Green marketing is that the marketing of products that are presumed to be environmentally safe.
Green marketing is the method of selling products and services which supports the environmental benefits. These products or services can be environmentally friendly in it or produced and packaged in an environmentally friendly way. Thus the green marketing is also known as Environmental Marketing.
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GREEN MARKETING - LAWS, ADVANTAGES, CHALLENGES
1. CONTENTS
1. Introduction to Green Marketing
2. Meaning of Green Marketing
3. The important Laws of Green Marketing
4. 4P‟s of Green Marketing
5. Green Marketing Mix
6. Present trends of Green Marketing in India
7. Role of Information Technology in Green Marketing
8. Examples of Green Marketing
9. Role of Information Technology in Green Marketing
10.Main Reasons for the Adoption of Green Marketing
11.Advantages of Green Marketing
12.Challenges of Green Marketing
13.Some suggested solutions
14.Conclusion
15.References
2. Introduction
The term green marketing was introduced in the late 1980s and early 1990s.
The American Marketing Association (AMA) held the first workshop on
“Ecological Marketing” in 1975. The proceedings of this workshop resulted in one
of the first books on green marketing entitled “Ecological Marketing”.
According to the American Marketing Association, green marketing is that the
marketing of products that are presumed to be environmentally safe. The green
marketing involves many of the activities like:
1. Product modification
2. Changes to the production process
3. Packaging changes
4. Modifying advertising
Green marketing is the method of selling products and services which supports the
environmental benefits. These products or services can be environmentally friendly
in it or produced and packaged in an environmentally friendly way. Thus the green
marketing is also known as Environmental Marketing.
Green Marketing satisfies human needs with minimum reverse impact on the
environmental condition. Green marketing not only includes commodity and
industrial goods but also the services sector. In the process of distribution of goods
and services, both the manufacturing and the services balance contribute towards
the ecological imbalance and loss of the ozone layer.
The most important advantage of green marketing is that the Eco-friendly goods
have competitive advantages over other firms of selling non-Eco-friendly goods.
At the same time, it should be noted that in the era of green marketing, each and
every shareholder should take part in this process as a social responsibility.
The major reason behind the imbalance in the ecosystem is the improper
management of resources and the population explosion. Hence, the process of
selling goods and services in an eco-friendly way is a big issue before the business
houses across the globe.
3. Moreover, keeping eco-friendly goods in the hands of the ultimate users is the
social responsibility of the manufacturer as the role of wealth creators has been
more in damaging the ecosystem rather than preserving it.
Meaning of Green Marketing:
According to American Marketing Association –
“Green marketing is that the marketing of products
that are presumed to be environmentally safe.”
According to Polonsky, 1994 – “Green or
Environmental Marketing consists of all activities
designed to get and facilitate any exchanges intended
to satisfy human needs or wants, such the satisfaction
of those needs and needs occurs, with minimal
detrimental impact on the natural environment.
The focus of Green Marketing is on satisfaction of
customers‟ needs and needs with no or minimum
harm to the natural environment.
Investopedia explains „Green Marketing‟ because the companies seek to travel
above and beyond traditional marketing by promoting environmental core values
within the hope that buyers will associate these values with their company or
brand.
According to the American Marketing Association, green or Environmental
Marketing consists of all activities designed to get and facilitate any exchanges
intended to satisfy human needs or wants, such that the satisfaction of these needs
and wants occurs, with minimal detrimental input on the national environment.
Environmental green marketing was the second phase; the main focus was on clean
technology and designing of innovative new products, which may control pollution
and waste issues. Third phase was “sustainable green marketing”. This phase
gained popularity in the late 1990s and early 2000.
4. The important laws of Green Marketing are:
1. Customers should be Aware:
If a company needs to sell the products, it should make sure that the customers are
better aware of the benefits of “green” products and their growing necessity. The
customer should know the main reason behind the issue of the products that are
eco-friendly.
