green mkting iiim
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INTERNATIONAL SCHOOL OF INFORMATICS AND
MANAGEMENT (I.S.I.M.).
SEMINAR ON CONTEMPORARY MANAGEMENT ISSUE.
Subject:
GREEN MARKETING:
OPPURTUNITIES AND CHALLENGES.
SUBMITTED BY:
DINESH KUMAR ACHARYA
MBA/07/1326
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Acknowledgement
I take this opportunity to thank my guide Dr. Ruby
Dwivedi Madam who apart from being a constant
source of inspiration and encouragement alsoprovided me with her timely help and scholarly ideas
in giving final shape to this report.
I also thank the college library and Computer lab of
I.S.I.M. which provided me many books, round the
clock internet facility to satisfy my thirst of
knowledge related to my subject matter.
I also express my heartily gratitude to all my friends
for their kind support. It was due to their valuable
guidance and support that helped me to complete the
report with a lot of learning.
Dinesh Kumar Acharya.
MBA- II Sem.
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TABLE OF CONTENTS
1. Introduction
2. What exactly is Green Marketing?
3. Evolution of Green Marketing.
4. Why Green Marketing?
5. Benefits of Green Marketing.
6. Adoption of Green Marketing Mix
The Four Ps of Green Marketing
6.1. Product.
6.2. Price.
6.3. Place.
6.4. Promotion.
7. Strategies for Green Marketing.
8. Strengths and Problems of Green Marketing
9. Some cases
10.Conclusion
11.Reference
Introduction
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'I'll go out for a breath of fresh air' is an often-heard
phrase. But how many of us realize that this has become
irrelevant in today's world, because the quality of air in our
cities is anything but fresh.
The moment you step out of the house and are on the road
you can actually see the air getting polluted; a cloud of
smoke from the exhaust of a bus, car, or a scooter; smoke
billowing from a factory chimney, fly ash generated by
thermal power plants, and speeding cars causing dust to rise
from the roads. Natural phenomena such as the eruption of
a volcano and even someone smoking a cigarette can also
cause air pollution.
Air pollution is aggravated because of four developments:
increasing traffic, growing cities, rapid economic
development, and industrialization. The Industrial Revolution
in Europe in the 19th century saw the beginning of air
pollution as we know it today, which has gradually become a
global problem. Air pollution is nothing new. Ever since the
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discovery of fire, less-than-desirable substances have been
vented into the air. Every Govt. is trying to minimize this
problem. But regardless of the efforts, air pollution continues
to be a serious local and world-wide problem.
Although environmental issues influence all human activities,
few academic disciplines have integrated green issues into
their literature. This is especially true of marketing. As
society becomes more concerned with the natural
environment, businesses have begun to modify their
behavior in an attempt to address society's "new" concerns.
Some businesses have been quick to accept concepts like
environmental management systems and waste
minimization, and have integrated environmental issues into
all organizational activities.
One business area where environmental issues have
received a great deal of discussion in the popular and
professional press is marketing. Terms like "Green
Marketing" and "Environmental Marketing" appear
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frequently in the popular press. Many governments around
the world have become so concerned about green marketing
activities that they have attempted to regulate them .For
example, in the United States (US) the Federal Trade
Commission and the National Association of Attorneys-
General have developed extensive documents examining
green marketing issues.
WHAT EXACTLY IS GREEN MARKETING
According toAmerican Marketing Association Green
Marketing is the marketing of products that are presumed to
be environmentally safe. Thus green marketing incorporates
a broad range of activities, including product modification,
changes to the production process, packaging changes, as
well as modifying advertising. Yet defining green marketing
is not a simple task. Other similar terms used are
Environmental Marketing and Ecological Marketing. The term
green marketing came into prominence in the late 1980s
and early 1990s. The American Marketing Association (AMA)
held the first workshop on "Ecological Marketing" in 1975.
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The proceedings of this workshop resulted in one of the first
books on green marketing entitled "Ecological Marketing"
Thus green marketing incorporates a broad range of
activities, including product modification, changes to the
production process, packaging changes, as well as modifying
advertising. Yet defining green marketing is not a simple
task. Indeed the terminology used in this area has varied, it
includes: Green Marketing, Environmental Marketing and
Ecological Marketing.
