Green Marketing

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A

Contents
Front Page

Declaration
II
Preface
III
Acknowledgement
IV
Executive Summary
Chapter: - 1

V-VI

Introduction

1-25

1.1

Introduction of Green marketing

1-4

1.2

Principle of Green marketing

4-5

1.3

Marketing Mix of Green Marketing

6-13

1.4

Why Is Green Marketing Important

13-14

1.5

Benefit of Green Marketing

15

1.6

Why Are Firms Using Green Marketing

15-19

1.7

Some Problems with Going Green

20-21

1.8

Greenhouse

gas

reduction

market

22

1.9

Popularity

and

effectiveness

22-24
1.10

Green

marketing

24-25

cases

Chapter: - 2

Theoretical Framework

26-35

2.1

What is

Customer?

27

2.2

27

What is Perception
2.3

Types

of Perception

28-29
2.4

Perception and reality

29-31

2.5

Perception-in-action

31-32

2.6

Theories of Perception

32

2.7

Chapter: - 3

The customer's perception

33-35

Review of literature

36- 77

3.1

A Conceptual Frame Work on Green Marketing

3.2

Are the Mainstream Going Green?

37-40

3.3

Green marketing has off-color response

40-41

3.4

Strategic Bridging

41-42

3.5

Understanding the Dynamics of Produce Markets

42-43

3.6

Green Bags Bad for the Environment

43-55

3.7

Wind energy policy, transmission & regulation

56-67

3.8

Marketing & Information Management Solutions

37

68-70

3.9

Choosing the Right Green-Marketing Strategy

70-71

3.10

Green Features Beat Out Luxury Amenities in Buyer Poll

71-72

3.11

Internet Marketing Goes Green

72-74

3.12

Selling Eco (nomically) Friendly Products

74-77

Chapter: - 4

Research Methodology

78-79

4.1

Objectives of Research

79

4.2

Major Hypothesis

79

4.3

Materials & Methods

79

Chapter: - 5

Data Analysis & Interpretation

80-92

Chapter: - 6

Conclusion & Suggestion

93-98

Bibliography

99

Annexure
101

100-

CHAPTER I
INTRODUCTION OF
GREEN MARKETING

1.1

Introduction of Green marketing:Although environmental issue influence all human activity, few academic

discipline have integrated green issue into there literature. This is especially true
of marketing .As society becomes more concerned with the natural environment,
business have began to the modify there behavior in an attempt top address
societys new concerns. Some business has been quick to accept concept like
environmental management system and waste minimization and have integrated
environmental issue into all organizational activity. Some evidence of this is the
development of journals such as Business strategy and the environment and
Greener Management International, which are specifically designed to the
disseminate research relating to business environmental behavior.

Green marketing refers to holistic marketing concept where in the


production, marketing, consumption & disposal of product and services happen
in a manner that is detrimental to the environment .Green marketing is the
process of the developing product and services and promoting them to satisfy the
customer who prefer products of good quality performance and convenience at
affordable cost which at the same time do not have determinantal impact on the
environment.

DEFINITION
According to the American Marketing Association, Green Marketing is the
marketing of products that are presumed to be environmentally safe.
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 where several meanings
intersect and contradict each other; an example of this will be the existence of
varying social, environmental and retail definitions attached to this term.
Other similar terms used are Environmental Marketing and Ecological Marketing.
According to Jacquelyn A. Ottman, (author of Green Marketing: Opportunity for
Innovation) from an organizational standpoint, environmental considerations
should be integrated into all aspects of marketing new product development
and communications and all points in between.
The holistic nature of green also suggests that besides suppliers and retailers
new stakeholders be enlisted, including educators, members of the community,
regulators, and NGOs.

Environmental issues should be balanced with primary customer needs. Green


or Environmental Marketing consists of all activities design to generate and
facilitate any exchange intended to satisfy human needs or wants, such

1.2

Principle of Green marketing

1. Fully Disclose Product Contents


2. Support Sustainable Energy Resources
3. Make A Difference
4. Regard Existing as well as new Renewable Resources
5. Not To Charge Excessive Price
6. Avoid premiums In Advance
7. Support Emission Disclosure

1. Fully Disclose Products Contents : - Green marketers should


voluntarily disclose product contents to consumer in their advertisement.
Marketing company should also provide all necessary information to government
agencies & private organizations seeking to verify those claims.

2. Support Sustainable Energy resources :- The generation of power


form wind, geothermal, biomass & solar resources can improve the
environmental profile of the company. The generation of power form these
renewable resource do not cause irreparable damage to ecosystem

3. Make a Difference: - Green marketing can make a difference by building


total consumer demand for renewable & ultimately increasing the supply of
renewable in the marketplace, Consumers should not be asked to pay extra for
environmental practices that are already required by law.