2. Reassure the Buyers:
Marketer should understand that they need to convince the customers by promoting
the true quality and ethically show the performance of the product, because it
would be very difficult to sell the products to customers only on the lines that they
are eco-friendly.
3. Transparency:
Marketers should be ethical in claiming their products as eco-friendly. They should
be genuine and transparent about their claims. The business policies should also go
with it.
4. Consider Pricing:
It is possible that marketers charge a greater price for their “green” products
because of their high cost of production and use of higher-quality ingredients.
Many customers might not afford these high prices, so company needs to consider
a reasonable price and target the appropriate audience effectively.
5. Customer Participation:
The marketer involves the customers in the starting of green marketing. Once the
customer is a part of this cause, they will understand the concept better and the
issues of pricing etc. can be resolved..
5. 4P’s of Green Marketing
Marketers need to define and design the 4 Ps of green marketing from the
viewpoint of environmental preservation. These 4P's are:
1. Green Products:
The products that consume more energy, use toxic chemicals, cannot be recycled,
and use extensive packaging. Such products are a threat to the environment as they
lead to environmental degradation and pollution. On the other hand, products that
help in saving energy, use natural ingredients, are recycled, or use reduced
packaging make contributions to the environment. Therefore, those products that
are produced in harmony with the environment are known as „green products‟.
Production of green products is predicated on green technology. Green products
help in saving natural resources and reserves a sustainable future.
Organizations should produce environment-friendly products as they help in saving
energy resources and do not affect the environment adversely. The various stages
involved in the production of environment-friendly products are efficient in terms
of environment protection and conservation.
6. Environment-friendly products use natural and organic ingredients that are sourced
from local suppliers and its manufacturing and circulation is done in a manner that
has least or no impact on environment. Different governing organizations and
certification systems certify the merchandise as green after assessing it against
environmental performance criterion.
2. Green Price:
Production of green products requires modification in the production processes and
this necessitates expenditure. Cost increase leads to increased price point of green
products that creates acceptability of the merchandise within the market difficult.
The high price may act as a deterrent as consumers may be either unwilling or
unable to pay this green premium.
The gap between the worth of a green product and a non-green product is
understood as „pricing gap‟. Price impediments can be tackled either by lowering
the price point of green products to make it contiguous with the prevailing products
in the market or by enhancing the perceived value of the green products in the eyes
of the customer (by adding to the benefits derived such as improved packaging,
improved attributes, and making the product specific to customers‟ needs).
3. Green Place:
Green place means the distribution of green products without harming the
environment. This is achieved through efficient utilization of fuel and energy and
arranging for logistics with the least emissions.
Transportation costs constitute a major part of business costs and resources spend
in distribution can be saved through local production. This decreases transportation
costs and also reduces carbon footprint. Selling over the Internet as compared to a
shop also saves business resources.
4. Green Promotion:
Consumers need to be aware about green products and motivated to purchase them.
Therefore, a huge amount of cash and resources are spent by companies nowadays
on advertising and promotion of green products. Green promotion entails
increasing the sensitivity of consumers towards green products also as promoting
7. the products in an environment-friendly manner like using social networking sites
to post profiles related to green marketing.
Recently, Nike with its „Better World‟ campaign launched its first 100 per cent
recycled television advertisement, which was recycled by reusing and remixing
film of its earlier campaigns.
Green Marketing Mix
There are 4 major elements of green marketing mix:
1. Product:
Entrepreneurs are eager to exploit new green markets either by identifying
customer's environmental needs and develop products to deal with these needs or
will develop environmentally responsible products to possess less impact than
competitors.
2. Price:
Pricing is that the critical element of the marketing mix. Most customers will only
be prepared to pay a premium if there's a perception of additional product value.
This value could also be improved performance, function, design, visual appeal or
taste. Environmental benefits are going to be often be the deciding factor between
products of equal value or quality.
3. Place:
The choice of where and when to form products available will have significant
impact or the purchasers you attract. Very few customers leave of their thanks to
buy green products merely for the sake of it. Marketers looking to successfully
introduce new green products should position them broadly within the marketplace
in order that they aren't just appealing to alittle green niche market.
