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Evolution of Green MarketingEvolution of Green Marketing

The term Green Marketing came into prominence in The term Green Marketing came into prominence in the late 1980s and early 1990s. the late 1980s and early 1990s.

The green marketing has evolved over this period The green marketing has evolved over this period of time. The evolution of green marketing had of time. The evolution of green marketing had three phases. First phase was termed as three phases. First phase was termed as "Ecological""Ecological" green marketing, and during this green marketing, and during this period all marketing activities were concerned to period all marketing activities were concerned to help environment problems and provide remedies help environment problems and provide remedies for environmental problems. for environmental problems.

Second phase was Second phase was "Environmental""Environmental" green green marketing and the focus shifted on clean marketing and the focus shifted on clean technology that involved designing of technology that involved designing of innovative new products, which take care of innovative new products, which take care of pollution and waste issues. pollution and waste issues.

Third phase was Third phase was "Sustainable""Sustainable" green green marketing. It came into prominence in the late marketing. It came into prominence in the late 1990s and early 2000. This was the result of 1990s and early 2000. This was the result of the term sustainable development which is the term sustainable development which is defined as "meeting the needs of the present defined as "meeting the needs of the present without compromising the ability of future without compromising the ability of future generations to meet their own needs." generations to meet their own needs."

What is green marketing? What is green marketing?

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

Thus "Green Marketing" refers to holistic Thus "Green Marketing" refers to holistic marketing concept wherein the production, marketing concept wherein the production, marketing, consumption and disposal of products marketing, consumption and disposal of products and services happen in a manner that is less and services happen in a manner that is less detrimental to the environment with growing detrimental to the environment with growing awareness about the implications of global awareness about the implications of global warming, non-biodegradable solid waste, harmful warming, non-biodegradable solid waste, harmful impact of pollutants etc., both marketers and impact of pollutants etc., both marketers and consumers are becoming increasingly sensitive to consumers are becoming increasingly sensitive to the need for switch in to green products and the need for switch in to green products and services. services.

While the shift to "green" may appear to be While the shift to "green" may appear to be expensive in the short term, it will definitely prove expensive in the short term, it will definitely prove to be indispensable and advantageous, cost-wise to be indispensable and advantageous, cost-wise too, in the long run. too, in the long run.

Why Green Marketing? Why Green Marketing? As resources are limited and human wants As resources are limited and human wants

are unlimited, it is important for the are unlimited, it is important for the marketers to utilize the resources efficiently marketers to utilize the resources efficiently without waste as well as to achieve the without waste as well as to achieve the organization's objective. So green marketing organization's objective. So green marketing is inevitable. is inevitable.

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

The obvious assumption of green The obvious assumption of green marketing is that potential consumers will marketing is that potential consumers will view a product or service's "greenness" view a product or service's "greenness" as a benefit and base their buying as a benefit and base their buying decision accordingly.decision accordingly.

The not-so-obvious assumption of green The not-so-obvious assumption of green marketing is that consumers will be marketing is that consumers will be willing to pay more for green products willing to pay more for green products than they would for a less-green than they would for a less-green comparable alternative productcomparable alternative product

Green washingGreen washing In an advertisement in National Geographic magazine in In an advertisement in National Geographic magazine in

2004, Ford Motor Company tried to convince readers of 2004, Ford Motor Company tried to convince readers of its commitment to the environment by announcing the its commitment to the environment by announcing the launch of the Escape Hybrid SUV and the remodeling its launch of the Escape Hybrid SUV and the remodeling its River Rouge factory. River Rouge factory.

One print ad read, "Green vehicles. Cleaner factories. It's One print ad read, "Green vehicles. Cleaner factories. It's the right road for our company, and we're well underway." the right road for our company, and we're well underway." What Ford failed to tell readers is that it only planned on What Ford failed to tell readers is that it only planned on producing 20,000 of its Hybrid SUVs per year, while producing 20,000 of its Hybrid SUVs per year, while continuing to produce almost 80,000 F-series trucks per continuing to produce almost 80,000 F-series trucks per month. month.

Moreover, just prior to the campaign's release, the Moreover, just prior to the campaign's release, the Environmental Protection Agency announced that Ford Environmental Protection Agency announced that Ford had the worst fleet wide fuel economy of all major had the worst fleet wide fuel economy of all major automakers. Ford's failure to live up to its environmentally automakers. Ford's failure to live up to its environmentally friendly image earned the company first prize among friendly image earned the company first prize among America's top ten worst green washers of the year.America's top ten worst green washers of the year.

