Gm Final Pro

8/13/2019 Gm Final Pro

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INTRODUCTION

According to the American Marketing Association, green marketing is the

marketing of products that are presumed to be environmentally safe. Thus green

marketing incorporates a broad range of activities, including

Product modification, Changes to the production process, Packaging changes, as well as Modifying advertising.

The term green marketing came into prominence in the late 1980s and early

1990s. The American Marketing Association (AMA) held the first workshop on

"Ecological Marketing" in 1975. The proceedings of this workshop resulted in one

of the first books on green marketing entitled "Ecological Marketing" Thus green

marketing incorporates a broad range of activities, including product

modification, changes to the production process, packaging changes, as well as

modifying advertising.

My definition which encompasses all major components of other definitions is:

"Green or Environmental Marketing consists of all activities designed to generate

and facilitate any exchanges intended to satisfy human needs or wants, such that

the satisfaction of these needs and wants occurs, with minimal detrimental

impact on the natural environment." This definition incorporates much of the

traditional components of the marketing definition that is "All activities designed


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Importance of green marketing

Man has limited resources on the earth, with which she/he must attempt to

provide for the worlds' unlimited wants. There is extensive debate as to whether

the earth is a resource at man's disposal. In market societies where there is

"freedom of choice", it has generally been accepted that individuals and

organizations have the right to attempt to have their wants satisfied. As firms face

limited natural resources, they must develop new or alternative ways of satisfying

these unlimited wants. Ultimately green marketing looks at how marketing

activities utilize these limited resources, while satisfying consumers wants, both

of individuals and industry, as well as achieving the selling organization's

objectives.

When looking through the literature there are several suggested reasons for firms

increased use of Green Marketing. Five possible reasons cited are:

Organizations perceive environmental marketing to be an opportunity that can

be used to achieve its objectives

Organizations believe they have a moral obligation to be more socially

responsible

Governmental bodies are forcing firms to become more responsible

Competitors' environmental activities pressure firms to change their

environmental marketing activities


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Cost factors associated with waste disposal, or reductions in material usage

forces firms to modify their behavior

Opportunities

Goals of Green Marketing

Eliminate the concept of waste. Reinvent the concept of product. Make prices reflect actual and environmental costs. Make environmentalism profitable. Bringing out product modifications. Changing in production processes. Packaging changes. Modifying advertising.

Challenges in Green Marketing

NEED FOR STANDARDIZATIONIt is found that only 5% of the marketing messages from Green campaigns

are entirely true and there is a lack of standardization to authenticate these

claims. There is no standardization to authenticate these claims. There is no

standardization currently in place to certify a product as organic. Unless

some regulatory bodies are involved in providing the certifications there

will not be any verifiable means. A standard quality control board needs to

be in place for such labeling and licensing.


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NEW CONCEPTIndian literate and urban consumer is getting more aware about the merits

of Green products. But it is still a new concept for the masses. The

consumer needs to be educated and made aware of the environmental

threats. The new green movements need to reach the masses and that will

take a lot of time and effort.

By Indias ayurvedic heritage, Indian consumers do appreciate the

importance of using natural and herbal beauty products. Indian consumer is

exposed to healthy living lifestyles such as yoga and natural food

consumption. In those aspects the consumer is already aware and will be

inclined to accept the green products.

PATIENCE AND PERSEVERANCEThe investors and corporate need to view the environment as a major long-

term investment opportunity, the marketers need to look at the long-term

benefits from this new green movement. It will require a lot of patience

and no immediate results. Since it is a new concept and idea, it will have its

own acceptance period.

Benefits of Green Marketing

Todays consumers are becoming more and more conscious about the

environment and are also becoming socially responsible. Therefore, more

companies are responsible to consumers aspirations for environmentally less

damaging or neutral products. Many companies want to have an early mover

advantage as they have to eventually move towards becoming green.

Some of the advantagesof green marketing are:


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

environment aspects in mind. It helps in accessing the new markets and

enjoying the competitive advantage.

