2016 3rd International Conference on Green Technology and Sustainable Development

Green Marketing Strategy

– A New Trend for Businesses in Vietnam
Nguyen Thi Thanh Van Nguyen Thien Duy
University of Economics Ho Chi Minh
Economics Faculty, UTE
Ho Chi Minh city, Vietnam
Ho Chi Minh city, Vietnam
E-mail address: [email protected]
E-mail address: [email protected]

Abstract — Recently, consumers are not only pay attention Reference [5] stated that, green marketing is a holistic,
to the quality and price of goods but also interested in the integrated approach that continually re-evaluates how firms
impact of products on the environment during their lifecycle. can achieve corporate objective and meet consumer needs
Therefore, to meet the consumers’ needs, businesses are while minimizing long-term ecological harm.
forced to change the production processes, logistics and
Reference [6] introduced the concept, green marketing as
marketing operations. In the field of marketing, the green
marketing that meets the present needs of consumers and
marketing strategy, which seems to be a useful tool for solving
businesses while also preserving or enhancing the ability of
that problem, had appeared and became popular in the
future generations to meet their needs.
developed countries. However, this concept is still new in the
developing countries such as Vietnam. The overall of this Thus, there is not a universal concept of green marketing
paper is to introduce green marketing strategy as well as the but we can find the common ideal, green marketing is the
need to apply it. organizational commitment in which focus on products and
services friendly with human environment, making marketing
Keywords — Green marketing strategy, Sustainability,
activities in an environmental responsible.
Marketing Mix.
Green marketing was also known as terms
I. INTRODUCTION
“environmental marketing”, “eco-marketing”, “sustainable
In recent years, the human environment has a large of marketing” or “marketing for green products” [7].
changes because of the human’s destructive actions. Faced
B. Differences Between Traditional and Green
with drought, floods, storms and our limited resources to take
Marketing
form the awareness of sustainable development. Green topic
have been researched in business and technology under Follow the fig. 1, the main differences between
concepts such as sustainable solutions, green products, green traditional and green marketing are the environment and
marketing, green processes [1] [2]. Green marketing was first stakeholder. The long-term gold of traditional marketing are
introduced by Lazez in 1969 as a social dimension of the customer satisfy and the company’s profit. However, green
marketing strategy that addresses limited of resources, marketing is not only focus on understanding the commercial
environmental impacts to marketing activities and greening of exchange relationship, but also understanding an
the different aspects of traditional marketing. This time to the organization’s relationship with society. Green marketing
1980s, businesses realized the important of green marketing as helps firms achieve their objectives and also meet the needs of
the way to increase competitive advantage. stakeholders, minimize the impact on the natural environment.
II. GREEN MARKETING
A. What is Green Marketing?
Green marketing is all marketing activities toward to
protect the environment. This concept has transformed the
traditional marketing thinking [3]. Today, the concept of green
marketing entails certain fundamental elements, and some of
concepts were given:
Reference [4] defined, green marketing as a holistic and
responsible management process that identifies, anticipates,
satisfies and fulfils stakeholder requirements, for a reasonable
reward, that does not adversely affect human or natural
environment wellbeing.

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DOI 10.1109/GTSD.2016.36

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 Traditional Marketing Green Marketing

Firm and customer Parties involved in exchange Firm, customer, environment

Customer satisfy Customer satisfaction
Firms achieve objectives Objectives Satisfaction of firm objectives
Minimizing ecological impact caused

Economic responsibility Corporate responsibility Social responsibility

Entire product value chains from

From manufacture to product use Reach of marketing decisions obtaining raw materials to post-
consumption

Legal requirements Ecological demands Beyond law: design for environment

Confrontation or passive attitude Green pressure groups Open relationship and collaboration

Fig. 1: Differences between traditional and green marketing

Reference [8].

