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A                       Seminar Report                                       ON                “LIBERALIZATION”     Submit...
PREFACEThe removal of or reduction in the trade practices that thwart free flow of goods and servicesfrom one nation to an...
ACKNOWLEDGEMENTI take this opportunity to express my acknowledgement and a deep sense of attitude for renderingvaluable as...
Serial No.          Name of the Topic                             Page No.Chapter-1           Introduction                ...
products that are presumed to be environmentally safe. Thus green marketing incorporates abroad range of activities, inclu...
―Green Marketing is the marketing of products that are presumed to be environmentally safe.Thus green marketing incorporat...
Alma T. Mintu and Hector R. Lozada define green marketing as "the application of marketingtools to facilitate exchanges th...
The term Green Marketing came into prominence in the late 1980s and early 1990s. TheAmerican Marketing Association (AMA) h...
It is really scary to read these pieces of information as reported in the Times recently: "Airpollution damage to people, ...
speaker and strategist on clean technology and green marketing), green marketing faces a lot ofchallenges because of lack ...
MARKETING MIX OF GREEN MARKETINGWhen companies come up with new innovations like eco friendly products, they can access ne...
D. PROMOTIONGreen promotion involves configuring the tools of promotion, such as advertising, marketingmaterials, signage,...
REASONS FOR USING GREEN MARKETING IN FIRMSWhen looking through the literature, there are several suggested reasons for fir...
SOCIAL RESPONSIBILITY & GREEN MARKETINGMany firms are beginning to realize that they are members of the wider community an...
COMPETITIVE PRESSUREAnother major force in the environmental marketing area has been firms desire to maintain theircompeti...
6. Water treatment technology, which is too costly7. Majority of the people are not aware of green products and their uses...
Adopt new technology/process or modify existing technology/process so as to reduceenvironmental impact.Establish a managem...
Popularity and effectivenessOngoing debateThe popularity of such marketing approach and its effectiveness is hotly debated...
StatisticsAccording to market researcher Mintel, about 12% of the U.S. population can be identified asTrue Greens, consume...
The five LOHAS segments as defined by NMI include:   1. Lohas: Active environmental stewards dedicated to personal and pla...
economic efficiency and overall effectiveness of the processes. In addition, the purpose was toquantify the environmental ...
Biofuel ProgramBiofuel cropsBiodiesel StovesOil FilteringEducationFood CropsExample for LCALCA is used for example in the ...
work can save thousands of dollars annually by joining one of the many services springing up,including ZipCar (East Coast)...
McDonald’s Counters Criticism With Green Marketing EffortFast food giant McDonald‘s is trying to show consumers its ―green...
Various anti-littering marketing campaigns have been implemented in Portugal, Italy,  Switzerland, the UK, Australia, Germ...
CONCLUSIONGreen marketing is based on the premise that businesses have a responsibility to satisfy humanneeds and desires ...
BIBLIOGRAPHYBooks    Kothari C.R., Research Methodology, New Age International Publishers ―Revised   Second Edition‖   2)....
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green marketing

  1. 1. A Seminar Report ON “LIBERALIZATION” Submitted in partial fulfillment of the requirement for the award of degree of “MASTER OF BUSINESS ADMINISTRATION” Session (2011-2013)Submitted to Submitted ByMrs Monika Sharma Sahil(H.O.D MBA Dept.) M.B.A 1ST SEM. Roll No. – 01211009 DOON VALLEY INSTITUTE OF ENGINEERING AND TECHNOLOGY, KARNAL Approved by AICTE, Affiliated to KURUKSHETRA UNIVERSITY, KURUKSHETRA 1
  2. 2. PREFACEThe removal of or reduction in the trade practices that thwart free flow of goods and servicesfrom one nation to another. It includes dismantling of tariff (such as duties, surcharges, andexport subsidies) as well as nontariff barriers (such as licensing regulations, quotas, and arbitrarystandards).liberalization refers to a relaxation of previous government restrictions, usually inareas of social or economic policy.Liberalization means relaxation of various government restrictions in the areas of social andeconomic policies. Liberalizing trade policy by the government that is removal of tariff,subsidies and other restrictions on the flow of goods and services between countries is alsotermed as liberalization. Liberalization is the result of New Industrial Policy which abolished the"License system".All industries except six major industries were liberalized. As a result industries grew rapidlyand therefore liberalization also means deregulation and delicensing of industries.Autonomy at large has resulted because of liberalization. Liberalization means to follow liberaleconomic policy, accepted by the world. It has revolutionized the entire business world and hasprovided highly competitive opportunities for all countries. Liberalization has opened newbusiness opportunities abroad and increased foreign direct investment.Liberalized trade policy resulted in the free flow of goods from and within the country. Anumber of multinational company started operating world wide including India. New market forvarious goods came into existence and resulted not only in urban but also in rural development.It became very easy to obtain loans from banks for business expansion. "Foreign Collaboration"is the latest outcome of liberalization. 2
  3. 3. ACKNOWLEDGEMENTI take this opportunity to express my acknowledgement and a deep sense of attitude for renderingvaluable assistance and guidance to me by the following personalities for successful competitionof my seminar report. A special thanks to respected Director G. S. SHARMA for being asource of inspiration. My sincere thanks to Mrs. MONIKA SHARMA (H.O.D MBA Deptt.)for her salient cooperation and help through her sound judgment and without her sound judgmentand without her advice the completion of this report would not have been possible. A very sincere thanks to Mrs MONIKA SHARMA (Lect. Of MBA) for suggesting methe topic of my report. She has been a source of encouragement, guidance and advice throughoutthe source of my report preparation, I am also thankful to all faculty members of MBA Deptt.For their valuable entire guidance. Again I would like to acknowledge my sincere thanks to MrsMonika for providing me an opportunity to work under their valuable time. (SAHIL GANDHI) TABLE OF CONTENTS 3
