Green marketing


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Green marketing

  1. 1. Green Marketing Dr.A.S.R.PRASAD MOHANA PRASAD.M INTRODUCTION: 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 or services based on their environmental benefits. Such as product or service may be environmentally friendly in it or produced and/or packaged in an environmentally friendly way. The obvious assumptions of green marketing are that potential consumers will view a product or services “greenness” as the benefit and base their buying decisions accordingly. The not-so-obvious assumption of green marketing is that consumers will be willing to pay more for green products that they would for a lees. Green comparable alternative product on assumptions that in many opinion, has not been proven conclusively. While green marketing is greatly as increasing numbers of customers are willing to back their environmental consciousness with their dollars. It can be dangerous. The public tends to be skeptical of green claims to begin with and companies and seriously damage their brands and their sales if a green claim is discovered to be sales contradicted by a company’s other products or practices. Presenting a product or service as green when it is 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 1
  2. 2. incorporate 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 tack where several meanings intense 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, and ecological marketing. Evolution of green marketing:- The green marketing has evolved over a period of time. According to peattie (2001), the evolution of green marketing has three phases. First phase:- First phase was termed as “ecological” green marketing, and during this all marketing activities were concerned to help environment problems and provide remedies for environmental problems. Second phase:- In the second phase was “environmental” green marketing and the focus shifted on clean technology that involved designing of innovative new products, will take care of pollution and waste issues. Third phase:- The third phase was”sustainable” green marketing. It came in to prominence in the late 1990’s a early 2000. Need for green marketing:- 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 organizational goal. So green marketing is inevitable. There is growing interest among the customers all over the world regarding protection of environment world wide evidence indicates people are concerned about the environment and are changing their behavior. As a result of this, green marketing has emerged which speak for growing market for sustainable and socially responsible products and services. 2
  3. 3. Rules of green marketing:- Leading the competition is not easy especially if you are opting for green marketing. But following there effective rules can help you to lead the way. 1.focus on customer need:- Every successful business first focus on customer need. Customers are bothered about their own benefit and not the profit of your company. So make them understand how they can be benefited by using your product or service. You need to judge whether your customers are educated or they are learning what it means to be green. If they are still in the learning process take small steps to teach them how using your product and service is beneficial for them as well as for the environment. 2. Try to educate your customers:- This is very important because if they understand the need of being environment friendly they will surely by your product or avail your service. Through education the customers can make a change in their decision and can stop using products that are harmful for the environment. They will turn to your company knowing that you can help them do something for the planet even local scale. 3.Green marketing ads are not easy to make:- As people say “truth in advertising is critical “we often tend to think that advertising is all about generating hype regarding a brand. But it is not so. You can do away with hype and promote the truth. The process is slow but steady. You will see the result as soon as the customers understand that what you are showing is not a fake. 4.The best way to convince your customers is to offer proof :- If your product or service do some good to the customer as well as to the environment it is great share the fact with people and what can be a better is other than offering proof. Customer’s testimonial or test result can easily make the care for you. 5.The price of your product or service should meet the expectations of the customers:- 3
  4. 4. High-end customers often don’t mind paying more for a valuable product or service. They will never question your price as far as you keep the price where it is. But if you want to entice the non premium customers then maintaining an affordable price rate is important or else you should add more value to your product so that they don’t hesitate buying it. Objectives of green marketing:-  To identify the customers to fulfill their need.  To create awareness about the ecological process and environmental, sustainable, green marketing process.  To educate the customers.  To avoid the wastage of resources.  To utilize maximum resources in an effective manner a cycle process.  To tell the truth and generating hype regarding a brand. Uses of green marketing:- • Companies that develop new and improved products services with environment inputs in mind give themselves access the new markets, to increase their profit sustainability. • Competitive advantage over the companies which are not concerned for the environment. • Remove the wastage resources, raw materials in the manufactured side. In this case the manufacturer using the wastage materials also. He may produce the effective products and innovative production process. • Companies create competition in the market. In this situation companies are not bothering about the production features and customers value. Why because the customers are not educated but they are understand the situation. At this time it is very useful to the customers oriental. The manufacturer takes responsibility to educate the customers and to create the awareness what happened in the future. 4
  5. 5. • Increasingly, customers are becoming aware of all causes and effect of a polluted environment. They are aware of the damage that polymethane bags have caused to the soil and the drainage system. It is common at see all across India plastic bags litterating streets, drains beaches and agricultural fields. Aware of the negative consequences, to day many customers carries his/her own shopping bag. Also shopkeepers are becoming conscious of this issues and using biodegrading and/or recycled materials for packing/packaging. An aware customer now insists on a green product and packaging material. • Aware customers are joining together to form interest groups which lobby for eco- friendly products and legislation to protect their environment. Companies are today ranked by business magazines like business today on how effective they are on ecology protection. This has also become a parameter of good corporate governance. Green marketing mix:- Every company has its own favorite marketing mix some have 4p’s and some have 7p’s of marketing mix. The 4p’s of green marketing are that of a conventional marketing but the challenge before marketers is to use 4p’s is an innovative manner. Green marketing mix or eco- marketing differs from traditional marketing. Product:- The ecological objectives in planning products are to reduce resource consumption and pollution and to increase conservation of scare resources. Price:- Price is a critical and important factor of green marketing mix. Most customers will only be prepared to pay additional value if there is a perception of extra product value. This value may be improved performance, function, visual appeal or taste. Green marketing should take all these facts in to consider while changing a premium price. In this stage every manufacturer concentrates on the price. The marketer can use activity based costing to identify eco-costs and allocate them to the products responsible for them. Promotion:- 5
  6. 6. It is very key and important activity. They should create the awareness about the eco- logical products or service features. Those that promote a green lifestyle by highlighting a product or service. Ads that present a corporate image of environmental responsibility. Place:- place is also a one of the important attribute in the marketing mix. It is depend on the product available will have a significant impact on the customers. And where the product is available and when its available very few customers will go out of their way to buy green products. Marketing strategies:-  Marketing audit.  Develop a marketing plan outlining strategies with regard to 4p’s.  Implement marketing strategies.  Plan results in evaluation.  Presentation oriented programs conducted in various qualities.  Next phase we can conduct different promotional activities. Some cases:-  APSRTC introduces the CNG buses in cities. Like Vijayawada, Hyderabad etc.  Mc Donald’s restaurants napkins, bags are made of recycled paper.  Kothagudem thermal power station is devising way to utilize coal-ach that has been a major source of air and water pollution.  Barany refinery of IOC is taken steps for restriction 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 6
  7. 7. environmental issues or will not pay a premium for products that are more eco-responsible, think again. You must find an opportunity to enhance your products performance and strengthen your customer’s loyalty and command and higher price sustainable green marketing therefore requires the marketing mix i.e. compatible with the ecology. This is possible through product and delight system design for environment protection. For this purpose understanding the ecology is crucial. It is important for the market to understand that a proper functioning of the eco-system ensures the existence of life on earth. References Chopra, S. Lakshmi (2007), "Turning Over a New Leaf", Indian Management, Vol-64, April-2007 Ottman, J.A. et al, "Avoiding Green Marketing Myopia", Environment, Vol-48, June-2006 industries research/marketing/greenmix.html page=0,1 7