4. Promotion:
Promoting products and services to focus on markets include paid advertising, PR ,
advertisements , marketing and on- site promotions. Smart green marketers are
8. going to be ready to reinforce environmental credibility by using sustainable
marketing and communication tools and practices.
For example- many companies within the financial industry are providing
electronic statements by email; e-marketing is rapidly replacing more traditional
marketing methods and printed materials are often produced using recycled
materials and efficient processes such as waterless printing.
Present trends in India
1. Organizations perceive environmental marketing to be an opportunity that can
be used to achieve its objectives.
2. Organizations believe that they have to be more socially responsible as it is their
moral obligation.
3. Government is forcing marketers to become more responsible.
4. The environmental activities of competitors force other marketers to change
their environmental activities.
5. Cost requires in waste disposal and reduction of materials forces firms to modify
their process.
Green Warming:
Green warming means the green house warming. The earth‟s temperature is
increasing due to green house gases.
The solution to this problem lies in “Going Green” in our thoughts, behaviour and
actions.
The consumers and corporations need to focus on clean and environment friendly
products and services.
9. Elaboration of the term “Green”
1. “Green Product” is non-toxic and is made from recycled material. There is no
absolute green product. However the products, which consume less energy, cause
less pollution and are biodegradable, belong to the category of green products.
Thus “Green” is a relative term.
2. “Green Service” fulfills the philosophy of sustainable development, improving
and maintaining the quality of life for people without compromising the
environment.
3. “Green Washing” is the process of making products and services “Green” in all
respects.
The Green most be involved in the following activities to make a product or
service green:
i. Supply Chain
ii. Packaging
iii. Raw Material
iv. Product Innovations
Role of Information Technology in Green Marketing
IT departments are under increasing pressure to deliver environmental friendly
solutions. Large data centre are one among the foremost significant energy
consumers in an organization‟s IT infrastructure, so any measures that the
organization can fancy reduce this consumption (and therefore also CO2
emissions) will have a positive impact on the organization‟s environmental
footprint.
A green data centre is their when the mechanical, lighting, electrical and computer
systems are used in maximum energy saving manner with minimum environmental
impact. The construction and operation of a green data centre are involved in
advanced technologies and strategies. Some examples include:
10. i. Reduction in the power consumption at the data centre.
ii. Use of building materials, carpets and paints with low-emission.
iii. The energy consumption at data centre is the only important factor which can
define it as a green or not.
Examples of Green Marketing
Corporate are going green from the ground level to sustain and fulfill the
customer's expectations. The environment is becoming increasingly an important
part of the corporate reputations and they are actively participating in greening the
corporate strategy. Companies have converted most the products to form them eco-
friendly products. Some of the examples of the business which are going green are:
1. Maruti Suzuki:
The country‟s largest car maker had managed to slash energy consumption per car
at its Gurgaon factory by 26 per cent over the past six years, while its CO2 (CO2)
emissions during car manufacturing processes has come down 39 per cent within
the past five years. The models which utilizes gas as a fuel are being developed by
Maruti Suzuki India Limited as their Green Marketing practices.
11. 2. Bharat Petroleum:
Bharat Petroleum launched a programme to chop production of greenhouse gases
by 10% across its units worldwide and achieved it much before schedule. Cleaner
fuels such as Greener Diesel (ultra low sulphur content) and BP Autogas were
developed. Almost every plant of Bharat Petroleum are ISO 14001 certified. Now
it is running a programme to contain its net emissions at current levels for ten
years.
3. Hindustan Petroleum:
Hindustan Petroleum has a huge e-waste plant where many shredders and
granulators reduce about four million pounds of computer detritus monthly to
reduce waste. The first step is reclaiming not only steel and plastic but also toxic
chemicals like mercury and even some precious metals. HP will take back any
brand of equipment; its own machines are one hundred computers recyclable. It
has promised to chop energy consumption by 20 percent by 2010.
