INTRODUCTION

Terms like "Green Marketing" appear 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. Other similar terms used are Environmental Marketing and Ecological Marketing. American Marketing Association Define: - 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 To succeed, any green strategy must fulfill three criteria: Firstly, it must be a sustainable and credible programmed, which brings real benefits to the environment.

 Secondly, it must deliver sound economic ROI and competitive advantage to the business. Thirdly, it must be supported by relevant green messages, which resonate with customers and prospects. Basically the main aim of the project is to analyze the developments which are taking place throughout the world to promote green products and green marketing.

GREEN MARKETING
Environmental issues have gained importance in business as well as in public life throughout the world. It is not like that a few leaders of different countries or few big renowned business houses are concerned about the day to day deterioration of oxygen level in our atmosphere but every common citizen of our country and the world is concerned about this common threat of global warming.

So in this scenario of global concern, corporate houses has taken green-marketing as a part of their strategy to promote products by employing environmental claims either about their attributes or about the systems, policies and processes of the firms that manufacture or sell them.

Clearly green marketing is part and parcel of overall corporate strategy; along with manipulating the traditional marketing mix (product, price, promotion and place), it require an understanding of public policy process. So we can say green marketing covers a broad range of activities.

Definition & Meaning

According to the American 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.

So, in simple terms Green marketing refers to the process of selling products and/or services based on their environmental benefits. Such a product or service may be environmentally friendly in itself or produced and/or packaged in an environmentally friendly way.

Green 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.

Ecological Humanitarian Political

Equality

Corporate Social Responsibility GREEN Fair Trade

Sustainability

New Consumerism NonProfit

Conservation

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.

Importance of Green Marketing Human Beings have limited resources on the earth, with which she/he must attempt to provide for the worlds' unlimited wants. There is extensive debate as to whether the earth is a resource at man's disposal. In market societies where there is "freedom of choice", it has generally been accepted that individuals and organizations have the right to attempt to have their wants satisfied. As firms face limited natural resources, they must develop new or alternative ways of satisfying these unlimited wants. Ultimately green marketing looks at how marketing activities utilize these limited resources, while satisfying consumers wants, both of individuals and industry, as well as achieving the selling organization's objectives.

When looking through the literature there are several suggested reasons for firms increased use of Green Marketing. Five possible reasons cited are: Organizations perceive environmental marketing to be an opportunity that can be used to achieve its objectives. Organizations believe they have a moral obligation to be more socially responsible. Governmental bodies are forcing firms to become more responsible. Competitors' environmental activities pressure firms to change their environmental marketing activities. Cost factors associated with waste disposal, or reductions in material usage forces firms to modify their behavior.

GOALS OF GREEN MARKETING Eliminate the concept of waste. Reinvent the concept of product. Make prices reflect actual and environmental costs. Make environmentalism profitable. Bringing out product modifications. Changing in production processes. Packaging changes. Modifying advertising.

NEED OF GREEN MARKETING:

An Anthropological View Issues like Global warming and depletion of ozone umbrella are the main for the healthy survival. Every person rich or poor would be interested in quality life with full of health and vigour and so would the corporate class. Financial gain and economic profit is the main aim of any corporate business. But harm to environment cost by sustain business across the globe is realized now though off late. This sense is building corporate citizenship in the business class. So green marketing by the business class is still in the selfish anthological perspective of long term sustainable business and to please the consumer and obtain the sanction license by the governing body. Industries in Asian countries are catching the need of green marketing from the developed countries but still there is a wide gap between their understanding and implementation.

CHALLENGES IN GREEN MARKETING

Need For Standardization: It is found that only 5% of the marketing messages from Green campaigns are entirely true and there is a lack of standardization to authenticate these claims. There is no standardization to authenticate these claims. There is no standardization currently in place to certify a product as organic. Unless some regulatory bodies are involved in providing the certifications there will not be any verifiable means. A standard quality control board needs to be in place for such labeling and licensing.

