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According to the American Marketing Association, green marketing is the marketing of products
that are presumed to be environmentally safe.[1] Thus green marketing incorporates a broad range of
activities, including product modification, changes to the production process, packaging changes, as well
as modifying advertising. Yet defining green marketing is not a simple task where several meanings
intersect and contradict each other; an example of this will be the existence of varying social,
environmental and retail definitions attached to this term.[1]Other similar terms used are Environmental
Marketing and Ecological Marketing.
The legal implications of marketing claims call for caution. Misleading or overstated claims can lead to
regulatory or civil challenges. In the USA, the Federal Trade Commission provides some guidance on
environmental marketing claims.[2]
Contents
[hide] [ edit]History
• 1 History
The term Green Marketing came into prominence in the late 1980s
• 2 Greenhouse gas reduction and early 1990s.[3] The American Marketing Association (AMA)
market held the first workshop on "Ecological Marketing" in 1975.[4] The
proceedings of this workshop resulted in one of the first books on
• 3 Popularity and effectiveness
green marketing entitled "Ecological Marketing".[5]
○ 3.1 Ongoing debate
The first wave of Green Marketing occurred in the 1980s. Corporate
○ 3.2 Confusion
Social Responsibility (CSR) Reports started with the ice cream
○ 3.3 Statistics
seller Ben & Jerry's where the financial report was supplemented
• 4 Green marketing cases by a greater view on the company's environmental impact. In 1987
a document prepared by the World Commission on Environment
○ 4.1 Philips Light's
and Development defined sustainable development as
"Marathon"
meeting “the needs of the present without compromising the ability
○ 4.2 Car sharing
of future generations to meet their own need”, this became known
services
as the Brundtland Report and was another step towards
○ 4.3 Electronics sector widespread thinking on sustainability in everyday activity. Two
○ 4.4 Introduction of tangible milestones for wave 1 of green marketing came in the form
CNG in Delhi of published books, both of which were called Green Marketing.
They were by Ken Peattie (1992) in the United Kingdom and by
• 5 See also
Jacquelyn Ottman (1993) in the United States of America.[citation
• 6 References needed]
• 7 External links
According to Jacquelyn Ottman, (author of Green Marketing:
Opportunity for Innovation) from an organizational standpoint, environmental considerations should be
integrated into all aspects of marketing — new product development and communications and all points
in between.[6] The holistic nature of green also suggests that besides suppliers and retailers new
stakeholders be enlisted, including educators, members of the community, regulators, and
NGOs. Environmental issues should be balanced with primary customer needs.[citation needed]
The past decade has shown that harnessing consumer power to effect positive environmental
change is far easier said than done. The so-called "green consumer" movements in the U.S. and other
countries have struggled to reach critical mass and to remain in the forefront of shoppers' minds.[7] While
public opinion polls taken since the late 1980s have shown consistently that a significant percentage of
consumers in the U.S. and elsewhere profess a strong willingness to favor environmentally conscious
products and companies, consumers' efforts to do so in real life have remained sketchy at best.[1] One of
green marketing's challenges is the lack of standards or public consensus about what constitutes "green,"
according to Joel Makower, a writer on green marketing.[citation needed] In essence, there is no definition
of "how good is good enough" when it comes to a product or company making green marketing claims.
This lack of consensus—by consumers, marketers, activists, regulators, and influential people—has
slowed the growth of green products, says Makower, because companies are often reluctant to promote
their green attributes, and consumers are often skeptical about claims.[citation needed]
Despite these challenges, green marketing has continued to gain adherents, particularly in light of
growing global concern about climate change. This concern has led more companies to advertise their
commitment to reduce their climate impacts, and the effect this is having on their products and services[8]
[9]
.
