ASSAM UNIVERSITY, SILCHAR

JAWAHARLAL NEHRU SCHOOL OF

MANAGEMENT STUDIES
DEPARTMENT OF BUSINESS ADMINISTRATION
PRESENTATION
COURSE: ENVIRONMENT MANAGEMENT AND
BUSINESS ETHICS
TOPIC: GREEN MARKETING
PRESENTERS

APU CHAKROBOTY (ROL NO.7)

EDGER YORAM MWANKUGA (ROL NO.23)

OBJECTIVES OF THE STUDY

a) To understand the concept of Green Marketing,(Defitions and
Evolution)
b) To know the Characteristics of Green Products and Benefits
Green Marketing.
c) To know the Golden Rule of Green Marketing,
d) To understand some problems associated by Green Marketing,
e) Green Marketing in India : Case Study,
f) What should be done? What Next?

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INTRODUCTION
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As early as 1896, the Swedish Sciencist, Svante Arrhenius had predicted that
human activities would interfere with the way the sun interacts with the earth,
resulting in Global warming. It evidenced that, his prediction has become true
and climate is now disrupting global environmental stability.
Global environmental problems like, global climatic change, depletion of ozone
layer,desertification,deforestation,loss of planets biological diversity and the like
have long term effects on people and societies and are either difficult or
impossible to reverse over the period of one generation, unless effective global
actions are taken as quick as possible.
The last few decades have seen many treaties, convertions and protocols for the
cause of global environmental protection. Effectiveness of these treaties,
conventions and protocols like United Nations Framework Convention on Climate
Change, Kyoto Protocal, and Copenhagen Summit etc are questionable.
Industries are one of the contributing field to the global environmental problems.
Green Marketing is one of the initiatives to reduce/mitigate negative impact of
industries to the environment. In era when the information revolution has
dramatically changed the business field, when old organizations have given way
to fluid networks of contacts, our ideas about green marketing are clearly due for
redefinition.
In this short piece of work, we offers a sweeping look at the concept of Green
Marketing in todays world, in an illuminating blend of history, definitions, and
importance, success, challenges and business case studies.

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BLEND OF HISTORY.

Green Marketing has been an important academic research topic since it came
into existence. Green Marketing was drew attention in 1970s when American
Marketing Association organized the first ever workshop on Ecological
Marketing in 1975 which resulted in the first book on the subject entitled
Ecological Marketing written by Henion and Kinnear in 1976.
According to Peattie and Crane (2005) claims that despite the early
development, it was only in the late 1980s that the idea of Green Marketing
actually made an appearance because of the consumers growing interest in
green products.
Green Marketing was given prominence in the late 1980s and 1990s after the
proceedings of the first workshop on Ecological Marketing held in Austin, Texas
(USA) in 1975.Several books on green marketing began to be published
thereafter.
According to Peattie (2001), the evolution of green marketing has three phases,
namely
(i)
(ii)
(iii)

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Ecological Marketing: The emphasis during this phase was

based to help environment problems and provide remedies for
environmental problems.
Environment Green Marketing ;During this era, the focus
shifted on clean technology that involved designing of innovative
new products, which take care of pollution and waste issues.
Sustainable Green Marketing. It came into prominence in the
late 1990s and early 2000.Because of the increasing challenges
for the companies, companies have to develop good quality
products which can meet consumer needs and wants by
focusing on the quality, performance, pricing and convenience
in an environment-friendly way.

DEFINITION.

According to the American Marketing Association (AMA), Green Marketing is

the marketing of products that are presumed to be environmentally safe. That
Green Marketing incorporates a broad range of activities, including product
modification, changes to the production process, packaging changes as well as

modifying advertising.Other similar terms used are Environmental Marketing and

Ecological Marketing.
Pride and Ferrell (1993), Green Marketing, also alternatively known as
Environmental Marketing and Sustainable Marketing, that refers to an
organizational efforts at designing,promoting,pricing and distributing products
that will not harm the environment.
Polonsky (1994) defines green marketing as all activities designed to generate
and facilitate any exchange intended to satisfy human needs or wants such that
the satisfaction of these needs and wants occurs with minimal detrimental impact
on the natural environment.
Elkington (1994),defines consumer as one who avoids products that likely to
endanger the health of the consumer or others, cause significant damage to the
environment during manufacturer, use of disposal consume a disproportionate
amount of energy, cause unnecessary waste, use materials derived from
threatened species or environments, involves unnecessary use of, or cruelty to
animals, adversely affect other countries.
Yet defining Green Marketing is not simple task where several meanings
intersect and contradict each other; an example of this will be the existence of
varying social, environmental and retails definitions attached to this term. Green
Marketing rather is the Holistic concept, which comprises a lot number of
activities like;
i)
ii)
iii)

Manufacturing and providing products to consumers which are of good

quality and at the same time not harmful to them even in long run,
Use the resources for development in such a manner which will enable
the future generations to avail to resources to meet their needs to
sustainable development,
Framing and implementing policies which not have any detrimental
effect on the environment

Why Green Marketing?

