1. Introduction 1.1 What is Green Marketing?

Environmental issues have gained importance in business as well as in public life through out the world. It is not like that a few leaders of different countries or few big renowned business houses are concerned about the day to day deterioration of oxygen level in our atmosphere but every common citizen of our country and the world is concerned about this common threat of global warming. So in this scenario of global concern, corporate houses has taken green-marketing as a part of their strategy to promote products by employing environmental claims either about their attributes or about the systems, policies and processes of the firms that manufacture or sell them. Clearly green marketing is part and parcel of over all corporate strategy; along with manipulating the traditional marketing mix(product, price, promotion and place) , it require an understanding of public policy process. So we can say green marketing covers a broad range of activities. Different writers has given different definition about green marketing which tried to cover all major components of green marketing According to Polonsky(1994)- green or environmental marketing consists of all activities, designed to generate and facilitate any exchange indented to satisfy human needs and wants, such that the satisfaction of these needs and wants occur with minimum detrimental impact on the natural environment.

Mintu and Lozada(1993) defined green marketing as the application of marketing tools to facilitate exchanges that satisfy organizational and individual goals in such a way that the

this exchange has on the environment. The industrial houses has recognised that the entire system of production and consumption determines environmental quality. used and disposed off. reducing or minimizing pollution from production can be soon overshadowed by the impactsfrom concurrent increases in the scale of demand for those services and goods from growing consumer base. To be more accurate products making green claims should state they are “ less environmentally harmful” rather than “ environmental friendly. Environmental impacts are a function of the way services are provided and the way goods are produced. The definition also includes the protection of natural environment by attempting to minimize the detrimental impact. . This second point is very important for human consumption by its very nature is destructive to the natural environment.” Thus green marketing should look at minimizing environmental harm. protection and conservation of the physical environment is upheld”. not necessarily eliminating it. According to Stanton and Futrell(1987)-all activities designed to generate and facilitate any exchanges intended to satisfy human needs and wants. Production and consumption are considered together because gains made by controlling.preservation. as voluntary exchange will not take place unless the buyers and sellers are mutually benefited. delivered. therefore it ensures that the interest of the organization and all it consumers are protected.

which in turn keeps them under constant and relentless watch in their daily operations. from strategy .2 Importance Of Green Marketing: Since early 1990s. even though questions remain on their willingness to pay a higher premium for such products! So in this era where consumers determine thefate of a company. at the same time. Govt. the consumers of these countries are being more and more outspoken regarding their needs for environmentally friendly products. NGOs. because of these. green marketing imparts a proactive strategy for these companies to cater the market by imparting naturefriendly products/ services which otherwise reduce or minimize any detrimental impact on environment. became more strict in imposing regulations to protect environment. A direct result can be seen in developed and developing countries where Govt.. A green. environmentalists. new perceptions are being formed or re-evaluated on issues like environmental friendly products. the cost associated with pollution and the price value relationship of environmentalism. Not only the relation between human.Rationale for green marketing 1. waste-reduction.but the implication thereof are being interpreted.marketing approach in the product areapromotes the integration of environmental issues into all aspects of the corporate activities. a major concern on ecological impact of industrial house on environment has been surfaced on marketplace. organization and natural environment being redefined . consumers is placed on businesses. Pressure from various stakeholders. recycle ability.

Now a days firms are becoming more concerned about their social responsibilities (S. re-engineering in production process and dealing with consumers. We would than be able to manage the life stages of a product in an environmental friendly and eco. Why Are Firms Using Green Marketing? Firms may choose to green their systems.R as a good strategic move to build up an image in the heart of . regulators. Life cycle reassessment focuses on environmental consideration in product development and design.Some scholar claim that green policies/products are profitable: green policies can reduce costs. in this endeavour the companies may go for new technologies for handling waste. the companies will have to find answer through their marketing strategies. They have taken S. including energy and material inputs and out-puts in production. product& service redesign. consumption and disposal of products. #2. business partners. So to remain competitive within the challenge thrown by the environment protectionists . it can go for product standardization to ensure environmentally safe products. by providing truly natural products.formulation. Companies may manifest this concern through experimentation with ways to reassess and redesign the product life stages. In this regard the companies should be concerned with what happens to a product during and after its useful life. customer handling etc. citizen groups and other stakeholders(non market environment).efficient manner. green firms can shape future regulations and reap first mover advantage. Eco-efficient refers to the proper thinking for the use or consumption of natural resource so that nature is afforded an opportunity to renew itself. 2. policies and products due to economic and noneconomic pressures from their consumers. sewage and air pollution.R).some other reasons may includes: #1. planning.

