Green Marketing Survey

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THE GREEN MARKETING

A

PROJECT REPORT

SUBMITTED TO

MALOUT INSTITUTE OF MENAGEMENT AND INFORMATION TECHNOLOGY, MALOUT

FOR THE DEGREE

OF

MASTER OF BUSINESS ADMINISTRATION

BY

Gurlal Singh Sandhu

University Roll No.1274241

Class Roll No: 813

UNDER THE GUIDANCE OF

Ajay Samyal

(Assistant Professor)

DEPARTMENT OF MANAGEMENT STUDIES

MALOUT INSTITUTE OF MENAGEMENT AND INFORMATION TECHNOLOGY,MALOUT, DISTTRICT SHRI MUKTSAR SAHIB -152107

Year 2013


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CERTIFICATE OF SUPERVISIOR

This is to certify that Mr. Gurlal Singh Sandhu Roll No. 1274241 has completed the research

project titled TO STUDY OF GREEN MARKETINGIN OM GRC INFOTECH PVT. LTD. Under

my supervision in partial fulfillment of the Masters of Business Administration degree under

Punjab Technical University, Jalandhar.

Supervisors signature

Supervisors Name: -

Date:-

Place:


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DECLARATION

I, hereby declare that the research project report titled TO STUDY GREEN MARKETING INOM GRC INFOTECH PVT. LTD. Is my own original research work and this report has not

been submitted to my University/Institute for the award of any professional degree or

diploma.

____________________

MBA 3rd semester

MIMIT Malout


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ACKNOWLEDGEMENT

With deep sense of gratitude, I would like this opportunity to thank my project guide Ms.

Bindu Rana (in charge of training dept.), who gave her best support & co-ordination during

my summer training. Her involvement and unstinted support always gives me the

confidence to do my work. Without her guidance this project report would not have seen

the light of the day.

I am also very thankful to JEEVAN JYOTI (HOD OF MBA DEPTT.) for their kind co-operation

to complete this report. I would like to thank the people who took their time to help me to

complete this project. I would like thanking to my friends who were of immense help to me.

Last but not the least; I would like to thank my parents who were source of support

throughout the making of the report.

____________________

MBA 3rd semester

MIMIT Malout


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PREFACE

As a part of the two degree course of M.B.A, we need to undergo Summer Training for 6

weeks in the beginning of 3 rd Semester. Practical Summer Training is significantly different

from the college studies .College Studies are more oriented towards the theory. But in our

training period we are more involved in the Practical works. We work as if we are M.B.A in

the field and if that work is given to us how we have tackled it i.e., the main objective of the

Practical Summer Training is to make us well conversant with the Practical Aspects of the

Management profession.

I was given the project on TO STUDY GREEN MARKETING IN OM GRC INFOTECH

Pvt.ltd in Chandigarh circle in INDIA.

I hope that the conclusions arrived at and the recommendations will help the company to

increase the revenue and help in providing better services to the customers.


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TABLE OF CONTENT

S.NO CHAPTER PAGE.NO

1. CERTIFICATE OF SUPERVISOR 1

2. DECELARATION 2

3. ACKNOWLEDGEMENT 3

4. PREFACE 4

5. SECTOR PROFILE 6-9

6. COMPANY PROFILE 10-18

7. OBJECTIVES OF THE STUDY 19

8. INTRODUCTION 20-23

9. GREEN MARKETING CONCEPT 24-55

10. GOLDEN RULES OF GREEN MARKETING 56-87

11. GREEN WORKS AND GREEN CONSUMER 88-118

12. RESEARCH METHODOLOGYAND FINDINGS 119-131

13 CONCLUSION AND FUTURE ASPECTS 132-137

14. QUESTIONAIRE AND REFERENCES 138-140

15. BIBLIOGRAPHY 141


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Information Technology

The Information technology industry in India has gained a brand identity as a knowledgeeconomy due to its IT and ITES sector. The IT ITES industry has two major components: IT

Services and business process outsourcing (BPO). The growth in the service sector in India

has been led by the IT ITES sector, contributing substantially to increase in GDP,

employment, anSSd exports. The sector has increased its contribution to India's GDP from

1.2% in FY1998 to 7.5% in FY2012.. According to NASSCOM, the IT BPO sector in India

aggregated revenues of US$100 billion in FY2012, where export and domestic revenue

stood at US$69.1 billion and US$31.7 billion respectively, growing by over 9%.

Bangalore is leading IT exporter. Export dominate the IT ITES industry, and constitute about

77% of the total industry revenue. Though the IT ITES sector is export driven, the domestic

market is also significant with a robust revenue growth. The industrys share of total Indian

exports (merchandise plus services) increased from less than 4% in FY1998 to about 25% in

FY2012. According to Gartner, the "Top Five Indian IT Services Providers" are Tata

Consultancy Services, Infosys, Cognizant, Wipro and HCL Technologies.

The industry continues to be a net employment generator - expected to add 230,000 jobs in

FY2012. Generally dominant player in the global outsourcing sector. However, the sector

continues to face challenges of competitiveness in the globalized world, particularly from

countries like China and Philippines.


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The recent global financial crises have deeply impacted the Indian IT companies as well as

global companies. As a result hiring has dropped sharply, and employees are looking at

different sectors like the financial service, telecommunications, and manufacturing

industries, which have been growing phenomenally over the last few years. India's ITServices industry was born in Mumbai in 1967 with the establishment of Tata Group in

partnership with Burroughs. The first software export zone SEEPZ was set up here way back

in 1973, the old avatar of the modern day IT park. More than 80 percent of the country's

software exports happened out of SEEPZ, Mumbai in 80s.

The Indian Government acquired the EVS EM computers from the Soviet Union, which were

used in large companies and research laboratories. In 1968 Tata Consultancy Services

established in SEEPZ, Mumbai by the Tata Group were the country's largest software

producers during the 1960s. As an outcome of the various policies of Jawaharlal Nehru the

economically beleaguered country was able to build a large scientific workforce, third in

numbers only to that of the United States of America and the Soviet Union. On 18 August

1951 the minister of education Maulana Abul Kalam Azad, inaugurated the Indian Institute

of Technology at Kharagpur in West Bengal. Possibly modeled after the Massachusetts

Institute of Technology these institutions were conceived by a 22 member committee ofscholars and entrepreneurs under the chairmanship of N. R. Sarkar.

Relaxed immigration laws in the United States of America attracted a number of skilled

Indian professionals aiming for research. By 1960 as many as 10,000 Indians were estimated

to have settled in the US. By the 1980s a number of engineers from India were seeking

employment in other countries. In response, the Indian companies realigned wages to retain

their experienced staff.


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Big Five IT Services companies .

Firm Revenues Employees Fiscal Year India Headquarters

TCS$10.17

billion254,076 2012 Mumbai

Cognizant Technology

Solutions

$7.05

billion185,045 2012 Chennai

Wipro $5.73billion

140,569 2012 Bangalore

Infosys$6.69

billion153,761 2012 Bangalore

HCL Technologies$4.3

billion85,335 2012 Noida


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Major IT Hubs

Rank City Description

1 Bangalore

Popularly known as the Silicon Valley of India and leading

software exporter from India. Bangalore is considered to be a

global technology hub of India.

2 Chennai

Chennai is the second largest exporter of IT and ITES of India, and

is the BPO hub of India. Chennai has the largest operations

centers of TCS, andCognizant.

3 Hyderabad

Hyderabad is a major it hub in India which is also known as

Cyberabad which consists of many Multinational

corporation companies such

as Google,Facebook, Microsoft, Amazon and Electronic Arts, etc.

4 MumbaiThe Financial capital of India, but recently many IT companies

have established offices.

5 DelhiThe National Capital Region comprising Delhi, Gurgaon and Noida

are clusters of software development.

6 PuneMajor Indian and International Firms present in Pune. Pune is

also C-DAC Head-Quarter.

7 Kolkata

One of the largest cities in India, Kolkata contributes significantly

to IT exports. IBM has second largest headcount after Bangalore,

Cognizant has second largest headcount after Chennai and TCS

has third largest headcount after Chennai & Mumbai. Other

significant players here are Wipro and Capgemini while other

biggies have also opened shop here except Infosys.


