Green marketing

VEERMANI PRASAD
VEERMANI PRASADMBA FINANCE at Delhi Institute Of Advanced Studies um Self employed
VEERMANI PRASAD
Roll no. 10812303916
MBA 2B, DIAS
Green marketing also known as environmental marketing and
sustainable marketing
It refers to organization's efforts at designing, promoting, pricing
and distributing products that will not harm the Environment
American Marketing Association, have defined green marketing
under three perspective
• The marketing of products that are presumed to be
environmentally safe
Retailing
Definition
• The development and marketing of products designed
to minimize negative effects on the physical
environment or to improve its quality
Social Marketing
Definition
• The efforts by organizations to produce, promote,
package, and reclaim products in a manner that is
sensitive or responsive to ecological concerns
Environmental
Definition
1980s
• First wave: CSR
report with
greater view on
company’s
environmental
impact by ice
cream seller Ben
and Jerry’s
1987
• United nation
defined
sustainable
development,
also known as
Brundtland report
• Green marketing
books published
by Kinnear and
Jacquelyn Ottman
2000
• Second wave: by
now CSR was
widespread
2005-6
• United nation
report, book by Al
Gore UK Stern
Report brought
scientific-
environmental
arguments to
wide public in
easy to
understand way
Originally grown
Recyclable, reusable and biodegradable
Contains natural ingredients
Contains recycled contents, non-toxic chemical
contents under approved chemical
Do not harm or pollute the environment
Not tested on animals
Opportunities available and competitive advantage
Corporate social responsibility on the part of companies
Government regulations
Competition with other responsible companies
Goodwill of the company
Environment conscious consumers
For conserving scarce natural resources
Product: The ecological objectives in planning
products are to reduce resource consumption and
pollution and to increase conservation of scarce
resources
Price: Price is a critical and important factor of green
marketing mix. Most consumers 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 these facts into
consideration while charging a premium price
Promotions: There are three types of green
advertising:
 Ads that address a relationship between a product/service
and the biophysical environment
 Those that promote a green lifestyle by highlighting a
product or service
 Ads that present a corporate image of environmental
responsibility
Place: The choice of where and when to make a
product available will have significant impact on the
customers. Very few customers will go out of their way
to buy green products
Ensures sustained long-term growth along with profitability
Saves money in the long run, although initial cost is more
Helps the companies to market their products and services keeping the
environment aspects in mind
Helps in accessing the new markets and enjoying competitive advantage
Most of the employees also feel proud and responsible to be working for an
environmentally responsible company
Promotes corporate social responsibility.
Green Spinning: Instead of environmentally improving the
product, some business firms try responding to environmental
challenges and pressures by presenting their own version of
environmental “facts” through their public relation efforts. Such
practices and tactics add to the already existing stock of
confusion in the market and substantially lower down the
credibility of environmental claims made by other genuinely
green firms
Green Selling: Companies continue to produce virtually the
same product, but they add some “new” environmental benefits
in their promotion campaigns to take advantage of increasing
consumer interest in the environment. When practiced in this
form, green marketing efforts on the part of the companies
remain concerned only with promotional activity, with little or
no effort being made to develop products which are truly green
Green Harvesting: Greening sometimes leads to a decrease
in product cost. This tempts many companies to go green and
harvest the market. Products are produced at lower costs, but
sold at a premium to earn extra profits. However, these
companies retreat and show reluctance when a further move
towards sustainability means increased product and marketing
costs for them
Enviropreneur Marketing: An enviropreneur is defined as an
an “environmentally committed individual, section or company that
seeks to bring to market innovative new green products”. Though the
enviropreneurs’ time and money spent on developing green products
are laudable, there is no guarantee that such products when launched
into the market would succeed commercially. As is often the case,
these products turn out to be great failures primarily due to the
preoccupation of their inventors with the engineering and
technological aspects of the new product’s development process.
