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Green marketing strategies, sustainable development, benefits and challenges/
constraints

Teo Yee Voon 1

HELP College of Art and Technology
Center for Southern New Hampshire University (SNHU) Programs
tyv_yvonne@hotmail.com

Rashad Yazdanifard 2
HELP College of Art and Technology
Center for Southern New Hamphire University (SNHU) Programs
rashadyazdanifard@yahoo.com
Abstract:

This paper focused on green marketing intervention strategies and sustainable development with an emphasis on
green marketing intervention strategies to environmental problems facing the world today. The review indicates
that individuals and organizations can benefit from green marketing strategies and at the same time protect the
environment to achieve sustainable development. The weaknesses and the future of green marketing as a
discipline and future directions for researchers are also reviewed.

Key Words: Green Marketing, Ecological Marketing, Environmental Marketing, Sustainable Marketing and
Sustainable Development.

1. Introduction

As environmental issues continue to affect human activities, society is now regards them with much concern.
Most firms have started using sustainable development framework which is known as green marketing and most
of the international organizations have acknowledged green products which are environmentally friendly.
Marketing managers can use green marketing to earn profits. In addition, green marketing is able to preserve the
environment while satisfying customers‟ needs. Green marketing covers a wide range of business activities and
it is similar to marketing mix. This paper is to review marketing responses to environmental concerns facing the
world today through green marketing intervention strategies to achieve sustainable development.

2. Green Marketing

Green marketing is a plan that serves to satisfy customers‟ needs and to minimize the impact of marketing on
the natural environment (Polonsky & Jay, 1994). One definition for green marketing is that green marketing
serves to fulfill individual or organization goals while preserving the condition of the environment (Mintu,
Lozada & Polonsky, 1993). The American Marketing Association (AMA) defines green marketing as the
process of producing; selling and providing services that are environmental friendly (Yazdanifard & Mercy,
2011). The task of defining green marketing has not been simple because a fixed definition for green marketing
has yet to exist (Kinoti, 2011). Green marketing covers a wide range of business activities (Kinoti, 2011).These
activities vary from modifying a product to become environmentally friendly, plastic packaging changed to
sustainable packaging and modifying advertisements that support environmentally friendly products (Ghosh,
2010). Murthy (2011) stated that green marketing is how the firms use the limited resources to produce green
products and achieved the firms‟ goal (Kinoti, 2011).Overall, the purpose of green marketing is to minimize
environmental harm caused by corporation marketing(Kinoti, 2011).Most of the people believe that green
marketing refers solely to the promotion or advertising of products with environmental characteristics (Kinoti,
2011). Terms like Phosphate Free, Recyclable, Refillable, Ozone friendly and environmental friendly are some
of the things consumers most often associate with green marketing (Kinoti, 2011). In general green marketing is
a broader concept, one that can be applied to consumer goods and industrial goods and services (Kinoti, 2011).

3. Sustainable Development

Sustainable development has been defined in many ways, but the most frequently quoted definition is from Our
Common Future, also known as the Brundtland Report: "Sustainable development is development that meets the
needs of the present without compromising the ability of future generations to meet their own needs (Kinoti,
2011). It contains within it two key concepts: the concept of needs, in particular the essential needs of the
world's poor, to which overriding priority should be given; and the idea of limitations imposed by the state of
technology and social organization on the environment's ability to meet present and future needs (Kinoti,
2011). ." All definitions of sustainable development require that we see the world as a system—a system that
connects space; and a system that connects time (Kinoti, 2011).
4. Components of Sustainable Development

The components of sustainable development are two-folds according to Pearce et al (1994) namely; The natural
constant capital stock and man-made built in constant capital stock (Kinoti, 2011). Natural capital stock is the
stock of all environmental and natural resource assets, from oil in the ground to the quality of social and ground
water; and from the stock of fish in the oceans to the capacity of the globe to recycle and absorb carbon (Kinoti,
2011). On the other hand man-made built in capital stock comprises the stock of man-made capital machines
and infrastructure such as housing and roads together with the stock of knowledge and skills, or human capital
(Kinoti, 2011). The term constant is construed to mean constant or increasing (Pearce et al, 1994).