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Development Services in:

Web Designing

Web Development

Search Engine Optimization

Search Engine Marketing

Google Indexing

Websites made by OM GRC InfoTech Pvt Ltd:

www.icseindia.org

www.dpsyamunanagar.com

www.gowthcatalyst.in

www.pacl.clanteam.com

www.aryanworldwideholidays.com

www.frenzytechnologies.com

www.zevraatjewellry.com

www.thesinglacomputers.com www.bittusatoz.com

www.pbplaygame.com

Languages &Development Environment:

1. C

2. C++3. .Net

4. JAVA

5. PHP


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In computing, C is a general-purpose programming language initially developed by Dennis

Ritchie between 1969 and 1973 at AT&T Bell Labs. Like most imperative languages in the

ALGOL tradition, C has facilities for structured programming and allows lexical variablescope and recursion, while a static type system prevents many unintended operations. Its

design provides constructs that map efficiently to typical machine instructions, and

therefore it has found lasting use in applications that had formerly been coded in assembly

language, most notably system software like the Unix computer operating system.

C is one of the most widely used programming languages of all time,and C compilers areavailable for the majority of available computer architectures and operating system.

The initial development of C occurred at AT&T Bell Labs between 1969 and 1973 according

to Ritchie, the most creative period occurred in 1972. It was named "C" because its features

were derived from an earlier language called "B", which according to Ken Thompson was a

stripped-down version of the BCPL programming language.

The origin of C is closely tied to the development of the UNIX operating system, originally

implemented in assembly language on a PDP-7 by Ritchie and Thompson, incorporating

several ideas from colleagues. Eventually they decided to port the operating system to a

PDP-11. B's inability to take advantage of some of the PDP-11's features, notably byte

addressability, led to the development of an early version of C.


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The original PDP-11 version of the UNIX system was developed in assembly language. By

1973, with the addition of strict types, the C language had become powerful enough that

most of the UNIX kernel was rewritten in C. This was one of the first operating system

kernels implemented in a language other than assembly. (Earlier instances include the

Multics system (written in PL/I), and MCP (Master Control Program) for the Burroughs

B5000 written in ALGOL in 1961.) Circa 1977, further changes to the language were made by

Ritchie and Stephen C. Johnson to facilitate portability of the Unix operating system.

Johnson's Portable C Compiler served as the basis for several implementations of C on new

platforms. Many later languages have borrowed directly or indirectly from C,including C#, D, Go, Rust, Java, JavaScript, Limbo, LPC, Perl, PHP,Python, and Unix's C shell.

The most pervasive influence on these languages (excluding Python) has been syntactical,

and they tend to combine the recognizable expression and statement syntax of C with

underlying type systems, data models, and semantics that can be radically

different. C++ started as a preprocessor for C and is currently nearly a superset of C.

C is an imperative (procedural) language. It was designed to be compiled using a relatively

straightforward compiler, to provide low-level access to memory, to provide language

constructs that map efficiently to machine instructions, and to require minimal run-time

support. C was therefore useful for many applications that had formerly been coded in

assembly language, such as in system programming.


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C++ is one of the most popular programming languages and is implemented on a wide

variety of hardware and operating system platforms. As an efficient compiler to native code,

its application domains include systems software, application software, device drivers,

embedded software, high-performance server and client applications, and entertainment

software such as video games.Several groups provide both free and proprietary C++compiler software, including the GNU Project, LLVM, Microsoft, Intel and Embarcadero

Technologies. C++ has greatly influenced many other popular programming languages, most

notably Cand Java. Other successful languages such as Objective-C use a very different

syntax and approach to adding classes to C.

Creater of c++

Bjarne Stroustrup, a Danish and British trained computer scientist, began his work on "C

with Classes" in 1979.The idea of creating a new language originated from Stroustrup's

experience in programming for his Ph.D. thesis. Stroustrup found that Simula had features

that were very helpful for large software development, but the language was too slow for

practical use, while BCPL was fast but too low-level to be suitable for large software

development. When Stroustrup started working in AT&T Bell Labs, he had the problem of

analyzing the UNIX kernel with respect to distributed computing. Remembering his Ph.D.

experience, Stroustrup set out to enhance the C language with Simula-like features. C was
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chosen because it was general-purpose, fast, portable and widely used. Besides C and

Simula, some other languages that inspired him were ALGOL 68, Ada, CLU and ML. At first,

the class, derived class, strong typing, inlining, and default argument features were added to

C via Stroustrup's C++ to C compiler, Cfront. The first commercial implementation of C++was released on 14 October 1985.

The definition of an extensive standard library makes a difference to the way C++ concepts

can be presented. As before, this book presents C++ independently of any particular

implementation, and as before, the tutorial chapters present language constructs and

concepts in a bottom up order so that a construct is used only after it has been defined.However, it is much easier to use a well-designed library than it is to understand the details

of its implementation. Therefore, the standard library can be used to provide realistic and

interesting examples well before a reader can be assumed to understand its inner workings.

The standard library itself is also a fertile source of programming examples and design

techniques.

The domain name net is a generic top-level domain (gTLD) used in the Domain Name System

of the Internet. The name is derived from network, indicating its originally intended purpose

was for organizations involved in networking technologies, such as Internet service

providers and other infrastructure companies. However, restrictions were never enforced

and the domain is now a general purpose name space. It is still popular with network

operators, and is often treated as an alternative to com.


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net is one of the original top-level domains (the other five being com, edu, gov, mil, and org)

despite not being mentioned in RFC 920, having been created in January 1985. As of 2011, it

is the third most popular top-level domain, after .com and .de.

Verisign, the operator of net after acquiring Network Solutions, held an operations contract

that expired on 30 June 2005. ICANN, the organization responsible for domain management,

sought proposals from organizations to operate the domain upon expiration of the contract.

Verisign regained the contract bid, and secured its control over the net registry for another

six years.

Java is a general-purpose, concurrent, class-based, object-oriented computer

programming language that is specifically designed to have as few implementation

dependencies as possible. It is intended to let application developers "write once, run

anywhere" (WORA), meaning that code that runs on one platform does not need to be

recompiled to run on another. Java applications are typically compiled to bytecode (class

file) that can run on any Java virtual machine (JVM) regardless of computer architecture.

Java is, as of 2012, one of the most popular programming languages in use, particularly for

client-server web applications, with a reported 10 million users. Java was originally

developed by James Gosling at Sun Microsystems (which has since merged into Oracle

Corporation) and released in 1995 as a core component of Sun Microsystems' Java platform.


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The language derives much of its syntax from C and C++, but it has fewer low-level facilities

than either of them.

The original and reference implementation Java compilers, virtual machines, and class

libraries were developed by Sun from 1991 and first released in 1995. As of May 2007, in

compliance with the specifications of the Java Community Process, Sun relicensed most of

its Java technologies under the GNU General Public License. Others have also developed

alternative implementations of these Sun technologies, such as the GNU Compiler for Java

and GNU Classpath.

PHP development began in 1994 when the developer Rasmus Lerdorf wrote a series of

Common Gateway Interface (CGI) Perl scripts, which he used to maintain his personal

homepage. The tools performed tasks such as displaying his rsum and recording his web

traffic. He rewrote these scripts in C for performance reasons, extending them to add the

ability to work with web forms and to communicate with databases and called this

implementation "Personal Home Page/Forms Interpreter" or PHP/FI. PHP/FI could be used

to build simple, dynamic web applications. Lerdorf initially announced the release of PHP/FI

as "Personal Home Page Tools (PHP Tools) version 1.0" publicly to accelerate bug location

and improve the code, on the comp.infosystems.www.authoring.cgi Usenet discussion

group on June 8, 1995. This release already had the basic functionality that PHP has today.

This included Perl-like variables, form handling, and the ability to embed HTML. The syntax


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was similar to Perl but was more limited and simpler, although less consistent. A

development team began to form and, after months of work and beta testing, officially

released PHP/FI 2 in November 1997.

Zeev Suraski and Andi Gutmans rewrote the parser in 1997 and formed the base of PHP 3,

changing the language's name to the recursive acronym PHP: Hypertext Preprocessor.

Afterward, public testing of PHP 3 began, and the official launch came in June 1998. Suraski

and Gutmans then started a new rewrite of PHP's core, producing the Zend Engine in 1999.

OBJECTIVES OF STUDY

The main objective of the study is first to gain some practical knowledge regardingfunctioning of the organizations which is very necessary to fully understand the primary

functions & hence it fulfill the purpose of the Summer Internship under M.B.A course.

