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1. EXECUTIVE SUMMARY
Terms like "Green Marketing" and "Environmental Marketing" appear frequently in the popular press. Many governments around the world have become so concerned about green marketing activities that they have attempted to regulate them. Other similar terms used are Environmental Marketing and Ecological Marketing. American Marketing Association Define: - Green marketing is the marketing of products that are presumed to be environmentally safe. Thus green marketing incorporates a broad range of activities including: Product modification, Changes to the production process, Packaging changes, As well as modifying advertising
To succeed, any green strategy must fulfill three criteria: ✔ Firstly, it must be a sustainable and credible programmed, which brings real benefits to the environment. ✔ Secondly, it must deliver sound economic ROI and competitive advantage to the business. ✔ Thirdly, it must be supported by relevant green messages, which resonate with customers and prospects. Basically the main aim of the project is to analyze the developments which are taking place throughout the world to promote green products and green marketing.
➢ Title of the project:
The title of the project is “Consumer awareness towards Green Marketing.”
Consumer Awareness towards Green Marketing
➢ Objectives of Research:
To understand the level of awareness regarding green marketing among consumers. To understand the buying behavior of consumers related to green marketing. To understand how green marketing helps Company to built its image. To understand initiative taken by government towards green marketing. To understand the success of green marketing as a corporate social responsibility.
➢ Limitations of the study: • Demographic Constraints - will be a main issue of concern. This is
due to the reason that the data collection will be restricted to the Borivali and Kandivali region. Unawareness - people are unaware of the i.e. Green marketing. Time Constraint - the time duration for doing the complete research on green marketing is very limited. Green Marketing a broad topic which requires an in-depth research and analysis. Due to the time period given for research is very limited.
2. RESEARCH METHODOLOGY
Consumer Awareness towards Green Marketing
Research Methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. When we talk of research methodology we not only talk of the research methods but also consider the logic behind the methods we use in the context of our research study and explain why we are using a particular method or technique and why we are not using others. The major steps involved in research process are: Formulating the Research Problem Choice of Research Design Sources of Data Processing and analyzing the data
Formulating the Research Problem:
The problem well defined is half solved. The formulation of a general topic into a specific research problem constitutes the first step of specific enquiry. Unit of analysis: Consumers between age group of 25 to 30 yrs. Characteristics of Interest: Awareness of Green Marketing.
Choice of Research Design: Every project requires an action plan and method for conducting a study. This project is more prone to single cross-sectional descriptive research design.
Consumer Awareness towards Green Marketing
Sources of Data:
The data presented are both primary data and secondary data. Primary Data: The primary data are those which are collected afresh and for the first time, and thus happen to be original in character. We collect primary data during the course of doing experiments in an experimental research but in case we do research of the descriptive type and performs surveys. Here the Primary data will be collected by means of preparing a questionnaire and getting it filled by a large sample space. These questionnaires will help in drawing conclusions about the case.
Secondary Data: Secondary data means data that are already available i.e. they refer to the data which have already been collected and analyzed by someone else. When the researcher utilizes secondary data then he has to look into various sources from where he can obtain them. In this case he is certainly not confronted with the problems that are usually associated with the collection of original data. Secondary data may either be published data or unpublished data.
Processing and analyzing the data: The data analysis has been done in correct form. Usage of current information & graph is made in the project so as to make it easier & appropriate to understand.
3. INTRODUCTION TO GREEN MARKETING Environmental issues have gained importance in business as well as in public life throughout the world. It is not like that a few leaders of different countries
Consumer Awareness towards Green Marketing
or few big renowned business houses are concerned about the day to day deterioration of oxygen level in our atmosphere but every common citizen of our country and the world is concerned about this common threat of global warming. So in this scenario of global concern, corporate houses has taken greenmarketing as a part of their strategy to promote products by employing environmental claims either about their attributes or about the systems, policies and processes of the firms that manufacture or sell them.
Thus green marketing incorporates a broad range of activities. promotion and place). along with manipulating the traditional marketing mix (product. including 6 .1 Definition & Meaning According to the American Marketing Association. green marketing is the marketing of products that are presumed to be environmentally safe. So we can say green marketing covers a broad range of activities. 3.Consumer Awareness towards Green Marketing Clearly green marketing is part and parcel of overall corporate strategy. price. it require an understanding of public policy process.
Such a product or service may be environmentally friendly in itself or produced and/or packaged in an environmentally friendly way. 7 .Consumer Awareness towards Green Marketing Product modification. Packaging changes. in simple terms Green marketing refers to the process of selling products and/or services based on their environmental benefits. Changes to the production process. as well as Modifying advertising. So.
Consumer Awareness towards Green Marketing Green marketing consists of all activities designed to generate and facilitate any exchanges intended to satisfy human needs or wants. such that the satisfaction of these needs and wants occurs. with minimal detrimental impact on the natural environment. 8 .
Consumer Awareness towards Green Marketing The many meanings of green The different meanings of GREEN 9 .