5. Green Marketing and Sustainable Development

Majority of people believe that green marketing refers solely to the promotion or advertising of products with
environmental characteristics (Kinoti, 2011). Terms like Phosphate Free, Recyclable, Refillable, and Ozone
friendly and environmental friendly are some of the things consumers most often associate with green marketing
(Kinoti, 2011). While these terms are green marketing claims, in general green marketing is a broader concept,
one that can be applied to consumer goods and industrial goods and services (Polonsky, 1994). The
misconception of green marketing by majority of people makes its definition very critical, yet defining green
marketing is not a simple task. Indeed the terminologies and definitions used in this area are varied (Kinoti,
2011). The terminologies include; green marketing, Environmental marketing and ecological marketing
(Polonsky, 1994). Therefore, there is no universally accepted terminology and definition of green marketing up
to today (Kinoti, 2011). For the purpose of this paper the term green marketing will be used(Kinoti, 2011).
According to the American Marketing Association green or ecological marketing refers to the “the study of the
positive and negative aspects of marketing activities on pollution, energy depletion and non-energy resource
depletion” . According to Herbig et al (1993) green marketing refers “to products and packages that have one or
more of the following characteristics; they are less toxic; are more durable; contain reusable materials and/or are
made of recyclable materials”.

These two definitions are narrow in scope as they focus on a narrow range of environmental issues(Kinoti,
2011). Green marketing need to be broadly defined. Polonsky (1994) defines green marketing as “consisting of
all activities designed to generate and facilitate any exchanges intended to satisfy human needs, such that the
satisfaction of these needs and wants occurs, with minimal detrimental impact on the natural environment”
(Kinoti, 2011). This definition is much broader and incorporates much of the traditional components of the
conventional marketing definition and also includes the protection of natural environment(Kinoti, 2011). For the
purpose of this paper Polonsky‟s definition will be used(Kinoti, 2011).

Sustainable development requires “sustainable marketing” that is marketing efforts that are not only
competitively sustainable but are also ecologically sustainable (Polonsky et al, 1997). Indeed, marketing‟s role
in the development process is well recognized . Much of the economic activity is triggered by the marketing
process that offers and stimulates consumption to satisfy human needs and wants. However, marketing‟s critical
role in development will only be appreciated when, through sustainable marketing, it meets the needs of the
present without compromising the ability of future generations to meet their own needs (Polonsky et al, 1997).

In response to the challenge of advancing simultaneously in economic development and environmental

protection as the sustainable development demand companies and academicians have developed and/or adopted
green marketing strategies and other corporate strategies(Kinoti, 2011). Among the key strategies are; green
product strategies, green logistic strategies, green pricing strategies, green promotion strategies, changing
consumers from consumption culture to ecologically concerned consumers, adoption of eco-marketing
orientation as a business philosophy, Government intervention, lifecycle inventory analysis and teaming up for
success(Kinoti, 2011).

Green marketing focus on undertaking all marketing activities while protecting the environment. (Kinoti, 2011).
On the other hand sustainable development demands that the future generations inherit the natural environment
in the same state or better as inherited by the previous generations(Kinoti, 2011). This calls for the protection
and improvement of the environment(Kinoti, 2011). Therefore, sustainable development is a dependent variable
of green marketing and other factors(Kinoti, 2011).

According to the framework organization through conventional finance and accounting; production processes
and technology; general management practices; marketing; human resources management; research and
Development; and other variables contribute to environmental concerns facing the world today(Kinoti, 2011). In
addition macro-environmental factors; Economic, socio-cultural, Technological, Demographic, Political-legal
and individuals also contribute to environmental concerns today(Kinoti, 2011). The model further proposes that
marketing through green marketing intervention strategies can respond to the environmental concerns
challenge(Kinoti, 2011). Other business functional areas can also intervene through various strategies to provide
solutions to the environmental problems(Kinoti, 2011). These intervention strategies will result in improved
organizational performance and better physical environment, which in turn will result in sustainable
development. Table 1 shows the ingredients of environmental concerns today, green marketing intervention
strategies, improved organizational performance, better physical environment, and sustainable
development(Kinoti, 2011).

