WHAT IS GREEN

MARKETING
• Green marketing refers to the process
of selling products or services based on
their environmental benefits.
• Such a product or service may be
environmentally friendly in itself or
produced or packaged in an
environmentally friendly way
 DEFINATION
Retailing • The marketing of products that are presumed to be
environmentally safe.
Definition
Social Marketing • The development and marketing of products designed
to minimize negative effects on the physical
Definition environment or to improve its quality

Environmental • The efforts by organizations to produce, promote,

package, and reclaim products in a manner that is
Definition sensitive or responsive to ecological concerns
 WHY GREEN MARKETING
Opportunities available and competitive advantage

Corporate social responsibility on the part of companies

Government regulations

Competition with other responsible companies

Goodwill of the company

Environment conscious consumers

For conserving scarce natural resources

CHARACTERISTIC OF GREEN PRODUCTS

Recyclable
Reusable and biodegradable
Contains natural ingredients
Free of non-toxic chemical
Less harmful chemical used
Do not harm or pollute the environment
Not tested on animals
  THE 5 R’S OF GOING GREEN
RECYCLE

REDUCE REUSE

REDESIGN RETHINK
 GREEN MARKETING MIX
Product: The ecological objectives in planning products are to
reduce resource consumption and pollution and to increase
conservation of scarce resources.
Price: Price is a critical and important factor of green marketing mix.
Most consumers will only be prepared to pay additional value if there
is a perception of extra product value. This value may be improved
performance, function, design, visual appeal, or taste. Green
marketing should take all these facts into consideration while charging
a premium price.
Promotions: There are three types of green advertising:
 Ads that address a relationship between a product/service and the
biophysical environment
 Those that promote a green lifestyle by highlighting a product or
service
Ads that present a corporate image of environmental responsibility
Place: The choice of where and when to make a product available will
have significant impact on the customers. Very few customers will go
out of their way to buy green products.
 KEYS TO SUCCESSFUL GREEN
MARKETING
 Being genuine
Educating customers
Giving customers an opportunity to participate
 Knowing customer
Empower consumers
 Be transparent
 Reassure the buyer
 Consider pricing
Benefits of Green Marketing
It will enhance the image of the company in society

It will promote the renewal of the products and its improvement

It will increase the chances of entering the premium segment and

its further expansion

It will form friendly relations with public organizations and with state
and local government bodies

It will give an opportunity to enter foreign markets

 CHALLAENGES of GREEN
MARKETING
Challenges Green products require renewable and recyclable material,
which is costly.

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

Majority of the people are not aware of green products and their uses

Water treatment technology, which is too costly.

Majority of the consumers are not willing to pay a premium for green
products
GREEN INITIATIVE TAKEN BY
SOME COMPANIES IN INDIA
1) HCL's Environment Management Policy under HCL eco Safe
 The key objective under HCL eco Safe is targeted at integrating
environmental management procedures into its business processes thereby
protecting the environment, health, and safety of all its stakeholders. HCL
commits to manufacture products that are environment friendly in all
respects and are free from hazardous chemicals.
2) IBM
 IBM is selling green solutions to corporate data centers where energy
constraints and costs are limiting their ability to grow, with the promise that
the energy costs would be reduced by half.
3) Honda India
 Introduced its Civic Hybrid car. However, initially it was unable to sell
the same due to the high price. The price was reduced to Rs. 8 lakh, and
within a day, 98 Civic Hybrids were sold, which was more than what
Honda had been able to sell during the previous five months since its
launch.
4) Idea Cellular
 Implemented its national campaign ‘Use Mobile, Save Paper’. The
company organized Green Pledge campaigns to save paper and trees.
Idea decorated bus shelters with potted plants and tendril climbers to
communicate the green message.
5) ITC
ITC has introduced Paperkraft, a premium range of eco-friendly business
paper. The company’s social and farm forestry initiative has greened over
80,000 hectares of arid land
 ITC has been 'Carbon Positive' three years in a row (sequestering/storing
twice the amount of CO2 than the Company emits)
 ITC's businesses generate livelihoods for over 5 million people
 ITC's globally recognised e-Choupal initiative is the world's largest rural
digital infrastructure benefiting over 4 million farming families
 ITC's Sustainable Community Development initiatives include women
empowerment, supplementary education, integrated animal husbandry
programmes.
6) IndusInd Bank
 Installed the country’s first solar-powered ATM and thus brought about
an eco-savvy change in the Indian banking sector
7) MARUTI
The company has been promoting 3R since its inception. As a result the
company has not only been able to recycle 100% of treated waste water
but also reduced fresh water consumption
8) Wipro Infotech
launched a new range of desktops and laptops called Wipro Greenware.
These products are RoHS (Restriction of Hazardous Substances)
compliant thus reducing e-waste in the environment
9) Introduction of CNG in Delhi
 New Delhi, capital of India, was being polluted at a very fast pace until
Supreme Court of India forced a change to alternative fuels. In 2002, a
directive was issued to completely adopt CNG in all public transport
systems to curb pollution