According to Peattie (2001). and during this period all marketing activities were concerned to help environment problems and provide remedies for environmental problems. It came into prominence in the late 1990s and early 2000. 3. which take care of pollution and waste issues. ✔ Second phase was "Environmental" green marketing and the focus shifted on clean technology that involved designing of innovative new products.3 Importance of Green Marketing 10 .Consumer Awareness towards Green Marketing 3. the evolution of green marketing has three phases: ✔ First phase was termed as "Ecological" green marketing.2 Evolution of Green Marketing The green marketing has evolved over a period of time. ✔ Third phase was "Sustainable" green marketing.
In market societies where there is "freedom of choice". Five possible reasons cited are: Organizations perceive environmental marketing to be an opportunity that can be used to achieve its objectives. as well as achieving the selling organization's objectives. Organizations believe they have a moral obligation to be more socially responsible. As firms face limited natural resources. it has generally been accepted that individuals and organizations have the right to attempt to have their wants satisfied. Cost factors associated with waste disposal. 11 . Ultimately green marketing looks at how marketing activities utilize these limited resources. or reductions in material usage forces firms to modify their behavior. Competitors' environmental activities pressure firms to change their environmental marketing activities.Consumer Awareness towards Green Marketing Human Beings have limited resources on the earth. they must develop new or alternative ways of satisfying these unlimited wants. There is extensive debate as to whether the earth is a resource at man's disposal. with which she/he must attempt to provide for the worlds' unlimited wants. both of individuals and industry. Governmental bodies are forcing firms to become more responsible. while satisfying consumers wants. When looking through the literature there are several suggested reasons for firms increased use of Green Marketing.
Bringing out product modifications. ✔ ✔ ✔ ✔ ✔ ✔ ✔ Reinvent the concept of product. Modifying advertising. Make environmentalism profitable. Changing in production processes. 12 . Make prices reflect actual and environmental costs.Consumer Awareness towards Green Marketing 3.4 GOALS OF GREEN MARKETING ✔ Eliminate the concept of waste. Packaging changes.
6 Challenges in Green Marketing 13 . So green marketing by the business class is still in the selfish anthological perspective of long term sustainable business and to please the consumer and obtain the sanction license by the governing body. Every person rich or poor would be interested in quality life with full of health and vigour and so would the corporate class. But harm to environment cost by sustain business across the globe is realized now though off late.Consumer Awareness towards Green Marketing 3.5 Need of Green Marketing: An Anthropological View Issues like Global warming and depletion of ozone umbrella are the main for the healthy survival. Industries in Asian countries are catching the need of green marketing from the developed countries but still there is a wide gap between their understanding and implementation. Financial gain and economic profit is the main aim of any corporate business. This sense is building corporate citizenship in the business class. 3.
By India’s ayurvedic heritage. In those aspects the consumer is already aware and will be inclined to accept the green products. A standard quality control board needs to be in place for such labeling and licensing. The new green movements need to reach the masses and that will take a lot of time and effort. Indian consumers do appreciate the importance of using natural and herbal beauty products. But it is still a new concept for the masses. ➢ New Concept: Indian literate and urban consumer is getting more aware about the merits of Green products. There is no standardization currently in place to certify a product as organic. There is no standardization to authenticate these claims. Unless some regulatory bodies are involved in providing the certifications there will not be any verifiable means. ➢ Patience and Perseverance: 14 . Indian consumer is exposed to healthy living lifestyles such as yoga and natural food consumption.Consumer Awareness towards Green Marketing Need For Standardization: It is found that only 5% of the marketing messages from “Green” campaigns are entirely true and there is a lack of standardization to authenticate these claims. The consumer needs to be educated and made aware of the environmental threats.
e. it will have its own acceptance period. and motivate consumers to switch brands or even pay a premium for the greener alternative. Since it is a new concept and idea. 3. the primary reason why consumers buy certain products in the first place.Consumer Awareness towards Green Marketing The investors and corporate need to view the environment as a major longterm investment opportunity. Do this right. Therefore. Also if the green products are priced very high then again it will lose its market acceptability. ➢ Avoiding Green Myopia: The first rule of green marketing is focusing on customer benefits i. more 15 . It is not going to help if a product is developed which is absolutely green in various aspects but does not pass the customer satisfaction criteria. the marketers need to look at the long-term benefits from this new green movement. This will lead to green myopia.7 Benefits of Green Marketing Today’s consumers are becoming more and more conscious about the environment and are also becoming socially responsible. It will require a lot of patience and no immediate results.
Some of the advantages of green marketing are: It ensures sustained long term growth along with profitability. It helps the companies market their products and services keeping the environment aspects in mind. 4. though initially the cost is more. Most of the employees also feel proud and responsible to be working for an environmentally responsible company. Many companies want to have an early mover advantage as they have to eventually move towards becoming green. PRESENT TREND IN GREEN MARKETING 4. It helps in accessing the new markets and enjoying the competitive advantage.1 GREEN Code 16 . It saves money in the long run.Consumer Awareness towards Green Marketing companies are responsible to consumer’s aspirations for environmentally less damaging or neutral products.
