GREEN MARKETING

INTRODUCTION
‡ An important research topic since its inception ‡ Workshop on Ecological Marketing(1975)American Marketing Association ‡ Implementation marketing programs directed towards the environmentally conscious market segment (HENION 1976)

GM : DEFINED
ART OF creating an awareness among consumers about carefully planned and developed eco compliance products and services using competitive pricing, promotion and distribution strategies that leads to increased uptake of product and services, increase in ROI and consumer satisfaction

EVOLUTION
‡ Phase I: ECOLOGICAL
Green marketting: Focus on reducing environmental problems and providing remedies.

‡ Phase II: ENVIRONMENTAL
Green marketting: Focus on innovations through clean technology.

‡ Phase III: SUSTAINABLE
Green marketing: Focus on preservation of environment through Sustainable development

GREENWASHING
‡ It¶s Whitewashing, But with a Green Brush ‡ Excessive spending of money or time on advertising being green operating ‡ Portrayed by changing the name or label of a product to evoke the natural environment or nature

FEATURES
‡ Displaying Social Accountability ‡ Talking about Environmental Impact ‡ Making Greener Options Easier-tounderstand

Indian Companies into GM
‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ STATE BANK OF INDIA SUZLON ENERGY ITC LIMITED NEROLAC WIPRO ONGC INDIAN OIL TATA GROUP HERO HONDA INDUSLAND BANK IDEA CELLULAR HCL

STATE BANK OF INDIA
‡Entered into green service known as ³Green Channel Counter´ ‡Use of eco and power friendly equipment in its 10,000 new ATMs, saves power costs and earned carbon credits. ‡Services like paper less banking, no deposit slip, no withdrawal form, no checks, no money transactions ‡Turns to wind energy to reduce emissions, is a part of green banking program dedicated to: reduction of its carbon footprint and promotion of energy efficient processes, especially among the bank's clients.

‡Setting up an eco-friendly showroom using natural building material for its flooring and energy efficient lights. ‡A biogas-based power plant at Taj Green Cove in Kovalam, which uses the waste generated at the hotel to meet its cooking requirements ‡Indica EV, an electric car that will run on polymer lithium ion batteries.

INDIAN OIL

‡Indian Oil is fully geared to meet the target of reaching EURO-III compliant fuels to all parts of the country by the year 2010. ‡Invested about Rs. 7,000 crore so far in green fuel projects ‡Diesel quality improvement facilities in place at all seven Indian Oil refineries. ‡The Centre has been certified under ISO-14000:1996 for environment management systems.

ITC LIMITED
‡Introduction of µozone-treated elemental chlorine free¶ bleaching technology for the first time in India.

‡The result is an entire new range of top green products and solutions.

‡The environmentally friendly multipurpose paper that is less polluting than its traditional counterpart.

WIPRO

‡Wipro climbed to the top five brand league in Greenpeace's 'Guide to Greener Electronics' ranking. ‡Despite the global financial crisis, Wipro held fast to its commitment towards energy efficiency. ‡Lauded for launching energy star compliant products in the market.

HCL

‡Icon of Indian green initiatives -³go green´ steps taken in solving the problem of toxics and e-waste in the electronics industry. ‡HCL is committed to phasing out the hazardous vinyl plastic and Brominated Flame Retardants from its products ‡Called for a Restriction on Hazardous Substances (RoHS) legislation in India.

IDEA Cellular
‡One of the best Indian companies, IDEA, paints India green with its national µUse Mobile, Save Paper¶ campaign. ‡The company had organized Green Pledge campaigns at Indian cities where thousands came forward and pledged to save paper and trees. ‡IDEA has also set up bus shelters with potted plants and tendril climbers to convey the green message.

Green marketing, also alternatively known as environmental marketing and sustainable marketing, refers to an organization¶s efforts at designing, promoting, pricing and distributing products that will not harm the environment

Goals of Green Marketing
‡ Eliminate the concept of waste. ‡ Reinvent the concept of product. ‡ Make prices reflect actual and environmental costs. ‡ Bringing out product modifications. ‡ Changing in production processes. ‡ Packaging changes. ‡ Modifying advertising.

