SCCT3233 INTERGRATIVE MEDIA MARKETING (GROUP A)

SECOND SEMESTER 2019/2020 SESSION (A192)

FORTH ASSIGNMENT:
REPLACEMENT ASSIGNMENT FOR
EXAMINATION ASSESSMENT

PREPARED BY:
KOIT WEI CHUEN 263027

PREPARED FOR:
DR. ROHANA BINTI MIJAN

DUE DATE:
17 JUN 2020
 SCCT3233 Integrative Media Marketing
The Replacement Assignment for Examination Assessment
Forth Assignment (20%)

Green Marketing
Today's, environment awareness of consumers has considerably increased throughout the world.
Environmental problems such as global warming and pollutions have become global issues
(Shirsavar and Fashkhamy, 2013) and non-biodegradable solid waste, harmful impact of
pollutants etc., both marketers and consumers are becoming more and more sensitive to the need
for switch to green products and services.
In your opinion, does the green marketing enhance customer satisfaction? Your argument MUST
be based on current case studies and supported with literature review. (20 marks)
Your answer must include literature review on the definition of green marketing, the element of
green marketing, the green marketing strategy, customer satisfaction’s definition, the
measurement of customer satisfaction, provide related case study and others relevant
topics/information.
1.0 Definition of Green Marketing

Green marketing is referring to the marketing with eco-friendly services and products. As
the pollution problems towards the planet become worst, green marketing becoming popular and
important. This is due to the people are become concerned with the environmental issues and
many organizations are encouraging the green marketing implementation in the industry’s
revolution and transformation. The emergence of consumer groups that are increasingly
concerned about environmental and social factors has led to green marketing becoming an
important part of company public relations.
The word green marketing exists in the late 1980s by the American Marketing
Association. American Marketing Association defines the term green marketing as the products
or services that is considered to be eco-friendly. It includes multiple activities such as product
modification, production process changes, packaging, advertising strategies and also raises the
industry awareness of compliance marketing. Therefore, green marketing includes a huge range
of relevant activities.
The early definition of the term green marketing has 3 main components, 1) It is a subset
of the whole marketing activities; 2) Research on positive and negative activities; 3) Research on
environmental issues with a narrow scope. ‘Green Marketing consists of activities that are
designed to generate communication intended to satisfy human needs, such that the satisfaction
of these human needs occurs, with minimal damage to the natural environment’ said by Michael
Jay Polonsky in 1994.
Compare to the traditional marketing, this marketing can be much more expensive. But
green marketing can also become profitable due to demand from the market needed. Products or
services that is eco-friendly will bring more value on the environment benefit perspective.
2.0 The Element of Green Marketing
Those are 4 elements of the green marketing perspective that we need to consider into which is
green products, green price, green place and the last one is green promotion. Those elements are
taking account into the implementation of the green marketing process. This 4 Ps of marketing
mix are from the viewpoint of the environmental preservation. This green marketing mix
elements will definitely address the key environmental issues effectively.
2.1 Green Products

The definition of green products is "products manufactured using non-toxic ingredients

and environmentally friendly, and have been approved by recognized organizations" (Kumar and
Rhodesia, 2015). Green products are usually be categories into two group which is reducing the
waste and maximizing the resource efficiency. Green products also need to be manufacture by
using toxic-free raw materials and environmentally-friendly process that certified by recognized
organization. In general, company that produce green products will use green marketing to
promote their value proposition to the market.
From the script called ‘Green Consumer’, wrote by Elk. John, Hales Julia, and John
Markower, they had discussed some of the characteristics and properties of the product must had
to believe as green product. Three of them debated that the product should not had the
characteristics and properties in the following.
1. Jeopardize the health or life of people or animals and plants
2. Destroy the environment at any form of its life, for example like manufacture process,
logistics, and disposal the chemical trash.
3. Consume unusual amount of energy and other material during the manufacture process,
logistics, or disposal the chemical trash.
4. Cause needless trash, either as a result of numerous packaging or a short useful life
5. Cause numerous packaging or short useful life and lead to needless trash
2.2 Green Price
 The price is the cost paid for the product. This is a key element of the marketing mix. If
you understand the value of additional products, many customers will only be prepared to pay for
premiums (Eric, 2007). This value may be enhanced performance, functionality, design, visual
appeal, or taste (Sharma, 2011). Green marketing should consider all these facts by charging
high prices (Bukhari, 2011). Green pricing is referring to the value considered in accordance
with the relevant rules formulated by the company policy and the company's instructions or its
initiatives as stipulated in the environment. However, green products usually require higher
initial value, it will be economical and profitable (Fang and Zen, 2011).
As mention before, the products require to change the manufacture process and it will
lead to the inflation of the products. After the modification of the production of green products in
the processes and the necessitates expenditure like machine maintenances. The cost increased
and results in the increased value point of the products so that makes acceptance of the product
in the market become more and more difficult.
The gap or the different between the price of the green product and a non-green product
is known as ‘value gap’. The value barrier can be solved by lowering the value point of products
to be consistent with the mainstream products on the market, or can increasing the perceived
value of green products in the eyes of customers.
Compared with traditional pricing methods, the cost of enrolling environmental problems
is very high. It said that green marketing pricing should be inexpensive for ordinary customers.
For example, like electronic products, TVs and LCD TVs are much cheaper than LEDs, and
LEDs are greener than the CRT, TVs and LCD. LED bulbs are actually relatively expensive than
the conventional bulbs. Same thing goes to the hybrid cars and electric cars. Therefore, it
becomes logical and reasonable for them to target the market.
Point out that green technology is not effective in term of cost. To be precise, green
marketing pricing varies by different industry. Therefore, when customers had the option to
purchase products, their prices will never lower their motivation.
2.3 Green Place