Neutrality is important. that they can make any response without being made to feel guilty or uncomfortable. (Whirlpool learned the hard 17 . Ensures that where market research is crossing international borderlines. you first need to make sure that the consumer is aware of and concerned about the issues that your product attempts to address. Be clear on the nature of the sample used.2 Golden Rules of Green Marketing 1.Consumer Awareness towards Green Marketing Generalizes with care. the way in which responses were recorded and the time and place from which the responses come. ‘green’ and ‘conservation’ do not always translate precisely between languages. and ensure that your own preconceptions about the green agenda (such as an assumption that green products will cost extra) are not encoded within the questions. Consumer behavior will not necessarily be consistent across different product types. that the terminology and interpretation remains consistent. and particular market segments may respond to certain issues on the green agenda but not others. 4. Terms like ‘environment’. Ensure that when you pose questions to consumers. Know your customer: If you want to sell a greener product to consumers. the validity of a piece of market research is not related to the degree to which it supports your preferred option. Explores the context from which market research data comes. Remembers. the questions asked.
cannot afford premiums for any type of product these days. 4.Consumer Awareness towards Green Marketing way that consumers wouldn’t pay a premium for a CFC-free refrigerator because consumers didn’t know what CFCs were!). and that’s not very kind to the environment. Consider your pricing: If you're charging a premium for your product — and many environmentally preferable products cost more due to economies of scale and use of higher-quality ingredients — make sure that consumers can afford the premium and feel it’s worth it. of course. much less greener ones. Reassure the buyer: Consumers need to believe that your product performs the job it’s supposed to do — they won't forego product quality in the name of the environment. 2. This is called “empowerment” and it’s the main reason why consumers buy greener products.) 5. by themselves or in concert with all the other users of your product. products that don’t work will likely wind up in the trash bin. Many consumers. (Besides.3 Green Marketing Strategies V/S Conventional Marketing 18 . Empower consumers: Make sure that consumers feel. that they can make a difference. Caution: There’s a lot of skepticism out there that is fueled by the raft of spurious claims made in the “go-go” era of green marketing that occurred during the late 80s–early90s — one brand of household cleaner claimed to have been “environmentally friendly since 1884”! 4. Be transparent: Consumers must believe in the legitimacy of your product and the specific claims you are making. 3. so keep this in mind as you develop your target audience and product specifications.
4 GREEN MARKETING MIX PRODUCT 19 . long term 4. interdependent. Products Marketing And Communication Educational values Corporate Proactive. cooperative.Consumer Awareness towards Green Marketing Green Marketing Consumers Human beings with lives “Cradle-to cradle” flexible services Conventional Marketing Consumers with lifestyles “cradle-to-gave” one size fits for all products Selling oriented and benefits Receptive. independent. competitive. holistic. departmentalized. short term oriented profit maximizing.
Products that can be recycled or reused. PRICE Pricing is the critical element of the marketing mix. A service that rents or loans products-toy libraries. for example. The increasingly wide variety of products on the market that support sustainable developments are: ✔ Products made from recycled goods. Products with environmentally responsible packaging. as long as they offer substantiation. Most customers will only be prepared to pay a premium if there is a perception of additional product 20 . such as Quick’ N Tuff housing ✔ ✔ ✔ ✔ ✔ ✔ ✔ materials made from recycled broccoli boxes. changed their packaging from polystyrene clamshells to paper. Efficient products. Organic butchers. which save water. Organic products-many customers are prepared to pay a premium for organic products. promote the added qualities such as taste and tenderness. which meet or exceed environmentally responsible criteria. save money and reduce environmental impact. McDonalds. Products with green labels. which offer promise of quality. for example.Consumer Awareness towards Green Marketing Entrepreneurs wanting to exploit emerging green markets either: Identify customers’ environmental needs and develop products to address these needs or will develop environmentally responsible products to have less impact than competitors. Certified products. energy or gasoline. Whatever the product or service. it is vital to ensure that products meet or exceed the quality expectation of customers and is thoroughly tested.
This value may be improved performance. PROMOTION 21 . Environmental benefits will be often being the deciding factor between products of equal value or quality. Environmentally responsible products. visual appeal or taste. function. Very few customers go out of their way to buy green products merely for the sake of it. This can be achieved by in-store promotions and visually appealing displays or using recycled materials to emphasize the environmental and other benefits. Marketers looking to successfully introduce new green products should position them broadly in the market place so they are not just appealing to a small green niche market. for example fuel-efficient vehicles. PLACE The choice of where and when to make products available will have significant impact on the customers you attract. water efficient printing and non-hazardous products. The location must differentiate you from the competitors. design. however are often less expensive when product life cycle coast are taken into consideration. The location must also be consistent with the image you want to project and allow you to project your own image rather than being dominated or compromised by the image of venue.Consumer Awareness towards Green Marketing value.
Problems. e-marketing is rapidly replacing more traditional marketing methods and printed materials can be produced using recycled materials and efficient processes such as waterless printing. direct marketing and on-site promotions. After integrating external and internal 7P’s. Here external 7 P’s consists of Paying customers.Consumer Awareness towards Green Marketing Promoting products and services to target markets include paid advertising. internal 7P’s consists of Products. After integrating external and internal P’s. For example. Pressure groups. green success will automatically come through four S’s. we can 22 . Providers. 4. Promotion.5 Green Marketing Process Green marketing process comprises with external and internal P’s. Retailers. Smart green marketers will be able to reinforce environmental credibility by using sustainable marketing and communication tools and practices. environmental groups and research organizations. public relations. for example are recognizing the value of alliances with other companies. Providing information. some retailers sell shopping bags and promote their green commitments. Predictions and Partners. Price. When promoting their environmental commitment to reduce the use of plastic bags and promote their green commitment. Place. Politicians. many companies in the financial industry are providing electronic statements by email. sales promotions. Processes and Policies.
