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Green marketing refers to the process of selling products and/or services based on their environmental benefits. Such a product or Service may be environmentally friendly in it or packaged in an environmentally friendly way. The obvious assumption of green marketing is that potential consumers will view a product or service's "greenness" as a benefit and make their buying decisions accordingly. An obvious assumption of green marketing is that consumers will be willing to pay more for green products. While green marketing is growing greatly as increasing numbers of consumers are willing to back their environmental consciousnesses with their dollars, it can be dangerous. The public tends to be sceptical of green claims to begin with and companies can seriously damage their brands and their sales if a green claim is discovered to be false or contradicted by a company's other products or practices. Presenting a product or service as green when it's not is called green washing. To succeed, any green strategy must fulfil 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. Finally, 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.


According to the American Marketing Association, 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.


Human beings have limited resources on the earth, with which they must attempt to provide for the worlds' unlimited wants. There is extensive debate as to whether the earth is a resource at man's disposal. In market societies where there is "freedom of choice", it has generally been accepted that individuals and organizations have the right to attempt to have their wants satisfied. As firms face limited natural resources, they must develop alternative ways of satisfying these unlimited wants. Ultimately green marketing looks at how marketing activities utilize these limited resources, while satisfying cons umers wants, both of individuals and industry, as well as achieving the objectives of organisations. There are several reasons for increased use of Green Marketing. Some possible reasons are as followsOrganizations perceive environmental marketing to be an opportunity that can be used to achieve its objectives. Organizations believe they have a moral obligation to be more socially responsible. Governmental bodies are forcing firms to become more re sponsible towards the environment. Competitors' environmental activities pressure firms to change their environmental marketing activities. Cost factors associated with waste disposal, or reductions in material usage forces firms to modify their behaviour.

y Identify customers¶ environmental needs and develop products to address these needs. y Develop environmentally responsible products to have less impact than competitors. y McDonalds, for example, changed their packaging from polystyrene to paper.

y Most customers will only be prepared to pay a premium if there is a perception of additional product value. y Environmental benefits are usually an added bonus but will often be the deciding factor between products of equal value and quality. y Nilkamal, introduced cheap plastic molded furniture.

y Few interested customers will go out of their way to buy green products merely for the sake of it. y Green products, in most cases, positioned broadly in the market place so they are not just appealing to a small green niche market. y In-store promotions and visually appealing displays or using recycled materials to emphasise the environmental and other benefits

y Includes paid advertising, public relations, sales promotions, direct marketing and on-site promotions. y Green marketers will be able to reinforce environmental credibility by using sustainable marketing and communications tools and practices. y For example, many companies in the fina ncial industry like ICICI Bank are providing electronic statements by email.

Example: McDonald¶s is often blamed for polluting the environment because much of their packaging finishes up as roadside waste. With the intent to cut costs and work on eco-friendly image and practices McDonald¶s tried to reduce the amount of material disposed by its stores. McDonalds asked the supplier to do away with the cartons for napkins. The supplier suggested a better way and came up with dimpling pattern on napkins, which enabled the supplier to pack 25% more napkins in one box and reduction in shipping cost accordingly .

Natural Package for a Natural Product

When creating product materials, markets need to remember that a ³Green´ product is appealing to consumers for its benefits to the environment and for its roots in natural resources. There should be a consistent look for the product package, or materials that appear natural, not glossy or extravagant.³Green´ consumers tend to appreciate consistence in package and product. They will appreciate the usage of recycled paper and other environment friendly materials. That will help manufacturers/suppliers gain customer loyalty and product credibility.

With increased demand for value-based marketing, there is also growing demand of ³Green´ services. Global customers are not only interested in cost cutting through outsourcing but are also looking for energy efficient IT operations. Example: ITC InfoTech is a good example to understand how to package the services ³Green´ ITC InfoTech is a Bangalore based independent Subsidiary of ITC Ltd. At corporate level ITC is working to establish itself as a carbon free company. The company has used recycled material and virtualization tools for optimizing energy usage in its data centres. It is also working on digital infrastructure to connect the rural farmers to the Internet using solar panels for power, so that the Indian farmers can get information on crop research and monitor weather trends. The corporate image of ITC Ltd. is further enhancing the True Green Image.

Benefits of Green Marketing
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.

y Requires a technology, which requires huge investment in R & D y Water treatment technology, which is too costly y Majority of the people are not aware of green products and their uses y Majority of the consumers are not willing to pay a premium for green products


Finite resources such as oil, metal, and even fresh water will become scarcer and more expensive. If businesses do not become more efficient in using these resources it will have a huge impact on the bottom line. Investing in Green Products thus changes from µbeyond doing good¶ to ultimately µgood business sense¶. Thus they should: y Invest in research and create clean and environment friendly products. y Clean energy sources such as solar, wind, bio-fuels and hydral power. y Water harvesting. y Recycle at every level. y Move towards paperless office. y Educate masses of the environment issues y Socially responsible investing in environment driven projects. y Plant more trees.

Firms must bear much of the responsibility for environmental degradation, but it is consumers who demand goods, and thus create environmental problems. So it can¶t be ignored that it is the uncaring consumers who choose to dispose their waste in an inappropriate fashion. It appears that consumers are not overly committed to improving their environment and may be looking to lay too much responsibility on industry and government. Ultimately green marketing requires that consumers want a cleaner environment and are willing to pay for it, possibly through higher priced goods, modified individual lifestyles or even governmental intervention. Until this occurs it will be difficult for firms alone to lead the green marketing revolution. Thus an environmental committed organization may not only produce goods that have reduced their detrimental impact on the environment, they may also be able to pressure their suppliers to behave in a more responsible fashion. Consumers and industrial buyers also have the ability to pressure organizations to integrate the environment into their corporate culture and thus ensure all organizations minimize the detrimental environmental impact of their activities.