Green Marketing: By: Misbah Ul Islam Sem-Ii CMS, Jmi

GREEN MARKETING
By:
Misbah Ul Islam
SEM-II
CMS, JMI
What is Green Marketing?
"Green Marketing" refers to holistic marketing
concept wherein the production, marketing
consumption & disposal of products and services
happen in a manner that is less detrimental to the
environment with growing awareness about
sustainability.
It incorporates a broad range of activities including

 Product modification,
 Changes to the production process
 Packaging changes
 Modifying advertising
Why Green Marketing?
Green marketing is inevitable in a market where resources are
scarce and demands are infinite.
 While the shift to "green" may appear to be expensive in the short term,
it will definitely prove to be indispensable and advantageous, cost-wise
too, in the long run.
 People are concerned about the environment and are changing their
behavior pattern so as to be less hostile towards it.
 Most of the consumers, both individual and industrial, are becoming

more concerned about environment-friendly products
 As a result, green marketing has emerged, which aims at marketing

sustainable and socially-responsible products and services.
History
Now is the era of recyclable, non-toxic and environment-friendly
goods. This has become the new mantra for marketers to satisfy
the needs of consumers and earn better profits. But when and how
did this started?
 Green marketing was given prominence in the late 1980s and 1990s after
the proceedings of the first workshop on Ecological marketing held in Austin,
Texas (US), in 1975.
 According to Peattie (2001), the evolution of green marketing has three

phases:
First phase was termed as "Ecological" green marketing, during this period all
marketing activities were concerned to help environment problems.
Second phase was "Environmental" green marketing and the focus shifted on clean
technology, involving innovative new products, which take care of pollution and waste
issues
Third phase was "Sustainable" green marketing. It came into prominence in the late
1990s and early 2000.
Marketing Mix of Green Marketing
Just as we have 4Ps (product prices, place and promotion) in
marketing, we have 4ps in green marketing too, but they are a bit
different. They are buttressed by three additional Ps, namely
people, planet and profits.
 PRODUCT:
The products have to be developed depending on the needs of the
customers who prefer environment friendly products.
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 significantly reduced the usage of harmful glue adhesives.
 PRICE
Green pricing takes into consideration the people, planet and profit in a
way that takes care of the health of employees and communities and
ensures efficient productivity.
 Wal Mart unveiled its first recyclable cloth shopping bag.
Marketing Mix (contd.)
 PLACE
 Green place is about managing logistics to cut down on transportation
emissions, thereby in effect aiming at reducing the carbon footprint
 For example, instead of marketing an imported mango juice in India it
can be licensed for local production avoiding shipping of the product
from far away, thus reducing shipping cost & carbon emissions.
 PROMOTION
 Green promotion involves configuring the tools of promotion, such as
advertising, marketing materials, by keeping people, planet and profits in
mind.
 Toyota is trying to push gas/electric hybrid technology into much of its
product line. It is also making the single largest R&D investment in the
every-elusive hydrogen car and promoting itself as the first eco-friendly
car company.

Why is Green Marketing Chosen by Most Marketers?
Most of the companies are venturing into green

marketing because of the following reasons:
 Opportunity
 In India, around 25% of the urban consumers prefer
environmental-friendly products. Therefore, green marketers
have diverse and fairly sizeable segments to cater to.
 Social Responsibility
 Many companies have started realizing that they must
behave in an environment-friendly fashion. They believe both
in achieving environmental objectives as well as profit related
objectives.
Importance (contd.)
 Governmental Pressure
 Various regulations are framed by the government to
protect consumers and the society at large. The Indian
government too has developed a framework of legislations
to reduce the production of harmful goods and by products.
 Competitive Pressure
 Many companies take up green marketing to maintain their
competitive edge.
 Cost Reduction
 Reduction of harmful waste may lead to substantial cost
savings. Firms develop symbiotic relationship whereby the
waste generated by one company is used by another as a
cost-effective raw material.
Benefits of Green Marketing
Companies want to have an early-mover advantage on the
present environment conscious consumers as they have to
eventually move towards becoming green. Some of the
advantages of green marketing are:
 It ensures sustained long-term growth along with profitability.
 It saves money in the long run, thought initially the cost is more.
 It helps companies market their products and services keeping the

environment aspects in mind. It 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.
Problems of Green Marketing
Many organizations want to turn green, as an
increasing number of consumers want to
associate themselves with environmental-friendly
products. But there are a few roadblocks:
 Confusion among the consumers regarding the products.
 Distrust regarding the credibility of green products.
 Marketers of green products need to be much more

transparent, and refrain from breaching any law or
standards relating to products or business practices.
Path to “Greeness”
Green marketing focusses on promoting the consumption of
green products. Companies which embark on green marketing
should adopt the following principles in their path towards
"greenness" :
 Adopt new technology/process or modify existing technology/process so

as to reduce environmental impact.
 Establish a management and control system that will lead to the

adherence of stringent environmental safety norms.
 Using more environment-friendly raw materials at the production stage

itself.
 Explore possibilities of recycling of the used products so that it can be

used to offer similar or other benefits with less wastage.

Marketing Strategies
The marketing strategies for green marketing

include: -
 Marketing Audit (including internal and external

situation analysis)
 Develop a marketing plan outlining strategies with
regard to 4 P's
 Implement marketing strategies
 Plan results evaluation
Conclusion
A clever marketer is one who not only convinces the
consumer, but also involves the consumer in marketing
his product.
 With the threat of global warming looming large, it is extremely important

that green marketing becomes the norm rather than an exception or just a
fad.
 Recycling of paper, metals, plastics, etc., in a safe and environmentally

harmless manner should become much more systematized and universal.
 Marketers also have the responsibility to make the consumers understand

the need for and benefits of green products
 Green marketing assumes even more importance and relevance in

developing countries like India.

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GREEN MARKETING

It incorporates a broad range of activities including

 Most of the consumers, both individual and industrial, are becoming

 As a result, green marketing has emerged, which aims at marketing

 According to Peattie (2001), the evolution of green marketing has three

Most of the companies are venturing into green

 It ensures sustained long-term growth along with profitability.

 It helps companies market their products and services keeping the

 Most of the employees also feel proud and responsible to be working

 Confusion among the consumers regarding the products.

 Distrust regarding the credibility of green products.

 Marketers of green products need to be much more

 Adopt new technology/process or modify existing technology/process so

 Establish a management and control system that will lead to the

 Using more environment-friendly raw materials at the production stage

 Explore possibilities of recycling of the used products so that it can be

The marketing strategies for green marketing

 Marketing Audit (including internal and external

 With the threat of global warming looming large, it is extremely important

 Recycling of paper, metals, plastics, etc., in a safe and environmentally

 Marketers also have the responsibility to make the consumers understand

 Green marketing assumes even more importance and relevance in

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