Green washingGreen washing

While green marketing is growing greatly as increasing While green marketing is growing greatly as increasing numbers of consumers are willing to back their numbers of consumers are willing to back their environmental consciousnesses with their money, it can environmental consciousnesses with their money, it can be dangerous. be dangerous.

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

Consumers are savvy—just because a marketer claims it Consumers are savvy—just because a marketer claims it doesn’t mean they’ll believe it. doesn’t mean they’ll believe it.

Cont’dCont’d "Green washing", was coined by environmental activists "Green washing", was coined by environmental activists

to describe efforts by corporations to portray themselves to describe efforts by corporations to portray themselves as environmentally responsible in order to mask as environmentally responsible in order to mask environmental wrongdoings. environmental wrongdoings.

The term "green washing" was originally confined to The term "green washing" was originally confined to describing misleading instances of environmental describing misleading instances of environmental advertising, but as corporations' efforts to portray advertising, but as corporations' efforts to portray themselves as environmentally virtuous have diversified, themselves as environmentally virtuous have diversified, so have charges of green washing. so have charges of green washing.

The term is now used to refer to a wider range or The term is now used to refer to a wider range or corporate activities, including certain instances of corporate activities, including certain instances of environmental reporting, event sponsorship, the environmental reporting, event sponsorship, the distribution of educational materials etc. However, distribution of educational materials etc. However, regardless of the strategy employed, the main objective regardless of the strategy employed, the main objective of green washing is to give consumers and policy makers of green washing is to give consumers and policy makers the the impressionimpression that the company is taking the necessary that the company is taking the necessary steps to manage its ecological footprint. steps to manage its ecological footprint.

What's wrong with green What's wrong with green washing?washing?

1.1.Most obviously, green washing is Most obviously, green washing is misleading. It attempts to deceive us, misleading. It attempts to deceive us, making us think that a company with an making us think that a company with an awful environmental track record actually awful environmental track record actually has a great one. Not all environmental has a great one. Not all environmental advertising is dishonest. But any advertising is dishonest. But any advertising labeled as "green washing" advertising labeled as "green washing" is is dishonest, and that's a problem. dishonest, and that's a problem.

2. Green washing could result in consumer and 2. Green washing could result in consumer and regulator complacency. If one corporation in a regulator complacency. If one corporation in a particular company gets away with green particular company gets away with green washing, other corporations will follow suit, washing, other corporations will follow suit, thereby creating an industry-wide illusion of thereby creating an industry-wide illusion of environmental sustainability, rather than environmental sustainability, rather than sustainability itself.sustainability itself.

This creation of the This creation of the illusionillusion of environmental of environmental sustainability could have dire social sustainability could have dire social consequences as consumers will continue to consequences as consumers will continue to use products and support companies that use products and support companies that further environmental degradation and reduce further environmental degradation and reduce the quality of living conditions for future the quality of living conditions for future generations.generations.

3. Green washing may also engender cynicism: 3. Green washing may also engender cynicism: if consumers come to expect self-if consumers come to expect self-

congratulatory ads from even the most congratulatory ads from even the most environmentally backward corporations, this environmentally backward corporations, this could render consumers skeptical of even could render consumers skeptical of even sincere portrayals of legitimate corporate sincere portrayals of legitimate corporate environmental successes. environmental successes.

Thus well-meaning companies, companies Thus well-meaning companies, companies committed to responsible behavior with regard committed to responsible behavior with regard to the environment, have every reason to be to the environment, have every reason to be critical of companies that green wash. critical of companies that green wash.

ExamplesExamples

Bush Administration's Clear Skies Initiative, which Bush Administration's Clear Skies Initiative, which environmentalists have argued actually weakens environmentalists have argued actually weakens air pollution laws.air pollution laws.

Google has been criticized for claiming its data Google has been criticized for claiming its data centers are extremely energy efficient, while centers are extremely energy efficient, while refusing to publish any figures on this topic refusing to publish any figures on this topic because such information could aid its because such information could aid its competitors.competitors.

Many food products have packaging that evokes Many food products have packaging that evokes an environmentally friendly imagery even though an environmentally friendly imagery even though there has been no attempt made at lowering the there has been no attempt made at lowering the environmental impact of its production.environmental impact of its production.

An article in An article in WiredWired magazine alleges that slogans are used magazine alleges that slogans are used to suggest environmentally benign business activity: to suggest environmentally benign business activity:

The Comcast ecobill has the slogan of "Paper LESS is The Comcast ecobill has the slogan of "Paper LESS is MORE" but ComCast uses large amounts of paper for MORE" but ComCast uses large amounts of paper for direct marketing. direct marketing.