  4. 4. Serial No. Name of the Topic Page No.Chapter-1 Introduction 1.1 Meaning 1.2Chapter-2 2.1 2.2 2.3Chapter-3 3.1 3.2 3.3 3.4Chapter-4 4.1 4.2 4.3 4.4Chapter-5Chapter-6 Conclusion Bibliography1.1 IntroductionAccording to the American Marketing Association, green marketing is the marketing of 4
  5. 5. products that are presumed to be environmentally safe. Thus green marketing incorporates abroad range of activities, including product modification, changes to the production process,packaging changes, as well as modifying advertising. Yet defining green marketing is not asimple task where several meanings intersect and contradict each other; an example of this willbe the existence of varying social, environmental and retail definitions attached to this term.Other similar terms used are Environmental Marketing and Ecological Marketing. Thus "GreenMarketing" refers to holistic marketing concept wherein the production, marketing consumptionan disposal of products and services happen in a manner that is less detrimental to theenvironment with growing awareness about the implications of global warming, non-biodegradable solid waste, harmful impact of pollutants etc., both marketers and consumers arebecoming increasingly sensitive to the need for switch in to green products and services. Whilethe shift to "green" may appear to be expensive in the short term, it will definitely prove to beindispensable and advantageous, cost-wise too, in the long run.According to the American Marketing Association, The marketing of products that are presumed to be environmentally safe.(Socially marketing definition): The development and marketing of products designed tominimize negative effects on the physical environment or to improve its quality.(Environment definition): The effort by organization to produce, promote, package and reclaimproducts in a manner that is sensitive or responsive to ecological concerns.Green marketing emphasizes environmental stewardship. Alma T. Mintu and Hector R. Lozadadefine green marketing as "the application of marketing tools to facilitate exchanges that satisfyorganizational and individual goals in such a way that the preservation, protection andconservation of the physical environment is upheld." Walter Codington defines environmentalmarketing as "marketing activities that recognize environmental stewardship as a businessdevelopment responsibility and business growth responsibility." Others have focused more onstrategic dimensions in defining green marketing; for example, Martin Charter defines it as "aholistic and responsible strategic management process that identifies, anticipates, satisfies andfulfills stakeholder needs for a reasonable reward that does not adversely affect human or naturalenvironmental well-being."1.2 MEANING 5
  6. 6. ―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. Yetdefining green marketing is not a simple task where several meanings intersect and contradicteach other, an example of this will be the existence of varying social, environmental and retaildefinitions attached to this term. Other similar terms used are Environmental Marketing andEcological Marketing.DEFINATION 6
  7. 7. Alma T. Mintu and Hector R. Lozada define green marketing as "the application of marketingtools to facilitate exchanges that satisfy organizational and individual goals in such a way thatthe preservation, protection and conservation of the physical environment is upheld." WalterCodington defines environmental marketing as "marketing activities that recognizeenvironmental stewardship as a business development responsibility and business growthresponsibility." Others have focused more on strategic dimensions in defining green marketing;for example, Martin Charter defines it as "a holistic and responsible strategic managementprocess that identifies, anticipates, satisfies and fulfills stakeholder needs for a reasonable rewardthat does not adversely affect human or natural environmental well-being."The definition also includes the protection of natural environment by attempting tominimize the detrimental impact, this exchange has on the environment.This second point is very important for human consumption by its very nature isdestructive to the natural environment. To be more accurate products making greenclaims should state they are ― less environmentally harmful‖ rather than ― environmentalfriendly.‖ Thus green marketing should look at minimizing environmental harm, notnecessarily eliminating it.The industrial houses has recognised that the entire system of production andconsumption determines environmental quality. Environmental impacts are a function ofthe way services are provided and the way goods are produced, delivered, used anddisposed off. Production and consumption are considered together because gains made bycontrolling, reducing or minimizing pollution from production can be soon overshadowed by theimpactsfrom concurrent increases in the scale of demand for those services goods from growingconsumer base.Green Marketing in India 7
  8. 8. The term Green Marketing came into prominence in the late 1980s and early 1990s. TheAmerican Marketing Association (AMA) held the first workshop on "Ecological Marketing" in1975. The proceedings of this workshop resulted in one of the first books on green marketingentitled "Ecological Marketing".The Corporate Social Responsibility (CSR) Reports started with the ice cream seller Ben &Jerrys where the financial report was supplemented by a greater view on the companysenvironmental impact. In 1987 a document prepared by the World Commission on Environmentand Development defined sustainable development as meeting ―the needs of the present withoutcompromising the ability of future generations to meet their own need‖, this became known asthe Brundtland Report and was another step towards widespread thinking on sustainability ineveryday activity. Two tangible milestones for wave 1 of green marketing came in the form ofpublished books, both of which were called Green