Green Marketing

Everything you need to know about green marketing. The term green marketing
came into prominence 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”.

Thus green marketing incorporates a broad range of activities, including product

modification, changes to the production process, packaging changes, as well as
modifying advertising.

In simple terms green marketing refers to the process of selling products and/or
services based on their environmental benefits. Such a product or service may be
environmentally friendly in itself or produced and/or packaged in an
environmentally friendly way.

Learn about:-

1. Introduction to Green Marketing

2. Meaning of Green Marketing

3. Golden Laws

4. Concept

5. Importance

6. Examples

7. Elements

8. Green Marketing Mix

9. Present Trends

10. Role of Information Technology

11. Attributes of the Green Consumers

12. Adoption of Green Marketing by Firms

13. Benefits

14. Challenges.

Green Marketing: Introduction, Meaning, Golden Laws, Importance, Examples,

Elements, Green Marketing Mix and a Few Others
 Contents:

Introduction to Green Marketing

Meaning of Green Marketing

Golden Laws of Green Marketing

Concept of Green Marketing

Importance of Green Marketing

Examples of Green Marketing

Elements of Green Marketing

Green Marketing Mix

Present Trends of Green Marketing

Role of Information Technology in Green Marketing

Attributes of the Green Consumers Adoption of Green Marketing by Firms

Benefits of Green Marketing

Challenges of Green Marketing

Green Marketing – Introduction to Green Marketing

According to the American Marketing Association, green marketing is the

marketing of products that are presumed to be environmentally safe. Thus green
marketing incorporates a broad range of activities, including-
1. Product modification,

2. Changes to the production process,

3. Packaging changes, as well as

4. Modifying advertising.

The term green marketing came into prominence 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”.

Thus green marketing incorporates a broad range of activities, including product

modification, changes to the production process, packaging changes, as well as
modifying advertising.

In simple terms green marketing refers to the process of selling products and/or
services based on their environmental benefits. Such a product or service may be
environmentally friendly in itself or produced and/or packaged in an
environmentally friendly way.

The obvious assumption of green marketing is that potential consumers will view a
product or service’s “greenness” as a benefit and base their buying decision
accordingly. The not-so-obvious assumption of green marketing is that consumers
will be willing to pay more for green products than they would for a less-green
comparable alternative product an assumption that has not been proven
conclusively, specially the mild effect which it had had on consumers has washed
away by the present recession (2008-09) only.

Green or Environmental Marketing satisfies human needs with minimal

detrimental impact on the national environment. Green marketing not only includes
consumer goods 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.

However, the role of the manufacturing sector in this regard is more significant.
The process of manufacturing and selling goods and services with the least threat
to the environment is a big issue before the business houses. Green marketing
requires awareness not only from the consumers but also from the manufacturers
of such goods.

Ultimately green marketing requires extra cost but the stakeholders should be
ready to bear that cost. Business firms have also started responding to
environmental challenges by adopting and practicing green marketing strategies.

The most important advantage of green marketing is that eco-friendly goods have a
competitive advantage over other firms selling non-eco-featured 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.

It is a fact that the natural environment is the basis of all activity. Natural
environment and ecosystem services provide us with food, water and material for
living. Since the economic activities directly depend upon the natural resources
and the environment, the protection of natural environment is the duty of all
stakeholders.

He should take utmost care to protect both the renewable and non-renewable
energy sources. If we fail to manage the ecosystem and environmental resources in
a proper way, the future generations will face severe imbalances in climate and
availability of water, food, good air, etc.
It is needless to say that 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.

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.

In our days the environmental problems seem to concern all active citizens,
enterprise, and institutions all over the world much more than it did 30 years ago.
International researches show that consumers worry about the environment and
change their behaviour gradually. Thus a new market for viable or sustainable
product emerges, which is further strengthened by active consumers since it is a
way to contribute to the protection of the environment.

The enterprises gradually recognize the various competitive advantages and the
enterprising opportunities that arise from this ecological consuming approach,
entering the word “green” in many of their activities. Thus, in parallel with the
concept of corporate social responsibility of “green marketing” has also been
cultivated with sufficiently effective practices.

The term green marketing refers to the planning, development and promotion of
products or services that satisfy the needs of consumers for quality, output, prices
and services without a negative effect on the environment with regard to the use of
raw material, the consumption of energy, etc.

According to Kingis, green marketing must be more than a green way of marketing
of the so-called green products. Green has to refer both to the method and to the
product. This is why the very idea of green marketing needs considerable
development and analysis, with rules and integrity in economic, scientific,
academic and ethical terms.

The environmental parameter has been included in the strategy of marketing from
the beginning of 1990s.

It is reported that in the USA, the green market counts about $250 billion, which
63 million of consumers are directed to the products that either protect the
environment contrary to the conventional ones or have been produced with
processes that respect the society and the environment.

The same consumers are prone to spend an additional 7 to 20% in order to buy
pure green products and reject the non-viable alternatives, offered to them by
conventional market. According to a recent research, at a world level the
supportive fame of a company about its environmental responsibility is determined
by the 53% of consumers as a decisive reason that makes them buy and use its
products.

Green marketing is a relatively new focus in business endeavours and came into
prominence only in the late 1980s. Since the mid-nineties, environmental
legislation has increased leading to a high level of awareness of environmental
issues in the business domain and many corporations being required to consider the
issues in their strategic planning in order to meet stricter environmental change that
is far easier said than done. The so called “green consumer” movement in the USA
has struggled to keep afloat by not quite being able to reach critical mass not being
at the very forefront of shopper’s minds.
In the fast moving period, there is a huge requirement of standard entity wealth as
well as fresh environment. It is the primary responsibility of the public and private
sector enterprises to provide the essentials of a life and the maintenance of the
demands of the environment. In green marketing, products are offered to satisfy
the customers with special consideration on environment.

Green Marketing – Meaning According to American Marketing Association,

Polonsky and Investopedia

According to American Marketing Association – “Green marketing is 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 generate and facilitate any exchanges intended to satisfy
human needs or wants, such that the satisfaction of these needs and wants occurs,
with minimal detrimental impact on the natural environment.

Green marketing refers to the process of selling products and/or services based on
their environmental benefits. Such a product or service may be environmentally
friendly in itself or produced and/or packaged in an environmentally friendly way.
The assumption of green marketing is that potential consumers will view a product
or service’s “greenness” as a benefit and base their buying decision accordingly.
The consumers may be willing to pay more for green products than they would for
a less-green product.

Green Marketing incorporates broad range of activities including product

modification, changes to the production process, packaging changes, and
modifying advertising. The focus of Green Marketing is on satisfaction of
customers’ needs and wants with no or minimum harm to the natural environment.

Marketing products and services based on environmental factors or awareness.

Companies involved in green marketing make decisions relating to the entire
process of the company’s products, such as – methods of processing, packaging
and distribution. Investopedia explains ‘Green Marketing’ as the companies seek to
go above and beyond traditional marketing by promoting environmental core
values in the hope that consumers will associate these values with their company or
brand.
Engaging in these sustainable activities can lead to creating a new product line that
caters to a new target market, also known as sustainable marketing, environmental
marketing or ecological marketing.

According to the American Marketing Association, green or Environmental

Marketing consists of all activities designed to generate 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.

Green Marketing has progressed over a period of time. There are three phases in
the evolution process of Green Marketing. First phase was ecological green
marketing where environmental problems and remedies for environmental
problems were mainly focused.

Environmental green marketing was the second phase; the major focus was on
clean technology and designing of innovative new products, which can control
pollution and waste issues. Third phase was “sustainable green marketing”. This
phase gained popularity in the late 1990s and early 2000.

A variety of jargons are used in this area, like Green Marketing, Ecological
Marketing and Environmental Marketing. The term Green Marketing came into
regulation in the late 1980s and early 1990s.
Green Marketing – 5 Important Golden Laws: Customers should be Aware,
Reassure the Buyers, Transparency, Consider Pricing and Customer Participation

The important golden laws of Green Marketing are as follows:

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 should involve the customers in the initiative of green marketing.
Once the customer is a part of this cause, he or she will understand the concept
better and the issues of pricing etc. can be resolved.

Green Marketing – Importance: Environmental Advantages, Economic

Advantages, Sustainability, Efficient Use of Resources, Planned Techniques
and a Few Others
It is well known that increasing production and business activities are polluting the
natural environment. The damages to people, crops, and wildlife are reported in
different parts of the world. As resources are limited and human wants are
unlimited, it is necessary for marketers to use resources efficiently, so that
organisational objectives are achieved without waste of resources. So green
marketing is inevitable.

There is growing interest among people around the world regarding protection of
natural environment. People are getting more concerned for environment and
changing their behaviour for the protection of environment. As a result of this, the
term “Green Marketing” has emerged. Hence, marketers are feeling their
responsibility towards environment and giving importance to green marketing.

Not only marketers but consumers are also concerned about the environment, and
consumers are also changing their behaviour pattern. Now, individual as well as
industrial consumers are becoming more concerned about environment-friendly
products.

Importance # 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 larger
scale.

Importance # 2. Economic Advantages:

The reduction in waste equals lower operating costs and more savings. Eco-
friendly business equipment and practices such as – low-wattage or LED lights,
use of natural lighting, water conservation policies, mandatory recycling and
hybrid company vehicles save money 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.

Importance # 3. Sustainability:

Going green is about sustainability; this sustainability translates to sustainable

profits in green sectors with secure futures. The future-safe markets include
biomaterials, green buildings, personal transportation, smart grids, mobile
applications and water filtration.

Importance # 4. Efficient Use of Resources:

Today, 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.

Importance # 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 examples of different products and services develops a growing
interest among customers throughout the world.
Importance # 6. Consumer Attraction:

Green marketing examples of different products attracts the consumers regarding

environment protection. People are so much conscious about their environment and
variations in behavior. Green marketing is considered as growing marketing that
helps to design socially and sustainable products.

