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AN OVERVIEW OF GREEN MARKETING An Overview of Green Marketing

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 AN OVERVIEW OF GREEN MARKETING

Mr. L. Rajeshkumar
Research Scholar, Department of management studies,
Manonmaniam Sundaranar Universiry, Tirunelveli
E-Mail: rajeshkumarmbamphilmsu@gmail.com,

ABSTRACT

Green marketing refers to the process of producing and selling (package) products
and also services based on their environmental benefits. In current scenario more
companies are starting to follow the green marketing, at the same time urban
consumers are more aware of the green marketing but rural consumers not more
aware of the green marketing.

In a world all the countries are taking necessary steps to reduce the plastics and
implement the Environmentally Friendly products way of Green Marketing and save
the earth. These kinds of products are not affecting the environment and also re-
compose the wastage to re-usable. So this could save the earth from the wastage and
also save the people’s Health.

This paper contents are characteristics, benefits, adopts by the firms, challenges,
golden rules, green marketing mix, how to implement green marketing, 7 steps to
implement green marketing, present trends and future of green marketing.

Key words: Green marketing, green practices, green products, consumer

behavior, environmentally friendly product, eco-friendly product, eco – logical
marketing.

INTRODUCTION
Green Marketing is the most modern
and recent trend market. This enabled
for the environment safe in human and
animal and planets. The term Green
Marketing came into the late 1980s
and early 1990s. The American
Marketing Association (AMA) held
the first workshop on "Ecological
Marketing" in 1975. The proceedings
of the workshop resulted in one of the
first books on green marketing entitled
"Ecological Marketing". Other similar
terms used are Environmental
Marketing and Ecological Marketing.
In a world all the countries are taking
necessary steps to reduce the plastics
and implement the Environmentally
Friendly products way of Green
Marketing and save the earth. These
kinds of products are not affecting the
environment and also re-compose the
wastage to re-usable. So this could
OVERVIEW OF GREEN MARKETING
Overview of Green Marketing
Characteristics
Benegits of Green Marketing
Problems of Going Green
Marketing
Adoption of the Firms of Green
Marketing
Naamex International Journal of Management Research
An Overview of Green Marketing
save the earth from the wastage and
also save the people’s Health.
Green marketing refers to the process
of producing and selling (package)
products and also services based on
their environmental benefits.
According to the American Marketing
Association, “green marketing as
efforts by business or organizations to
produce, promote, package, and
reclaim products in a manner that is
sensitive or responsive to ecological
concerns.
In this paper the researcher
concentrates the areas of
Characteristics, Benefits of Green
Marketing, Problems with Going
Green Marketing, Adoption of The
Firms, Challenges, Green Marketing
Mix, How to Implement Green
Marketing, 7 Steps to Implement
Green Marketing.
Challenges of Green Marketing
Green Marketing Mix
7 Steps to Implement Green
Marketing
How to Implement Green
Marketing
128 Vol. No. 2, Issue No. 1, Jan-June 2012

CHARACTERISTICS OF GREEN
Marketing
In current scenario people are using
more products were compared to olden
days. Products those are produced in a
safe way of environment and the
products which are re composable
called as green products. The
characteristics of green products are:
 Products those are with natural
ingredients and originally grown
 Products those are recyclable,
reusable and biodegradable,
 Products should be ozone safest,
 Products should be organic,
 Products containing recycled
content, non-toxic chemical,
 Products contents under approved
chemical,
 Products should be printed in
carbon footprint, carbon neutral,
 Products should be re-compostable,
 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.
BENEFITS OF GREEN
MARKETING
Emerging all new concepts is having
benefits, if that has benefited only
people accept the new concepts. In that
way Green Marketing also has some of
the important benefits those are:
a. Increased revenue:
Every new and positive concept has a
good look by the consumers.
Especially Innovators are the important
role of this segment. Because they are
concentrated on all new products, if
they are satisfied with the products
Naamex International Journal of Management Research
An Overview of Green Marketing
definitely the product very successful.
If the new concept may successful
means the sales of the products also
going to increase. If the sales increase
automatically revenue also increases.
b. Reduced cost:
In green marketing, the raw material of
the production is less, and also the set
up of the business for the long run. The
cost of the raw material should be low.
This helps to increase the production
and also save money.
c. Build brand value:
Which company do well for the world
and people, those companies will get a
good brand value in the heart of the
consumers. In this way green practices
companies also get a good brand value
among the consumers.
d. Get tax breaks and loans:
The government gives subsidies for
innovative companies which help the
people who are living in a rural or un-
employment. For example if the
company start in rural area government
gives loans and also tax breaks,
because of taking risks of the company
and also give employment of the rural
area peoples. Likewise in green
marketing of the companies also take
risk and also they are saving the
environment and also save health of
the people, so they can get loan and tax
breaks from the government.
e. Control wastage:
In main theme of the green marketing
is reusable, re-compostable, natural
way. So the way of following green
marketing the company can save and
reduced of the wastage.
129 Vol. No. 2, Issue No. 1, Jan-June 2012