Green places refer to the management of logistics to reduce transportation emissions,

which is actually aimed at reducing the carbon emissions (Shil, 2012), and is relevant to the use
of convenient distribution doors for green products, which are suitable for customers. They are
delivered and ensure bicycle procedures are carried out under indoor environmental conditions.
The place represents the venue where the product or services can be deal. The product
distribution process should have a satisfactory channel, and should be placed correctly and in a
pollution-free and environmentally safe place. In order to establish a green company or
organization and make it competitively priced than other, the company had to ensure that its
distributors pay attention to the environment and establish a green distribution strategy (Eric,
2007).
Transportation cost will contribute to a huge part of the business spending and raw
material spending in the process of the distribution. Decrease the transportation costs meanwhile
reduces the carbon footprint can also affecting the marketing pricing of the products. The process
of transferring products from manufacturers to consumers is called logistics. In this sense, a
green place can be anything that minimizes the work of both the customers and manufacturers
buying and selling products separately. By selling products online, this will actually reduce the
cost of customers visiting the actual market, choosing a store and then purchasing products just
like the Taobao or Shopee. The company can set up its own website to display products, and
customers can place orders online and get product delivery within a couple of days. The internet
is indeed be called as a green place because it provides customers with unparalleled comfort, and
it also saves the cost of manufacturers by providing commissions or layoffs to various
middlemen.
The problems of selling products in this environment is to be conscious of the properties
of the products and experience them. Green venue should be enough to persuade savvy
customers to understand product features. The problems in green space will be high-technologic
products, which need to be tested in advance and visited by the end user at the manufacturer’s
location. Therefore, B2B sales may not be able to adapt to the green environment under certain
circumstances.
2.4 Green Promotion

Green promotion involves promotional tools, such as advertising on social media,

marketing resource, websites, public relations, promotions and live promotions, promotional
videos and online presentations, while keeping in mind people and profits. Important
promotional tools use green advertisements as messages, which can attract the needs of
consumers related to the environment (Ankit and Mayur, 2013).
The company conducts promotional activities to raise awareness of the products it
produces. The top management of the organization has always expected an optimal promotional
budget, which can generate good visibility and influence further purchases by the target
audience. Talking about green promotion will reach this optimal level. The best level needs not
just in terms of promotional costs, but also in several ways that affect the promotion. This can be
considered in the following way:
1. Choosing promotional partners: Only promotional partners with a good track record in
green promotion or environmental protection should be contracted.
2. Choose promotional materials: You should encourage the use of environmentally
friendly promotional materials, such as recyclable bags, rather than plastics that are
harmful to the entire environment. Similarly, online advertising can reduce confusion
when offline.
3. The choice of advertising information: In order to expand the scale of green marketing
companies, these days must be very seriously in the way of generating advertising
information. Green promotion should not only be evaluated based on environmental
impact, but also based on the way the company produces social impact. Today,
companies are beginning to increase pornographic content in their advertising messages,
which has had a huge impact on customer' minds. This will help customers remember the
advertisements on the TV network. This has been observed through food beverage,
domestic, smartphone, and fast-moving consumer goods; only a few drinks are
advertised.
Important section of the green product distribution channel is the sale of goods to end
consumers through retailers. In many cases, they share responsibility for claims made by
manufacturers of products. For this situation, retailers are advised to help verify claims to help
consumers (Supermarket News, 1992).
3.0 Green Marketing Strategy
A green marketing strategy layout shown in Figure 1 below was establish in 2004,
pointing out that the green marketing strategy that constitutes the layout must be resolute
according to the degree and importance of the green market within the branch where the
organization operates and the specific organization. Although it has been proven that the matrix
is a supporting tool for organizations that use specific strategies to incorporate green marketing
into their marketing plans, it is a mistake to state and accept that the matrix is sufficient to use
and generalize.