Marketing. They were by Ken Peattie (1992)in the United Kingdom and by Jacquelyn Ottman (1993) in the United States of America.According to Jacquelyn Ottman, (author of "The New Rules of Green Marketing: Strategies,Tools, and Inspiration for Sustainable Branding" (Greenleaf Publishing and Berrett-KoehlerPublishers, February 2011) from an organizational standpoint, environmental considerationsshould be integrated into all aspects of marketing — new product development andcommunications and all points in between. The holistic nature of green also suggests that besidessuppliers and retailers new stakeholders be enlisted, including educators, members of thecommunity, regulators, and NGOs.Environmental issues should be balanced with primarycustomer needs.The past decade has shown that harnessing consumer power to effect positive environmentalchange is far easier said than done. The so-called "green consumer" movements in the U.S. andother countries have struggled to reach critical mass and to remain in the forefront of shoppersminds. While public opinion polls taken since the late 1980s have shown consistently that asignificant percentage of consumers in the U.S. and elsewhere profess a strong willingness tofavor environmentally conscious products and companies, consumers efforts to do so in real lifehave remained sketchy at best. One of green marketings challenges is the lack of standards orpublic consensus about what constitutes "green," according to Joel Makower, a writer on greenmarketing. In essence, there is no definition of "how good is good enough" when it comes to aproduct 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, andconsumers are often skeptical about claims.Despite these challenges, green marketing has continued to gain adherents, particularly in lightof growing global concern about climate change. This concern has led more companies toadvertise their commitment to reduce their climate impacts, and the effect this is having on theirproducts and services.Importance of Green Marketing 8
  9. 9. It is really scary to read these pieces of information as reported in the Times recently: "Airpollution damage to people, crops and wildlife in he US totals tens of billions of dollars eachyear". "More than 12 other studies in the US, Brazil Europe , Mexico , South Korea and Taiwanhave established links between air pollutants and low birth weight premature birth still birth andinfant death".As resources are limited and human wants are unlimited, it is important for the marketers toutilize the resources efficiently without waste as well as to achieve the organizations objective.So green marketing is inevitable.There is growing interest among the consumers all over the world regarding protection ofenvironment. Worldwide evidence indicates people are concerned about the environment and arechanging their behavior. As a result of this, green marketing has emerged which speaks forgrowing market for sustainable and socially responsible products and services.Thus the growing awareness among the consumers all over the world regarding protection of theenvironment in which they live, People do want to bequeath a clean earth to their offspring.Various studies by environmentalists indicate that people are concerned about the environmentand are changing their behavior pattern so as to be less hostile towards it. Now we see that mostof the consumers, both individual and industrial, are becoming more concerned aboutenvironment-friendly products. Most of 0them feel that environment-friendly products are safe touse. As a result, green marketing has emerged, which aims at marketing sustainable and socially-responsible products and services. Now is the era of recyclable, non-toxic and environment-friendly goods. This has become the new mantra for marketers to satisfy the needs of consumersand earn better profits.Green marketing is the process of developing products and services and promoting them tosatisfy the customers who prefer products of good quality, performance andconvenience at affordable cost, which at the same time do not have a detrimental impact on theenvironment. It includes a broad range of activities like product modification, changing theproduction process, modified advertising, change in packaging, etc., aimed at reducing thedetrimental impact of products and their consumption and disposal on the environment.Companies all over the world are striving to reduce the impact of products and services on theclimate and other environmental parameters. Marketers are taking the cue and are going green.Green marketing was given prominence in the late 1980s and 1990s after the proceedings of thefirst workshop on Ecological marketing held in Austin, Texas (US), in 1975. Several books ongreen marketing began to be published thereafter. According to the Joel makeover (a writer, 9
  10. 10. speaker and strategist on clean technology and green marketing), green marketing faces a lot ofchallenges because of lack of standards and public consensus to what constitutes "Green". Thegreen marketing has evolved over a period of time. According to Peattie (2001), the evolution ofgreen marketing has three phases. First phase was termed as "Ecological" green marketing, andduring this period all marketing activities were concerned to help environment problems andprovide remedies for environmental problems. Second phase was "Environmental" greenmarketing and the focus shifted on clean technology that involved designing of innovative newproducts, which take care of pollution and waste issues. Third phase was "Sustainable" greenmarketing. It came into prominence in the late 1990s and early 2000.Green marketing is a vital constituent of the holistic marketing concept. It is particularlyapplicable to businesses that are directly dependent on the physical environment; for example,industries like fishing, processed foods, tourism and adventure sports. Changes in the physicalenvironment may pose a threat to such industries. Many global players in diverse businesses arenow successfully implementing green marketing practices. 10