f. World salvation:
Increase of wastage of the products the
world going to increase warmth. And
also now days the production process
of the companies is sending more
smoke to outside. Those smokes are
going to stay in the sky and change the
climate and affect the environment.
The way of following green practices,
the companies could save the world in
the way of saving the health of peoples
and the environment.
GREEN MARKETING
ADOPTION OF THE FIRMS
In any change of the products that
going to concentrate and alteration of
the activities of the firms. How they
are going to adopt green practices in
their process of the production
activities. These are some of the
adoptions of the companies
a. Opportunities:
In current situation both individual and
industries are more about the natural
environment. People are more
concentrated to buy environmentally
friendly products. So the industries
more concentrate to modify their
product. In future all industries should
follow the green practices of their
company so this could be the very
opportunity for their business. These
are some of the examples of green
practices for their business:
 McDonald's replaced its clam shell
packaging with waxed paper
because of increased consumer
concern relating to polystyrene
production and Ozone depletion
 Tuna manufacturers modified their
fishing techniques because of the
increased concern over driftnet
fishing, and the resulting death of
dolphins
Naamex International Journal of Management Research
An Overview of Green Marketing
 Xerox introduced a "high quality"
recycled photocopier paper in an
attempt to satisfy the demands of
firms for less environmentally
harmful products.
b. Corporate social responsibilities:
In current scenario the educated
peoples are more being compared
before days. People are concentrating
on the advertisements and also
corporate social responsibilities (CSR)
companies. Some of the companies are
using this CSR for their marketing
tool. Because people believe the
company and also their products, then
automatically the particular
companies’ sales going to increase and
get more profit.
The best examples are Sakthi masalas,
they showing advertisement is the
preparation of the masalas done by the
physically challenged persons. So
when people seeing the advertisements
people impress and automatically give
more importance to prefer the product.
Another example of a firm that does
not promote its environmental
initiatives is Coca-Cola. They have
invested large sums of money in
various recycling activities, as well as
having modified their packaging to
minimize its environmental impact.
While being concerned about the
environment, Coke has not used this
concern as a marketing tool. Thus
many consumers may not realize that
Coke is a very environmentally
committed organization. One another
firm who is very environmentally
responsible but does not promote this
fact, at least outside the organization,
is Walt Disney World (WDW). WDW
has an extensive waste management
program and infrastructure in place,
yet these facilities are not highlighted
130 Vol. No. 2, Issue No. 1, Jan-June 2012

in their general tourist promotional
activities.
c. Government pressure:
Government implements rules and
regulations to control and stop the
illegal activities. Particularly firms
producing products for people.
Because if any default in the product
that surely going to affect the people.
So, Government regulations relating to
environmental marketing are designed
to protect consumers in several ways:
1) reduce production of harmful goods
or by-products; 2) modify consumer
and industry's use and/or consumption
of harmful goods; or 3) ensure that all
types of consumers have the ability to
evaluate the environmental
composition of goods. In green
marketing which come under the
government rules and regulations, so
government preparing new rules and
regulations to implement green
marketing activities. Like, tax benefit,
subsidy.
d. Competitive pressure:
This is the one of the important ways
to implement green marketing. In
current scenario more companies are
producing in the same product. So if
any one of the company implements
green practices for their company
automatically that is one of the
enthusiastic to implement the green
practices of other companies also.
Because now a days people are more
aware of the products, producing
company, brand name.
Best example is, the author takes
drinking water producing companies,
there are several companies are in the
field of drinking water. Aquafina
packaged drinking water from
PEPSOCO, printed in every drinking
Naamex International Journal of Management Research
An Overview of Green Marketing
bottle “giving back more water than
we take”, they call that “positive water
balance” to help save a precious
resource that is fast depleting in India.
Through rain – water harvesting,
community watersheds, and water
conservation in agriculture. But
Pespsico India saved 836 million liters
more water than they consumed in
2009. Here Aquafina following green
practices so automatically other
drinking water companies take
necessary steps to follow green
practices.
e. Cost reduction and profit issue:
To increase profit is not a very easy
activity of the companies. When
reducing the cost of the production
only can easy to reduce the cost and
increase the profit. To change or re-
design the production process, can
save the wastage of the raw material
and also minimize the raw material
usage and automatically the profit
going to increase.
CHALLENGES OF GREEN
MARKETING
A. New Concept
In India literate and urban consumer is
getting more aware about the merits of
Green products but rural consumer are
not more aware like urban. New
concepts are not easy to reach very
quickly to the consumers. They need to
take more time to reach the consumers.
The company and government need to
take steps that creates more awareness
and explain about the new concept, and
then only the consumer can understand
and try to follow the new concept.
When consumers understand the new
concept, then only they are going to
accept the new concept. Otherwise the
131 Vol. No. 2, Issue No. 1, Jan-June 2012

