GREEN MARKETING

CONTENTS
GREEN MARKETING
 As per AMA, Green marketing is the marketing of products
that are presumed to be environmentally safe; it involves
development and promotion of products and services that
satisfy customer’s desire and need for Quality, Performance,
Affordable Pricing and Convenience, without having a
detrimental input on the environment.

 Green marketing, also alternatively known as environmental

marketing and sustainable marketing, refers to an
organization's efforts at designing, promoting, pricing and
distributing products that will not harm the environment
MEANING
 A “Green” business activity can be defined as any business activity
that is performed in a way so that it has either limited negative
ecological impact or it directly benefits the natural environment in
some way .
 The main objective is to “meet the needs of the present without
compromising the ability of future generations to meet their needs” .
 The concept of green marketing has been used since the 1960s
when it was tried to introduce an environmentally friendly lifestyle
and especially the integration of this green term in products or raw
materials purchases. Also, it was wanted to produce electricity or
heat generation using clean wind power or heat output of the sun .
EVOLUTION OF GREEN MARKETING
THE TERM GREEN MARKETING CAME TO PROMINENCE
IN THE LATE 1980S AND EARLY 1990S WHEN AMA HELD
THE FIRST ECOLOGICAL WORKSHOP IN 1975

1987- A DOCUMENT PREPARED BY WORLD

COMISSION ON ENVIRONMENT AND DEVELOPMENT

1992-1993- TWO TANGIBLE MILESTONES

GREEN MARKETING CONCEPT
ELIMINATE THE CONCEPT OF WASTE

REINVEST THE CONCEPT OF A PRODUCT

MAKE PRICES REFLECT THE COST

MAKE ENVIRONMENTALISM PROFITABLE

 NEED OF GREEN MARKETING
It is really scary to read these pieces of information as
reported in the Times recently: "Air pollution damage to
people, crops and wildlife in US. Total tens of billions of
dollars each year". "More than 12 other studies in the US,
Brazil Europe, Mexico, South Korea and Taiwan have
established links between air pollutants and low birth
weight premature birth still birth and infant death".

Green marketing is inevitable. There is

growing interest among the consumers all
over the world regarding protection of
environment. As a result of this, green
marketing has emerged which speaks for
growing market for sustainable and
socially responsible products and services.
 SIGNIFICANCE OF GREEN MARKETING

SOCIAL GOVERNMENT COMPETITIVE

OPPORTUNITIES RESPONSIBLITIES PRESSURE ADVANTAGE
COST FACTOR
 CHARACTERSTICS OF GREEN PRODUCTS
• 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.
GOLDEN RULES OF GREEN MARKETING
Know your Customer

Leading brands should recognize that consumer expectations have changed

Giving your customers an opportunity to participate

Consider Your Pricing
Educating your Customers
Being Genuine and Transparent
Reassure the Buyer
PRINCIPLES OF GREEN MARKETING
CONSUMER ORIENTED MARKETING

COSTUMER VALUE MARKETING

INNOVATIVE MARKETING

SENSE OF MISSION MARKETING

SOCIETEL MARKETING
ENVIRONMENTALISM: ROOT CAUSE FOR
DEVELOPMENT

 Environmentalism is an organized movement of concerned

citizens, businesses and government agencies to protect and
improve people’s current and future living environment.
 Environmentalists are not against marketing and consumerism;
they simply want people and organizations to operate with
more care for the environment.
 Environmental sustainability is about generating profits while
helping to save the planet. It is a crucial but difficult societal
goal.
ENVIRONMENTAL SUSTAINABILITY
Particulars Today: Greening Tomorrow: Beyond
Greening

Internal Pollution prevention New clean technology

Eliminating or reducing waste Developing new sets of
before it is created. environmental skills and
capabilities.