Firms use green marketing in their sustainable packaging and refuse to use harmful products(Kinoti, 2011).
Coca- Cola Enterprises produces lighter packaging that can save costs, materials and resources. Coca-Cola
Enterprises cut the weight of PET plastic bottle which is 20-ounces by 20 percent; 12-ounce aluminum can by
30 percent and 8-ounce glass bottles by more than 50 percent ("Sustainable packaging", 2011). Besides Coca-
Cola, McDonald‟s and Starbucks are also using sustainable packaging. Firms can donate used computers to
schools or colleges and green marketing can control the wastage level of the firm. Firms also contribute to the
community by providing funds for recycling projects. For example, Coca-Cola enterprises recycled 36 percent
of bottles and cans that were sent to the market ("Sustainable packaging", 2011). Furthermore, international
firms restyle products to decrease material content and energy consumption. For examples, McDonald‟s branch
in Germany formulated new lighting systems such as low-consumption fluorescent lighting for its restaurants
and in Mexico, solar water heating is the main research currently being conducted to reduce the usage of
liquefied petroleum (Mcdonald‟s corporation, 2009). In France, they projected interactive software based on
energy management system, EcoProgress, as it helps monitor and reduce the energy consumption in restaurants
(Mcdonald‟s corporation 2009).

International firms use green marketing to reduce the level of pollution in earth(Kinoti, 2011). For instance,
Toyota produced hybrid cars to protect the environment by reducing air pollution; thus, reducing the effects of
global warming (Wong, 2008). McDonald‟s in UK recycled 100% of their used cooking oil by converting the
oil into biodiesel that fueled delivery trucks in the market by the end of 2008 (Mcdonald‟s corporation, 2009).
Starbucks corporation recycle in stores, achieving energy savings, requiring contractors to use less-toxic
materials in the stores and providing environmental education for their staffs ( „„Responsibility‟‟, n. d. )Lastly,
Walmart in Central America has reduced 542 tons of carbon dioxide emission and saves 50 percent of the
energy consumption in 2010 .

6. Importance of going green

Earth is constantly abused by inconsiderate corporations who wish to gain self profits as its natural resources
slowly depletes day by day(Kinoti, 2011). The firms have to develop alternative manner to satisfy the need of
the customers by using green marketing(Kinoti, 2011). The importance of going green is to save the earth by
reducing the hazardous wastage, sewage, deforestation and air pollution (Kinoti, 2011). This will also preserve
and conserve the limited sources for our future generation(Kinoti, 2011). . Most of the international firms
started to realize the importance of going green and started to develop green marketing. Example,Kumarstated
that „„Tata Steel is the largest steel industrial in India, is using nanotechnology-based products to help reduce
emissions and boost efficiency‟‟ (Kumar, 2011).

7. Green marketing mix based strategies

Green marketing mix strategies include developing green-based products, green logistics, green promotion,
green pricing and green consumption(Polonsky et al, 1997; Ottman, 1997; Willum, 1998). The general strategies
are not limited to marketing discipline but may be used by marketing as well as other functional areas of
organization in dealing with problem of sustainability(Polonsky et al, 1997; Ottman, 1997; Willum, 1998). They
include; adoption of eco-marketing orientation as a business philosophy, government intervention, undertaking
life-cycle analysis and teaming up for success (Polonsky et al, 1997; Ottman, 1997; Willum, 1998).

In green based product strategies, the activities associated with sustainable development may be construed by
business either as a potential threat or as an opportunity(Polonsky et al, 1997; Ottman, 1997; Willum, 1998).
Green products represent a substantial product opportunity, the opening of a provocative strategic window
(Polonsky et al, 1997). Green products are typically durable, non-toxic, made from recycled materials, or
minimally packaged (Ottman, 1997). Green based product strategies comprise any or a combination of recycling,
reduction of packaging materials, reconsumption, dematerializing the products; using sustainable source of raw
materials, making more durable products; designing products that are repairable, making products that are safe
for disposal, making products and packagings that are compostable, and making products that are safer or more
pleasant to use(Ottman, 1997).

