itate an- e;c(an!es intended to satisf- (u&an needs or 'ants/ suc( t(at t(e
satisfaction of t(ese needs and 'ants occurs/ 'it( &ini&a% detri&enta% i&pact on t(e
natura% environ&ent 2
Elkington (1994 9!" defines !reen consu&er as one '(o avoids products t(at are %ie%-
to endan!er t(e (ea%t( of t(e consu&er or ot(ers< cause si!nificant da&a!e to t(e
environ&ent durin! &anufacture/ use or disposa%< consu&e a disproportionate a&ount of
ener!-< cause unnecessar- 'aste< use &ateria%s derived fro& t(reatened species or
environ&ents< invo%ve unnecessar- use of/ or crue%t- to ani&a%s <adverse%- affect ot(er
countries2
POSITI#E $SPECTS OF GREEN %$R&ETING
1) 8irst and fore&ost/ a !ood !reen &aretin! pro!ra& is one t(at eit(er= adds rene'a$%es
t(at 'ou%d not a%read- $e added or supports rene'a$%e pro>ects t(at &i!(t not ot(er'ise
continue to operate2 If t(ese t(in!s are a%read- (appenin! and $ein! paid for $- a%%/ t(en
t(e pro!ra& doesn?t &eet t(e $otto&6%ine test= !reen &aretin! pro!ra&s &ust &ae a
difference2
2) A si!n of a !ood !reen &aretin! pro!ra& is one t(at (as stron! %ins to %oca%
environ&enta% !roups and t(at ac(ieves $road support a&on! re!iona% and nationa%
!roups 'it( an interest in pro&otin! rene'a$%e po'er2 Pu$%ic Service of +o%orado/ for
e;a&p%e/ (as deve%oped a c%ose 'orin! partners(ip 'it( t(e @and and Aater 8und and
ot(er environ&enta% !roups in t(e state2
3) A !reen &areter t(at is serious%- interested in !reenin! t(e e%ectric s-ste& 'i%% (ave a
pro!ra& t(at is %ined to a %ar!er vision and a strate!ic p%an for &ain! rene'a$%es an
increasin!%- %ar!er part of t(e !eneration &i;2 A !ood e;a&p%e of t(is is +entra% and
Sout('est?s recent decision to acBuire a si!nificant a&ount of rene'a$%es capacit-/ 'it(
t(e intent of rate$asin! a !ood portion of it/ and su$scri$in! t(e rest t(rou!( a !reen
pricin! pro!ra&2
") 8or !reen &aretin! pro!ra&s to $e successfu% in t(e %on! run/ t(e- s(ou%d $ot(
i&prove t(e environ&ent and $e fair to consu&ers2 Prices s(ou%d not $e e;cessive%-
(i!(er t(an t(e actua% cost of t(e resources in t(e portfo%io2 T(is is particu%ar%- true for
!reen pricin! pro!ra&s/ '(ic( are scrutini:ed $- re!u%ators/ and in i&perfect%-
co&petitive &arets/ $ecause in t(ese cases/ t(ere is no rea% co&petition in t(e !reen
&aret2 In &arets t(at are vi$rant%- co&petitive and in '(ic( consu&ers (ave !ood
infor&ation/ t(is is %ess of a pro$%e& since %o'er6cost providers can co&pete to disp%ace
t(ose providers c(ar!in! e;cessive prices2
NEG$TI#E $SPECTS OF GREEN %$R&ETING
1) Se%%in! !reen po'er at a &ar6up t(at 'ou%d (ave $een produced an-'a- 'it( t(e cost
s(ared $- a%%2 An e;a&p%e of t(is 'ou%d $e rene'a$%e po'er t(at is a%read- inc%uded or
'ou%d $e inc%uded in a uti%it-?s rate$ase 'it(out t(e !reen pro!ra&2 T(ese t-pes of
pro!ra&s se%% not(in! as if it is so&et(in!/ '(ic( is 'orse t(an doin! no !reen &aretin!