Environmental problems like global warming, depletion of ozone layer ect are the
main for the healthy survival. Every individual, whether rich or poor would be
interested in quality life with full of health and vigor and so would the corporate
business. Financial gain and economic profits the main aim of any corporate
business.

The effect of environmental detrimental, and the increasing awareness on the

side of customers, forced many corporate business to adopt Green Marketing.
Underneath is the summary of reasons for the business corporate to adopt green
marketing
i)
ii)
iii)
iv)

Growing interest among the consumers all over the world regarding
protection of environment,
Growing Market for sustainable and socially responsible products and
services,
Consumers behaviour changes,
Government regulations around the globe are very strict and the whole
world is talking about global warming, climate change and environment
protection.

GREEN PRODUCTS AND ITS CHARACTERISTICS.

According to John Elkington and et all, in their book titled The Green
Consumer, they discussed several characteristics that are products must have
to be regarded as Green Product. They contended that a green product
should have the following characteristics;
a)
b)
c)
d)
e)
f)
g)

Products those are recyclable and reusable

Products with natural ingredients,
Products containing recycled contents, on toxic chemicals,
Products contents under approved chemicals,
Products that do not harm or pollute the environment,
Products that will not be tested on animals
Products that have eco-friendly packaging i.e. reusable, refillable
containers

Benefits of Green Marketing.

Green marketing offers a number of significant benefits:
i.
ii.
iii.
iv.

Marketers get access to new markets and gain an advantage over

competitors that are not advocating greenness.
Marketers can charge a premium on products that are seen as more ecoresponsible.
Organizations that adopt green marketing are perceived to be more
socially responsible.
Green marketing builds brand equity and wins brand loyalty among
customers.

GREEN MARKETING SUCCESS/GOLDEN ROLE OF MARKETING

To be successful, green marketing companies there are a few fundamental rules
that will go a long way in shaping the future of the business in the coming years.
The fundamental strategy is to use the Four Ps suitably modified to meet the
needs of green marketing, but there are few points that are needed to be
stressed on before embarking on strategy. These are;
a) Know your costumer,
Means making sure that the consumer is aware of and concerned about the
issues that your product attempts to address, without which successful in green
marketing will be difficult to achieve,
b) Educate the customer,
Means educating the people the reasons as to whatever your are doing is not
only to protect the environment, but also matters of letting them know why it
matters.

c) Genuineness and Transparency to the customer,

In reality you are actually practicing, what you claim to be doing in your green
marketing campaign and your business policies are in lieu with whatever your are

doing thats eco friendly. Both these conditions have to be met four your business
to establish the kind of environmental credentials that will allow a green
marketing campaign to succeed.
d) Re-assure the buyer
Means that the customers must be made to believe that the product being
offered shall fulfill the objective or purpose for which it has been purchase i.e.-no
compromise in product quality in the name of the environment.
e) Consider your pricing.
Means making sure that consumers can afford the premium and feel it's worth it,
which is being charged for your product, as many environmentally preferable
products cost more due to economies of scale and use of higher-quality
ingredients.
f) Giving your costumers an opportunity to participate
Means personalizing the benefits of your environmentally friendly actions,
normally through letting the customer take part in positive environmental action,
at same time keep in view the changed expectations of the customers.
The Four Ps of Green Marketing.
The best and simple way to understand the concept of Green Marketing is to look
at the four principles of marketing, which are Product, Price, Place and promotion
Product.

Identify customers environmental needs and develop products to address

these needs; or
Develop environmentally responsible products to have less impact than
competitors.
The increasingly wide variety of products on the market that support
sustainable development and are good for the triple bottom line.

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.
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
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.
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.
GREEN MARKETING CHALLENGES
a)
b)
c)
d)
e)
f)

New Concept,
Cost Factor,
Convising Customer,
Sustainability,
Non-cooperation,
Green Marketing Myopia.

CASE STUDY: CURRENT SCENARIO IN INDIA.

In India,Geen Marketing is a relatively new topic that introduced by few
multinational companies in India like Philips India Limited.Wheover,many local
companies are struggling to enhance green marketing as, customers are
becoming aware on the environment issues.

Around 25% of the consumer in India prefer environmentally friendly

products and around 28% may be considered healthy conscious,
Many companies have started realizing that they must behave in an
environment-friendly fashion and believe both in achieving environmental
objectives as well as profit related objectives,
Government regulations. Various government regulations framed by the
government to protect consumers and the society at large led to the
adoption of Green Marketing as a compulsion rather than a choice. For
example, the ban of plastic bags in many parts of the country, and
prohibition of smoking in public areas,etc,
Many companies take up Green Marketing to maintain their competitive
edge.