While international trade in greenhouse gas[10] reductions holds substantial promise as a source of
new funding for sustainable development, this market can be largely inaccessible to many smaller-
scale projects, remote communities, and least developed localities. To facilitate participation and broaden
the benefits, several barriers must be overcome, including: a lack of market awareness among
stakeholders and prospective participants; specialized, somewhat complicated participation rules; and the
need for simplified participation mechanisms for small projects, without which transaction costs can
overwhelm the financial benefits of participation. If the barriers are adequately addressed, greenhouse
gas trading can play an important role supporting activities that benefit people’s lives and the
environment.[1]
One challenge green marketers -- old and new -- are likely to face as green products and messages
become more common is confusion in the marketplace. "Consumers do not really understand a lot about
these issues, and there's a lot of confusion out there," says Jacquelyn Ottman(founder of J. Ottman
[13]
Consulting and author of "Green Marketing: Opportunity for Innovation.") Marketers sometimes take
advantage of this confusion, and purposely make false or exaggerated "green" claims. Critics refer to this
practice as "green washing".[citation needed]
A very good example of Green Washing can be found in the claims about Bamboo Fibres.It is equaoted
and sounds similar to Cotton fibre/Organic cotton fibres . In the case of bamboo it is pulped and mixed
with caustics and other 5 different chemicals and yarn is made out of this certainly not similar to Organic
cotton. Similarly Csurina ,uclyptus and other trees even vegitalbes used in pulp ping and yarn making this
is not organic bamboo firbre in the sense the Organic cotton is used . This is punishable offence on the
part of traders and others .Ignorance of masses of this technical knowledge is well known . The
marketters create confusion taking advantage of this lack of knowledge of masses. Another example is
Eco-friendly dyed garments and Low-impact dyed garments is sheer green wash . 50 years ago all Denim
cotton jeans were organic and all Indigo dye was natural plant-extracted. Now 100% of the Denim Jeans
pants in U.S. is opposite to this.
[edit]Statistics
According to market researcher Mintel, about 12% of the U.S. population can be identified as True
Greens, consumers who seek out and regularly buy so-called green products. Another 68%[13][14] can be
classified as Light Greens, consumers who buy green sometimes. "What chief marketing officers are
always looking for is touch points with consumers, and this is just a big, big, big touch point that's not
being served," says Mintel Research Director David Lockwood. "All the corporate executives that we talk
to are extremely convinced that being able to make some sort of strong case about the environment is
going to work down to their bottom line."[13]
[edit]Electronics sector
The consumer electronics sector provides room for using green marketing to attract new customers.
One example of this is HP's promise to cut its global energy use 20 percent by the year 2010.[20] To
accomplish this reduction below 2005 levels, The Hewlett-Packard Company announced plans to
deliver energy-efficient products and services and institute energy-efficient operating practices in its
facilities worldwide.
[ edit]See also
Marketing
Green hosting
Green politics
[ edit]References
1. ^ a b c d e "Green Trade & Development" (.html). Green Markets International, Inc. Retrieved January 2008.
4. ^ Curtin, Emily (2006-09-14). "Lower East Side Green Market". Retrieved January 2008.
5. ^ Karl E., Henion; Thomas C. Kinnear (January 1976). "Ecological Marketing". Ecological Marketing. American
7. ^ Dodds, John (August 11, 2006). "Geek Marketing 101". Retrieved January 2008.
8. ^ Mendleson, Nicola; Michael Jay Polonsky (1995). "Using strategic alliances to develop credible green
9. ^ McDaniel, Stephen W.; David H. Rylander (1993). "Strategic green marketing". Journal of Consumer
10. ^ Thomas L. Friedman (April 15, 2007), "The Power of Green", The New York Times
11. ^ Ottman, Jacquelyn (May 2002). "THE REAL NEWS ABOUT GREEN CONSUMING". Retrieved January 2008.
12. ^ "'Green' Sales Pitch Isn't Moving Many Products", Wall Street Journal, March 6, 2007
13. ^ a b c d Hanas, Jim (June 8, 2007), "Environmental Awareness Has Not Only Tipped in the Media -- It's Hit
Corporate Boardrooms as Well" (PDF), Advertising Age
20. ^ "HP to Reduce its Global Energy Use 20 Percent by 2010". Retrieved January 2008.
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Definition:
What is green marketing? 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 and/or packaged in an environmentally friendly way.
The obvious assumption of green marketing is that potential consumers will view a product or service's
"greenness" as a benefit and base their buying decision accordingly. The not-so-obvious assumption of
green marketing is that consumers will be willing to pay more for green products than they would for a
less-green comparable alternative product - an assumption that, in my opinion, has not been proven
conclusively.
While green marketing is growing greatly as increasing numbers of consumers are willing to back their
environmental consciousnesses with their dollars, it can be dangerous. The public tends to be skeptical
of green claims to begin with and companies can seriously damage their brands and their sales if a
green claim is discovered to be false or contradicted by a company's other products or practices.
Presenting a product or service as green when it's not is called greenwashing.
Green marketing can be a very powerful marketing strategy though when it's done right. See Three
Keys to Successful Green Marketing.
Examples:
Chad’s green marketing campaign bombed because he made the mistake of packaging his
environmentally friendly product in styrofoam.
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Introduction
Yes, green marketing is a golden goose. As per Mr. J. Polonsky,
Human Resource green marketing can be defined as, "All activities designed to
generate and facilitate any exchange intended to satisfy human needs
or wants such that satisfying of these needs and wants occur with
System minimal detrimental input on the national environment."