6 Green Marketing: A Corporate Initiative The S’s of Green Success · Satisfaction – of stakeholder needs · Safety – of products and processes · Social acceptability – of the company · Sustainability – of its activities Green important in because limited earth and if we Marketing is today’s world mankind has resources on the want long term 23 . External Green P’s • Paying customers • Providers • Politician’s • Pressure groups • Problems • Predictions • Partners Internal Green P’s • Products • Promotion • Price • Place • Providing information • Processes • Policies Green Marketing 4. Social acceptability – of the company and Sustainability – of its activities. Safety – of products and processes.Consumer Awareness towards Green Marketing find out the green successes through 4 S’s such as Satisfaction – of stakeholder needs.
The CFC depletes the ozone layer and also is a major cause of global warming. Companies have converted almost all the products to make them eco-friendly products. Corporate are going green from the grassroots level to sustain and win the customers’ expectations. Maruti Suzuki The company has remained ahead of regulatory requirements in pursuit of environment protection and energy conservation at its manufacturing facilities. and in development of products that use fewer natural resources and are environment friendly. The environment is becoming increasingly important part of the corporate reputations and they are actively participating in greening the corporate strategy. The company credited the 'Just-in-Time' philosophy 24 . then companies has to learn to conserve these scarce natural resources and create products that have less environmental damage. Following are the recent environment friendly initiatives taken by the companies. These inhalers are using HFA (Hydro Fluro Alkaline) technology. The Rota haler and the Asthalin inhaler are environment – friendly inhalers. The Rota haler is a powder based inhaler. different from regular inhaler which contains propellants. Cipla: CFC-free Inhaler: Cipla. used by asthma and bronchitis patients.Consumer Awareness towards Green Marketing sustainability of human life on this earth’s surface. Cipla has updated the necessary technology to avoid the CFC and has also done its clinical trial in India and overseas. India’s second largest drug company by market share has planned and started replacing all its CFC contained drugs to meet the international standard and Montreal Protocol ban deadline. Otherwise the very existence of humankind will be under question mark.
The company has implemented rain water harvesting to recharge the aquifers. The company has been facilitating implementation of Environment Management System (EMS) at its suppliers' end. recyclable packing for bought out components is being actively promoted.Consumer Awareness towards Green Marketing adopted and internalized by the employees as the prime reason that helped to excel in this direction. Cleaner fuels such as Greener Diesel 25 . The company has been promoting 3R since its inception. It also ran a program to cut production of greenhouse gases by 10% across its units worldwide and achieved it much ahead of schedule. Surveys are conducted to assess the vendors who need more guidance. Bharat Petroleum Bharat Petroleum launched a campaign to position itself as a responsible corporate ‘green’ entity. The green co-efficient of this system is much better than the conventional system. As a result the company has not only been able to recycle 100% of treated waste water but also reduced fresh water consumption. The systems and the environmental performance of suppliers are audited. while its carbon dioxide (CO2) emissions during car manufacturing processes has come down 39 per cent in the past five years. Also. Regular training programs are conducted for all the suppliers on EMS. The model with gas as fuel was adopted by Maruti Suzuki India Limited as their Green Marketing practices. Foraying into renewable energy-solar and wind power-it installed solar panels on its service stations. The Country’s largest car manufacturer had managed to slash energy consumption per car at its Gurgaon factory by 26 per cent over the past six years.
Consumer Awareness towards Green Marketing (ultra low sulphur content) and BP Auotgas were developed. Health and Safety Management Systems in ITC conform to the best international standards. Working with utility companies. ITC's businesses generate livelihoods for over 5 million people. Hindustan Petroleum Hindustan petroleum owns a massive e-waste recycling plants. Almost all of its plants are ISO 14001 certified. its own machines are 100 percent recyclable. opportunities for products offering efficiency and savings are destined for market growth. It has promised to cut energy consumption by 20 percent by 2010. is designed to clean clothes effectively in cold water. All Environment. Tide Coldwater. Proctor & Gamble’s (P&G) newest market entry. where enormous shredders and granulators reduce four million pounds of computer detritus each month to bite-sized chunks-the first step in reclaiming not just steel and plastic but also toxic chemicals like mercury and even some precious metals. P and G found that consumers could save energy and resources by using cold rather than warm water. It has been 'Water Positive' six years in a row creating three times more Rainwater Harvesting potential than ITC's net consumption. As energy and resource prices continue to soar. Proctor & Gamble Laundry detergents are also touting energy savings. About 80 to 85 percent of the energy used to wash clothes from heating water. It has obtained close to 100% solid waste recycling. 26 . Currently it is running a program to contain its net emissions at current levels for ten years. HP will take back any brand of equipment. ITC ITC has been 'Carbon Positive’ for three years in a row sequestering/storing twice the amount of CO2 than the Company emits.