C. Benefits and Challenges of Green Marketing

The benefits of green marketing are create a sustainable strategically positioning the products in the minds of
competitive advantage; increase the profit and revenue; customers.
decrease the energy consumption; optimizing of material Nowadays, firm management and researcher are more pay
flows; reduce the pollution and waste; cost saving for firms. attention to proactive green marketing strategy which firms
On the other hand, businesses are facing with a plenty of will act before they are forced to respond to external threats
challenges while some firms have used false promises and and create new opportunities in the environment [11]. This
misleading advertisements to make their products look green, strategy helps firms increase its performance in long term and
which actions have damaged customer and investor trust in sustainable advantages.
green claim.
Proactive green marketing strategy focus on the customer
Reference [9] gave a summary of the benefits and needs, other company stakeholder, future generations of
challenges of green marketing in the table 1. customers, and fulfill the needs with creative solution due to
D. What Should Businesses Do in Green Marketing the sustain. This strategy mentions from the perspective of the
Strategy? marketing mix as follows:
The change is inevitable in the laws of the development. Green product: design green product is the first step
Nowadays, people are more interested in the environment so creative the meeting between supply and demand. A product
businesses are forced to change their marketing strategies. will true green when its manufacture is not harmful to the
Green marketing strategy may meet their needs. It includes environment [12]. Therefore, the production process must be
two characteristics: one is, businesses focus on developing interested in recycling and biodegradable [11]. Specifically,
products to meet the customer’s needs that have minimal companies need produce with the raw materials which
impact on the environment, two is, the creation of a perception preserve natural resources; waste is managed closely;
in the minds of the customers so as to emphasize the quality of packaging and wrapping do not make pollution.
the product and the firm’s commitment towards the Green price: when businesses install a new technology,
environment [10]. employees training, waste treatment, communicate with
Green marketing strategy promotes the autonomy of customers which make the production cost increase.
businesses in marketing activities. The proactive approach in Obviously, the cost would make into the price of a product.
green marketing is aimed at gaining competitive advantage by However, the price of green products can be low if companies
do away with packaging material, increase recycling.
Moreover, businesses have to build the customers’ trust, as the
result, they will be persuaded to pay a premium.

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 TABLE I: BENEFITS AND CHALLENGES OF GREEN MARKETING

Benefits of green marketing References Challenges of green References

marketing

Better brand image and UNEP (2007), Lawrence Sometimes non-green Davis (1991)
reputation among targeted (1991), Porter & Linde (1995) products have superior
attributes and it is a challenge
to overcome this fact in an
honest way

Environment excellence as a Porter & Linde (1995) Customer may get confused Polonsky (1994), Ginsberg &
good management practice about the true nature of green Bloom (2004), Peattie &
marketing messages Crane (2005)
Better profitability and Charter et al. (2002), Customer believe that greener Peattie (1991), Ginsberg &
increased revenue if Ginsberg & Bloom (2004), products are somehow Bloom (2004)
customers are willing to pay Kassaye (2001) inferior
premium for green products
There is possibility for UNEP (2007) To reach a small target Peattie & Crane (2005)
continuous support from audience creates extra cost,
customers and communities therefore, can make green
marketing more expensive

A way to differentiate from Ginsberg & Bloom (2004), Customers may have lost their Davis (1991), Ginsberg &
competitors UNEP (2007) truth in green marketing Bloom (2004), Peattie &
because of previous green Crane (2005)
wash, green spinning and
green harvesting issues

Increasing goodwill by doing Porter & Linde (1995), Firms issues create barriers Pujari et al. (2004), Peattie
more than legislation requires Ginsberg & Bloom (2004) such as how to integrate (2001)
sustainable thinking into the
overall company culture.

Firms can response to social Polonsky (1994) Customers and investors does Polonsky (1994), Mathur &
and environment not value green marketing Mathur (2000), Ginsberg &
responsibility requirements Bloom (2004), Peattie &
Crane (2005)

Adapted from reference [9]

Green distribution: transportation of goods is a step, which III. CONCLUSION

caused the environmental damage. Therefore, businesses
should select channels that ensure the safety of the In recent years, the concept green marketing strategy has
transportation of products and minimize environmental harm. appeared in numerous academic studies as well as empirical
researches in the developed countries. Benefits of this strategy
Green promotion: green messages send to customers are wide such as reducing production cost, creating brand
through public relation activities, sales promotions by which differentiation, gaining profit and revenue while protecting the
the customers will be affected while decide buy goods. Green human environment. Green marketing strategy not only can be
promotions build a bridge between companies and customers. harnessed to derive competitive advantage, but also can be
It can be used to publicize products and create the awareness increased sustainable welfare of the society. Therefore, this is
of green products in customers’ minds. Consequently, the key the useful strategy for businesses in the developing countries
messages must be exact, honest and reliable. during sustainable developmental process.
To practice green marketing strategy, companies must
focus on green products, green price, green distribution, green

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promotion. However, the successful implementation of this
strategy depends on many factors such as the government’s
supports, the cooperation of stakeholder. This paper is only a
brief introduction to green marketing, so in the future, need
many researches in this field, especially research for
developing countries.

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