Green marketing involves developing and promoting products and
Operations services that satisfy customer's want and need for Quality,
Performance, Affordable Pricing and Convenience without having a
detrimental input on the environment.
Knowledge Seminar Evolution of Green Marketing
The green marketing has evolved over a period of time. According to
MBA Forums Peattie (2001), the evolution of green marketing has three phases.
First phase was termed as "Ecological" green marketing, and during
Search this period all marketing activities were concerned to help environment
problems and provide remedies for environmental problems. Second
Join e-Communities phase was "Environmental" green marketing and the focus shifted
on clean technology that involved designing of innovative new
Be a CoolAssociate products, which take care of pollution and waste issues. Third phase
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waste as well as to achieve the organization's objective. So green
marketing is inevitable.
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regarding protection of environment. Worldwide evidence indicates
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All of these definitions enlarge the traditional objective of business to maximize profits
by including some notion of maintaining the integrity of the natural environment.
Operationally, green marketing seeks to satisfy the needs and wants of individual
consumers while simultaneously seeking to improve environmental quality of life for
society as a whole. Environmental concerns thus act as constraints on business
operations, echoing a passage from the Great Law of the Iroquois Confederacy: "In our
every deliberation, we must consider the impact of our decisions on the next seven
generations."
THE GREENING OF BUSINESS
A number of factors have caused business firms to behave more responsibly towards the
natural environment. Perhaps foremost among these is the possibility of capitalizing on
opportunities from the sale of environmental services and/or "earth-friendly" products.
Environmental awareness has increased dramatically, particularly since the organized
environmental movement emerged in the late 1960s. Issues ranging from global
warming to animal rights to species preservation to the protection of wetlands are now
prominent in the media and in the minds of consumers. "Green" consumers have thus
arisen with preferences for products made from recycled materials or products whose
use entails reduced environmental impact. Often such products command premium
prices, and therefore the task of marketers has become all the more crucial.
As landfills fill up and public opposition mounts against opening new ones (the NIMBY,
or "Not In My Back Yard," syndrome), waste treatment and disposal costs rise. Storage,
transport, and disposal of hazardous wastes is quickly becoming unaffordable for many
firms, stimulating a search for less-toxic alternative processes. Furthermore, liability
and litigation costs for environmental damages are skyrocketing with little sign of
abatement. At the time of the first Earth Day in April 1970, there were approximately
2,000 federal, state, and local environmental regulations. In the late 1990s there were
approximately 100,000 such rules. By some estimates, U.S. businesses have spent well
over a trillion dollars since the 1970s on environmental law compliance.
Faced with a growing environmental consciousness, many business firms are adopting a
pro-environment stance in hopes of improving credibility with the public.
Unfortunately, some companies have been a bit overzealous with their environmental
claims, prompting cries of "greenwashing" from critics. Another impetus causing
business to embrace environmental concerns is to attract better employees and/or
improve working conditions. Many young people entering the workforce today exhibit
greater social concerns than those of ten years ago, and many wish to join firms
perceived to be making a positive contribution to society.
Environmental regulations continue to increase in both number and complexity. Some
firms have identified opportunities in this changing legal environment and are making
changes to drive regulation for purposes of competitive advantage. Because many
regulations require use of the "best available technology," firms actively involved in
developing and implementing new technologies may achieve the benefits of monopoly
status for a short while.
• is relatively efficient in its use of resources during manufacture, use, and disposal;
Other favorable attributes from the green point of view are the incorporation of recycled
materials into the product and the product's own recyclability.
A great deal of work in the determination of these factors is concerned with a product's
environmental impact at various stages of its useful life. Life cycle analysis (LCA)
and product line analysis (PLA) studies measure the environmental impact of products
over their entire life cycle, that is, from the "cradle to the grave." Such studies track
resource use, energy requirements, and waste generation in order to provide
comparative benchmarks enabling manufacturers and consumers to select products
involving the least impact upon the natural environment. Though useful, LCA studies
have been criticized for their subjectivity in setting analysis boundaries and for
difficulties in establishing comparable impacts across environmental media, e.g., "How
many tons of carbon dioxide emissions equal the release of one picogram of dioxin?"
Information from these studies and additional consumer research is being used to
develop new products and to redesign existing products and services in order to reduce
environmental impact. The U.S. Office of Technology Assessment (OTA, a congressional
research department that was closed in 1994) advocated green design: "a design process
in which environmental attributes are treated as design objectives, rather than as
constraints … green design incorporates environmental objectives with minimum loss to
product performance, useful life or functionality." "Design for the environment," "design
for durability," and "design for disassembly" have become popular phrases at companies
seeking to prevent waste and manage material flows more efficiently. Products and
packaging are being redesigned to use less materials or to be easily disassembled so
high-value components can be recycled or refurbished more readily. Of course,
numerous trade-offs must be made weighing health and safety attributes and consumer
desires for convenience against packaging, energy use, and recycling requirements.