For green logistic strategies, the most common form of greening logistics is reverse channel system. Reverse
channel systems deal with the issue of post-consumer recycling. The term recycle mean „…to extract and reuse
useful substances found in waste‟while the traditional approach to product disposal can be described as linear in
which waste materials are indiscriminately dumped .The definition of recycle clearly demonstrates that the goal
is to reverse this result by achieving a circular flow that effects a reintegration of materials with markets (Fuller
et al, 1997).

The reverse channel systems possess the following characteristics. Firstly, the consumer becomes the seller and
manufacturer the buyer. Secondly, they emphasize on the function of sorting and accumulation . Thirdly, the
recyclable materials can flow backwards through reverse channels to any of three generalized industrial markets:
(1) original manufacturer, (2) firms in the raw materials producing industry; or (3) other industries that can use
recyclables as virgin material substitutes , and finally the consumers (sellers) tend to play a more passive role
rather than proactive role of the typical seller in conventional channel. Figure 4 depicts reverse flow of
recyclable materials from consumer/households to industrial user market through various types of reverse
channel intermediaries.

The modified reverse channel system proposes that consumer waste sources are individual consumers and
households. The remaining recyclable materials after individual consumers/household own consumption moves
through Jua kali* artisans or micro enterprises, manufacturer own system, local authorities, agents/wholesalers
and street “children” to industrial user markets: original manufacturers, firm in raw materials industries and
micro enterprises.

Other components of green logistics strategies include reduction of packaging material to directly or indirectly
lower distribution costs, use of integrated transportation systems and the Internet. However, more emphasis has
been given to reverse channel systems (Polonsky, 2001).

In green pricing strategies, there are many consumers assume that green products are often priced higher than
conventional products (Polonsky, 2001). While their assumption may be true Peattie (1999) argues that these
products are not unusually expensive, but the conventional products are unrealistically cheap because they
exclude socio-environmental costs of production, product use and disposal(Peattie, 1999;). He suggests that one
way to deal with the high price controversy is to ask the consumer “whether they want to continue buying
inexpensive products that damage the environment?” The implication of the above is that consumers need more
information on benefits of green products in order to judge their value more objectively(Peattie, 1999).

Green promotion strategies is an activity of promoting products as having characteristics that do not harm the
natural environment (Polonsky et al, 1997). According to Benerjee et al (1995) it should meet one or more of the
following criteria: -

i) Explicitly or implicitly addresses the relation between a product/service and the bio-physical
environment.
ii) Promotes a green lifestyle with or without highlighting a product/service.
iii) Presents a corporate image of environmental responsibility.

According to Scholossberg (1993) as quoted by Polonsky (1997), green promotion helps consumers to
overcome the “greatest environmental hazard”, that is, the lack of environmental information. Scholossberg
sentiments are shared by Ottman (1997) and Zint and Frederick (2001) who argue that green companies should
not assume that consumers are knowledgeable about environmental issues or actions they engage in (; Polonsky,
2001).

To lessen the gap on environmental information through promotion (Ottman, 1997) has suggested several green
promotion strategies. Thus the green companies should;

i) Educate consumers on the environmental problems that a green product solves

 ii) Empower consumers with solutions by demonstrating to consumers how environmentally sound
products and services can help consumers protect health, preserve the environment for future
generations.
iii) Provide performance reassurance of green-based products, as many consumers perceive them to be
inferior to conventional products.
iv) Consider a suitable mix of media. For instance environmental consumers are more receptive to
messages conveyed through direct marketing, community programs, public relations, and
packaging and Appeal to consumer self-interest by bringing out the benefits of green products to
both actual consumers and potential consumers.

