Green Marketing: The Contemporary Business Approach towards Environmental

Amit Kumar College of Information Science and Technology, Nanjing Forestry University, Nanjing, Jiangsu, China MBU, Solan, Himachal Pradesh, India [email protected] Tanvir Singh IET Bhaddal Technical Campus, Ropar, Punjab, India [email protected] Dr. Yunfei Liu College of Information Science and Technology, Nanjing Forestry University, Nanjing, Jiangsu, China Dr. Sawtantar Singh Khurmi Department of Computer Science & Engg., Bhai Maha Singh College of Engineering, Muktsar, Punjab, India

Abstract- Successful marketing has always Keywords- Green Marketing, been about recognizing trends and Environmental Sustainability, Energy positioning your products, services and Efficiency. brand in a manner that supports buying variables. Today, "Green" marketing has I. INTRODUCTION gone from a trend to a way of doing Green marketing is a way to use the business. Going “Green” in the business is environmental benefits of a product or not only beneficial for the environment; service to promote sales which simply but it directly affects Company’s account means, marketing of products that are books. Big businesses are embracing presumed to be environmentally safe. Green sustainability, not simply for altruism but marketing incorporates a broad range of they’ve realized that going green can reap activities, including product modification, significant cost savings. Businesses have changes to the production process, packaging begun to modify their behavior in an changes, as well as modifying advertising. attempt to address society's Being a green business has become more “Environmental” concerns. Companies than the niche market. Big businesses like are proactive in their approach, by Walmart, Nike, and Hewlett-Packard are revealing to its consumers how much embracing sustainability, not simply for more eco-friendly and less toxic their altruism—they’ve realized that going green products are, as compared to their can reap significant cost savings, which competitors. This paper will attempt to impacts their business bottom line. Going introduce the concept of green marketing green in your business is not only good for and briefly discuss why going green is the environment; it's good for your bank important. Also, the role of companies account. Efficient operation means less doing green marketing around the world energy and raw materials are required, both has been discussed. of which cost money. These days the

The Second International Conference on Interdisciplinary Research and Development, 31 May - 1 June 2012, Thailand Amit Kumar, Tanvir Singh, Dr. Yunfei Liu, Dr. Sawtantar Singh Khurmi consumers are more environmental experiencing nature or operating in a fashion conscious and socially responsible. that minimizes their environmental impact. Therefore, more companies are responding to consumer’s aspirations for Table 1: Different Approaches of Going environmentally less damaging or neutral Green [2] products [2,9]. In this paper, we have  Request an energy from your local discussed the concept of green marketing power utility and the importance of going green.  Turn off your lights

II. WHY GOING GREEN?  Use fewer lights Green marketing incorporates a broad range  Switch to energy efficient lighting of activities, including product modification,  Program your thermostat changes to the production process, packaging  Turn off office computers when not in use changes, as well as modifying advertising. Yet defining green marketing is not a simple  Install power strips to cut phantom power task [8]. Although environmental issues usage influence all human activities, few academic  Replace office equipment with more disciplines have integrated green issues into efficient models their literature [1,4,7]. This is especially true  Flush less water down the drain of marketing. As society becomes more  Install a water dispenser concerned with the natural environment, businesses have begun to modify their  Use passive solar behavior in an attempt to address society's  Ditch the disposables "new" concerns [5]. Some businesses have  Bring your own lunch been quick to accept concepts like  Use paperless collaboration when possible environmental management systems and waste minimization, and have integrated  Buy recycled paper products environmental issues into all organizational  Purchase refilled toner/printer cartridges activities. Some evidence of this is the  Print on the back development of journals such as "Business  Stop stapling Strategy and the Environment" and "Greener

Management International," which are  Recycle old electronics and equipment specifically designed to disseminate research  Choose green power relating to business' environmental behavior  Set up a recycle center [3,6]. Unfortunately, a majority of people  Assign a sustainability manager believe that green marketing refers solely to  Offer a digital mailing list option the promotion or advertising of products with environmental characteristics. Terms  Send electronic proofs or use bicycle like Phosphate Free, Recyclable, Refillable, courier Ozone Friendly, and Environmentally  Use digital coupons Friendly are some of the things consumers  Offer digital downloads of marketing most often associate with green marketing. assets While these terms are green marketing  Ditch print advertising claims, in general green marketing is a much broader concept, one that can be applied to  Rethink your packaging consumer goods, industrial goods and even  Choose 100% recycled content paper services. For example, around the world  Get green certification for product there are resorts that are beginning to promote themselves as "eco-tourist" facilities, i.e., facilities that "specialize" in

Special Issue of the International Journal of the Computer, the Internet and Management (IJCIM) Fuel Cell: An Innovative Energy Backup for Mobile Wireless Communication Networks