ITC's Watershed Development Initiative brings precious water to nearly 35. ISO 14001.5 Initiatives Taken By Government Development of ISO 14000 Series of Standards. 14010.Consumer Awareness towards Green Marketing ITC's globally recognized E-Choupal initiative is the world's largest rural digital infrastructure benefiting over 4 million farming families.000 hectares of dry lands and moisture-stressed areas. 4. The ISO 14000 family of standards (i.e. supplementary education.000 hectares creating an estimated 35 million person days of employment among the disadvantaged. 14011 and 1412) were published as an official document in 1996. 14004. ITC's Sustainable Community Development initiatives include women empowerment. ISO has been developed to help any company in any country to meet the goal of sustainable development and environmental friendliness. ITC's Social and Farm Forestry initiative has greened over 80. integrated animal husbandry programs. The ISO series aims to provide guidance for developing a comprehensive approach to environmental 27 .
28 . The objectives of the scheme are: • To provide incentives to manufacturers and importers to reduce the adverse environmental impact of products. The objective of eco-labeling is to provide authentication to genuine claims regarding the environmental impact of products and processes by manufacturers. • They are recycled and/or recyclable whereas comparable products are not. usage and disposal. • To encourage citizens to purchase products which have less environmental impact. In India the government has introduced the eco-mark scheme since 1981. • To reward genuine initiatives by companies to reduce adverse impact of environmental impact of products. • To assist consumers to become environmentally responsible in their daily lives by providing them information to take account of environmental factors in their daily lives. Eco-Labeling Initiatives Eco label provide information regarding the environmental performance of products.Consumer Awareness towards Green Marketing management and for standardizing some key environmental tools of analysis such as labeling and life cycle assessment. Eco-Labeling Schemes in India The Ministry of environment and forest of government of India has prescribed the following criteria for products that: • They cause substantially less pollution than comparable products in production. • They contribute to a reduction on adverse environmental health consequences.
does not produce hazardous waste and consume little energy in making. products which are less harmful to the environment or have benign impact on environment through the various stages of development-manufacture. packaging. Eco-Mark in India Under the concept. use and disposal or recycling may be awarded the Eco-Mark.As demands change. distribution. many firms see these changes as an opportunity to be exploited and have a competitive advantage over firms marketing non-environmentally responsible alternatives. Green marketing has been widely adopted by the firms worldwide and the following are the possible reasons cited for this wide adoption: 1) Opportunities . Some examples of 29 . An earthen pot has been chosen as the logo for Eco-Mark scheme in India. Its image has the ability to reach people and help to promote a greater awareness of the need to be kind to the environment. • Their price is not exorbitantly higher than comparable products. 4. As a symbol it puts across its environmental message. The familiar earthen pot has renewable resource like earth. The logo Eco-Mark scheme signifies that the product which carries it does least damage to the environment. standards and regulations pertaining to the environment.Consumer Awareness towards Green Marketing • They comply with laws.6 Reasons for adoption of Green Marketing by the Firms.
3) Competitive Pressure . 2) Governmental Pressure .Another major force in the environmental marketing area has been firms' desire to maintain their competitive position. Reduce production of harmful goods or by-products. in an attempt to better satisfy their consumer needs are: McDonald's replaced its clam shell packaging with waxed paper because of increased consumer concern relating to polystyrene production and Ozone depletion. Governmental regulations relating to environmental marketing are designed to protect consumers in several ways: 1. and the resulting death of dolphins. governments want to "protect" consumers and society. this protection has significant green marketing implications. Ensure that all types of consumers have the ability to evaluate the environmental composition of goods. Modify consumer and industry's use and/or consumption of harmful goods. In some instances this competitive pressure has caused an entire industry to modify and thus reduce its detrimental environmental behavior. it could be argued that Xerox's "Revive 100% Recycled paper" was introduced a few years ago in an attempt to address the introduction of recycled photocopier paper by other manufacturers. 30 . 3. In another example when one tuna manufacture stopped using driftnets the others followed suit. For example. Xerox introduced a "high quality" recycled photocopier paper in an attempt to satisfy the demands of firms for less environmentally harmful products. 2. Governments establish regulations designed to control the amount of hazardous wastes produced by firms.Consumer Awareness towards Green Marketing firms who have strived to become more environmentally responsible. In many cases firms observe competitors promoting their environmental behaviors and attempt to emulate this behavior. Tuna manufacturers modified their fishing techniques because of the increased concern over driftnet fishing.As with all marketing related activities.