4. Regards Existing as well as New Renewable Resources :Marketers should imply that new is better simply because it is new , or that
existing renewable are not supported simply because of the fact they were built
earlier

5.

Not to charge excessive price: - marketing company should not

charges excess price of cost renewable energy. The cost of renewable energy as
fallen dramatically in the last decade and if the excessive price is charged for
renewable energy it will give the public impression that renewable cost more.

6. Avoid Premiums Advance :- consumer should not be asked to pay


premiums in advance green purchase that are donation oriented are likely to be
less successful .
7. Support emission Disclosure:- Disclosure of emission consistent basis
is required for all manufacturers.

1.3 Marketing Mix of Green Marketing


Like conventional marketers, green marketers must address the four Ps in
innovative ways.
1.

Product-

Entrepreneurs wanting to exploit emerging green market either:


A. identify customers environmental needs and develop products to
address these needs; or

B. Develop environmentally responsible products to have less impact


than competitors.
The increasingly wide varieties of products on the market that support
sustainable development and are good for the triple bottom line include:
a.

Products made from recycled goods, such as Quick N Tuff housing


materials made from recycled broccoli boxes.

b.

Products that can be recycled or reused.

c.

Efficient products, which save water, energy or gasoline, save money and
reduce environmental impact. Queenslands only waterless printer, Print
point, reduces operating costs by using less water than conventional
printers and is able to pass the savings on to customers.

d.

Products with environmentally responsible packaging. McDonalds, for


example, changed their packaging from polystyrene clamshells to paper.

e.

Products with green labels, as long as they offer substantiation.

f.

Organic products many consumers are prepared to pay a premium for


organic products, which offer promise of quality. Organic butchers, for
example, promote the added qualities such as taste and tenderness.

g.

A service that rents or loans products such as toy libraries.

h.

Certified products, which meet or exceed environmentally responsible


criteria.

Whatever the product or service, it is vital to ensure that products meet or exceed
the quality expectations of customers and are thoroughly tested.

2.

Price-

Pricing is a critical element of the marketing mix. Most customers are prepared to
pay a premium if there is a perception of additional product value.
This value may be improved performance, function, design, visual appeal or
taste. Environmental benefits are usually an added bonus but will often be the
deciding factor between products of equal value and quality.
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.
3.

Place-

The choice of where and when to make a product available has a significant
impact on the customers being attracted.
Very few customers 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.
The location must also be consistent with the image which a company wants to
project. The location must differentiate a company from its competitors. This can
be achieved by in-store promotions and visually appealing displays or using
recycled materials to emphasize the environmental and other benefits.

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4.

Promotion-

Promoting products and services to target markets includes paid


advertising, public relations, sales promotions, direct marketing and on-site
promotions.
Smart green marketers will be able to reinforce environmental credibility by
using sustainable marketing and communications tools and practices. For
example, many companies in the financial industry are providing electronic
statements by email, e-marketing is rapidly replacing more traditional
marketing methods, and printed materials can be produced using recycled
materials and efficient processes, such as waterless printing.
Retailers, for example, are recognizing the value of alliances with other
companies, environmental groups and research organizations when
promoting their environmental commitment. To reduce the use of plastic
bags and promote their green commitment, some retailers sell shopping
bags, under the banner of the Go Green Environment Fund.

11

The key to successful green marketing is credibility. Never overstate


environmental

claims

or

establish

unrealistic

expectations,

and

communicate simply and through sources that people trust.


Promote your green credentials and achievements. Publicize stories of the
companys and employees green initiatives. Enter environmental awards
programs

to

profile

environmental

credentials

to

customers

and

stakeholders.
When companies come up with new innovations like eco-friendly
product, they can access new markets, enhance there market share and
increase profit just as we have Some other factors. These can be
explained as follow:5.

Packaging

6.

Distribution

7.

Advertising

8.

Sales force

5.

Packaging-

Package or container is essential for the safety of the


product from the centre of production to the center of consumption and up
to the final consumption of product .Package provides convenience to the
customer and also have great promotional value.
Ex:-Wall-Mart.dustbin
12

1. Is the packaging perceived to be environmentally safe?


2. Is it biodegradable?
3. Can it be reused or recycled after use?
4. Is it safe to customer/handling operatives?
5. Will its disposal be safe? (Plastic bags suffocate animals).
6. Is it necessary?
7. Is it easy to use?
8. Does it store well?
9. Is it 'green' at point of sale?
10. Is it functional?
11.Does it travel?
12. Do pack sizes lead to waste/over-use? (Or are they perceived to do
this?)
13. Does the pack give impression of a responsible seller?
14. Does the pack imply that 'artificial' have been used in the production
(preservatives, colorants, unnecessary additions)?
15. Does the pack message mislead or confuse?
16. Can the pack be used again for difference purposes? (China tea
chests for removals, fertilizer bags in construction works etc.?)