The other objectives were:

1. To study the importance of Green Marketing.

2. To study the roles of Green Marketing.

3. To study the process and functions of Green Marketing.

4. To study the different types of methods/techniques used to evaluate Green Marketing.

5. To study the level of evaluation..


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Green marketing concept


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Introduction

'I'll go out for a breath of fresh air' is an often-heard phrase. But how many of us realize thatthis has become irrelevant in today's world, because the quality of air in our cities isanything but fresh.The moment you step out of the house and are on the road you canactually see the air getting polluted; a cloud of smoke from the exhaust of a bus, car, or ascooter; smoke billowing from a factory chimney, flyash generated by thermal power plants,and speeding cars causing dust to rise from the roads. Natural phenomena such as theeruption of a volcano and even someone smoking a cigarette can also cause air pollution.

Air pollution is aggravated because of four developments: increasing traffic, growing cities,rapid economic development, and industrialization. The Industrial Revolution in Europe inthe 19th century saw the beginning of air pollution as we know it today, which has graduallybecome a global problem. Air pollution is nothing new. Ever since the discovery of fire, less-than-desirable substances have been vented into the air. Every Govt. is trying to minimizethis problem. But regardless of the efforts, air pollution continues to be a serious local andworld-wide problem.

Although environmental issues influence all human activities, few academic disciplines haveintegrated green issues into their literature. This is especially true of marketing. As societybecomes more concerned with the natural environment, businesses have begun to modifytheir behavior in an attempt to address society's "new" concerns. Some businesses havebeen quick to accept concepts like environmental management systems and wasteminimization, and have integrated environmental issues into all organizational activities.

One business area where environmental issues have received a great deal of discussion inthe popular and professional press is marketing. Terms like "Green Marketing" and

"Environmental Marketing" appear frequently in the popular press. Many governmentsaround the world have become so concerned about green marketing activities that theyhave attempted to regulate them .For example, in the United States (US) the Federal TradeCommission and the National Association of Attorneys-General have developed extensivedocuments examining green marketing issues. According to the American MarketingAssociation, green marketing is the marketing of products that are presumed to beenvironmentally safe. Thus green marketing incorporates a broad range of activities,including product modification, changes to the production process, packaging changes, aswell as modifying advertising. Yet defining green marketing is not a simple task where

several meanings intersect and contradict each other; an example of this will be the
http://en.wikipedia.org/wiki/American_Marketing_Associationhttp://en.wikipedia.org/wiki/American_Marketing_Associationhttp://en.wikipedia.org/wiki/American_Marketing_Associationhttp://en.wikipedia.org/wiki/American_Marketing_Association


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existence of varying social, environmental and retail definitions attached to this term. Othersimilar terms used are Environmental Marketing and Ecological Marketing.

Green, environmental and eco-marketing are part of the new marketing approaches whichdo not just refocus, adjust or enhance existing marketing thinking and practice, but seek tochallenge those approaches and provide a substantially different perspective. In more detailgreen, environmental and eco-marketing belong to the group of approaches which seek toaddress the lack of fit between marketing as it is currently practiced and the ecological andsocial realities of the wider marketing environment.

The legal implications of marketing claims call for caution. Misleading or overstated claimscan lead to regulatory or civil challenges. In the USA, the Federal Trade Commission providessome guidance on environmental marketing claims. This Commission is expected to do anoverall review of this guidance, and the legal standards it contains, in 2012.

Green marketing is a phenomenon which has developed particular important in the modernmarket. This concept has enabled for the re-marketing and packaging of existing productswhich already adhere to such guidelines. Additionally, the development of green marketinghas opened the door of opportunity for companies to co-brand their products into separateline, lauding the green-friendliness of some while ignoring that of others. Such marketingtechniques will be explained as a direct result of movement in the minds of the consumermarket. As a result of this businesses have increased their rate of targeting consumers whoare concerned about the environment. These same consumers through their concern areinterested in integrating environmental issues into their purchasing decisions through theirincorporation into the process and content of the marketing strategy for whatever productmay be required. This paper discusses how businesses have increased their rate of targetinggreen consumers, those who are concerned about the environment and allow it to affecttheir purchasing decisions. The paper identifies the three particular segments of greenconsumers and explores the challenges and opportunities businesses have with greenmarketing. The paper also examines the present trends of green marketing in India anddescribes the reason why companies are adopting it and future of green marketing andconcludes that green marketing is something that will continuously grow in both practiceand demand.
http://en.wikipedia.org/wiki/Federal_Trade_Commissionhttp://en.wikipedia.org/wiki/Federal_Trade_Commission


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WHAT EXACTLY IS GREEN MARKETING

According to American Marketing Association Green Marketing is the marketing of productsthat are presumed to be environmentally safe. Thus green marketing incorporates a broadrange of activities, including product modification, changes to the production process,packaging changes, as well as modifying advertising. Yet defining green marketing is not asimple task. Other similar terms used are Environmental Marketing and EcologicalMarketing. The term green marketing came into prominence in the late 1980s and early1990s. 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 ongreen marketing entitled "Ecological Marketing"

So the definition which encompasses all major components of other definitions is: "Green orEnvironmental Marketing consists of all activities designed to generate and facilitate anyexchanges intended to satisfy human needs or wants, such that the satisfaction of theseneeds and wants occurs, with minimal detrimental impact on the natural environment.

Evolution of Green Marketing

The green marketing has evolved over a period of time. According to Peattie (2001), the

evolution of green marketing has three phases. First phase was termed as "Ecological" greenmarketing, and during this period all marketing activities were concerned to helpenvironment problems and provide remedies for environmental problems. Second phasewas "Environmental" green marketing and the focus shifted on clean technology thatinvolved designing of innovative new products, which take care of pollution and wasteissues. Third phase was "Sustainable" green marketing. It came into prominence in the late1990s and early 2000.

HISTORY


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The term Green Marketing came into prominence in the late 1980s and early 1990s. TheAmerican Marketing Association (AMA) held the first workshop on "Ecological Marketing" in1975. The proceedings of this workshop resulted in one of the first books on greenmarketing entitled "Ecological Marketing".

The Corporate Social Responsibility (CSR) Reports started with the ice cream seller Ben &Jerry's where the financial report was supplemented by a greater view on the company'senvironmental impact. In 1987 a document prepared by the World Commission onEnvironment and Development defined sustainable development as m eeting the needs ofthe present without compromising the ability of future generations to meet their ownneed, this became known as the Brundtland Report and was another step towardswidespread thinking on sustainability in everyday activity. Two tangible milestones for wave1 of green marketing came in the form of published books, both of which were called GreenMarketing. They were by Ken Peattie (1992) in the United Kingdom and by JacquelynOttman (1993) in the United States of America.

According to Jacquelyn Ottman, (author of "The New Rules of Green Marketing: Strategies,Tools, and Inspiration for Sustainable Branding" (Greenleaf Publishing and Berrett-KoehlerPublishers, February 2011)) from an organizational standpoint, environmentalconsiderations should be integrated into all aspects of marketing new productdevelopment and communications and all points in between. The holistic nature of greenalso suggests that besides suppliers and retailers new stakeholders be enlisted, includingeducators, members of the community, regulators, and NGOs .Environmental issues shouldbe balanced with primary customer needs.

The past decade has shown that harnessing consumer power to effect positiveenvironmental change is far easier said than done. The so-called "green consumer "movements in the U.S. and other countries have struggled to reach critical mass and toremain in the forefront of shoppers' minds. While public opinion polls taken since the late1980s have shown consistently that a significant percentage of consumers in the U.S. andelsewhere profess a strong willingness to favor environmentally conscious products andcompanies, consumers' efforts to do so in real life have remained sketchy at best One ofgreen marketing's challenges is the lack of standards or public consensus about whatconstitutes "green," according to Joel Makower, a writer on green marketing. In essence,there is no definition of "how good is good enough" when it comes to a product or companymaking green marketing claims. This lack of consensus by consumers, marketers, activists,regulators, and influential people has slowed the growth of green products, says

Makower, because companies are often reluctant to promote their green attributes, andconsumers are often skeptical about claims.