WDW has an extensive waste management program and infrastructure in place. An example of a firm that does not promote its environmental initiatives is Coca-Cola. at least outside the organization. There are examples of firms adopting both strategies. is Walt Disney World (WDW). the firm was established specifically to offer consumers environmentally responsible alternatives to conventional cosmetic products. Another firm who is very environmentally responsible but does not promote this fact.Many firms are beginning to realize that they are members of the wider community and therefore must behave in an environmentally responsible fashion. Organizations like the Body Shop heavily promote the fact that they are environmentally responsible. This results in environmental issues being integrated into the firm's corporate culture. Thus many consumers may not realize that Coke is a very environmentally committed organization. rather than simply being a competitive tool. While being concerned about the environment. 31 . Coke has not used this concern as a marketing tool. This philosophy is directly tied to the overall corporate culture. yet these facilities are not highlighted in their general tourist promotional activities. This translates into firms that believe they must achieve environmental objectives as well as profit related objectives. While this behavior is a competitive advantage.Consumer Awareness towards Green Marketing 4) Social Responsibility. They have invested large sums of money in various recycling activities. as well as having modified their packaging to minimize its environmental impact.
firms are often forced to reexamine their production processes. When attempting to minimize waste. 32 .Consumer Awareness towards Green Marketing 5) Cost or Profit Issues . It has been demonstrated through case studies that how product developers and marketers have capitalized on this positive attitude and effectively differentiated their product in terms of their ‘environmentally friendly’ character. Disposing of environmentally harmful by-products. Therefore firms that can reduce harmful wastes may incur substantial cost savings. 5. and a desire to reduce those impacts. In these cases they often develop more effective production processes that not only reduce waste.1 Environmentally Conscious Consumer Behavior ‘Environmentally Conscious Behavior’ (ECCB) is consumer behavior based on some awareness of the environmental impacts associated with a product or service.Firms may also use green marketing in an attempt to address cost or profit related issues. Many researchers in the field of consumer’s psychology and market research have demonstrated a substantial growth in ECCB across a range of markets. since both waste and raw material are reduced. but reduce the need for some raw materials. This serves as a double cost savings. GREEN CONSUMER BEHAVIOR 5. such as polychlorinated biphenyl (PCB) contaminated oil are becoming increasingly costly and in some cases difficult.
a willingness to scrutinize the consequences of economic activity and a willingness to combine long-term with short-term planning. it is important to understand who green customers are and the factors influencing their purchasing decisions and behavior. Attributes of Environmentally Conscious Consumers Implication for Green Marketers 33 . Environmental consciousness is the desire to protect flora and fauna.Consumer Awareness towards Green Marketing The term environmental consciousness does not have a standardized definition in the body of academic literature. the reason can be due to arousal of the term out of political and everyday language. 5.2 Attributes of the Green Consumers To take the advantage of the emerging green market.
Select mainstream distributors wherever possible. They should be offered samples and increments to try products. effective’ rather than more generalized green messages such as ‘biodegradable’ or ‘ozone friendly’. Educate 34 . Effectively communicate assurance of quality for example quality of performances. look. or quality of life improvements. Making the use of product simplee.g. feel. Use the influence of children to Will most likely be well educated.Consumer Awareness towards Green Marketing Target products to women who generally buy On behalf of men and families. about environmental issues. fit. Will be more likely to respond to Emphasize personal benefits by using product attribute that will personally terms such as ‘safe’. Will expect green products to function as non green products and won’t pay much extra or sacrifice quality for greener products. and Reinforce product benefits with can be cynical about corporate claims evidence of corporate performance for green product unless they have and improvements. ‘cost benefit them. comfort. Products choice is still based on whether it meets their basic want or need. Environmental features are added selling points. minimize or eliminate refilling bottles. durability. Will tolerate only minimal inconvenience in using green products and don’t want to go out of their way to buy them. Will not buy green products on the basis of environmental benefits alone. ‘non-toxic’. encourage parents to try green young adult women who have more products. convenience. Like environmental attributes such as energy efficiency or toxic substance reduction with other benefits such as lower price. The green consumers of the future are generally knowledgeable money to spend. Offer one-stop shopping and eye appealing displays. Will be analytical. eager to learn.
Will not expect companies to have perfect green credentials. to convey precise. Provide credible environmental endorsements. Seek feedback and promote your efforts to respond to customer concerns. but will look for a commitment to improve and evidence backed by facts. use labels in compliance with government labeling guidelines. detailed information about your product and its packaging. consumers about environmental issues and your efforts through a variety of means.3 Green Buyers and Green Consumers 35 . Communicate your steps towards sustainability and commitments to improvement.Consumer Awareness towards Green Marketing independent verification. 5.
as business attempt to understand and respond to external pressures to improve their environmental performance.The most environmentally active segment of the ➢ ➢ ➢ ➢ society.Uninvolved or disinterested in environmental issues. don’t necessarily buy a lot of green products. and use many natural products. value.The least engaged group who believe that the environmental indifference is main stream.Fence-sitters who have embraced environmentalism more slowly.Have other priorities. would like to do more to protect the environment. who feel the issues are too big for them to solve. Greenback Greens.Very progressive on environment and society. Marketing practitioners and academics are attempting to identify and understand green consumers and their needs. figuring we’ve got time to fix the environmental problems. Apathetic.4 Consumer Information and Education 36 . Unconcerned. not too concerned about price. interested in green products that make sense in the long run. not really sure what green products are available and probably wouldn’t be interested anyway. Conventional. Drifters. SEGMENTATION OF GREEN CONSUMERS ➢ True-Blue Greens. quality and convenience. Spouts. they buy products strictly on price. looking for ➢ ➢ ➢ ➢ ways to do more. Naturalites.Those most willing to pay the highest premium for green products.Primarily concerned about personal health and wellness.Practical. Apart from this Natural Marketing Institute (NMI) divides the market into following categories: ➢ Lohas.Consumer Awareness towards Green Marketing Research about the identity and nature of green consumer has been the central character in the development of green marketing. like to see the results of what they do. 5. Grousers. and to develop market offerings that meet these needs.Not too concerned about the environment.