Importance # 7. Innovation:

Green marketing helps to design such kinds of products that are economically
affordable and satisfy the human needs efficiently. It produces innovative green
products that consume less resource.

Importance # 8. Competitive Advantage:

Companies enjoy competitive advantage over other companies in the market

through green marketing examples. Today, companies which adopt green
marketing techniques gain more competitive advantage over other companies
which are not conscious about such techniques and environment. Companies which
develop innovative products and services with innovative qualities at affordable
rates are successful in the market.

Green marketing is a group of activities that are designed to meet the consumer’s
demands and needs at affordable price range.
Green Marketing – 5 Main Examples: Maruti Suzuki, Bharat Petroleum, Hindustan
Petroleum, Proctor & Gamble and ITC

Corporate are going green from the grassroots level to sustain and win the
customers’ 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 almost all the products to make
them eco-friendly products. Following are the recent environment friendly
initiatives taken by the companies.

Example # 1. Maruti Suzuki:

The company has been promoting 3 R since its inception. As a result the company
has not only been able to recycle 100% of treated waste water but also reduced
fresh water consumption. The company has implemented rain water harvesting to
recharge the aquifers. Also, recyclable packing for bought out components is being
actively promoted.

The country’s largest car manufacturer had managed to slash energy consumption
per car at its Gurgaon factory by 26 per cent over the past six years, while its
carbon dioxide (CO2) emissions during car manufacturing processes has come
down 39 per cent in the past five years. The model with gas as fuel was adopted by
Maruti Suzuki India Limited as their Green Marketing practices.
Example # 2. Bharat Petroleum:

Bharat Petroleum launched a programme to cut production of greenhouse gases by

10% across its units worldwide and achieved it much ahead of schedule. Cleaner
fuels such as Greener Diesel (ultra low sulphur content) and BP Autogas were
developed. Almost all of its plants are ISO 14001 certified. Currently it is running
a programme to contain its net emissions at current levels for ten years.
Example # 3. Hindustan Petroleum:

Hindustan Petroleum owns a massive e-waste recycling plant, where enormous

shredders and granulators reduce four million pounds of computer detritus each
month to bite-sized chunks the first step in reclaiming not just 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 100 percent recyclable. It has
promised to cut energy consumption by 20 percent by 2010.

Example # 4. Proctor & Gamble:

Laundry detergents are also touting energy savings. Proctor & Gamble’s (P&G)
newest market entry, Tide Coldwater, is designed to clean clothes effectively in
cold water. About 80 to 85 percent of the energy used to wash clothes from heating
water.
Example # 5. ITC:

ITC has been ‘Carbon Positive’ for three years in a row sequestering/ storing twice
the amount of CO2 than the Company emits. It has been ‘Water Positive’ six years
in a row creating three times more Rainwater Harvesting potential than ITC’s net
consumption. It has obtained close to 100% solid waste recycling. All
Environment, Health and Safety Management Systems in ITC conform to the best
international standards. ITC’s businesses generate livelihoods for over 5 million
people.

ITC’s globally recognized e-Choupal initiative is the world’s largest rural digital
infrastructure benefiting over 4 million farming families. ITC’s Watershed
Development Initiative brings precious water to nearly 35,000 hectares of dry
lands and moisture-stressed areas. ITC’s Sustainable Community Development
initiatives include women empowerment, supplementary education, integrated
animal husbandry programmes.

Green Marketing Mix – 4 Ps of Green Marketing Mix:

 Green Products,
 Green Price,
 Green Place and
 Green Promotion
Marketers need to define and design the 4 Ps of marketing mix from the viewpoint
of environmental preservation. The green marketing mix elements address the key
environmental issues appropriately and effectively.

Element # 1. Green Products:

Consider 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 based on green technology. Green products help in

saving natural resources and subscribe towards 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.

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 product as green after assessing it against
environmental performance criterion.
Element # 2. Green Price:

Production of green products requires modification in the production processes and

this necessitates expenditure. Cost increase results in increased price point of green
products that makes acceptability of the product in 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 price of a green product and a non-green product is known 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).

Element # 3. Green Place:

Green place relates to the distribution of green products without doing any harm to
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.

Element # 4. Green Promotion:

Consumers need to be made aware about green products and motivated to purchase
them. Therefore, huge amount of money 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 as well as
promoting 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 – 4 Major Elements of Marketing Mix: Product, Price,
Place and Promotion

1. Product:

Entrepreneurs wanting to exploit emerging green markets either- Identify

customers’ environmental needs and develop products to address these needs or
will develop environmentally responsible products to have less impact than
competitors.
2. Price:

Pricing is the critical element of the marketing mix. Most customers will only be
prepared to pay a premium if there is a perception of additional product value. This
value may be improved performance, function, design, visual appeal or taste.
Environmental benefits will be often be the deciding factor between products of
equal value or quality.

3. Place:

The choice of where and when to make products available will have significant
impact or the customers you attract. Very few customers go out of their way to buy
green products merely for the sake of it. Marketers looking to successfully
introduce new green products should position them broadly in the marketplace so
they are not just appealing to a small green niche market.

4. Promotion:

Promoting products and services to target markets include paid advertising, public
relations, sales promotions, direct marketing and on- site promotions. Smart green
marketers will be able to reinforce environmental credibility by using sustainable
marketing and communication tools and practices.
For example- many companies in the financial industry are providing electronic
statements by email; e-marketing is rapidly replacing more traditional marketing
methods and printed materials can be produced using recycled materials and
efficient processes such as waterless printing.
Moving towards Green Marketing:

The era of green marketing has begun. It has already been granted wide acceptance
by all stakeholders. However, there is a need to lay down the standards and
practices, in order to bring in objectivity in the judgment of various national and
international agencies. This will not only encourage the activities of green
marketing but shall also provide the much needed level playing fields to all.
Green Marketing – 5 Important Present Trends in India

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 behaviour.

Green Warming – Proposed Solution:

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.
To elaborate on the “Green” Terminology:

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 this category. 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.

To make products and services green the businesses need to focus on bringing
the green in various aspects such as:

i. Supply Chain

ii. Packaging

iii. Raw Material

iv. Product Innovations

Green Marketing – Role of Information Technology

IT departments are under increasing scrutiny and pressure to deliver

environmentally sound solutions. Large data centre are one of the most significant
energy consumers in an organization’s IT infrastructure, so any measures that the
organization can take to reduce this consumption (and therefore also carbon
dioxide emissions) will have a positive impact on the organization’s environmental
footprint.

A green data centre is defined as one in which the mechanical, lighting, electrical
and computer systems are designed for maximum energy efficiency and minimum
environmental impact. The construction and operation of a green data centre are
involved in advanced technologies and strategies.
Some examples include:

i. Reducing the power consumption of the data centre.

ii. Using low-emission building materials, carpets and paints.

iii. The consumption of energy is considered the dominant and often the only
factor in defining whether or not a facility is green.
Green Marketing – Attributes of the Green Consumers

To take the advantage of the emerging green market, it is important to understand

who green customers are and the factors influencing their purchasing decisions and
behaviour.

What Drives Environmentally Conscious Consumer Behaviour?

The proposed framework presents Environmentally Consciousness Consumer

Behaviour (ECCB) as a process involving consumer environment, constructs,
mediators and outcomes. The underlying influencers of ECCB are complex and
different approaches to consumer motivation account for them in various ways.

Apart from this Natural Marketing Institute (NMI) divides the market into
following categories:

1. Lohas – Very progressive on environment and society, looking for ways to do

more; not too concerned about price.

2. Naturalites – Primarily concerned about personal health and wellness, and use
many natural products; would like to do more to protect the environment.

3. Conventional – Practical, like to see the results of what they do; interested in
green products that make sense in the long run.
4. Drifters – Not too concerned about the environment, figuring we’ve got time to
fix the environmental problems; don’t necessarily buy a lot of green products.

5. Unconcerned – Have other priorities, not really sure what green products are
available and probably wouldn’t be interested anyway; they buy products strictly
on price, value, quality and convenience.

Towards a Green Marketing Partnership – ICT and Cost Management is the

Key.

Worldwide evidence indicates people are concerned about the environment and are
changing their behaviour accordingly. As a result there is a growing market for
sustainable and socially responsible products and services.

The types of businesses that exist, the products that they produce and their
approaches to marketing are changing. Successful green marketers will reap the
rewards of healthy profits and improved shareholder value and help in making the
world a better place for future generations.

Identify and close the Green Gap.

Right now, gaps exist on both sides of the market, between where customers are
today and the preferences that will help sustain a future market. There is also a gap
between today’s products and green designs of tomorrow.
Green Marketing – 5 Main Reasons for Adoption of Green Marketing
by the Firms: Opportunities, Competitive Pressure, Social Responsibility
and Cost or Profit Issues

Green marketing has been widely adopted by the firms worldwide and the
following are the possible reasons cited for this wide adoption:

1. Opportunities:

As demands change, many firms see these changes as an opportunity to be

exploited and have a competitive advantage over firms marketing non-
environmentally responsible alternatives.

Some examples of firms who have strived to become more environmentally

responsible, in an attempt to better satisfy their consumer needs are:

I. McDonald replaced its clam shell packaging with waxed paper because of
increased consumer concern relating to 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.

Governmental regulations relating to environmental marketing are designed to

protect consumers in several way:

I. Reduce production of harmful goods or by-products.

II. Modify consumer and industry’s use and/or consumption of harmful goods.

III. Ensure that all types of consumers have the ability to evaluate the
environmental composition of goods.

Governments establish regulations designed to control the amount of hazardous

wastes produced by firms.

3. Competitive Pressure:

Another major force in the environmental marketing area has been firms’ desire to
maintain their competitive position. In many cases firms observe competitors
promoting their environmental behaviours and attempt to emulate this behaviour.
In some instances this competitive pressure has caused an entire industry to modify
and thus reduce its detrimental environmental behaviour.