Companies that develop new and improved products and services with environment inputs in mind give themselves access to new markets increase their profit sustainability and enjoy a competitive advantage over the companies which are not concerned for the environment.

Green Marketing Mix
It talks in terms of not just marketing but operating ³green´ Product Price Place Promotion

‡ ‡ ‡ ‡

The four P¶s can be transformed into 4 C¶s taking the point of view of the customer: ‡ ‡ ‡ ‡ Customer Solutions Customer Cost Convenience Communication

Green Marketing Process
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
The S¶s of Green Success
· Satisfaction ± of stakeholder needs · Safety ± of products and processes · Social Acceptability ± of the company · Sustainability ± of its activities

WHY GREEN MARKETING?
‡ WHO estimates that 24 per cent of global disease burden and 23 per cent of all deaths can be attributed to environmental factors. ‡ In developing countries, an estimated 42 per cent of acute lower respiratory infections are caused by environmental factors. ‡ India has been ranked as seventh most environmentally hazardous country in the world ‡ growing interest among the consumers all over the world regarding protection of environment

GOLDEN RULES OF GREEN MARKETING
‡ ‡ ‡ ‡ ‡ ‡ Know you're Customer Educating your customers Being Genuine & Transparent Reassure the Buyer Consider Your Pricing Giving your customers an opportunity to participate ‡ Thus leading brands should recognize that consumer expectations have changed

Reasons for this wide adoption
‡ ‡ ‡ ‡ ‡ Opportunities Government Pressure Competitive Pressure Social Responsibility Cost of Profit Issues

GREEN CODE
‡ Generalize with care. ‡ Remember ‡ Explore ‡ Ensure ‡ Neutrality is important.

CHALLENGES FACED
‡ Need for Standardization ‡ New Concept ‡ Patience and Perseverance ‡ Avoiding Green Myopia

Benefits of Green Marketing
Today¶s consumers are becoming more and more conscious about the environment and are also becoming socially responsible. Therefore, more companies are responsible to consumer¶s aspirations for environmentally less damaging or neutral products. Many companies want to have an early mover advantage as they have to eventually move towards becoming green.

Some of the Advantages of Green Marketing are:
‡ It ensures sustained long term growth along with profitability. ‡ It saves money in the long run, though initially the cost is more. ‡ It helps the companies market their products and services keeping the environment aspects in mind. ‡ It helps in accessing the new markets and enjoying the competitive advantage. ‡ Most of the employees also feel proud and responsible to be working for an environmentally responsible company.

Disadvantages of Green Marketing
Green marketing involves companies positioning their products as environmentally friendly or energy efficient. Many different brands in a wide range of industries use green marketing as a way of standing out from among a crowded field of competitors, but green marketing can also cause problems for companies that rely on it at the expense of other forms of promotion.

1. Certification
To market your products as "green" you may need to go through an expensive and lengthy process of getting environmental certifications. Meeting these standards may be difficult, especially while keeping prices low. However, without an official certification, customers have no way of gauging the truth behind your "green" claims.

2. Increased Scrutiny
If your company's marketing makes claims about its green products or an overall commitment to environmental sensitivity, it may open you up to enhanced scrutiny from consumers and environmental protection groups Making environmental claims might only be wise once you've instituted a green policy that reaches every level of production and operations.

3. Individuality
Green marketing can make your company stand out among others who have products with similar quality or prices. Green marketing promotes a more thoughtful, responsible corporate image. This holds true even for customers who don't make environmental concerns a major priority. It also gives your company's marketing materials a wider range of talking points besides conventional claims about low prices, durability and style, all of which customers have heard many times before.

4. Customer Reactions
Green marketing can result in different types of customer reactions, which can serve as benefits or drawbacks to such a marketing strategy. Environmentally conscious consumers may flock to your brand and embrace your products. You may also be able to use green marketing to gain an increase in neutral consumers who value other features more but see the environmental benefits of your products as a slight advantage over similar competing products.