13

17. Does the pack give useful advice on other uses for the packaging
itself? (Addresses of local bottle banks)

6.

DISTRIBUTION

1.

Ensure your distributors are 'green' and will associate responsibility


with your product.

2.

Establish what contribution your distributors make to society and help


them where possible. Are you telling everyone about these
achievements?

3.

Do distributors offer child care, training, education, share of company


profits etc.?

4.

Create 'green' SWOT reports on distributor networks.

5.

Plan distribution to minimize amounts of product movement.

6.

Avoid wasteful market places where customers use too much. Public
relations negativity will eat into any profits you make.

7.

Direct selling can avoid wasted resources.

8.

Analyses all processes and decide where paper can be cut out.
Avoiding unnecessary paperwork also saves time and money.

14

9.

Evaluate new distribution channels which don't pollute. Bicycle


couriers instead of motor bikes, delivery, not self service. Train instead
of taxi.

10. Forgetting cost, re-think the distribution strategy to establish the most
green method. Re-insert cost, then go to suppliers and negotiate.
Don't necessarily switch all deliveries, but a few. This will help green
business to establish and become competitively priced.

7.

ADVERTISING

1.

Keep claims honest, truthful, decent and not misleading.

2.

Welcome opportunities to focus on green aspects (charities, ozone


friendliness)

3.

Don't use comparative advertising. Pulling down competitors will throw


doubt over your product area in general.

4.

In media selection choose 'green' media. (Radio and TV create no


waste, some magazines are printed on recycled paper)

5.

Decide which media are green for your situation. Press, TV, radio,
posters, timetables, supermarket trolley, aerial advertising, parking
meters, milk bottles, packaging, sacks, waste bins, delivery trucks,
sport dress, video, matches, taxi, sandwich boards.

15

6.

Choose a target audience which is green, consciously refuse to


promote your offering to targets who are wasteful.

7.

Use green techniques sincerely, don't 'trick' the customer.

8.

SALES FORCE

1.

Is your sales team environmentally conscious?

2.

Is the team aware of green issues?

3.

Do you look after your staff? (Child care, training, education, a stake
in company). Remember that your customers want to buy from a
caring company.

4.

Are sales aids appropriate? Wasteful catalogues given unnecessarily


damage images.

5.

Does the sales force knock the competition?

6.

Is the car fleet lead-free?

7.

Is verbal and written advice likely to cause over-use or miss-use of


products?

16

8.

Are terms of employment likely to be anti-green? (Commission on


quantity sold can lead to wasted resources)

9.

If the business operates on a 'tender' basis, is sufficient attention


being paid to explaining non-monetary considerations?

10. Are communications green? electronic not paper, simple not


complicate

1.4

Why Is Green Marketing Important?

Green marketing offers business bottom line incentives and top line growth
possibilities. While modification of business or production processes may
involve start-up costs, it will save money in the long term. For example the
cost of installing solar energy is an investment in future energy cost
savings. Companies that develop new and improved products and services
with environmental impacts in mind give themselves access to new
markets, substantially increase profits and enjoy competitive advantages
over those marketing non-environmentally responsible alternatives.
Man has limited resources on the earth, with which she/he must attempt to
provide for the worlds' unlimited wants. There is extensive debate as to
whether the earth is a resource at man's disposal. In market societies
where there is "freedom of choice", it has generally been accepted that
individuals and organizations have the right to attempt to have their wants
satisfied. As firms face limited natural resources, they must develop new or
alternative ways of satisfying these unlimited wants. Ultimately green
marketing looks at how marketing activities utilize these limited resources,

17

while satisfying consumers wants, both of individuals and industry, as well


as achieving the selling organization's objectives.
When looking through the literature there are several suggested reasons
for firms increased use of Green Marketing. Five possible reasons are as
follows:
1. Organizations perceive environmental marketing to be an opportunity
that can be used to achieve its objectives.
2. Organizations believe they have a moral obligation to be more socially
responsible. Governmental bodies are forcing firms to become more
responsible.
3. Competitors' environmental activities pressure firms to change their
environmental marketing activities.
4. Cost factors associated with waste disposal, or reductions in material
usage forces firms to modify their behavior.

1.5 Benefit of Green Marketing


Todays consumers are becoming more & more conscious about the
environment & are becoming socially responsible. Therefore, more
companies are responding to consumers aspirations for environmentally
less damaging or neutral products. Many companies want to have as
early-mover advantage as they have to eventually move towards becoming
green. Some of the advantages of green marketing are:

18

1.