III. THE FOUR PS’ OF GREEN few customers will go out of their way to MARKETING buy green products merely for the sake of it. Like conventional marketers, green Marketers looking to successfully introduce marketers must address the ‘four Ps’ in new green products should, position them innovative ways [10]. broadly in the market place so they are not just appealing to a small green niche market. A. PRODUCT The location must also be consistent with the Entrepreneurs wanting to exploit emerging image you want to project and must green markets will identify customer’s differentiate you from your competitors, environmental needs and develop products to which can be achieved by in-store address these needs; or develop promotions and visually appealing displays environmentally responsible products to or using recycled materials to emphasise the have less impact than competitors. The environmental and other benefits. increasingly wide varieties of products on D. PROMOTION the market that support and are good for the triple Promoting products and services to target bottom line include: markets includes paid advertising, public relations, sales promotions, direct marketing 1. Products made from recycled goods and on-site promotions. Smart green 2. Products that can be recycled or reused. marketers will be able to reinforce 3. Efficient products, which save money and environmental credibility by using reduce environmental impact sustainable marketing and communications 4. Products with environmentally responsible tools and practices. The key to successful packaging. green marketing is credibility. Never 5. Products with green labels overstate environmental claims or establish 6. Organic products unrealistic expectations, and communicate 7. A service that rents or loans products simply and through sources that people trust. 8. Certified products Green credentials and achievements of a Whatever the product or service, it is vital to business must be promoted including stories ensure that products meet or exceed the of the company’s and employees’ green quality expectations of customers and is initiatives. A business should enter thoroughly tested. environmental awards programs to profile B. PRICE environmental credentials to customers and Pricing is a critical element of the marketing stakeholders. process. Most customers will only be prepared to pay a premium price if they are IV. WHY ARE FIRMS USING getting extra product value in terms of GREEN MARKETING? improved performance, function, design, visual appeal or taste. Environmental Green marketing offers business bottom line benefits are usually an added bonus but will incentives and top line growth possibilities. often be the deciding factor between There are several suggested reasons for firms products of equal value and quality. increased use of Green Marketing. Five Environmentally responsible products, possible reasons cited are [3,10]: however, are often less expensive when  Organizations perceive environmental product life cycle costs are taken into marketing to be an opportunity that can consideration. be used to achieve its objectives C. PLACE  Organizations believe they have a moral The choice of where and when to make a obligation to be more socially product available will have significant responsible impact on the customers you attract. Very

The Second International Conference on Interdisciplinary Research and Development, 31 May - 1 June 2012, Thailand

Amit Kumar, Tanvir Singh, Dr. Yunfei Liu, Dr. Sawtantar Singh Khurmi

 Governmental bodies are forcing firms to includes the protection of natural become more responsible environment. Sustainable development requires “sustainable marketing” that is  Competitors' environmental activities marketing efforts that are not only pressure firms to change their competitively sustainable but are also environmental marketing activities ecologically sustainable. In response to the  Cost factors associated with waste challenge of advancing simultaneously in disposal, or reductions in material usage economic development and environmental forces firms to modify their behavior. protection as the sustainable development demand companies and academicians have V. SUSTAINABLE DEVELOPMENT developed and/or adopted green marketing AND GREEN MARKETING strategies and other corporate strategies. According to World Commission on Among the key strategies are; green product Environment and Development (1987), strategies, green logistic strategies, green “Sustainable development is development pricing strategies, green promotion that meets the needs of the present without strategies, changing consumers from compromising the ability of future consumption culture to ecologically generations to meet their own needs. concerned consumers, adoption of eco- Satisfying the needs of customers in a marketing orientation as a business profitable way is the core of marketing philosophy, Government intervention, ideology and in turn is a core of the market lifecycle inventory analysis and teaming up economy. Environmental or green marketing for success. Green marketing is focussed on has been seen as a tool towards sustainable undertaking all marketing activities while development and satisfaction of different protecting the environment. On the other stakeholders. Green marketing is the holistic hand sustainable development demands that management process responsible for the future generations inherit the natural identifying, anticipating and satisfying the environment in the same state or better as requirements of customers and society, in a inherited by the previous generations. This profitable and sustainable way [11]. Majority calls for the protection and improvement of of people believe that green marketing refers the environment. Therefore, sustainable solely to the promotion or advertising of development is a dependent variable of green products with environmental characteristics. marketing [12-15]. Terms like Phosphate Free, Recyclable, Refillable, and Ozone friendly and VI. CONCLUSION environmental friendly are some of the As society becomes more concerned with the things consumers most often associate with natural environment, businesses have risen to green marketing. While these terms are green the occasion and have started responding to marketing claims, in general green marketing environmental challenges by practicing is a broader concept, one that can be applied green marketing strategies by accepting to consumer goods and industrial goods and concepts like environmental management services. According to [12], green marketing systems and waste minimization, and have is defined as “consisting of all activities integrated environmental issues into all designed to generate and facilitate any organizational activities. Green marketing exchanges intended to satisfy human needs, incorporates a broad range of activities, such that the satisfaction of these needs and including product modification, changes to wants occurs, with minimal detrimental the production process, packaging changes, impact on the natural environment”. This as well as modifying advertising. definition is much broader and incorporates Environmental or green marketing has been much of the traditional components of the seen as a tool towards sustainable conventional marketing definition and also development and satisfaction of different

Special Issue of the International Journal of the Computer, the Internet and Management (IJCIM) Fuel Cell: An Innovative Energy Backup for Mobile Wireless Communication Networks stakeholders. In this paper, we have [10] , “Green marketing: The discussed the concept of green marketing competitive advantage of sustainability”, and the importance of going green. Also, the Queensland Government, Environment importance of Green Marketing for protection agency, [Online] Available: www.epa.qld.gov.au/sustainable_industries sustainable development has been discussed. [11] Mary Wanjiru Kinoti, “Green marketing REFERENCES Intervention Strategies and Sustainable Development: A Conceptual Paper”, [1] SMART 2020, “Enabling the low carbon economy International Journal of Business and Social in the information age”, The Climate Group, Science Vol. 2 No. 23, December 2011 Global e-Sustainability initiative, [Online] Available: [12] Polonsky M. J., “An introduction to Green http://www.gesi.org/LinkClick.aspx?fileticket=tbp marketing”, Electronic Green Journal, vol.1, 5WRTHUoY%3D Issue 2, Nov, 1994.

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The Second International Conference on Interdisciplinary Research and Development, 31 May - 1 June 2012, Thailand