GREENER PRICING
A central concern of many environmentalists is that product prices do not reflect total
environmental costs. Waste disposal costs, for instance, are frequently incurred on a
fixed-fee basis, regardless of how much waste is actually generated. Similarly, the
national accounting systems of most countries do not incorporate the costs of
environmental degradation or depletion. After-the-fact expenditures on pollution
control and remediation are included, albeit as income. Greener pricing decisions are
based on the premise that goods and services associated with greater environmental
damage should cost more.
Research conducted by the Roper Organization in 1990 identified five different groups
of environmental consumers with varying degrees of commitment to purchasing
environmental products. The premium on a product's price tag people were willing to
pay for perceived environmental benefits varied widely from about 3 percent for the
least-committed group to approximately 20 percent for individuals espousing the
highest level of commitment. Across the board, consumers indicated a willingness to pay
an average premium of approximately 6.6 percent for products with positive
environmental attributes. Attitudes do not always translate into action, of course, but
environmental attributes do seem to be "tiebreakers" for customers faced with a choice
between two products offering similar benefits and prices.
2. Environmental claims should make clear whether they apply to the product, the package,
or a component of either. Claims need to be qualified with regard to minor, incidental
components of the product or package.
4. A claim comparing the environmental attributes of one product with those of another
product should make the basis for the comparison sufficiently clear and should be
substantiated.
ECO-LABELING.
Environmental certification or labeling programs attempt to increase consumer
awareness and knowledge of environmental issues. Marketers use eco-labels to convey
information about a product's environmental benefits and to differentiate among
competing products. Eco-labels may identify a product's contents, e.g. the triangular
arrangement of arrows on recycled paper and plastic products, or highlight other
benefits, e.g., reduced water usage or increased energy efficiency. At least 25 countries
maintain eco-seal programs, usually whereby seals are awarded for specific
environmental attributes. Germany's "Blue Angel" program is the oldest and most
successful eco-labeling program. Introduced in 1977 by the federal minister and
ministers for environmental protection of the various German states, it now appears on
more than 4,000 different products. The Blue Angel is awarded on the basis of
comparisons with similar products, and is designed to guide consumers in their
purchasing decisions. For instance, a product may have particularly low pollutant or
noise emissions, entail less wastes in its production, or be designed for easier recycling
than its competitors. The Blue Angel has proven to be a useful selling tool in Germany's
ecologically conscious society. A few other countries have established eco-labels, though
none has yet had as great an impact as the Blue Angel.
In the United States, two private firms, Scientific Certification Systems and Green Seal,
have developed guidelines to identify environmentally preferable products. Scientific
Certification Systems, a private testing concern, awards a "Green Cross" for products
meeting very specific criteria, e.g. X percent recycled content, less than Y percent
pesticide residues, and so on. Green Seal, a nonprofit organization formed in 1990, is
engaged in more ambitious efforts using life-cycle analysis to identify a product's impact
on the environment at all stages of its life. The group has demarcated 84 categories of
products (and according standards) that qualify for certification.
ECO-SPONSORING.
Another avenue for companies to promote their ecological concern is to affiliate
themselves with groups or projects engaged in environmental improvements. In its
simplest form, firms contribute funds directly to an environmental organization to
further the organization's objectives. Another approach is to "adopt" a particular
environmental cause, e.g. a community recycling program, demonstrating the
company's willingness to put its money and its reputation on the line. Sponsoring
educational programs, wildlife refuges, and clean-up efforts communicates a firm's
commitment to finding environmental solutions. Partnerships with environmental
organizations can open lines of communication and provide new perspectives on
"business as usual."
The EPA, for example, sponsors the Energy Star and Green Lights Buildings programs,
in which partners in industry agree to upgrade their facilities over time to reflect
environmental concerns (usually energy efficiency and waste minimization). The EPA,
in turn, agrees to provide technical support and labeling, which contributes to a green
marketing program.
Faced with the undesirable option of accepting used packaging from consumers,
German manufacturers banded together in 1990 to create the "Dual System"—an
alternative, country-wide waste management system that guaranteed the collection and
recycling of various packaging materials. Administered by the Duales System
Deutschland (DSD), a consortium of retailers, distributors, manufacturers, waste
haulers, and recycling firms, the system requires manufacturers to pay a small fee for
the right to display a green dot (griinerPunkt) on their products, indicating that the
packaging is eligible for recycling by the DSD.