Despite these challenges, green marketing has continued to gain adherents, particularly inlight of growing global concern about climate change. This concern has led more companiesto advertise their commitment to reduce their climate impacts, and the effect this is havingon their products and services
http://en.wikipedia.org/wiki/Sustainable_developmenthttp://en.wikipedia.org/wiki/Jacquelyn_Ottmanhttp://en.wikipedia.org/wiki/Jacquelyn_Ottmanhttp://en.wikipedia.org/wiki/Jacquelyn_Ottmanhttp://en.wikipedia.org/wiki/Berrett-Koehler_Publishershttp://en.wikipedia.org/wiki/Berrett-Koehler_Publishershttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Holistichttp://en.wikipedia.org/wiki/List_of_environmental_issueshttp://en.wikipedia.org/wiki/Pasthttp://en.wikipedia.org/wiki/Decadehttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/w/index.php?title=Green_consumer&action=edit&redlink=1http://en.wikipedia.org/wiki/Joel_Makowerhttp://en.wikipedia.org/wiki/Joel_Makowerhttp://en.wikipedia.org/w/index.php?title=Green_consumer&action=edit&redlink=1http://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Decadehttp://en.wikipedia.org/wiki/Pasthttp://en.wikipedia.org/wiki/List_of_environmental_issueshttp://en.wikipedia.org/wiki/Holistichttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Berrett-Koehler_Publishershttp://en.wikipedia.org/wiki/Berrett-Koehler_Publishershttp://en.wikipedia.org/wiki/Jacquelyn_Ottmanhttp://en.wikipedia.org/wiki/Jacquelyn_Ottmanhttp://en.wikipedia.org/wiki/Jacquelyn_Ottmanhttp://en.wikipedia.org/wiki/Sustainable_development


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Why Green Marketing?

As resources are limited and human wants are unlimited, it is important for the marketersto utilize the resources efficiently without waste as well as to achieve the organization'sobjective. So green marketing is inevitable.

There is growing interest among the consumers all over the world regarding protection ofenvironment. Worldwide evidence indicates people are concerned about the environmentand are changing their behavior. As a result of this, green marketing has emerged whichspeaks for growing market for sustainable and socially responsible products and services.WHY GREEN MARKETING?

It is really scary to read these pieces of information as reported in the Times recently: "Airpollution damage to people, crops and wildlife in US. Total tens of billions of dollars eachyear"."More than 12 other studies in the US, Brazil Europe, Mexico, South Korea and Taiwan haveestablished links between air pollutants and low birth weight premature birth still birth andinfant death". As resources are limited and human wants are unlimited, it is important forthe marketers to utilize the resources efficiently without waste as well as to achieve theorganization's objective. So green marketing is inevitable. There is growing interest amongthe consumers all over the world regarding protection of environment. Worldwide evidenceindicates people are concerned about the environment and are changing their behavior. Asa result of this, green marketing has emerged which speaks for growing market forsustainable and socially responsible products and services. Thus the growing awarenessamong the consumers all over the world regarding protection of the environment in whichthey live, People do want to bequeath a clean earth to their


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Framework

Ecological Marketing

Ecological marketing was based on the idea that environmental protection and resourceconservation can be better advanced through less regulation by the public sector and moreenterprise in the private sector. This idea, in turn, is based on the premise that theecologically concerned consumer is a legitimate but largely unused market segment onethat is identifiable, accessible and measurable. In the 1970s the importances of a smallnumber of environmental issues like oil use or pollution for a narrow range of industries (forexample cars and chemicals) was framed as something that was relevant to engineers,lawyers and marketers within companies.

Originally proposed at the American Marketing Association first conference on ecologicalmarketing in 1975, the idea was compatible with the antiregulatory mood of these days inthe U.S. It found support at the 1979 conference, who felt that government and businessshould strike a better balance in the division of responsibility for the management ofnegative social externalities.

Green/ environmental marketing

Unfortunately, a majority of people believe that ecological (green) marketing refers solely tothe promotion or advertising of products with environmental characteristics. Terms likePhosphate Free, Recyclable, Refillable, Ozone Friendly, and Environmentally Friendly aresome of the things consumers most often associate with green marketing. While theseterms are green marketing claims, in general green marketing is a much broader concept,one that can be applied to consumer goods, industrial goods and even services. Thus, greenmarketing incorporates a broad range of activities, including product modification, changes


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of the production process, packaging changes, as well as modifying advertising. Greenmarketing came into prominence in the late 1980s and early 1990s, it was first discussedmuch earlier. The American Marketing Association (short: AMA) held the first workshop onEcological Marketing in 1975. The proceedings of this workshop resulted in one of the firstbooks on green marketing entitled Ecological Marketing. According to Dainora Grundeyand Rodica Milena Zaharia Green or Environmental Marketing consists of all activitiesdesigned to generate and facilitate any exchanges intended to satisfy human needs orwants, such that the satisfaction of these needs and wants occurs, with minimal harmfulimpact on the natural environment .

Greenhouse gas reduction market

The emerging greenhouse gas reduction market can potentially catalyze projects withimportant local environmental, economic, and quality-of-life benefits. The Kyoto Protocol sClean Development Mechanism (CDM), for example, enables trading between industrial anddeveloping nations, providing a framework that can result in capital flows toenvironmentally beneficial development activities. Although the United States is notparticipating in the Kyoto Protocol, several US programs enable similar transactions on avoluntary and regulatory basis.

While international trade in greenhouse gas reductions holds substantial promise as asource of new funding for sustainable development, this market can be largely inaccessibleto many smaller-scale projects, remote communities, and least developed localities. To

facilitate participation and broaden the benefits, several barriers must be overcome,including: a lack of market awareness among stakeholders and prospective participants;specialized, somewhat complicated participation rules; and the need for simplifiedparticipation mechanisms for small projects, without which transaction costs canoverwhelm the financial benefits of participation. If the barriers are adequately addressed,greenhouse gas trading can play an important role supporting activities thatbenefit people s lives and the environment.
http://en.wikipedia.org/wiki/Kyoto_Protocolhttp://en.wikipedia.org/wiki/Kyoto_Protocolhttp://en.wikipedia.org/wiki/CDMhttp://en.wikipedia.org/wiki/Greenhousehttp://en.wikipedia.org/wiki/Gashttp://en.wikipedia.org/wiki/Sustainable_developmenthttp://en.wikipedia.org/wiki/Tradehttp://en.wikipedia.org/wiki/Peoplehttp://en.wikipedia.org/wiki/Peoplehttp://en.wikipedia.org/wiki/Peoplehttp://en.wikipedia.org/wiki/Tradehttp://en.wikipedia.org/wiki/Sustainable_developmenthttp://en.wikipedia.org/wiki/Gashttp://en.wikipedia.org/wiki/Greenhousehttp://en.wikipedia.org/wiki/CDMhttp://en.wikipedia.org/wiki/Kyoto_Protocol


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Adoptability

In 1989, 67 percent of Americans stated that they were willing to pay 5-10 percent more forecologically compatible products. By 1991, environmentally conscious individuals werewilling to pay between 15-20 percent more for green products Today, more than one-thirdof Americans say they would pay a little extra for green products

An important challenge facing marketers is to identify which consumers are willing to paymore for environmentally friendly products. It is apparent that an enhanced knowledge ofthe profile of this segment of consumers would be extremely useful.

Everett Rogers, communication scholar and author of Diffusion of Innovations, claims thatthe following five factors can help determine whether a new idea will be adopted or not,including the idealism of the shift towards green:

1. Relative advantage : is the degree to which the new behavior is believed to accruemore beneficial outcomes than current practice.

2. Observability : is how easy it is to witness the outcomes of the new behavior.3. Trialability : is the ease with which the new behavior can be tested by an individual

without making a full commitment.4. Compatibility : is the degree to which the new behavior is consistent with current

practice.5. Complexity : is how difficult the new behavior is to implement.


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why it matters. Otherwise, for a significant portion of your target market, it's a case of "Sowhat?" and your green marketing campaign goes nowhere.3.Being Genuine & Transparent : means that a) you are actually doing what you claim to bedoing in your green marketing campaign and b) the rest of your business policies are

consistent with whatever you are doing that's environmentally friendly. Both theseconditions have to be met for your business to establish the kind of environmentalcredentials that will allow a green marketing campaign to succeed.4.Reassure the Buyer : Consumers must be made to believe that the product performs the job it's supposed to do-they won't forego product quality in the name of the environment.5.Consider Your Pricing : If you're charging a premium for your product-and manyenvironmentally preferable products cost more due to economies of scale and use ofhigher-quality ingredients-make sure those consumers can afford the premium and feel it'sworth it.

6.Giving your customers an opportunity to participate : means personalizing the benefits ofyour environmentally friendly actions, normally through letting the customer take part inpositive environmental action

7.Thus leading brands should recognize that consumer expectations have changed:It is notenough for a company to green its products; consumers expect the products that theypurchase pocket friendly and also to help reduce the environmental impact in their ownlives too.