at a%%/ $ecause t(ese pro!ra&s are funda&enta%%- unfair and $reed consu&er c-nicis&2 If
'e per&it t(ese t-pes of pro!ra&s to occur/ t(e- 'i%% under&ine t(e &aret for t(ose
&areters '(o are actua%%- &ain! a difference2
2) Pro!ra&s t(at do not in so&e 'a- direct%- $enefit t(e rene'a$%e !enerator2 An
e;a&p%e of t(is 'ou%d $e a uti%it- t(at (as an e;istin! po'er purc(ase contract 'it( a
rene'a$%e !enerator/ $ut does not f%o' an- $enefit t(rou!( to t(e !enerator2
3) Pro!ra&s t(at &ae fa%se c%ai&s and do not adeBuate%- infor& consu&ers a$out t(e
nature of t(eir product2 8or e;a&p%e/ se%%in! Cnuc%ear and coa% freeC po'er '(en
consu&er do%%ars are sent to a nuc%ear6 and coa%6o'nin! uti%it-2 T(is is a recipe for
creatin! c-nicis&/ once t(e anti6nuc%ear consu&ers find out t(eir do%%ars (ave $een
c(anne%ed to t(e o'ners of p%ants t(e- dis%ie2 E%ectrons and do%%ars are fun!i$%e/ so/ in
t(ese inds cases/ un%ess t(e &areter can prove to t(e pu$%ic t(at t(e consu&er do%%ars
t(e- are co%%ectin! do not in an- 'a- support t(e nuc%ear and coa% p%ants/ and support
on%- t(e resources c%ai&ed as C!reen/C suc( c%ai&s s(ou%d not $e &ade2 T(is is not to sa-
t(at portfo%ios necessari%- need to $e nuc%ear6 and coa%6free for &areters to &ae !reen
c%ai&s/ $ut &areters s(ou%d not &isrepresent t(eir portfo%io2
") +o%%ectin! pre&iu&s in e;c(an!e for va!ue pro&ises to $ui%d rene'a$%es in t(e future2
+onsu&ers s(ou%d not $e ased to pa- for so&eone e%se?s invest&ent '(en t(e- !et
not(in! in return/ and '(en no tan!i$%e $enefit to societ- resu%ts2
PRO'(E%S )IT* GOING GREEN
Dne of t(e &ain pro$%e&s is t(at fir&s usin! !reen &aretin! &ust ensure t(at t(eir
activities are not &is%eadin! to consu&ers or industr-/ and do not $reac( an- of t(e
re!u%ations or %a's dea%in! 'it( environ&enta% &aretin!2 Anot(er pro$%e& fir&s face is
t(at t(ose '(o &odif- t(eir products due to increased consu&er concern &ust contend
'it( t(e fact t(at consu&ers? perceptions are so&eti&es not correct %ie in McDona%d?s
case '(ere it (as rep%aced its c%a& s(e%%s 'it( p%astic coated paper2 A(en fir&s atte&pt to
$eco&e socia%%- responsi$%e/ t(e- &a- face t(e ris t(at t(e environ&enta%%- responsi$%e
action of toda- 'i%% $e found to $e (ar&fu% in t(e future2 T(is &a- e;p%ain '(- so&e
fir&s/ %ie +oca6+o%a and Aa%t Disne- Aor%d/ are $eco&in! socia%%- responsi$%e 'it(out
pu$%ici:in! t(e point2 T(e- &a- $e protectin! t(e&se%ves fro& potentia% future ne!ative
$ac%as(/ if it is deter&ined t(e- &ade t(e 'ron! decision in t(e past2
Govern&ents 'ant to &odif- consu&er $e(avior t(us t(e- need to esta$%is( a different
set of re!u%ations and so&eti&es &a- resu%t in a pro%iferation of re!u%ations and
!uide%ines/ 'it( no one centra% contro%%in! $od-2
Reactin! to co&petitive pressures can cause a%% Cfo%%o'ersC to &ae t(e sa&e &istae as
t(e C%eader2C A cost%- e;a&p%e of t(is 'as t(e Mo$i% +orporation '(o fo%%o'ed t(e
co&petition and introduced C$iode!rada$%eC p%astic !ar$a!e $a!s2 A(i%e tec(nica%%- t(ese
$a!s 'ere $iode!rada$%e/ t(e conditions under '(ic( t(e- 'ere disposed did not a%%o'
$iode!radation to occur2 Mo$i% 'as sued $- severa% 5S states for usin! &is%eadin!