So the definition which encompasses all major components
of other definitions is:
"Green or Environmental Marketing consists of all activities
designed to generate and facilitate any exchanges intended
to satisfy human needs or wants, such that the satisfaction
of these needs and wants occurs, with minimal detrimental
impact on the natural environment." This definition
incorporates much of the traditional components of the
marketing definition that is "All activities designed to
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generate and facilitate any exchanges intended to satisfy
human needs or wants"
Evolution of Green Marketing
The green marketing has evolved over a period of time.
According to Peattie (2001), the evolution of green
marketing has three phases. First phase was termed as
"Ecological" green marketing, and during this period all
marketing activities were concerned to help environment
problems and provide remedies for environmental problems.
Second phase was "Environmental" green marketing and
the focus shifted on clean technology that involved designing
of 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.
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Why Green Marketing?
As resources are limited and human 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. So green marketing is inevitable.
There is growing interest among the consumers all over the
world regarding protection of environment. Worldwide
evidence indicates people are concerned about the
environment and are changing their behavior. As a result of
this, green marketing has emerged which speaks for
growing market for sustainable and socially responsible
products and services.
Benefits of Green Marketing
Green marketing offers business bottom line incentives and
top line growth possibilities.
While modification of business or production processes may
involve start-up costs, it will save money in the long term.
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For example the cost of installing solar energy is an
investment in future energy cost savings.
Companies that develop new and improved products and
services with environmental impacts in mind give
themselves access to new markets, substantially increase
profits and enjoy competitive advantages over those
marketing non-environmentally responsible alternatives.
Adoption of Green Marketing
There are basically five reasons for which a marketer should
go for the adoption of green marketing. They are -
Opportunities or competitive advantage
Corporate social responsibilities (CSR)
Government pressure
Competitive pressure
Cost or profit issues
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OPPORTUNITIES OR COMPETITIVE ADVANTAGE
In a 1992 study of 16 countries, more than 50% of
consumers in each country, other than Singapore, indicated
they were concerned about the environment .A 1994 study
in Australia found that 84.6% of the sample believed all
individuals had a responsibility to care for the environment.
A further 80% of this sample indicated that they had
modified their behavior, including their purchasing behavior,
due to environmental reasons .As demands change, many
firms see these changes as an opportunity to be exploited.
Given these figures, it can be assumed that firms marketing
goods with environmental characteristics will have a
competitive advantage over firms marketing non-
environmentally responsible alternatives. There are
numerous examples of firms who have strived to become
more environmentally responsible, in an attempt to better
satisfy their consumer needs.
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* McDonald's replaced its clam shell packaging with waxed
paper because of increased consumer concern relating to
polystyrene production and Ozone depletion.
* Tuna manufacturers modified their fishing techniques
because of the increased concern over driftnet fishing, and
the resulting death of dolphins.
* Xerox introduced a "high quality" recycled photocopier
paper in an attempt to satisfy the demands of firms for less
environmentally harmful products.
* Toyota Prius
For lots of good reasons, it's likely the most successful
"green" product in the US.
It provides consumers with all they seek in a sedan and
moreattractive styling, fuel efficiency, the ability to drive
for an unlimited amount of miles only stopping for fill-ups
(versus, for instance, having to stop for a 12-hour recharge
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if the engine were only electric), and because of the hybrid
engine, a quiet ride, since the car doesn't idle at stoplights.
The car's dashboard comes with an unusual feature: a
screen that lets the driver know which of the two engines is
in use and how efficiently fuel is being used at any given
moment; according to anecdotes, Prius owners try to beat
their previous record each time they drive!
When the car was introduced, ads focused on superior
performance evidenced by a quiet ride, and supplemental
ads touted its environmental bona fides. With energy prices
on the rise, the Prius is now being marketed for its superior
fuel efficiency, and a PR machine fuels efforts to link the car
to environmentally conscious celebrities and causes. Some
owners, it is reported, even buy the car for what is being
called "Conspicuous Conservation"letting all know that
they are environmentally astute.
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This is not to imply that all firms who have undertaken
environmental marketing activities actually improve their
behavior. In some cases firms have misled consumers in an
attempt to gain market share. In other cases firms have
jumped on the green bandwagon without considering the
accuracy of their behavior, their claims, or the effectiveness
of their products. This lack of consideration of the true
"greenness" of activities may result in firms making false or
misleading green marketing claims.
SOCIAL RESPONSIBILITY
Many firms are beginning to realize that they are members
of the wider community and therefore must behave in an
environmentally responsible fashion. This translates into
firms that believe they must achieve environmental
objectives as well as profit related objectives. This results in
environmental issues being integrated into the firm's
corporate culture. There are examples of firms adopting
both strategies. Organizations like the Body Shop heavily
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promote the fact that they are environmentally responsible.