New Concept: Indian literate and urban consumer is getting more aware about the merits of Green products. But it is still a new concept for the masses. The consumer needs to be educated and made aware of the environmental threats. The new green movements need to reach the masses and that will take a lot of time and effort. By Indias ayurvedic heritage, Indian consumers do appreciate the importance of using natural and herbal beauty products. Indian consumer is exposed to healthy living lifestyles

such as yoga and natural food consumption. In those aspects the consumer is already aware and will be inclined to accept the green products. Patience and Perseverance: The investors and corporate need to view the environment as a major long-term investment opportunity, the marketers need to look at the long-term benefits from this new green movement. It will require a lot of patience and no immediate results. Since it is a new concept and idea, it will have its own acceptance period. Avoiding Green Myopia: The first rule of green marketing is focusing on customer benefits i.e. the primary reason why consumers buy certain products in the first place. Do this right, and motivate consumers to switch brands or even pay a premium for the greener alternative. It is not going to help if a product is developed which is absolutely green in various aspects but does not pass the customer satisfaction criteria. This will lead to green myopia. Also if the green products are priced very high then again it will lose its market acceptability.

BENEFITS OF GREEN MARKETING

Todays consumers are becoming more and more conscious about the environment and are also becoming socially responsible. Therefore, more companies are responsible to consumers aspirations for environmentally less damaging or neutral products. Many companies want to have an early mover advantage 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, though initially the cost is more. It helps the companies market their products and services keeping the environment aspects in mind. It helps in accessing the new markets and enjoying the competitive advantage. Most of the employees also feel proud and responsible to be working for an environmentally responsible company.

Golden Rules of Green Marketing 1. Know your customer: If you want to sell a greener product to consumers, you first need to make sure that the consumer is aware of and concerned about the issues that your product attempts to address. (Whirlpool learned the hard way that consumers wouldnt pay a premium for a CFC-free refrigerator because consumers didnt know what CFCs were!). 2. Empower consumers: Make sure that consumers feel, by themselves or in concert with all the other users of your product, that they can make a difference. This is called empowerment and its the main reason why consumers buy greener products. 3 .Be transparent: Consumers must believe in the legitimacy of your product and the specific claims you are making. Caution: Theres a lot of skepticism out there that is fueled by the raft of spurious claims made in the go-go era of green marketing that occurred during the late 80searly90s one brand of household cleaner claimed to have been environmentally friendly since 1884! 4. Reassure the buyer: Consumers need to believe that your product performs the job its supposed to do they won't forego product quality in the name of the environment. (Besides, products that dont work will likely wind up in the trash bin, and thats not very kind to the environment.) 5. Consider your pricing: If you're charging a premium for your product and many environmentally preferable products cost more due to economies of scale and use of higher-quality ingredients make sure that consumers can afford the premium and feel its worth it. Many consumers, of course, cannot afford premiums for any type of product these days, much less greener ones, so keep this in mind as you develop your target audience and product specifications.

Green Marketing Strategies V/S Conventional Marketing

4.4 GREEN MARKETING MIX

PRODUCT

Entrepreneurs wanting to exploit emerging green markets either: Identify customers environmental needs and develop products to address these needs or will develop environmentally responsible products to have less impact than competitors. The increasingly wide variety of products on the market that support sustainable developments are: Products made from recycled goods, such as Quick 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. 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.

 Certified products, which meet or exceed environmentally responsible criteria. Organic products-many customers are prepared to pay a premium for organic products, which offer promise of quality. Organic butchers, for example, promote the added qualities such as taste and tenderness. A service that rents or loans products-toy libraries. Whatever the product or service, it is vital to ensure that products meet or exceed the quality expectation of customers and is thoroughly tested.

PRICE Pricing is the 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 will be often being the deciding factor between products of equal value or quality. Environmentally responsible products, however are often less expensive when product life cycle coast 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 products available will have significant impact on the customers you attract. Very few customers go out of their way to buy green products merely for the sake of it. Marketers looking to successfully introduce new green products should position them broadly in the market place so they are not just appealing to a small green niche market. 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 venue. The location must differentiate you from the 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 include 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 communication tools and practices. For example, many 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 and promote their green commitments.