Green marketing cases
Phillips's "Marathon" CFL lightbulb
Philips Lighting's first shot at marketing a standalone compact fluorescent light (CFL) bulb was Earth Light, at $15 each versus 75 cents for incandescent bulbs. The product had difficulty climbing out of its deep green niche. The company re-launched the product as "Marathon," underscoring its new "super long life" positioning and promise of saving $26 in energy costs over its five-year lifetime. Finally, with the U.S. EPA's Energy Star label to add credibility as well as new sensitivity to rising utility costs and electricity shortages, sales climbed 12 percent in an otherwise flat market.

Introduction of CNG in Delhi
New Delhi, capital of India, was being polluted at a very fast pace until Supreme Court of India forced a change to alternative fuels. In 2002, a directive was issued to completely adopt CNG in all public transport systems to curb pollution.

Products & Services
Now companies are offering more eco-friendly alternatives for their customers. Recycled products for example, are one of the most popular alternatives that can benefit the environment. These benefits include sustainable forestry, clean air, energy efficiency, water conservation, and a healthy office. One example, is the E-commerce business and office supply company Shoplet which offers a web tool that allows you to replace similar items in your shopping cart with greener products.

Some Other Cases
1. McDonald's restaurant's napkins, bags are made of recycled paper. 2. Coca-Cola pumped syrup directly from tank instead of plastic which saved 68 million pound/year. 3. Badarpur Thermal Power station of NTPC in Delhi is devising ways to utilize coal-ash that has been a major source of air and water pollution. 4. Barauni refinery of IOC is taken steps for restricting air and water pollutants.

GREEN MARKETING MYOPIA
By Theodore Levitt (1960) ‡ He laid emphasis on µmanaging products¶ rather than µmeeting customer needs¶. ‡ Sometimes, this can also happen for companies practicing ³green marketing", if they focus on µgreenness' over the broad expectations and needs of the consumers or other stake holders including suppliers, distributors, regulators and various activities.

3 WAYS TO AVOID GREEN MARKETING MYOPIA«

Consumer Value Positioning
‡Design environmental products to perform as well as (or better than) alternatives. ‡Promote and deliver the consumer-desired value of environmental products and target relevant consumer market segments (such as market health benefits among healthconscious consumers).

CALIBRATION OF CONSUMER KNOWLEDGE
‡Educate consumers with marketing messages that connect environmental product attributes with desired consumer value Example:³pesticide-free produce is healthier´; ³energy-efficiency saves money´; or ³solar power is convenient´). ‡Frame environmental product ³solutions´ for consumer needs attributes as

CREDIBILITY OF PRODUCT CLAIMS
‡Encourage consumer evangelism via consumers¶ social and Internet communication networks with compelling, interesting, and/or entertaining information about environmental products

FUTURE OF GREEN MARKETING
Historically, green marketing misunderstood concept. has been a

Business scholars have viewed it as a ³fringe´ topic, given that environmentalism's acceptance of limits and conservation does not mesh well with marketing's traditional axioms of ³give customers what they want´ and ³sell as much as you can.´

Rising energy prices, growing pollution and resource consumption in Asia, and political pressures to address climate change are driving innovation toward healthier, moreefficient, high-performance products. In short, all marketing will incorporate elements of green marketing.

Winning Mantra
Firstly, Companies need to believe that ³GREEN MARKETING´ can work and make diligent efforts to make necessary efforts to make necessary product improvements which deliver performance, are marketable and profitable.

Companies should not only develop green products but must explain about the same more effectively to the consumers. GREEN MARKETING has to be considered as a visionary goal to be achieved through continuous improvements and efforts. It must be included in the company¶s overall corporate strategy.

³Green marketing is still in its infancy and a lot of research is to be done on green marketing to fully explore its potential´.

CONCLUSION
Green marketing should not neglect the economic aspect of marketing. Marketers need to understand the implications of green marketing. If customers are not concerned about environmental issues or will not pay a premium for products that are more eco-responsible, think again. There must be an opportunity to enhance the product's performance and strengthen the customer's loyalty and command a higher price.

THANK YOU

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