A study on the potential role of Green

marketing as a source of opportunity,

innovation, and competitive advantage
Introduction

 Business is the only mechanism on the planet

today powerful enough to produce the changes
necessary to reverse global environmental and
social degradations. But for this to happen
there has to be a sustainable consumer
interest and desire towards the same to drive
these businesses in that direction. The benefits
of green marketing are mutual and hold the
promise for a clean and green future.
Green marketing defined
 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.
 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.
The four Ps of green marketing
Product Price Place Promotion
•Environmentally •Customers will •The choice of •Promoting
responsible only be where and products and
products. prepared to pay when to make a services to
•Products that a premium if product markets
can be recycled there is a available will includes paid
or reused perception of have significant advertising,
•Organic additional impact on the public relations,
products product value. customers you sales
Value may be attract. promotions,
•Products with direct marketing
environmentally improved
performance, and on-site
responsible promotions.
packaging, e.g function, design,
McDonalds visual appeal or
changed its taste
packaging from
Green Marketing opportunities

 More Profits: Green marketing efforts leads to use of energy efficient

technologies which causes reduction in operating costs and liability while
boosting profits.
 Competitive Advantage: Many marketers know that being the first
to the shelf with an environmental innovation brings competitive
advantage. E.g Philips invented CFL technology
 Increased Market Share: Brand Loyalty is reaching all-time low.
Pragmatic consumers look for packages that c`n be recycled. Market
leaders like P& G and Mac Donald have taken it as an opportunity to
increase their market share.
 Better products: These products tend to be non-toxic are safer
for children , energy efficient devices save bills.
 Personal rewards
Research Methodology

 To study the potential role of green

marketing as a source of opportunity,
innovation, and competitive advantage
 To study consumer awareness and
attitude to green marketing and its
implications for businesses
Major Findings of the
study:
 Over 50% respondents claim to have bought a product because
the advertising or the label said the product was environmentally
safe.
 66% of the people would like to be informed about a products
environment friendliness while making purchase decisions.
 A considerable (67%) of the respondents are willing to pay extra if
the product significantly contributes to environmental
sustainability.
 Having a greener product definitely makes an impact on the
purchase decision of the customer. A staggering 78% respondent
would prefer a green product over a conventional one, other things
remaining the same.
 Over 50% of the respondents agree that companies practicing
green marketing are more responsible, honest and credible.
The implications of the findings arising
out of the research are twofold and can
be encapsulated as:

 A positive and favourable response from

the people to environmental concerns
and actions, leading to strategic
implications for business
 A general mistrust and wary suspicion
regarding business intentions towards
the samd.
Conclusion:

 Successful green marketing entails much more

than simply tweaking the size of a package,
using recycled materials in place of virgin ones,
or substituting natural ingredients for synthetic.
While positive and necessary, such changes
are just a small part of a much, much bigger
picture.
Recommendations and
Suggestions
 The Green Consumer
Marketing to the green consumer has proved difficult, even
downright dangerous, for companies large and small:
The Green gap
The existence of a green gap between the communications and
language commonly used by companies and stakeholders in the
energy and environment space and customers' understanding,
acceptance and perceptions of value around terms such as
energy efficiency, energy conservation, demand response, smart
energy and clean energy.
 Substance verses spin
"Green", as a selling point, used to be the endeavour of an earnest
few. Now it has become a necessary and lucrative element in
promoting a brand; but incidents of greenwashing, questions the
credibly and authentically of enthusiastic companies