4.5 Green Marketing Process Green marketing process comprises with external and internal Ps. After integrating external and internal Ps, green success will automatically come through four Ss. Here external 7 Ps consists of Paying customers, Providers, Politicians, Pressure groups, Problems, Predictions and Partners; internal 7Ps consists of Products, Promotion, Price, Place, Providing information, Processes and Policies. After integrating external and internal 7Ps, we can find out the green successes through 4 Ss such as Satisfaction of stakeholder needs, Safety of products and processes, Social acceptability of the company and Sustainability of its activities.

External Green Ps Paying customers Providers Politicians Pressure groups Problems Predictions Partners

Internal Green Ps Products Promotion Price Place Providing information Processes Policies

Green Marketing

The Ss of Green Success Satisfaction of stakeholder needs Safety of products and processes Social acceptability of the company Sustainability of its activities

4.6 Green Marketing: A Corporate Initiative

Green Marketing is important in todays world because mankind has limited resources on the earth and if we want long term sustainability of human life on this earths surface, then companies has to learn to conserve these scarce natural resources and create products that have less environmental damage. Otherwise the very existence of humankind will be under question mark. Corporate are going green from the grassroots level to sustain and win the customers expectations. The environment is becoming increasingly important part of the corporate reputations and they are actively participating in greening the

corporate strategy. Companies have converted almost all the products to make them eco-friendly products. Following are the recent environment friendly initiatives taken by the companies.

Cipla: CFC-free Inhaler: Cipla, Indias second largest drug company by replacing all

market share has planned and started its CFC contained drugs to meet the international standard and Montreal

Protocol ozone layer warming. technology

ban deadline. The CFC depletes the and also is a major cause of global Cipla has updated the necessary

to avoid the CFC and has also done its clinical trial in India and overseas. The Rota haler and the Asthalin inhaler are environment friendly inhalers, used by asthma and bronchitis patients. These inhalers are using HFA (Hydro Fluro Alkaline) technology. The Rota haler is a powder based inhaler, different from regular inhaler which contains propellants.

Maruti Suzuki The company has remained ahead of regulatory requirements in pursuit of environment protection and energy conservation at its manufacturing facilities, and in development of products that use fewer natural resources and are environment friendly. The company credited the 'Just-in-Time' philosophy adopted and internalized by the employees as the prime reason that helped to excel in this direction.

The

company

has

been As a been waste water

promoting 3R since its inception. result the company has not only able to recycle 100% of treated water but also reduced fresh consumption. The company has

implemented rain water harvesting to recharge the aquifers. Also, recyclable packing for bought out components is being actively promoted. The company has been facilitating implementation of Environment Management System (EMS) at its suppliers' end. Regular training programs are conducted for all the suppliers on EMS. Surveys are conducted to assess the vendors who need more guidance. The systems and the environmental performance of suppliers are audited. The green co-efficient of this system is much better than the conventional system. The Countrys largest car manufacturer had managed to slash energy consumption per car at its Gurgaon factory by 26 per cent over the past six years, while its carbon dioxide (CO2) emissions during car manufacturing processes has come down 39 per cent in the past five years. The model with gas as fuel was adopted by Maruti Suzuki India Limited as their Green Marketing practices.

Bharat Petroleum Bharat Petroleum launched campaign to position itself as responsible entity. corporate into wind panels ran a a a green

Foraying

renewable energy-solar and power-it installed solar

on its service stations. It also

program to cut production of greenhouse gases by 10% across its units worldwide and achieved it much ahead of schedule. Cleaner fuels such as Greener Diesel (ultra low sulphur content) and BP Auotgas were developed. Almost all of its plants

are ISO 14001 certified. Currently it is running a program to contain its net emissions at current levels for ten years.

Hindustan Petroleum Hindustan petroleum owns a massive e-waste recycling plants, where enormous shredders and granulators reduce four million pounds of computer detritus each month to bite-sized chunks-the first step in reclaiming not just steel and plastic but also toxic chemicals like mercury and even some precious metals. HP will take back any brand of equipment; its own machines are 100 percent recyclable. It has promised to cut energy consumption by 20 percent by 2010.