Green marketing strategies are also reducing inventory and production costs.
Standardization and identification of product parts and packaging materials benefits the
environment by reducing complexity and improving efficiency. Substituting electronic
or computer controls for analog devices improves quality and reduces waste.
STRATEGY AND TACTICS
Green marketing as a subdiscipline is only a few decades old, and much remains to be
learned about consumer preferences, product substitutions, and environmental
tradeoffs. Nonetheless, a few principles useful in developing a green marketing strategy
have emerged.
Perhaps most obviously, the more recognizable the "green credentials," the greater the
chances of a successful marketing campaign. A green product that properly addresses a
well-known environmental issue of prominent concern, or that displays a well-
established and respected eco-seal, will be more likely to win favor among green
consumers.
The so-called principle of cooperation advises marketers to interact more closely with
communities and governments in addressing environmental problems and
communicating their respective expectations and concerns. Failure to work together on
a voluntary basis may lead to additional regulations and requirements. For example, the
Chemical Manufacturers' Association, a trade organization representing approximately
90 percent of basic industrial chemical production in the United States, requires its
members to subscribe to the principles of Responsible Care, a program designed to
improve communication about environmental, health, and safety issues between
workers and communities. The European Union's Eco-Audit program, also
administered on a voluntary basis, shows promise in creating greater opportunities for
communication and cooperation between industry, communities, and governments.
Numerous product success stories are associated with the implementation of these
strategies. Low-phosphate detergents, CFC-free refrigerators, high-efficiency light bulbs,
low-emissions gasoline, lighter-weight packaging, powder paint sprays, and high-quality
clothing made from recycled soda bottles are among many examples which might be
mentioned. Partnerships between environmental groups and business organizations,
such as the Environmental Defense Fund's work with the McDonald's restaurant chain,
have increased communication and fostered better understanding of each group's
objectives.
CONCLUSION
Green marketing is based on the premise that businesses have a responsibility to satisfy
human needs and desires while preserving the integrity of the natural environment.
That this latter concern has been ignored throughout most of recorded human history
does not mean it will be unimportant in the future. Indeed, there are significant
indications that environmental issues will grow in importance over the coming years
and will require imaginative and innovative redesign and reengineering of existing
marketing efforts on the part of many businesses. Solutions to environmental problems
can be characterized into roughly three categories: ethical, legal, and business
(economic and technological). Long-term sustainability of the planet is likely to require
some rather distinct changes in the ethical behavior of its human population. Barring a
crisis, these changes will probably be a long time coming. Legislation is a useful tool for
effecting social change; it has a tremendous advantage over moral persuasion in terms
of speed and efficacy of implementation, although its results are not always as intended.
In the short term, business solutions—the enlightened self-interest of commercial
enterprises finding new ways to incorporate technology and carry on exchanges with
greater concern for heretofore unpriced environmental goods and services—offer
particular promise. Green marketing and the promotion of responsible consumption are
part of that solution.
[ Mark A. White ]
FURTHER READING:
Fuller, Donald A. Sustainable Marketing: Mancigerial-Ecological Issues. London: Sage
Publications, 1999.
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green marketing
Marketing Dictionary:
green marketing
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Promotion of environmentally safe or beneficial products. Green marketing began in Europe in the
early 1980s when certain products were found to be harmful to the earth's atmosphere. Consequently
new types of products were created, called "green" products, that would cause less damage to the
environment. The movement quickly caught on in the United States and has been growing steadily
ever since. The development of ecologically safer products, recyclable and biodegradable packaging,
energy-efficient operations, and better pollution controls are all aspects of green marketing. Green
marketing has produced advances such as packages using recycled paper, phosphate-free detergents,
refill containers for cleaning products, and bottles using less plastic.
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Other Issues
Support a universal system of price, fuel mix and emissions disclosure.
To encourage a market in "green," consumers must have information that
allows them to comparison shop among all suppliers on the basis of the costs
and the environmental characteristics of their resource portfolio. This
necessarily requires disclosure of price, fuel mix, and emissions on a
consistent basis—not just for those claiming "greenness," but for all suppliers.
Without uniform disclosure requirements, the burden will fall on green
marketers to investigate their competitors' portfolios and educate consumers
about them—a difficult and expensive task. Even then, consumers may be
mistrustful of green claims. Any green marketer with a worthy product has an
interest in disclosure requirements because it will give legitimacy and value to
its product. In a truly competitive market with full disclosure, we can expect
competitors to "bid up" the amount of renewables to attract environmentally-
concerned consumers. Disclosure mechanisms should be designed to
minimize public and private administrative costs, such as a "tradable tag"
approach.
Support public policies that advance sustainable energy goals.