Such companies get overly concerned with developing products that
are environmentally safe, but pay scant attention to undertaking
consumer research and understanding the needs and wants of their
prospective buyers. Such companies, therefore, end up producing
what is most environment friendly rather than producing
environmental products that customers actually want
Compliance Marketing: This type of green marketing
strategy is practiced by companies whose only environmental
initiatives are the ones imposed on them by regulations. These
companies comply with environmental laws just to promote
their products in the market. They are not genuinely keen on
green issues. They go in for green production and marketing
only when pressurised to do so, while at the same time lobbying
actively to ensure that no new legislations are enacted in the
future.
Green Washing: A lot of companies see new environmental
awareness as an opportunity for short-term profits rather than
as a market opportunity. Little wonder they adopt or make false
or misleading environmental claims which create consumer
distrust in green marketing efforts
1) Being genuine
2) Educating customers
3) Giving customers an opportunity to participate
4) Knowing customer
5) Empower consumers
6) Be transparent
7) Reassure the buyer
8) Consider pricing
Green products require renewable and
recyclable material, which is costly
Requires a technology, which requires huge
investment in Research & Development
Water treatment technology, which is too costly.
Majority of the people are not aware of green
products and their uses
Majority of the consumers are not willing to pay
a premium for green products.
1) HCL's Environment Management Policy under HCL
ecoSafe
• The key objective under HCL ecoSafe is targeted at
integrating environmental management procedures into its
business processes thereby protecting the environment,
health, and safety of all its stakeholders. HCL commits to
manufacture products that are environment friendly in all
respects and are free from hazardous chemicals
2) IBM
• IBM is selling green solutions to corporate data centers
where energy constraints and costs are limiting their ability
to grow, with the promise that the energy costs would be
reduced by half.
3) Honda India
• Introduced its Civic Hybrid car. However, initially it was
unable to sell the same due to the high price. The price was
reduced to Rs. 8 lakh, and within a day, 98 Civic Hybrids
were sold, which was more than what Honda had been able
to sell during the previous five months since its launch.
4) Idea Cellular
• Implemented its national campaign ‘Use Mobile, Save
Paper’. The company organized Green Pledge campaigns to
save paper and trees. Idea decorated bus shelters with
potted plants and tendril climbers to communicate the
green message.
5) ITC
ITC has introduced Paperkraft, a premium range of eco-friendly
business paper. The company’s social and farm forestry
initiative has greened over 80,000 hectares of arid land
• ITC has been 'Carbon Positive' three years in a row
(sequestering/storing twice the amount of CO2 than the
Company emits)
• ITC's businesses generate livelihoods for over 5 million
people
• ITC's globally recognised e-Choupal initiative is the world's
largest rural digital infrastructure benefiting over 4 million
farming families
• ITC's Sustainable Community Development initiatives
include women empowerment, supplementary education,
integrated animal husbandry programmes
6) IndusInd Bank
• Installed the country’s first solar-powered ATM and thus
brought about an eco-savvy change in the Indian banking
sector
7) Maruti: Greening of Supply Chain
• The company has been promoting 3R since its inception. As
a result the company has not only been able to recycle
100% of treated waste water but also reduced fresh water
consumption
8) Wipro Infotech
• launched a new range of desktops and laptops called Wipro
Greenware. These products are RoHS (Restriction of
Hazardous Substances) compliant thus reducing e-waste in
the environment
9) Introduction of CNG in Delhi
• New Delhi, capital of India, was being polluted at a very fast
pace until Supreme Court of India forced a change to
alternative fuels. In 2002, a directive was issued to
completely adopt CNG in all public transport systems to
curb pollution
10) Suzlon Energy manufactures
• Manufactures and markets wind turbines, which provide an
alternative source of energy based on wind power. This
green initiative taken by the company is extremely
important for reducing the carbon footprint
11)Digital Tickets by Indian Railways
12)No Polythene carry bags for free
13)Lead Free Paints from Kansai Nerolac
14)Promotion of statements or bill instead of paper bill
or statements by banks and telecom industries
15) Philips LED bulbs: LED bulbs with 5 years life time and very
energy efficient.