Benefits of Green Marketing

Green marketing offers business bottom line incentives and top line growth possibilities.While modification of business or production processes may involve start-up costs, it willsave money in the long term. For example the cost of installing solar energy is aninvestment in future energy cost savings.

Companies that develop new and improved products and services with environmentalimpacts in mind give themselves access to new markets, substantially increase profits andenjoy competitive advantages over those marketing non-environmentally responsiblealternatives.


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What Makes Marketing Green?

But you cant really market your business or your product as green without managing howyour company functions with respect to the environment. Green marketing can take manyforms. For instance, you may market eco-friendly aspects such as: Operational sustainability: Service companies and manufacturers can improve

operational sustainability by reducing everyday energy and water consumption,minimizing pollution, using greener materials and processes, and properly managingwaste.

Green products: Companies producing products can do many things to improve thegreen factor of their offerings, including choosing sustainable materials, designingproducts to save energy and water, and making products that are less toxic and morenatural than competitors goods. Greener products will also be packaged in an eco -friendly manner and will be made to be easily recycled or composted.

Sustainable marketing: Youll also want to ensure that the actual mar keting systems youuse are green, which is really distinct from your operational sustainability which focuseson manufacturing and production. For instance, when printing marketing materials, use100% post-consumer recycled paper made without chlorine (cal led processed chlorinefree) and printed using plant -based dyes (like soy inks). You could also investigate toolslike green web hosting, carbon offsets for any marketing emissions you may cause,recycling any unused materials from billboards and signage, ecological packaging, and soon.

Environmental causes: Any organization can choose to promote environmental causes.Nonprofits and NGOs will engage in green marketing to get the word out about theiractivities, but for-profits can also suppose environmental causes by making donationsand advertising for these environmental do-gooders as part of a green marketingcampaign.


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.


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WHY IS GREEN MARKETING CHOSEN BY MOST MARKETERS?

Most of the companies are venturing into green marketing because of the following reasons

Adoption of Green Marketing

There are basically five reasons for which a marketer should go for the adoption of greenmarketing. They are -

Opportunities or competitive advantage Corporate social responsibilities (CSR) Government pressure Competitive pressure Cost or profit issues

1. OPPORTUNITIES OR COMPETITIVE ADVANTAGE

In India, around 25% of the consumers prefer environmental-friendly products, andaround 28% may be considered healthy conscious. There fore, green marketers have

diverse and fairly sizeable segments to cater to. The Surf Excel detergent which saveswater (advertised with the message "do bucket paani roz bachana") and the energy-saving LG consumers durables are examples of green marketing. We also have greenbuildings which are efficient in their use of energy, water and construction materials, andwhich reduce the impact on human health and the environment through better design,construction, operation, maintenance and waste disposal. In India, the green buildingmovement, spearheaded by the Confederation of Indian industry (CII) - Godrej Greenbusiness Center, has gained tremendous impetus over the last few years. From 20,000 sqft in 2003, India's green building footprint is now over 25 million sq ft.

In a 1992 study of 16 countries, more than 50% of consumers in each country, other thanSingapore, indicated they were concerned about the environment .A 1994 study in Australiafound that 84.6% of the sample believed all individuals had a responsibility to care for theenvironment. A further 80% of this sample indicated that they had modified their behavior,including their purchasing behavior, due to environmental reasons .As demands change,many firms see these changes as an opportunity to be exploited.

Given these figures, it can be assumed that firms marketing goods with environmental

characteristics will have a competitive advantage over firms marketing non-environmentallyresponsible alternatives. There are numerous examples of firms who have strived to


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to gain market share. In other cases firms have jumped on the green bandwagon withoutconsidering the accuracy of their behavior, their claims, or the effectiveness of theirproducts. This lack of consideration of the true "greenness" of activities may result in firmsmaking false or misleading green marketing claims.

2. SOCIAL RESPONSIBILITY

Many firms are beginning to realize that they are members of the wider community andtherefore must behave in an environmentally responsible fashion. This translates into firmsthat 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. Thereare examples of firms adopting both strategies. Organizations like the Body Shop heavilypromote the fact that they are environmentally responsible. While this behavior is a

competitive advantage, the firm was established specifically to offer consumersenvironmentally responsible alternatives to conventional cosmetic products. Thisphilosophy is directly tied to the overall corporate culture, rather than simply being acompetitive tool.

Fund managers and corporate developers too, are taking into account the environmentalviability of the company they invest in Venture Capitalists are investing in green businessbecause they believe it's a growth opportunity . Britain based HSBC became the world's firstbank to go carbon neutral late last year and is now turning its 11000 buildings in 76

countries worldwide into models of energy efficiency." our customers have told us that theydecide where they shop based on whether the business is a good neighbor. Says DavidNorth, Tescos community director. An example of a firm that does not promote itsenvironmental initiatives is Coca-Cola

They have invested large sums of money in various recycling activities, as well as havingmodified their packaging to minimize its environmental impact. While being concernedabout the environment, Coke has not used this concern as a marketing tool. Thus manyconsumers may not realize that Coke is a very environmentally committed organization.Another firm who is very environmentally responsible but does not promote this fact, atleast outside the organization, is Walt Disney World (WDW). WDW has an extensive waste

management program and infrastructure in place, yet these facilities are not highlighted intheir general tourist promotional activities.


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friendly Many companies have started realizing that they must behave in an well as profitrelated objectives. The HSBC became the world's first bank to go carbon-neutral last year.Other examples include Coca-Cola, which has invested in various recycling activities. WaltDisney World in Florida, US, has an extensive waste management program andinfrastructure in place.

3. GOVERNMENTAL PRESSURE

As with all marketing related activities, governments want to "protect" consumers andsociety; this protection has significant green marketing implications. Governmentalregulations relating to environmental marketing are designed to protect consumers inseveral ways, 1) reduce production of harmful goods or by-products; 2) modify consumerand industry's use and/or consumption of harmful goods; or 3) ensure that all types ofconsumers have the ability to evaluate the environmental composition of goods.

Governments establish regulations designed to control the amount of hazardous wastesproduced by firms.

California's Republican Gov. Arnold Schwarzenegger met with British Labour Prime MinisterTony Blair to promote the idea of transatlantic carbon emissions market. He also wants toreduce his state's greenhouse gas emissions to 80% below 1990 levels by 2050.

In Germany the Greens and the conservatives recently agreed to join forces to run the citygovt. of Frankfurt, the first such coalition in country's history.

Many by-products of production are controlled through the issuing of variousenvironmental licenses, thus modifying organizational behavior. In some cases governmentstry to "induce" final consumers to become more responsible. For example, somegovernments have introduced voluntary curb-side recycling programs, making it easier forconsumers to act responsibly. In other cases governments tax individuals who act in anirresponsible fashion. For example in Australia there is a higher gas tax associated withleaded petrol.


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New Delhi , the India's capital was getting polluted gradually at a very fast pace till SupremeCourt of India forced a change of fuel on it. In 2002, a directive was issued to completelyadopt CNG in all public transport systems to curb pollution.

One of the more recent publicized environmental regulations undertaken by governmentshas been the establishment of guidelines designed to "control" green marketing claims.These regulations include the Australian Trade Practices Commission's (TPC) "EnvironmentalClaims in Marketing - A Guideline , the US Federal Trade Commission's (FTC) "Guides for theUse of Environmental Marketing Claims" and the regulations suggested by the NationalAssociation of Attorneys-General .These regulations are all designed to ensure consumershave the appropriate information which would enable them to evaluate firm's

environmental claims. In addition to these guidelines many States in the US have introducedlegislation to control various environmental marketing activities.

Investment analysts are starting to see the environmental awareness of managers as abarometer of the likely long term success of their companies. Green policies, they say, tendto indicate hands on management, high consumer confidence and good corporategovernance. HSBCwon't do deals with cos. on projects like oil pipelines through Russia, thatdon't measure up to their environmental, social and governance standards Variousregulations rare framed by the government to protect consumers and the society at large.

The Indian government too has developed a framework of legislations to reduce theproduction of harmful goods and by products. These reduce the industry's production andconsumers' consumption of harmful goods, including those detrimental to the environment;for example, the ban of plastic bags in Mumbai, prohibition of smoking in public areas, etc.

