Realization On Green Marketing

Realization on Green Marketing in Bangladesh

Abstract Though green issues convince all human activities, few academic disciplines have integrated green issues into their literature. Businesses have begun to adapt their behavior in an attempt to address society's "new" concerns. Some businesses have been quick to accept concepts like environmental management systems and waste minimization, and have integrated environmental issues into all organizational activities. One business area where environmental issues have received a great deal of discussion in the popular and professional press is marketing. Terms like "Green Marketing" and "Environmental 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. In Bangladesh, Green issues is new for all company because they did not have any practiced of its before. Here the researcher will find out how customers are reacting after having a concept like green product. Keyword: Green Marketing, Realization, Bangladesh

Introduction Remarkable competition is going on among the consumer, industrial and service products. Since society becomes more anxious with the natural environment, businesses have started to adjust their behavior in an attempt to address society's "new" concerns. Some businesses have been quick to accept concepts like environmental management systems and waste minimization, and have integrated environmenta l issues into all organizational activities. People are conscious about the less environment friendly product due to their own welfare that is why this issue is very modern topics for Bangladesh. This paper tried to unearth the relation between green marketing and its realization towards the customer in Bangladesh. Objectives of the study: 1. To realize what is all about Green Marketing, Green Consumer and Green Product. 2. To find out the indicator of realization of Green Marketing by the customer. 3. To find out the realization problem of Green product.

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Scope and Methodology The proposed study would be empirical one. Both Primary and secondary data have been used in this study. The secondary data would be collected from various books, reference Journal, seminar papers and articles. 100 people have been interviewed for the sake of getting information regarding green issues through structured questionnaire. What is Green Marketing? “The marketing or promotion of a product based on its environmental performance or an improvement thereof (Charter & Polonsky 1999)”. “The holistic management process responsible for identifying, anticipating and satisfying the requirements of customers and society, in a profitable and sustainable way (Peattie, 1995)”. “A holistic and responsible strategic management process that identifies, anticipates, satisfies and fulfils stakeholder needs, for a reasonable reward, that does not adversely affect human or natural environmental well-being” (Charter (1992), p. 394) As per Brundtland Commission (1987), “Development that meets the needs of the present without compromising the ability of future generations to meet their own needs (Rowell, 1996)”. 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. It is sorry to say, a greater part of people believe that green marketing refers solely to the promotion or advertising of products with environmental characteristics. Terms like Phosphate Free, Recyclable, Refillable, Ozone Friendly, and Environmentally Friendly are some of the things consumers most often associate with green marketing. While these terms are green marketing claims, in general green marketing is a much broader concept, one that can be applied to consumer goods, industrial goods and even services. For example, around the world there are resorts that are beginning to promote themselves as "ecotourist" facilities, i.e., facilities that "specialize" in experiencing nature or operating in a fashion that minimizes their environmental impact (May 1991, Ingram and Durst 1989, Troumbis 1991). Thus green marketing incorporates a broad range of activities, including product modification, changes to the production process, packaging changes, as well as modifying advertising. Yet defining green marketing is not a simple task. Indeed the terminology used in this area has varied, it includes: Green Marketing, Environmental Marketing and Ecological Marketing. This early definition has three key components, such as it is a subset of the overall marketing activity; it examines both the positive and negative activities; and narrow ranges of environmental issues are examined. Figure 1: The many meanings of green

Source: (Peattie, K. (1995), Environmental Marketing Management, p. 26)