legislative. ➢ Develop creative print. ➢ Identify venues. Firms willing to provide clear. 6. e-mail campaigns. ➢ Strategies and plan joint PR initiatives as well as joint advertising campaigns and events to cross-promote companies and organization campaigns. and organize meals. plan innovative ways to repeatedly deliver.Consumer Awareness towards Green Marketing If managers believe that consumers view greenness as a motivating variable. speakers and press. Governmental policies and stakeholder initiatives can be important in reducing consumers’ search. identify advertising targets and purchase appropriate media slots. they should invest in conveying information through advertising. ➢ Utilize extensive relationship with local and national media to get a client’s message to the right media targets. identify appropriate links within network of political. d. brochures. b. Stakeholders can use the media as well as use their organizationspecific vehicles such as newsletters. brand labels. comprehensive and credible information must ensure that consumers have low cost to access it. Green marketing can be successfully implemented by use of ICT in cost effective way: ➢ By developing compelling. info materials. c. in-store displays and pamphlets. plan tours. ➢ Consulting and creation of a corporate design. information or transaction costs. direct mailing. nonprofit organization and media. The important points to be noted here are: a. ➢ Help develop identify and branding for print. ➢ Develop web sites. Regulators can publish and disseminate it to the media by press releases and post it on the internet. FUTURE GROWTH OF GREEN MARKETING 37 . concise messages. broadcast and digital advertising. broadcast and digital mediums. and banner advertising. identify audiences. leaflets. develop concept based programs and events.
Calibration of Consumer Knowledge: 38 . is. The question that remains. Broaden mainstream appeal by bundling consumer desired value into environmental products. what is green marketing’s future? Business scholars have viewed it as a “fringe” topic. Promote and deliver the consumer desired value of environmental products and target relevant consumer market segments. given that environmentalism’s acceptance of limits and conservation does not mesh well with marketing’s traditional axioms of “give customer what they want” and “sell as much as you can”. however. the short version of all this is that effective green marketing requires applying good marketing principles to make green products desirable for consumers. Evidence indicates that successful green products have avoided green marketing myopia by following three important principles: Consumer Value Positioning: Design environmental products to perform as well as (or better than) alternatives.Consumer Awareness towards Green Marketing There are many lessons to be learned to avoid green marketing myopia.
Frame environmental product attributes as “solutions” for consumer needs. Create engaging and educational internet sites about environmental products desired consumer value. Credibility of Product Claims: Employ environmental product and consumer benefit claims that are specific and meaningful. ANALYSIS OF EFFECTS OF GREEN MARKETING 39 . interesting and entertaining information about environmental products. Procure product endorsements or eco-certifications from trustworthy third parties and educate consumers about the meaning behind those endorsements and eco-certifications. Encourage consumer evangelism via consumers social and internet communication network with compelling. 7.Consumer Awareness towards Green Marketing Educate consumers with marketing messages that connect environmental attributes with desired consumer value.
The study attempts to expand research on exploring how many people have positive attitude towards green marketing and what are their thoughts on it. 40 .64 consumers Sample design: A sample design is definite plan for obtaining a sample from a given population. It refers to the technique or the procedure the researcher would adopt in selecting items for the samples. reliability and flexibility. representativeness. By analyzing respondents’ answers towards the questions helps to understand the various aspects related to green marketing. which fulfills the requirements of efficiency. An optimum sample is one. Of the 64 respondents 37 were male and 27 female. Sample size . it can be called convenience sampling. Sample design – consumers Sample type: Convenience sampling: .Consumer Awareness towards Green Marketing Size of sample: This refers to the numbers of items to be selected from universe to constitute a sample. RESULTS: According to the analysis of questionnaire most of the respondents were not aware about green marketing but after reading the questionnaire they realized what it is all about. This study is based on stratified sampling and a structured questionnaire has been used to gather data from about 50 respondents to analyze effects of green marketing. The respondents were between the age group of 25-27 and 28-30 yrs.when population elements are selected for inclusion in the sample based on the case of access.
Consumer Awareness towards Green Marketing ➢ Are you aware of the term “green marketing”? The above bar graph indicates that 56% of respondents are familiar with the term Green Marketing. They consider Green Marketing as something related to vegetable market or ➢ Have you heard of any campaign related to Green Marketing? 41 . But many of them have a misconception with the term Green Marketing.