It ensures sustained long-term growth along with profitability.

2.

It saves money in the long run, though initially the cost is more.

3.

It helps companies market their product & services keeping the


environment aspects in mind. It helps in accessing the new market &
enjoying competitive advantage.

4.

More of the employees also feel proud & responsible to be working


for an environmentally-responsible company.

1.6 Why Are Firms Using Green Marketing?


When looking through the literature, there are several suggested
reasons for firms increased use of Green Marketing. Five possible
reasons cited are:
1. Organizations perceive environmental marketing to be an opportunity
that can be used to achieve its objectives
2. Organizations believe they have a moral obligation to be more socially
responsible
3. Governmental bodies are forcing firms to become more responsible
4. Competitors' environmental activities pressure firms to change their
environmental marketing activities
5. Cost factors associated with waste disposal, or reductions in material
usage forces firms to modify their behavior

1. OpportunitiesIt appears that all types of consumers, both individual and industrial are
becoming more concerned and aware about the natural environment.

19

Nowadays, firms marketing goods with environmental characteristics have


realized

competitive

advantage

over

firms

marketing

non-

environmentally responsible alternatives. There are numerous examples of


firms who have strived to become more environmentally responsible, in an
attempt to better satisfy their consumer needs.
A. McDonald's replaced its clam shell packaging with waxed paper

because of increased consumer concern relating to polystyrene


production and Ozone depletion
B. Tuna manufacturers modified their fishing techniques because of the

increased concern over driftnet fishing, and the resulting death of


dolphins
C. Xerox introduced a "high quality" recycled photocopier paper in an

attempt to satisfy the demands of firms for less environmentally harmful


products.
This does not mean that all firms who have undertaken environmental
marketing activities actually improve their behavior. In some cases, firms
have misled consumers in an attempt to gain market share. In many other
cases firms have jumped on the green bandwagon without considering the
accuracy of their behavior, their claims, or the effectiveness of their
products. This lack of consideration of the true "greenness" of activities
may result in firms making false or misleading green marketing claims.
2.

Social Responsibility-

Many firms are beginning to realize that they are members of the wider
community and therefore must behave in an environmentally responsible
fashion. This translates into firms that believe they must achieve
environmental objectives as well as profit related objectives. This results in
environmental issues being integrated into the firm's corporate culture.
20

Firms in this situation can take two perspectives: 1) they can use the fact
that they are environmentally responsible as a marketing tool; or 2) they
can become responsible without promoting this fact.
There are examples of firms adopting both strategies. Organizations
like the 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. This philosophy directly ties
itself to the overall corporate culture, rather than simply being a
competitive tool.
An example of a firm that does not promote its environmental initiatives is
Coca-Cola. They have invested large sums of money in various recycling
activities, as well as having modified their packaging to minimize its
environmental impact. While being concerned about the environment,
Coke has not used this concern as a marketing tool. Thus many
consumers may not realize that Coke is a very environmentally committed
organization. Another firm who is very environmentally responsible but
does not promote this fact, at least outside the organization, is 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.

3. Governmental PressureGovernmental regulations relating to environmental marketing are


designed to protect consumers in several ways: 1) reduce production of
harmful goods or by-products; 2) modify consumer and industry's use

21

and/or consumption of harmful goods; or 3) ensure that all types of


consumers have the ability to evaluate the environmental composition of
goods.
These governmental regulations are designed to control the amount of
hazardous wastes produced by firms. Many by-products of production are
controlled through the issuing of various environmental licenses, thus
modifying organizational behavior. In some cases governments try to
"induce" final consumers to become more responsible. For example, some
governments have introduced voluntary curb-side recycling programs,
making it easier for consumers to act responsibly. In other cases
governments tax individuals who act in an irresponsible fashion. For
example in Australia there is a higher gas tax associated with leaded
petrol.
One of the recent publicized environmental regulations undertaken by
governments has been the establishment of guidelines designed to
"control" green marketing claims. These regulations include the Australian
Trade Practices Commission's (TPC) "Environmental Claims in Marketing A Guideline, the US Federal Trade Commission's (FTC) "Guides for the
Use of Environmental Marketing Claims" and the regulations suggested by
the National Association of Attorneys-General. All these regulations were
designed to ensure appropriate information to consumers so that they
could evaluate firm's environmental claims.
Thus, governmental attempts to protect consumers from false or
misleading claims theoretically provide consumers with the ability to make
more informed decisions.
4. Competitive Pressure-