4. COMPETITIVE PRESSURE

Another major force in the environmental marketing area has been firms' desire to maintaintheir competitive position. In many cases firms observe competitors promoting their

environmental behaviors and attempt to emulate this behavior. In some instances thiscompetitive pressure has caused an entire industry to modify and thus reduce its


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detrimental environmental behavior. For example, it could be argued that Xerox's "Revive100% Recycled paper" was introduced a few years ago in an attempt to address theintroduction of recycled photocopier paper by other manufacturers. In another examplewhen one tuna manufacture stopped using driftnets the others followed suit

The green marketing initiatives by niche companies such as Body Shop and Green & Blackhave prompted many mainline competitors to follow suit.

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. Thereforefirms that can reduce harmful wastes may incur substantial cost savings. When attemptingto minimize waste, firms are often forced to re-examine their production processes. In thesecases 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 bothwaste and raw material are reduced.

* Philips Light's CFL

Philips Lighting's first shot at marketing a standalone compact fluroscent light (CFL) bulb wasEarth Light, at $15 each versus 75 cents for incandescent bulbs. The product had difficultyclimbing out of its deep green niche. The company re-launched the product as "Marathon,"underscoring its new "super long life" positioning and promise of saving $26 in energy costsover its five-year lifetime.Finally, with the U.S. EPA's Energy Star label to add credibility aswell as new sensitivity to rising utility costs and electricity shortages, sales climbed 12percent in an otherwise flat market

In other cases firms attempt to find end-of-pipe solutions, instead of minimizing waste. Inthese situations firms try to find markets or uses for their waste materials, where one firm'swaste becomes another firm's input of production. One Australian example of this is a firmwho produces acidic waste water as a by-product of production and sells it to a firminvolved in neutralizing base materials.

Cost-Reduction

Reduction of harmful waste may lead to substantial cost savings. Sometimes, many firmsdevelop symbiotic relationship whereby the waste generated by one company is used by

another as a cost-effective raw material. For example, the fly ash generated by thermal


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power plants, which would otherwise contributed to a gigantic quantum of solid waste, isused to manufacture fly ash bricks for construction purposes.

GREEN MARKETING STRATEGIES

V/S

Conventional Marketing

Green Marketing Conventional Marketing

Consumers Human beings withlives Consumers with lifestyles

Products Cradle -to cradle flexibleservices

cradle -to- gave one size fits forall products


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Marketing AndCommunication

Educational values Selling oriented and benefits

Corporate Proactive,interdependent,cooperative, holistic,long term

Receptive,independent,competitive,departmentalized,short term oriented profit

maximizing.

Green Marketing Mix

Every company has its own favorite marketing mix. Some have 4 P's and some have 7 P's ofmarketing mix. The 4 P's of green marketing are that of a conventional marketing but thechallenge before marketers is to use 4 P's in an innovative manner.

The four Ps of green marketing

Like conventional marketers, green marketers must address the 'four Ps' in innovativeways.

1. Product.2. Price.3. Place.4. Promotion.


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A model of a green marketing- mix should, of course, contain all 4Ps:

1-Product : A producer should offer ecological products which not only must notcontaminate the environment but should protect it and even liquidate existingenvironmental damages. Entrepreneurs wanting to exploit emerging green markets willeither:

identify customers' environmental needs and develop products to address theseneeds; or

Develop environmentally responsible products to have less impact than competitors.

The increasingly wide varieties of products on the market that support sustainabledevelopment and are good for the triple bottom line include:

Products made from recycled goods, such as Quik'N Tuff housing materials madefrom recycled broccoli boxes.

Products that can be recycled or reused. Efficient products, which save water, energy or gasoline, save money and reduce

environmental impact. Queensland's only waterless printer, Printpoint, reducesoperating costs by using less water than conventional printers and is able to pass thesavings on to customers.

Products with environmentally responsible packaging. McDonalds, for example,changed their packaging from polystyrene clamshells to paper.

Products with green labels, as long as they offer substantiation. Organic products many consumers are prepared to pay a premium for organic

products, which offer promise of quality. Organic butchers, for example, promotethe added qualities such as taste and tenderness.


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A service that rents or loans products such as toy libraries. Certified products, which meet or exceed environmentally responsible criteria.

Whatever the product or service, it is vital to ensure that products meet or exceed the

quality expectations of customers and is thoroughly tested.

2-Price : Prices for such products may be a little higher than conventional alternatives. Buttarget groups like for example LOHAS are willing to pay extra for green products. Pricing is acritical element of the marketing mix. Most customers will only be prepared to pay apremium if there is a perception of additional product value.

This value may be improved performance, function, design, visual appeal or taste.Environmental benefits are usually an added bonus but will often be the deciding factorbetween products of equal value and quality.

Environmentally responsible products, however, are often less expensive when product lifecycle costs are taken into consideration, for example fuel-efficient vehicles, water-efficientprinting and non-hazardous products.

3.Place : A distribution logistics is of crucial importance; main focus is on ecologicalpackaging. Marketing local and seasonal products e.g. vegetables from regional farms ismore easy to be marketed green than products imported.

The choice of where and when to make a product available will have significant impact onthe customers you attract.

Very few customers will go out of their way to buy green products merely for the sake of it.Marketers looking to successfully introduce new green products should, in most cases,position them broadly in the market place so they are not just appealing to a small greenniche market.

The location must also be consistent with the image you want to project and allow you to

project your own image rather than being dominated or compromised by the image of thevenue. The location must differentiate you from your competitors. This can be achieved byin-store promotions and visually appealing displays or using recycled materials to emphasizethe environmental and other benefits.

4.Promotion : A communication with the market should put stress on environmentalaspects, for example that the company possesses a CP certificate or is ISO 14000 certified.This may be publicized to improve a firms image. Furthermore, the fact that a companyspends expenditures on environmental protection should be advertised. Third, sponsoring

the natural environment is also very important. And last but not least, ecological productswill probably require special sales promotions. Promoting products and services to target


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markets includes paid advertising, public relations, sales promotions, direct marketing andon-site promotions.

Smart green marketers will be able to reinforce environmental credibility by using

sustainable marketing and communications tools and practices. For example, manycompanies in the financial industry are providing electronic statements by email.

E-marketing is rapidly replacing more traditional marketing methods, and printed materialscan be produced using recycled materials and efficient processes, such as waterless printing.

Retailers, for example, are recognizing the value of alliances with other companies,environmental groups and research organizations when promoting their environmentalcommitment. To reduce the use of plastic bags and promote their green commitment, someretailers sell shopping bags, for example those produced by Land care Australia, Clean UpAustralia and Planet Ark, under the banner of the Go Green Environment Fund.

The key to successful green marketing is credibility. Never overstate environmental claimsor establish unrealistic expectations, and communicate simply and through sources thatpeople trust.

Promote your green credentials and achievements. Publicize stories of the company's andemployees' green initiatives. Enter environmental awards programs to profileenvironmental credentials to customers and stakeholders

Additional Social Marketing "P's" that are used in this process are as followed :

Publics -- Effective Social Marketing knows its audience, and can appeal to multiplegroups of people. "Public" is the external and internal groups involved in the program.External publics include the target audience, secondary audiences, policymakers, andgatekeepers, while the internal publics are those who are involved in some way witheither approval or implementation of the program.

Partnershi p-- Most social change issues, including "green" initiatives, are too complexfor one person or group to handle. Associating with other groups and initiatives to teamup strengthens the chance of efficacy.

Policy--Social marketing programs can do well in motivating individual behavior change,but that is difficult to sustain unless the environment they're in supports that change forthe long run. Often, policy change is needed, and media advocacy programs can be aneffective complement to a social marketing program.

Purse Strings -- How much will this strategic effort cost? Who is funding the effort?


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The level of greening-strategic, quasi-strategic, or tactical dictates exactly what activitiesshould be under-taken by a company. Strategic greening in one area may or may not beleveraged effectively in others. A firm could make substantial changes in productionprocesses but opt not to leverage them by positioning itself as an environmental leader. So

although strategic greening is not necessarily strategically integrated into all marketingactivities, it is nevertheless strategic in the product area.