The Poland Spring ecoshape bottle is touted as "A little The Poland Spring ecoshape bottle is touted as "A little natural does a lot of good", although 80% of beverage natural does a lot of good", although 80% of beverage containers go to the landfill.containers go to the landfill.

The Airbus A380 airliner is described as "A better The Airbus A380 airliner is described as "A better environment inside and out" even though air travel has a environment inside and out" even though air travel has a high negative environment cost. high negative environment cost.

According to Fred Pearce's Greenwash column in According to Fred Pearce's Greenwash column in The The GuardianGuardian, "clean coal" is the "ultimate climate change , "clean coal" is the "ultimate climate change oxymoron" -- "pure and utter greenwash" he says.oxymoron" -- "pure and utter greenwash" he says.

The Advertising Standards Authority in the UK upheld The Advertising Standards Authority in the UK upheld several complaints against major car manufacturers several complaints against major car manufacturers including Suzuki, SEAT, Toyota and Lexus who made including Suzuki, SEAT, Toyota and Lexus who made erroneous claims about their vehicles.erroneous claims about their vehicles.

Frito Lay All Natural Snacks. They say, “We Grow the Best Snacks on Earth.”   Frito Lay All Natural Snacks. They say, “We Grow the Best Snacks on Earth.”   This definitely gives the impression that they are giving you a healthy product, This definitely gives the impression that they are giving you a healthy product, and that they are growing their crops the way any normal farmer would grow and that they are growing their crops the way any normal farmer would grow their crops. And we see on their bags that the chips are “still made with all their crops. And we see on their bags that the chips are “still made with all natural oil.” natural oil.”

But Frito Lay brand chips are not a healthy snack. But Frito Lay brand chips are not a healthy snack. As The Greenway Communiqué points out about a bag of Cheetos Puffs, “here As The Greenway Communiqué points out about a bag of Cheetos Puffs, “here

may not be any trans fat, but every ounce has one and a half grams of saturated may not be any trans fat, but every ounce has one and a half grams of saturated fat and ten grams of total fat. As for the real cheese, it’s in there. Listed on the fat and ten grams of total fat. As for the real cheese, it’s in there. Listed on the ingredients just after “salt.” So, one 11-ounce bag of these “nutritious” snacks ingredients just after “salt.” So, one 11-ounce bag of these “nutritious” snacks will give you more than 150 percent of your daily fat needs with just a pinch of will give you more than 150 percent of your daily fat needs with just a pinch of cheese.” Sounds like they are trying to cover up the facts with slogans about all cheese.” Sounds like they are trying to cover up the facts with slogans about all natural oils, or using real cheese, or 0 grams of trans fats. natural oils, or using real cheese, or 0 grams of trans fats.

Benefits of Green MarketingBenefits of Green Marketing Companies that develop new and improved products and Companies that develop new and improved products and

services with environment inputs in mind give themselves services with environment inputs in mind give themselves access to new markets, increase their profit sustainability, access to new markets, increase their profit sustainability, and enjoy a competitive advantage over the companies and enjoy a competitive advantage over the companies which are not concerned for the environment.which are not concerned for the environment.

Some of the advantages of green marketing are,Some of the advantages of green marketing are,

** It ensures sustained long-term growth along with It ensures sustained long-term growth along with profitability.profitability.** It saves money in the long run, though initially the cost is It saves money in the long run, though initially the cost is more.more.** It helps companies market their products and services It helps companies market their products and services keeping the environment aspects in mind. It helps in keeping the environment aspects in mind. It helps in accessing the new markets and enjoying competitive accessing the new markets and enjoying competitive advantage.advantage.** Most of the employees also feel proud and responsible to Most of the employees also feel proud and responsible to be working for an environmentally responsible company.be working for an environmentally responsible company.

Adoption of Green MarketingAdoption of Green Marketing There are basically five reasons for which a marketer should go There are basically five reasons for which a marketer should go

for the adoption of green marketing. They are for the adoption of green marketing. They are

Opportunities or competitive advantageOpportunities or competitive advantage In India, around 25% of the consumers prefer environmental-In India, around 25% of the consumers prefer environmental-

friendly products, and around 28% may be considered healthy friendly products, and around 28% may be considered healthy conscious. There fore, green marketers have diverse and fairly conscious. There fore, green marketers have diverse and fairly sizeable segments to cater to.sizeable segments to cater to.

The Surf Excel detergent which saves water (advertised with The Surf Excel detergent which saves water (advertised with the message—"do bucket paani roz bachana") and the energy-the message—"do bucket paani roz bachana") and the energy-saving LG consumers durables are examples of green saving LG consumers durables are examples of green marketing. marketing.