While this behavior is a competitive advantage, the firm was
established specifically to offer consumers environmentally
responsible alternatives to conventional cosmetic products.
This philosophy is directly tied to the overall corporate
culture, rather than simply being a competitive tool.
Fund managers and corporate developers too, are taking
into account the environmental viability of the company they
invest in Venture Capitalists are investing in green business
because they believe it's a growth opportunity. Britain
based HSBC became the world's first bank to go carbon
neutral late last year and is now turning its 11000 buildings
in 76 countries worldwide into models of energy efficiency."
our customers have told us that they decide where they
shop based on whether the business is a good neighbor.
Says David North, Tescos community director.
An example of a firm that does not promote its
environmental initiatives is Coca-Cola. They have invested
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large sums of money in various recycling activities, as well
as having modified their packaging to minimize its
environmental impact. While being concerned about the
environment, Coke has not used this concern as a
marketing tool. Thus many consumers may not realize that
Coke is a very environmentally committed organization.
Another firm who is very environmentally responsible but
does not promote this fact, at least outside the organization,
is Walt Disney World (WDW). WDW has an extensive
waste management program and infrastructure in place, yet
these facilities are not highlighted in their general tourist
promotional activities.
GOVERNMENTAL PRESSURE
As with all marketing related activities, governments want to
"protect" consumers and society; this protection has
significant green marketing implications. Governmental
regulations relating to environmental marketing are
designed to protect consumers in several ways, 1) reduce
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production of harmful goods or by-products; 2) modify
consumer and industry's use and/or consumption of harmful
goods; or 3) ensure that all types of consumers have the
ability to evaluate the environmental composition of goods.
Governments establish regulations designed to control the
amount of hazardous wastes produced by firms.
California's Republican Gov. Arnold Schwarzenegger met
with British Labour Prime Minister Tony Blairto promote the
idea of transatlantic carbon emissions market. He also wants
to reduce his state's greenhouse gas emissions to 80%
below 1990 levels by 2050.
In Germany the Greens and the conservatives recently
agreed to join forces to run the city govt. of Frankfurt, the
first such coalition in country's history.
Many by-products of production are controlled through the
issuing of various environmental licenses, thus modifying
organizational behavior. In some cases governments try to
"induce" final consumers to become more responsible. For
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example, some governments have introduced voluntary
curb-side recycling programs, making it easier for
consumers to act responsibly. In other cases governments
tax individuals who act in an irresponsible fashion. For
example in Australia there is a higher gas tax associated
with leaded petrol.
New Delhi, the India's capital was getting polluted gradually
at a very fast pace till Supreme Court of India forced a
change of fuel on it. In 2002, a directive was issued to
completely adoptCNGin all public transport systems to curb
pollution.
One of the more recent publicized environmental regulations
undertaken by governments has been the establishment of
guidelines designed to "control" green marketing claims.
These regulations include the Australian Trade Practices
Commission's (TPC) "Environmental Claims in Marketing - A
Guideline , the US Federal Trade Commission's (FTC)
"Guides for the Use of Environmental Marketing Claims" and
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the regulations suggested by the National Association of
Attorneys-General .These regulations are all designed to
ensure consumers have the appropriate information which
would enable them to evaluate firm's environmental claims.
In addition to these guidelines many States in the US have
introduced legislation to control various environmental
marketing activities.
Investment analysts are starting to see the environmental
awareness of managers as a barometer of the likely long
term success of their companies. Green policies, they say,
tend to indicate hands on management, high consumer
confidence and good corporate governance. HSBCwon't do
deals with cos. on projects like oil pipelines through Russia,
that don't measure up to their environmental, social and
governance standards
COMPETITIVE PRESSURE
Another major force in the environmental marketing area
has been firms' desire to maintain their competitive position.
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In many cases firms observe competitors promoting their
environmental behaviors and attempt to emulate this
behavior. In some instances this competitive pressure has
caused an entire industry to modify and thus reduce its
detrimental environmental behavior. For example, it could
be argued that Xerox's "Revive 100% Recycled paper" was
introduced a few years ago in an attempt to address the
introduction of recycled photocopier paper by other
manufacturers. In another example when one tuna
manufacture stopped using driftnets the others followed suit
COST OR PROFIT ISSUES
Firms may also use green marketing in an attempt to
address cost or profit related issues. Disposing of
environmentally harmful by-products, such as
polychlorinated biphenyl (PCB) contaminated oil are
becoming increasingly costly and in some cases difficult.
