Green Marketing
Green Marketing
Green Marketing
Contents
Front Page
Declaration
II
Preface
III
Acknowledgement
IV
Executive Summary
Chapter: - 1
V-VI
Introduction
1-25
1.1
1-4
1.2
4-5
1.3
6-13
1.4
13-14
1.5
15
1.6
15-19
1.7
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
29-31
2.5
Perception-in-action
31-32
2.6
Theories of Perception
32
2.7
Chapter: - 3
33-35
Review of literature
36- 77
3.1
3.2
37-40
3.3
40-41
3.4
Strategic Bridging
41-42
3.5
42-43
3.6
43-55
3.7
56-67
3.8
37
68-70
3.9
70-71
3.10
71-72
3.11
72-74
3.12
74-77
Chapter: - 4
Research Methodology
78-79
4.1
Objectives of Research
79
4.2
Major Hypothesis
79
4.3
79
Chapter: - 5
80-92
Chapter: - 6
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.
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.
1.2
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.
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.
Product-
b.
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.
e.
f.
g.
h.
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.
10
4.
Promotion-
11
claims
or
establish
unrealistic
expectations,
and
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-
13
17. Does the pack give useful advice on other uses for the packaging
itself? (Addresses of local bottle banks)
6.
DISTRIBUTION
1.
2.
3.
4.
5.
6.
Avoid wasteful market places where customers use too much. Public
relations negativity will eat into any profits you make.
7.
8.
Analyses all processes and decide where paper can be cut out.
Avoiding unnecessary paperwork also saves time and money.
14
9.
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.
2.
3.
4.
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.
7.
8.
SALES FORCE
1.
2.
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.
5.
6.
7.
16
8.
9.
1.4
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
18
1.
2.
It saves money in the long run, though initially the cost is more.
3.
4.
1. OpportunitiesIt appears that all types of consumers, both individual and industrial are
becoming more concerned and aware about the natural environment.
19
competitive
advantage
over
firms
marketing
non-
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.
21
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
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.
B.
C.
D.
E.
F.
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
25
1.9
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."
28
needed]
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
4.3
Research Design
Descriptive
Survey
Data Sources
Sample Size
50
Sample Unit
Type of questionnaire
products.
Structured Questionnaire
Research instrument
Questionnaire
31
Chapter 5
32
Da
Option
Total
Percentage
Yes
50
100%
No
Total
50
100%
ta
Analysis &
Interpretation
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.
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.
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.
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
Q.6.
Option
Total
Strongly agree
27
Agree
22
Strongly Disagree
Disagree
Dont know
Total
50
Table 5.6
Figure 5.6
40
Q.7.
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.
Table 5.8
Total
Strongly agree
16
Agree
23
Strongly Disagree
Disagree
Dont know
Total
50
Figure 5.8
42
dont
Q.9. Do you
Eco.
Option
Total
Percentage
Yes
50
100%
No
Total
50
100%
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%
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.
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.
2.
3.
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
6.
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.
9.
10.
11.
13.
14.
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
51
chapter
2.
3.
Price
environmentally
preferable
product
comparable
to
conventional ores.
4.
5.
6.
7.
8.
Extent thats to customer to making good, green choices & tell them
how they are making a difference.
9.
10.
11.
12.
Acknowledge imperfection.
53
REFRENSES
Crane, A. (2000), "Facing the backlash: green marketing and
strategic re-orientation in the 1990s", Journal of Strategic Marketing,
Vol.8, No.3, pp. 277-96.
Elkington, J. (1994), "Towards the sustainable corporation: win
business
strategies
for
sustainable
development",
California
J.A.
(1993),
Green
Marketing:
Challenges
and
54
www. Yahoo.com
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