8 gm mix2segment_green marketing guide by selvarasu a mutharasu
Green Marketing Guide A Research Perspective By Selvarasu a. Mutharasu Professor Annamalai University
Green Marketing Guide— Research perspectives— Educating Green Marketing— Consulting Green Marketing
Green Marketing [GM]— A strategic marketing technique— To gain maximum business performance using — Green products — Green brands — Green consumers — Greening supply chain — Demand-supply integration
Stakeholder of GM— green ranking— green brand survey— green confidence index— green score— green brand reputation score— green marketing educational programme and— green certification professional
India : Top 10 Green brands 1. Amul 2. Dabur 3. Infosys 4. Taj hotels 5. Britannia 6. Suzlon 7. Hindustan Unilever 8. Wipro 9. Maruti 10. Godrej Consumer Products
Take away from GM— Voluntary and mandatory labels has become country specific— A syllabus for green marketing education— A multi-pronged research proposal— Newness in green marketing practices— Green hosting— Green politics— Energy stars
Green Market Size in US for LOHAS PERSONAL HEALTH GREEN BUILDING ECO TOURISM$117 billion $100 billion $42 billionNatural, organic products, Home certification Eco-tourism travelNutritional products Energy Star appliances Eco-adventure travelIntegrative health care Sustainable flooringDietary supplements Renewable energy systemsMind body spirit products Wood alternativesALTERNATIVE NATURAL LIFESTYLES ALTERNATIVETRANSPORTATION $10 billion ENERGY$20 billion Indoor & outdoor furnishings $1 billionHybrid vehicles Organic cleaning supplies Renewable energyBiodiesel fuel Compact fluorescent lights creditsCar sharing programs Social change philanthropy Green pricing Apparel
Raw is Green Raw Bhagalpur silk, linen and cotton-linen blends; the golden yarns were made of silk wastes that he further hand-knitted for a spectacular effect.
All that glitters green is not greenGreenwashing Greenness
Black is Green— Black is internal— Green is External— Green Marketing is Planetary Marketing— Geology has been renamed as Earth Science— Green Marketing can also be named as ‘Earth Marketing’ or ‘Planetary Marketing’
Research Perspective Effect of Octagonal Green Marketing Mix on LOHAS and LOVOS Consumer Segment Model
GM - Research— Awareness is more among consumers— Mandate of business is known to people— Is part of Sustainable marketing practices— Consumer decides to reward green products— Green residential development— Knowingly Greenwashing [exploitation] starts— Green Certification [Minimum 70% Green]— Green Scores & Green Brand Scores
Who is a Green Consumer?— A target customer of greenness— whose consumption patterns focused on the preservation of resources;— Willingness to limit — the amount of resources consumed; — materials that endanger the environment, and — avoid using products that endanger the health of consumers By Peattie, 2001
Lifestyle and Greenness— Lifestyle of consumer has been oriented to their — Plan — Work — Fashion — Recreation and — price By [Wen-Lan Wang, 2012]
Green product’s advertising — perceived quality — consumer’s willingness to pay — information seeking and — suspicion Dimensions reported to understand consumer’s perception towards decisiveness By [Saurabh Battacharya, 2011].
Green Confidence Index (GCI)— A monthly measure of — Responsibility — Information and — Purchasing — in American marketplace to — reveal tracking & flagging of market place perception, — future changing intentions of consumers and — evolving green economy [Greenbiz.com, visited January 2013].
Green Brands and Green Halos— with poor green practices but strong green halos that colour peoples’ perception and vice-versa [Newsweek, visited on January 21, 2013]
Green products call for eco-friendly— where cost of production and price goes up— affordability of consumers— usage of green marketing concept in the travel and tourism industry— the term is popular as — ‘zero carbon/ — carbon neutral’ [Al Bawaba Ltd., 2011]
GE’s Ecomagination— Multimillion dollar campaign for greenpeace — 17 products with measurable environmental performance advantages, — Lexan film that replaces conventional paint — Harmony water-conserving washing machines — the new fuel-efficient GEnx jet engine and — GEs Evolution locomotive, — a 208-ton, 4,400hp workhorse that burns 3% less fuel and puts out 40% less pollution than its immediate predecessor [Fisher Daniel, 2005]
Socially responsible marketing• Emphasised distinguishing interest in green marketing orientation among different stakeholders of business [Pranee Chitakornkijsil, 2012].