For example- it could be argued that Xerox’s “Revive 100% Recycled paper” was
introduced a few years ago in an attempt to address 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 beginning to realize that they are members of the wider community
and therefore must behave in an environmentally responsible fashion. This
translates into firms that believe they must achieve environmental objectives as
well as profit related objectives. This results in environmental issues being
integrated into the firm’s corporate culture.
There are examples of firms adopting both s

trategies. Organizations like the Body Shop heavily promote the fact that they are
environmentally responsible. While this behaviour is a competitive advantage, the
firm was established specifically to offer consumers environmentally responsible
alternatives to conventional cosmetic products.

5. Cost or Profit Issues:

Firms 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 oil are becoming increasingly costly and in some
cases difficult.

Therefore firms that can reduce harmful wastes may incur substantial cost savings.
When attempting to minimize waste, firms are often forced to re-examine their
production processes. In these cases they often develop more effective production
processes that not only reduce waste, but reduce the need for some raw materials.
This serves as a double cost savings, since both waste and raw material are

reduced.

Green Marketing – 4 Benefits and Advantages

Today’s consumers are becoming more and more conscious about the environment
and are also becoming socially responsible. Therefore, more companies are
responsible to consumers’ aspirations for environmentally less damaging or neutral
products. Many companies want to have an early mover advantage as they have to
eventually move towards becoming green.

Some of the advantages of green marketing are:

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.

Green Marketing – 4 Popular Challenges: Need for Standardization, New

Concept, Patience and Perseverance and Avoiding Green Myopia

Challenge # 1. Need for Standardization:

It is found that only 5% of the marketing messages from “Green” campaigns are
entirely true and there is a lack of standardization to authenticate these claims.
There is no standardization currently in place to certify a product as organic.
Unless some regulatory bodies are involved in providing the certifications there
will not be any verifiable means. A standard quality control board needs to be in
place for such labelling and licensing.

Challenge # 2. New Concept:

Indian literate and urban consumer is getting more aware about the merits of green
products. But it is still a new concept for the masses. The consumer needs to be
educated and made aware of the environmental threats. The new green movements
need to reach the masses and that will take a lot of time and effort.

By India’s ayurvedic heritage, Indian consumers do appreciate the importance of

using natural and herbal beauty products. Indian consumer is exposed to healthy
living lifestyles such as yoga and natural food consumption. In these aspects the
consumer is already aware and will be inclined to accept the green products.

Challenge # 3. Patience and Perseverance:

The investors and corporate need to view the environment as a major long-term
investment opportunity, the marketers need to look at the long- term benefits from
this new green movement. It will require a lot of patience and no immediate
results. Since it is a new concept and idea, it will have its own acceptance period.

Challenge # 4. Avoiding Green Myopia:

The first rule of green marketing is focusing on customer benefits i.e. the primary
reason why consumers buy certain products in the first place. Do this right
motivate consumers to switch brands or even pay a premium for the greener
alternative. It is not going to help if a product is developed which is absolutely
green in various aspects but does not pass the customer satisfaction criteria. This
will lead to green myopia. Also if the green products are priced very high then
again it will lose its market acceptability.

Sustainable development
Green marketing refers to the process of promoting products or services based on
their environmental benefits. Such a product or service may be environmentally
friendly in itself or produced in an environmentally friendly way. This can include
products:

 Manufactured in a sustainable fashion

 Not containing toxic materials or ozone-depleting substances
 Produced from recycled materials and/or able to be recycled
 Made from renewable materials (such as bamboo, etc.)
 Not making use of excessive packaging
 Designed to be repairable and not "throwaway"

Definition

Green marketing is the process of promoting products or services based on their

environmental benefits.

Green Marketing and Sustainable Development

Green marketing is typically practiced by companies that are committed

to sustainable development and corporate social responsibility. More organizations
are making an effort to implement sustainable business practices as they recognize
that they can make their products more attractive to consumers and also reduce
expenses in packaging, transportation, energy and water usage, and more. Besides,
businesses are increasingly discovering that demonstrating a high level of social
responsibility can increase brand loyalty among socially conscious consumers.1

The key barrier to sustainable business practices such as green procurement is the
short-term cost. Going green will typically cost you more up front, but generate
great rewards in the long run.2

Will Customers Pay More for Green Products?

The obvious assumption of green marketing is that potential consumers will view a
product or service's "greenness" as a benefit and base their buying decision
accordingly. The not-so-obvious assumption is that consumers will be willing to
pay more for green products than they would for a less green, comparable
alternative product. Is this true? 

Apparently, yes. Consider the following data, published by Nielsen in 2018:

  48% of U.S. consumers say they would definitely or probably change
consumption habits to reduce environmental impact.
 Products with sustainable attributes have been steadily taking more share of
store sales, from 19.7% in 2014 to 22.3% in 2017, to an anticipated $25% in
2021.
 90% of millennials, the generation leading the sustainability charge, say they
are willing to pay more for products that contain sustainable or
environmentally friendly ingredients.3

A previous Nielsen survey also looked at retail purchase statistics, and according to
sales data, brands that advertised sustainability on their packaging had 2% year-
over-year increases in sales from 2011 to 2014, as compared with 1% for those that
did not. Brands that promoted acting sustainability through their marketing saw a
sales increase of 5%.4

Green marketing can be a very powerful marketing strategy when it's done right.

Misrepresentation Can Backfire

While green marketing is growing, it can be dangerous. The public tends to be

skeptical of green claims to begin with, and companies can seriously damage their
brands and their sales if a green claim is discovered to be false or contradicted by a
company's other products or practices. Presenting a product or service as green
when it's not is called greenwashing.

For example, in 2012 a CBC Marketplace study found that Dawn Antibacterial
dish soap, which featured a label showing baby seals and ducklings and claiming
that "Dawn helps save wildlife," was found to contain Triclosan, which has been
officially declared toxic to aquatic life.5

Seaworld Orlando's introduction of its "Cup That Cares" in 2013 was another
dismal example of green marketing gone wrong. The cup was marketed as
environmentally friendly—each time a person refilled the cup at a vending
machine in the park, an embedded chip would display how much carbon dioxide
they had saved. These claims were never substantiated. Further, the cup—and the
40 accessories that could be purchased with it—was plastic, not a favorite of
environmental advocates.6
For green marketing to be successful, it has to fit with your brand. Having a single
green product when the rest of your products are not, for instance, can make
customers wonder about your environmental commitment.

In other words, authenticity is essential in green marketing.

Examples of Green Marketing

There are plenty of companies practicing green marketing. Here are just a few
examples:

 Grocers that advertise organic produce. Organic food sales have more than
doubled since 2010 as consumers increasingly prefer non-genetically
modified foods that are free of pesticides.7
 Restaurants that promote "locally sourced" meats, vegetables, fish, wines,
and more. Local sourcing is attractive to consumers as it projects an image
of sustainability and willingness to invest in the community.8
 Toyota's marketing of the Prius hybrid. The Prius is the best-selling hybrid
vehicle of al time, mostly because its unique styling reflects the typical
owner's passion for sustainability.9

A Corporate Sustainability Example

PepsiCo is one of the world's largest food and beverage producers with annual
revenues of more than $64 billion and a product line that includes brands such as
Quaker, Gatorade, Pepsi-Cola, and Frito-Lay1 0 . Over the past decade, PepsiCo has
become a leader among corporations in water conservation and energy usage. In
2012, PepsiCo received the Stockholm Industry Water Award in recognition of its
efforts to reduce water and energy usage across all of its business operations, from
supply chains to factories. The company continues to set the pace for water
conservation among major corporations.1 1 1 2

PepsiCo sustainability efforts include:

 Working with farmers to monitor water usage and carbon emissions and
maximize crop yields.1 2
 Retrofitting factories and corporate offices to improve energy efficiency,
such as the 300-plus-employee Casa Grande Frito Lay facility in Arizona.
The facility generates half the plant's electricity requirements with solar
power, water is recycled to drinking standards, and waste is recycled
 wherever possible. The facility is one of over 20 other PepsiCo sites certified
to LEED sustainability standards.

When shoppers enter the grocery store to stock up on the week's meals, there are
typically several thoughts that cross their minds. For one, what does the product
cost? Secondly, are there any specials available that could change their shopping
lists?

More recently, shoppers are asking additional questions on their weekly shopping
excursions: is the product environmentally friendly? Is the product organic? Is it
worth the extra cost?

In this article...

What is green marketing?

Who employs green marketing?

For what kinds of customers is green marketing effective?

How is a green marketing campaign developed?

What career titles work with green marketing strategies?

While different agencies and organizations offer various definitions of green

marketing (sometimes called environmental marketing, or eco-marketing), they
generally agree that it is the marketing of products and companies that promote the
environment in some substantial way. Some definitions look for environmentally
“safe” or “sustainable” production, while others seek to reduce a company’s
“carbon footprint.”

In either case, green marketing involves more than simply presenting an

environmentally friendly product. It also speaks to, and actively promotes, a
company’s processes and business practices as having low environmental impacts.

Some business practices, such as reducing production waste or energy costs, are
good for both the environment and business profitability (See also Ethical
Marketing). Adopting such practices may or may not be perceived as “green,”
depending upon consumer perceptions of other aspects of the business. However,
these actions can still be positioned as the company “doing its part”—promoting
positive reactions toward the company.
Since all product production involves the consumption of energy and the
production of some amount of waste, any company could potentially participate in
green improvements and marketing. In practice, however, different companies
participate in green marketing based on their estimation of its dollar and non-dollar
value, with some businesses devoting their mission statements to green practices.
Some leaders in green marketing include:

use recycled materials in product production

use green energy (such as wind and geothermal)

reduce production waste (in both energy and materials)

use eco-friendly methods, including sustainable and organic agriculture

buy/sell locally, reducing transportation energy

reduce product packaging

make products reusable and recyclable

Ben and Jerry’s was one of the first brands to make green values part of its mission
statement. The ice cream promotes natural ingredients and business practices that
promote the health of the earth. Its parent company, Unilever, which manages
more than 400 brands, has halved its greenhouse emissions in the last 15 years,
while producing products that are eco-friendly and using packaging that is either
easily recyclable or biodegradable.