Green marketing activities


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GREEN MARKETING PROCESS COMPONENTS


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Govt. Green Initiatives

A clutch of Indian cities with a population of over 500,000 will soon show case thegovernment's ambitious project to promote public transport across the country. The pilotprojects, to be carried out in select cities, will either be government funded or based on thepublic-private partnership model, depending on the merit of each case. State governments

are expected to pool in their resources to support the initiative. The Ministry of UrbanDevelopment has invited proposals to promote sustainability of habitats. Green travelHabits, including popularizing the international concept of the shared bicycle scheme andshift towards public transport, would form the core of the project. Among the steps that thegovernment is looking at is introduction of a common mobility card to be used for all modesof travel - metro rail, bus rapid transit system (BRTS), city buses and suburban railway. Thesame card will be used for parking and toll also. Under the National Mission for SustainableHabitat (NMSH), the project will be taken up in some of the cities where Metro Railway andBRTS are already in place or are under implementation. The public bicycle scheme is yetanother major being planned for the demo project across the select cities. A standard

feature in most international cities, the scheme is about making bicycles available for shareduse by individuals who do not own them. Publicly-shared bicycles are a mobility service,

xternal reen Ps Paying customers Providers Politicians Pressure groups Problems Predictions

Partners

Internal reen Ps

Products

Promotion

Price

Place

Providing information

Processes

Policies GREEN MARKETING

The Ss of reen Success

Satisfaction of stakeholder

needs

Safety of products and

processes

Social acceptability of the


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mainly useful in urban environment for proximity travels. Barcelona's Bicing scheme andLondon's Boris Bikes are especially popular. Besides, a passenger information system isbeing planned at bus stations in these cities where electronic display boards would show thenext time of the arrival of buses. According to the Ministry of urban developmentcoordination to several states, information on bus arrival time would also be offeredthrough

PATHS TO GREENNESS

Green marketing involves focusing on promoting the consumption of green products.Therefore, it becomes the responsibility of the companies to adopt creativity and insight,and be committed to the development of environment-friendly products. This will help thesociety in the long run. Companies which embark on green marketing should adopt thefollowing principles in their path towards greenness.

Adopt new technology/ Process or modify existing technology/ Process so as toreduce environmental impact.

Establish a management control system that will lead to adherence of stringentenvironmental safety norms.

Explore possibilities of recycling of the used products so that it can be used to offersimilar or other benefits with less wastage.

Using more environment-friendly raw materials at the production stage itself.

Strategies

The marketing strategies for green marketing include: -

Marketing Audit (including internal and external situation analysis)

Develop a marketing plan outlining strategies with regard to 4 P's Implement marketing strategies


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Strengths

&

Problems of Green Marketing

Strengths and Problems of Green Marketing

GREEN MARKETING DOES LEAD TO SUCCESS

BENEFITS OF GREEN MARKETING

Today's consumers are becoming more and more conscious about the environment and arealso becoming socially responsible. Therefore, more companies are responsible to

consumers' aspirations for environmentally less damaging or neutral products. Manycompanies want to have an early-mover advantage as they have to eventually movetowards becoming green. Some of the advantages of green marketing are,

It ensures sustained long-term growth along with profitability. It saves money in the long run, thought initially the cost is more. It helps companies market their products and services keeping the environment

aspects in mind. It helps in accessing the new markets and enjoying competitiveadvantage.

Most of the employees also feel proud and responsible to be working for anenvironmentally responsible company.


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Green marketing is not a theoretical concept only. A lot of firms are using this concept toconsolidate their market positions. A few examples are-

Tesco is pumping $200mn into environmental technologies to reduce the amount of

energy they use by 50% compared with 2000 levels, by 2010.In addition to building80 new eco stores across Britain over the next year the greenest of which will beconstructed of recycled materials and will burn food waste for electricity-they arealso making small changes that could have big results. They are paying customersnot to use plastic bags which they expect would cut consumption by 25% in twoyears.

Renewable Energy Corp .,a Norwegian Solar energy company, had the world's largestever renewable energy IPO in may.

$30 mn is what Goldman Sachs invested in Canadian alternative-fuels company

Logen . It was one of the several green ventures for ex-Goldman and NatureConservancy head Henry Paulson, US Treasury secy.

According to a recent report from the climate group, an international environmentalcharity, 43 multinationals including Bayer, Dupont saved a combined $11.6 bn lastyear by improving energy efficiency, reducing waste output and harnessing solarpower.

GE's ECOIMAGINATION campaign to cut carbon emissions, partly by selling lowemissions products ranging from power plants to fluorescent light bulbs have raked in

$10.1 bn in 2005 as compared with $6.2 bn in 2004.

The World's two largest insurance cos . Swiss Re and Munich Re are now taking cos.policies on climate change into consideration when determining risks. Similarly InJapan about 800 cos. annually publish reports explaining how they plan to cut carbonemissions and make their products and factories greener.

GE signed a deal of $10 bn with British Petroleum to develop hydrogen power plantsthat will capture carbon and bury it underground so it doesn't lead to globalwarming.

Goldman Sachs has invested more than $ 1bn in renewable energy sources, includingbiofuels


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Markets are also beginning to recognize that cos. that do not do right by MotherNature may have more volatile stock prices . Goldman sachs' ESG (Environmental,Social and Governance) Index now ranks the world's largest cos. based on howenvironmentally friendly their operations are.

Some of the Venture Capitalists who bankrolled the dot com boom of 1990s now seealternative forms of energy as next big thing. Vinod khosla, the silicon valley venturecapitalist who got big and early with Google and Amazon, is now betting $50mn ofhis dot com cash on next generation ethanol.

Venture capital investment in renewable energy cos. was up 36 % last year to arecord $739mn.

The wilder Hill Clean Energy Index which charts 40 alternative energy firms has risen485 since its 2004 debut.

World's largest wind turbine energy firm, India's Suzlon Energy was 28 times

oversubscribed when it launched for $340 mn at the end of last year. Chinese Solar company Suntech power raised $ 400mn in December. Largest venture capital backed IPO in Europe last year was of German renewable

energy company Q-cells , which raised $ 400 mn in October. Green marketing of cosmetics and toiletries in Thailand

Use of traditional cosmetics and toiletries manufactured from herbs and plant extractshas been popular in many Asian countries. However, green marketing of these productsis rather recent. Encouraged by the growing environmental consciousness on the part of

citizens and a growing market for cosmetics and toiletries, several global and localcompanies have entered Thailand. An international company, The Body Shop, and alocal company, Oriental Princess, have employed green marketing strategies to buildtheir customer base in the Thai market. Using case research method and questionnaire-based surveys, an attempt has been made in this paper to analyze the green marketingstrategies of these companies and their impact on consumer attitudes and brand loyalty.The research shows that that the two companies have made honest attempts to adoptgreen marketing strategies. However, Thai customers consider non-green attributesmore important in making their purchase decisions. The two case companies have beenable to create favorable attitudes and enjoy a high degree of brand loyalty


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PROBLEMS OF GREEN MARKETING

Many organizations want to turn green, as an increasing number of consumers' ant toassociate themselves with environmental-friendly products. Alongside, one also witnessesconfusion among the consumers regarding the products. In particular, one often findsdistrust regarding the credibility of green products. Therefore, to ensure consumerconfidence, marketers of green products need to be much more transparent, and refrainfrom breaching any law or standards relating to products or business practices

No matter why a firm uses green marketing there are a number of potential problems thatthey must overcome. One of the main problems is that firms using green marketing mustensure that their activities are not misleading to consumers or industry, and do not breachany of the regulations or laws dealing with environmental marketing. For examplemarketers in the US must ensure their green marketing claims can meet the following set ofcriteria, in order to comply with the FTC's guidelines. Green marketing claims must;


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issues, i.e., the truthfulness of environmental marketing claims. If governments want tomodify consumer behavior they need to establish a different set of regulations. Thusgovernmental attempts to protect the environment may result in a proliferation ofregulations and guidelines, with no one central controlling body.

Reacting to competitive pressures can cause all "followers" to make the same mistake as the"leader." A costly example of this was the Mobil Corporation who followed the competitionand introduced "biodegradable" plastic garbage bags. While technically these bags werebiodegradable, the conditions under which they were disposed did not allow biodegradationto occur. Mobil was sued by several US states for using misleading advertising claims. Thusblindly following the competition can have costly ramifications.

The push to reduce costs or increase profits may not force firms to address the important

issue of environmental degradation. End-of-pipe solutions may not actually reduce thewaste but rather shift it around. While this may be beneficial, it does not necessarily addressthe larger environmental problem, though it may minimize its short term affects. Ultimatelymost waste produced will enter the waste stream, therefore to be environmentallyresponsible organizations should attempt to minimize their waste, rather than find"appropriate" uses for it.