Demand – Supply integration [DSI]— Giving greenness to gain consumer’s perception — supply chain ability — green campaign and green marketing for competitive edge in business performance [Jon F. Kirchoff et al., 2011]
Green marketing tools— Eco-label & Eco-brands— Environmental advertisements — energy conservation — agricultural products — Degradable — non-toxic plastic packaging material — hazardous metal-free electrical and electronic equipment — biodegradable cleaning agents and recycled paper [Elham Rahbar and Nabsiah Abdul Wahid, 2011]
Eco-brands— Emotional benefits — A feeling of well-being — auto-expression benefits — the socially visible consumption — nature-related benefits are reported— The eco-image gain green feel toward — eco-image of country — manufacturer and — products.
Eco-brands— papers and plastics from — recycled materials, soy, corn plastic, stone, hemp, or organic cotton- all of which are sustainable materials drives green marketing efforts realistic.— In printing the marketing materials — recycled paper for direct mails and publishing marketing pamphlet, brochure on line in place of print are resounding change in marketing with alternative forms to promote green marketing in action[ [Sebor, Jesica, 2007]
The certification of sustainably— forest and timber wood strategically has been strongly supported by green consumers and their willingness to pay positively for certified product in Greece 6% plus [Ioannis Papadopoulos et al., 2010].
The depth of greenness— Lean green (product)— Defensive green (product & promotion)— Shade green (product, price & promotion) and— Extreme green (product, price, place & promotion). [Chun-Shuo Chen, & Long-Yi Lin., 2011]
America’s Federal Trade commission— Reasons for revision of green guide in carbon offset and renewable energy certificate (REC) — claiming single attribute — lack of proof — vague claims — claims irrelevant to product — true claims but distract product’s true problem — claiming certificate by independent authority [Bergeson Lynn L., 2008]
Compostable Packaging— Greening of the packaging has been done by reducing from muti-layer to few layers and replacing the rigid polyethylene film by sustainable flexible films like polylactic acid that are degradable, decomposable and renewable [Lecki, Molly, 2008] .
Green Monkey A Super Premium Brand— A niche-in-niche organic baby food and packaging company in New Zealand— claimed that 100 percent organic is much more reliable than 95 percent organic food.— The truth of success is — in the processing of food and — a highly traceable product with advanced thermal processing — gives an official 12-months shelf-life with a pouch system for superior flavour and freshness as an innovator than a manufacturer [Baker, Glenn, 2010].
8Mix2SegmentGreen Marketing Model — bimodal class — octagonal offerings of GM Mix — for sustainable green marketing
8Mix2SegmentGreen Marketing Model — Sustainable marketing and sustainable advertising of octagonal green marketing mix has direct effect on LOHAS and indirect effect on LOVOS consumer segment towards remanufactured, recycle, reuse and household composting both greenness and green washing for green branding.
LOHAS ~ LOVOS— Lifestyles of Health & Sustainability; upscale and well- educated population segment)— Lifestyle of Voluntary Simplicity— LOHAS 17 %; Naturalites (19%), Drifters (19%), Conventional (26%) and Unconcerned (19%) [NMI’s 2007 LOHAS consumer segmentation model]
The octagonal green marketing mix— The offering in the form of eco-product (protect & liquidate environmental damages),— Price (little higher)— Place (ecological packaging & regional source),— Promotion (CP certificate & ISO14000)— Plus— Social marketing drivers 4Ps....
