Presentation On Green Marketing

GREEN MARKETING

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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 Limited Resources

N E E GR

NG I T E K R MA

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 marketing tool

Do not promote

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 byproducts; 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

PRICE

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.

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 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.

Smart green marketers will be able to reinforce environmental credibility by using sustainable marketing and communications tools and practices.

This can be achieved by instore promotions and visually appealing displays or using recycled materials to emphasize the environmental and other benefits.

For example: To reduce the use of plastic bags and promote their green commitment, some retailers sell shopping bags.

Consumer’s Responsibility I Damage The Environment Because... 23% 26%

8%

21% 12% No Alternatives Don't Understand Issue Not Convenient

10% To Cheap No Time 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!