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

Golden Rules of Green Marketing

1. Know Your Customer: Make sure that the consumer is aware of andconcerned about the issues that your product attempts to address,

(Whirlpool learned the hard way that consumers wouldnt pay a premium

for a CFC-free refrigerator because consumers dint know what CFCs were.).

2. Empower Consumers:Make sure that consumer feel. By themselves or inconcert with all the other users of your product, that they can make a

difference. This is called empowerment and due to this main reason

consumers will buy greener products.

3. Be Transparent:Consumers must believe in the legitimacy of the productand the specific claims made in regard.


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4. Reassure the Buyer:Consumers must be made to believe that the productperforms the job its supposed to do-they wont forego product quality in

the name of the environment.

5. Consider Your Pricing: If youre charging a premium for your product-andmany environmentally preferable products cost more due to economies of

scale and use of higher-quality ingredients-make sure those consumers can

afford the premium and feel its worth it.

6. Thus leading brands should recognize that consumer expectations havechanged.It is not enough for a company to green its products; consumers

expect the products that they purchase pocket friendly and also to help

reduce the environmental impact in their own lives too.

GREEN CODE

G generalizes with care. Consumer behavior will not necessarily be consistent

across different product types, and particular market segments may respond to

certain issues on the green agenda but not others.

Rremembers, the validity of a piece of market research is not related to the degree

to which it supports your preferred option.


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E explores the context from which market research data comes. Be clear on the

nature of the sample used, the questions asked, the way in which responses were

recorded and the time and place from which the responses come

Eensures that where market research is crossing international borderlines, that the

terminology and interpretation remains consistent. Terms like environment,

green and conservation do not always translate precisely between languages.

Nneutrality is important. Ensure that when you pose questions to consumers, that

they can make any response without being made to feel guilty or uncomfortable,

and ensure that your own preconceptions about the green agenda (such as an

assumption that green products will cost extra) are not encoded within the

questions.

GREEN MARKETINGADOPTION BY THE FIRMS.

Green marketing has been widely adopted by the firms worldwide and the

following are the possible reasons cited for this wide adoption:

1) OPPORTUNITIES - As demands change, many firms see these changes as an

opportunity to be exploited and have a competitive advantage over firms

marketing non-environmentally responsible alternatives. .

2) GOVERNMENTAL PRESSURE- As with all marketing related activities,

governments want to "protect" consumers and society; this protection has

significant green marketing implications. Governmental regulations relating to


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environmental marketing are designed to protect consumers in several ways,

1. Reduce production of harmful goods or by-products

2. Modify consumer and industry's use and/or consumption of harmful goods.

3. Ensure that all types of consumers have the ability to evaluate the

environmental composition of goods

Governments establish regulations designed to control the amount of hazardous

wastes produced by firms.

3) COMPETITIVE PRESSURE- Another major force in the environmental marketing

area has been firms' desire to maintain their competitive position. In many cases

firms observe competitors promoting their environmental behaviors 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, it could be argued that Xerox's "Revive 100% Recycled

paper" was introduced a few years ago in an attempt to address the introduction

of recycled photocopier paper by other manufacturers. In another example when

one tuna manufacture stopped using driftnets the others followed suit.

4) SOCIAL RESPONSIBILITY- Many firms are beginning to realize that they are

members of the wider community and therefore must behave in an

environmentally responsible fashion. This translates into firms that believe they

must achieve environmental objectives as well as profit related objectives. This

results in environmental issues being integrated into the firm's corporate culture.

There are examples of firms adopting both strategies. Organizations like the Body


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Shop heavily promote the fact that they are environmentally responsible. While

this behavior is a competitive advantage, the firm was established specifically to

offer consumers environmentally responsible alternatives to conventional

cosmetic products. This philosophy is directly tied to the overall corporate

culture, rather than simply being a competitive tool.

5) COST OR PROFIT ISSUES- Firms may also use green marketing in an attempt to

address cost or profit related issues. Disposing of environmentally harmful by-

products, such as polychlorinated biphenyl (PCB) contaminated oil are becoming

increasingly costly and in some cases difficult.

