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INTRODUCTION The marketing efforts to produce, promote, distribute
and reclaim products or services which areenvironmentally safe or has environmental benefits.
Such a product or service may be environmentfriendly or produced and/ or packaged in anenvironment friendly way
The assumption of this marketing is that thepotential consumers will view a product or servicesGREENNESS as a benefit and make their buyingdecision accordingly.
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What is Green Marketing?
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DEFINITION OF GREENMARKETING? The study of the positive and negative aspects of
marketing activities on pollution, energy depletionand non-energy resource depletion. AMA, 1975
Green Marketing or Environmental Marketing
consists of all activities designed to generate andfacilitate any exchanges intended to satisfy human
needs or wants, such that the satisfaction of theseneeds and wants occurs, with minimal detrimentalimpact on the natural environment.
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HISTORY The AMA held the first workshop on Ecological
marketing in 1975.
The proceedings of this workshop resulted in one ofthe first books on Green Marketing entitled
Ecological Marketing byJacquelyn Ottmanin late
1970s.
The term Green Marketing came in to picture in the
late 1980s and early 1990s.
http://en.wikipedia.org/wiki/Jacquelyn_Ottmanhttp://en.wikipedia.org/wiki/Jacquelyn_Ottmanhttp://en.wikipedia.org/wiki/Jacquelyn_Ottman -
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Corporate(social)responsibility Term is new, practice is not.
CSR is about sustainabilityof profits, the company, itspeople and the environment.
Its now about how a company EARNS its money, not
how it SPENDS it.
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Importance of GreenMarketingWhy is it important?
Why to go for it?
What are the benefits?
How do we do it?
Examples
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Why Is It Important?
Limited
Resources
Alternative
Ways
Unlimited
Wants
Green Marketing looks at how marketing activities utilize limited
resources, while satisfying consumers unlimited wants, both of
individuals and industry, as well as achieving the selling
organization's objectives
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Why To Go For It? Opportunity
Moral Obligation
Pressure from Government
Competitors Environmental Activities
Cost factors
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1. Opportunity
Firms marketing goods with environmentalcharacteristics will have a competitive advantage overfirms marketing non-environmentally responsiblealternatives.
For Example:
Mcdonaldsreplaced clamshell packaging with waxed
paper. Because of polysterine production and ozone
layer depletion
Xerox introduced a "high quality" recycled photocopier
paper in an attempt to satisfy the demands of firms for
less environmentally harmful products
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Body Shop heavily promote the fact that they are environmentally
responsible. While this behavior is a competitive advantage, the firm wasestablished specifically to offer consumers environmentally responsible
alternatives to conventional cosmetic products
Coca-Cola. has invested large sums of money in
various recycling activities, as well as having modified
their packaging to minimize its environmental impact
Walt Disney World (WDW). WDW has an extensive wastemanagement program and infrastructure in place, yet these facilities are
not highlighted in their general tourist promotional activities
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3.Governmental Pressure
Government wants to "protect" consumers andsociety; Governmental regulations relating toenvironmental marketing are designed to protectconsumers in several ways:
Reduce production of harmful goods or by-products;
Modify consumer and industry's use and/or
consumption of harmful goods; or Ensure that all types of consumers have the ability
to evaluate the environmental composition ofgoods.
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4.Competitive Pressure
Firms observe competitors promoting their environmentalbehaviors and attempt to emulate this behavior. In some
instances this competitive pressure has caused an entire industry
to modify and thus reduce its detrimental environmental
behavior.
For Example:
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
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Why should we do it?
Consumer Demand.
26 billion on ethical goods in 2005 in Britain.
The number of people who felt guilty about unethical
purchases more than doubled in the decade up to 2004,
from 17 % to 35%.
And the number of people who recycled at least once a
year increased from 73% to 93%.
