WHAT IS GREEN MARKETING?

Green Marketing refers to promotion of environmentally safe and beneficial products. “Environmentally-responsible” or “Green Marketing” is a business practice that takes into account consumer concerns about promotion, preservation and conservation of the natural environment.

HISTORY OF GREEN MARKETING

Green Marketing was started in 1980s in Europe when people there recognized the need of products that are environmentally friendly later this concept was spread to remaining parts of the world. Initially people were not ready to accept this but with increasing consumer awareness people are now are preferring environmental friendly products .

Green Marketing aims at focusing on Sustainable Development i.e. meeting the needs of the present generation without compromising the ability of the future generation in meeting their needs.

NEED OF GREEN MARKETING

• It helps in reducing the environmental damage.

• Improves the company image and sales of the product.

• Creates customer awareness about ecological problems.

• Makes customer enjoy the benefits of a product or service thereby also contributing to environmental benefits.

• Company’s become more accountable for producing and marketing products without any bad effects on the environment.

BENEFITS OF GREEN MARKETING• Improved Products / Marketing waysIn order to create environmentally friendly products, companies may end

up creating innovative products

• Access to new marketsThe company can now target on a environmentally conscious consumer

segment, which is relatively a newer and larger market.

• Profit sustainabilityPeople prefer your product because of its environmental value and thus

you can earn greater profits.

• Competitive AdvantageWhen people purchase Green Marketed products, they pay for the

product plus saves the environment at a same price range that

competitors offer, thus it gives your product a competitive advantage.

ECO LABELLINGEco- Labelling is an environmental claim on any product signifying that it is an environmental friendly. It has been under the “Eco-Mark Scheme” 1991 by the Government of India to increase consumer awareness and encourage them to purchase products with less environmental effects.

MAJOR CHALLENGE.. • Unaware CustomersCustomers are unaware about products

“Green Marketed” product and how they help in reducing the bad

environmental effect.

• Unwillingness of customers to pay a premium price.Sometimes customer need to pay a little extra for a “Green Marketed”

product and because of the price customers ignore it.

Ex- The cost of a polythene bag is Re.1, and the cost of a biodegradable poly

bag is Re.2.

GREEN WASHINGWhen a company makes false claims that it is doing “Green Marketing” in order to sell its products thereby fooling the customers, then it is termed as “Green Washing”

• Walmart started the “Go Green” Campaign aiming at sustainable

development, but it proved to be a campaign created only to improve

the company’s image as according to a report by ILR (Institute for

Local Reliance) Walmart only generated 2% of electricity from Wind

and Solar electricity.

• Ford Motors in 2004 started the “Greener Vehicles, Cleaner Roads”

Campaign but produced only 20,000 Hybrid environmental SVU’s

that year as opposed to 80,000 non environmental friendly F- Trucks.

GOING THE GREEN WAY…

• Mc Donalds started giving out its products in a paper bag to the customers instead of a polythene bag, thereby doing “Green Marketing” at a reduced cost. This campaign was a big hit

• Coca-Cola in order to save water does Rain Water Harvesting at a huge level thus saving water and giving back to the environment a small part of the water that it consumes for its production.

Some companies do “Green Marketing” and make huge profits.

CONCLUSION

We as consumers should do our bit in making earth a better place to live and to do so we should start purchasing green marketed products.

Small things add up…If 100 people do 100 small things it starts to make a big difference.