22

Another major force in the environmental marketing area has been a firms
desire to maintain its competitive position. In many cases, firms observe
competitors promoting their environmental behaviors and attempt to
emulate this behavior. It is only in some instances that this competitive
pressure causes an entire industry to modify and thus reduce its
detrimental environmental behavior. For example, it could be argued that
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. In another example when one tuna manufacture
stopped using driftnets, the others followed suit.
5. Cost / Profit IssuesCertain firms use green marketing to address cost/profit related issues.
Disposing of environmentally harmful by-products, such as polychlorinated
biphenyl (PCB) contaminated oil are becoming increasingly costly and in
some cases difficult. Therefore, when attempting to minimize waste, firms
are often forced to re-examine their production processes. In these cases,
they often develop more effective production processes that not only
reduce waste, but reduce the need for some raw materials. This serves as
a double cost savings, since both waste and raw material are reduced.
In many other cases, it has been found that firms find end-of-pipe
solutions, instead of minimizing waste. In these situations firms try to find
markets or uses for their waste materials, where one firm's waste becomes
another firm's input of production.

23

1.7

Some Problems with Going Green

Although a large number of firms are using green marketing, there are a
number of potential problems which need to be addressed. One of the
main problem is that firms using green marketing must ensure that their
activities are not misleading to the consumers or the industry, and do not
breach any of the regulations or laws dealing with environmental
marketing. In short, green marketing claims of a firm must:
A.

Clearly state environmental benefits;

B.

Explain environmental characteristics;

C.

Explain how benefits are achieved;

D.

Ensure comparative differences are justified;

E.

Ensure negative factors are taken into consideration; and

F.

Only use meaningful terms and pictures.


Furthermore, as many firms have tried to modify their products due to

increased consumer concern, are misled with the fact that consumers'
perceptions are always correct. Take for example the McDonald's case
where it replaced its clam shells with plastic coated paper. There is
ongoing scientific debate which is more environmentally friendly. Some
scientific evidence suggests that when taking a cradle-to-grave approach,
polystyrene is less environmentally harmful. If this is the case, McDonald's
bow to consumer pressure, has chosen the more environmentally harmful
option.
When firms attempt to become socially responsible, they face the risk
that the environmentally responsible action of today will be found to be
harmful in the future. Take for example the aerosol industry which has
switched from CFCs (chlorofluorocarbons) to HFCs (hydro-fluoro-carbons)
only to be told HFCs are also a greenhouse gas. Some firms now use
24

DME (dimethyl ether) as an aerosol propellant, which may also harm the
ozone layer. Given the limited scientific knowledge at any point in time, it
may be impossible for a firm to be certain they have made the correct
environmental decision. This explains why some firms, like Coca-Cola and
Walt Disney World, are becoming socially responsible without publicizing
the point. They may be protecting themselves from potential future
negative backlash; if it is determined they made the wrong decision in the
past.
Reacting to competitive pressures can cause all "followers" to make the
same mistake as the "leader." A costly example of this was the Mobil
Corporation who followed the competition and introduced "biodegradable"
plastic garbage bags. While technically these bags were biodegradable,
the

conditions

under

which

they

were

disposed

did

not

allow

biodegradation to occur. Mobil was sued by several US states for using


misleading advertising claims. Thus, blindly following the competition can
have costly ramifications.
The push to reduce costs or increase profits may not force firms to
address the important issue of environmental degradation. End-of-pipe
solutions may not actually reduce the waste but rather shift it around.
While this may be beneficial, it does not necessarily address the larger
environmental problem, though it may minimize its short term affects.
Ultimately most waste produced will enter the waste stream, therefore to
be environmentally responsible organizations should attempt to minimize
their waste, rather than find "appropriate" uses for it.

25

1.8 Green house gas reduction market


The emerging greenhouse gas reduction market can potentially catalyze
projects with important local environmental, economic, and quality-of-life
benefits. The Kyoto Protocols Clean Development Mechanism (CDM), for
example, enables trading between industrial and developing nations,
providing a framework that can result in capital flows to environmentally
beneficial development activities. Although the United States is not
participating in the Kyoto Protocol, several US programs enable similar
transactions on a voluntary and regulatory basis.
While international trade in greenhouse gas reductions holds substantial
promise as a source of new funding for sustainable development, this
market can be largely inaccessible to many smaller-scale projects, remote
communities, and least developed localities. To facilitate participation and
broaden the benefits, several barriers must be overcome, including: a lack
of market awareness among stakeholders and prospective participants;
specialized, somewhat complicated participation rules; and the need for
simplified participation mechanisms for small projects, without which
transaction costs can overwhelm the financial benefits of participation. If
the barriers are adequately addressed, greenhouse gas trading can play
an important role supporting activities that benefit peoples lives and the
environment.