Whole Foods is an organic food supermarket that not only sells green foods, but
also advocates for green practices by promoting wind energy, biodegradable food
packaging, and water conservation. (See also Marketing Organic Products)

Starbucks has long been a promoter of sustainable coffee-growing practices,

paying a premium price to encourage farmers to adopt more environmentally-
friendly practices. Its Shared Planet initiative promotes environmental
responsibility among its stores, employees, and customers.
Johnson and Johnson is the second-largest corporate user of solar power in the
United States, and has been working consistently over the past 20 years to reduce
production wastes. In January 2011 it launched a business plan to become the most
environmentally responsible company in the world.

Method was created specifically to produce and market environmentally friendly

household products, such as non-toxic cleaners and reusable household products.
The company employs environmental chemists to evaluate their materials before
including them in any product.

Timberland rates each of the shoes it sells based upon its environmental impact.
Additionally, it redesigned its stores to use 30 percent less energy than before.

One of the challenges faced by green leaders is increased scrutiny. In balancing

trade-offs between environmental goals and business profitability—which is
ultimately necessary if the business is going to continue to exist—even a green
leader can be perceived as being “not green enough” in some of its decisions.
Thus, a company like Starbucks is both celebrated for its business practices, and
criticized by others for gaining fame when it could be doing more (in the critics’
estimation, at least).

A majority of polls indicate that consumers favor green products, and are willing to
pay more for them. However, the fact is that higher-priced green products have
always struggled for market share. In many industries they garner only 3 percent of
total market share in the consumer market; in business-to-business markets, green
marketing often commands greater results. This does not mean that the majority of
purchasers do not care about green marketing, but it does mean that they also care
about other competitive value propositions, including quality, convenience, and
cost.

The National Marketing Institute estimates that about 80 percent of consumers are
engaged by green marketing at some level, with about 17 percent of consumers
highly engaged. This consumer group, referred to as LOHAS (Lifestyles of Health
and Sustainability), are those most likely to pay a premium for green products. As
a group, they are more affluent and better educated than the general population. A
related market segment, designated Naturalites, constitute an additional 19 percent
of the population. This group (also more affluent and educated than the general
population) is interested in green products as they appeal to health considerations.
They are highly likely to buy organic foods, but are less interested in green
marketing for durable products.

Highly price-sensitive consumers are the least responsive to green marketing. For
those with less disposable income, being thrifty with their money becomes a more
immediate concern. Green marketing therefore faces a particular challenge in times
of economic slowdown, as price becomes a bigger factor in consumers’ purchasing
decisions.

Green marketing requires a holistic approach. A company cannot succeed simply

by highlighting a green aspect of a particular product, but must demonstrate a
commitment on multiple levels, such as in production processes or environmental
engagement. Customers are particularly skeptical of many green claims; they know
that businesses seek profit and aren’t above “greenwashing” their everyday
business to make it appear environmentally friendly when it’s of no real concern to
them. For example, a hotel asking customers to “save the environment” by reusing
towels to conserve water will not likely be perceived as green; instead, they’ll be
seen as trying to use green rhetoric to save on washing expenses.

Green Seal

Ecologo
MBDC cradle to cradle

SMART certification by MTS

USDA Organic—organic foods

Forest Stewardship Council—wood and paper products

Therefore one of the first challenges of effective green marketing is establishing

credibility through a comprehensive plan. First, green marketing has to be
business-wide. It does no good to advertise the green properties of a product if the
company’s production and distribution entirely ignore environmental concerns.
Second, it has to be honest; unsubstantiated claims should be avoided. Third, it
should be transparent. Consumers need information about a business to evaluate its
claims and reputation; therefore, the business should promote awareness of its
products’ histories, including origin and manufacturing. Fourth, a product can be
certified green by a third party (see Popular Green Certifications). Some
companies do self-certification; however, for that to be credible, a third party needs
to be able to review and approve their certification processes.

There are many options for green certification—some 400, at least—with some
devoted to single qualities (made from recycled components, or being energy
efficient) and others evaluating multiple attributes. The most intense certifications
involve Life Cycle Assessments, which examine the methods and energy that goes
into producing a product, the product itself, and the future consequences of the
product (such as its length of use, and if it can be recycled). If materials for a
particular product must be purchased from another company, some life-cycle
assessments will extend their evaluation to that company’s processes as well.

In pursuing any type of green certification, companies should avoid “rubber

stamp” certifications, or trying to pass off internal certification as a third-party
endorsement. Such tactics may have an initial pay-off, but are bound to result in
backlash. In addition, green messaging on products should be clear. A statement
like “ingredients include biodegradable surfactants (anionic and nonionic) and
enzymes” (found on a Tide bottle) can provoke more skepticism than confidence.
“Green” can encompass many things—water/land conservation, recycling, non-
toxic chemicals, reduced carbon footprint, sustainable agriculture—so it’s
important to identify how exactly a particular product or brand is green. (See also
Marketing Laundry Detergent)

Marketers must also remember that green virtues compete against other factors
(such as quality and price), and generally cannot be sold on their own. Effective
individual product marketing will focus on direct benefits (like health) first, adding
the environmental benefits as icing on the cake. Meanwhile, marketers must make
sure that these environmental benefits do not compromise the product’s value. For
example, when SunChips offered a new bag that composted easily, but produced
more noise (enough to interfere with television-watching), consumers rejected the
product. To them, the value of eating chips from the bag without noise was more
important than the value of composting the bag.

Finally, marketers must make sure that green products are being delivered to the
right markets. For example, higher-priced green products are not likely to sell well
in Walmart stores, where the average customer has only $65 dollars a week for
groceries. However, they may sell extraordinarily well in an upscale San Francisco
neighborhood, where residents have more disposable cash in addition to a local
culture that promotes environmental consciousness.

Marketing Managers direct green campaigns and integrate them with overall
business strategy.

What do they do?

Marketing Manager

Median annual pay: $116,010

Top earners: $187,199+

Market Research Analyst

Median annual pay: $60,570

Top earners: $111,440+

Public Relations Manager

Median annual pay: $52,090

Top earners: $95,200+

Source: U.S. Bureau of Labor Statistics

market the green message through advertising

promote the green aspect(s) of the company brand

initiate market research, and use the results to recommend green product
improvements and initiatives

make recommendations for green product packaging, including representation of

green certifications and value claims

make recommendations on improving the green aspect of upstream processes (such

as resource extraction) and downstream effects (such as reusability and recycling)

Education and experience

Most marketing managers have at least a bachelor’s degree (often in marketing,

advertising, or business management), as well as demonstrated experience in their
industry. Experience in buying and/or distribution is a plus for applying green
marketing to those aspects of the business. Education preparing them for this
career includes classes in marketing, market research, statistics, and consumer
behavior. Additionally, future marketing managers often pursue and complete an
internship while in school.

Market Research Analysts gather data about the demand for green products and
solutions.
What do they do?

use a variety of methods (including interviews, questionnaires, and focus groups)

to gather data on customers’ perceptions of the greenness—and trustworthiness—
of a company’s products and brand

identify the demand for a green product in terms of how much more customers are
willing to pay for the product’s green qualities

identify which green qualities (i.e. low energy use, low carbon footprint,
sustainability, recycling, composting) are of the greatest value to consumers

analyze data, employing statistical methods and software; and communicate

findings to their organization, using charts, graphs, and other means

Education and experience

Market research analysts need at least a bachelor’s degree in market research or

related field, such as statistics or computer science; many jobs also require a
master’s degree, particularly for leadership or advanced research positions.
Specific research experience in green methodology is also important when
applying to a green company or green campaign.

Public Relations Managers represent the company’s brand and (in this case, green)
values.

What do they do?

write press releases regarding the company’s green initiatives and solutions
draft speeches for executives to promote the green aspects of the company’s
development

identify customers’ information channels, monitor media coverage, and respond to

questions from consumers and the media

frame external communications so that company initiatives are perceived as

authentically green, as opposed to being merely “greenwashing”

Education and experience

Public relations managers need at least a bachelor’s degree (about a quarter also
have a master’s degree), usually in public relations or communications, and often
with a minor in advertising, business management, or marketing. Their work
experience often begins with an internship, then moves on to supporting more
experienced staff members, before getting work on their own account(s).
Necessary skills include excellent writing ability, and an understanding of both
public and organizational communications.

Effective green marketing requires not only the ability to communicate a green
message, but also the ability to research, analyze, plan, and coordinate the diverse
components of that message in a profit-driven business environment. A good
marketing program can equip you with the skills and knowledge you need to
accomplish these tasks.

Courses in research methodology and analytics will teach you how to organize data
on which to base your campaigns. You’ll learn to use data collected directly from
consumers as well as data collected from the market, in terms of sales, expenses,
etc.—and learn how to account for apparent discrepancies. You’ll also learn how
to develop predictive models in order to select the best campaign strategies.
Your marketing program will also emphasize and develop communication skills.
You’ll learn how to use both verbal and graphic messages, and how to adapt your
message to the audience, including consumers, other businesses, and executives in
your company. Additional classes at a marketing school will teach about aspects of
business organization and management, including purchasing and distributing—
both important components in developing a holistic green campaign.

To learn more about what a marketing school can do for you, request information
from schools with degrees in marketing, and see how you can promote both
business and environmental goals in a greener market.

Five Green Marketing Strategies

As consumers become more environmentally conscious, businesses must adapt or
risk losing customers to competitors pursuing a green strategy. As a company
tries to rebrand itself as green, it risks accusations of "greenwashing" or using
marketing tactics to create a false impression of environmental responsibility.
Small businesses seeking to leverage the power of "going green" should carefully
coordinate genuine actions and marketing strategies.