Therefore firms that can reduce harmful wastes may incur
substantial cost savings. When attempting to minimize
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waste, firms are often forced to re-examine their production
processes. In these cases they often develop more effective
production processes that not only reduce waste, but reduce
the need for some raw materials. This serves as a double
cost savings, since both waste and raw material are
reduced.
* Philips Light's CFL
Philips Lighting's first shot at marketing a standalone
compact fluroscent light (CFL) bulb was Earth Light, at $15
each versus 75 cents for incandescent bulbs. The product
had difficulty climbing out of its deep green niche. The
company re-launched the product as "Marathon,"
underscoring its new "super long life" positioning and
promise of saving $26 in energy costs over its five-year
lifetime.Finally, with the U.S. EPA's Energy Star label to add
credibility as well as new sensitivity to rising utility costs and
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electricity shortages, sales climbed 12 percent in an
otherwise flat market
In other cases firms attempt to find end-of-pipe solutions,
instead of minimizing waste. In these situations firms try to
find markets or uses for their waste materials, where one
firm's waste becomes another firm's input of production.
One Australian example of this is a firm who produces acidic
waste water as a by-product of production and sells it to a
firm involved in neutralizing base materials.
Green Marketing Mix
Every company has its own favorite marketing mix. Some
have 4 P's and some have 7 P's of marketing mix. The 4 P's
of green marketing are that of a conventional marketing but
the challenge before marketers is to use 4 P's in an
innovative manner.
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The four Ps of green marketing
Like conventional marketers, green marketers must
address the 'four Ps' in innovative ways.
1. Product.
2. Price.
3. Place.
4. Promotion.
1. Product
Entrepreneurs wanting to exploit emerging green markets
will either:
identify customers' environmental needs and develop
products to address these needs; or
Develop environmentally responsible products to have
less impact than competitors.
The increasingly wide varieties of products on the market
that support sustainable development and are good for the
triple bottom line include:
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Products made from recycled goods, such as Quik'N
Tuff housing materials made from recycled broccoli
boxes.
Products that can be recycled or reused.
Efficient products, which save water, energy or
gasoline, save money and reduce environmental
impact. Queensland's only waterless printer, Printpoint,
reduces operating costs by using less water than
conventional printers and is able to pass the savings on
to customers.
Products with environmentally responsible packaging.
McDonalds, for example, changed their packaging from
polystyrene clamshells to paper.
Products with green labels, as long as they offer
substantiation.
Organic products many consumers are prepared to
pay a premium for organic products, which offer
promise of quality. Organic butchers, for example,
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promote the added qualities such as taste and
tenderness.
A service that rents or loans products such as toy
libraries.
Certified products, which meet or exceed
environmentally responsible criteria.
Whatever the product or service, it is vital to ensure that
products meet or exceed the quality expectations of
customers and is thoroughly tested.
Price
Pricing is a critical element of the marketing mix. Most
customers will only be prepared to pay a premium if there is
a perception of additional product value.
This value may be improved performance, function, design,
visual appeal or taste. Environmental benefits are usually an
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added bonus but will often be the deciding factor between
products of equal value and quality.
Environmentally responsible products, however, are often
less expensive when product life cycle costs are taken into
consideration, for example fuel-efficient vehicles, water-
efficient printing and non-hazardous products.
Place
The choice of where and when to make a product available
will have significant impact on the customers you attract.
Very few customers will go out of their way to buy green
products merely for the sake of it. Marketers looking to
successfully introduce new green products should, in most
cases, position them broadly in the market place so they are
not just appealing to a small green niche market.
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The location must also be consistent with the image you
want to project and allow you to project your own image
rather than being dominated or compromised by the image
of the venue. The location must differentiate you from your
competitors. This can be achieved by in-store promotions
and visually appealing displays or using recycled materials to
emphasize the environmental and other benefits.
Promotion
Promoting products and services to target markets includes
paid advertising, public relations, sales promotions, direct
marketing and on-site promotions.
Smart green marketers will be able to reinforce
environmental credibility by using sustainable marketing and
communications tools and practices. For example, many
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companies in the financial industry are providing electronic
statements by email.
E-marketing is rapidly replacing more traditional marketing
methods, and printed materials can be produced using
recycled materials and efficient processes, such as waterless
printing.