Challenges Ahead

Green products require renewable and recyclable material, which is costly. Requires a technology, which requires huge investment in R & D. Water treatment technology, which is too costly. Majority of the people are not aware of green products and their uses. Majority of the consumers are not willing to pay a premium for green products.

CHALLENGES IN GREEN MARKETING

Need for Standardization It is found that only 5% of the marketing messages from Greencampaigns are entirely true and there is a lack of standardization to authenticate theseclaims. There is no standardization to authenticate these claims. There is no standardizationcurrently in place to certify a product as organic. Unless some regulatory bodies are involvedin providing the certifications there will not be any verifiable means. A standard qualitycontrol board needs to be in place for such labeling and licensing.New Concept

Indian literate and urban consumer is getting more aware about the merits of Greenproducts. But it is still a new concept for the masses. The consumer needs to be educatedand made aware of the environmental threats. The new green movements need to reachthe masses and that will take a lot of time and effort. By India's ayurvedic heritage, Indianconsumers do appreciate the importance of using natural and herbal beauty products.


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Indian consumer is exposed to healthy living lifestyles such as yoga and natural foodconsumption. In those aspects the consumer is already aware and will be inclined to acceptthe green products.Patience and Perseverance The investors and corporate need to viewthe 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 patienceand no immediate results. Since it is a new concept and idea, it will have its own acceptanceperiod.

Popularity and effectiveness

Ongoing debate:

The popularity of such marketing approach and its effectiveness is hotly debated.Supporters claim that environmental appeals are actually growing in number the EnergyStar label, for example, now appears on 11,000 different companies models in 38 productcategories, from washing machines and light bulbs to skyscrapers and homes.

However, despite the growth in the number ofgreen products, green marketing is on the decline as the primary sales pitch for products.(NEEDS CITATION) On the other hand, Roper s Green Gauge shows that a high percentage ofconsumers (42% )feel that environmental products dont work as well as conventional ones.This is an unfortunate legacy from the 1970s when shower heads sputtered and natural

detergents left clothes dingy. Given the choice, all but the greenest of customers will reachfor synthetic detergents over the premium-priced, proverbial "Happy Planet " any day,including Earth Day. New reports, however show a growing trend towards green products.

Confusion:

One challenge green marketers -- old and new -- are likely to face as green products andmessages become more common is confusion in the marketplace. "Consumers do not reallyunderstand a lot about these issues, and there's a lot of confusion out there,"says Jacquelyn Ottman( founder of J. Ottman Consulting and author of "Green Marketing:

Opportunity for Innovation.") Marketers sometimes take advantage of this confusion, and
http://en.wikipedia.org/wiki/Energy_Starhttp://en.wikipedia.org/wiki/Energy_Starhttp://en.wikipedia.org/wiki/Washing_machinehttp://en.wikipedia.org/wiki/Light_bulbhttp://en.wikipedia.org/wiki/Skyscraperhttp://en.wikipedia.org/wiki/Roperhttp://en.wikipedia.org/wiki/Roperhttp://en.wikipedia.org/w/index.php?title=Green_Gauge&action=edit&redlink=1http://en.wikipedia.org/wiki/Happy_Planethttp://en.wikipedia.org/wiki/Earth_Dayhttp://en.wikipedia.org/w/index.php?title=Green_product&action=edit&redlink=1http://en.wikipedia.org/wiki/Jacquelyn_Ottmanhttp://en.wikipedia.org/wiki/Jacquelyn_Ottmanhttp://en.wikipedia.org/w/index.php?title=Green_product&action=edit&redlink=1http://en.wikipedia.org/wiki/Earth_Dayhttp://en.wikipedia.org/wiki/Happy_Planethttp://en.wikipedia.org/w/index.php?title=Green_Gauge&action=edit&redlink=1http://en.wikipedia.org/wiki/Roperhttp://en.wikipedia.org/wiki/Skyscraperhttp://en.wikipedia.org/wiki/Light_bulbhttp://en.wikipedia.org/wiki/Washing_machinehttp://en.wikipedia.org/wiki/Energy_Starhttp://en.wikipedia.org/wiki/Energy_Star


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purposely make false or exaggerated "green" claims. Critics refer to this practice as " greenwashing" .

Greenwashing

Corporations are increasingly recognizing the benefits of green marketing, although there isoften a thin line between doing so for its own benefit and for social responsibility reasons.The term greenwashing refers to all industries that adopt outwardly green acts with anunderlying purpose to increase profits. The primary objective of greenwashing is to provideconsumers with the feeling that the organization is taking the necessary steps to responsiblymanage its ecological footprint. In reality, the company may be doing very little that isenvironmentally beneficial The term greenwashing was first used by environmentalist Jay

Westerveld when objecting to hotelier's practice of placing notices in hotel rooms whichasked their quests to reuse towels to save the environment. Westerveld noted that therewas little else to suggest that the hoteliers were interested in reducing their environmentalimpacts, and that their interest in washing fewer towels seemed to be motivated by aconcern to save costs rather than the environment. Since then greenwashing has become acentral feature of debates about marketing communications and sustainability, withawards for greenwashing established and n umerous campaigns, law and advicesdeveloped in an attempt to reduce or curb it.

Green washing can be a somewhat nebulous concept until you start to see the results foryourself. To help paint a picture of some of the bigger greenwashing campaigns of recenthistory, here are some real world examples of greenwashing youll enjoy: Huggies Pure & Natural diapers: This greenwash campaign by Huggies attempts to

convince its customers that the Pure & Natural are better for the environment becausetheyre made with things like aloe, vitamin E, and organic cotton. While these attributesare definitely greener, disposable diapers in general are thought to be fairly

environmentally wasteful by most treehuggers.
http://en.wikipedia.org/wiki/Green_washinghttp://en.wikipedia.org/wiki/Green_washinghttp://en.wikipedia.org/wiki/Greenwashhttp://en.wikipedia.org/wiki/Greenwashhttp://en.wikipedia.org/wiki/Greenwashhttp://www.huggiespureandnatural.com/http://www.huggiespureandnatural.com/http://www.huggiespureandnatural.com/http://en.wikipedia.org/wiki/Greenwashhttp://en.wikipedia.org/wiki/Green_washinghttp://en.wikipedia.org/wiki/Green_washing


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Boeings Airbus380: Here Boeing is attempting to sell their aircraft as eco-friendly (Abetter envir onment inside and out) though air travel is generally agreed to be one of themost polluting forms of transportation on the planet.

NSW Minerals Council: In Australia, the NSW Minerals Council is selling their industry as

one that employs more environmentalists than the entire environment movement,suggesting that their activities must be eco-friendly. Far from it, coal mining is highlydestructive, and burning the resultant coal for energy is one of the dirtiest ways to powerour society.

Here are some other examples of greenwashing:

1. BP

BP Global, have spent millions of dollars in claiming themselves as a green technology

leader when in fact, they are responsible for one of the most destructive oil spill in the

history of the world .

2. IBM

IBM runs advertisements which claim that replacing computers and other computing

devices often is a go green practice. Unfortunately these claims are deceiving as

discarded computers and other devices have become a serious issue to deal with when

it comes to waste management.

3. Sara Lee

Sara Lee ran an advertisement for one of their bread products claiming that their new

eco grain is sustainable than the normally used organic grain. An organic industry audit

agency called them out and asked them to take back their words as the claim was

completely unjustified.

4. Southern Company

Southern Company is a coal company based in southeastern United States. It ran

advertisements in 2010 promoting clean coal. Unfortunately, the concept of clean

coal is false. Also Southern Company is known for high carbon dioxide emissions which

harm the environment and is one of the reasons of global warming.

5. Shell

Shell ran an advertising campaign Lets Go through which they aimed to reposition

themselves as an energy company instead of an oil company. These ads implied Shells

investment in green technology when in fact; their contribution towards a better
http://www.nytimes.com/2008/07/17/business/17green.html?ex=1374033600&en=8a1371752fa7df04&ei=5124&partner=permalink&exprod=permalinkhttp://www.nytimes.com/2008/07/17/business/17green.html?ex=1374033600&en=8a1371752fa7df04&ei=5124&partner=permalink&exprod=permalinkhttp://www.sourcewatch.org/index.php?title=NSW_Minerals_Council%27s_Greenwashinghttp://www.sourcewatch.org/index.php?title=NSW_Minerals_Council%27s_Greenwashinghttp://en.

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