Electronic copy available at: http://ssrn.com/abstract=1302277

Another definition is “Green 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”(Polonsky 1994). Therefore it ensures that the interests of the organization and all its consumers are protected, as voluntary exchange will not take place unless both the buyer and seller mutually benefit. There are two slogans like "less environmentally harmful" and "Environmentally friendly". Thus green marketing should look at minimizing environmental harm, not necessarily eliminating it. The Green Consumer The green consumers are the driving forces behind the green marketing process. It is they who drive consumer demand, which in turn encourages improvements in the environmental performance of many products and companies. Thus, for a marketer it is important to identify the types of green consumers. Many organizations have found that two out of every three consumer is green in developed country but country like Bangladesh and its organization has found that one out of every six consumer is green, but their environmental commitments vary because of their different standards, expectation from producers, demand and buying power. It is thus not efficient to say that the green consumer is one who engages in green consumption, specifically, consumes in a more sustainable and socially responsible way. A consumer acquires bundle of wants and needs and this is also true for the green consumer. To satisfy those needs businesses have to break down the market into different groups of consumers that differ in their responses to the firm’s marketing mix program. The segments (Kotabe & Helsen (1998), p.184) arrived at should preferably have the following features: 1) Measurable 2) Sizeable 3) Accessible 4) Actionable 5) Competitive intensity 6) Growth potential A great deal of market research has been concerned with identifying the green consumer. A clear picture has not yet been established and it differs a lot between markets. But some generalizations about the green consumer can be made on the basis of the research done so far. The green consumer: • Is inconsistent • Is confused • Is generally a woman • Is adults who are likely to be more concerned about the environment • Is sophisticated in wants and needs (Peattie (1992), p. 118) Green Product Green product stresses the straight and tangible benefits provided by greener design, such as energy efficiency or recycled content, rather than stressing the environmental attributes them. Reducing the environmental impact of a product improves the product's overall performance and quality in ways that are important, not just the most dedicated and loyal green consumer, but to all consumers. For example, CNG (Converted Natural Gas) use in the vehicles, super-concentrated laundry detergents not only save energy and packaging, they save end space, money and effort. Organically grown food not only better preserves soil and reduces the amount of toxins in the water supply; they have superior taste and health benefits compared to their counterparts. Therefore green product means any product, which is not hazardous for environment and customer as well, and it also work as a future remedy of negative impact of a product. 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. Figure 2 - The Green Marketing Process External Green P’s • Paying customers • Providers • Politicians • Pressure groups • Problems

Internal Green P’s • Products • Promotion • Price • Place • Providing information

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 Source: (Peattie (1992), p.104) Customer Realization Indicators on Green Products Green product realization by green customer is based on some indicator while they are in buying point. Here the researcher fined some common indicator, which indicate that the particular customer is green. 1. Responsible and careful: when green customer in purchasing point, they always responsible and careful towards environment, hazardous or uncertain future. These customers group introduced as "deep greens". 2. Powerful consumers: Green Consumers always demands multiple option or alternative

products so that they can buy green product, as they like best. For example, CNG and four-stroke vehicle is the almost alternative product and green consumers always intend to get several option. 3. Widespread recycling: Green consumer always thinks for further recycling. For example Paper bags recycled again and again. 4. Consciousness for Recycling: Interest on the recycling benefits is high because

consumers can link it to real benefits. 5. Interest in greener products: Realization based on availability of greener products. In Bangladesh, eco-tourism was very unknown word for local tourist but few eco-park establishment in coastal belt and hilly area had changed the scenario and people start liking this kind of things due to green. 6. Health and Quality Perceptions: Consumers have considered products made from recycled content to be inferior, even unclean. Green consumers always make sure that they are safe and secure in the context of health and quality as well. 7. Reliability: Green consumer wants to make sure that the product, which is green, is a reliable in all aspects. They always search for statistics of green product so that they can judge their beliefs. Realization problem of Green Product Still green marketing is a growing realization and concept in customer mind for Bangladeshi product and service users. Though green marketing seems to be a popular, well-liked and important term, it has not been very successful in practice by the customer in Bangladesh either attracting customers or