Retailers, for example, are recognizing the value of alliances
with other companies, environmental groups and research
organizations when promoting their environmental
commitment. To reduce the use of plastic bags and promote
their green commitment, some retailers sell shopping bags,
for example those produced by Land care Australia, Clean
Up Australia and Planet Ark, under the banner of the Go
Green Environment Fund.
The key to successful green marketing is credibility. Never
overstate environmental claims or establish unrealistic
expectations, and communicate simply and through sources
that people trust.
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Promote your green credentials and achievements. Publicize
stories of the company's and employees' green initiatives.
Enter environmental awards programs to profile
environmental credentials to customers and stakeholders.
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
Strengths and Problems of Green Marketing
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GREEN MARKETING DOES LEAD TO SUCCESS
Green marketing is not a theoretical concept only. A lot of
firms are using this concept to consolidate their market
positions. A few examples are-
Tesco is pumping $200mn into
environmental technologies to reduce the amount of
energy they use by 50% compared with 2000 levels, by
2010.In addition to building 80 new eco stores across
Britain over the next year the greenest of which will
be constructed of recycled materials and will burn food
waste for electricity-they are also making small
changes that could have big results. They are paying
customers not to use plastic bags which they expect
would cut consumption by 25% in two years.
Renewable Energy Corp.,a Norwegian Solar energy
company, had the world's largest ever renewable
energy IPO in may.
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$30 mn is what Goldman Sachs invested in Canadian
alternative-fuels companyLogen. It was one of the
several green ventures for ex-Goldman and Nature
Conservancy head Henry Paulson, US Treasury secy.
According to a recent report from the climate group, an
international environmental charity, 43 multinationals
including Bayer, Dupontsaved a combined $11.6 bn
last year by improving energy efficiency, reducing
waste output and harnessing solar power.
GE's ECOIMAGINATION campaign to cut carbon
emissions, partly by selling low emissions products
ranging from power plants to fluorescent light bulbs have
raked in $10.1 bn in 2005 as compared with $6.2 bn in
2004.
The World's two largest insurance cos. Swiss Re and
Munich Re are now taking cos. policies on climate
change into consideration when determining risks.
Similarly In Japan about 800 cos. annually publish
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reports explaining how they plan to cut carbon
emissions and make their products and factories
greener.
GEsigned a deal of $10 bn with British Petroleum to
develop hydrogen power plants that will capture carbon
and bury it underground so it doesn't lead to global
warming.
Goldman Sachs has invested more than $ 1bn in
renewable energy sources, including biofuels
Markets are also beginning to recognize that cos. that
do not do right by Mother Nature may have more
volatile stock prices. Goldman sachs' ESG
(Environmental, Social and Governance) Index now
ranks the world's largest cos. based on how
environmentally friendly their operations are.
Some of the Venture Capitalists who bankrolled the dot
com boom of 1990s now see alternative forms of
energy as next big thing. Vinod khosla, the silicon
valley venture capitalist who got big and early with
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Google and Amazon, is now betting $50mn of his dot
com cash on next generation ethanol.
Venture capital investmentin renewable energy cos.
was up 36 % last year to a record $739mn.
The wilder Hill Clean Energy Indexwhich charts 40
alternative energy firms has risen 485 since its 2004
debut.
World's largest wind turbine energy firm, India's
Suzlon Energy was 28 times oversubscribed when it
launched for $340 mn at the end of last year.
Chinese Solar company Suntech power raised $
400mn in December.
Largest venture capital backed IPO in Europe last year
was of German renewable energy company Q-cells,
which raised $ 400 mn in October.
Green marketing of cosmetics and toiletries in
Thailand
Use of traditional cosmetics and toiletries manufactured
from herbs and plant extracts has been popular in many
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Asian countries. However, green marketing of these
products is rather recent. Encouraged by the growing
environmental consciousness on the part of citizens and a
growing market for cosmetics and toiletries, several global
and local companies have entered Thailand. An
international company, The Body Shop, and a local
company, Oriental Princess, have employed green
marketing strategies to build their customer base in the
Thai market. Using case research method and
questionnaire-based surveys, an attempt has been made
in this paper to analyze the green marketing strategies of
these companies and their impact on consumer attitudes
and brand loyalty. The research shows that that the two
companies have made honest attempts to adopt green
marketing strategies. However, Thai customers consider
non-green attributes more important in making their
purchase decisions. The two case companies have been
able to create favorable attitudes and enjoy a high degree
of brand loyalty
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SOME PROBLEMS WITH GOING GREEN
No matter why a firm uses green marketing there are a
number of potential problems that they must overcome. One
of the main problems is that firms using green marketing
must ensure that their activities are not misleading to
consumers or industry, and do not breach any of the
regulations or laws dealing with environmental marketing.