Product stewardship Sustainability vision

External Minimizing environmental Creating a strategic framework
impact throughout the entire for future sustainability.
product life cycle.
GREEN MARKETING MIX

GREEN
PRODUCT

GREEN MARKETING GREEN

PROMOTION
MIX PRICE

GREEN
PLACE
Stakeholders of green marketing
GREEN CONSUMERS
• Behavioural Green Consumers
• Think Green Consumers
• Potential Green Consumers
• True Brown Consumers

GREEN RETAILERS

GREEN MANUFACTURER
STRATEGIES FOR GREEN MARKETING AND NEW
BUSINESS MODEL
ECO EFFICIENCY
AND ECO
EFFECTIVENESS
BUSINESS TO
BUSINESS GREEN
MARKETING
BUSINESS TO
CONSUMER AND E
COMMERCE
MARKETING
RESEARCH
STRATEGIES

PRODUCTION
STRATEGIES
CONSUMER BEHAVIOUR
STRUCTURE OF MARKETING PLAN
Corporate goals •Should be in line with the company’s vision and long-term strategic plan.

Objectives •Objectives should be stated clearly and should stem from the overall company’s vision and goals.

Strategies •After objectives are determined, strategies (which are how you are going to achieve the objectives)
should be developed

Tactics •Tactics are the specific means or programs to achieve the strategies and this includes the four Ps.

•Determine what market you are participating in and at what stage your product or service is in its life
Market cycle. For green products especially, there may be opportunity to add a new dimension to a mature
category with a new product benefit.

Consumer target audience •Identify potential customers.

GREENMARKET V/S GREENWASHING
Just merely adding the prefix green to the company’s or the offering’s brand
name doesn’t mean that your offering is green. Greenwashing, also known as
green sheen, is one such practice of promoting the deceptive perception
that the product is green even when it is not.

For example, asking the customers to buy a product on a pretext that it’ll
save the environment, even when it won’t, is greenwashing. Using confusing
language or imagery in the communication messages which gives a hint to
environmental friendliness could be greenwashing too.

We’ll not advise you to use greenwashing or promote your product as

environmentally friendly when it’s not, because it will not only hamper your
consumers’ trust but could also lead you to pay fines in the consumer court.
OPPORTUNITIES OF GREEN MARKETING
 It appears that all types of consumers, both individual and industrial are becoming
more concerned and aware about environment.
 In 1992 study of 16 countries, more than 50% of consumers in each country other than
Singapore indicated they were concerned about the environment (Ottman1993).
 A study in Australia found that 84.6% of the sample believed all individuals had a
responsibility to care for the environment. A further 80% of this sample indicates that
they had modified their behaviour, including their purchasing behaviour, due to
environment reasons (EPA-NSW1994).
 There are numerous examples of firms who have strived to become more
environmentally responsible, in an attempt to better satisfy their consumer needs.
 McDonald's replaced its clam shell packaging with waxed paper because of
increased consumer concern relating to polystyrene production and Ozone
depletion [Gifford 1991, Hume 1991].
 Xerox introduced a "high quality" recycled photocopier paper in an attempt to
satisfy the demands of firms for less environmentally harmful products.
 Barauni refinery of IOC is taken steps for restricting air and water pollutants.
CHALLENGES OF GREEN MARKETING
Need for
Standardization

New Concept

Patience and
Perseverance
Avoiding Green
Myopia
GREEN MARKETING TRENDS IN INDIA
 Organizations perceive environmental marketing as an
opportunity to achieve its objectives.
 Firms have realized that consumers prefer products that do not
harm the natural environment as also the human health.
 Organizations believe they have a moral obligation to be
more socially responsible.
 Governmental Bodies are forcing Firms to become more
Responsible.
 Competitors' Environmental Activities Pressure Firms to change
their Environmental Marketing Activities.
FUTURE OF GREEN MARKETING
The question that remains, however, is, what is green marketing's
future? Business scholars have viewed it as a “fringe” topic, given
that environmentalism's acceptance of limits and conservation
does not mesh well with marketing's traditional axioms of “give
customer what they want” and “sell as much as you can”.

The following three principles can help in establishing better

future of green marketing
 CONSUMER VALUE POSITIONING
 CALIBRATION OF CONSUMER KNOWLEDGE
 CREDIBILITY OF PRODUCT CLAIM
CONCLUSION
 Now this is the right time to select “Green Marketing” globally.