We also have green buildings which are efficient in their use of We also have green buildings which are efficient in their use of energy, water and construction materials, and which reduce the energy, water and construction materials, and which reduce the impact on human health and the environment through better impact on human health and the environment through better design, construction, operation, maintenance and waste design, construction, operation, maintenance and waste disposal. disposal.

Social ResponsibilitySocial Responsibility

Many companies have started realizing that Many companies have started realizing that they must behave in an environment-friendly they must behave in an environment-friendly fashion. They believe both in achieving fashion. They believe both in achieving environmental objectives as well as profit environmental objectives as well as profit related objectives. The HSBC became the related objectives. The HSBC became the world's first bank to go carbon-neutral. Other world's first bank to go carbon-neutral. Other examples include Coca-Cola, which has examples include Coca-Cola, which has invested in various recycling activities. Walt invested in various recycling activities. Walt Disney World in Florida, US, has an extensive Disney World in Florida, US, has an extensive waste management program and infrastructure waste management program and infrastructure in place. in place.

Governmental PressureGovernmental Pressure

Various regulations rare framed by the Various regulations rare framed by the government to protect consumers and the government to protect consumers and the society at large. The Indian government too society at large. The Indian government too has developed a framework of legislations to has developed a framework of legislations to reduce the production of harmful goods and by reduce the production of harmful goods and by products. These reduce the industry's products. These reduce the industry's production and consumers' consumption of production and consumers' consumption of harmful goods, including those detrimental to harmful goods, including those detrimental to the environment; for example, the ban of the environment; for example, the ban of plastic bags in Mumbai, prohibition of smoking plastic bags in Mumbai, prohibition of smoking in public areas, etc. in public areas, etc.

Competitive PressureCompetitive Pressure

Many companies take up green marketing to maintain Many companies take up green marketing to maintain their competitive edge. The green marketing initiatives their competitive edge. The green marketing initiatives by niche companies such as Body Shop and Green & by niche companies such as Body Shop and Green & Black have prompted many mainline competitors to Black have prompted many mainline competitors to follow suit.follow suit.

Cost ReductionCost Reduction

Reduction of harmful waste may lead to substantial Reduction of harmful waste may lead to substantial cost savings. Sometimes, many firms develop cost savings. Sometimes, many firms develop symbiotic relationship whereby the waste generated by symbiotic relationship whereby the waste generated by one company is used by another as a cost-effective one company is used by another as a cost-effective raw material. For example, the fly ash generated by raw material. For example, the fly ash generated by thermal power plants, which would otherwise thermal power plants, which would otherwise contributed to a gigantic quantum of solid waste, is contributed to a gigantic quantum of solid waste, is used to manufacture fly ash bricks for construction used to manufacture fly ash bricks for construction purposes.purposes.

Green Marketing MixGreen Marketing Mix Green Marketing MixGreen Marketing Mix The 4 P's of green marketing are that of a conventional The 4 P's of green marketing are that of a conventional

marketing but the challenge before marketers is to use 4 P's in marketing but the challenge before marketers is to use 4 P's in an innovative manner.an innovative manner.

ProductProduct The ecological objectives in planning products are to reduce The ecological objectives in planning products are to reduce

resource consumption and pollution and to increase resource consumption and pollution and to increase conservation of scarce resources. The marketer's role in conservation of scarce resources. The marketer's role in product management includes providing product designers with product management includes providing product designers with market-driven trends and customer requests for green product market-driven trends and customer requests for green product attributes such as energy saving, organic, green chemicals, attributes such as energy saving, organic, green chemicals, local sourcing, etc., local sourcing, etc.,

For example, Nike is the first among the shoe companies to For example, Nike is the first among the shoe companies to market itself as green. It is marketing its Air Jordan shoes as market itself as green. It is marketing its Air Jordan shoes as environment-friendly, as it has significantly reduced the usage environment-friendly, as it has significantly reduced the usage of harmful glue adhesives. It has designed this variety of shoes of harmful glue adhesives. It has designed this variety of shoes to emphasize that it has reduced wastage and used to emphasize that it has reduced wastage and used environment-friendly materials.environment-friendly materials.

PricePrice Price is a critical and important factor of green Price is a critical and important factor of green

marketing mix. Most consumers will only be marketing mix. Most consumers will only be prepared to pay additional value if there is a prepared to pay additional value if there is a perception of extra product value. This value may perception of extra product value. This value may be improved performance, function, design, be improved performance, function, design, visual appeal, or taste. Green marketing should visual appeal, or taste. Green marketing should take all these facts into consideration while take all these facts into consideration while charging a premium price. E.g.. Wal Mart charging a premium price. E.g.. Wal Mart unveiled its first recyclable cloth shopping bag. unveiled its first recyclable cloth shopping bag. IKEA started charging consumers when they IKEA started charging consumers when they opted for plastic bags and encouraged people to opted for plastic bags and encouraged people to shop using its "Big Blue Bag". shop using its "Big Blue Bag".