  11. 11. MARKETING MIX OF GREEN MARKETINGWhen companies come up with new innovations like eco friendly products, they can access newmarkets, enhance their market shares, and increase profits. Just as we have 4Ps product prices,place and promotion in marketing, we have 4ps in green marketing too, but they are a bitdifferent. They are buttressed by three additional Ps, namely people, planet and profits.A. PRODUCT:The products have to be developed depending on the needs of the customers who preferenvironment friendly products. Products can be made from recycled materials or from usedgoods. Efficient products not only save water, energy and money, but also reduce harmful effectson the environment. Green chemistry forms the growing focus of product development. Themarketers role in product management includes providingproduct designers with market-driven trends and customer requests for green product attributessuch as energy saving, organic, green chemicals, local sourcing, etc., For example, Nike is thefirst among the shoe companies to market itself as green. It is marketing its Air Jordan shoes asenvironment-friendly, as it has significantly reduced the usage of harmful glue adhesives. It hasdesigned this variety of shoes to emphasize that it has reduced wastage and used environment-friendly materials.B. PRICEGreen pricing takes into consideration the people, planet and profit in a way that takes care of thehealth of employees and communities and ensures efficient productivity. Value can be added toit by changing its appearance, functionality and through customization, etc. Wal Mart unveiledits first recyclable cloth shopping bag. IKEA started charging consumers when they opted forplastic bags and encouraged people to shop using its "Big Blue Bag".C. PLACEGreen place is about managing logistics to cut down on transportation emissions, thereby ineffect aiming at reducing the carbon footprint. For example, instead of marketing an importedmango juice in India it can be licensed for local production. This avoids shipping of the productfrom far away, thus reducing shipping cost and more importantly, the consequent carbonemission by the ships and other modes of transport. 11
  12. 12. D. PROMOTIONGreen promotion involves configuring the tools of promotion, such as advertising, marketingmaterials, signage, white papers, web sites, videos and presentations by keeping people, planetand profits in mind. British petroleum (BP) displays gas station which its sunflower motif andboasts of putting money into solar power. Indian Tobacco Company has introducedenvironmental-friendly papers and boards, which are free of elemental chlorine. Toyota is tryingto push gas/electric hybrid technology into much of its product line. It is also making the singlelargest R&D investment in the every-elusive hydrogen car and promoting itself as the first eco-friendly car company. International business machines Corporation (IBM) has revealed aportfolio of green retail store technologies and services to help retailers improve energyefficiency in their IT operations. The center piece of this portfolio is the IBM SurePOS 700, apoint-of-salesystem that, according to IBM, reduces power consumption by 36% or more. We even see thenames of retail outlets like "Reliance Fresh", Fresh@Namdhari Fresh and Desi, which whileselling fresh vegetables and fruits, transmit an innate communication of green marketing.Green marketer can attract customers on the basis of performance, money savings, health andconvenience, or just plain environmental friendliness, so as to target a wide range of greenconsumersConsumer awareness can be created by spreading the message among consumers about thebenefits of environmental-friendly products. Positing of profiles related to green marketing onsocial networks creates awareness within and across online peergroups. Marketing can also directly target the consumers through advertisements for productsuch as energy saving compact fluorescent lamps, the battery “powered Reva car, etc. 12
  13. 13. REASONS FOR USING GREEN MARKETING IN FIRMSWhen looking through the literature, there are several suggested reasons for firms increased useof Green Marketing. Five possible reasons cited Organizations perceive environmentalmarketing to be an opportunity that can be used to achieve its objectives 1. Organizations perceive environmental marketing to be an opportunity that can be used to achieve its objectives 2. Organizations believe they have a moral obligation to be more socially responsible 3. Governmental bodies are forcing firms to become more responsible 4. Competitors environmental activities pressure firms to change their environmental marketing activities 5. Cost factors associated with waste disposal, or reductions in material usage forces firms to modify their behavior.OPPORTUNITIES All types of consumers, both individual and industrial are becoming more concerned and awareabout the natural environment. In a 1992 study of 16 countries, more than 50% of consumers ineach country, other than Singapore, indicated they were concerned about the environment. A1994 study in Australia found that 84.6% of the sample believed all individuals had aresponsibility to care for the environment. A further 80% of this sample indicated that they hadmodified their behavior, including their purchasing behavior, due to environmental reasons. Asdemands change, many firms see these changes as an opportunity to be exploited. It can beassumed that firms marketing goods with environmental characteristics will have a competitiveadvantage over firms marketing non-environmentally responsible alternatives. There arenumerous examples of firms who have strived to become more environmentally responsible, inan attempt to better satisfy their consumer need. McDonalds replaced its clam shell packagingwith waxed paper because of increased consumer concern relating to polystyrene production andOzone depletion. Xerox introduced a "high quality" recycled photocopier paper in an attempt tosatisfy the demands of firms for less environmentally harmful products. This is not to imply thatall firms who have undertaken environmental marketing activities actually improve theirbehavior. In some cases firms have misled consumers in an attempt to gain market share. In othercases firms have jumped on the green bandwagon without considering the accuracy of theirbehavior, their claims, or the effectiveness of their products. This lack of consideration of thetrue "greenness" of activities may result in firms making false or misleading green marketingclaims. 13