consumers attitude towards firms having green policies or green products are becoming motivating factor. where as there is example offirms who are working in this direction in a silence manner like cocacola. as well as having modified their packaging to minimize it’s environmental impact. Even the socially responsible firms are getting leverage. has the law to protect the consumers and the environment from the harmful goods or byproducts and ensure through law that all types of consumers have the ability to evaluate the environmental composition of goods. There are example of firms like ITC.consumers. # 4 . HLL(Surfexcel) who are heavily promoting them as an environmentally concerned firms. #3. established several regulations to control the amount of hazardous waste produced by firms and many by-products of production are controlled through the issuing ofvarious environmental licenses. (2) they are working in this field without promoting the fact. whenever they intend to enter into foreign countries. . thus shaping the behaviour of organization towards more socially responsible one. Change in customers attitude: with increasing concern about environment. who have invested corersofmoney in various recycling activities. Another big organization who is also working in this field without claiming any credit is Walt Disney World (WDW). Govt. In some countries govt. Governmental pressure: in all most all civilized countries Govt. While being concerned about the environment coke has not use their concern as a marketing tool. So we can see that firms in this situation have taken two perspectives: (1) they are using green marketing as marketing tool.

it asked the government to introduce clean fuel like CNG in public transport system. Competitive pressure: competition is the integral part of business. Indraprastha Gas Ltd. To take an example when supreme court ordered the Delhi Government to examine ways and means to reduce pollution in Delhi. This need is greatly influenced by consumer-forums and judiciary. Today Indraprastha Gas has 121 CNG distribution station 18 . therefore firms that would able to introduce green-marketing by not inculcating or lesser use of harmful ingredients would able to reduce it’s operating cost to an considerable extend. So to be in the market you have to have a vigil over your competitor’s move for marketing it’s products. and you can not over-look any competitive action taken by your competitor. #5 . In some instances this competitive pressure has caused an entire industry to modify and thus reduce it’s detrimental environmental behaviour. Some firms ahs taken green-marketing as a strategy to build up it’s image rather than inculcate it as a part of the policy and work silence. This led to Delhi TransportCorporation becoming the largest CNG powered transport system in the country. Cost or profit issue: firms may also use green-marketing in an attempt to have an control over the cost associated with waste disposal. SOME CASE POINTS: Case-I: NDTC: The need to be eco friendly is across the entire spectrum of activities. had to increase it’s supply. Also the only CNG supply company. The vehicles had to made appropriate changes. #6.has designed guidelines in such a way that consumer would have appropriate information which would enable them to evaluate organisation’s environmental claims. This put pressure on petroleum companies for launching clean fuels with low sulphur content and lead free petrol. 5.

It also spurred development in the automobile sector which manufactured vehicles that could run on CNG fuel. Even though the proportion ofadspends from its Rs1000cr advertising and promotion budget have been minimal. the company would contribute Rs2/. Delhi. like Bharat-III. Case-III: Ponds: The Rs355cr brand ponds of HLL. catering to about 90000 vehicles.in Delhi with a combine capacity of 16. refining and marketing. This saw the surf excel buyers in the four cities of Mumbai. Bangalore and Kolkata SMSing an amount to HLL(now HUL). Case-II: Surf-excel: some kids in Mumbai’s Bainganwadi slums are grateful to SurfExcel.to the fund to fight domestic violence. Ero –II. Also the vehicles have to conform to pollution control norms as laid down by the Govt. This growing concern for the environment led to development in oil and gas exploration. HLL says most of its brands will look for long term strategic linkage with social causes. The company in turn donate that amount to an NGO that was involved in educating underprivileged children. 19 . tied up with United Nations Development Fund for Women. For every flap of ponds cold cream mailed by the consumers.47 lakhs kg gas per day. the Rs 485cr brand which introduce a feel-good marketing campaign-The Surf Excel 10/10 drive.

Nabankur Gupta adds. HLL. Ravi Naware says. then consumers get an emotional connect that far beyond just usage of the brand and consuming it. A case in point is the Rs16000Cr ITC. about putting India first for it’s e-choupal initiative two years back. It is this higher level of connect that we are attempting to create through this campaign.” product differentiation is completely drying up.Vice President skin care. Divisional chief executive. “ if the activity is not housed in brand promise. or even ponds.V advertising that if you will purchase Tata-salt . the company has linked the Sunfeast brand to it’s social forestry campaign. Aashirvaad. Marketing consultant and founder of Nobby. Cut to the present. a significant percent of profit per pack would be contributed towards the education of underprivileged children of the slams. specific to fair and lovely. service aspects are narrowed out. that ran their CSR campaign. “consumers like to connect with brand. these are strongly housed in what the brand stands for and what brand promise is all about. contribute towards ITC’s rain harvesting campaign. so the brand . Ashok Venkatramani told CNBC-TV18.” Case-IV: Sunfeast : Here another difference to note. corporate social responsibility (CSR) is being used to build individual brands rather than the corporate brand. In our case . if the brand is seen as a socially responsible brand. 20 Case-V: Tata –Salt: Very recently Tata has lunched a campaign through T. hence they are easy to sustained and will reap huge benefits. where the company chips in with 25 paise for every pack of Sunfeast biscuit and pasta sold and consumers who buy the Atta brand. than it looks like a charitable activity and in my view. ITC. those activities are difficult to sustain in long run.

It will come up in the auto sector in my view. there will be aclutter. experts say it is important to find the right fit between brandand cause that lasts longer than a passing fad.value question will come up in the durables sector as well. At the same time.” But if from detergent to TV sets all brands chase consumers for a cause. This will be a very live issues as we move forward in time. .

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