12. 4. Proctor & Gamble:
Laundry detergents are also touting energy savings. Proctor & Gamble‟s (P&G)
newest market entry, Tide Coldwater, is meant to wash clothes effectively in cold
water. About 80 to 85 percent of the energy wont to wash clothes from heating
water.
5. ITC:
ITC has been „Carbon Positive‟ for 3 years during a row sequestering/ storing
twice the quantity of CO2 than the corporate emits. It has been „Water Positive‟ six
years during a row creating 3 times more Rainwater Harvesting potential than
ITC‟s net consumption. It has obtained on the brink of 100% solid waste recycling.
All Environment, Health and Safety Management Systems in ITC conform to the
simplest international standards. ITC‟s businesses provides over 5 million people
their livelihood.
ITC‟s globally recognized e-Choupal initiative is that the world‟s largest rural
digital infrastructure benefiting over 4 million farming families. ITC‟s Watershed
Development Initiative brings precious water to just about 35,000 hectares of dry
lands and moisture-stressed areas. ITC‟s Sustainable Community Development
initiatives include women empowerment, supplementary education, integrated
farming programmes.
13. 6. Tata Metaliks Limited:
This deals in mining and metal sector. It has given a green view to scale back its
carbon foot prints. The objective of Tata Metaliks Limited is to extend the green
cover through plantation, spring water power generation and use of natural
fertilizers etc. The major green initiatives of the company are said to water
utilization. It depends entirely on the bottom water or no municipal supply and it'll
perform an entire water neutral operation.
7. Wipro and Infosys:
Wipro and Infosys‟s are going green Wipro launched desktops, laptops are referred
to as Wipro green wares. It was the primary company in India who developed eco-
sustainability within the sort of energy, water efficiency and waste management.
Wipro are actively seeking to become a very green company. Wipro has taken
various initiatives to be green and therefore the main objective of this is often to
become a carbon natural, water positive and energy saving in business . Wipro
designs products and solutions which will minimize hazardous waste. For the
purpose of enhancing ecological-sustainability, WIPRO is continuously offering
green products. Wipro has adopted variety of steps for ecological-sustainability at
its corporate level also. Wipro wants to become fully carbon natural and to realize
zero carbon emission by balancing the carbon released by the firm with equaling
14. quantity off set. Wipro Infosys reduced it per capita consumption of electricity and
procured renewable energy. In future, every new building on campus follows
integrated design methods for the aim maximize the day light and reduce heat. it'll
construct energy efficient building, at the present also, in Wipro 18 building are
certified to the international green standard. It replaced all the old office equipment
with new energy saving equipment. Wipro and Infosys also installed solar array
also in their campus. We know that solar energy is 70% cheaper than power
generated by diesel. solar power has no adverse impact on our surrounding also.
Products manufactured by the company are less harmful to the environment.
Main Reasons for the Adoption of Green Marketing
1. Opportunities:
As demands change, many firms see these changes as a chance to be exploited and
have a competitive advantage over firms marketing non-environmentally
responsible alternatives.
Some samples of firms who have strived to become more environmentally
responsible, in an effort to raised satisfy their consumer needs are:
I. McDonald replaced its clam shell packaging with waxed paper due to increased
consumer concern concerning polystyrene production and ozone depletion.
II. Tuna manufacturers modified their fishing techniques because of the increased
concern over driftnet fishing, and the resulting death of dolphins.
III. Xerox introduced a “high quality” recycled photocopier paper in an attempt to
satisfy the demands of firms for less environmentally harmful products.
2. Governmental Pressure:
As with all marketing related activities, governments want to “protect” consumers
and society. This protection has significant green marketing implications.
15. Governmental regulations concerning environmental marketing are designed
to guard consumers in several way:
I. Reduce production of harmful goods or by-products.
II. Modification in the consumer and industry‟s use and consumption of harmful
goods.
III. make sure that all kinds of consumers have the power to guage the
environmental composition of products.