  14. 14. SOCIAL RESPONSIBILITY & GREEN MARKETINGMany firms are beginning to realize that they are members of the wider community and thereforemust behave in an environmentally responsible fashion. This translates into firms that believethey must achieve environmental objectives as well as profit related objectives. This results inenvironmental issues being integrated into the firms corporate culture. Firms in this situation cantake two perspectives; (1) they can use the fact that they are environmentally responsible as amarketing tool; or (2) they can become responsible without promoting this fact. There areexamples of firms adopting both strategies. Organizations like the Body Shop heavily promotethe fact that they are environmentally responsible. While this behavior is a competitiveadvantage, the firm was established specifically to offer consumers environmentally responsiblealternatives to conventional cosmetic products. This philosophy is directly tied to the overallcorporate culture, rather than simply being a competitive tool. An example of a firm that does notpromote its environmental initiatives is Coca-Cola. They have invested large sums of money invarious recycling activities, as well as having modified their packaging to minimize itsenvironmental impact. While being concerned about the environment, Coke has not used thisconcern as a marketing tool. Thus many consumers may not realize that Coke is a veryenvironmentally committed organization. Another firm who is very environmentally responsiblebut does not promote this fact, at least outside the organization, is Walt Disney World (WDW).WDW has an extensive waste management program and infrastructure in place, yet thesefacilities are not highlighted in their general tourist promotional activitiesGOVERNMENTALPRESSUREAs with all marketing related activities, governments want to "protect" consumers and society;this protection has significant green marketing implications. Governmental regulations relatingto environmental marketing are designed to protect consumers in several ways, 1) reduceproduction of harmful goods or by-products; 2) modify consumer and industrys use and/orconsumption of harmful goods; or 3) ensure that all types of consumers have the ability toevaluate the environmental composition of goods.Governments establish regulations designed to control the amount of hazardous wastes producedby firms. Many by-products of production are controlled through the issuing of variousenvironmental licenses, thus modifying organizational behavior. In some cases governments tryto "induce" final consumers to become more responsible. For example, some governments haveintroduced voluntary curb-side recycling programs, making it easier for consumers to actresponsibly. In other cases governments tax individuals who act in an irresponsible fashion. Forexample in Australia there is a higher gas tax associated with leaded petrol. 14
  15. 15. COMPETITIVE PRESSUREAnother major force in the environmental marketing area has been firms desire to maintain theircompetitive position. In many cases firms observe competitors promoting their environmentalbehaviors and attempt to emulate this behavior. In some instances this competitive pressure hascaused an entire industry to modify and thus reduce its detrimental environmental behavior. Forexample, it could be argued that Xeroxs "Revive 100% Recycled paper" was introduced a fewyears ago in an attempt to address the introduction of recycled photocopier paper by othermanufacturers. In another example when one tuna manufacture stopped using driftnets the othersfollowed suit.COST OR PROFIT ISSUESFirms may also use green marketing in an attempt to address cost or profit related issues.Disposing of environmentally harmful by-products, such as polychlorinated biphenyl (PCB)contaminated oilare becoming increasingly costly and in some cases difficult. Therefore firms that can reduceharmful wastes may incur substantial cost savings. When attempting to minimize waste, firmsare often forced to re-examine their production processes. In these cases they often develop moreeffective production processes that not only reduce waste, but reduce the need for some rawmaterials. This serves as a double cost savings, since both waste and raw material are reduced..DARK SIDE OF GREEN MARKETING:The Green Movement is still in its infancy and is just starting to build trust among people nowconcerned about the environment. These are people who, in many cases, are now willing to paymore for a green product. Should that product not be green or live up to its promises, many newgreen consumers will lose faith in the movement as a whole.However, green marketing poses huge dangers for marketers if they get it wrong:1. Most customers choose to satisfy their personal needs before caring for the environment.2. Overemphasizing greenness rather than customer needs can prove devastating for a product.3. Many customers keep away from products labeled ―green‖ because they see such labeling as amarketing gimmick,and they may lose trust in an organization that suddenly claims to be green.4. Green products require renewable and recyclable material, which is costly.5. Requires a technology, which requires huge investment in R & D 15
  16. 16. 6. Water treatment technology, which is too costly7. Majority of the people are not aware of green products and their uses8. Majority of the consumers are not willing to pay a premium for green productsBENEFITS OF GREEN MARKETING Todays consumers are becoming more and more conscious about the environment and arealso becoming socially responsible. Therefore, more companies are responsible to consumersaspirations for environmentally less damaging or neutral products. Many companies want tohave an early-mover advantage as they have to eventually move towards becoming green. Someof the advantages of green marketing are,It ensures sustained long-term growth along with profitability.It saves money in the long run, thought initially the cost is more.It helps companies market their products and services keeping the environment aspects in mind.It helps in accessing the new markets and enjoying competitive advantage.Most of the employees also feel proud and responsible to be working for an environmentallyresponsible company.PROBLEMS OF GREEN MARKETINGMany organizations want to turn green, as an increasing number of consumers ant to associatethemselves with environmental-friendly products. Alongside, one also witnesses confusionamong the consumers regarding the products. In particular, one often finds distrust regarding thecredibility of green products. Therefore, to ensure consumer confidence, marketers of greenproducts need to be much more transparent, and refrain from breaching any law or standardsrelating to products or business practices.PATHS TO GREENNESSGreen marketing involves focusing on promoting the consumption of green products. Therefore,it becomes the responsibility of the companies to adopt creativity and insight, and be committedto the development of environment-friendly products. This will help the society in the long run.Companies which embark on green marketing should adopt the following principles in their pathtowards "greenness." 16
