GREEN MARKETING

Definition 

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 itself or
produced in an environmentally friendly way, such as:

 Being manufactured in a sustainable fashion

 Not containing toxic materials or ozone-depleting substances
 Able to be recycled and/or is produced from recycled materials
 Being made from renewable materials (such as bamboo, etc.)
 Not making use of excessive packaging
 Being designed to be repairable and not "throwaway"

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.

GREEN PRODUCTS AND ITS CHARACTERISTICS

The products those are manufactured through green technology and that caused no
environmental hazards are called green products. Promotion of green technology and green
products is necessary for conservation of natural resources and sustainable development. We can
define green products by following measures:

• Products those are originally grown,

• Products those are recyclable, reusable and biodegradable,

• Products with natural ingredients,

• Products containing recycled contents, non-toxic chemical,

• Products contents under approved chemical,

• Products that do not harm or pollute the environment,

• Products that will not be tested on animals,

• Products that have eco-friendly packaging i.e. reusable, refillable containers etc.

GREEN MARKETING MIX

Just as we have 4Ps in marketing like the Product, Price, Place and Promotion, we have 4Ps in
green marketing too, but they are a bit different. They are but tresses by three additional Ps,
People, Planet and Profit

GREEN PRODUCT

 The products have to be developed to lessen the consumption of natural resources

required and minimize the adversely environment impact during the whole life-cycle.
 For example: NIKEs environment-friendly shoes Air Jordan which reduce the use of
harmful glue. They are the first shoe company to market itself as green

GREEN PRICE

 The price of the green products are higher compared to the other products because the
price of the resources or raw materials of renewable resources are higher
 For example: Cost of the green disposable plate is higher that the plastics disposable
plates, it is because the price of the raw materials is higher when compared with plastics

GREEN PLACE

 Green place is about managing logistics to cut down on transportation emission, thereby
in effect aiming at reducing the carbon footprint.
  For example: instead of importing products from far away places it can be produced
locally thus reduce shipping cost and carbon emission.

GREEN PROMOTION

 Green promotion involves configuring the tools of promotion such as advertising,

marketing materials in such a way that it emphasise the importance of protecting nature
by providing awareness by keeping people, planet and profit in mind.
 For example: Toyotas gas/electric hybrid cars which emit less carbon and promoting that
as an eco-friendly car.

GREEN MARKETING ADVANTAGES

1. A company can enter new markets when it brings attention to positive environmental
impact

When a business sheds light on the positive impacts their product or service brings about they
have the possibility of piercing new target markets. For example, residents that never considered
the idea of using solar power might switch to solar panels if the information is clear, concise and
targets their needs.

2.  Gain more profit from green marketing

Sustainability is a key concern for the millennial generation. They are willing to pay more for
products and services seen as sustainable or with a positive social impact. Customers are
reassured when their products are chemical-free and made with recyclable materials that do not
harm the environment.

3. Green marketing brings a competitive advantage

When you choose green marketing, you become seen as a conscious or responsible leader in your
industry. This is true even for customers that do not prioritize environmental issues.It also creates
a wider choice of marketing points that you can promote and discuss with your customers, which
go beyond traditional strategies such as having the lowest price, durability and style. Focus on
your product’s environmental and social benefits instead of solely marketing the price and value.

4. Raise awareness on important environmental or social issues

If a company supports any causes, partnering with fellow environmental leaders can be part of its
green marketing strategy. This can bring huge momentum to a campaign, an event, a training
workshop and more.

5. It promotes corporate social responsibility.

GREEN MARKETING DISADVANTAGES

1. Change leads to cost

Changing your marketing tactics takes time and the development of a new strategy, which
typically translates into increased costs. While your sustainable efforts and practices are designed
to save money, when a company puts effort into changing their brand to be more
environmentally friendly, those changes can have expensive upfront costs.

2. Costly Green Certifications

To commercialize your products as “green”, depending on your industry you might have to go
through a long and pricey process to obtain the environmental certifications. These certifications,
which the governments, industry associations, professional associations and consumer rights
groups distribute, use certain certifications to meet industry environmental standards. This is
especially true for companies operating in the fields of energy consumption and recycling waste
management.
3.  Green washing

As green marketing brings so many advantages to a business, a lot of big companies try to look
“greener” and the majority of it is just green washing. This means a company will make
something not sustainable look green by putting all of the attention on a little detail.

4. Green products require renewable and recycle materials which is costly

CHALLENGES OF GREEN MARKETING

1. Green marketing myopia

-Misjudging either or overemphasizing the former the expense of the latter can be
termed “green marketing myopia”.

2. Green marketing possess challenges to marketer:

a) Green products require renewable and recyclable material which are costly
b) Requires expensive technology
c) Majority are not aware of the green products
d) Majority are not willing to pay premium prices for the green products

3. Lack of credibility or trust by consumers and end users

4. Confusion regarding green or sustainable product claims

5. Reputational risk from “misleading claims”

6. Liability risk from “green washing” under FTC green guides

7. Need for standardization of products

8. New concept

9. Patience and perseverance

10. Water treatment technology, which is too costly

11. Requires a technology, which requires huge investment in R&D.

GREEN MARKETING EXAMPLES IN INDIA

1. LG

 LG India has been a pioneer is making eco-friendly electronic gadgets.

 It has launched a LED E60 and E90 series.

 They hardly used halogen or mercury to keep down the use of hazardous materials in
their products.

2. HCL

 It has recently launched the HCL ME 40 notebooks.

 These notebooks do not use any polyvinyl chloride (PVC) material or other harmful
chemicals.

3. SAMSUNG

 Now they have come up with eco- friendly LED backlight.

 They use 40% less electricity have also no harmful chemicals like mercury and lead.

4. WIPRO

 Helps in saving energy and preventing wastes.

 Its corporate headquarters in Pune, the most eco friendly building in this sector all over
India.

5. INDUSLND BANK
 One of the first banks to discourage the use of paper for the counterfoils in ATMs.

 Sending electronic messages.

 Contributed a lot towards saving paper and reducing deforestation.