Journal of Business Excellence ISSN: 0976–7711 & E-ISSN: 0976–772X, Vol. 2, Issue 1, 2011, PP-18-23 Available online at http://www.bioinfo.in/contents.php?id=54

GREEN MARKETING – EMERGING DIMENSIONS

SANDEEP TIWARI1,2*, DURGESH MANI TRIPATHI2, UPASANA SRIVASTAVA3, YADAV P.K.2* 1Manager AMBUJA Cement, Barielly, India 2Department of Management Science, MJP Rohilkhand University, Barielly, India 3Department of Management Science, N.M.College, Lucknow, India *Corresponding Author: Email-

Received: November 26, 2011; Accepted: December 12, 2011

Abstract- The importance of Green Marketing can well be emphasised by stating the fact that majority of consumers in all the countries want to buy from environmentally responsible companies. Consumers say environmental consciousness is an important corporate priority – ranking behind good value, trustworthy, and cares about customers. Consumers expect green companies to engage in a broad set of actions, particularly reducing toxics, and managing water. Many consumers prefer to spend more on green products, especially in developing economies. The worldwide emphasis on Green Marketing is primarily due to environmental concerns, climate change, water management issues, deforestation, etc. However the consumer is inclined towards green products but is still confused as regards labelling, certification and various green advertising. Moreover it is a challenge to buying green as selection spectrum is limited. Companies can connect with consumers by improving product selection and communications. The evolution of Green marketing over the period has lead to determine the essential and important marketing mix elements. What & why factors of Green Marketing have been explained in detail in the article. The detailed study of various components of Green Marketing helps in laying down the various opportunities and challenges that a Green Marketer faces. Recommendations to make Green marketing a success story have been elaborated by enumerating the simple rules to be followed. The conclusion focuses on various aspects of green behaviour, and other measures for Green marketing to gain foothold for the betterment of the society at large.

Green Marketing–Emerging Dimensions of pollutants, etc. Both marketers and consumers are Many people believe that green marketing refers solely becoming increasingly sensitive to the need for switch in to the promotion or advertising of products with to green products and services. environmental characteristics. Generally terms like The holistic marketing concept advocates the philosophy Phosphate Free, Recyclable, Refillable, Ozone Friendly, that businesses must develop products and marketing and are some of the things strategies that not only address the needs of the consumers most often associate with green marketing. In consumers but also safeguard the long-term interests of general green marketing is a much broader concept, one those consumers as well as those of society at large [7]. that can be applied to consumer goods, industrial goods Business organizations are often accused of making and even services. products and packaging as well as using manufacturing According to the American Marketing Association, green processes that damage the environment. The green marketing is the marketing of products that are presumed movement holds that it is a part of the responsibility of to be environmentally safe. Thus green marketing business organizations to ensure that they conduct their incorporates a broad range of activities, including product activities such that they do minimum harm to the modification, changes to the production process, environment. packaging changes, as well as modifying advertising. While the shift to "green" may appear to be expensive in Other similar terms used are the short term, it will definitely prove to be indispensable and advantageous, cost-wise too, in the long run. Green Environmental Marketing and Ecological Marketing. marketing was given prominence in the late 1980s and Green marketing, also termed ecological marketing (Fisk 1990s after the proceedings of the first workshop on 1974), and environmental marketing (Coddington 1993), Ecological marketing held in Austin, Texas (US), in 1975. is an integral constituent of the holistic marketing Many organizations want to turn green, as an increasing concept. Green Marketing refers to holistic marketing number of consumers' ant to associate themselves with concept wherein the production, marketing consumption environmental-friendly products. Green marketing is and disposal of products and services happen in a defined as "Green or Environmental Marketing consists manner that is less detrimental to the environment with of all activities designed to generate and facilitate any growing awareness about the implications of global exchanges intended to satisfy human needs or wants, warming, non-biodegradable solid waste, harmful impact such that the satisfaction of these needs and wants

