Abstract safe and sustainable products, the era has

Abstract

Be it increasing
awareness and concern towards the environment or the desire to have safe and
sustainable products, the era has been witnessing the rise in demand of natural
products. There has been a movement in the minds towards the impact of product
they are using on the environment.  With
more and more customers getting ready to pay an extra price for the eco
friendly product, Industries also have started to perceive it as an opportunity
to co brand their product into a separate line while incorporating the
philosophies of environment management system, waste minimization, sustainable
use of resources, which were earlier considered to be a mere governmental,
social and legal obligation. This increasing trend of green consumerism has led
to the evolution of altogether newer concept called green marketing, which
imbibes the philosophy of adoption of eco friendly methods from procurement of
raw material to penultimate delivery at consumer’s doorstep. Thus, the
philosophy of environment protection, rather than being just a CSR activity,
has now become an opportunity to attract a newer segment of consumers.  The strategy, now at its infancy stage has
its own challenges and opportunities. This paper deals with how more and more
traditional consumers are becoming green consumers and what are the challenges
and opportunities lie in the path of Green Marketing, in a developing nation
like India.

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Key Words:  Sustainable Development, Green Consumerism, Green Philosophy, Green Marketing, Green Companies, Green
Brands, Competitive Advantage, Corporate Social Responsibility

 

 

INTRODUCTION

 

Green Marketing
came into existence in the late 1980s and mid-1990s. It started in Europein 1980s
when it was observed that certain are harmful to the earth as well as to the
society. Thus new kind of items were made which were then known as “Green
item”. The idea was these green items would make minimal user of items
that affect the environment and hence they do not harm the earth. Green promotion
comprise of exercises that intended to produceany trade is expected to fulfil
human needs such that the fulfilment of these requirements and needs happens,
with least adverse effect on the regular habitat. It is impossible to have
shopper items that have zero effect on nature. The items that are showcased as
green are generally used to portray those items that secure the common habitat
by saving vitality or assets also. They also mean decreasing or killing
utilization of toxics specialists, contamination and waste.

 

 

GREEN MARKETING
PROCESS

 Green Marketing process includes inner and
outer Ps. In the wake of incorporating innerand outer Ps, green achievement
will naturally come through four Ss. Here outer 7 Ps comprises of paying
clients, Providers, Politicians, Pressure gatherings, Problems, Predictions and
Partners

Inner 7 Ps
comprises of:

 Products

 Promotion

 Price

 Place

 Providing data

 Processes

 Policies

 

 In the wake of coordinating outside and inner
7 Ps, we can discover the green victories through 4 Ss namely

Satisfaction –
of partner needs

 Safety – of items and procedures

 Social agreeableness – of the organization

Sustainability –
of its exercises.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Green Marketing Mix

The aim of green
marketing is to provide environmental friendly solutions for the market efforts
and try to eliminate environmental issues created during the overall marketing
process.  It refers to process such as designing,
promoting, pricing and distribution of products. All these processes should be
carried out with minimal damage to the environment. It is expected that both,
the organization as well as the customer should take into consideration their
responsibility of protecting the environment. Many firms are concerned with the
effectiveness of adopting green marketing strategies and environmental appeals
on consumer behaviour (Chen & Chai, 2010; Lee, 2009). Many studies on
consumer behaviour have focused on the environmental issues (de Grosbois, 2012;
Goldstein et al., 2008; Han & Kim, 2010; Lee et al., 2010; Kang et al.,
2012; Kim & Han, 2010; Manaktola & Jauhari, 2007; Rahman et al., 2012;
Robinot & Giannelloni, 2010).companies have consequently come up with and
executed various green marketing strategies to meet the demand of customers who
are cautious about the environment.