Proctor & Gamble Laundry savings. detergents Proctor & are also touting (P&G) to to energy newest clean 85 clothes

Gambles

market entry, Tide Coldwater, is designed clothes effectively in cold water. About 80 percent of the energy used to wash

from heating water. Working with utility companies, P and G found that consumers could save energy and resources by using cold rather than warm water. As energy and resource prices continue to soar, opportunities for products offering efficiency and savings are destined for market growth.

ITC ITC has been 'Carbon Positive for three years in a row sequestering/storing twice the amount of CO2 than the Company emits. It has been 'Water Positive' six years in a row creating three times more Rainwater Harvesting potential than ITC's net consumption. It has obtained close to 100% solid waste recycling. All Environment, Health and Safety Management Systems in ITC conform to the best international standards. ITC's businesses generate livelihoods for over 5 million people.

ITC's globally recognized E-Choupal initiative is the world's largest rural digital infrastructure benefiting over 4 million farming families. ITC's Social and Farm Forestry initiative has greened over 80,000 hectares creating an estimated 35 million person days of employment among the disadvantaged. ITC's Watershed Development Initiative brings precious water to nearly 35,000 hectares of dry lands and moisture-stressed areas. ITC's Sustainable Community Development initiatives include women empowerment, supplementary education, integrated animal

husbandry programs.

4.5 Initiatives Taken By Government

Development of ISO 14000 Series of Standards.

ISO has been developed to help any company in any country to meet the goal of sustainable development and environmental friendliness. The ISO 14000 family of standards (i.e. ISO 14001, 14004, 14010, 14011 and 1412) were published as an official document in 1996. The ISO series aims to provide guidance for developing a comprehensive approach to environmental management and for standardizing some key environmental tools of analysis such as labeling and life cycle assessment.

Eco-Labeling Initiatives Eco label provide information regarding the environmental performance of products. The objective of eco-labeling is to provide authentication to genuine claims regarding the environmental impact of products and processes by manufacturers. In India the government has introduced the eco-mark scheme since 1981. The objectives of the scheme are: To provide incentives to manufacturers and importers to reduce the adverse environmental impact of products. To reward genuine initiatives by companies to reduce adverse impact of environmental impact of products. To assist consumers to become environmentally responsible in their daily lives by providing them information to take account of environmental factors in their daily lives. To encourage citizens to purchase products which have less environmental impact.

Eco-Labeling Schemes in India The Ministry of environment and forest of government of India has prescribed the following criteria for products that:

 They cause substantially less pollution than comparable products in production, usage and disposal. They are recycled and/or recyclable whereas comparable products are not. They contribute to a reduction on adverse environmental health consequences. They comply with laws, standards and regulations pertaining to the environment. Their price is not exorbitantly higher than comparable products.

Eco-Mark in India Under the concept, products which are less harmful to the environment or have benign impact on environment through the various stages of developmentmanufacture, packaging, distribution, use and disposal or recycling may be awarded the Eco-Mark. An earthen pot has been chosen as the logo for Eco-Mark scheme in India. The familiar earthen pot has renewable resource like earth, does not produce hazardous waste and consume little energy in making. As a symbol it puts across its environmental message. Its image has the ability to reach people and help to promote a greater awareness of the need to be kind to the environment. The logo Eco-Mark scheme signifies that the product which carries it does least damage to the environment.

4.6 Reasons for adoption of Green Marketing by the Firms.

Green marketing has been widely adopted by the firms worldwide and the following are the possible reasons cited for this wide adoption:

1) Opportunities - As demands change, many firms see these changes as an opportunity to be exploited and have a competitive advantage over firms marketing non-environmentally responsible alternatives. Some examples of firms who have strived to become more environmentally responsible, in an attempt to better satisfy their consumer needs are: 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.

2) 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 production of harmful goods or by-products. 2. Modify consumer and industry's use and/or consumption of harmful goods. 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.

3) Competitive Pressure - Another major force in the environmental marketing area has been firms' desire to maintain their competitive position. 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.

4) 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 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.

An example of a firm that does not promote its environmental initiatives is CocaCola. They have invested 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.