For example marketers in the US must ensure their green
marketing claims can meet the following set of criteria, in
order to comply with the FTC's guidelines. Green marketing
claims must;
* Clearly state environmental benefits;
* Explain environmental characteristics;
* Explain how benefits are achieved;
* Ensure comparative differences are justified;
* Ensure negative factors are taken into consideration; and
* only use meaningful terms and pictures.
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Another problem firms face is that those who modify their
products due to increased consumer concern must contend
with the fact that consumers' perceptions are sometimes not
correct. Take for example the McDonald's case where it has
replaced its clam shells with plastic coated paper. There is
ongoing scientific debate which is more environmentally
friendly. Some scientific evidence suggests that when taking
a cradle-to-grave approach, polystyrene is less
environmentally harmful. If this is the case McDonald's
bowed to consumer pressure, yet has chosen the more
environmentally harmful option.
When firms attempt to become socially responsible, they
may face the risk that the environmentally responsible
action of today will be found to be harmful in the future.
Take for example the aerosol industry which has switched
from CFCs (chlorofluorocarbons) to HFCs (hydro
fluorocarbons) only to be told HFCs are also a greenhouse
gas. Some firms now use DME (dimethyl ether) as an
aerosol propellant, which may also harm the ozone layer
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.Given the limited scientific knowledge at any point in time,
it may be impossible for a firm to be certain they have made
the correct environmental decision. This may explain why
some firms, like Coca-Cola and Walt Disney World, are
becoming socially responsible without publicizing the point.
They may be protecting themselves from potential future
negative backlash; if it is determined they made the wrong
decision in the past.
While governmental regulation is designed to give
consumers the opportunity to make better decisions or to
motivate them to be more environmentally responsible,
there is difficulty in establishing policies that will address all
environmental issues. For example, guidelines developed to
control environmental marketing address only a very narrow
set of issues, i.e., the truthfulness of environmental
marketing claims. If governments want to modify consumer
behavior they need to establish a different set of
regulations. Thus governmental attempts to protect the
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environment may result in a proliferation of regulations and
guidelines, with no one central controlling body.
Reacting to competitive pressures can cause all "followers"
to make the same mistake as the "leader." A costly example
of this was the Mobil Corporation who followed the
competition and introduced "biodegradable" plastic garbage
bags. While technically these bags were biodegradable, the
conditions under which they were disposed did not allow
biodegradation to occur. Mobil was sued by several US
states for using misleading advertising claims. Thus blindly
following the competition can have costly ramifications.
The push to reduce costs or increase profits may not force
firms to address the important issue of environmental
degradation. End-of-pipe solutions may not actually reduce
the waste but rather shift it around. While this may be
beneficial, it does not necessarily address the larger
environmental problem, though it may minimize its short
term affects. Ultimately most waste produced will enter the
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waste stream, therefore to be environmentally responsible
organizations should attempt to minimize their waste, rather
than find "appropriate" uses for it.
Challenges Ahead
Green products require renewable and recyclable
material, which is costly.
Requires a technology, which requires huge
investment in R & D.
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.
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Some Cases
McDonald's restaurant's napkins, bags are made of
recycled paper.
Coca-Cola pumped syrup directly from tank instead of
plastic which saved 68 million pound/year.
Badarpur Thermal Power station of NTPC in Delhi is
devising ways to utilize coal-ash that has been a major
source of air and water pollution.
Barauni refinery of IOC is taken steps for restricting air
and water pollutants.
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Conclusion
Green marketing should not neglect the economic aspect of
marketing. Marketers need to understand the implications of
green marketing.
If you think customers are not concerned about
environmental issues or will not pay a premium for products
that are more eco-responsible, think again. You must find an
opportunity to enhance you product's performance and
strengthen your customer's loyalty,and command a higher
price.
Green marketing is still in its infancy and a lot of research is
to be done on green marketing to fully explore its potential
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References
www.greenmarketing.net/stratergic.html
www.epa.qld.gov.au/sustainable_ industries
www.wmin.ac.uk/marketingresearch/marketing/green
mix.html
www.indianmba.com/knowledgezone.
www.coolavenues.com/knowledgezone/marketing/gre
enmarketing:oppurtunities and challenges.