The octagonal green marketing mixSocial marketing drivers 4Ps.... Publics (external & internal; policy makers and gatekeepers & approval and implementers), partnership (associating groups) policy (change in directives & media advocacy programs) Purse strings (cost & funding).
Green marketing offerings - products and services— Organic and locally grown food— Organic and natural personal care products— Hybrid and electric cars as well as city bicycles— Green and sustainable building— Sustainable or ecotourism— Energy efficient electronics/appliances— Socially responsible investing— Natural household products (paper goods and cleaning products)— complementary alternative and preventive medicine (Naturopathy, Chinese medicine, etc.)— Fair trade products— Literature in the mind/body/soul, holistic health, and— New age genres. [NMI]
Propositions— Green Marketing Mix components has positive direct effect on the LOHAS consumer segment as a part of both sustainable marketing and sustainable advertising towards remanufactured, recycle, reuse, and household composting products— Green Marketing Mix components has positive indirect effect on the LOVOS consumer segment as a part of both sustainable marketing and sustainable advertising towards remanufactured, recycle, reuse, and household composting products
Task Name Definition phase Kick off meeting Establish feasibility Finalization of work plan 1st pre-test meeting for green marketing perception measuring scale items 1st Interim report and modelsStage 1 (Measuring Tool selection) Listing of consumers Listing of measuring tool for GM perception Listing of measuring tool for Consumer Segment LOHAS & LOVOS Short listing of measuring tool for Green Marketing [Green Consumer Segment- Green Branding Value]Stage 2 (Qualitative assessment of Consumers) Listing of Green Products/Brands photograph Listing of Green Service/Brands photograph Participation and selection of photographs by Consumers – LOHAS, LOVOS &Other segments Final report stage 1Stage 3 - hosting of survey instrument/ questionnaire on surveymonkey.com Mediation and facilitation in administering and filling up of questionnaires by consumers - Area 1, 2,3 & 4 Final report stage 2Stage 4 - Compilation of Data and report writing on stage 2 Editing and coding of data - Area 1, 2, 3 & 4 Final report stage 3Stage 5 Final Research Project Management
Task Name Quarter 1 Quarter 2 Quarter 3 Quarter 4 M M2 M3 M4 M M6 M7 M8 M M10 M11 M12 Definition phase 1 5 9 Kick off meeting Establish feasibility Finalization of work plan 1st pre-test meeting forgreen marketing perception measuringscale items 1st Interim report andmodelsStage 1 (Measuring Toolselection) Listing of consumers Listing of measuring toolfor GM perception Listing of measuring toolfor Consumer Segment LOHAS & LOVOS Short listing of measuringtool for Green Marketing [GreenConsumer Segment- Green Branding Value]Stage 2 (Qualitativeassessment of Consumers) Listing of GreenProducts/Brands photograph Listing of GreenService/Brands photograph Participation and selectionof photographs by Consumers – LOHAS,LOVOS &Other segments Final report stage 1Stage 3 - hosting of surveyinstrument/ questionnaire onsurveymonkey.com Mediation and facilitationin administering and filling up of questionnairesby consumers - Area 1, 2,3 & 4 Final report stage 2Stage 4 - Compilation ofData and report writing onstage 2 Editing and coding ofdata - Area 1, 2, 3 & 4 Final report stage 3Stage 5 Final ResearchProject Management
Stage Colour Code Duration Dependency 0 Green 2Months 1 Blue 3Months Stage 0 2 Purple 3Months Stage 1 3 Red 3Months Stage 2 4 Yellow 4Months Stage 3 5 Light Blue 1Month Stage 4