1.9

Popularity and effectiveness


26

A. Ongoing debate
The popularity of such marketing approach and its effectiveness is hotly
debated. Supporters claim that environmental appeals are actually growing
in numberthe Energy Star label, for example, now appears on 11,000
different companies' models in 38 product categories, from washing
machines and light bulbs to skyscrapers and homes. The difference is,
however, that greenrightfully sois on the wane as the primary sales
pitch for products. On the other hand, Ropers Green Gauge shows that a
high percentage of consumers (42%) Feel that environmental products
dont work as well as conventional ones. This is an unfortunate legacy from
the 1970s when shower heads sputtered and natural detergents left
clothes dingy. Given the choice, all but the greenest of customers will
reach for synthetic detergents over the premium-priced, proverbial "Happy
Planet" any day, including Earth Day. New reports, however show a
growing trend towards green products.
B. Confusion
One challenge green marketers -- old and new -- are likely to face as
green products and messages become more common is confusion in the
marketplace. "Consumers do not really understand a lot about these
issues, and there's a lot of confusion out there," says Jacquelyn
Ottman(founder of J. Ottman Consulting and author of "Green Marketing:
Opportunity for Innovation.") Marketers sometimes take advantage of this
confusion, and purposely make false or exaggerated "green" claims.
Critics refer to this practice as "green washing". [Citation needed]

27

C. Statistics
According to market researcher Mintel, about 12% of the U.S. population
can be identified as True Greens, consumers who seek out and regularly
buy so-called green products. Another 68% can be classified as Light
Greens, consumers who buy green sometimes. "What chief marketing
officers are always looking for is touch points with consumers, and this is
just a big, big, big touch point that's not being served," says Mintel
Research Director David Lockwood. "All the corporate executives that we
talk to are extremely convinced that being able to make some sort of
strong case about the environment is going to work down to their bottom
line."

1.10 Green marketing cases


A. Philips Light's "Marathon"
Philips Lighting's first shot at marketing a standalone compact fluorescent
light (CFL) bulb was Earth Light, at $15 each versus 75 cents for
incandescent bulbs. The product had difficulty climbing out of its deep
green niche.[The company re-launched the product as "Marathon,"
underscoring its new "super long life" positioning and promise of saving
$26 in energy costs over its five-year lifetime. Finally, with the U.S. EPA's
Energy Star label to add credibility as well as new sensitivity to rising utility
costs and electricity shortages, sales climbed 12 percent in an otherwise
flat market.
B. Car sharing services

28

Car-sharing services address the longer-term solutions to consumer needs


for better fuel savings and fewer traffic tie-ups and parking nightmares, to
complement the environmental benefit of more open space and reduction
of greenhouse gases.[citation

needed]

They may be thought of as a "time-

sharing" system for cars. Consumers who drive less than 7,500 miles a
year and do not need a car for work can save thousands of dollars
annually by joining one of the many services springing up, including ZipCar
(East Coast), Flex Car (Washington State),[ and Hour Car (Twin Cities) .
C. Electronics Sector
The consumer electronics sector provides room for using green marketing
to attract new customers. One example of this is HP's promise to cut its
global energy use 20 percent by the year 2010. [To accomplish this
reduction below 2005 levels, The Hewlett-Packard Company announced
plans to deliver energy-efficient products and services and institute energyefficient operating practices in its facilities worldwide.
D. Introduction of CNG in Delhi
New Delhi, capital of India, was being polluted at a very fast pace until
Supreme Court of India forced a change to alternative fuels. In 2002, a
directive was issued to completely adopt CNG in all public transport
systems to curb pollution.

29

Chapter 4
Research
Methodology

4.1 Objectives of Research :


To find out the factor of Green marketing which influence customer
perception to buying goods?
To study the awareness of customer for Green marketing.
To measure the effectiveness of Green marketing in respect to society.
30

4.2 Major Hypothesis:


There is no Impact of Green marketing on Customer Perception.

4.3

Materials & Methods:

Research Design

Descriptive

Data Collection Method

Survey

Data Sources

Primary & Secondary

Sample Size

50

Sample Unit

All they customers who like to buy eco friendly

Type of questionnaire

products.
Structured Questionnaire

Research instrument

Questionnaire

Statistical Tools Used

Graphical Presentation, Percentage Analysis,


Weighted Average Mean & many more.

31

Chapter 5

32

Da

Option

Total

Percentage

Yes

50

100%

No

Total

50

100%

ta

Analysis &
Interpretation

Q.1. In your opinion should there be any provision to motivate the


Eco. Friendly Products?

33

Table 5.1

Figure 5.1

Analysis: By seeing this chart we can say that all the respondents are
agree that there should be any provision to motivate the Eco. Friendly
Products.