Electronic Press Kit

For businesses with regular media contact, an electronic press kit puts a big dent
into paper usage. Press kits typically include a company history, product
brochures, biographies of the company executives, photos and press clips.
Companies often send a press kit to every media outlet in the area. A business
could convert all of the documents and images into electronic files and offer the
kit as a downloadable folder on its website. The electronic press kit requires no
paper and no postage. The website could even indicate that the electronic press
kit is part of an ongoing effort to reduce the business' environmental impact.

Green Packaging

Packaging that cannot biodegrade takes up enormous amounts of space in

landfills. A business that manufactures and packages products can convert to eco-
friendly packaging. Converting to biodegradable packaging provides customers
with a visible symbol of the company's commitment to "going green." The
business can also leverage the eco-friendly packaging as part of its advertising
program to help draw in new environmentally conscious customers.

Electric/Hybrid Vehicles

Small-business owners often serve as the most visible representative of the

business itself. In effect, their public personas function as marketing for the
business. If a small business owner tries to rebrand the business as green, but
drives a fuel inefficient truck or SUV, the green marketing effort seems
deceptive. Switching over to an electric or hybrid vehicle serves as another
visible reminder that the business pursues a green policy.

Public Declaration

A very simple type of green marketing is to make a public announcement,

through a press release for example, that the business will pursue green policies.
The announcement should include details about the specific changes the business
will make and on what time frame. If the changes go off as planned and,
particularly, if they reap benefits like reduced costs, follow public declarations
about the change can help to solidify the public perception of the business as
green.

E-Newsletters

Many businesses offer monthly newsletters to their customers. A business can cut
paper waste and printing costs, while providing equal or greater levels of content,
by shifting over to e-newsletters. In this case, the newsletter itself serves as
marketing for the business and the delivery method functions as an easy way to
go green.

REACTIONS TO "GREEN CONSUMERISM"

A number of factors have caused business firms in some industries to incorporate an

environmental ethic into their operations. The principal factor, of course, is the

growing public awareness of the environmental degradation that has resulted as a

consequence of the growth in population and natural resource consumption

throughout the world during the last 50 years. The issue is particularly relevant in

America, which accounts for fully one quarter of world consumption despite having

only a small fraction of the world's population. This growing public awareness of

environmental issues has brought with it a corresponding change in the buying

decisions of a significant segment of American consumers. Many consumers, and not

just the most environmentally conscious, have begun in recent years to incorporate

environmental concerns in their personal buying decisions through the purchase and

use of products and services perceived to be more environmentally friendly. In some

cases, changes in commodity availability have been the motivation behind such shifts

in purchasing patterns. For example, the gas price increases seen in 2004 and 2005

caused a sharp decline in sales of sport utility vehicles (SUVs) in favor of hybrid and

other flexible-fuel vehicles.

Businesses took heed of this growth in "green consumerism," and new marketing

campaigns were devised to reflect this new strain of thought among consumers.

Companies with product lines that were created in an environmentally friendly

fashion (i.e., with recycled products, comparatively low pollutant emissions, and so

on) quickly learned to shape their marketing message to highlight such efforts and to

reach those customers most likely to appreciate those efforts (an advertisement

highlighting a company's recycling efforts, for instance, is more likely to appear in an

outdoor/nature magazine than a general interest periodical).

Ironically, the most environmentally aware consumers are also the ones most likely to

view green claims of companies with skepticism. The attempt to portray oneself as

"green" may fall flat if they are perceived to be false advertising, particularly among

those most educated about environmental issues. Corporate reputation, then, has

emerged as a tremendously important factor in reaching and keeping these consumers.

A company that touts its sponsorship of an outdoor-oriented event or utilizes nature

scenery in its advertising, but also engages in practices harmful to the environment, is

unlikely to gain a significant portion of the green consumer market. Of course, such

tactics are sometimes effective in reaching less informed sectors of the marketplace.

GREEN PRODUCTS
In their book The Green Consumer, John Elkington, Julia Hailes, and John Makower

discussed several characteristics that a product must have to be regarded as a "green"

product. They contended that a green product should not:

  Endanger the health of people or animals

 Damage the environment at any stage of its life, including manufacture,

use, and disposal

 Consume a disproportionate amount of energy and other resources during

manufacture, use, or disposal

 Cause unnecessary waste, either as a result of excessive packaging or a

short useful life

 Involve the unnecessary use of or cruelty to animals

 Use materials derived from threatened species or environments

J. Stephen Shi and Jane M. Kane, meanwhile, noted in Business Horizons that the

consulting firm FIND/SVP also judged a product's friendliness to the environment by

ultimately simple measurements: "FIND/SVP considers a product to be 'green' if it

runs cleaner, works better, or saves money and energy through an efficiency.

Businesses practice being green when they voluntarily recycle and attempt to reduce

waste in their daily operations. Practicing green is inherently proactive; it means

finding ways to reduce waste and otherwise be more environmentally responsible,

before being forced to do so through government regulations. Green promotion,

however, requires businesses to be honest with consumers and not mislead them by

over promising."
Life Cycle Analysis
Most analysts agree that the "life" of the product and its parts is one of the most

important components in determining whether a product is "green" or not. Most

people think only of the process of creating a product when gauging whether a

product is green, but in reality, products impact on the environment at several

additional stages of their useful lives. Life cycle analysis (LCA) and/or product line

analysis (PLA) studies measure the cumulative environmental impact of products over

their entire life cycle—from extraction of the resources used to create the product to

all aspects of production (refining, manufacturing, and transportation) to its use and

ultimate disposal. These studies are sometimes referred to as "cradle to grave" studies.

Since such studies track resource use, energy requirements, and waste generation in

order to provide comparative benchmarks, both manufacturers and consumers can

select products that have the least impact upon the natural environment. Some

detractors of LCA studies, though—while granting that they do provide useful

information—contend that they are subjective in setting analysis boundaries and claim

that it is difficult to compare the environmental impact of disparate products.

GREEN PROMOTION
Perhaps no area of green marketing has received as much attention as promotion. In

fact, green advertising claims grew so rapidly during the late 1980s that the Federal

Trade Commission (FTC) issued guidelines to help reduce consumer confusion and

prevent the false or misleading use of terms such as "recyclable," "degradable," and

"environmentally friendly" in environmental advertising. Since that time, the FTC has

continued to offer general guidelines for companies wishing to make environmental

claims as part of their promotional efforts:

 Qualifications and disclosures should be sufficiently clear and prominent

to prevent deception.
  Environmental claims should make clear whether they apply to the

product, the package, or a component of either. Claims need to be qualified

with regard to minor, incidental components of the product or package.

 Environmental claims should not overstate the environmental attribute or

benefit. Marketers should avoid implying a significant environmental

benefit where the benefit is, in fact, negligible.

 A claim comparing the environmental attributes of one product with those

of another product should make the basis for the comparison sufficiently

clear and should be substantiated.

The FTC regulations apply to all aspects and forms of marketing, including labeling,

advertising, and promotional materials. "When a business makes any environmental

claim, it must be able to support that claim with reliable scientific evidence,"

summarized Shi and Kane. "A corporation trumpeting an environmental benefit that it

is unable to substantiate is treading on thin ice and leaving itself open to substantial

penalties if a legal suit is brought against the company."

In addition to delineating marketing claims that might be regarded as false or

misleading, the FTC also provides guidance to businesses on how to make specific

claims about environmentally-friendly aspects of their operation, in part by clarifying

the definitions of such commonly used terms as "recyclable," "biodegradable," and

"compostable."
"Organic" is another term commonly used in marketing. Its popularity has grown with

the growing demand for organic agricultural products. For a company to promote and

label a product as organic, that product must meet the strict guidelines established by

the Department of Agriculture (USDA). The guidelines for both production and

labeling of organic agricultural goods are laid out in the USDA's National Organic

Program Web site located at http://www.ams.usda.gov/nop/indexIE.htm.

The popularity of green products created a need to regulate and standardize claims

about the environmental characteristics of products. Many regulatory guidelines were

issued (and remain in force) to accomplish this job. They are designed not only to

curb businesses engaged in misleading advertising practices, but also to clarify the

regulatory environment for companies and make it easier for the consumer to

differentiate between products that are truly "green" and those that are not.

ECO-SPONSORING

One avenue commonly used by companies to promote their specific ecological

concerns (or polish their overall reputations as good corporate citizens) is to affiliate

themselves with groups or projects engaged in environmental improvements. In the

simplest form, firms engaged in eco-sponsoring activities contribute fund

directly to an environmental organization to further the organization's objectives.

Another approach is to "adopt" a particular environmental cause (community

recycling programs are popular), thus demonstrating the company's interest in

supporting environmental protection efforts. Sponsorships of educational programs,

wildlife refuges, and park or nature area clean-up efforts also communicate concern

for environmental issues. Environmental organizations charge, however, that some

businesses use eco-sponsorships to hide fundamentally rapacious attitudes toward the

environment.

ECO-LABELING

Another vehicle that has been used with increasing frequency in recent years to

convey environmental information to consumers is "eco-labeling." Eco-labeling

programs are typically voluntary, third-party expert assessments of the environmental

impacts of products. Two firms that are involved in such third party label verification
work are Green Seal and Energy Star.

Eco-labeling programs increase awareness of environmental issues, set high standards

for firms to work towards, and help reduce consumer uncertainty regarding a product's
environmental benefits. Thus far, however, the U.S. government has resisted

instituting an officially-sanctioned eco-labeling program.

