This document discusses green marketing, which refers to marketing products and services in an environmentally friendly way. It covers the reasons for green marketing like consumer demand for sustainable products and regulations. The marketing mix for green products incorporates the 3Ps of people, planet and profits in addition to the traditional 4Ps. Companies adopt green marketing for opportunities, social responsibility and competitive pressures. Benefits include long term growth and cost savings.

1. By:
Misbah Ul Islam
SEM-II
CMS, JMI

2. What is Green Marketing?
"Green Marketing" refers to holistic marketing
concept wherein the production, marketing
consumption & disposal of products and services
happen in a manner that is less detrimental to the
environment with growing awareness about
sustainability.
It incorporates a broad range of activities including
 Product modification,
 Changes to the production process
 Packaging changes
 Modifying advertising

3. Why Green Marketing?
Green marketing is inevitable in a market where resources
are scarce and demands are infinite.
 While the shift to "green" may appear to be expensive in the short
term, it will definitely prove to be indispensable and
advantageous, cost-wise too, in the long run.
 People are concerned about the environment and are changing their
behavior pattern so as to be less hostile towards it.
 Most of the consumers, both individual and industrial, are becoming
more concerned about environment-friendly products
 As a result, green marketing has emerged, which aims at marketing
sustainable and socially-responsible products and services.

4. History
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 consumers and earn
better profits. But when and how did this started?
 Green marketing was given prominence in the late 1980s and 1990s
after the proceedings of the first workshop on Ecological marketing
held in Austin, Texas (US), in 1975.
 According to Peattie (2001), the evolution of green marketing has
three phases:
 First phase was termed as "Ecological" green marketing, during this period
all marketing activities were concerned to help environment problems.
 Second phase was "Environmental" green marketing and the focus shifted
on clean technology, involving 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.

5. Marketing Mix of Green Marketing
Just as we have 4Ps (product prices, place and promotion) in
marketing, we have 4ps in green marketing too, but they are a
bit different. They are buttressed by three additional Ps, namely
people, planet and profits.
 PRODUCT:
 The products have to be developed depending on the needs of the
customers who prefer environment friendly products.
 For example, Nike is the first among the shoe companies to market
itself as green. It is marketing its Air Jordan shoes as environment-
friendly, as it has significantly reduced the usage of harmful glue
adhesives.
 PRICE
 Green pricing takes into consideration the people, planet and profit in
a way that takes care of the health of employees and communities and
ensures efficient productivity.
 Wal Mart unveiled its first recyclable cloth shopping bag.

6. Marketing Mix (contd.)
 PLACE
 Green place is about managing logistics to cut down on
transportation emissions, thereby in effect aiming at reducing
the carbon footprint
 For example, instead of marketing an imported mango juice in
India it can be licensed for local production avoiding shipping of
the product from far away, thus reducing shipping cost &
carbon emissions.
 PROMOTION
 Green promotion involves configuring the tools of
promotion, such as advertising, marketing materials, by
keeping people, planet and profits in mind.
 Toyota is trying to push gas/electric hybrid technology into
much of its product line. It is also making the single largest
R&D investment in the every-elusive hydrogen car and
promoting itself as the first eco-friendly car company.

7. Why is Green Marketing Chosen by
Most Marketers?
Most of the companies are venturing into green
marketing because of the following reasons:
 Opportunity
 In India, around 25% of the urban consumers prefer
environmental-friendly products. Therefore, green marketers
have diverse and fairly sizeable segments to cater to.
 Social Responsibility
 Many companies have started realizing that they must
behave in an environment-friendly fashion. They believe both
in achieving environmental objectives as well as profit related
objectives.

8. Importance (contd.)
 Governmental Pressure
 Various regulations are framed by the government to
protect consumers and the society at large. The Indian
government too has developed a framework of
legislations to reduce the production of harmful goods and
by products.
 Competitive Pressure
 Many companies take up green marketing to maintain
their competitive edge.
 Cost Reduction
 Reduction of harmful waste may lead to substantial cost
savings. Firms develop symbiotic relationship whereby
the waste generated by one company is used by another
as a cost-effective raw material.

9. Benefits of Green Marketing
Companies want to have an early-mover advantage on
the present environment conscious consumers as they
have to eventually move towards becoming green. Some
of 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 environmentally responsible company.

10. Problems of Green Marketing
Many organizations want to turn green, as an
increasing number of consumers want to associate
themselves with environmental-friendly products.
But there are a few roadblocks:
 Confusion among the consumers regarding the products.
 Distrust regarding the credibility of green products.
 Marketers of green products need to be much more
transparent, and refrain from breaching any law or
standards relating to products or business practices.

11. Path to “Greeness”
Green marketing focusses on promoting the consumption
of green products. Companies which embark on green
marketing should adopt the following principles in their path
towards "greenness" :
 Adopt new technology/process or modify existing
technology/process so as to reduce environmental impact.
 Establish a management and control system that will lead to the
adherence of stringent environmental 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 or other benefits with less wastage.

12. Marketing Strategies
The marketing strategies for green marketing
include: -
 Marketing Audit (including internal and external
situation analysis)
 Develop a marketing plan outlining strategies with
regard to 4 P's
 Implement marketing strategies
 Plan results evaluation

13. Conclusion
A clever marketer is one who not only convinces
the consumer, but also involves the consumer in
marketing his product.
 With the threat of global warming looming large, it is extremely
important that green marketing becomes the norm rather than an
exception or just a fad.
 Recycling of paper, metals, plastics, etc., in a safe and
environmentally harmless manner should become much more
systematized and universal.
 Marketers also have the responsibility to make the consumers
understand the need for and benefits of green products
 Green marketing assumes even more importance and relevance
in developing countries like India.