new concept will be facing a big
challenge.
B. Need for Standardization
There is no standardization to
authenticate these claims. There is no
standardization currently in place to
certify a product as natural. Unless
some regulatory bodies are involved in
providing the certifications there will
not be any verifiable means. A
standard quality control board needs to
be in place for such labeling and
licensing.
C. Patience and Perseverance
The investors and corporate need view
the environment as a major long-term
investment opportunity, the marketers
need to look at the long-term benefits
of this new green practices. It will
require a lot of patience and no
immediate results. Since it is a new
concept and idea, it will have its own
acceptance period. After the
acceptance period automatically the
concept reaches to the consumers. So
up to that period the investors need to
wait.
D. Avoiding Green Myopia
The first rule of green marketing is
focusing on customer benefits with
safe. The first reason, to find the
consumers to buy the first opportunity
of the product. Motivate the consumers
to pay a premium amount to buy the
environmentally friendly products. 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. This will
lead to green myopia. Also if the green
products are priced very high at par
with other products, then again it will
lose its market acceptability.
Naamex International Journal of Management Research
An Overview of Green Marketing
E. Huge investment for technology
The new technology will be high cost
were the ordinary machine technology.
So the investors are not ready to invest
more amounts and not ready to take
risks.
F. Unwilling to pay premium
If green products are produced more,
then the cost of production also raises
when compared with ordinary product.
Raw material cost going high and
production cost and also low sales,
those factors are going to raise the
price of the green product. So
consumers are not ready to pay a
premium amount for greener products.
GOLDEN RULES OF GREEN
MARKETING
a. Know your Customer:
The marketer first to know about his
consumer’s knowledge, and their
awareness of the product. Which
product offers by the marketer to the
consumer? (Whirlpool learned the hard
way that consumers wouldn't pay a
premium for a CFC-free refrigerator
because consumers dint know what
CFCs were.
b. Educating your customers:
The marketer educate to the known
people, about the practices they sare
supposed to do to protect the
environment, and also explain the
advantages of the product. If the
marketer explains about the product to
the known people, only they can know
about the product. Otherwise there is a
low possibility to accept the green
product.
c. Being Genuine:
132 Vol. No. 2, Issue No. 1, Jan-June 2012

Here the marketer could be genuine for
their consumers. Then only consumers
believe the marketer and accept the
products which offer by the marketer.
d. Comfort the Buyer:
Consumers must be made to believe
that the product performs the job it's
supposed to do they won't forego
product quality in the name of the
environment.
e. Consider Your Pricing:
If marketer charging a premium for his
product and many environmentally
preferable products, cost more due to
economies of scale and use of higher
quality ingredients make sure those
consumers can feel the real value of
the product and pay premium amount.
f. Giving your customers an
opportunity to participate:
Marketer when implementing a new
product, they need to give a chance to
use the product. If consumers satisfy
the product, automatically they are like
and try to purchase the product. So the
demo is very important.
GREEN MARKETING MIX
The marketing mixes are product,
price, place, promotion. The 4 P's of
green marketing are that of a
conventional marketing but the
challenge before marketers is to use
the 4 P's in an innovative manner.
Product:
Products are classified based on
product variety, quality, design,
features, brand name, packaging, sizes,
services, warranties, returns. But in
green marketing:
Naamex International Journal of Management Research
An Overview of Green Marketing
 The product is made from recycled
goods, Products that can be
recycled and re-usable,
 Efficient processes would save
water, energy or gasoline, save
money and reduce environmental
impact.
 Products with environmentally
responsible packaging., For
example, McDonalds changed their
packaging from polystyrene
clamshells to paper
Price:
In price are classified are list price,
discounts, allowances, payment period,
credit terms. But in green marketing
pricing is the critical element of the
marketing mix. Most consumers are
prepared to pay a premium amount of
the product.
Place:
In place classified are channels,
coverage, assortments, locations,
inventory, and transport. In green
marketing the practices are changing
with respect to distribution of the
product due various changes in the the
mode of the transport which is safe the
environment.
Promotion:
In promotions classified are sales
promotions, advertising, sales force,
public relations, direct marketing. In
green practices, advertising of the
product should be carried out that shall
not affect the environment and
alternate the printed advertisement to
electronic advertisements..
HOW TO IMPLEMENT GREEN
MARKETING
Implementation of practices of green
of marketing not only by firms and
133 Vol. No. 2, Issue No. 1, Jan-June 2012
 An Overview of Green Marketing