  17. 17. Adopt new technology/process or modify existing technology/process so as to reduceenvironmental impact.Establish a management and control system that will lead to the adherence of stringentenvironmental safety norms.Using more environment-friendly raw materials at the production stage itself.Explore possibilities of recycling of the used products so that it can be used to offer similar orother benefits with less wastage.Marketing StrategiesThe marketing strategies for green marketing include: -Marketing Audit (including internal and external situation analysis)Develop a marketing plan outlining strategies with regard to 4 PsImplement marketing strategiesPlan results evaluation 17
  18. 18. Popularity and effectivenessOngoing debateThe popularity of such marketing approach and its effectiveness is hotly debated. Supportersclaim that environmental appeals are actually growing in number–the Energy Star label, forexample, now appears on 11,000 different companies models in 38 product categories,from washing machines and light bulbs to skyscrapers and homes. However, despite the growthin the number of green products, green marketing is on the decline as the primary sales pitch forproducts. (NEEDS CITATION) On the other hand, Roper‘s Green Gauge shows that a highpercentage of consumers (42%)feel that environmental products don‘t work as well asconventional ones. This is an unfortunate legacy from the 1970s when shower heads sputteredand natural detergents left clothes dingy. Given the choice, all but the greenest of customers willreach for synthetic detergents over the premium-priced, proverbial "Happy Planet" any day,including Earth Day. New reports, however show a growing trend towards green products.ConfusionOne challenge green marketers -- old and new -- are likely to face as green products andmessages become more common is confusion in the marketplace. "Consumers do not reallyunderstand a lot about these issues, and theres a lot of confusion out there," says JacquelynOttman(founder of J. Ottman Consulting and author of "Green Marketing: Opportunity forInnovation.") Marketers sometimes take advantage of this confusion, and purposely make falseor exaggerated "green" claims. Critics refer to this practice as "green washing".GreenwashingThe term ―greenwashing‖ refers to all industries that adopt outwardly green acts with anunderlying purpose to increase profits. The primary objective of greenwashing is to provideconsumers with the feeling that the organization is taking the necessary steps to responsiblymanage its ecological footprint. In reality, the company may be doing very little that isenvironmentally beneficial The term greenwashing was first used by environmentalist JayWesterveld when objecting to hoteliers practice of placing notices in hotel rooms which askedtheir quests to reuse towels to ―save the environment‖. Westerveld noted that there was little elseto suggest that the hoteliers were interested in reducing their environmental impacts, and thattheir interest in washing fewer towels seemed to be motivated by a concern to save costs ratherthan the environment. Since then greenwashing has become a central feature of debates aboutmarketing communications and sustainability, with ―awards‖ for greenwashing established andnumerous campaigns, law and advices developed in an attempt to reduce or curb it. 18
  19. 19. StatisticsAccording to market researcher Mintel, about 12% of the U.S. population can be identified asTrue Greens, consumers who seek out and regularly buy so-called green products. Another 68%can be classified as Light Greens, consumers who buy green sometimes. "What chief marketingofficers are always looking for is touch points with consumers, and this is just a big, big, bigtouch point thats not being served," says Mintel Research Director David Lockwood. "All thecorporate executives that we talk to are extremely convinced that being able to make some sortof strong case about the environment is going to work down to their bottom line."Target marketIn 1989, 67 percent of Americans stated that they were willing to pay 5-10 percentmore for ecologically compatible products. By 1991, environmentally consciousindividuals were willing to pay between 15-20 percent more for green products. By1993, Myburgh-Louw and O´Shaughnessy conducted a mail survey of femaleconsumers in the UK to investigate their perceptions of environmental claims onthe packaging of clothes detergents. They found that 79 percent of their sampleagreed to pay up to 40 percent more for a product which was identical in everyrespect to their own brand and which had been proven to be green. An importantchallenge facing marketers is to identify which consumers are willing to pay morefor environmentally friendly products. It is apparent that an enhanced knowledgeof the profile of this segment of consumers would be extremely useful. Efforts toidentify environmentally friendly consumers can be traced back to the early 1970s.as well as Anderson and Cunningham, were pioneers in studying the profile ofsocially responsible consumers. Overall, their combined results portray a highlysocially conscious person as female, pre-middle aged, with a high level ofeducation (finished high school) and above average socioeconomic status.LOHASLOHAS stands for Lifestyles of Health and Sustainability, and describes an integrated, rapidlygrowing market for goods and services that appeal to consumers whose sense of environmentaland social responsibility influences their purchase decisions. The Natural Marketing Institute‘s(short: NMI) estimates the US LOHAS consumer market of products and services to be USD209 billion – sold across all consumer segments. 19