To change of consumer behavior from consumption culture to ecologically concerned consumers or encourage
green consumption is the task of the marketer to redirect the needs of the consumer towards consumption that is
ecologically least harmful (Ottman, 1997). This redirection can be achieved through market research, and
promotion. According to Our Common Future, a publication of World Commission for Environment and
Development (WCED) (1987), sustainable development requires the promotion of values that encourage
consumption standards that are within the bounds of the ecological environment(Ottman, 1997). The fact that
marketing during the past few decades has been so successful in increasing societal consumption and in meeting
human needs, make us confident that it will also be successful in redirecting consumption (Polonsky et al, 1997).

8. Benefits of using green marketing and general strategies

Environmental concerns present both challenges and opportunities(Ottman, 1997). Enlightened Chief Executive
Officers have taken advantage of opportunities by using green marketing strategies which has resulted in various
benefits (Ottman, 1997):

i) Profitability: Green based products create less waste, use fewer raw materials, and saves energy
ii) Competitive advantage: Companies that are first to put their environmental innovation on the
shelve enjoys competitive advantage
iii) Increased market share: Brand loyalty is near all time low. In fact the percentage of Americans
who feel that some brands are worth paying more for is declining. According to a poll conducted
by the Porter Novelli consumers viewed company‟s record on the environment as an important
determinant of their purchase decision
iv) Better products: Green based products are higher in quality in terms of energy saving, performance,
convenience, safety, etc
v) Personal Rewards: Green products offer consumers with the benefits of healthier, more fulfilled
lives and power to make the world a better place
vi) Better Physical Environment: Well co-ordinated use of all green marketing strategies will result in
better physical environment in terms of reduced air and water pollution, waste energy depletion,
global warming, deforestation, depletion of natural resources, and rate of landfills. Fig.5
summaries the benefits discussed above.
vii) Sustainable development: meeting the needs of the present without compromising the ability of
future generations to meet their needs. (Ottman, 1997)

9. Constraints/Challenges of Green marketing intervention strategies and general strategies

Despite the numerous benefits of green marketing it is not without constraints/challenges. The weaknesses
include(Ottman ,1997):

i) In general all the green marketing strategies are expensive and difficult to implement in the short
run.
ii) The environmental benefits are intangible, indirect or insignificant to consumers. For example,
consumers cannot see the emissions being spared when they use energy saving appliance.
iii) Environmental benefits are difficult to measure or quantify.
iv) Some strategies (e.g. promotion) are subject to manipulation. For example some marketers use
false environmental claims in order to gain competitive advantage.
v) The success of green marketing depends on several stakeholders who must work as a team. These
include; general public, employees, retailers, government, environmental groups, and suppliers.
Any group can derail the exercise.
vi) The costs saved through recycling are doubtable.
10. Problems with going green

Problems will always arise in firms that apply green marketing(Polonsky & Jay, 1994). The firm must ensure
that they do not use green marketing to mislead the consumers or industry(Polonsky & Jay, 1994). The firm has
to follow the laws and regulations or conform to the standards set by FTC‟s guidelines such as providing clear
statements on the environmental advantages; explaining environmental feature; explaining how the
environmental benefits are reached; ensuring comparative advantages are justified; ensuring negative elements
are considered and using purposeful term and pictures (Polonsky & Jay, 1994)

Firms which have limited scientific knowledge are required to make the correct decision for environmental
benefits(Polonsky & Jay, 1994). For example, firms that produce refrigerators and air conditioners have
replaced the harmful CFCs (chlorofluorocarbon) with HFCs (hydro-fluocarbon). Scientists have discovered that
HFCs is also a greenhouse gas. Some firms started to change to DME (dimethyl ether), but this will also damage
the ozone layer (Debets, 1989 as cited in Polonsky & Jay, 1994)

Lack of knowledge regarding the customers‟ needs will also affect the sales of the firm(Polonsky & Jay, 1994).
Most consumers think that green label products will not work as well as conventional products. Furthermore,
consumers are not fully aware of the environmental problems(Polonsky & Jay, 1994). They rely on the
government, international organizations and industry to solve the problems. In addition, most of the customers
are not willing to pay a higher price for the green label products. Therefore, firms must provide an
understanding to the consumers on the purposes and benefits of green products(Polonsky & Jay, 1994).