We can analyse, Green Marketing in India in three dimensions, which are;

1) Consumers,
According to many researches conducted, India in the only country to choose
deforestation and Air pollution as the most important green issue. India is the
only country in which more consumers say it should be developing countries that
should focus on green innovation versus developed countries.

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The results of recently released 2011 Edition of Global Image Power, Green
Brands Survey show that concern about the environment by the consumers, is
translating into a willingness to pay for a premium price,64% OF Indian
consumers indicate that they plan to spend more on green products in 2012.
Further more consistent with emerging countries, Indians are willing to pay a
green premium price, with 48% of Indians willing to spend 10% more on a
product simply because it is green. Consumers in India are trusting of green
advertising compared to other countries, with 86% of Indian consumers reporting
that advertising about green products help them in making choices.
2) Producers
AMUL has been rated as the Top Indian Green Brand by Global Green
Brands survey. The International Dairy Federation has also awarded AMUL
Green movement as the best Environment Initiative in the Sustainability
Category in 2010.It is also has been awarded Srishtis good green governance
award for four consecutive years since 2011.
The 2011, top 10 Green Brands in India are;
1) AMUL
2) Dabur India Ltd,
3) Infosys
4) Taj Hotels,
5) Britannia Industries Ltd,
6) Suzlon India,
7) Hindustan Unilever Ltd,
8) Wipro Technologies Ltd,
9) Maruti Udyong Ltd,
10)Godrej Consumer Products

3) Government.
The Indian Government has also done its mite in promoting green marketing and
eco-friendly by way of banning plastic bags from daily use, helping its automotive
industry to develop greener vehicles by supporting hybrid and electric vehicles
(EVs), by investing in greener cars, the government of India is capitalizing on an
underutilized segment and building an infrastructure that ill generate economic
growth and reduce emissions.

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Governmental Bodies are forcing to firms to become more responsible. In most

cases the government forces firm to adopt policy which protects the interests of
the consumers by reducing production of harmful goods or products.
Interestinglr,green marketing continues to be an issue of global interest.In
fact,Google Trends Report on relative basis,more search for Green Marketing
originated from India than from any other country.
EXAMPLE 1 : Best Green IT Project: State Bank of India : Green IT@SBI
By using eco and power friendly equipment in its 10,000 new ATMs, the banking
giant has not only saved power costs and earned carbon credits, but also set the
right example to follow.
SBI is also entered into green service known as Green Channel Counter.SBI is
providing many services like paper less banking, no deposit slip, no withdraw no
checks form, no money transactions form, all these transactions are done
through SBI shopping and ATM cards.
The State Bank of India became the first Indian bank to harness wind energy through a
15-megawatt wind farm developed by Suzlon Energy. The wind farm located in
Coimbatore uses 10 Suzlon windturbines, each with a capacity of 1.5 MW.The
wind project is the first step in the State Bank of India's green banking program
dedicated to the reduction of its carbon footprint and promotion of energy efficient
processes, especially among the bank's clients
EXAMPLE 2 : Lead Free Paints from Kansai Nerolac.
Kansai Nerolac Paints Ltd. has always been committed to the welfare of society
and environment and as a responsible corporate has always taken initiatives in
the areas of health, education, community development and environment
preservation.
Kansai Nerolac has worked on removing hazardous heavy metals from their
paints. The hazardous heavy metals like lead, mercury, chromium, arsenic and
antimony can have adverse effects on humans. Lead in paints especially poses
danger to human health where it can cause damage to Central Nervous System,
kidney and reproductive system. Children are more prone to lead poisoning
leading to lower intelligence levels and memory loss.
EXAMPLE 3 : Indian Oil's Green Agenda.
Green Initiatives

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Indian Oil is fully geared to meet the target of reaching EURO-III compliant
fuels to all parts of the country by the year 2010; major cities will upgrade
to Euro-IV compliant fuels by that time.

Indian Oil has invested about Rs. 7,000 crore so far in green fuel projects
at its refineries; ongoing projects account for a further Rs. 5,000 crore

Motor Spirit Quality Improvement Unit commissioned at Mathura Refinery;

similar units are coming up at three more refineries.
The Centre has been certified under ISO-14000:1996 for environment
management systems.

EXAMPLE 6 : Wipro Green It.

Wipro can do for you in your quest for a sustainable tomorrow- reduce costs,
reduce your carbon footprints and become more efficient - all while saving the
environment.
Wipro's Green Machines (In India Only)
Wipro Infotech was India's first company to launch environment friendly computer
peripherals. For the Indian market, Wipro has launched a new range of desktops
and laptops called Wipro Greenware. These products are RoHS(Restriction of
Hazardous Substances) compliant thus reducing e-waste in the environment.

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