18 Bioinfo Publications Green marketing – emerging dimensions occurs, with minimal detrimental impact on the natural additional value if there is a perception of extra product environment" (Polanski 1994). This definition value. This value may be improved performance, incorporates much of the traditional components of the function, design, visual appeal, or taste. Green marketing marketing definition, that is "All activities designed to should take all these facts into consideration while generate and facilitate any exchanges intended to satisfy charging a premium price. human needs or wants" Therefore it ensures that the interests of the organization and all its consumers are Promotion protected, as voluntary exchange will not take place There are three types of green advertising: - unless both the buyer and seller mutually benefit. The  Campaigns that address a relationship above definition also includes the protection of the between a product/service and the biophysical natural environment, by attempting to minimize the environment. detrimental impact this exchange has on the  Campaigns that promote a green lifestyle by environment. This second point is important, for human highlighting a product or service consumption by its very nature is destructive to the  Campaigns that present a corporate image of natural environment. So green marketing should look at environmental responsibility minimizing environmental harm, not necessarily Place eliminating it. The choice of where and when to make a product The obvious assumption of green marketing is that available will have significant impact on the customers. potential consumers will view a product or service's Very few customers will go out of their way to buy green "greenness" as a benefit and base their buying decision products. accordingly. The not-so-obvious assumption of green When looking through the literature there are several marketing is that consumers will be willing to pay more suggested reasons for firms increased use of Green for green products than they would for a less-green Marketing. Five possible reasons are as follows: comparable alternative product - an assumption that, in  Organizations perceive environmental my opinion, has not been proven conclusively. While marketing to be an opportunity that can be green marketing is growing greatly as increasing used to achieve its objectives. numbers of consumers are willing to back their  Organizations believe they have a moral environmental consciousnesses with their dollars, it can obligation to be more socially responsible. be dangerous. The public tends to be skeptical of green Governmental bodies are forcing firms to claims to begin with and companies can seriously become more responsible. damage their brands and their sales if a green claim is  Competitors' environmental activities pressure discovered to be false or contradicted by a company's firms to change their environmental marketing other products or practices. Presenting a product or activities. service as green when it's not is called green washing.  Cost factors associated with waste disposal, or According to Peattie (2001), the evolution of green reductions in material usage forces firms to marketing has three phases. First phase was termed as modify their behaviour. "Ecological" green marketing, and during this period all  As resources are limited and human wants are marketing activities were concerned to help environment unlimited, it is important for the marketers to problems and provide remedies for environmental utilize the resources efficiently without waste problems. Second phase was "Environmental" green as well as to achieve the organization's marketing and the focus shifted on clean technology that objective. So green marketing is inevitable. involved designing of innovative new products, which  There is growing interest among the take care of pollution and waste issues. Third phase was consumers all over the world regarding "Sustainable" green marketing. It came into prominence protection of environment. Worldwide evidence in the late 1990s and early 2000. indicates people are concerned about the

environment and are changing their behavior. Marketing Mix of Green Marketing As a result of this, green marketing has Every company has its own favorite marketing mix. emerged which speaks for growing market for Some have 4 P's and some have 7 P's of marketing mix. sustainable and socially responsible products The 4 P's of green marketing are that of a conventional and services. marketing but the challenge before marketers is to use 4 Besides above, organizations are adopting Green P's in an innovative manner. Marketing because of following reasons: Product

The ecological objectives in planning products are to reduce and pollution and to Many firms are beginning to realize that they are increase conservation of scarce resources (Keller man, members of the wider community and therefore must 1978). behave in an environmentally responsible fashion. This Price translates into firms that believe they must achieve Price is a critical and important factor of green marketing environmental objectives as well as profit related mix. Most consumers will only be prepared to pay objectives. This results in environmental issues being