THE 5 SIMPLE RULES OF GREEN MARKETING

When it comes to shining a spotlight on specific sustainability issues, count on

NGOs and consumer groups to target the most respected and trusted brands in the
world. Overnight issues will make front pages and leaders will be pressed to make
changes. The list of recent targets reads like a Who's Who of branding: Home
Depot (sustainable harvested wood), Nike (child labor practices), McDonalds
(Styrofoam clamshells and now obesity), and Coke (sugar and packaging). What
does this all mean for your business? Simply stated, if you don't manage your
business with respect to environmental and social sustainability, your business will
not be sustained!
But the converse is true, too: A strong commitment to environmental sustainability
in product design and manufacturing can yield significant opportunities to grow
your business, to innovate, and to build brand equity. All you have to do is get the
word out...right?
As with any other major business endeavor, easier said than done. Many a
responsible company has run into trouble with these very same sustainability
minded NGOs and consumer groups thanks to a poorly planned and crafted
marketing message. Protect your company from these common pitfalls and start
taking advantage of new opportunities by heeding my Five Simple Rules of Green
Marketing:
1. Know your customer. If you want to sell a greener product to consumers, you
first need to make sure that the consumer is aware of and concerned about the
issues that your product attempts to address. Whirlpool is just one company that
learned this lesson the hard way. Even after winning a $30 million "golden
Carrot" prize for being first to market with a CFC-free fridge, they discovered that
consumers wouldn't pay the premium because they didn't know what CFCs were -
and there were no other value-added benefits.
2. Empower consumers. Make sure that consumers feel, by themselves or in
concert with all the other users of your product, that they can make a difference.
This is called "empowerment" and it's the main reason why consumers buy greener
products. This powerful principle underlies so many campaigns laden with tips.
3. Be transparent. Consumers must believe in the legitimacy of your product and
the specific claims you are making. Caution: There's a lot of skepticism out there
that is fueled by the raft of spurious claims made in the "go-go" era of green
marketing that occurred during the late 80s-early90s - one brand of household
cleaner claimed to have been "environmentally friendly since 1884"!
4. Reassure the buyer. Consumers need to believe that your product performs the
job it's supposed to do. They won't forego product quality in the name of the
environment. (Besides, products that don't work well will likely wind up in the
trash bin, and that's not very kind to the environment.)
5. Consider your pricing. If you're charging more for your product - and many
environmentally preferable products cost more due to economies of scale and use
of higher-quality ingredients - make sure that consumers can afford the premium
and feel it's worth it. Many consumers, of course, cannot afford premiums for any
type of product these days, much less greener ones, so keep this in mind as you
develop your target audience and product specifications.

The "Rules" In Action

Let's take a look at some eco-designs (improvements over existing products), and
eco-innovations (new types of products) that do a great job of winning over green
consumers while grabbing market share.
Tom's of Maine
The husband and wife team of Tom and Kate Chappell created this full line of
personal care products about 30 years ago. Ten or so years later, the brand broke
out of the "deep green" niche to achieve distribution in CVS, Duane Reade and
other mainstream drug outlets. The company is now owned by Colgate-Palmolive,
(representing just one of many "deep green" brands that are increasingly being
purchased by mainstream marketers. Others include: Estee Lauder's purchase of
Aveda, Danone's partial purchase of Stonyfield Farm, and Unilever's acquisition
of Ben and Jerry's ice cream are just a few other examples.)
The messages on the sides of the Tom's of Maine toothpaste carton are just one
reason for their success in winning over green consumers. On one panel, check out
the letter from Tom and Kate stating their company's mission. Signing the letter
lets customers know there really is a Tom, there really is a Kate - just like there
really is a Ben and there really is a Jerry, i.e., two real live people "minding the
store" and staking their personal reputations on the quality of their products.
(Refer to their website to see a similar letter http://www.tomsofmaine.com/about/
from Tom and Kate.)
Another panel lists all of the ingredients in the toothpaste - all natural spearmint
oil for instance, and next to each ingredient is the role each of the ingredients
plays in the toothpaste. There's even a third column that lists from where each
ingredient is sourced. (Refer to their website for an in-depth look
http://www.tomsofmaine.com/toms/ifs/at the ingredients in all Tom's of Maine
products.)
This is unprecedented in the history of consumer goods! Can you do this with your
product's ingredients? How many of them contain warning labels? (Crest and
Colgate each do.) underscores credibility and trust For Tom's, listing the
ingredients, e.g., natural spearmint oil, helps get consumers over any price
barriers at the point of sale and. They are choosing a brand with natural
ingredients and recognize that it must come with a price.
Toyota Prius
Toyota's Prius is likely the most successful "green" product in the world today
(along with the ubiquitous CFL). And for many good reasons. First, it provides
consumers with all they seek in a sedan and more - attractive styling, fuel
efficiency, the ability to drive for an unlimited amount of miles only stopping for
fill-ups (versus, for instance, having to stop for a
12-hour recharge if the engine were only electric). Because of the hybrid engine,
the car is beloved by car enthusiasts for its quiet ride. Examine the dashboard a
note a most unusual feature: a screen that lets the driver know which of the two
engines is in use and how much fuel efficiency is being had at any 
given moment; anecdotes report that Prius owners try to beat their previous
record each time they drive!
When the car was introduced, ads focused on superior performance evidenced in a
quiet ride, while supplemental ads touted its environmental bona fides. With
energy prices on the rise, the Prius the pitch has shifted to superior fuel efficiency,
while a crafty PR machine links the car to environmentally conscious celebrities
and causes. Some owners, it is reported, even buy the car for what is being called
"Conspicuous Conservation" - letting all know that they are environmentally
astute. In fact, as of the second quarter of last year, "Because it makes a statement
about me" was the number one reason owners said they bought their car.
Tide Coldwater
Tide Coldwater is a line extension of Tide that is helping it build brand equity and
staying fresh -and green-in the marketplace. A "Life Cycle Assessment"
commissioned by Procter and Gamble found that 80%-85% of the energy used to
wash clothes comes from heating the water. P&G calculated that U.S. consumers
could therefore save $63 per year by washing in cold water rather than warm. So,
with the proviso that they could persuade consumers that coldwater washing was
efficacious, they positioned the product as a way to save on energy bills.
Marketing efforts first reassured consumers of the product's efficacy. Then, on a
special website designed to empower consumers, visitors could calculate the
amount of energy they could save personally and in conjunction with all the others
who took the same "Tide Coldwater Challenge".
Advertising showed how long major U.S. landmarks such as the Empire State
Building could be lit with the energy that could be saved if all of the consumers in
those cities switched to cold-water washing.
Finally, a website engaged consumers with helpful energy saving tips and
resources, starting with information about switching to Energy Star certified
compact fluorescent lighting. It included tips from the Alliance to Save Energy
environmental group, and encouragements to "Consider buying a Different Kind
of Car" namely, the Prius.
By leveraging word of mouth via the Tide Coldwater Challenge and associating
with notable third parties, any barriers of skepticism were overcome. And Tide
Brand found a fresh new message in step with consumers needs to control rising
energy prices.
Millicare
In 2003, carpet and chemical manufacturer Milliken & Co. was in search of a new
branding strategy for MilliCare, their franchise carpet and textile maintenance
division. Recognizing the rapid growth of the green building industry and
widespread concern over employee health, recruitment, and retention, The
Moderns, New York based branding and design agency, drafted a positioning
document that showed how MilliCare could own "clean" in all of its dimensions -
something MilliCare's competitors weren't doing.
With the help of sustainability experts, MilliCare and The Moderns moved forward
with a brand positioning that articulated the many benefits of sustainable
maintenance and set up MilliCare to speak not just to facility managers, but also
to architects and designers, developers, human resource professionals and CEOs.
In so doing MilliCare's brand recognition was significantly enhanced nationwide.
In addition to a significant increase in telephone inquiries, new business
opportunities, and sales (up 30%), MilliCare has extended their national network
by increased franchise partner recruitment. More partners have joined the
franchise in the last two years than joined the six years prior.
The new positioning for MilliCare was captured with a new identity, tagline,
stationery, training manual, presentation tools, modular marketing kit, product
packaging, uniforms, vehicles, signage, franchise office design and tradeshow
design.
To counter the fact that maintenance service is done at night (in absentia) and as a
result is essentially invisible, various promotional initiatives were developed
including sponsoring a book entitled, Green Clean, the Environmentally Sound
Guide to Cleaning Your Home, a community "Clean Up" program sponsored by
local Millicare franchisees, and an "on-the-ground" presence with branded
vehicles which acted as a compelling billboard promotion and resulted in a
significant increase in telephone inquiries and new business opportunities.
Publicity efforts on behalf of MilliCare were multidimensional and impactful. The
new brand was launch at World Workplace 2004, the premier trade show for the
company's primary audience of facility management professionals. Subsequent
efforts have included strategic placement of bylined articles in trade magazines to
support the company's thought-leader positioning; pitching feature stories in
vertical market publications to introduce the concept of sustainable carpet and
textile maintenance in such industries as education and long-term care; and local
and regional business coverage to promote the brand and its individial
franchisees.
Internal Communications. An important step in the rebranding of MilliCare was
gaining the acceptance and buy-in of the organization's 80+ franchisees. A
comprehensive rollout campaign included an interactive game to create intrigue, a
series of launch events to provide education and a monthly e-newsletter to
reinforce brand messages. As a result, the external launch saw nearly flawless
implementation of brand standards, from incorporating new materials to
revitalizing the entire sales process.
Method Line of Household Cleaning, Laundry and Personal Care Products
The environmental movement is about doing things differently. Method is a brand
that is trying to express this "differentness" in nearly every way possible, starting
with how the product looks and smells. The bottle for the dish soap (pictured)
looks like an upside down teardrop. It was specifically designed by a well known
fashion designer Karim Rashid so consumers would feel comfortable leaving it
right at kitchen sink, helping the user project a sort of status to visitors.
The product label sports a very understated lower case "m" in a circle, with
"method" also in lowercase just beneath. No splashy lettering. No flashy starbursts
like those that were designed to capture consumers' attention at mainstream store
shelves. What attracts consumers to this product is the distinctiveness of the
package shape and the unique coloring of the product inside. This product may
look expensive, but it actually sells at competitive prices at Target, Office Depot
and Safeway.
Method doesn't advertise. They attract consumers via strong price value and word
of mouth that is generated in a number of highly effective ways, starting with the
uniqueness of the product itself. Visit their website and read how they tell visitors
what they stand for: A page each is devoted to the elements of the Method
"mantra": Efficacy, Safety, Environment, Design (do your brands consider
design?), and Fragrance. (In-home interviews I conducted for a client recently
attested to the importance of light scent to this brand's purchasing decision.) Do
your brands have mantras - or simply a list of benefits or possibly just a marketing
and creative strategy?
Another thing you'll find at their website is a campaign called "I Fight Dirty."
(Note the "anti" tone.) This campaign empowers users to not only fight against dirt
itself, but also dirty practices by industry. Thus, its captures the essence of what
the brand is about from both the functional as well as emotional standpoints.
(Another breakthrough.)
Refer to their website http://methodhome.com to see a sample of a newsletter that
is sent to consumers who sign up. Recent issues have proffered tips on how to
compost Christmas trees, locate brands of reusable diapers, save pristine beaches
by fighting dumping in oceans of plastic laundry bottles. The website talks about
the places where Method has been spotted - like the "Green Festival" hosted by
Coop America each year. And it even gives visitors the opportunity to buy
merchandise like tee shirts emblazoned with the method name! How many of your
users would wear clothing with your brand's name on it? How many of you would
even think to offer it?