Rest 56% does not know about any campaign related to Green marketing. ➢ Have you been part of any such campaign? The above graph indicates that only 17% of the total has been a part of Green Marketing campaigns.Consumer Awareness towards Green Marketing The above bar graph indicates that 44% of respondents are aware of the campaign related to Green Marketing. ➢ Do you consider the environmental aspects of the products before buying them? 42 .
only 23% consider the environmental aspect of the product while buying it.Consumer Awareness towards Green Marketing The above graph indicates that only 58% i. only 10% do not consider it.e. ➢ Do you think that green marketing and advertising are good sources of information about green products and services? The above graph indicates that only 69% i. the majority of respondents consider the environmental aspect sometimes. And.e. the majority of respondents consider green marketing and advertising as good sources of information for green products and services. And. 43 .
Consumer Awareness towards Green Marketing ➢ Do you think that Green Marketing activities are good at addressing environmental issues? The above graph indicates that 87% of the respondents feel that Green Marketing activities are good at addressing environmental issues while 13% respondents do not. ➢ Do you think Green Marketing activities results in better product quality? 44 .
➢ Do you think that Green Marketing strengthen company’s image in the mind of consumer? 45 .Consumer Awareness towards Green Marketing The above graph indicates that 70% of the respondents think that Green Marketing activities results in better product quality.
e. ➢ Do you think that companies that focus on environmental concerns persuade consumers to buy products? 46 .Consumer Awareness towards Green Marketing The above graph indicates that majority of the respondents i. 86% think that Green Marketing strengthen company’s image in the mind of consumer.
Consumer Awareness towards Green Marketing The above graph indicates that the respondents the companies initiative towards environment do influence the consumers to buy product. 63% of respondents agree to it. ➢ Are you aware of the eco-labeling initiatives of the government? 47 .
metal. 69% of the respondents are not aware of the eco-labeling initiatives of the government. ➢ They should steer their product and packaging designs to use less material. ➢ They should develop new products ➢ They should redesign existing products and service. If businesses do not become more efficient in using these resources it will have a huge impact on the bottom line. 48 . and even fresh water will become scarcer and more expensive. ➢ They should realize that pollution prevention can be a cost saving activity. Move towards paperless office. Water harvesting.e. ➢ Socially responsible investing in environment driven projects. 8. bio-fuels and hydra power. wind. ➢ Educate masses of the environment issues because they are going to be the bulk consumers. Thus they should: Invest in research and create clean and environment friendly products. ➢ ➢ ➢ ➢ ➢ The corporations must rethink: ➢ Their raw material and procurement strategies. Clean energy sources such as solar. Investing in Green Products thus changes from ‘beyond doing good’ to ultimately ‘good business sense’. ➢ Plant more trees. RECOMMENDATIONS Finite resources such as oil. Recycle at every level.Consumer Awareness towards Green Marketing The above graph indicates that majority of the respondents i.
consumers are not overly committed to improving their environment and may be looking to lay too much responsibility on industry and government. Conclusion As the demand for green products undoubtedly exists. growing consumer preference for eco-friendly companies. are encouraging industries big and small to clean up. Consumer education results in their empowerment. Though it’s the responsibility of the firm to produce products. Consumers are not too much concerned about the environment but as they have become more sophisticated. Think clean. Stricter environmental regulations across the world. Result of a survey conducted showed that.Consumer Awareness towards Green Marketing 9. or even governmental intervention. 49 . Green Marketing provides an opportunity to the companies to increase their market-share by introducing eco friendly products. Ultimately green marketing requires that consumers ‘Think Green. modified individual lifestyles. which are having minimum impact on the environment. possibly through higher priced goods. Think Eco-friendly’ i. they want a cleaner environment and are willing to "pay" for it. Until this occurs it will be difficult for firms alone to lead the green marketing revolution. Empowered consumers choose environmentally preferable products when all else is equal. but ultimately it’s the consumer who is having responsibility to use eco friendly products.e. they require clear information about how choosing one product over another will benefit the environment. and the inherent cost advantages in lowering toxic waste.
www.Consumer Awareness towards Green Marketing 10.com www.org 50 . Vol. New Delhi. Armstrong.greenmarketingcorner.ecomall. 5. Richa Agrawal. BIBLIOGRAPHY Kotler Philips & G.greenpeace. Prentice Hall. Green Marketing: An Emerging Trend (PJMR. Principles of marketing.com www.April 2000) Excerpts from the survey report conducted by BT-TERI.
ANNEXURE Questionnaire Consumer Awareness towards Green Marketing Name: Age: Gender: Are you aware of the term “green marketing”? Yes No What do you understand by the term “Green Marketing”? Have you heard of any campaign related to Green Marketing? Yes 51 .Consumer Awareness towards Green Marketing 11.
Consumer Awareness towards Green Marketing No Have you been part of any such campaign? Yes No Do you consider the environmental aspects of the products before buying them? Yes No Sometimes Do you think that green marketing and advertising are good sources of information about green products and services? Yes No Sometimes Do you think that Green Marketing activities are good at addressing environmental issues? Yes No 52 .
Consumer Awareness towards Green Marketing Do you think Green Marketing activities results in better product quality? Yes No Do you think that Green Marketing strengthen company’s image in the mind of consumer? Yes No Do you think that companies that focus on environment al concerns persuade consumers to buy products? Yes No Are you aware of the eco-labeling initiatives of the government? Yes No Thank You 53 .
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