  20. 20. The five LOHAS segments as defined by NMI include: 1. Lohas: Active environmental stewards dedicated to personal and planetary health. These are influence others heavily. 2. Naturalites: Motivated primarily by personal health considerations. They tend to purchase more LOHAS consumable products vs. durable items. 3. Drifters: While their intentions may be good, DRIFTERS follow trends when it is easy and affordable. They are currently quite engaged in green purchasing behaviours. 4. Conventionals: Pragmatists who embrace LOHAS behaviour when they believe they can make a difference, but are primarily focused on being very careful with their resources and doing the ‗right‘ thing because it will save them money. 5. Unconcerned: Either unaware or unconcerned about the environment and societal issues mainly because they do not have the time or the means – these consumers are largely focused on getting by.Life Cycle AssessmentDuring the late 1980s also new instruments such as life cycle assessment (short: LCA) wereinvented which allowed ecological considerations to be introduced into marketing decisions.The life cycle assessment model seeks to identify the main types of environmental impactthroughout the life cycle of a product. LCA was developed according to ISO 14040. The maingoal of the LCA is to define the energy and environmental profile of the finished products. Thereasons to use LCA arose from the need to have a precise process accounting and to highlightpotential improvements that could be used in order to increase the environmental, energy and 20
  21. 21. economic efficiency and overall effectiveness of the processes. In addition, the purpose was toquantify the environmental advantages deriving from the use of recycled raw material.Bio-fuels in green marketingBiofuel is defined as solid, liquid or gaseous fuel obtained from relatively recently lifelessbiological material and is different from fossil fuels, which are derived from long dead biologicalmaterial.There are 2 common strategies of producing liquid and gaseous agrofuels.1. Grow crops high in sugar (sugar cane, sugar beet]) or starch (corn/maize), and then use yeastfermentation to produce ethyl alcohol (ethanol).2. Grow plants that contain high amounts of vegetable oil, such as oil palm, soybean, algae,jatropha, or pongamia pinnata. When these oils are heated, they can be burned directly in a dieselengine, or they can be chemically processed to produce fuels such as biodiesel.Generation of Bio-fuels1st Generation Bio-fuelsFirst generation biofuels are edible (both by humans and livestock) seeds or grains that arefermented or pressed to create oil which is used as biofuel.2/06/2009 Copyright WinfieldCorporation 20092nd Generation Bio-fuelsSecond generation biofuels are created from non-food crops like stalks of wheat and corn andnon-edible plants like Miscanthus, Castor Oil plants, and trees like Jatropha.Benefits:1. Does not divert food away from humans and livestock2. Can significantly reduce disposal problems (orange peels, sawdust).3. Planting trees for biofuel use reverses deforestation.4. Inhibits soil erosion3rd Generation Bio-fuelsAlgae fuel, also called oilgae or third generation biofuel, is a biofuel from algae. It produces 30times more energy per acre than land crops such as soybeans and algae is easy to grow, howeveralgae oil is hard to extract. 21
  22. 22. Biofuel ProgramBiofuel cropsBiodiesel StovesOil FilteringEducationFood CropsExample for LCALCA is used for example in the building sector. Buildings today account for the 40% of theworld‘s energy use. The resulting carbon emissions are substantially higher than those of thetransportation sector. New buildings using more energy than necessary are being built every day,and millions of todays inefficient buildings will remain standing until at least 2050. It‘s thereforenecessary to start reducing energy use in new and existing buildings in order to reduce theplanets energy-related carbon footprint. Growing interest, space, and attention in the architecturesector are directed to environmental issues according to the principles of green building. Mineral,vegetable, or animal materials such as perlite, vermiculite, rock wool, glass wool, cork, plantfibers (cotton, flax, hemp, coconut), wood fiber, cellulose, and sheeps wool can be used for theproduction of insulation panels.Examples of Green MarketingPhillipss "Marathon" CFL lightbulbPhilips Lightings first shot at marketing a standalone compact fluorescent light (CFL) bulb wasEarth Light, at $15 each versus 75 cents for incandescent bulbs. The product had difficultyclimbing out of its deep green niche. The company re-launched the product as "Marathon,"underscoring its new "super long life" positioning and promise of saving $26 in energy costsover its five-year lifetime.[34] Finally, with the U.S. EPAs Energy Star label to add credibility aswell as new sensitivity to rising utility costs and electricity shortages, sales climbed 12 percent inan otherwise flat market.Car sharing servicesCar-sharing services address the longer-term solutions to consumer needs for better fuel savingsand fewer traffic tie-ups and parking nightmares, to complement the environmental benefit ofmore open space and reduction of greenhouse gases. They may be thought of as a "time-sharing"system for cars. Consumers who drive less than 7,500 miles a year and do not need a car for 22