advertisin! c%ai&s 2 T(us $%ind%- fo%%o'in! t(e co&petition can (ave cost%- ra&ifications2
End6of6pipe so%utions &a- not actua%%- reduce t(e 'aste $ut rat(er s(ift it around/ t(ou!(
it &a- &ini&i:e its s(ort ter& affects2 5%ti&ate%- &ost 'aste produced 'i%% enter t(e
'aste strea&/ t(erefore to $e environ&enta%%- responsi$%e or!ani:ations s(ou%d atte&pt to
&ini&i:e t(eir 'aste/ rat(er t(an find CappropriateC uses for it2
GREEN %$R&ETING + $DOPTION ', T*E FIR%S-
Green &aretin! (as $een 'ide%- adopted $- t(e fir&s 'or%d'ide and t(e fo%%o'in! are
t(e possi$%e reasons cited for t(is 'ide adoption=
1) DPPDRT5NITIES
As de&ands c(an!e/ &an- fir&s see t(ese c(an!es as an opportunit- to $e e;p%oited and
(ave a co&petitive advanta!e over fir&s &aretin! non6environ&enta%%- responsi$%e
a%ternatives2 So&e e;a&p%e of fir&s '(o (ave strived to $eco&e &ore environ&enta%%-
responsi$%e/ in an atte&pt to $etter satisf- t(eir consu&er needs are=
McDona%d?s rep%aced its c%a& s(e%% paca!in! 'it( 'a;ed paper $ecause of
increased consu&er concern re%atin! to po%-st-rene production and D:one
dep%etion2
Tuna &anufacturers &odified t(eir fis(in! tec(niBues $ecause of t(e increased
concern over driftnet fis(in!/ and t(e resu%tin! deat( of do%p(ins2
Eero; introduced a C(i!( Bua%it-C rec-c%ed p(otocopier paper in an atte&pt to
satisf- t(e de&ands of fir&s for %ess environ&enta%%- (ar&fu% products2
2) SD+IA@ RESPDNSI7I@ITF
Man- fir&s are $e!innin! to rea%i:e t(at t(e- are &e&$ers of t(e 'ider co&&unit- and
t(erefore &ust $e(ave in an environ&enta%%- responsi$%e fas(ion t(us resu%tin! in
environ&enta% issues $ein! inte!rated into t(e fir&?s corporate cu%ture2
An e;a&p%e of a fir& t(at does not pro&ote its environ&enta% initiatives is +oca6+o%a
'(ic( invested %ar!e su&s of &one- in various rec-c%in! activities/ as 'e%% as (avin!
&odified t(eir paca!in! to &ini&i:e its environ&enta% i&pact2 Anot(er fir& '(o is ver-
environ&enta%%- responsi$%e $ut does not pro&ote t(is fact/ at %east outside t(e
or!ani:ation/ is Aa%t Disne- Aor%d 9ADA) 'it( an e;tensive 'aste &ana!e&ent
pro!ra& and infrastructure2
3) GDGERNMENTA@ PRESS5RE
Govern&enta% re!u%ations re%atin! to environ&enta% &aretin! are desi!ned to protect
consu&ers t(rou!( re!u%ations desi!ned to contro% t(e a&ount of (a:ardous 'astes
produced $- fir&s $- issuin! of various environ&enta% %icenses/ t(us &odif-in!
or!ani:ationa% $e(avior2 In so&e cases !overn&ents tr- to CinduceC fina% consu&ers to
$eco&e &ore responsi$%e $- ta;in! individua%s '(o act in an irresponsi$%e fas(ion2 8or
e;a&p%e in Austra%ia t(ere is a (i!(er !as ta; associated 'it( %eaded petro%2
") +DMPETITIGE PRESS5RE
Anot(er &a>or force in t(e environ&enta% &aretin! area (as $een fir&s? desire to
&aintain t(eir co&petitive position2 In &an- cases fir&s o$serve co&petitors pro&otin!
t(eir environ&enta% $e(aviors and atte&pt to e&u%ate t(is $e(avior2 In so&e instances t(is
co&petitive pressure (as caused an entire industr- to &odif- and t(us reduce its
detri&enta% environ&enta% $e(avior2 8or e;a&p%e/ it cou%d $e ar!ued t(at Eero;?s CRevive
100H Rec-c%ed paperC 'as introduced a fe' -ears a!o in an atte&pt to address t(e
introduction of rec-c%ed p(otocopier paper $- ot(er &anufacturers2 In anot(er e;a&p%e
'(en one tuna &anufacture stopped usin! driftnets t(e ot(ers fo%%o'ed suit2
#) +DST DR PRD8IT ISS5ES
Disposin! of environ&enta%%- (ar&fu% $-6products/ suc( as po%-c(%orinated $ip(en-%
9P+7) conta&inated oi% are $eco&in! increasin!%- cost%- and in so&e cases difficu%t2 In
&ini&i:in! 'astes fir&s often deve%op &ore effective production processes t(at reduces
t(e need for so&e ra' &ateria%s t(us servin! as a dou$%e cost savin!s2 In ot(er cases
fir&s atte&pt to find end6of6pipe so%utions/ instead of &ini&i:in! 'aste $- tr-in! to find
&arets or uses for t(eir 'aste &ateria%s/ '(ere one fir&?s 'aste $eco&es anot(er fir&?s
input of production2