Green Product

Products which are
environmentally friendly or environmentally conscious can be called as green
products. Reduce the use of natural resource and minimize the adverse impact
caused to the environment during all phases of the product life cycle.
Environmentally sensible Customers are willing to pay more for purchasing the
green product as well as the organizations are after producing them by taking
both the sustainability and profit into consideration.In academic circles, much
research about green marketing has been proposed (Bamberg, 2003; Chan et al.,
2008; Diamantopoulos et al., 2003; do Paço & Raposo, 2010; Flamm, 2009; Han
et al., 2010; Mostafa, 2007; Peattie, 2001a; Roberts, 1996; Roberts &
Bacon, 1997; Tanner & Kast, 2003; Wong et al., 1996). But still a lot of
gap exists between customer’s expectation and customer perception of green
products and this is the major reason why the market share for green products has
not increased. The four areas that help to define a product as being green are

1)     
Content: The actual product constitutes
of environmental friendly sub products.

2)     
Labelling: Labelling which certifies
that the product is safe for the environment.

3)     
Packaging: The material used for
packaging should itself also be recyclable.

4)     
Message: Convey in the message about the
eco-friendly qualities of the product

 

Green Pricing

It is obvious that the
piece of a green product is going to be slightly higher than regular products.
It needs environment friendly packaging which can be easily disposable. The
product itself will be made with environmental safety standards and will be
different in terms of appearance, functionality and also because of
customization. . Surveys indicate that consumers say that they will pay from 7
to 20% more for environmentally friendly products (Reitman, 1992). But the
trend appears to be significantly different as there is always a difference
between people’s attitude and people’s behaviour. Even though people say they
will pay more for the green product they are unwilling to do so. So the
marketers need to consider these differences when they consider green marketing
activity. For example the customer should be reassured that there is no
compromise in product quality in the name of the environment. It is important
that the customer can afford the premium and feel that the product is worth its
value. The value can be improved by performance, design, appearance or taste.  Products made from the recycled goods also
costs the organisation less as compared to buying new material .In short term
it may appear that the shift towards green is expensive, it will definitely be
advantageous both for the customers and the organisation in the long run.

 

Green Promotion

It is considered that
catering to environmental worries is the hottest sales strategy. Promoting the
real environmental attribute of a product or firm requires overall change in
the product, the process or the corporate’s vision or mission. It is not
necessary that the changes are strategic. It can be as small as minor product
modification. While promoting green product one must take into consideration
that they do not over claim about the product and understand how various
environmental terms can be used in promotion of the product. The common terms
such as biodegradable, recyclable and environmentally friendly cannot be used
now as they have come under harsh criticism. They should be used carefully as
documenting them would be difficult this is the reason that many companies do
not include environmental benefits in their promotion. This is a real big
problem for marketers and their ability to promote their green actions and
products. On top of that now a days customers hardly believe in such environmental
claim. One trend that can be seen now a days is, opening of green retail stores
such as Body Shop started by Anita Roddick in the UK. They avoid using any kind
of mass media advertising, but use a variety of other promotional and publicity
methods. They promote with the help of signs and leaflets that they provide in
the stores. They provide their employees with t-shirt with printed name and
logos. Despite backing away from green promotion they do not back away from
targeting their green consumers.

 

Green Distribution

Green distribution is
about managing logistics such as to protect environment. It could be to cut
down on transportation emissions such as harmful carbon compounds. One way to
do this is to produce products locally such that they do not have to be
transported from a centralised location. Products which need to be imported can
be produced in the country itself by licensing for local production. This will
also result in reducing the shipping cost and thus reduce the carbon emission
caused dude to transportation using ships and other modes. Only the product
being green is not enough. The retailers selling this products should also
claim the green benefits of the product. Walmart is one such stores which had
their own line of green products and only puts the products in to its green
line if it satisfies the green criteria and expects the manufacturer to meet
these criteria’s.