Governments establish regulations designed to regulate the quantity of hazardous
wastes produced by firms.
3. Competitive Pressure:
Another major force within the environmental marketing area has been firms‟
desire to take care of their competitive position. In many cases firms observe
competitors promoting their environmental behaviours and plan to emulate this
behaviour. In some instances this competitive pressure has caused a whole industry
to switch and thus reduce its detrimental environmental behaviour.
For example- it might be argued that Xerox‟s “Revive 100% Recycled paper” was
introduced a couple of years ago in an effort to deal with the introduction of
recycled photocopier paper by other manufacturers. In another example when one
tuna manufacturer stopped using driftnets the others followed suit.
4. Social Responsibility:
Many firms are starting to realize that they're members of the broader community
and thus must behave in an environmentally responsible fashion. This translates
into firms that believe they need to achieve environmental objectives also as profit
related objectives. This leads to environmental issues being integrated into the
firm‟s corporate culture.
There are examples of firms adopting both strategies. Organizations just like the
Body Shop heavily promote the very fact that they're environmentally responsible.
16. While this behaviour may be a competitive advantage, the firm was established
specifically to supply consumer‟s environmentally responsible alternatives to
standard cosmetic products.
5. Cost or Profit Issues:
Firms can also use green marketing in an effort to deal with cost or profit related
issues. Disposing of environmentally harmful by-products, like polychlorinated
biphenyl (PCB) contaminated oil are getting increasingly costly and in some cases
difficult.
Therefore firms which will reduce harmful wastes may incur substantial cost
savings. When attempting to attenuate waste, firms are often forced to re-examine
their production processes. In these cases they often develop simpler production
processes that not only reduce waste, but reduce the necessity for a few raw
materials. This is a double cost savings, since both waste and staple are reduced.
17. Advantages of Green Marketing
1. Environmental Advantages:
Going green is an environmentally responsible choice. It is estimated that 40
percent of all greenhouse gases in the United States comes from energy production
that businesses use to heat, cool and light workplaces. Reducing these energy
needs reduces carbon dioxide output, helping to control global warming. As
businesses use more natural resources than individual consumers, recycling
business materials and conserving water contribute to conservation on a bigger
scale.
2. Economic Advantages:
The reduction in waste equals lower operating costs and more savings. Eco-
friendly business equipment and practices like – low-wattage or LED lights, use of
natural lighting, conservation policies, mandatory recycling and hybrid company
vehicles economize on utilities, fuel and office supplies. This generates instant
cash flow. Further going green puts a business in a positive light in the eyes of
customers, potential investors, distributors, activists, watchdog groups,
communities and prospective employees.
3. Sustainability:
Green marketing is about sustainability, the sustainability means the sustainable
profits in green sectors with secure futures. The green market includes
biomaterials, green buildings, personal transportation, smart grids, mobile
applications and water filtration.
4. Efficient Use of Resources:
Human demands and needs are unlimited but resources are short enough that
cannot fulfill the human needs. Markets need to facilitate the consumers by
utilizing resources efficiently.
5. Planned Techniques:
It needs to develop well planned techniques and innovative policies to achieve the
organizational goals effectively without any wastage of time and other resources.
Green marketing samples of different products and services develops a growing
interest among customers throughout the planet.
18. 6. Consumer Attraction:
Green marketing samples of different products attracts the consumers regarding
environment protection. People are so much conscious about their environment and
variations in behavior. Green marketing is taken into account as growing
marketing that helps to style socially and sustainable products.
7. Innovation:
Green marketing helps to style such sorts of products that are economically
affordable and satisfy the human needs efficiently. It produces green products
which consumes fewer resources.
8. Competitive Advantage:
Companies enjoy competitive advantage over other companies within the market
through green marketing examples. Today, companies which adopt green
marketing techniques gain more competitive advantage over other companies
which aren't conscious about such techniques and environment. Companies which
develop innovative products and services with innovative qualities at affordable
rates are successful within the market.