Therefore firms that can reduce harmful wastes may incur substantial cost

savings. When attempting to minimize waste, firms are often forced to re-

examine their production processes. In these cases they often develop more

effective production processes that not only reduce waste, but reduce the need

for some raw materials. This serves as a double cost savings, since both waste and

raw material are reduced.


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GREEN MARKETING MIX

PRODUCT

Entrepreneurs wanting to exploit emerging green markets either: Identify

customers environmental needs and develop products to address these needs or

will develop environmentally responsible products to have less impact than

competitors.

The increasingly wide variety of products on the market that support sustainable

developments are:

Products made from recycled goods, such as Quick N Tuff housingmaterials made from recycled broccoli boxes.

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

reduce environmental impact.

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

Products with green labels, as long as they offer substantiation. Certified products, which meet or exceed environmentally responsible

criteria.

Organic products-many customers are prepared to pay a premium fororganic products, which offer promise of quality. Organic butchers, for

example, promote the added qualities such as taste and tenderness.


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A service that rents or loans products-toy libraries.Whatever the product or service, it is vital to ensure that products meet or

exceed the quality expectation of customers and is thoroughly tested.

PRICE

Pricing is the critical element of the marketing mix. Most customers will only be

prepared to pay a premium if there is a perception of additional product value.

This value may be improved performance, function, design, visual appeal or taste.

Environmental benefits will be often be the deciding factor between products of

equal value or quality.

Environmentally responsible products, however are often less expensive when

product life cycle coast are taken into consideration, for example fuel-efficient

vehicles, water efficient printing and non-hazardous products.

PLACE

The choice of where and when to make products available will have significant

impact on the customers you attract. Very few customers go out of their way to

buy green products merely for the sake of it. Marketers looking to successfully

introduce new green products should position them broadly in the market placeso they are not just appealing to a small green niche 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


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compromised by the image of venue. The location must differentiate you from

the competitors. This can be achieved by in-store promotions and visually

appealing displays or using recycled materials to emphasize the environmental

and other benefits.

PROMOTION

Promoting products and services to target markets include paid advertising,

public relations, sales promotions, direct marketing and on-site promotions.

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

sustainable marketing and communication tools and practices. For example, many

companies in the financial industry are providing electronic statements by email;

e-marketing is rapidly replacing more traditional marketing methods and printed

materials can be produced using recycled materials and efficient processes such

as waterless printing.

Retailers, for example are recognizing the value of alliances with other

companies, environmental groups and research organizations. When promoting

their environmental commitment to reduce the use of plastic bags and promote

their green commitment, some retailers sell shopping bags and promote their

green commitments.


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PRESENT TRENDS IN GREEN MARKETING IN INDIA

Organizations Perceive Environmental marketing to be an Opportunitythat can be used to achieve its objectives.

Firms have realized that consumers prefer products that do not harm the

natural environment as also the human health. Firms marketing such green

products are preferred over the others not doing so and thus develop a

competitive advantage, simultaneously meeting their business objectives.

Organizations believe they have a moral obligation to be more sociallyresponsible.

This is in keeping with the philosophy of CSR which has been successfully

adopted by many business houses to improve their corporate image.

Firms in this situation can take two approaches:

Use the fact that they are environmentally responsible as a marketing tool. Become responsible without prompting this fact.

Governmental Bodies are forcing Firms to Become More ResponsibleIn most cases the government forces the firm to adopt policy which

protects the interests of the consumers. It does so in following ways:


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Reduce production of harmful goods or byproducts Modify consumer and industrys use and /or consumption of harmful

goods; or

Ensure that all types of consumers have the ability to evaluate theenvironmental composition of goods

Competitors Environmental Activities Pressure Firms to change theirEnvironmental Marketing Activities

In order to get even with competitors claim to being environmentally friendly,

firms change over to green marketing. Result is green marketing percolates

entire industry.

Cost Factors Associated With Waste Disposal or Reductions in MaterialUsage Forces Firms to Modify their Behavior

With cost cutting becoming part of the strategy of the firms it adopts green

marketing in relation to these activities. It may pursue these as follows:

A Firm develops a technology for reducing waste and sells it to other firms. A waste recycling or removal industry develops.