Q.2. In your opinion how can govt. motivate the people for
purchasing eco. Friendly Products? (Give Rank from 1 to 4)

34

Option

Rank

Ran

Rank

Ran

1 (4)

k2

3 (2)

k4

(3)

Total

Weighte

Ran

(1)

Through
Advertisement

14
(56)

17
(51)

17
(34)

2(2)

143

28.6

Through
Education
Through
Various other
awareness
programmes
Any Other

23
(92)
12
(48)

17
(51)
16
(48)

9(18)

1(1)

162

32.4

22
(44)

140

28

1 (4)

2(4)

47
(47)

55

11

Total

200

150

100

50

500

Table 5.2
__
W = WX
X
X=no. of respondents which are given the rank.
W= Weighted rank.

35

Figure 5.2

Analysis: The responses received, indicates that the govt. can motivate
the people mostly through Education than through advertisement after it
awareness programmes & at last Any Other programmes for purchasing
Eco. Friendly Products

36

Q.3.

Do you agree that the concept of green marketing affect the

society?

Option

Total

Strongly agree

25

Agree

23

Strongly Disagree

Disagree

Dont know

Total

50
Table 5.3

Figure 5.3
Analysis: The respondents were asked about that the concept of green
marketing affect the society. Out of 50 respondents 25are strongly agree,
23 are Agree, one of them is disagree & last one say dont know about it.

37

Q.4.

Do you think that in modern scenario green marketing is


needful for our day to day life?
Option

Total

Percentage

Yes

50

100%

No

Total

50

100%

Table 5.4

Figure 5.4
Analysis: Respondents were asked that in modern scenario green
marketing is needful for our day to day life, all are agree from this
statement.

38

Q.5.

In this competitive market how much green marketing


influence to customers for taking buying decision of Eco.
Friendly product?
Option

Total

A Little

14

Much

24

So Much

11

Nothing

Dont know

Total

50

Table 5.5

Figure 5.5
Analysis: From the responses received, it was seen that the respondents
gives rank

Much 24, A little 14, so much 11 & only one respondent say

dont know about this that In this competitive market how much green

39

marketing influence to customers for taking buying decision of Eco.


Friendly product.

Q.6.

Do you agree that green marketing is the concept for


marketing of products that are presumed to be safe for
environment?

Option

Total

Strongly agree

27

Agree

22

Strongly Disagree

Disagree

Dont know

Total

50

Table 5.6

Figure 5.6

40

Analysis: From the responses received, it was seen that maximum


number of respondents are strongly agree that green marketing is the
concept for marketing of products that are presumed to be safe for
environment & 22 respondents are only agree .

Q.7.

How much you will give response to eco. friendly Products?


Option

Total

Percentage

Excellent

23

46%

Very Good

13

26%

Good

14

28%

Bad

Very Bad

50

100%

Total

Table 5.7

Figure 5.7

41

Analysis: Most of respondents like 46% give rank excellent, 28% give
rank only good & 26% respondents give response to Eco. Friendly
products very good.

Q.8. Do you agree that competitors environmental activities


creates pressure on other firms to change their environmental
marketing activities?
Option

Table 5.8

Total

Strongly agree

16

Agree

23

Strongly Disagree

Disagree

Dont know

Total

50

Figure 5.8

42

Analysis: Respondent were asked that competitors environmental


activities creates pressure on other firms to change their environmental
marketing activities than out of 50, 23 are only agree, 16 are strongly
agree, 8 are
says

dont

Q.9. Do you
Eco.

Option

Total

Percentage

Yes

50

100%

No

Total

50

100%

protect our envt. from pollution?

Table 5.9

Figure 5.9

43

disagree & 3
know about it.
agree that
Friendly
products can

Analysis: By seeing this chart we can say that all the respondents are
agree that Eco. Friendly products can protect our envt. From pollution.
Option

Total

Percentage

Yes

43

86%

No

14%

Total

50

100%

Q.10. Do you agree that marketing promotional strategies can


influence eco. friendly products?

Table 5.10

Figure 5.10

44

Analysis: According to this chart, we can say that 86% respondents are
agreeing that marketing promotional strategies can influence eco. Friendly
products & only 14% respondents are disagreeing from this statement.

Q.11. Do you agree that green marketing players by using


sustainable packaging can increase image of green marketing
in the market?
Option

Total

Strongly agree

17

Agree

28

Strongly Disagree

Disagree

Dont know

Total

50

Table 5.11

45

Figure 5.11
Analysis: Respondents were asked that do they agree that green
marketing players by using sustainable packaging can increase image of
green marketing in the market then out of 50, 28 are only agree, 17 are
strongly agree, 2 are disagree & 3 says dont know about it.