19 Bioinfo Publications Sandeep Tiwari, Durgesh Mani Tripathi, Upasana Srivastava, Yadav PK integrated into the firm's corporate culture. Firms in this Cost or Profit Issues situation can take two perspectives; Reduction of harmful waste may lead to substantial cost  They can use the fact that they are savings. Sometimes, many firms develop symbiotic environmentally responsible as a marketing relationship whereby the waste generated by one tool; or company is used by another as a cost-effective raw  They can become responsible without material. For example, the fly ash generated by thermal promoting this fact. There are examples of power plants, which would otherwise contributed to a firms adopting both strategies. gigantic quantum of solid waste, is used to manufacture While this behaviour is a competitive advantage, the firm fly ash bricks for construction purposes. was established specifically to offer consumers When attempting to minimize waste, firms are often environmentally responsible alternatives to conventional forced to re-examine their production processes. In these cosmetic products. This philosophy is directly tied to the cases they often develop more effective production overall corporate culture, rather than simply being a processes that not only reduce waste, but reduce the competitive tool. need for some raw materials. This serves as a double An example of a firm that does not promote its cost savings, since both waste and raw material are environmental initiatives is Coca-Cola. They have reduced. invested large sums of money in various recycling activities, as well as having modified their packaging to Implementation of Green Marketing in India minimize its environmental impact. While being In India, around 25% of the consumers prefer concerned about the environment, Coke has not used environmental-friendly products, and around 28% may this concern as a marketing tool. Thus many consumers be considered healthy conscious. There fore, green may not realize that Coke is a very environmentally marketers have diverse and fairly sizeable segments to committed organization. cater to. The Surf Excel detergent which saves water (advertised Governmental Pressure with the message” do bucket paani roz bachana") and As with all marketing related activities, governments want the energy-saving LG consumers durables are examples to "protect" consumers and society; this protection has of green marketing. We also have green buildings which significant green marketing implications. Governmental are efficient in their use of energy, water and regulations relating to environmental marketing are construction materials, and which reduce the impact on designed to protect consumers in several ways, human health and the environment through better  Reduce production of harmful goods or by- design, construction, operation, maintenance and waste products; disposal. In India, the green building movement,  Modify consumer and industry's use and/or spearheaded by the Confederation of Indian industry consumption of harmful goods; or (CII) - Godrej Green business Centre, has gained  Ensure that all types of consumers have the tremendous impetus over the last few years. From ability to evaluate the environmental 20,000 sq ft in 2003, India's green building footprint is composition of goods. now over 25 million sq ft. Companies that develop new and improved products and Various regulations rare framed by the government to services with environment inputs in mind give protect consumers and the society at large. The Indian themselves access to new markets, increase their profit government too has developed a framework of sustainability, and enjoy a competitive advantage over legislations to reduce the production of harmful goods the companies which are not concerned for the and by products. These reduce the industry's production environment. and consumers' consumption of harmful goods, including Many companies want to have an early-mover those detrimental to the environment; for example, the advantage as they have to eventually move towards ban of plastic bags in Mumbai, prohibition of smoking in becoming green. Some of the advantages of green public areas, etc. marketing which firms want to exploit are:  It ensures sustained long-term growth along Competitive Pressure with profitability. Many companies take up green marketing to maintain  It saves money in the long run, thought initially their competitive edge. In some instances this the cost is more. competitive pressure has caused an entire industry to  It helps companies market their products and modify and thus reduce its detrimental environmental services keeping the environment aspects in behaviour. For example, it could be argued that Xerox's mind. "Revive 100% Recycled paper" was introduced a few  It helps in accessing the new markets and years ago in an attempt to address the introduction of enjoying competitive advantage. recycled photocopier paper by other manufacturers. In  Most of the employees also feel proud and another example when one tuna manufacture stopped responsible to be working for an using driftnets the others followed suit. environmentally responsible company.

20 Journal of Business Excellence ISSN: 0976–7711 & E-ISSN: 0976–772X, Vol. 2, Issue 1, 2011 Green marketing – emerging dimensions