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The New Green Revolution

Global Warming is the phenomenon of increase in Earths temperature caused by

burning of fossil fuels and other pollutants in the air. As per the predictions by

IPCC (Intergovernmental Panel on Climate Change) it is predicted that the global

temperature is likely to increase by 1.1 to 6.4 degrees Celsius between 1990 to

2100.

The key causes of global warming are summarized below:

Carbon dioxide emitted from the Power Plants, Cars, airplanes and otherindustries.

Methane emitted from landfill, petrochemical factories and steel andfertilizer plants.

Nitrogen dioxide emitted from waste combustion, agriculture waterpollution and sewage.

Other harmful gases emitted by industries, and manufacturing units, whichare causing depletion of Earths ozone, layer.

Deforestation is another major contributor towards global warming. Thedestruction of tropical forests is throwing millions of tons of carbon dioxide

into the atmosphere. These forests are the main source of absorption of

carbon dioxide, which we are losing at a great speed each year with

increased deforestation.


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For a long time now the effect of mans industrialization and technological

progress ha s quietly yet continuously eked away at the delicate balance of the

planets atmosphere and ecosystem, but within the last 30 or so years the place

of this damage has markedly accelerated

It is presently estimated that 700 tons of carbon dioxide are pumped into the

earths atmosphere every second of the day. Carbon dioxide is the chief

contributor to the greenhouse gases. It is these greenhouse gases, which cause

global warming.

It is not enough just to develop a brand or a logo, or invest in an advertising

campaign, and then position a product as Green before consumers.

GREEN IN MANUFACTURING

This focuses on using renewable energy for production and minimizing air and

water pollution during the manufacturing process.

Example: Energy Star is helping businesses and consumers save money and

check pollution. Energy star has its own pre defined parameters and gadgets

which conform to the energy efficiency standards. The businesses that join hands

with energy star sign an MOU and upgrade their facility as per the requirement

outlined by Energy Star. There are about 2,400 corporations, hospitals, schoolsand other organizations, which are energy star compliant in the US today.

The real estate developers, architects and environmentalists across the globe are

working together to create the next wave of modern eco-friendly projects: green


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buildings and manufacturing facilities. They are using energy conservation

appliances and recycling building products and water harvesting techniques in

their project

GREEN IN PACKAGING

Packaging is a key element of marketing mix for promoting Green

Washing . It can also be an effective tool to display the Green component of

the product.

GREEN IN SERVICES

With increased demand for value-based marketing, there is also growing demand

of Green services. Global customers are not only interested in cost cutting

through outsourcing but are also looking for energy efficient IT operations.

Green Strategy Formulation

As in formulation of green strategy, a firm may evolve it from a SWOT analysisor

Environmental Audit.

SWOT ANALYSIS

STRENGTHS

1. Marketers get access to new markets and gain an advantage overcompetitors that are not focusing on greenness.


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2. Marketers can charge a premium on products that are seen as more eco-responsible.

3. Organizations that adopt green marketing are perceived to be more sociallyresponsible.

4. Green marketing builds brand equity and wins brand loyalty amongcustomers.

E.g. research and development capabilities for clean processes and green

products and human resources committed to environmental protection.

WEAKNESS

1. Most customers choose to satisfy their personal needs before caring forenvironment.

2. Overemphasizing greenness rather than customer needs can provedevastating for a product.

3. Many customers keep away from products labeled Green because theysee such labeling as a marketing gimmick, and they may lose trust in an

organization that suddenly claims to be green E.g. products cannot be

recycled, and hazardous wastes) of a company.

OPPORTUNITIES

1. Marketing to segment which are becoming more environmentally awareand concerned. These consumers are demanding products that conform to

these new attitudes.


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2. Organizations perceive green marketing to be a competitive advantage,relative to the competitors. Firms, therefore, strive to improve upon their

societal awareness. This complements the increase in consumers socially

conscious behavior and will therefore give them an advantage over

competitors who do not address these issues.