While following competitors‟ strategy in going green, it may lead the firm to make the same mistakes as their
leader had(Polonsky & Jay, 1994). Example, Mobil Corporation presented the biodegradable plastic garbage
bags. The truth is when it was disposed, biodegradation did not occur. This caused several US states to sue
Mobil because of the misleading advertising (Polonsky & Jay, 1994). Lastly, green marketing concept used by
firms might not be accepted by most of the consumers(Polonsky & Jay, 1994).

11. Discussion

The major purpose of this paper was to determine the benefits of green marketing on the environment and firms
as well as the procedures that firms took to implement green marketing. This finding is important because the
earth‟s resources are slowly depleting and earth is getting more and more polluted. Green marketing is a strategy
which benefits the companies and the environment; it is a win-win strategy(Polonsky & Jay, 1994). The
company can reduce costs and imprint a positive image on the consumers. A firm‟s reputation is very important
as having a good reputation has been proving to be beneficial to the firm. Green marketing not only benefits the
firm but also acts as a very important strategy in preserving our environment(Polonsky & Jay, 1994).

Nowadays, climate change is worsening because manufacturers continually release carbon dramatically that
causes greenhouse effect. The firm now realized the problems and started using degradable packaging, reducing
carbon emission and also reducing energy consumption(Polonsky & Jay, 1994).

Therefore, a vast number of firms, especially international firms started using green marketing as their strategy
to conquer the market and to save the environment. There are several strategies that can be used to apply green
marketing. The firms use marketing mix concept in green marketing, this allows the firms to handle the 4Ps
properly. The firms have to know the customers‟ needs and wants, so the firms can develop a proper product for
the customers. Moreover, the price of the products is a very crucial thing (Polonsky & Jay, 1994). The price has
to be affordable to this majority of the consumers. Lastly, the places that distribute green products have to be
convenient to the consumers(Polonsky & Jay, 1994).

However, not all of the firms are willing to apply green marketing because the firms might face problems when
implementing green marketing (Kinoti, 2011). . For instance, the research and development department in the
firms lack scientific knowledge or they come out with a green product which is too costly. This may not help,
but rather burden the firm(Polonsky & Jay, 1994). Therefore, the firms have to implement green marketing
appropriately. If a firm can apply green marketing appropriately, that firm can conquer the market. Lastly,
further researches are necessary to find out the customers‟ perception on green products, the customers‟
preferences and the stakeholders perception on green marketing(Ottman, 1997).
12. Conclusion

This paper has suggested that marketing like other functional areas of a business contribute to environmental
concerns facing the world today. Therefore, it has a role to play in looking for solutions to these environmental
problems. The paper further suggests that marketing through green marketing and specifically green marketing
strategies is addressing the challenge with positive outcomes of improved organizational performance, better
physical environment which will lead to sustainable development.

To ensure that development is sustainable over the long-term, marketers need to confront and implement
solutions to rising environmental challenges. The common theme throughout the strategy of sustainable
development is the need to integrate economic and ecological considerations in decision making by making
policies that conserve the quality of agricultural development and environmental protection. This is what the end
product of green marketing is, environmental protection for the present and the future generation. The
development of energy- efficient operations, better pollution controls, recyclable and biodegradable packaging,
ecologically safe products are all part of green marketing, leading to sustainable development.

In this way, green marketing is a means towards the broader goal of sustainable development. It implies a
medium to long-term policy strategy that understands and addresses potential poverty and resource scarcity gaps;
provides opportunities for fostering alternate economic, production and livelihood models; and intends to
protect development and growth prospects, as well as the impacts of environmental degradation. The key to
successful green marketing is credibility. Never overstate environmental claims or establish unrealistic
expectations, and communicate simply and through sources that people trust. Seeing the recent trends in green
marketing and getting its importance worldwide, it can be claimed that if sustainable development is the need of
time then green marketing can fulfill this need and can become means for sustainable development as green
marketing in corporate people, profit and planet all together.

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