also individuals can follow. These are 7 STEPS TO IMPLEMENT

the some of the ways to follow green GREEN MARKETING
marketing practices are:
In generally the implemented green
 Through website for marketing in business is more ways
advertisements, even though there are 7 steps to
 Use green printing for product implement green market. These are the
manuals, 7 steps to implement green marketing
 Choose 100% recycled printer for their business:
paper,
 Go with green clothing, 1. Reduce your printing habits
 Rethink your package and 2. Print on both sides of the paper
recyclable package paper, 3. Use recycled, post-consumer paper
 Green delivery and better use cycle 4. Go digital when possible,
for courier in near area, 5. Shy away from ineffective
 Send electronics proof, marketing programs.
 Eco business card (Visiting card). 6. Reduce unnecessary product
packaging.
7. Use alternative sources of energy.

GREEN MARKETING IMPLEMENTED COMPANIES

S.No Name of the company Implemented green marketing

Cutting energy usage at stores by 30% to
reduce greenhouse gas emissions,
Spending $500 million per year to improve the
1 Wal-Mart truck fleet fuel economy,
Working towards monitoring overseas
suppliers to ensure they meet environmental
standards.
In 2000, British Petroleum rebranded to “BP”
2 British Petroleum
and adopted the slogan “beyond petroleum.”
Hiring a full time director of environmental
affairs,
Launching a 200-ton per year recycling
program
3 Fairmont
Offering free parking for guests with hybrid
cars
Retrofitting lighting with energy efficient
bulbs
In 2005, Double investments in clean R&D by
2010
Increase revenues from Ecomagination
products to $20 billion by 2010
4 General Electric
Reduce their own greenhouse gas emissions by
1% over 7 years
(When they would have increased by 40%)

Naamex International Journal of Management Research 134 Vol. No. 2, Issue No. 1, Jan-June 2012
 An Overview of Green Marketing

In 2007, CEO Gaelen Weston appeared in

company advertisements touting their promise
5 Loblaws
to reduce waste through the introduction of
reusable shopping bags.
One Earth Global Headquarters in Pune -
6 Suzlon Energy
India’s first greenest building
7 ITC Paperkraft’s Premium range of eco-friendly business paper
Country’s first solar-powered ATM and
8 IndusInd Bank pioneered an eco-savvy change in the Indian
banking sector
State Bank of India Introduced full online service from printed.
9
Set up bus shelters with potted plants and
10 IDEA
tendril climbers to convey the green message

CONCLUSION MARKETING AND CSR,

International Journal of Research in
In above we saw all over about the Finance & Marketing, Volume 1, Issue
green marketing characteristics, 6, (ISSN 2231-5985)
benefits, adopts by the firms, http://www.mairec org.
2) “Green is Gold - Consumers Want
challenges, golden rules, green
Eco-Friendly Products | ® - Good for
marketing mix, how to implement Business.” AirDye. 20 Jan. 2010.
green marketing, 7 steps to implement <http://blog.airdye.com/goodforbusin
green marketing, present trends and ess/2009/06/08/green-is-gold/>.
future of green marketing. Consumers 3) “The New Green Marketing,
are most aware all about green Marketing & Advertising Market
marketing and try to necessary steps to Groups from AllBusiness.com.”
follow green marketing. Industries are Business Resources, Advice and
needed to give more and clear state Forms for Large and Small
about green marketing and advantages Businesses. 15 Jan. 2010.
and benefits to the consumers then <http://www.allbusiness.com/environ
only they aware and try to follow. ment-natural-
resources/environmentalism/1149360
Finally the important one is
2-1.html>.
government; government is playing a
4) “The Business Benefits of Going
vital role to create new rules and Green |.” EcoStrategy Group,. 20 Jan.
regulations for implementing green 2010.
marketing. Also government gives http://ecostrategygroup.com/2008/09/t
loans and subsidies for innovative he-business-benefits-of-going-green/
environmentally friendly products 5) “Dictionary.” American Marketing
producing companies. Association. American Marketing
Association.. 15 Jan. 2010.
REFERENCE <http://www.marketingpower.com/_la
youts/Dictionary.aspx?dLetter=G>.
Article reference: 6) “Eco Green-Speak commonly used
green words and phrases - Green
1) Dr. Bhuvnender Chaudhary, marketing.” Melissa Data. 15 Jan.
Mr.Saurabh Tripathi, Mr.Nikhil 2010.
Monga (October, 2011), GREEN

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 An Overview of Green Marketing

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Naamex International Journal of Management Research 136 Vol. No. 2, Issue No. 1, Jan-June 2012

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