GREEN CODE
G enera%ise 'it( care2 +onsu&er $e(aviour 'i%% not necessari%- $e consistent across
different product t-pes/ and particu%ar &aret se!&ents &a- respond to certain issues on
t(e !reen a!enda $ut not ot(ers2
R e&e&$er/ t(e va%idit- of a piece of &aret researc( is not re%ated to t(e de!ree to '(ic(
it supports -our preferred option2
E ;p%ore t(e conte;t fro& '(ic( &aret researc( data co&es2 7e c%ear on t(e nature of
t(e sa&p%e used/ t(e Buestions ased/ t(e 'a- in '(ic( responses 'ere recorded and t(e
ti&e and p%ace fro& '(ic( t(e responses co&e2
E nsure t(at '(ere &aret researc( is crossin! internationa% $order%ines/ t(at t(e
ter&ino%o!- and interpretation re&ains consistent2 Ter&s %ie Ienvironment/ Igreen and
Iconservation do not a%'a-s trans%ate precise%- $et'een %an!ua!es2
N eutra%it- is i&portant2 Ensure t(at '(en -ou pose Buestions to consu&ers/ t(at t(e- can
&ae an- response 'it(out $ein! &ade to fee% !ui%t- or unco&forta$%e/ and ensure t(at
-our o'n preconceptions a$out t(e !reen a!enda 9suc( as an assu&ption t(at !reen
products 'i%% cost e;tra) are not encoded 'it(in t(e Buestions2
C*OOSING T*E RIG*T GREEN %$R&ETING STR$TEG,
Green &aretin! (as not %ived up to t(e (opes and drea&s of &an- &ana!ers and
activists2 A%t(ou!( pu$%ic opinion po%%s consistent%- s(o' t(at consu&ers 'ou%d prefer to
c(oose a !reen product over one t(at is %ess friend%- to t(e environ&ent '(en a%% ot(er
t(in!s are eBua%/ t(ose Cot(er t(in!sC are rare%- eBua% in t(e &inds of consu&ers2And
(opes for !reen products a%so (ave $een (urt $- t(e perception t(at suc( products are of
%o'er Bua%it- or don?t rea%%- de%iver on t(eir environ&enta% pro&ises2Fet t(e ne's isn?t a%%
$ad/ as t(e !ro'in! nu&$er of peop%e 'i%%in! to pa- a pre&iu& for !reen products J
fro& or!anic foods to ener!-6efficient app%iances J attests2
Ko'/ t(en/ s(ou%d co&panies (and%e t(e di%e&&as associated 'it( !reen &aretin!L
T(e- &ust a%'a-s eep in &ind t(at consu&ers are un%ie%- to co&pro&ise on traditiona%
product attri$utes/ suc( as convenience/ avai%a$i%it-/ price/ Bua%it- and perfor&ance2
Since t(ere is no sin!%e !reen6&aretin! strate!- t(at is ri!(t for ever- co&pan- e;perts
su!!est t(at co&panies s(ou%d fo%%o' one of four strate!ies/ dependin! on &aret and
co&petitive conditions/ fro& t(e re%ative%- passive and si%ent C%ean !reenC approac( to t(e
&ore a!!ressive and visi$%e Ce;tre&e !reenC approac( J 'it( Cdefensive !reenC and
Cs(aded !reenC in $et'een2 Mana!ers '(o understand t(ese strate!ies and t(e under%-in!
reasonin! $e(ind t(e& 'i%% $e $etter prepared to (e%p t(eir co&panies $enefit fro& an
environ&enta%%- friend%- approac( to &aretin!2
CONC(USION
Green &aretin! covers &ore t(an a fir&?s &aretin! c%ai&s2 A(i%e fir&s &ust $ear
&uc( of t(e responsi$i%it- for environ&enta% de!radation/ t(e responsi$i%it- s(ou%d not $e
t(eirs a%one2
5%ti&ate%- !reen &aretin! reBuires t(at consu&ers 'ant a c%eaner environ&ent and are
'i%%in! to Cpa-C for it/ possi$%- t(rou!( (i!(er priced !oods/ &odified individua%
%ifest-%es/ or even !overn&enta% intervention2 5nti% t(is occurs it 'i%% $e difficu%t for fir&s
a%one to %ead t(e !reen &aretin! revo%ution2
Kavin! said t(is/ it &ust not $e for!otten t(at t(e industria% $u-er a%so (as t(e a$i%it- to
pressure supp%iers to &odif- t(eir activities2 T(us an environ&enta% co&&itted
or!ani:ation &a- not on%- produce !oods t(at (ave reduced t(eir detri&enta% i&pact on
t(e environ&ent/ t(e- &a- a%so $e a$%e to pressure t(eir supp%iers to $e(ave in a &ore
environ&enta%%- Cresponsi$%eC fas(ion2 8ina% consu&ers and industria% $u-ers a%so (ave
t(e a$i%it- to pressure or!ani:ations to inte!rate t(e environ&ent into t(eir corporate
cu%ture and t(us ensure a%% or!ani:ations &ini&i:e t(e detri&enta% environ&enta% i&pact
of t(eir activities2 T(us !reen &aretin! s(ou%d %oo at &ini&i:in! environ&enta% (ar&/
not necessari%- e%i&inatin! it2