 

 

 

Difficulties in Green
Marketing

There is sizable
numerical quality of associations which might want to turn green, as an
expanding number of consumers need to connect themselves with condition well
disposed items. There is broad disarray among the shoppers with respect to
items. Specifically, where one frequently discovers disintegration of
respectability of green item. Consequently, to guarantee shopper certainty,
advertisers of green items should be considerably more straightforward and
abstain from breaking a law or gauges identifying with items or business
rehearses. There is vast number of difficulties in the field of green promoting
which might be total up as takes after.

 

Need for
institutionalization of the items – It has been watched that very misfortune
proportionate of the promoting message from “Green” crusades is
consistent with essential standard and mirror the legitimacy which they guarantee.
There is no defined measure for that as of now, from where we could affirm that
the item as natural.

 

New idea – The
customers of various provincial and urban progressive system are bit by bit
getting to be mindful of the benefits of green items. In any case, it is still
new thought or idea for the majority. It is in this manner, end up plainly
basic to teach the general population about developing hazard of falling apart
condition.

 

Long incubation period
require persistence nearness – It has been watched that the inventers and
corporate need to see the earth as a long haul venture opportunity. It is a
direct result of the ventures identified with “Green Marketing” have a
long-incubation period. It requires a considerable measure of tolerance to get
the coveted outcomes.

 

 Avoiding green astigmatism – The primary
guideline of green – advertising is centering the client benefits. I.e. that is
the reason purchasers purchase specific merchandise and ventures in their first
need, is  a correct approach and spur the
clients to purchase specific brands or even pay a premium for a “greener”
brands. On the off chance that green item not sparing suitable, accordingly, it
will lessen the market worthiness. Different difficulties, related with “Green
Marketing? are green items which require sustainable and recyclable material at
the financially savvy. It require a cutting edge innovation which again
requires immense cost in innovative work.

 

Strategies
 TO BE Implemented FOR GREEN MARKETING

 

?
Product Differentiation – It is of utmost importance to put efforts  in differentiating the green  products with that of already existing
products so that the consumers can feel the difference and adapt accordingly.

?

Value positioning of
consumer-

 

The organization can design
environmental products to perform as promoting and delivering the customer?s
desired value of environmental products and target relevant customer market
segment can be proved conducive to organization to differentiate.

 

 

Designing of bio-degrading
prone packaging – It has been
observed that promotion of green products have been strongly influenced by the
design making of the customers. Thus it indicates that bio-degradable packing
will affect in a strong and moderate on their decision making.

 

 

Product
strategy for green marketing – In
order to promote marketing for green marketing is an urgent need to identify
customer?s environmental necessities and develop the products accordingly. It
includes more environmentally responsible packages which ensure that products
meet or exceed the quality expectation of the consumers; so that the marketers
may charge higher price with highlighting the eco-logical viability of the
products.

? Distribution
strategy of green marketing – In this strategy of green marketing, it is
very essential to take customer support. In this case, the location must be
differentiated form the competitors. It can be achieved by promoting the
in-store activities like recycling of materials to focusing the environmental
and other related benefits.

? Life cycle analysis of
green marketing – Product brand is a vital aspect, which can help to
formulate plans for green marketing. It is a best tool for performing life
cycle analysis complex assessment which can make available the vital statistics
on social, environmental and economic impact of products through the supply
chain production process and after the purchase. Life cycle analysis can inform
a brand requirement to go before it claims to be sustainable.

 

 

 

Successful
Implementation of Green marketing

 Green
marketing has been implemented by various companies for capturing market
opportunities.

Example 1: State Bank of India

SBI uses eco and power friendly equipment’s in
all its new ATMs. The count of new ATMs is around 10000. Besides that SBI is
providing paper less banking, no deposit and no withdrawal slips and they also
promote money transactions with the help of ATM cards. By saving on power cost
SBI has earned carbon ratings. SBI has also entered into green service known as
Green Channel Counter. It became the first Indian bank to harness wind energy
through a 15-megawatt wind farm.

