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Green Marketing

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GREEN MARKETING

WHAT IS GREEN MARKETING?


 GREEN MARKETING is the marketing of product's that are presumed to be
environmentally safe.
 GREEN MARKETING describes a company's efforts to advertise the environmental
sustainability of its business practices.
 Examples of GREEN MARKETING include advertising the reduced emissions
associated with a product’s manufacturing process, or the use of post-consumer
recycled materials for a products packaging.

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THE AMERICAN
MARKETING ASSOCIATIN
(AMA) DEFINITION

• American Marketing Association (AMA)


defines the ‘green marketing’ as the
marketing of products that are presumed to
be environmentally safe.
• Thus green marketing constitutes a wider
range of activities, including product
modification, changes to the production
process, packaging changes, as well as
modifying advertising.

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 According to American Marketing Association Workshop on Ecological
Marketing (1975): “ Any marketing activity of a firm that is intended to
create positive impact or lessen the negative impact of a product on the
environment and as a result capitalize on consumers concern for
environmental issues.

 Green Marketing, also alternatively known as environmental marketing and


sustainable marketing, refers to an organization's efforts at designing,
promoting, pricing and distributing products that will not harm the
environment Pride and Ferrell (1993).

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The evolution of green marketing consists of three phases:

Initial Phase: This includes targeting the environmental problems and


directing all the marketing activities
of the firm towards ecological marketing (green marketing).

Middle Phase: This includes focusing on clean technology by


innovation to create eco friendly products.

Third Phase: It includes reduction in the environmental damages with


a focus on environmental issues,
which went prominent in late 1990s and early 2000.
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SIGNIFICANCE OF GREEN-
MARKETING:
Accomplishment of firm’s objectives: Organizations
perceives environmental marketing to be an opportunity that
can be used to achieve its objectives.
• Corporate Social Responsibility: It is a belief that
organizations have an ethical responsibility to be fairer to the
society and environment with respect to their activities.

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 Government Norms/Regulations: Government norms and
regulations force a firm to switch to Green Marketing.

 Competitive Advantage: Firms’ can use going green as one of the


competitive advantages to stay buoyant in the market.

 Disposal of harmful industrial effluents: There are cost factors that


are associated with the disposal of harmful industrial effluents, which
force a firm to switch to Green Marketing.

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ESSENTIALS FOR GOING GREEN:
• Awareness of the Consumer: It must be assured that the consumer is
aware of the company’s approach towards Green Marketing, so that it
creates a long term effect of change in the behavior of the consumer.

• Leading with a transparent approach: There are some companies


means that use corporate social responsibility and Green Marketing just
as a tool for promotion and image management in the society, which
affects them in the long run. Thus building a transparent and clear
strategy is a must to going green ahead.

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 Reassurance to the Consumer: The consumers must be assured of
the product quality and performance. Retention institutional
advertising can be used for effectiveness.

 Pricing Strategy: Affordability of price should also be considered


while it may cost more using higher quality ingredients that are
environment friendly. Like the introduction of products made from
plant origin ingredients may have higher cost, which only an aware
customer will buy.

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CHALLENGES TO GREEN
MARKETING:
 Green marketing requires a considerable amount of
expenditure upon research and development making it more
expensive due to which the concept of green marketing is not
very successful yet.

 Consumer awareness is one of the most important factors that


needs to be focused upon by the marketers.

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 The usage of natural ingredients increases the cost of the
green products thereby raising concerns of affordability on
part of the consumer.

 There is a dire need for standardization green marketing


message claiming the product as organic. This also calls for
govt. regulatory bodies to come up with proper certifications
authenticating the products.

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CORPORATE INITIATIVES TOWARDS
GREEN-MARKETING:
 In global scenario, DELL has been one of the ventures to focus on
producing green IT products by their strategy called “go green with
DELL”.

 Starbucks fast food has introduced green packaging more easily


recyclable materials.

 HP plans to deliver energy efficient products and services in the


global market.

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 Nike is marketing its Air Jordan shoes as eco friendly that it
has reduced the use of harmful adhesives in its
manufacturing.

 Similarly in India Asian Brown Boveri, Gujarat Ambuja


Cement, Nerolac Paints, Tata Motors Ltd., Taj Group of
Hotels, Indian Aluminium Co., Philips India, Tata Iron
and Steel Co. are also making efforts to be eco friendly.

 Amazon India recently piloted a model to make use of


bicycles for its deliver boys in Mumbai.
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CONCLUSIONS:
The need of the hour is “Going Green”, which will create a drastic change in the world of
business if all the nations take a joint effort to promote green marketing leading to a global
change. The business perspective demands that marketers have to make the consumers
aware of the benefits of the green products as compared to the non-green products. In
developing countries like India, green marketing assumes more importance and relevance.
It is imperative to mention that government has a role to play in the promotion of green
marketing concept. Enactment of various laws strengthening the concepts of
environmental protection (The Environmental Protection Act, 1986), pollution control
(Prevention and Control of Pollution Act, 1981), waste management (Waste Management
and Handling Rules, 1989) are a pre requisite steps by the government which should be
undertaken from time to time to link up sustainability to economy and society for better
present and future.

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SUGGESTIONS:
It is imperative for countries to take the leads with more thrust on ‘Going Green’. The
need of an hour is sincere efforts on part of both central and state govt.’s, corporate
and the agencies involved. The suggestions to achieve green objectives are:
 Tax benefits must be rendered upon manufacturing green products promoting green
marketing.

 Ensure negative factors are taken into consideration, which include environmental
hazards caused by using non green products.

 Easy loans must be provided by the financial department for manufacturers of


green products.

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 Ensure comparative differences are justified; Comparative differences
of using of using a green product over a non green product should be
clearly mentioned.

 Focus on Social marketing can boost the awareness about


environmental hazards and products causing it.

 Firms going green must be recognized and their efforts be awarded.

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WEBSITES:
 http://en.wikipedia.org/wiki/Green_marketing
 www.Businesswireindia.com
 www.cohnwolfe.com/en/ideas-insight/white-papers/g
reen-brands-survey-2011
 www.emeraldinsight.com/0263-4503.html
 www.greenmarketing.net/stratergic.html
 www.greenpeace.org/international

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THANK YOU!

PRESENTED BY: TEAM 3


RISHI SHAH:D-212201184
MILAN JAIN:D-212201209
BHUVIK JAIN:D-212201210
AAYUSH SAKARIA: D-222201218
KRISHI JAIN : D-212201254
KANISH SAKARIA : D-212201274

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