 From the business point of view because a clever marketer is one who not only
convinces the consumer, but also involves the consumer in marketing his
product.

 Green marketing should not be considered as just one more approach to

marketing, but has to be pursued with much greater vigour, as it has an
environmental and social dimension to it.

 Marketers also have the responsibility to make the consumers understand the
need for and benefits of green products as compared to non-green ones.

 Finally, consumers, industrial buyers and suppliers need to pressurize effects on

minimize the negative effects on the environment-friendly.
CASE STUDIES: 1
 Best Green IT Project: State Bank of India: Green IT@SBI
By using eco and power friendly equipment in its 10,000 new ATMs, the banking
giant has not only saved power costs and earned carbon credits, but also set the
right example for others to follow.

SBI is also entered into green service known as “Green Channel Counter”. SBI is
providing many services like; paper less banking, no deposit slip, no withdrawal
form, no checks, no money transactions form all these transaction are done
through SBI shopping & ATM cards. State Bank of India turns to wind energy to
reduce emissions: The State Bank of India became the first Indian bank to harness
wind energy through a 15-megawatt wind farm developed by Suzlon Energy. The
wind farm located in Coimbatore uses 10 Suzlon wind turbines, each with a
capacity of 1.5 MW. The wind farm is spread across three states – Tamil Nadu, with
4.5 MW of wind capacity; Maharashtra, with 9 MW; and Gujarat, with 1.5 MW. The
wind project is the first step in the State Bank of India's green banking program
dedicated to the reduction of its carbon footprint and promotion of energy
efficient processes, especially among the bank's clients.
CASE STUDIES: 2
 Lead Free Paints from Kansai Nerolac
 Kansai Nerolac Paints Ltd. has always been committed to the
welfare of society and environment and as a responsible corporate
has always taken initiatives in the areas of health, education,
community development and environment preservation. Kansai
Nerolac has worked on removing hazardous heavy metals from their
paints. The hazardous heavy metals like lead, mercury, chromium,
arsenic and antimony can have adverse effects on humans. Lead in
paints especially poses danger to human health where it can cause
damage to central nervous System, kidney and reproductive system.
Children are more prone to lead poisoning leading to lower
intelligence levels and memory loss.
CASE STUDIES: 3
 Indian Oil's Green Agenda
 Indian Oil is fully geared to meet the target of reaching EURO-III compliant
fuels to all parts of the country by the year 2020; major cities will upgrade to
Euro-IV compliant fuels by that time.
 Indian Oil has invested about Rs. 7,000 crore so far in green fuel projects at its
refineries; ongoing projects account for a further Rs. 5,000 crore.
 Motor Spirit Quality Improvement Unit commissioned at Mathura Refinery;
similar units are coming up at three more refineries.
 Diesel quality improvement facilities in place at all seven Indian Oil refineries,
several more green fuel projects are under implementation or on the anvil.
 The R&D Centre of Indian Oil is engaged in the formulations of eco-friendly
biodegradable lube formulations.
 The Centre has been certified under ISO-14000:1996 for environment
management systems.
REFERENCES
 J.A Ottman,. et al, "Avoiding Green Marketing Myopia", Environment, Vol-48, June-
2006
 www.greenmarketing.net/stratergic.html
 www.epa.qld.gov.au/sustainable_ industries
 www.greenpeace.org/international
 Gupta C.B, Rajan Nair., N, Marketing Management, Sultan Chand and Sons, New
Delhi, 2012, P-20.17.
 Philip Kotler, Gary Armstrong, prafulla Y. Agnihotri, Ehsan ul Haque, Marketing A South
Asian Perspective, Dorling Kindersley (india) pvt Ltd, licenses of Pearson education in
South Asis, 2011.
 M.Selva Kumar.M, Ramesh pandi.G, Green Marketing- An Innovative International
Business, Procedings of the National Level Conference on International Trade after the
Economic Cricis: Challenges and New Opportunities, 2013, p- 108.
 www.irc-online.org/americaspolicy/ commentary/2002/0203 pollution.html.
 13. www.greenmfgnews.com.
THANK YOU