Green Marketing

OVERVIEW • • • • •

INTRODUCTION. DEFINITION. THE FOUR P’s OF GREEN MARKETING. BENEFITS. LIMITATIONS.

INTRODUCTION • PEOPLE ARE WORRIED. Depletion of ozone layer • ENVIRONMENTALISM IS A CORE SOCIETAL VALUE. Kyoto Protocol and save Ganges project. • CITIZENS ARE RESPONDING. Reuse of coke bottles and news papers. • GREEN PRODUCT SALES SOAR “Tree Free” pencils and paper. • CHILDREN ARE GREEN. Education and Awareness • TRADING PARTNERS ARE GREEN Recycling a top priority for Xerox, IBM, HewlettPackard

DEFINITION • Green marketing involves developing and promoting products and services that satisfy your customers’ wants and needs for quality, performance, affordable pricing and convenience without having a detrimental impact on the environment. • 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 P’s OF GREEN MARKETING • PRODUCT  Identify customers’ environmental needs and develop products to address these needs.  Develop environmentally responsible products to have less impact than competitors.  McDonalds, for example, changed their packaging from polystyrene clamshells to paper.

• PRICE  Most customers will only be prepared to pay a premium if there is a perception of additional product value.  Environmental benefits are usually an added bonus but will often be the deciding factor between products of equal value and quality.  Nilkamal, introduced cheap plastic molded furniture.

THE FOUR P’s OF GREEN MARKETING • PLACE  Very few customers will go out of their way to buy green products merely for the sake of it.  Green products, in most cases, positioned broadly in the market place so they are not just appealing to a small green niche market.  In-store promotions and visually appealing displays or using recycled materials to emphasise the environmental and other benefits  Scotch Brite Never Rust wool Soap Pads by 3M ;made from 100% recycled PET plastic.

• PROMOTION Includes paid advertising, public relations, sales promotions, direct marketing and on-site promotions. Green marketers will be able to reinforce environmental credibility by using sustainable marketing and communications tools and practices. For example, many companies in the financial industry like ICICI Bank are providing electronic statements by email.

BENEFITS •

MORE PROFITS.  

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COMPETITIVE ADVANTAGE  

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Use of solar Energy and Recycled raw material. For ex; Crane’s "Old Money" and "Denim Blues" Recycled Papers. Rayovac, introduced Renewal brand reusable alkaline batteries. Philips Lighting, inventors of compact fluorescent lighting technology.

INCREASED MARKET SHARE Compaq PC, emblazoned with the Energy Star energy-saving designation.  Crown paper; carry-out bags and speckled (recycled) napkins at McDonald's. 

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BETTER PRODUCTS. 

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Energy Efficient AC’s by Voltas and Samsung.

PERSONAL REWARDS, TOO 

Better Environment And Less Pollution.

LIMITATIONS •

OVEREXPOSURE AND LACK OF CREDIBILITY.

Printing “100% Recycle";" essentially non-toxic" and "biodegradable” but not implementing.  For ex.; Safe Brands, Sierra Anti-Freeze/Coolant • CONSUMER BEHAVIOR.  Consumer not willing to pay more and dislike of the green products features.  For ex.; GM's EV-1 electric car couldn't stand a chance in mainstream markets because of cost and recharging. • POOR IMPLEMENTATION.  Poorly prepared marketing program.  Lack of education and awareness about the product.  For ex.; Less preference for Eco-Friendly Batteries of Amaron 

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