Example 2: Indian oils green agenda

Low Sulphur Diesel was introduced by Indian Oil
in which the content of Sulphur was only 0.5 %. This followed by introduction
of extra low Sulphur which was 0.25% in the year 1997 for the eco –sensitive
Taj Trapezium. Later in 2001 they brought down the Sulphur emission to as low
as 0.05%. The R & D Center of Indian Oil formulated eco- friendly lube
formulas which were biodegradable.

Example 3: DELL India

Dell has introduced two initiatives to promote
green approach towards technology. It was specially designed for consumers in
India. The first was the discount coupons and the second was Dell Go Green
Challenge. Dells efforts was to make being green easy and cost-effective for customers.

 

Example 4: ITC paper division capacity addition
and tech infusion

ITC made a TFC (total chlorine free) pulp with
less brightness to 1.3 lakh –tonne capacity pulp line. They used this pulp for
making their Classmate notebook which ranks first and is the most preferred
brand in its category.

Golden RULES OF GREEN MARKETING

 

? Know Your Customers – Make beyond any doubt that the shopper knows about and worried about
the issues that your item endeavors to address. (Whirlpool took in the most
difficult way possible that customers wouldn?t pay a premium for a without cfc
fridge since shoppers dint realize that CFCs were.)

 

? Reassure the Buyer – Consumer
must be made to trust that the item plays out the activity it?s expected to do
– they won?t forego item quality for the sake of the earth.

 

? Consider You’re Pricing – If
you?re charging a premium for your item and
numerous ecologically ideal items cost more because of financial matters of
scale and utilization of higher – quality fixings – ensure those shoppers can
bear the cost of the premium and feel it?s justified, despite all the trouble.

 

? Educating you’re Customers – Isn?t simply an issue of telling individuals
you?re doing whatever you?re doing to ensure the earth, yet in addition a
matter of telling them why it makes a difference.

 

? Giving your clients a chance
to take an interest – Means customizing the
advantages of your naturally amicable activities, regularly however giving the
client a chance to participate in positive ecological activities.

 

? Being Genuine and Transparent
– Being Genuine and Transparent implies that

 

? You are really doing what you claim to do in your green showcasing effort.

 

? whatever is left of your
business arrangements are predictable with whatever you are dongthat?s
naturally benevolent.

 

? Both these conditions must be
met for you business to build up the sort of condition accreditations that will
permit a green showcasing effort to succeed.

 

? Thus driving brands ought to
perceive that buyer desires have changed – It isn’t sufficient for an organization to green its items; customers expect the
items that they buy take amicable and furthermore to help diminish the natural
effect in their own particular live as well. GREEN MARKETING – ADOPTS BY THE
FAR

 

Conclusion

Now this is the right time to select “Green Marketing”
globally. It will come with drastic change in the world of business if all
nations will make strict roles because green marketing is essential to save
world from pollution. From the business point of view because clever marketer
is one who not only convinces the consumer, but also involves the consumer in
marketing his product. Green marketing should not be considered as just one
more approach to marketing, but has to be pursued with much greater vigor, as
it has an environmental and social dimension to it. With the threat of global
warming, it is extremely important that green marketing becomes the norm rather
than an exception or jest a fad. Recycling of paper, metals, plastics, etc., in
a safe and environmentally harmless manner should become much more systematized
and universal. It has to become the general norm to use energy-efficient lamps
and other electrical goods. Marketers also have the responsibility to make the
consumers understand the need for and benefits of green products as compared to
non-green ones. This am environmental committed organisation may not only
produce goods that have reduced their detrimental impact on the environment,
they may also be pressure their suppliers to behave in a more environmentally,
they may also be pressure their suppliers to behave in more environmentally
“responsible” fashion. In green marketing, consumers are willing to pay more to
maintain a cleaner and greener environment. Finally consumer, industrial buyers
and suppliers need to pressurize effects on minimize the negative effects on
the environment-friendly. Green marketing assumes even more importance and
relevance in developing countries like India.

 

 

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