Green marketing is a group of activities that are designed to meet the
consumer’s demands and needs at affordable price range
i. It ensures sustained long term growth along with profitability.
ii. It saves money in the long run, though initially the cost is more.
iii. It helps the companies market their products and services keeping the
environment aspects in mind. It helps in accessing the new markets and enjoying
the competitive advantage.
iv. Most of the employees also feel proud and responsible to be working for an
environmentally responsible company.
19. Challenges of Green Marketing
1. Need for Standardization:
Only 5% of the messages from marketing sectors about “Green” campaigns are
completely true and there is a scarcity of standardization in authentication of these
claims. There is no standardization currently in situ to certify a product as organic.
Unless some regulatory bodies are involved in providing the certifications there'll
not be any verifiable means. A standard internal control board must be in situ for
such labelling and licensing.
2. New Concept:
Indian literate and concrete consumer is getting more aware of the merits of green
products. But it's still a replacement concept for the masses. The consumer must be
educated and made conscious of the environmental threats. The new green
movements need to reach the masses and that will take a lot of time and effort.
Due to Indian ayurvedic heritage, Indian consumers always appreciate the
importance of using natural and herbal beauty products. Indian consumer is
exposed to healthy living lifestyles like yoga and natural food consumption. In
these aspects the consumer is already aware and will be inclined to accept the
green products.
3. Patience and Perseverance:
The investors and company got to view the environment as a serious long-term
investment opportunity, the marketers got to check out the long- term benefits from
this new green movement. It will require tons of patience and no immediate results.
Since it's a replacement concept and idea, it'll have its own acceptance period.
4. Avoiding Green Myopia:
The first rule of green marketing is that specialize in customer benefits i.e. the
primary reason why consumers buy certain products within the first place. Do this
right motivate consumers to switch brands or even pay a premium for the greener
alternative. It is not getting to help if a product is developed which is completely
20. green in various aspects but doesn't pass the customer satisfaction criteria. This
will lead to green myopia. Also if the green products are priced very high but it'll
lose its market acceptability.
Some suggested solutions
a. Environmentally responsible organizations should plan to minimize their waste.
b. Green marketing should be the organization policy.
c. Employee Awareness Program should be held.
d. Effective and transparent Communication
e. Constantly refining the merchandise and Processes
Green marketing is still in its infancy and a lot of research is to be done on green
marketing to fully explore its potential. Taking refrigerator as an example, While
we may have had to be convinced in the 1950s to shop for a refrigerator, we might
have wanted the good white box to seem cool within the 1970s, but in today's
uncertain world, we'd ask ourselves about the impact of the chlorofluorocarbons
(CFCs) that our refrigerator is emitting and demand a more environment friendly
refrigerator. So, if today's successful marketing is about appealing to personal
values and delivering consumer empowerment, then surely the time is true to inject
sustainable development into the marketing mix to help address a number of the
gritty issues currently facing our planet. Green marketing methods produce highly
effective results. They apply all of the steps you need to cut costs, raise response
rates and increase growth within the most vital marketing metric we are all held
accountable for-the bottom line.
21. Conclusion
Green marketing shouldn't neglect the economic aspect of selling. Marketers got to
understand the implications of green marketing. If we expect customers aren't
concerned about environmental issues or won't pay a premium for products that are
more eco-responsible, re-evaluate. We must find a chance to reinforce our
product's performance and strengthen our customer's loyalty and command a better
price. Nowadays, green marketing has become necessary to save lots of the planet
from environment pollution. From the marketing point of view, a good marketer is
not only satisfy the consumer needs but also produce and supply products
according to the choice of the consumers But the firm should know the advantages
of selling green products. Consumers are also able to pay more amounts to take
care of greener and cleaner surroundings. Consumers also are aware of Initiatives
Taken by Corporates about the attributes and use of products that‟s why they
demand for green products. Making green products need to be achieved throughout
the entire supply chain. The firms should work constantly to seek out the green
material, methods of creating green finished product which are commercially
viable.