 A strong commitment to environmental preferences, green marketing myopia can also occur sustainability in product design and when green products fail to provide credible, substantive manufacturing can yield significant environmental benefits. opportunities to grow your business, to There are a number of potential problems that must be innovate, and to build brand equity. All you overcome. One of the main problems is that firms using have to do is get the word out...right? green marketing must ensure that their activities are not There are however, several problems associated with misleading to consumers or industry, and do not breach organizations attempts to undertake green marketing any of the regulations or laws dealing with environmental practices. One major problem is that very often products marketing. Green marketing claims must clearly state that are more environmentally safe cost more. Though environmental benefits. Reacting to competitive consumers say that they are willing to pay 7 to 20 % pressures can cause all "followers" to make the same more for green products (Darymple and Parsons 2002), mistake as the "leader." Thus blindly following the they are not be willing to do this for expensive product- competition can have costly ramifications. items or for products where the price differential between Green marketing faces a lot of challenges because of green and non- is more. Consumers may lack of standards and public consensus to what not like the performance or quality of green products. constitutes "Green". In essence, there is no definition of Moreover, if firms make the packaging of their brands "how good is good enough" when it comes to a product smaller, they may be at a disadvantage because of the or company making green marketing claims. This lack of reduced visibility of their brands on retail shelves. In consensus—by consumers, marketers, activists, addition, smaller packaging may be perceived as regulators, and influential people—has slowed the reduced quantity and will present a smaller surface for growth of green products because companies are often promotional messages. Some other factors are the threat reluctant to promote their green attributes, and of recession tightening not only our budgets, but also our consumers are often skeptical about claims. Another customers' budgets , increased pressure around ROI— challenge green marketers -- old and new -- are likely to again within own brand and among customers and a face as green products and messages become more widening set of geographies to reach and manage. common is confusion in the marketplace. "Consumers do India’s green brands have specific challenges like given not really understand a lot about these issues, and the current low levels of consumer awareness about there's a lot of confusion out there," says Jacquelyn global warming; India’s brands need to help raise Ottman. Marketers sometimes take advantage of this consumer consciousness. Indian manufacturers have yet confusion, and purposely make false or exaggerated to find a market for green products. But by embracing the "green" claims. green imperative, and investing in green initiatives and consumer education, Indian brands can break this Recommendations for Green Marketing vicious cycle. To avoid marketing myopia The analysis of past research and marketing strategies Green washing finds that successful green products have avoided green A survey into green marketing in Australia has found marketing myopia by almost all products carrying environmentally friendly Following three important principles: “The Three Cs” of claims are guilty of green washing. Terra Choice, an consumer value positioning, calibration of consumer environmental marketing firm, has released its Seven knowledge, and credibility of product claims. Sins of Green washing report, which scrutinises the environmental claims companies put on products to see Consumer Value Positioning if they are misleading. It shows that more companies are The marketing of successfully established green using environmental claims but that 98 per cent have products showcases non green consumer value, and committed at least one of the seven sins. Most were there are at least five desirable benefits commonly guilty of the "sin of no proof", or making claims associated with green products: efficiency and cost unsupported by third-party verification. effectiveness; health and safety; performance; symbolism and status; and convenience. Green marketing myopia Green marketing must satisfy two objectives: improved Calibration of Consumer Knowledge environmental quality and customer satisfaction. Many of the successful green products employ Misjudging either or overemphasizing the former at the compelling, educational marketing messages and expense of the latter can be termed “Green Marketing slogans that connect green product attributes with Myopia”. desired consumer value. That is, the marketing programs Research indicates that many green products have failed successfully calibrated consumer knowledge to because of green marketing myopia marketers’ myopic recognize the green product’s consumer benefits. The focus on their products’ “greenness” over the broader main steps are: expectations of consumers or other market players (such  Educate consumers with marketing messages as regulators or activists). Aside from offering that connect environmental product attributes environmental benefits that do not meet consumer with desired consumer value (for example,

21 Bioinfo Publications Sandeep Tiwari, Durgesh Mani Tripathi, Upasana Srivastava, Yadav PK

“pesticide-free produce is healthier”; “energy- supposed to do. They won't forego product efficiency saves money”; or “solar power is quality in the name of the environment. convenient”). 5. Consider your pricing. If you're charging  Frame environmental product attributes as more for your product - and many “solutions” for consumer needs (for example, environmentally preferable products cost more “rechargeable batteries offer longer due to economies of scale and use of higher- performance”). quality ingredients - make sure that consumers  Create engaging and educational Internet sites can afford the premium and feel it's worth it. about environmental Many consumers, of course, cannot afford products’ desired consumer value (for premiums for any type of product these days, example, Tide Cold water’s interactive Web much less greener ones, so keep this in mind site allows visitors to calculate their likely as you develop your target audience and annual money savings based on their laundry product specifications. habits, utility source (gas or electricity), and zip 6. Being genuine and honest means that a) code location). that you are actually doing what you claim to be doing in your green marketing campaign Credibility of Product Claims and b) that the rest of your business policies Credibility is the foundation of effective green marketing. are consistent with whatever you are doing Green products must meet or exceed consumer that's environmentally friendly. expectations by delivering their promised consumer 7. Educating your customers isn't just a matter value and providing substantive environmental benefits. of letting people know you're doing whatever Often, consumers don’t have the expertise or ability to you're doing to protect the environment, but verify green products’ environmental and consumer also a matter of letting them know why it values, creating misperceptions and scepticism. The matters. Otherwise, for a significant portion of actions required are: the target market, it's a case of "So what?" and  Employ environmental product and consumer the green marketing campaign goes nowhere. benefit claims that are specific, meaningful, 8. Build better products. Consumers will not unpretentious, and qualified (that is, compared think better of green products until companies with comparable alternatives or likely usage make them equal to, or better than, their scenarios). conventional alternatives. It’s no surprise: most  Procure product endorsements or eco- people value performance, reliability, and certifications from trustworthy third parties, and durability much more than ecological educate consumers about the meaning behind soundness. those endorsements and eco-certifications. 9. Offer more. Companies must ensure that  Encourage consumer evangelism via consumers understand the financial and consumers’ social and Internet communication environmental returns on their investment in networks with compelling, interesting, and/or green products; for they are more willing to try entertaining information about environmental new ones-especially those that cost more- products. when they find it easy to track the savings. 10. Bring products to the people. Having Simple Rules of Green Marketing decided to buy green products, many 1. Know your customer. If you want to sell a consumers encounter a last hurdle-finding greener product to consumers, you first need them-either because manufacturers don’t keep to make sure that the consumer is aware of up with demand or advertise where they can and concerned about the issues that your be bought, or because wholesalers and product attempts to address. retailers don’t stock them or display them 2. Empower consumers. Make sure that prominently. Bio fuel enthusiasts, for example, consumers feel, by themselves or in concert must often drive out of their way to fill up. with all the other users of your product, that So while the traditional marketing answer to the question, they can make a difference. This is called Should we market to the green consumer? Has been "empowerment" and it's the main reason why yes, the better answer is this: Instead of focusing on a consumers buy greener products. This green niche, focus on green behaviors that everyone can powerful principle underlies so many aspire to. The bottom line: Marketing needs to define campaigns laden with tips. what sustainability means for their company and then 3. Be-transparent. Consumers must believe in decide how to express those values in their offerings. the legitimacy of your product and the specific Companies should stop trying to appeal to green claims you are making. consumers by building green myths into the products 4. Reassure the buyer. Consumers need to they have and start creating something real products that believe that your product performs the job it's tell their environmental story for them.