Putting the "Rules" to Work for Your Business

To start capitalizing on the many market opportunities represented by
sustainability, consider the following:
1. Think and act holistically. It is no longer enough to focus on functional benefits
alone.
ASK: What are we making (product or service? Green or not?) How are we
making it?
Who are we working with?
2. Take advantage of the opportunities that green marketing represents to engage
consumers on an emotional level and thus, build brand equity. ASK: how can we
make...our passion and vision relevant and engaging? our consumers into
advocates? How can we empower consumers to make a difference by providing
them with education, infrastructure, events and experiences?
3. The way you communicate will be critical to success (and will help you avoid
"greenwashing"). ASK: How to ensure that our approach is viewed as authentic?
Transparent? Are all stakeholders aware of our intentions and progress? Is our
vision embedded into the fabric of our company?
4. Eco-innovation represents new ways to grow top line sales. ASK: How can we
inspire consumers? What technology and partners do we need to gain access to?
5. Strive for an ideal goal of "Zero" environmental impact. Strive to eco-innovate
rather than simply eco-design. ASK: What would it take to achieve zero
environmental impact and still meet our consumers' needs? Can we make
consumers more "responsible"? It's one thing to design better products and
technologies. But at some point, industry's efforts will only go so far. Achieving
"zero" environmental impact will only come about if changes in consumer
behavior can be made; thus the genius of Toyota's dashboard, and websites that
engage consumers in more responsible forms of behavior.

 Green Marketing Strategy and the Four P's of Marketing

A marketing plan is derived from the company’s vision and integrates an

organization’s overall goals and marketing objectives (what goals they want to
achieve) and strategies (how they are going to achieve them) into a cohesive plan,
typically on an annual basis. The green marketing plan focuses on the ideal
marketing mix to achieve maximum profit potential while adhering to
sustainability principles.

The key elements of the marketing plan are as follows:

 Corporate goals. These are the overall company goals that should be in line
with the company’s vision and long-term strategic plan.
 Objectives. Determine marketing objectives. Objectives should be stated
clearly and should stem from the overall company’s vision and goals.
 Objectives should have specificity, such as to grow to 5 percent market
share.
 Strategies. After objectives are determined, strategies (which are how you
are going to achieve the objectives) should be developed. An example is to
convert all product ingredients to those that are locally sourced to help meet
the objective of minimizing the company’s carbon footprint.
 Tactics. Tactics are the specific means or programs to achieve the strategies
and this includes the four Ps (see the following). One example is identifying
the local suppliers and costs to achieve a buy local strategy.
 Market. Determine what market you are participating in and what stage your
product or service is in its life cycle: development, introduction, growth,
maturity, or decline (see the following sidebar titled “Product Life Cycle”).
For green products especially, there may be opportunity to add a new
dimension to a mature category with a new product benefit. For example, in
the mature category of yogurt, Stonyfield Yogurt (see Chapter 13 "Case:
Strategic Mission–Driven Sustainable Business: Stonyfield Yogurt") was
able to breathe new life into the category when they first launched in 1984
with an organic product. Adding credibility to their sustainable brand was
their “Profits for the Planet” program tactic, which commits 10 percent of
annual profits to individuals and organizations working to restore and
protect the environment.
 Consumer target audience. Identify who is your potential customer. In a
study conducted by OgilvyEarth, there are varying degrees of how “green”
consumers are. From die-hard “super greens” to “green rejecters,” marketers
need to determine who best to target to achieve their marketing objectives.
There are several keys to creating an effective green marketing strategy:

 Understand the market and the underlying values and beliefs of your
consumers and other key stakeholders, and develop a marketing plan that
aligns well with these values and beliefs.
 Make sure that the products and services balance the needs of meeting
consumer’s desires for quality, convenience, and affordability with
sustainability goals.
 Be genuine and radically transparent throughout the marketing mix. In
marketing communication and promotion efforts, actively engage consumers
with issues that are meaningful to them, and listen to them. Give them a
voice.
 Create alliances. Look for sustainable business partners, such as those from
whom you source ingredients or other materials; nongovernmental
organizations (NGOs) that complement your business; and sustainable
industry leaders and other like-minded businesses.
 Measure performance against key metrics and communicate progress.
Radical transparency includes being able to share progress against
sustainability goals with consumers and the community at large.

Sustainable development of green

The marketing mix, also known as the four Ps of marketing, is the combination
of product, price, place (distribution), and promotion. Marketers develop strategies
around these four areas in marketing to enhance branding, sales, and profitability.
The marketing mix forms the foundation for creating a sustainable marketing
strategy. Sustainability marketing, unlike traditional marketing, needs to adhere
well to sustainability principles throughout the marketing mix. This helps to

(1) strengthen the brand identity;

(2) provide credibility; and

(3) ensure honest, truthful communications and radical transparency with

stakeholders, one of the cornerstones of good sustainability marketing principles.
Product

A product is a tangible good or an intangible service that is marketed to a consumer. A

tangible good is something that can be seen, heard, tasted, felt, or seen. Products such as
coffee, milk, biofuel, laundry detergent, and outdoor apparel are all examples of tangible
goods.

Intangible products are mostly service based and provided by someone directly in
contact with customers, such as mutual fund investment services, health care services,
and consulting services. Sometimes the intangible service results in a tangible product,
such as a lawyer providing legal advice in filing for a product patent. The intangible
product is the lawyer’s services, and the tangible product is the patent itself.

When looking at a sustainable-marketed product, consideration should be made for

sourcing of materials, ingredients used, and the manufacturing of the product. This
includes using all natural and organic materials, sourcing local and through fair trade
suppliers, utilizing environmentally friendly materials, and using lean manufacturing
and distribution methods that minimize the company’s carbon footprint. For example,
Unilever (the corporate owner of Ben & Jerry’s) has committed that all ingredients in
Ben & Jerry’s ice cream be sourced through fair trade suppliers and certified as such by
2013.

Companies, both large and small, are undertaking sustainability initiatives. The
most successful companies in doing this sincerely embrace sustainability principles
at its core; set clear and measurable goals; and clearly, transparently, and truthfully
communicate with their stakeholders about the ecological and social impacts of
their products and services. These companies use the four Ps to enhance and fulfill
their sustainable positioning to be true to the vision throughout their marketing
mix.

Seventh Generation is a pioneer in sustainability marketing and a leader in natural

household cleaning products. Deriving its name from the Great Law of the Iroquois
that states, “In our every deliberation, we must consider the impact of our decisions
on the next seven generations,” Seventh Generation has long been practicing
sustainability throughout its marketing mix for over twenty years. Their entire
product line of household and personal care products—from laundry detergents to
baby wipes—are carefully designed and manufactured to minimize their impact on
the environment. Using all natural, renewable, and recyclable resources, Seventh
Generation is working to “help protect human health and the environment.”“Green
Cleaning Products,” Seventh Generation, 

Timberland’s Earthkeepers product line is the company’s most visible effort to put
their environmental values into their products and market it. Products produced
under the Earthkeepers label feature (1) reduced use of harmful chemicals,
including no PVC and water-based adhesives; (2) use of recycled materials,
including plastic bottles made into linings and laces and recycled rubber sole boots
made with up to 30 percent recycled rubber; (3) use of organic materials, including
organic cotton; and (4) use of recycled packaging materials, with all boxes made of
100 percent postconsumer recycled packaging cardboard. Timberland has
implemented eco-labels to communicate information to consumers about the
impacts of their products and has implemented life cycle management to quantify
the environmental impacts of the products that it produce

Another example is General Electric. The company committed to utilizing clean

technologies and reducing their environmental footprint in 2005 with their
ecoimagination program. Since then, a hybrid engine train has been put into
development, a state-of-the-art wind turbine blade has been manufactured, and a
superefficient washing machine and coal-gasification technology have been
introduced. General Electric, in particular, is noteworthy for its pledge to double its
investments in the research and development of environmentally friendlier
technologies. The total budget for research and development went from $700
million in 2004 to $1.5 billion in 2010. General Electric has been consistently
named in the top ten of Global 100 Most Sustainable Corporations
Consumer Target Market Segmentation

A consumer target market (often referred to as a target audience) is a defined set of

consumers who are particularly interested in a product or market, would have
access to it, and are able to purchase it. Market segmentation divides these
audiences into homogenous groups of customers, each of them reacting differently
to promotion, communication, pricing, and other variables of the marketing mix.

Market segments should be formed in a way that differences between consumers

within each segment are as small as possible. This is especially helpful to optimize
marketing budgets, targeting dollars to those most interested in your product to
allow a more effective and efficient marketing plan.