Methodology— An exploratory qualitative study— Three pronged approach in the data collection— Initial stage of research - content analysis for conclusive evidence -Green identity in the advertising messages in the media— The second stage – identifying LOHAS and LOVOS customers using PET & ZMET— The third stage – Remanufactured, reuse, recycle
Green ProductsGreen Wood alternatives 1.32 .802 Std.Product/Service Mean Deviation Eco-tourism travel 1.17 .805Natural product 1.76 .639 Eco-adventure travel .93 .845Organic products .93 .775 Hybrid vehicles 1.15 .744Nutritional products 1.36 .756 Biodiesel fuel 1.11 .779Health care product 1.33 .751 Car sharing programs .93 .828Dietary supplements 1.04 .759 Indoor furnishing 1.21 .804Mind body spirit Outdoor furnishings 1.33 .732 .94 .837products Organic cleaning supplies 1.11 .832Home certification 1.01 .831 Compact fluorescent lights .96 .846Energy Star appliances 1.04 .813 Social change philanthropy 1.19 .781Sustainable flooring .74 .750 Apparel 1.18 .828Renewable energy Renewable energy credits 1.01 .813 1.10 .858systems Green pricing 1.24 .957
Pre-Test Results -1sustainable Remanufactured Reuse Recycle Household composingmarketing 13.9 16.7 23.6 22.3Greenness of Yes No No Missingproducts 41.7% 19.4% idea 25.3% 15.3%Use of green 37.5 20.8% 18.1% 23.6%colour andfalse messagemisguide me
Pre-Test Results -2Octagonal Mix I II III IV V VI VII VIII IX XBuy eco-products/green 15.3 11.1 15.3 4.2 6.9 5.6 2.8 1.4 8.3 5.6products/organicproductDon’t mind to pay little 5.6 20.8 11.1 4.2 8.3 1.4 2.8 8.3 5.6 8.3extra priceproduct sourced from 6.9 9.7 18.1 8.3 11.1 2.8 2.8 5.6 4.2 6.9local/regionalmarketplaceBio/decomposable 8.3 6.9 9.7 13.9 6.9 11.1 5.6 5.6 4.2 4.2packaged products 15.3 8.3 6.9 4.2 11.1 5.6 9.7 6.9 4.2 4.2Eco-label/mark/certificationGovernment approved 12.5 12.5 4.2 6.9 9.7 11.1 2.8 2.8 12.5 1.4sealCompanies associating 12.5 6.9 6.9 12.5 6.9 13.9 2.8 4.2 9.7environment issuesDon’t buy 8.3 6.9 5.6 9.7 6.9 11.1 5.6 12.5 1.4 8.3products/brandsreported in the medianegativelyCost conscious/financing 9.7 15.3 12.5 2.8 4.2 1.4 11.1 - 5.6 13.9
Number of consumer durables in the household use * Educational level of Chief Earning person in the family Crosstabulation Educational level of Chief Earning person in the family 5th to 9th std Diploma SSLC/HSC UG/PG Professional TotalNumber of consumer 1 Count 1 2 4 2 0 9durables in the % of Total 1.4% 2.8% 5.6% 2.8% .0% 12.5%household use 2 Count 0 1 0 0 0 1 % of Total .0% 1.4% .0% .0% .0% 1.4% 3 Count 0 0 3 1 0 4 % of Total .0% .0% 4.2% 1.4% .0% 5.6% 4 Count 1 2 1 3 1 8 % of Total 1.4% 2.8% 1.4% 4.2% 1.4% 11.1% 5 Count 0 1 7 2 1 11 % of Total .0% 1.4% 9.7% 2.8% 1.4% 15.3% 6 Count 1 0 0 7 1 9 % of Total 1.4% .0% .0% 9.7% 1.4% 12.5% 7 Count 0 1 1 3 1 6 % of Total .0% 1.4% 1.4% 4.2% 1.4% 8.3% 8 Count 0 2 4 7 1 14 % of Total .0% 2.8% 5.6% 9.7% 1.4% 19.4% 9 Count 0 1 2 2 2 7 % of Total .0% 1.4% 2.8% 2.8% 2.8% 9.7% 10 Count 0 1 0 1 1 3 % of Total .0% 1.4% .0% 1.4% 1.4% 4.2%Total Count 3 11 22 28 8 72 % of Total 4.2% 15.3% 30.6% 38.9% 11.1% 100.0%
Educating Green Marketing— Course content— Books— Syllabus— Assignments
Green Marketing Texts— “Esty and Winston’s Green to Gold— Ottman’s Green Marketing.— Mintu and Lozada (1993) trace the greening of marketing education back to the 1970s— Bridges and Wilhelm (2008) added an invaluable reference for the course.— Other prime sources for lecturing on specific topics included Fuller (1999) and edited volumes by Charter and Polonsky (1999) and Galea (2004).”