  23. 23. work can save thousands of dollars annually by joining one of the many services springing up,including ZipCar (East Coast), I-GO Car (Chicago),[36] Flex Car (Washington State), and HourCar (Twin Cities).Electronics sectorThe consumer electronics sector provides room for using green marketing to attract newcustomers. One example of this is HPs promise to cut its global energy use 20 percent by theyear 2010. To accomplish this reduction below 2005 levels, The Hewlett-PackardCompany announced plans to deliver energy-efficient products and services and institute energy-efficient operating practices in its facilities worldwide.Products & ServicesNow companies are offering more eco-friendly alternatives for their customers. Recycledproducts for example, are one of the most popular alternatives that can benefit the environment.These benefits include sustainable forestry, clean air, energy efficiency, water conservation, anda healthy office. One example, is the E-commerce business and office supplycompany Shoplet which offers a web tool that allows you to replace similar items in yourshopping cart with greener products.Introduction of CNG in DelhiNew Delhi, capital of India, was being polluted at a very fast pace until Supreme Court ofIndia forced a change to alternative fuels. In 2002, a directive was issued to completelyadopt CNG in all public transport systems to curb pollution.Green Marketing DifficultiesWhile public opinion polls taken since the late 1980s have shown consistently that a significantpercentage of consumers in the U.S and elsewhere profess a strong willingness to favorenvironmentally conscious products and companies, consumers efforts to do so in real life haveremained sketchy at best.1. Perception that eco-friendly products are not as good as other products.2. Overuse, everyone is suddenly trying to position their company as green and that theirproducts are eco-friendly.3. Lack of standards / public agreement. What is green?4. "Green washing" 23
  24. 24. McDonald’s Counters Criticism With Green Marketing EffortFast food giant McDonald‘s is trying to show consumers its ―greener‖ side with a newinstitutional marketing effort, ―Global Best of Green.‖The full report details about 80 McDonald‘s initiatives around the world, such as: About 80 percent of packaging used by McDonald‘s Europe comes from renewable resources. In Canada, switching from bleached white napkins to plain brown has saved $1.3 million annually, while reducing energy, wood and water use. U.S. restaurant locations recycle about 13,000 pounds of used cooking oil per year, on average. Using a fryer that requires less oil allows restaurants to cook the same product with 40 percent less oil, saving 4 percent in energy over other fryer models. U.S. locations completing an energy survey identify savings of $3,000-6,000. McDonald‘s USA recognizes ―Energy All-Stars,‖ or store managers that have provided examples for others. In France, 10 restaurants that have committed themselves to an interactive software, EcoProgress, have reduced electricity consumption 11 percent over a few months. McDonald‘s Mexico is testing solar hot water heaters in four locaitons to reduce use of liquified petroleum gas, with a correspondnig 2.7 percent decrease in monthly LP gas consumption and a 19 percent drop in carbon emissions. McDonald‘s Sweden is using CO2 detectors in 24 restaurants to adjust ventilation systems to the amount of customers in the store, reducing electricity use 15 percent annually. McDonald‘s Europe is serving salads in cardboard bowls instead of plastic dishes, and wooden coffee stirrers instead of plastic. In the U.S., decreasing the weight of polyproylene cold cups has decreased costs by 6 percent and saved nearly 1,000 tons of resin. 24
  25. 25. Various anti-littering marketing campaigns have been implemented in Portugal, Italy, Switzerland, the UK, Australia, Germany and other nations. A variety of different waste and recycling bins have been tested in certain countries. A German model achieved a 90 percent recycling rate. Restaurants in Switzerland feature a separate recepticle for organic waste, which is sold to Kompogas, which ferments the waste into biogas.Despite its efforts, McDonald‘s has been criticized for the waste it creates around the world.In the UK, McDonald‘s is responsible for 29 percent of all takeaway litter, according to TheMail.Greenpeace has alleged that the Brazilian soya that McDonald‘s feeds its chickens isresponsible, in part, for the destruction of rain forest lands, according to Wikipedia.Eric Schlosser‘s 2001 book Fast Food Nation claimed that McDonald‘s uses political influenceto put profits before people‘s health and the social conditions of its workers.Back in 1990, London Greenpeace, which bears no connection to the international pressuregroup Greenpeace, distributed leaflets entitled ―What‘s wrong with McDonald‘s?‖, criticizingits environmental record, among other things. McDonald‘s sued the group for libel, resulting inone of the longest-running civil cases in British history. 25
  26. 26. CONCLUSIONGreen marketing is based on the premise that businesses have a responsibility to satisfy humanneeds and desires while preserving the integrity of the natural environment. Indeed, there aresignificant indications that environmental issues will grow in importance over the coming yearsand will require imaginative and innovative redesign and reengineering of existing marketingefforts on the part of many businesses. clever marketer is one who not only convinces theconsumer, but also involves the consumer in marketing his product. Green marketing should notbe considered as just one more approach to marketing, but has to be pursued with much greatervigor, as it has an environmental and social dimension to it. With the threat of global warminglooming large, it is extremely important that green marketing becomes the norm rather than anexception or just a fad. Recycling of paper, metals, plastics, etc., in a safe and environmentallyharmless manner should become much more systematized and universal. It has to become thegeneral norm to use energy-efficient lamps and other electrical goods. Marketers also have theresponsibility to make the consumers understand the need for and benefits of green products ascompared to non-green ones. In green marketing, consumers are willing to pay more to maintaina cleaner and greener environment. Finally, consumers, industrial buyers and suppliers need topressurize effects on minimize the negative effects on the environment-friendly. Greenmarketing assumes even more importance and relevance in developing countries like India. 26
  27. 27. BIBLIOGRAPHYBooks Kothari C.R., Research Methodology, New Age International Publishers ―Revised Second Edition‖ 2). Raju B.N. Human Resource Management, Discovery Publishing House ― First Edition‖. 3). Chhabra T.N. Human Resource Management, Dhanpat Rai & Co.―Fifth Revised Edition‖.Sites 4). http://www.google.com/ 5). http://www.humancapital.com/ 6). http://www.OpenLearningWorld.com/ 7) http://www.wikepedia.com/ 27

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