Encouraging individuals to take responsibility for the environmental impacts
caused by their own personal electricity consumption is an important element
of moving to a more sustainable electricity supply. Green marketing is also an
important part of advancing renewable energy in the marketplace. However,
green marketing it is not an adequate substitute for public policies that
correct the market failures that will hinder renewables and cleaner fossil
resources in the market and that set the electric industry on a sustainable
course. Moreover, in order for consumers to have the choice of purchasing
renewable energy, we must have strong renewable energy industries. Given
the high entry barriers in the electric industry, we must ensure that a
meaningful base of renewables is built into the system. The green marketer
who is truly interested in significantly advancing renewables will:
• support transmission and system operation rules that treat intermittent
renewable resources fairly,
• support strong renewable energy and environmental policies in the states and
Congress,
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Americans are quick to identify polluting companies as "socially irresponsible" and make their purchasing
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/Programs
y Edwards, director of corporate and social responsibility at the Direct Marketing Association, describes the top P
ds in "going green."
est of the April 2010 issue of CRM magazine please click here C
(
•
Integrating green initiatives into every aspect of the
organization:Companies are trying to link the corporate br
efforts in social responsibility, Edwards says—and environme
stewardship can affect the bottom line as it improves custom
relationships. At United Parcel Service (UPS), for example, n
systems enabled a “No Left Turn” rule to eliminate costly lef
drivers’ routes. According to The New York Times, UPS spok
Heather Robinson reported that the company shortened deli
million miles, saving 3 million gallons of gas and reducing carbon emissions by 31,000 metric tons. “They’re tying their brand image to efficiency
ental savings,” Edwards says.
ecolabels and ecologos on products or marketing materials: Perhaps the most well-known ecolabel is the recycling symbol composed of c
eated in 1970 by Gary Anderson, who won a graphics and design competition hosted by the Container Corporation of America. Since then, a si
f labels have popped up, some of which have contributed to an industry malfeasance known as “greenwashing.” (See the sidebar, “The 7 Sins o
hing.”) Other widely recognized symbols include the USDA Organic, which signifies the use of organic ingredients in food; Forest Stewardship C
wood and paper products produced in methods that advocate responsible forestry; and Energy Star identifies home, building and construction,
s that are energy efficient.
nt to Successfully Deploy At-Home Call Center Agents. This white paper overviews essential best practices for successfully deploying an a
ution.Click here to download.
pting these labels, Edwards warns marketers to be careful—while it can help inform consumers, oversaturation of labels in the market has resu
For the most part, consumers today only recognize a handful of labels. Therefore, marketers must identify whether the logo: a) is credible; b)
ul and recognizable by the intended audience; and c) fits with the organization’s message.
ng customers in green marketing: Companies are looking to motivate consumers by encouraging them to participate and engage in the cam
ith the product. Marketers that send out direct mail pieces can put links directing marketers to participate in green programs online, or do some
ask customers to recycle the mail after reading. Edwards has seen largely positive feedback from marketers who’ve attempted to bring custom
number of those doing so is growing but still pretty small, Edwards admits. Only about 100 marketers have enlisted in the DMA’s “Recycle Pleas
wide public education campaign where DMA members are asked to display a “Recycle Please” logo in catalogues and direct mail pieces.
and respecting customer choices and preferences: Segmentation is a practice that goes back to Marketing 101. Companies that are lever
data and respecting their preferences will inevitably have fewer unnecessary mailings. (For more on this, see this month’s Real ROI case study
October 2007, the DMA launched its Commitment to Consumer Choice policy, which among other stipulations, requires all DMA members to pr
nd prospective customers and donors with notice of an opportunity to modify or opt out of commercial communications. By giving consumers th
s are not only acting environmentally responsible, but also reinforcing their corporate responsibilities.
ng a lifecycle approach: Companies are selecting green materials and products for their marketing materials and adopting a lifecycle approac
ole of the campaign, thereby foreseeing areas of potential waste. Edwards sees more marketers adopting recycled and FSC-approved papers an
and soy-based inks, smaller formats and trim sizes, and a reduction in paper use overall. Aromatherapy and skincare treatment provider Decle
ramme for the Endorsement of Forest Certification and FSC-certified paper, despite the fact that it’s 3 percent to 7 percent more costly. This ye
stopped printing its logo on gold foil and changed it to a deep, eggplant color, in order to ensure that its paper products are 100 percent recycla
the company only maintains relationships with FSC-certified printers and has actually stopped doing business with a printer that wasn’t—until
k six months later newly certified.
g to the online space: Digital marketing was projected to reach $25.6 billion in 2009, and reach $55 billion, 21 percent of all marketing spend
to Forrester Research’s United States Interactive Marketing Spend report. Channels included in this report were mobile marketing, social media
, display advertising, and search marketing. More and more companies are requiring that employees remind email recipients to think about the
ent before printing.
nth, CRM magazine covers the customer relationship management industry and beyond. To subscribe, please
/www.destinationCRM.com/subscribe/.