5) Cost or Profit Issues - Firms may also use green marketing in an attempt to address cost or profit related issues. Disposing of environmentally harmful byproducts, 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 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.

5.3 Green Buyers and Green Consumers Research about the identity and nature of green consumer has been the central character in the development of green marketing, as business attempt to understand and respond to external pressures to improve their environmental performance. Marketing practitioners and academics are attempting to identify and understand green consumers and their needs, and to develop market offerings that meet these needs. SEGMENTATION OF GREEN CONSUMERS True-Blue Greens- The most environmentally active segment of the society. Greenback Greens- Those most willing to pay the highest premium for green products. Spouts- Fence-sitters who have embraced environmentalism more slowly. Grousers- Uninvolved or disinterested in environmental issues, who feel the issues are too big for them to solve. Apathetic- The least engaged group who believe that the environmental indifference is main stream. Apart from this Natural Marketing Institute (NMI) divides the market into following categories:

Lohas- Very progressive on environment and society, looking for ways to do more; not too concerned about price. Naturalites- Primarily concerned about personal health and wellness, and use many natural products; would like to do more to protect the environment. Conventional- Practical, like to see the results of what they do; interested in green products that make sense in the long run. Drifters- Not too concerned about the environment, figuring weve got time to fix the environmental problems; dont necessarily buy a lot of green products. Unconcerned- Have other priorities, not really sure what green products are available and probably wouldnt be interested anyway; they buy products strictly on price, value, quality and convenience.

5.4 Consumer Information and Education If managers believe that consumers view greenness as a motivating variable, they should invest in conveying information through advertising, direct mailing, brand labels, in-store displays and pamphlets. The important points to be noted here are: a. Firms willing to provide clear, comprehensive and credible information must ensure that consumers have low cost to access it. b. Governmental policies and stakeholder initiatives can be important in reducing consumers search, information or transaction costs. c. Regulators can publish and disseminate it to the media by press releases and post it on the internet. d. Stakeholders can use the media as well as use their organization-specific vehicles such as newsletters. Green marketing can be successfully implemented by use of ICT in cost effective way: By developing compelling, concise messages, plan innovative ways to repeatedly deliver, identify appropriate links within network of political, legislative, nonprofit organization and media, develop concept based programs and events. Utilize extensive relationship with local and national media to get a clients message to the right media targets. Identify venues, plan tours, identify audiences, and organize meals, speakers and press. Strategies and plan joint PR initiatives as well as joint advertising campaigns and events to cross-promote companies and organization campaigns. Help develop identify and branding for print, broadcast and digital mediums. Consulting and creation of a corporate design, brochures, leaflets, info materials. Develop web sites, e-mail campaigns, and banner advertising. Develop creative print, broadcast and digital advertising, identify advertising targets and purchase appropriate media slots.

6. FUTURE GROWTH OF GREEN MARKETING

There are many lessons to be learned to avoid green marketing myopia, the short version of all this is that effective green marketing requires applying good marketing principles to make green products desirable for consumers. The question that remains, however, is, what is green marketings future? Business scholars have viewed it as a fringe topic, given that environmentalisms acceptance of limits and conservation does not mesh well with marketings traditional axioms of give customer what they want and sell as much as you can.

Evidence indicates that successful green products have avoided green marketing myopia by following three important principles:

Consumer Value Positioning:

Design environmental products to perform as well as (or better than) alternatives. Promote and deliver the consumer desired value of environmental products and target relevant consumer market segments. Broaden mainstream appeal by bundling consumer desired value into environmental products.

Calibration of Consumer Knowledge: Educate consumers with marketing messages that connect environmental attributes with desired consumer value. Frame environmental product attributes as solutions for consumer needs. Create engaging and educational internet sites about environmental products desired consumer value.

Credibility of Product Claims: Employ environmental product and consumer benefit claims that are specific and meaningful. Procure product endorsements or eco-certifications from trustworthy third parties and educate consumers about the meaning behind those

endorsements and eco-certifications. Encourage consumer evangelism via consumers social and internet communication network with compelling, interesting and entertaining

information about environmental products.