PromotionPromotion There are three types of green advertising: -There are three types of green advertising: - Ads that address a relationship between a Ads that address a relationship between a

product/service and the biophysical environment product/service and the biophysical environment Those that promote a green lifestyle by highlighting a Those that promote a green lifestyle by highlighting a

product or service product or service Ads that present a corporate image of environmental Ads that present a corporate image of environmental

responsibility responsibility

PlacePlace The choice of where and when to make a product The choice of where and when to make a product

available will have significant impact on the customers. available will have significant impact on the customers. Very few customers will go out of their way to buy green Very few customers will go out of their way to buy green products. products.

StrategiesStrategies

The marketing strategies for green marketing The marketing strategies for green marketing include: -include: -

Marketing Audit (including internal and Marketing Audit (including internal and external situation analysis) external situation analysis)

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

Implement marketing strategies Implement marketing strategies Plan results evaluation Plan results evaluation

Challenges AheadChallenges Ahead

Green products require renewable and recyclable Green products require renewable and recyclable material, which is costly material, which is costly

Requires a technology, which requires huge Requires a technology, which requires huge investment in R & D investment in R & D

Water treatment technology, which is too costly Water treatment technology, which is too costly Majority of the people are not aware of green Majority of the people are not aware of green

products and their uses products and their uses Majority of the consumers are not willing to pay a Majority of the consumers are not willing to pay a

premium for green products premium for green products

Some CasesSome Cases McDonald's restaurant's napkins, bags are made McDonald's restaurant's napkins, bags are made

of recycled paper. of recycled paper. Coca-Cola pumped syrup directly from tank Coca-Cola pumped syrup directly from tank

instead of plastic which saved 68 million instead of plastic which saved 68 million pound/year. pound/year.

Badarpur Thermal Power station of NTPC in Badarpur Thermal Power station of NTPC in Delhi is devising ways to utilize coal-ash that has Delhi is devising ways to utilize coal-ash that has been a major source of air and water pollution. been a major source of air and water pollution.

Barauni refinery of IOC is taken steps for Barauni refinery of IOC is taken steps for restricting air and water pollutants. restricting air and water pollutants.

Introduction of CNG in Introduction of CNG in DelhiDelhi

New Delhi, capital of New Delhi, capital of India, was being polluted India, was being polluted at a very fast pace until at a very fast pace until Supreme Court of India Supreme Court of India forced a change to forced a change to alternative fuels. In 2002, alternative fuels. In 2002, a directive was issued to a directive was issued to completely adopt CNG in completely adopt CNG in all public transport all public transport systems to curb pollution.systems to curb pollution.

ConclusionConclusion Green marketing should not neglect the economic aspect Green marketing should not neglect the economic aspect

of marketing. Marketers need to understand the of marketing. Marketers need to understand the implications of green marketing. implications of green marketing.

If we think customers are not concerned about If we think customers are not concerned about environmental issues or will not pay a premium for environmental issues or will not pay a premium for products that are more eco-responsible, then we should products that are more eco-responsible, then we should think again. We must find an opportunity to enhance you think again. We must find an opportunity to enhance you product's performance and strengthen your customer's product's performance and strengthen your customer's loyalty and command a higher price.loyalty and command a higher price.

Green marketing is still in its infancy and a lot of research Green marketing is still in its infancy and a lot of research is to be done on green marketing to fully explore its is to be done on green marketing to fully explore its potential. potential.

Marketers also have the responsibility to make Marketers also have the responsibility to make the consumers understand the need for and the consumers understand the need for and benefits of green products as compared to non-benefits of green products as compared to non-green ones. In green marketing, consumers are green ones. In green marketing, consumers are willing to pay more to maintain a cleaner and willing to pay more to maintain a cleaner and greener environment. greener environment.

Finally, consumers, industrial buyers and Finally, consumers, industrial buyers and suppliers need to pressurize the minimizing of the suppliers need to pressurize the minimizing of the negative effects on the environment. Green negative effects on the environment. Green marketing assumes even more importance and marketing assumes even more importance and relevance in developing countries like India.relevance in developing countries like India.

BibliographyBibliography

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ng/g/greenmarketing.htmng/g/greenmarketing.htm http://www.indianmba.com/http://www.indianmba.com/