Green marketing
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Green marketing

  • 1. VEERMANI PRASAD Roll no. 10812303916 MBA 2B, DIAS
  • 2. Green marketing also known as environmental marketing and sustainable marketing It refers to organization's efforts at designing, promoting, pricing and distributing products that will not harm the Environment American Marketing Association, have defined green marketing under three perspective • The marketing of products that are presumed to be environmentally safe Retailing Definition • The development and marketing of products designed to minimize negative effects on the physical environment or to improve its quality Social Marketing Definition • The efforts by organizations to produce, promote, package, and reclaim products in a manner that is sensitive or responsive to ecological concerns Environmental Definition
  • 3. 1980s • First wave: CSR report with greater view on company’s environmental impact by ice cream seller Ben and Jerry’s 1987 • United nation defined sustainable development, also known as Brundtland report • Green marketing books published by Kinnear and Jacquelyn Ottman 2000 • Second wave: by now CSR was widespread 2005-6 • United nation report, book by Al Gore UK Stern Report brought scientific- environmental arguments to wide public in easy to understand way
  • 4. Originally grown Recyclable, reusable and biodegradable Contains natural ingredients Contains recycled contents, non-toxic chemical contents under approved chemical Do not harm or pollute the environment Not tested on animals
  • 5. Opportunities available and competitive advantage Corporate social responsibility on the part of companies Government regulations Competition with other responsible companies Goodwill of the company Environment conscious consumers For conserving scarce natural resources
  • 6. Product: The ecological objectives in planning products are to reduce resource consumption and pollution and to increase conservation of scarce resources Price: Price is a critical and important factor of green marketing mix. Most consumers 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 these facts into consideration while charging a premium price
  • 7. Promotions: There are three types of green advertising:  Ads that address a relationship between a product/service and the biophysical environment  Those that promote a green lifestyle by highlighting a product or service  Ads that present a corporate image of environmental responsibility Place: The choice of where and when to make a product available will have significant impact on the customers. Very few customers will go out of their way to buy green products
  • 8. Ensures sustained long-term growth along with profitability Saves money in the long run, although initial cost is more Helps the companies to market their products and services keeping the environment aspects in mind Helps in accessing the new markets and enjoying competitive advantage Most of the employees also feel proud and responsible to be working for an environmentally responsible company Promotes corporate social responsibility.
  • 9. Green Spinning: Instead of environmentally improving the product, some business firms try responding to environmental challenges and pressures by presenting their own version of environmental “facts” through their public relation efforts. Such practices and tactics add to the already existing stock of confusion in the market and substantially lower down the credibility of environmental claims made by other genuinely green firms Green Selling: Companies continue to produce virtually the same product, but they add some “new” environmental benefits in their promotion campaigns to take advantage of increasing consumer interest in the environment. When practiced in this form, green marketing efforts on the part of the companies remain concerned only with promotional activity, with little or no effort being made to develop products which are truly green
  • 10. Green Harvesting: Greening sometimes leads to a decrease in product cost. This tempts many companies to go green and harvest the market. Products are produced at lower costs, but sold at a premium to earn extra profits. However, these companies retreat and show reluctance when a further move towards sustainability means increased product and marketing costs for them
  • 11. Enviropreneur Marketing: An enviropreneur is defined as an an “environmentally committed individual, section or company that seeks to bring to market innovative new green products”. Though the enviropreneurs’ time and money spent on developing green products are laudable, there is no guarantee that such products when launched into the market would succeed commercially. As is often the case, these products turn out to be great failures primarily due to the preoccupation of their inventors with the engineering and technological aspects of the new product’s development process. Such companies get overly concerned with developing products that are environmentally safe, but pay scant attention to undertaking consumer research and understanding the needs and wants of their prospective buyers. Such companies, therefore, end up producing what is most environment friendly rather than producing environmental products that customers actually want
  • 12. Compliance Marketing: This type of green marketing strategy is practiced by companies whose only environmental initiatives are the ones imposed on them by regulations. These companies comply with environmental laws just to promote their products in the market. They are not genuinely keen on green issues. They go in for green production and marketing only when pressurised to do so, while at the same time lobbying actively to ensure that no new legislations are enacted in the future. Green Washing: A lot of companies see new environmental awareness as an opportunity for short-term profits rather than as a market opportunity. Little wonder they adopt or make false or misleading environmental claims which create consumer distrust in green marketing efforts
  • 13. 1) Being genuine 2) Educating customers 3) Giving customers an opportunity to participate 4) Knowing customer 5) Empower consumers 6) Be transparent 7) Reassure the buyer 8) Consider pricing
  • 14. Green products require renewable and recyclable material, which is costly Requires a technology, which requires huge investment in Research & Development Water treatment technology, which is too costly. Majority of the people are not aware of green products and their uses Majority of the consumers are not willing to pay a premium for green products.