10) Suzlon Energy manufactures

 Manufactures and markets wind turbines, which provide an alternative
source of energy based on wind power. This green initiative taken by
the company is extremely important for reducing the carbon footprint
PROMBLEMS WITH
APPLICATION OF GREEN
MARKETING
Green Spinning: CONCEPT
Instead of environmentally improving the product, some business firms try
responding to environmental challenges and pressures by presenting their own
version of environmental “facts” through their public relation efforts. Such practices
and tactics add to the already existing stock of confusion in the market and
substantially lower down the credibility of environmental claims made by other
genuinely green firms
Green Selling: Companies continue to produce virtually the same product, but they
add some “new” environmental benefits in their promotion campaigns to take
advantage of increasing consumer interest in the environment. When practiced in this
form, green marketing efforts on the part of the companies remain concerned only
with promotional activity, with little or no effort being made to develop products
which are truly green
• Green Harvesting: Greening sometimes leads to a decrease in product
cost. This tempts many companies to go green and harvest the market.
Products are produced at lower costs, but sold at a premium to earn extra
profits. However, these companies retreat and show reluctance when a
further move towards sustainability means increased product and
marketing costs for them.
• Compliance Marketing: This type of green marketing strategy is
practiced by companies whose only environmental initiatives are the ones
imposed on them by regulations. These companies comply with
environmental laws just to promote their products in the market. They are
not genuinely keen on green issues. They go in for green production and
marketing only when pressurised to do so, while at the same time
lobbying actively to ensure that no new legislations are enacted in the
future.
• GREEN WASHING
It is the disinformation disseminated by an organization so as to present
an environmentally responsible public image.
“Green washing” is a term derived from the term “whitewashing”
A lot of companies see new environmental awareness as an opportunity
for short-term profits rather than as a market opportunity. Little wonder
they adopt or make false or misleading environmental claims which create
consumer distrust in green marketing efforts.
  EXAMPLE OF DARK SIDE OF
GREEN
Ford Motor Company – One Big Lie
• In 2004 one print ad read, “ Green vehicles.
Cleaner factories. Its the right road for our
company, and were well under way."
• But it only planned on producing 20,000 of
its Hybrid SUVs per year, while continuing
to produce almost 80,000 F-series trucks
per month
 CONCLUSION
Green Marketing can foster Good Social, Environmental and Economic
outcomes.
It offers great list of opportunities available and gives competitive
advantage.
However, Markets still continue to reward unethical behavior (due to
price advantage) in the absence of perfect information and safeguards.
Doors remain open for unethical ‘ green’ Marketing, attracting or
silencing customers and critics respectively based on fraudulent claims.
More safeguard are needed to protect ethical players and to identify
and punish wrong-doers