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There is a degree of confusion over the term “green marketing.” Some believe that
it refers solely to the promotion or advertising of products with environmental
characteristics such as “recyclable,” “organic,” or “environmentally friendly.” While
these terms are widely used by “green” companies, green marketing is a much
broader concept, one that can be applied to consumer goods, industrial goods and
some services. Green marketing incorporates a variety of activities, including
modifications to products, changes to the production and distribution processes,
packaging changes, and modifications to marketing communications.
What to Do
Minimize the Impact on the Environment
• They believe green marketing is an opportunity that can be used to meet their
corporate objectives.
• They believe they have a moral obligation to be more socially responsible.
• Government regulations are forcing them to become more environmentally
responsible.
• Competitors’ environmental activities are pressuring them to change their
marketing activities.
• Cost factors associated with waste disposal, or reductions in material usage are
forcing them to modify their behavior.
Demonstrate Social Responsibility
Many companies realize that they are part of the wider community and must
behave in an environmentally responsible way. They set themselves environmental
objectives as well as corporate and profit objectives. In some cases, concern for
environmental issues has become integrated into the company’s culture—a fact
which is recognized by customers and other influencers. Companies who
manufacture products can make a further contribution to environmental
improvements by encouraging their suppliers to behave in a more environmentally-
responsible way.
In some market sectors, companies who have undertaken green initiatives have
increased market share as a result. Competitors, recognizing the value of the
“green factor,” may introduce their own versions. A good example is the cosmetics
industry in which organizations like The Body Shop successfully pioneered an
ethical approach that was later followed by the majority of their competitors. In
cases like this, the actions of one company have caused an entire industry to
modify its environmental behavior.
If you intend to practice green marketing, it is essential that your activities and
your communications do not mislead consumers or industry, and do not breach any
of the regulations or laws dealing with environmental marketing. Any green
marketing claims should:
Whatever the product or service, it is vital to ensure that products meet or exceed
the quality expectations of customers and are thoroughly tested.
Any new product development program should take into account environmental
issues. The objective should be to develop products that can be produced,
distributed, used, and recycled with minimal environmental impact. Product
development should focus on these issues:
• How will the product be produced? You need to consider the materials, energy, and
labor used to produce the product to assess whether the production process has
any detrimental social or environmental impact.
• How will the product be used? You need to consider whether the product can be
used for any unethical purpose. You also need to consider the resources the product
will consume during its lifetime, balancing performance requirements against
sustainability.
• How long will the product last? Here you need to balance your need for future
product sales or upgrades against concerns about built-in obsolescence. You also
need to consider how customers can dispose of the product at the end of its life.
Set Realistic Prices
Distribution is a key issue in attracting the right customers for green products and
behaving in an environmentally responsible way. Experience indicates that
customers will not go out of their way to buy green products just for the sake of it;
where possible, products should be distributed through mainstream outlets so that
they are not just available to a small niche market of green consumers. If you
market your products across geographical boundaries, distribution becomes an
environmentally sensitive issue. Look carefully at the physical distribution of your
products to find where you could minimize the impact on the environment of your
logistics operations. This might mean reducing the number of miles driven by
keeping more regional inventory or by using fuel-efficient vehicles for distribution.
What to Avoid
You Look for Green Competitive Advantage Without
Responsibility
Web Sites:
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Home Page > Marketing > GREEN MARKETING – OPPORTUNITIES & CHALLENGES
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BY
"Progress is possible, No one can stop it, but obstacle is there, we have to face it."
- AmartyaSen
Introduction
Yes, green marketing is a golden goose. As per Mr. J. Polonsky, green marketing can be defined
as, "All activities designed to generate and facilitate any exchange intended to satisfy
human needs or wants such that satisfying of these needs and wants occur with minimal
detrimental input on the national environment."
Green marketing involves developing and promoting products and services that satisfy customers
want and need for Quality, Performance, Affordable Pricing and Convenience without having a
detrimental input on the environment.
Meaning
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 it or produced
and/or packaged in an environmentally friendly way.
The obvious assumption of green marketing is that potential consumers will view a product or
service's "greenness" as a benefit and base their buying decision accordingly. The not-so-obvious
assumption of green marketing is that consumers will be willing to pay more for green products than
they would for a less-green comparable alternative product - an assumption that, in my opinion, has
not been proven conclusively.