46

Chapter 6
Conclusion &
Suggestions

47

Conclusion
Successful green marketing entails much more than simply tweaking
the size of a package, using recycled materials in place of virgin ones, or
substituting natural ingredients for synthetic. While positive and necessary,
such changes are just a small part of a much, much bigger picture.
Look at those businesses at the forefront of the green trend and see a
deeper characteristic than just greened-up products or ads that makes
them at once environmental and societal leaders as well as profitable:
1.

Green leaders are driven by more than short-term financial goals.

2.

They are motivated by a double bottom line, a bottom line that


recognizes the potential for business to affect societal change as well
as create economic wealth.

3.

A business that at the end of the day is measured by profits as much


as its contribution to human potential and the harmony of the
company's objectives with other living beings.

4.

Green leaders are not afraid to project the values that underlie their
organization's mission and purpose.

5.

To their customers, the products they sell are not just consumables
sold at a profit but mirrors of their corporate commitment to
48

environmental care and social responsibility.

6.

Such products appeal to consumers with a finely honed sense of


idealism, integrity, and the belief that businesses can and should
achieve social goals as well as financial ones.

7.

Because green leaders are not afraid to take a stand on their beliefs,
their consumers stand ready to believe their product claims and
regard the individuals running the company as sincere.

8.

The most successful green companies operate holistically. Unlike


conventional marketers who most often react to consumers'
immediate needs, the most successful green companies lead their
customers and other stakeholders, rather than accept being led by
them.

9.

They anticipate emerging environmental issues and address them


before being forced to do so. As such they are able to set their own
agenda with regulators and they don't risk disappointing their
customers or shaking their confidence.

10.

Rather than simply employ resources at hand, the deep-seated


convictions of the founders and CEOs of the most environmentally
responsible companies challenge their employees to stretch beyond
their immediate horizons, teaming up with corporate environmental
stakeholders to create optimal solutions to pressing environmental
problems.

11.

These leaders are not afraid to question assumptions or break the


rules. They derive competitive advantage while accomplishing the
49

most good for society by embracing unconventional and often radical


solutions.
12.

They enhance profitability and quality by innovating more and more


efficient ways to design and market products and conduct their
businesses overall.

13.

The greenest companies are not afraid to listen to understand the


issues from all sides, to pick up clues from individuals and groups on
the fringes who can lead them to new opportunities, and to simply
demonstrate to employees, customers, suppliers and others that they
care. At the same time, they are not afraid to trust. They are open to
entrees from government regulators offering technical assistance or to
an environmentalist with a seemingly off-beat idea. Most importantly,
they trust their own instincts, their insights into the causes and
probable solutions to society's environmental ills, and their own deeply
held beliefs.

14.

Green leaders focuson the stakeholders most important to their


business and on the product attributes that represent the greatest
environmental impact and are most important to their customers.

15.

Finally, green leaders are patient. They are committed to the long
term, and to continuous improvement.

16.

They are eager to learn from their own mistakes and they engage in
forums that allow them to learn from the mistakes of others.

50

A green future is now being created by visionaries with a competitive spirit


in their bellies and social activism in their hearts. While many businessmen
and women may still be content to tweak products or manage cash cows in
the quest for next quarter's earnings, green leaders are right now readying
new products and services to market, creating new industries and more
inclusive work and management styles that didn't exist five or ten years
ago. Theirs will be the standards for the future.
With ever increasing scientific understanding of how the Earth works, a
general movement toward safer, less polluting and more environmentally
sustainable practices is inevitable.
Marketers that take the time now to court the deepest green consumers
with truly innovative solutions to environmental concerns will be the ones
who reap the biggest future opportunities.

51

chapter

Suggestion for Success


1.

Show that environmental initiatives lead to better quality product.

2.

Make environmental message consistent with the companies


existing voice the marketplace.

3.

Price

environmentally

preferable

product

comparable

to

conventional ores.
4.

Empower consumer to get involved to make a difference

5.

Be seen as a serious thought leader in the scientific & technology


communities
52

6.

Be ready to experiment publicly link environmental

7.

Link environmental innovations to other benefits like Quality &


durability.

8.

Extent thats to customer to making good, green choices & tell them
how they are making a difference.

9.

Seek recognition from peers & activities groups.

10.

Green products shouldnt be any different from regular ones-in


branding price use or performance.

11.

Send innovative new product among celebrities actors musicians


athletes & other trend sellers.

12.

Acknowledge imperfection.

53

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for

sustainable

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Porter, M.E., Van der Linde (1995), "Green and competitive: ending
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www.google.com
www.ask.com
www.Agricultureinformation.com
www.agricultureinformation.co...ganic-farming/

54

www. Yahoo.com

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