  • 15. 1) HCL's Environment Management Policy under HCL ecoSafe • The key objective under HCL ecoSafe is targeted at integrating environmental management procedures into its business processes thereby protecting the environment, health, and safety of all its stakeholders. HCL commits to manufacture products that are environment friendly in all respects and are free from hazardous chemicals 2) IBM • IBM is selling green solutions to corporate data centers where energy constraints and costs are limiting their ability to grow, with the promise that the energy costs would be reduced by half.
  • 16. 3) Honda India • Introduced its Civic Hybrid car. However, initially it was unable to sell the same due to the high price. The price was reduced to Rs. 8 lakh, and within a day, 98 Civic Hybrids were sold, which was more than what Honda had been able to sell during the previous five months since its launch. 4) Idea Cellular • Implemented its national campaign ‘Use Mobile, Save Paper’. The company organized Green Pledge campaigns to save paper and trees. Idea decorated bus shelters with potted plants and tendril climbers to communicate the green message.
  • 17. 5) ITC ITC has introduced Paperkraft, a premium range of eco-friendly business paper. The company’s social and farm forestry initiative has greened over 80,000 hectares of arid land • ITC has been 'Carbon Positive' three years in a row (sequestering/storing twice the amount of CO2 than the Company emits) • ITC's businesses generate livelihoods for over 5 million people • ITC's globally recognised e-Choupal initiative is the world's largest rural digital infrastructure benefiting over 4 million farming families • ITC's Sustainable Community Development initiatives include women empowerment, supplementary education, integrated animal husbandry programmes
  • 18. 6) IndusInd Bank • Installed the country’s first solar-powered ATM and thus brought about an eco-savvy change in the Indian banking sector 7) Maruti: Greening of Supply Chain • The company has been promoting 3R since its inception. As a result the company has not only been able to recycle 100% of treated waste water but also reduced fresh water consumption 8) Wipro Infotech • launched a new range of desktops and laptops called Wipro Greenware. These products are RoHS (Restriction of Hazardous Substances) compliant thus reducing e-waste in the environment
  • 19. 9) Introduction of CNG in Delhi • New Delhi, capital of India, was being polluted at a very fast pace until Supreme Court of India forced a change to alternative fuels. In 2002, a directive was issued to completely adopt CNG in all public transport systems to curb pollution 10) Suzlon Energy manufactures • Manufactures and markets wind turbines, which provide an alternative source of energy based on wind power. This green initiative taken by the company is extremely important for reducing the carbon footprint
  • 20. 11)Digital Tickets by Indian Railways 12)No Polythene carry bags for free 13)Lead Free Paints from Kansai Nerolac 14)Promotion of statements or bill instead of paper bill or statements by banks and telecom industries 15) Philips LED bulbs: LED bulbs with 5 years life time and very energy efficient.