22 Journal of Business Excellence ISSN: 0976–7711 & E-ISSN: 0976–772X, Vol. 2, Issue 1, 2011 Green marketing – emerging dimensions

Green marketing should not neglect the economic aspect [6] Ottman J.A. (1993) Green Marketing: of marketing. Marketers need to understand the Challenges and opportunities, NTC Business implications of green marketing. If you think customers Books, Chicago, IL. are not concerned about environmental issues or will not [7] Kotler P. and Keller K. L. (2005) Marketing pay a premium for products that are more eco- Management, 12th ed., Pearson Education? responsible, think again. You must find an opportunity to McCarthy J.A and Shrum L.G., (1994). enhance you product's performance and strengthen your [8] Prakash Aseem (2002) Green Marketing, customer's loyalty and command a higher price. Green Public Policy and Managerial Strategies. marketing is still in its infancy and a lot of research is to [9] Dainora Grundey et al (2008) The Baltic be done on green marketing to fully explore its potential. Journal on sustainability, 14(2). [10] Lulu Raghavan et al, (2008) Going Green in In a nutshell India, Going Green.  Green product development is more than just [11] Michael Gale, (2008) The Green Factor, creating products that are environmentally Strategic Oxygen. friendly, it is about systemic change in society [12] Ken Peattie, Martin Charter, Green Marketing, that includes consumers, producers and the Ch 28. general commercial structure within which they [13] Pirakatheeswari P. (2009), Green Marketing – negotiate Opportunities & Challenges.  By widening & deepening the meaning of [14] Sanjit Kumar Dash (2010) Green Marketing – green, relevant actors will have an economic Opportunities & Challenges. incentive to pursue green product [15] Jacquelyn A. Ottman (2008) Marketers, follow development. that Prius, Advertising Age.  Harnessing the market forces that favour green [16] Rohita Kumar Mishra (2007) A Conceptual product development will lead to mainstream Framework on Green Marketing. green. [17] Global Media Deck (2010) Image Power Green Brand Survey. References [18] Matthew Murphy (2009) Consumers Face [1] Dodd’s John (2006)"Geek Marketing 101". wave of Green Wash, The Age. [2] Thomas L. Friedman (2007) "The Power of [19] Meenakshi Handa (2006) Green Marketing– Green". The New York Times. Drivers & Challenges, Vol 2, Issue 11. [3] Ottman Jacquelyn (2002) "The real news about [20] Jacquelyn A Ottman (2008) The Five Simple green consuming". Rules of Green Marketing, Design [4] Ottman J.A. et al, (2006) Environment, Vol-48. Management Review. [5] Crane A. (2000) Journal of Strategic Marketing, Vol.8, No.3, pp. 277-96.

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