Green Marketing in Modern Industry

7/31/2019 Green Marketing in Modern Industry

1/24

Click to edit Master subtitle style

5/14/12

GREEN MARKETING

IN MODERN INDUSTRY

ByVarun S8th Sem IEM1BM08IM060

Guided ByV NShailaja

Asst.


2/24

5/14/12

Introduction Green Marketing refers to holistic marketing concept

wherein the production, marketing consumption an disposal of

products and services happen in a manner that is less detrimental

to the environment with growing awareness about the

implications of global warming non-biodegradable solid waste,harmful impact of pollutants etc., both marketers and consumers

are becoming increasingly sensitive to the need for switch in to

green products and services


3/24

5/14/12

Green marketing involves developing and promoting productsand services that satisfy customer's want and need for Quality,

Performance, Affordable Pricing and Convenience withouthaving a detrimental input on the environment.

Green marketing companies seek to go above and beyondtraditional marketing by promoting environmental core values inthe hope that consumers will associate these values with theircompany or brand. Engaging in these sustainable activities canlead to creating a new product line that caters to a new targetmarket.

There is a popular saying that emphasizes the importance

"Take care of Earth and the Earth will take care ofyou..."


4/24

5/14/12

Definitions Green marketing refers to all activities designed to generate

and facilitate any exchanges intend to satisfy human needs orwants, such that satisfaction of these needs & wants occurs, withminimal detrimental impact on the natural environment.

Polonsky (1994) defines green marketing as all activitiesdesigned to generate and facilitate any exchanges intended tosatisfy human needs or wants, such that the satisfaction of theseneeds and wants occurs, with minimal detrimental impact on thenatural environment.

According to the American Marketing Association, greenmarketing is the marketing of products that are presumed to beenvironmentally safe. Thus green marketing incorporates a

broad range of activities, including product modification,

changes to the production process, packaging changes, as well


5/24

5/14/12

Evolution of GreenMarketing

The green marketing has evolved over a period of time.

According to Peattie (2001), the evolution of green marketing hasthree phases:

v First phase was termed as "Ecological" green marketing, andduring this period all marketing activities were concerned to helpenvironment problems and provide remedies for environmental

problems.

v Second phase was "Environmental" green marketing and thefocus shifted on clean technology that involved designing ofinnovative new products, which take care of pollution and wasteissues.

v Third phase was "Sustainable" green marketing. It came intoprominence in the late 1990s and early 2000.


6/24

5/14/12

Why Green Marketing? Proper utilization of resources:

As resource are limited & wants are unlimited, it is important for the marketers to

utilize the resources efficiently without waste as well as to achieve the organization's

objective.

Interest of customers towards environment:

Various studies by environmentalists indicate that people are concerned about the

environment and are changing their behavior pattern so as to be less hostile towards it.

Now we see that most of the consumers, both individual and industrial, are becoming

more concerned about environment friendly products.


7/24

5/14/12

GREEN PRODUCTS AND ITSCHARACTERISTICS

The products that are manufactured through green technology andthat cause no environmental hazards are called green products.Promotion of green technology and green products is necessary forconservation of natural resources and sustainable development. We candefine green products by following measures:

Products those 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


8/24

5/14/12

Challenges in GreenMarketing

Need for Standardization

There is no standardization currently in place to certify a product as organic. Unlesssome regulatory bodies are involved in providing the certifications there will not be anyverifiable means. A standard quality control board needs to be in place for such labelingand licensing.

New Concept

Indian 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 educatedand made aware of the environmental threats. The new green movements need to reachthe masses and that will take a lot of time and effort.

Patience and Perseverance

The investors and corporate need to view the environment as a major long-terminvestment opportunity, the marketers need to look at the long-term benefits from thisnew green movement.


9/24

5/14/12

Green Marketing Mix

When companies come up with new innovations like eco friendlyproducts, they can access new markets, enhance their market shares, andincrease profits. Just as we have 4Ps product, prices, place and promotion inmarketing, we have 4Ps in green marketing too, but they are a bit different.

PRODUCT:

The ecological objectives in planning products are to reduce resourceconsumption and pollution and to increase conservation of scarce resources.

v For example, Nike is the first among the shoe companies to market itself as green.

It is marketing its Air Jordan shoes as environment-friendly, as it has significantlyreduced the usage of harmful glue adhesives.

PLACE:

The choice of where and when to make a product available will havesignificant impact on the customers. Very few customers will go out of theirway to buy green products.


10/24

5/14/12

PRICE:

Price is a critical and important factor of green marketing mix. Mostconsumers will only be prepared to pay additional value if there is a

perception of extra product value. This value may be improved performance,function, design, visual appeal, or taste. Green marketing should take all thesefacts into consideration while charging a premium price.

v Wal-Mart unveiled its first recyclable cloth shopping bag. IKEA started chargingconsumers when they opted for plastic bags and encouraged people to shop using

its "Big Blue Bag.

PROMOTION:

Green promotion involves configuring the tools of promotion, such asadvertising, marketing materials, signage, white papers, web sites, videos and

presentations by keeping people, planet and profits in mind.

v British petroleum (BP) displays gas station which its sunflower motif and boastsof putting money into solar power. Indian Tobacco Company has introducedenvironmental-friendly papers and boards, which are free of elemental chlorine.