Course ContentGreen Marketing Management— Environmental Marketing— Ecological Marketing— Green Marketing— Sustainable Marketing— Sustainable Advertising— Responsible Consumer— Greening Tools and Techniques— Research Methods for Green Marketing review— Green Marketing Myopia
Syllabus – Green Marketing— Unit – I Introduction to Green Marketing— Unit – II Sustainable Marketing— Unit – III Green Product, Green Brands and Green Pricing— Unit – IV Greening of Merchandise and Environmental message— Unit –V Greenwashing and Green consumers
Assignments— Short assignment comparing pricing of two brands or versions (one “regular” one “green”) of the same product category (of the student’s choosing) - Green alternative— Longer projects included the semester-long (which included clothing, cosmetics and sports stadiums, among others), and an analysis of an advertising campaign for a “green” product, service, or idea.
Consulting Green Marketing— The household composting by natural mill— Conserving water in cleaning clothing— Consumer education in resource utilization— The vegetarian and non-vegetarian centred green marketing— Chemicals preservatives— The packaging materials in its proportion of multiple layers
Consulting Green Marketing— The degree of greenness to 100 percent is again a criterion in the food items especially to make consumers hassle free.— Green branding and green advertising— Bureau of Indian Standards [BIS] extends its support to standardisation and labelling
Consulting Green Marketing— Green brand building with greenness identity and image.— Green rank survey— Green brand ranking— Green score for companies and green certification
Consulting Green Marketing— Biodegradable & Compostable— Fair Trade— Renewable Energy— Organic— Wood and Paper Products— Energy Efficiency— The reasonable cost for the green seal
Conclusion— Green marketing is a form of niche marketing— In fact a niche-in-niche marketing— For greenness and organic food market
Conclusion— It is also considered by almost all corporate either in the form of sense and simple orientation of greening or in the form of greenwashing
Conclusion— The emerging market segments in the value of health, sustainability, simplicity etc. are an attraction for value and business performance.— Sustainability marketing and sustainability advertising raise responsible consumers on one side and users of remanufactured, reuse and recycled products on the other side.
Conclusion— The uses of household composting natural mills have gained importance and its acceptance in the market is noticed.— The need for consumer research in the lines of 8GM- Mix2Segment Green Marketing— Need for consumer education and— Consulting is the take away from green marketing initiatives
Green Marketing - LyricLOHAS,LOVOS Consumers Green seal, green label voluntaryhit Octagonal Green Marketing Mix green label mandatory gain green confidenceprotect/liquidate environmental damage green index green score green reputationbest-packaging for little high price Natural Nutritional dietary mind body spiritorganic with marking(promoting) green seals Energy star Wood alternatives (Green building)approvals associating group prevent media advocacy Ecotourism travel, Ecotourism adventure, hybridits the purse string energyGreen marketing is ecological gain car sharing, Natural lifestyle for organic, renewableGreen marketing is environment gain energyGreenwashing drain Green marketing Green pricing for responsible consumerGreen marketing gain greenness green education, green certificationRemanufacture gain greenness Green marketing is sustainable developmentReuse gain greenness Green brands is everythingRecycle gain greenness Green branding is everywhereGreen brand is everything LOHAS,LOVOS ConsumersGreen branding is everywhere hit Octagonal Green Marketing Mix protect/liquidate environmental damage
Selvarasu a. Mutharasu ANNAMALAI UNIVERSITYTHANKING YOU