Segmentation can be further defined using demographic, geographic,

psychographic, and behavioral segmentation. Demographic segmentation divides
the market into groups based on variables, such as age, marital status, household
income levels, education, children in household, and occupation. Geographic
segmentation divides a market by location and includes such variables as
population density (urban, suburban, and rural areas) and climate. Psychographic
segmentation classifies consumers based on individual lifestyles, attitudes, and
beliefs. Behavioral segmentation divides consumers by such variables as attitude
toward the product, user status, or user rate.

Within the green market segment, it is important to understand which consumers to

target. Once strictly limited to “tree huggers,” the market is growing. According to
a 2011 study by OgilvyEarth titled “Mainstream Green,” consumers can be
subdivided and segmented behaviorally and psychographically by their level of
“green intensity.” Hardcore green consumers who only purchase sustainable
products are called “super greens” and represent about 16 percent of the market.
On the other extreme are “green rejecters,” those not looking for or interested in
green products, which represent 18 percent of the market. Most of America (66
percent) is in the green middle ground—not hardcore green but not completely
unaware or unappreciative of issues surrounding 

For consumer packaged goods purchases, women are typically the primary target

audience as they still do the bulk of today’s household shopping. Seventh
Generation, a sustainable personal care and household cleaning products
manufacturer, targets the middle green as well as new moms, whom they find to be
especially interested in making the world a better place for their newborns.Romy
Ribitzky, “Seventh Generation Embarks on First Ever National Ad Campaign,” 
conclusion green marketing 

Conclusion Key findings of the study reflect that Industries these days have high
concern for environmental protection and have strong belief that green marketing
can definitely be used as a tool for gaining competitive and sustainable growth.
Some companies are initiating and implementing these practices as a part of their
corporate social responsibility

. However environmental strategy formation and implementation are slowly

making it to the priority lists of Indian corporate. Green marketing should not be
considered as just one more approach to marketing, instead should be pursued with
greater vigour as it has societal and environmental dimensions. With this view
organizations are now aware with the fact that without adopting green in the core
of their strategy they cannot survive in the present competitive era. Automobile
companies are also adopting green to retain their image in the market.

It is quite evident from the findings and discussions that all the three types of
Automobile companies i.e. OEM,

Tier 1 supplier and

Tier 2 supplier

have positive attitude for green philosophy and while initiating and implementing
green marketing practices. It has been also observed that most of the companies are
practicing it from a decade, and some companies have just started a green
marketing practice which indicates an increasing focus on green marketing
practices in automobile and ancillary industries. They had an opinion that
sustainable development through green marketing is the new mantra of success and
growth.

The majority of the automobile companies are partially aware about green
marketing and they have implemented these green marketing practices in any of
the form, including product modification, changes to the production process,
packaging changes, which are less detriment to the environment, developing
environment friendly suppliers ,greening supply chains, use of renewable
resources, considering products complete life cycle from raw material extraction to
disposal – which is less 226 harmful to environment.( cradle to grave approach),
waste minimization and pollution prevention. This research has revealed that, due
to several reasons – regulatory pressures from government, competitive forces,
technological developments, influences the action of automobile and ancillary
firms to ensure they are going green in new product development, product
modification packaging, product safety throughout production, use and post-
consumption. These government regulations as well as globalization are forcing
the firms to be particular forcing to automobile and ancillary industries to find new
ways to consolidate their platforms; thereby reducing, harmful impact on the
environment. The competitors in the market have strong influence on the activities
of the firm, they facing increasing competitive pressure to indulge greening-ness at
every stage from choosing the raw material, in production process, in selling and
marketing to end of product life cycle.

In this regard firms must proactively monitor the action and performance of their
competition. Moreover these firms can establish a source of competitive advantage
if they raise industry expectations for the environmental standards. There are huge
opportunities in the Indian market for companies that establish their green
credentials early. Being Eco-friendly gives the firm a USP (Unique Selling
Proposition, which competitor may find difficult to match, hence being eco-
friendly makes a firm competitive and customer friendly as well. Managers must
start to recognise environmental important as an economic and competitive
opportunity, not as an annoying cost or an inevitable threat. Environmental
progress demands that the companies innovate to raise resource productivity-
precisely the new challenge of global competition.

It is the time to build on the underlying economic logic that links the environment,
resource productivity, innovation and competitiveness. In harmony with above
external forces there are some internal forces which are compelling companies to
initiate and implement green marketing practices in their organisation. Those are
corporate social responsibility (organizations believe that, they have moral
obligation , cost and profit issues-cost factor associated with waste disposal or
reduction in material usage forces firms to modify their behaviour and
sustainability in business. 227 The study also revealed that green marketing
practices have positive impact on market performance. This impact is analysed
through relationship between green marketing practices and various market
performance indicators as below:

There is positive relationship between the green marketing practices like

developing environment friendly products, waste minimization and pollution
prevention ecofriendly modification in product design, use of renewable resources,
considering products complete life cycle from raw material extraction to disposal –
which is less harmful to environment. (Cradle to Grave approach) and market
performance indicators like positive company image, , competitive advantage,
profitability, sales volume, business sustainability increased market share.
Although there are huge opportunities for green marketing, Indian auto industry
has to battle major challenges such as emission, energy safety, and climate change,
lack of renewable resources, sustainable manufacturing will demand new
equipments and process which will be costly affair.

However despite of the challenges, auto industry has devised solution like set
waste reduction goals contract with eco-friendly vendors, implementation of green
marketing strategies (Environment friendly product, price ,promotion, logistics
strategies), waste management programmes, employee awareness for environment
friendly practises, 3R practises- Reduce, Reuse, Recycle ,sustainability
developments through carbon credits. The only way forward is to achieve growth
through innovative technologies and promote sustainable mobility. Study also
revealed that, auto manufacturers have continued to invest in R&D dedicated to
‘green innovation.’

These green initiatives are expected to address issues of fuel emissions and
efficiency – reducing fuel consumption and greenhouse gas emissions. This study
indicates noticeable use of various green branding practices are the strongest
enablers to get competitive advantage. The insights from this study can indeed be
used to formulate marketing strategies especially for green products by OEMs as
well as ancillary industries for business sustainability with brighter today and
greener tomorrow. It would ultimately give rise to sustainable development and
preservation of environment. Green marketing helps in the effective outcomes like
they could get a first-mover advantage, firms can also 228 develop a competitive
edge by creating a brand-image as an environment conscious body. Government
and NGO are also supporting to the firms. Industry associations such as the CII
actively encourage their members to be more sustainable. Central Government and
state government of India is funding for environment friendly project cost from ten
crore to 20crores for Cluster program.(information source is Industrial officer:
Office of the joint Director of Industries, Pune Region. In India along with
automobile sector there are various sectors like Banking, FMCG, Pharmacy,
Consumer Electronics, IT, Telecommunications, Oil and Gas, Energy, Housing
and construction are the leading sectors which have an environmental strategy in
place.

The companies from these sectors are taking intense efforts to implement green
marketing through various initiatives like green innovation, green operations,
waste management, green supply chain management, energy conservation,
biodiversity, practising 3R Reduce, Reuse and Recycle. It has been also observed
that most of the Indian companies from above sectors are practicing green
marketing practices from a decade. Finally, consumers, industrial buyers and
suppliers need to intensify the efforts to minimize the negative effects of the
environment-friendly marketing in the context of green marketing assuming even
more importance and relevance in developing countries like India. This study
concludes with a call to the other sectors other than automobile sector also to
pursue eco friendly initiatives to foster long term growth in the economy. 7.2

Suggestions From The Study

• Marketers should play crucial role since they have the responsibility to make the
consumers understand the need for and benefits of green products as compared to
non-green ones. In these times, Green marketing assumes even more importance
and relevance in developing countries like India.

• Along with Private sector, Government initiatives are most important, intense
efforts should be made by Government for following these practices for wellbeing
of next generations. 229

• An environmental issue becomes a key issue in vendor conference. Each OEM

should conduct as much as possible vendor (Tier 1 and Tier 2 suppliers)
conference through which they can create awareness regarding crucial
environment issues as well as should take an endeavour for vendor up gradations
regarding eco friendly technologies and practices.
• Firms should give best vendor award for initiation and implementation of green
marketing practices. • Study reveals that government regulations and competitors
forces plays crucial role in green endeavours ,so government should spend some
more amount on research and development for innovating eco friendly
technologies, and should give subsidies those who are practising.

• There is close association between green marketing practices and market

performance. Hence, Companies should focus more on to develop environment
friendly products and put an endeavour for eco-friendly modification in product
design which will increase market share and give competitive advantage.

• The Ministry of Road Transport and Highways, a branch of the Government of

India, is the apex body for formulation and administration of the rules, regulations
should give more exemption in Taxation for non polluting vehicles.

• Since the bigger challenge will be in the public sector, voluntary efforts alone
will not solve the country's environmental problems. The efforts of leading
businesses need to be complemented with enforcement to improve laggards, and a
firm commitment to the rule of law.

• Companies should follow a more holistic approach. They should not just focus on
being energy efficient, but they should shine when it comes to social responsibility
and sustainability.

• There should be more institutes established for the assessment of green activities
its outcomes in respect to automobile as well as other sectors. 230 7.3 Direction
for Future Research The researcher during his study and investigation came
across certain areas which still remain unexplored. Hence the researcher has felt
that further studies can be undertaken on the following areas:

• Automobile industry-consumer buying behaviour trends for eco-friendly product.

• Automobile dealers role in creating awareness for eco-friendly products and

ultimately for environment protection. Along with above there lies immense scope
of further research on green marketing in emerging economies like India, as
people in these nations are highly aware of green issues and have positive attitude
to go for green.
 There is not much research done on green philosophy in developing nations like
India and many types of researches can be performed in the context of green; such
as:

• An in-depth study on rural Indian consumers can be performed to know their

awareness, concern and attitude towards green marketing.

• Research can be done on Indian Power Sector with respect to green power.

• Indian housing sector with reference to green houses or green buildings.

• Indian Tourism Industry with respect to green tourism.

• Financial sector with green investment versus Non Green.

Thank you