While green marketing is growing greatly as increasing numbers of consumers are willing to back their
environmental consciousnesses with their dollars, it can be dangerous. The public tends to be skeptical
of green claims to begin with and companies can seriously damage their brands and their sales if a
green claim is discovered to be false or contradicted by a company's other products or practices.
Presenting a product or service as green when it's not is called green washing.
Definition
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. Yet defining green marketing is not a simple task where several
meanings intersect and contradict each other; an example of this will be the existence of varying
social, environmental and retail definitions attached to this term. Other similar terms used
are Environmental Marketing andEcologicalMarketing.
The legal implications of marketing claims call for caution. Misleading or overstated claims can lead to
regulatory or civil challenges. In the USA, the Federal Trade Commission provides some guidance on
environmental marketing claims.
Show potential customers that you follow green business practices and you could reap more green on
your bottom line. Green Marketing isn't just a catchphrase; it's a marketing strategy that can help you
get more customers and make more money. But only if you do it right.
For green marketing to be effective, you have to do three things; be genuine, educate your
customers, and give them the opportunity to participate.
1) Being genuine means that a) that you are actually doing what you claim to be doing in your
green marketing campaign and b) that the rest of your business policies are consistent with whatever
you are doing that's environmentally friendly. Both these conditions have to be met
for your business to establish the kind of environmental credentials that will allow a green marketing
campaign to succeed.
2) Educating your customers isn't just a matter of letting people know you're doing whatever
you're doing to protect the environment, but also a matter of letting them know why it matters.
Otherwise, for a significant portion of your target market, it's a case of "So what?" and your green
marketing campaign goes nowhere.
3) Giving your customers an opportunity to participate means personalizing the benefits of your
environmentally friendly actions, normally through letting the customer take part in positive
environmental action.
The green marketing has evolved over a period of time. According to Peattie (2001), the evolution of
green marketing has three phases. First phase was termed as "Ecological" green marketing, and
during this period all marketing activities were concerned to help environment problems and provide
remedies for environmental problems. Second phase was"Environmental" green marketing and the
focus shifted on clean technology that involved designing of innovative new products, which take care
of pollution and waste issues. Third phase was "Sustainable" green marketing. It came into
prominence in the late 1990s and early 2000.
As resources are limited and human wants are unlimited, it is important for the marketers to utilize
the resources efficiently without waste as well as to achieve the organization's objective. So green
marketing is inevitable.
There is growing interest among the consumers all over the world regarding protection of
environment. Worldwide evidence indicates people are concerned about the environment and are
changing their behavior. As a result of this, green marketing has emerged which speaks for growing
market for sustainable and socially responsible products and services.
Companies that develop new and improved products and services with environment inputs in mind
give themselves access to new markets, increase their profit sustainability, and enjoy a competitive
advantage over the companies which are not concerned for the environment.
There are basically five reasons for which a marketer should go for the adoption of green marketing.
They are -
Every company has its own favorite marketing mix. Some have 4 P's and some have 7 P's of
marketing mix. The 4 P's of green marketing are that of a conventional marketing but the challenge
before marketers is to use 4 P's in an innovative manner.
Product
The ecological objectives in planning products are to reduce resource consumption and pollution and
to increase conservation of scarce resources (Keller man, 1978).
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.
Promotion
ü Ads that address a relationship between a product/service and the biophysical environment
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.
Strategies
ü Majority of the people are not aware of green products and their uses
ü Majority of the consumers are not willing to pay a premium for green products
Some Cases
ü Coca-Cola pumped syrup directly from tank instead of plastic which saved 68 million pound/year.
ü Badarpur Thermal Power station of NTPC in Delhi is devising ways to utilize coal-ash that has
been a major source of air and water pollution.
ü Barauni refinery of IOC is taken steps for restricting air and water pollutants.
Conclusion
Green marketing should not neglect the economic aspect of marketing. Marketers need to understand
the implications of green marketing. If you think customers are not concerned about environmental
issues or will not pay a premium for products that are more eco-responsible, think again. You must
find an opportunity to enhance you product's performance and strengthen your customer's loyalty and
command a higher price. Green marketing is still in its infancy and a lot of research is to be done on
green marketing to fully explore its potential.
References:
1. Chopra, S. Lakshmi (2007), "Turning Over a New Leaf", Indian Management, Vol-64, April-2007
2. Ottman, J.A. et al, "Avoiding Green Marketing Myopia", Environment, Vol-48, June-2006
3. www.greenmarketing.net/stratergic.html
4. www.epa.qld.gov.au/sustainable_ industries
(ArticlesBase SC #1146893)
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