E.g. offering an environmental friendly product and saving resources, and relating

them to internal strengths.

EXTERNAL THREATS

1. Uncertainty as to the environmental impact of present activities, includingthat is perceived to be less environmentally harmful.

2. Uncertainty as to which green marketing activities are acceptable from agovernment perspective.

3. The possibility of a backlash from consumers or government based onexisting green marketing claims, threat one and two above may cause

backlash to arise.

E.g. competitors gain market shares with green products and increased

environmental regulations).


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Green Products and its Characteristics

These products that are manufactured through green technology and that caused

no environmental hazards are called green products. Promotion of green

technology and green products is necessary for conservation of natural resources

and sustainable development.

We can define green products by following measures:

Products that are originally grown Products those are recyclable, reusable and biodegradable Products with natural ingredients Products containing recycled contents, non-toxic chemical Products contents under approved chemical Products that do not harm or pollute the environment Products that will not be tested on animals Products that have eco-friendly packaging i.e. reusable, refillable containers

etc.

THE FUTURE OF GREEN MARKETING

There are many lessons to be learned to be learned to avoid green marketing

myopia, the short version of all this is that effective green marketing requires

applying good marketing principles to make green products desirable for

consumers. The question that remains, however, is, what is green marketings


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future? Business scholars have viewed it as a fringe topic, given that

environmentalisms acceptance of limits and conservation does not mesh well

with marketings traditional axioms of give customer what they want and sell

as much as you can.

Evidence indicates that successful green products have avoided green marketing

myopia by following three important principles:

STRATEGIES FOR GREEN COMMUNICATION

Make environmental messages consistent with the companys existing voice inthe market place.

Empower consumers to get involved to make a difference. Enlist cultural icons to tell the story. Show that environmental initiatives lead to better quality products. Be ready to experiment publicly, even if it doesnt always lead to success. Price environmentally preferable products comparable to conventional ones. Link environmental innovations to other benefits, like quality and durability. Thanks customers for making good, green choices, and tell them how they are

making a difference.


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Green Marketing Strategies versus Conventional Marketing

CONVENTIONAL MARKETING GREEN MARKETING

Consumers Consumers with lifestyles Human beings with lives

Products Cradle-to-gave one size fits for all

products

Cradle-to Cradle

flexible services

Marketing and

Communication

Selling oriented and benefits Educational Values

Corporate Receptive, Independent,

competitive, Departmentalized,

Short term oriented profit

maximizing.

Proactive,

Interdependent,

cooperative, Holistic,

long term

Environmentally Conscious Consumer Behavior

Environmentally Conscious Behavior (ECCB) is consumer behavior based on

some awareness of the environmental impacts associated with a product or

service, and a desire to reduce those impacts. Many researchers in the field of

consumers psychology and market research have demonstrated a substantial

growth in ECCB across a range of markets. It has been demonstrated through case

studies that how product developers and marketers have capitalized on this

positive attitude and effectively differentiated their product in terms of their

environmentally friendly character.

Environmental consciousness is the desire to protect flora and fauna, a

willingness to scrutinize the consequences of economic activity and a willingness

to combine long-term with short-term planning.


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Research about the identity and nature of green consumer has been the central

character in the development of green marketing, as business attempt to

understand and respond to external pressures to improve their environmental

performance. Marketing practitioners and academics are attempting to identify

and understand green consumers and their needs, and to develop marketofferings that meet these needs.

CONSUMER ENVIRONMENT

INPUT

Social Stimuli, Marketers Efforts

INFORMATION PROCESSING

Exposure, Attention, Comprehension, New Knowledge and Belief, Integration

CONSTRUCTS

Values and Beliefs,

Motivation,Attitude,

Knowledge

MEDIATORS

Product Knowledge,

Involvement, Habit,Cost, Opportunity,

Availability,

Convenience

OUTCOME

Attention, Product

Comprehension,

Purchase

Avoidance

EXTERNAL FACTORS

Cultural Norms, Group Influence, Family Influence, Unexpected Circumstances

CONSUMER ENVIRONMENT


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GREEN MARKETING: A CORPORATE INITIATIVE

It is important in todays world because mankind has limited resources on the

earth and if we want long term sustainability of human life on this earths surface,

then companies has to learn to conserve these scarce natural resources and

create products that have less environmental damage. Otherwise the very

existence of humankind will be under question mark.