in helping the environment. Some realization problems were found through interviewing with sample respondents and also some problems are adjusted through reviewing secondary materials like foreign journals and other literatures. These are follows: A. Consumer Association in Bangladesh (CAB) is not playing vital role for building consumer consciousness concerning green product and green consumers. B. Consumers are relying on industry and government too much. They think, they do not have to do anything; it is someone else’s problem and someone will solve the problem specially Government. C. Green marketing has been only implemented within the public relation department giving little room for product improvement or enhancement and real environmental benefits. D. Green Marketing activities with modest or no attempt being made in product development in the context of green product. Greening sometimes led to a decrease in costs. Whilst some products became cheaper, they were sold at best to provide the company with extra profit. In recent time all environment friendly ordinance passed by the national assembly but its implication program is going very slowest way, which cannot help the product to be green and people to be green consumer as well. E. It is not clear to the general people that what kinds of benefits are involving in environmental friendly products. Neither customers nor producing organization clearly state environmental benefits. F. Polluting manufacturing e.g. all chemicals, dying, petroleum and other waste outing organizations tried to respond to the misconceptions or fallacy or misleading notions presented by the media and pressure groups by presenting their own version of “facts” through public relation or promotional departments. The government authority and the related authority have taken extremely modest promotional activities G. The similar products were produced, but some “new” environmental benefits were added in their promotion to take advantage of the increasing interest customers showed in the environment. H. There has little practice of Enviropreneur marketing that refers environmentally committed person, segment or company that seeks to bring to market innovative new green products. I. There has no legal authority that can make sure comparative differences of no-environment friendly products and environmental products. J. There is no set of standard environmental characteristics, which can be harmful for the customers or end users. A survey constituted through field survey within 100 sample respondents for finding out how conscious a consumer regarding green marketing and how they actually measure a green product. Results appear that consumers are not excessively committed to improving their environment and may be looking to place too much responsibility on industry and government. 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 governmental intervention. Until this occurs it will be difficult for firms alone to lead the green marketing revolution. Most of the people (32%) believe that green product is for minimizing cost, 23% believes that it is for relative economical rather other competitive products like a minimum cost. And rest of the respondents divided into different opinion like it is a alternative, convenience and environment friendly product.

Fig 3: Opinion regarding green product

12%

16% Alternative Economical Convenience 23%

32%

No Time Minimum Cost Environment

5%

12%

[Source: Field Survey] Recommendations for realization of Green Marketing towards people in Bangladesh 1. CAB (Consumer Association of Bangladesh) should work fastest way regarding various green issues and product. They should organize seminar, program in media, newspaper and give assurance to the customer that it is a green product. CAB should bargain with the Government, industrial, middlemen regarding green issues. 2. Government and concerned industry people have to take responsibility to make understand regarding importance of green products towards unconscious people like birth control issues. 3. Create some powerful or conscious citizen so that general people will follow them as a initiating person. 4. Set live examples towards customer society like paper recycling and CNG so that people will start thinking it will be harmless, hazard free, environmental friendly product for them. Realization based on availability or accessibility of greener products. In Bangladesh, eco-tourism was very unknown word for local tourist but few eco-park establishment in coastal belt and hilly area had changed the scenario and people start liking this kind of things due to green. 5. Agencies should work on safety and quality matter of a product. In this process people will start keep faith on green activities. Green customers always make sure that they are safe and secure in the context of health and quality. Concluding Remarks Green marketing is a different marketing concept than the traditional marketing model and it is growing in importance in Bangladesh. Businesses and agencies must be responsive in implementing a green marketing policy the entire organizational structure must be involved in the process. In every sector, it is suffering from environment hazardous like chemical industry, petroleum-refining industry, garments, and packaging and waste management. Now it is the right time to protect all the environmental hazardous and should convert all the environmental hazardous works into as environment friendly works which can keep environment fresh for the next generation and similarly Bangladesh can able to establish green marketing issues in the consumer and organization mind so that green marketing can enhance marketability, improve product performance, protect environment hazard, protect health hazard, quality deterioration and represent a powerful new source of innovation. In this way agencies can able to increase good realization in customer mind.

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