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BenefitsReputation
Gaining and retaining customers
Cost savings (CNG)
Innovation in products and operations
Staff Developments
Energy, Enthusiasm and Openness
Supplier Contracting
Electronics sector
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How do we do it? Company values
Mission and aims
Marketing and transparency
Supply chain management
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Companies With Green Marketing Philips
Aveda
Long Hog
Unilever
Marks and Spencer
Canon
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4Ps Of Green MarketingLike conventional marketers, green marketersmust address the four Psin innovative ways.
PRODUCTEntrepreneurs wanting to exploit
emerging green markets will
either:
identify customers
environmental needs anddevelop products to address
these needs
develop environmentally
responsible products to have
less impact than competitors.
PRICEEnvironmentally responsible
products, however, are often
less expensive when product life
cycle costs are taken into
consideration.
For example: fuel-efficient
vehicles, water-efficient printing
and non-hazardous products.
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PLACE
Very few customers will go outof their way to buy green
products merely for the sake ofit. Marketers looking to
successfully introduce new
green products should, in mostcases, position them broadly inthe market place so they are notjust appealing to a small green
niche market.
This can be achieved by in-storepromotions and visuallyappealing displays or usingrecycled materials to emphasizethe environmental and other
benefits.
PROMOTION
Smart green marketers will beable to reinforceenvironmental credibility byusing sustainable marketingand communications tools
and practices.
For example: To reduce theuse of plastic bags and
promote their greencommitment, some retailerssell shopping bags.
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Eco label is an environmental claim that
appears on the packaging of a product .It is
awarded to a manufacturer by an
appropriate authority. ISO 14020 is aguide to the award of Eco-labels.
The government of India
launched an Eco-mark Scheme in 1991 to
increase consumer awareness in respect of
environment friendly products.The aim of
the scheme is to encourage the customers
to purchase those products which have less
harmful environmental impact.
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Improvement of image and sales of products
Manufacturers being more accountable toenvironmental impacts.
Consumers awareness that their choice of product
do affect the environment as some products areless damaging to environmental than others
Eco labeling leads to
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OPERATON OF ECO-MARK SCHEMEOF GOVERNMENT OF INDIA 3 stages led to award of eco-mark in India
The Steering Committee of the MEF determines the product categories for
coverage under the scheme and to formulate strategies for
implementation and future developments of the scheme.The second stage is the identification of specific products to be selected and
the individual criteria to be adopted by the Technical Committee of CPCB.In the third stage the Bureau of Indian Standards (BIS) is to certify the
product and formulae contract with the manufacturer allowing the use
of eco-mark.
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Consumers Responsibility26%
8%
10%12%21%
23%
No Alternatives To CheapDon't Understand Issue No Time
Not Convenient Lazy
Ultimately green marketing requires that consumers want a cleaner
environment and are willing to "pay" for it, possibly through higher
priced goods, modified individual lifestyles, or even government.
I Damage The Environment Because...
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While firms must bear much of the responsibilityfor environmental degradation, ultimately it is
consumers who demand goods, and thus create
environmental problems.
It must be remembered that it is the uncaringconsumer who chooses to disposes of their waste
in an inappropriate fashion
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NGO-Greenpeace
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Solar products
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Recycled/ecofriendlyproducts
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Hybrid/Electrical cars
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Green Marketing Ideas ForBusinessGet Your Brand out there
Sustainable Packaging
Transportation
Give Local Love Receive Local Love
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Facts and figures The UK green economy is expected to be worth 30
billion by 2010.
When you recycle 1 glass bottle, you save the amount of
energy needed to light a 100 watt bulb for 4 hours.
The use of bulbs cause emission of carbon-di-oxide, so
replace bulbs by CFL (Compact Fluorescent Light) lamps.
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Challenges
Consumers awareness (education and knowledge).
Variety of products.
Price of green products are slightly more.
People does not want to stop consuming but want
to buy ways that does not harm the environment.
To construct a consumer society that accommodatesless waste and lower emission.
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ConclusionGreen marketing covers more than a firm's
marketing claims.
While firms can have a great impact on the
natural environment, the responsibility
should not be theirs alone
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