11/24

5/14/12

Marketing Strategies

The marketing strategies for green

marketing include: -

Marketing Audit (including internal

and external situation analysis).


12/24

5/14/12

Golden Rules - Key For

Successful Green Marketing

Know you're

Customer


13/24

5/14/12

ADOPTION BY FIRMS

Green marketing has been widely adopted by the firmsworldwide and the following are the possible reasons cited for thiswide adoption:

Opportunities

Government Pressure

Competitive Pressure

Social Responsibility

Cost of Profit Issues


14/24

5/14/12

Green Marketing In Toyota-

A Case Study Toyota is well known for having the first hybrid-electric car on sale, the

Prius. They conducted business with the idea to contribute to the sustainable

development of the society and therefore of the Earth. Toyota has always tried to find the right balance between economic

growth and environmental preservation. And the key to keep that balanceis the everyday technological innovation.

Since 2003, Toyota has been establishing regional environmentalcommittees to promote environmental initiatives. These committees take

initiatives in all Toyota sites but also outside the sites .Altogether, theyform the Toyota Environmental Committee. All the plants of Toyota are also equipped with the EMS (environmental

management system) to make sure they comply with the internalrequirements.


15/24

5/14/12

They identified four main issues expected in the period2020-2030 likeEnergy/Global Warming, Recycling of resources, Substances of concern,

Atmospheric Quality and solutions have been adopted and implementedinside the company in all areas of activity. Among those solutions some keypoints can be identified: CO2 emissions management, reinforcement ofenvironmental management by business partners, elimination of substancesof concern, cooperation to develop a recycling-based society.

Toyota also edited the 'Toyota Green Purchasing Guidelines'. This verydetailed document draws the main green values, rules, expectationsregarding to its supply chain. This document is transmitted to all Toyotasuppliers around the world and these have to comply with what is written.


16/24

5/14/12

What did they do?

Toyota is developing a third generation of hybrid engines while many manufacturersare only developing their first generation. Besides, Toyota is also developing newhybrid models, including a SUV and a sport car.

Hybrid Prius:

Toyota was the first brand to introduce an ecological car with the Prius which was at thetime the first Hybrid car in the world. Today this one is the only familial car giving to thebuyer the opportunity to get a 15% premium and to drive ecologically. The Prius is notthe only model to give to consumers l5% premium since the iQ also allows it. Thismodel is a very small economic car. Toyota also proposes 2 other models rejecting less

than 115g/km of CO2, the Aygo and the Yaris.


17/24

5/14/12

Toyota also began a research on a hydrogenated biodiesel fuel, obtainedfrom a second generation biodiesel fuel

The group is finally working on the 'ultimate eco-car' which will makesustainability mobility a reality.

In 2002, Toyota began to work on a hydrogen-powered car. This car wasusing the original hybrid technology as core technology. The development

of this car is still continuing. At the same time Toyota is testing manyalternatives, many new sources of energy in order to find the best solutionfor the future.


18/24

5/14/12

How did they market?

They marketed their products by starting a campaign, which states theirEnvironmental vision:

"Zero emission cars, Zero waste plants, and the greener tomorrow

Through an advertisement by positioning themselves by value proposition,

"We see beyond cars"


19/24

5/14/12

Prius Commercial: Harmony between Man, Nature andMachine

Toyota's marketing theme for the 2010 Toyota Prius was: "HarmonyBetween Man, Nature And Machine".

Highlighting the car's latest features, the campaign paints the Prius as

offering what buyers want--advance technology, more power, safety,interior space, while simultaneously giving nature what it wants: lowertailpipe emissions

2 0 1 0 T o y o t a P r i u s - H a r m o n y - T V C o m m e r c i a l - Y o u T u b e . f l v

2 0 1 1 T o y o t a P r i u s C o m m e r c i a l ( t o y o


20/24

5/14/12

Other Firms Adopting Green Marketing


21/24

5/14/12

Green Marketing through OtherChannels of Marketing

WEBSITES


22/24

5/14/12

Signature Marketing: A Future Way ofGreen Advertising


23/24

5/14/12

CONCLUSION

Green marketing should not be considered as just one more approach tomarketing, but has to be pursued with much greater vigor, as it has anenvironmental and social dimension to it.

Marketers also have the responsibility to make the consumers understandthe need for and benefits of green products as compared to non-green ones. In

green marketing, consumers are willing to pay more to maintain a cleaner andgreener environment.

10 years down the line, green-compliance would be an absolute necessityfor all brands, and those that don't catch up are going to be left behind to die.


24/24

5/14/12

References

1. Mishra etal./Journal of Engineering, Science andManagement Education/Vol. 3, 2010/9-14

2. http://en.wikipedia.org/wiki/Green marketing

3. http://www.toyotabharath.com

4. http://www.greenmarketing.tv

5. http://www.themarketers.in

6. http://seminarprojects.com/Thread-green-marketing-new-hopes-and-challenges

7. Business Strategy and the Environment Bus. Strat. Env.11, 285297 (2002)

Green Marketing in Modern Industry

Documents

Transcript of Green Marketing in Modern Industry