GREEN MARKETING

BY-
a2zmba.blogspot.com
 What is Green Marketing?
“ The study of the positive and negative aspects of
marketing activities on pollution, energy depletion
and non-energy resource depletion.” –AMA, 1975

“ Green Marketing 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.”
 Why Is It Important
Unlimited
Wants
Alternative
Ways
T I NG
Limited K E
R
Resources N MA
EE
GR

Green Marketing looks at how marketing activities utilize limited

resources, while satisfying consumers’ unlimited wants, both of
individuals and industry, as well as achieving the selling
organization's objectives
 Why To Go For It?

• Opportunity
• Moral Obligation
• Pressure from Government
• Competitor’s Environmental Activities
• Cost factors
1. Opportunity
Firms marketing goods with environmental
characteristics will have a competitive advantage over
firms marketing non-environmentally responsible
alternatives.
For Example:

Mcdonalds replaced clamshell packaging with waxed

paper. Because of polysterine production and ozone
layer depletion

Xerox introduced a "high quality" recycled photocopier

paper in an attempt to satisfy the demands of firms for
less environmentally harmful products
2. Social Responsibility
Environmental issues being integrated into the
firm's corporate culture.

Firms in this situation can take two perspectives;

Promote as a Do not promote

marketing tool
Body Shop heavily 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

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

Coca-Cola. has invested large sums of money in

various recycling activities, as well as having
modified their packaging to minimize its
environmental impact
3.Governmental Pressure
Government wants to "protect" consumers and
society; Governmental regulations relating to
environmental marketing are designed to protect
consumers in several ways:

• Reduce production of harmful goods or by-

products;
• Modify consumer and industry's use and/or
consumption of harmful goods; or
• Ensure that all types of consumers have the ability
to evaluate the environmental composition of
goods.
4.Competitive Pressure
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:

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
 Why Not To Go For It?
• Misleading to consumers or industry
• Breach of regulations/ laws
• Consumer perception may not be right
• Environmentally friendly decision today
may be harmful tomorrow
• All followers may make the same mistake
as their leader
• ‘Minimise waste’ instead of ‘Appropriate
uses of waste’
 4Ps Of Green Marketing
Like conventional marketers, green marketers must address
the ‘four Ps’in innovative ways.
PRODUCT
Entrepreneurs wanting to
exploit emerging green
markets will either:
• identify customers’
environmental needs and
develop products to address
these needs
• develop environmentally
responsible products to have
less impact than
competitors.
PRICE
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 PROMOTION

Very few customers will go out Smart green marketers will

of their way to buy green be able to reinforce
products merely for the sake environmental credibility by
of it. Marketers looking to using sustainable marketing
successfully introduce new and communications tools
green products should, in most and practices.
cases, position them broadly in
the market place so they are
not just appealing to a small For example: To reduce the
green niche market. use of plastic bags and
promote their green
This can be achieved by in-
commitment, some retailers
store promotions and visually
sell shopping bags.
appealing displays or using
recycled materials to
emphasize the environmental
and other benefits.
 Consumer’s Responsibility
I Damage The Environment Because...
23% 26%

8%
21%
12% 10%
No Alternatives To Cheap
Don't Understand Issue No Time
Not Convenient Lazy

Ultimately green marketing requires that consumers want a cleaner

environment and are willing to "pay" for it, possibly through higher
priced goods, modified individual lifestyles, or even government
While firms must bear much of the responsibility
for environmental degradation, ultimately it is
consumers who demand goods, and thus create
environmental problems.

It must be remembered that it is the uncaring

consumer who chooses to disposes of their waste
in an inappropriate fashion
 Conclusion
Green marketing covers more than a firm's
marketing claims.

While firms can have a great impact on the

natural environment, the responsibility
should not be theirs alone
Thank You!