Corporate are going green from the grassroots level to sustain and win the

customers expectations. The environment is becoming increasingly important

part of the corporate reputations and they are actively participating in greening

the corporate strategy. Companies have converted almost all the products to

make them eco-friendly products. Following are the recent environment friendlyinitiatives taken by the companies.

Sony: Green ODO Line Products


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Sonys ODO line product series are the most innovative eco-friendly products

which are very safe and handy. Even children can also use these products.

STRATEGIES TO BE IMPLEMENTED IN GREEN

MARKETING

I. PRODUCT DIFFERENTIATIONOrganizations are putting continuous efforts to differentiate their products

and services using green marketing practice. In a wide range of markets

including retailing etc companies have used eco performance to

differentiate and to compete. Products with poor eco performance can

become targets for new substitution, as a result of this many organizations


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are coming up with greener ideas to differentiate their products from

competitors.

II. PRODUCT STRATEGY

In this strategy marketers can identify customers environmental needs and

develop products to address this issue, produce more environmentally

responsible packages and insure that products meet or exceed the quality

expectation of customers. In addition to that marketer can charge higher

price with highlighting eco-friendliness of the products.

III. DISTRIBUTION STRATEGY

In case of this strategy obtaining dealer support to green marketing

practice is essential. The location must differentiate from competitors and

it can be achieved by in-store promotions and displays by using recycle

materials to emphasize the environmental and other benefits.

IV. LIFE-CYCLE ANALYSISBrands which aspire to be sustainable must get their house in order

before they start planning any green marketing initiatives. The best brands

are performing life cycle analysis- complex assessments which provide

critical data on social, environmental and economic impact of products


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through the supply chain production process and after the purchase. Life

cycle analysis tells a brand just how far it needs to go before it claims to be

sustainable. Consumers dont expect perfection when it comes to

sustainability but they want to see that brands understand the scale of the

problem, have a plan and are in the process of implementing it.

V. INCENTIVES AND STRUCTURAL FACTORSCommercialization programs and incentives help get new technologies

introduced examples include fleet programs to cultivate strategic niche

markets and by providing financial incentives such as the advanced vehicle

tax credit proposal in case of green vehicle purchase.

Consumers can be motivated by incentives and awards to:

Curtailreduce the impact on the environment by modifying extantliving patterns.

Maintainkeep equipment in good working order. Be efficient undertake structural changes such as buying

environmental friendly equipment.


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Role of Information Technology in Green Marketing

IT departments are under increasing scrutiny and pressure to deliver

environmentally sound solutions. Large data centers are one of the most significant

energy consumers in an organizations IT infrastructure, so any measures that the

organization can take to reduce this consumption (and therefore also carbon

dioxide emissions) will have apositive impact on the organizations environmental

footprint.

Gartner reveals that during the last five years, the power demands of equipments

have grown by five or more times. Additionally, a report issued by the

environmental Protection Agency in US indicates that environmental issues have

placed IT departments under pressure to develop green data centers.

A green data centre is defined as one in which the mechanical, lighting, electrical

and computer systems are designed for maximum energy efficiency and minimum

environmental impact. The construction and operation of a green data centre

involved in advanced technologies and strategies.

Some examples include:

Reducing the power consumption of the data centre. Minimizing the footprints of the buildings. Maximizing cooling efficiency. Using Low-emission building materials, carpets and paints. Installing catalytic converters on backup generators.

The consumption of energy is considered the dominant- and often the only-factor

in defining whether or not a facility is green. IT executives therefore need to start

investigating alternative ways of building energy-efficient data centers. This paper

focuses on How a Green Data Centre can be a Great Marketing Tool

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