However, in view of the current market as a whole, new trends in the evolution of
environmental factors will affect companies and the ways and elements of gain a competitive
advantage.
Therefore, the model established based on the research conducted will expand the
implementation of the marketing mix as the first novelty and apply it to a comprehensive study
of all 7 verifiable variables. These variables usually refer to products and services. In addition to
these four variables, 3 variables are added, which are expressed in the form of personnel,
process, and physical evidence. The table lists the impact of each variable of the extra marketing
mix on choosing 1 of the 4 strategies.
3.1 Uniform Green (Lean Green)
Uniform Green or what we called Lean Green is suitable for companies that, while showing
behaviors that are socially responsible, do not disclose their behavior with a focus on green or
marketing. These aim to minus the costs and increases the efficiency of various activities by
seeking measures to preserve the environment, although the competitive advantage is not
affected by them. Although companies that implement a unified strategy abide by officially
implemented environmental laws and regulations, they acknowledge that they cannot obtain
financial benefits from the green market.

3.2 Moderate Green (Shaded Green)

The company which adopts a "moderately green" strategy are invests in a systematic solution to
the long-term process of green marketing, which requires financial and material and human input
and participation. Although the company can stand out through ecological methods and
environmental protection based on its position in the market and its relationship with
competitors, they do not often do so, but try to gain a competitive advantage through other
factors. Although the main channels for promotion and distribution are used, the environmental
opportunities and benefits associated with products or services are displayed and publicized in
the background.

3.3 Defensive Green

Defensive green companies often view green marketing as a preventive measure or as a response
to a crisis or competitor's behavior. Those company recognize that green marketing is profitable,
but they cannot afford to go green. Their environmental initiatives cannot compete with
competitors in terms of environmental protection.
Defensive greens usually do not initiate public, important green campaigns, because aggressive
promotion can waste resources and create unrealizable expectations. They take actions such as
small environmental activities and plans.

3.4 Extreme Green

Extreme Green Strategy is fully integrating product issues and business life cycles into
environmental issues. Since the establishment and release of the company, the ecological
approach has been accompanied by the company's activities. The activities and practices of
companies that implement "extreme green" strategies include methods for setting prices at the
product life cycle level, overall quality management of the environment, and production directed
at the environment and its protection.
4.0 Customer Satisfaction’s Definition

Customer satisfaction defines that customer can obtain satisfactory satisfaction from
products or services according to whether they can easily meet their needs, which is a convenient
way to make them loyal to the company. Therefore, customer satisfaction is major part to earn
customer loyalty. Philip Kotler defines customer satisfaction as "a person's pleasure or
disappointment, which is obtained by comparing the product's perceived performance or results
with his/her expectations".
The buyer’s expectations are affected by the following factors:
1. Recent product performance
2. Word of mouth, recommendation
3. Comment
4. Competitors' evaluation of products or services
5. Commitment of own marketers
Paul Farris defined customer satisfaction in his book "Marketing Indicators" as "the number
of customers or the percentage of total customers whose reported company, product or service
experience exceeds a specified satisfaction goal." This definition has been approved by the
Market Responsibility Standards Committee as the standard definition of customer satisfaction
measurement.
Furthermore, the definition of Farris has 2 meanings. First, it clearly shows that customer
satisfaction is not just an abstract concept. You can put a number on it. Second, it discusses the
specified satisfaction goals. We need to determine what these satisfaction goals are, so if you are
a SaaS company, these satisfaction goals will vary by product, or by service, and by product and
service.
5.0 Measurement of Customer Satisfaction
Customer satisfaction is defined in 2 ways: results or processes. As a result, the final state
produced by the consumption experience is satisfied. As in return, it is contributing to the
perception assessment and psychological process of the satisfaction. This definition differs in its
simplicity, including:
1. Product satisfaction
2. Satisfied with the experience of purchasing decisions.
3. Satisfaction with performance attributes
4. Satisfaction with stores or institutions
5. Satisfaction with pre-purchase.
Satisfaction leads to attitude loyalty. Satisfaction is the result that occurs without comparing
expectations. This is an overall judgment of satisfaction, and its premise is that satisfaction is the
result of service quality. And measurement of the customer satisfaction can be divided into four
major categories which is overall satisfaction measure, loyalty measurement, attribute
satisfaction measurement and the last one is intentions to repurchase measurement. These four
categories can reflect the customer’s feedback toward the company or organizations.
1. Overall Satisfaction Measurements
The biggest predictor of customer satisfaction is the customer experience that leads to quality
attribution. Perceived quality is usually measured in one of two situations:
-Total quality
-Degree of meeting customer needs
It is generally believed that dissatisfaction is synonymous with purchase regret, and satisfaction
is associated with positive thoughts, such as "This is a good choice" or "I am happy that I bought
something."
2. Loyalty Measurement
Customer loyalty reflects the possibility of repurchasing products or services. Customer
satisfaction is the main indicator of repurchase, but a clear performance evaluation of product
performance, quality and value will strongly affect customer satisfaction.
A common measure of loyalty is the total score of the following three questions:
-Overall, are you satisfied with the [product]?
-Will you continue to select/repurchase the [product]?
-Will you recommend the [product] to your friend or your family?
3. A series of Attribute Satisfaction Measurements (Affective and Cognitive)
Impact (preference/dislike) is best measured in the context of product attributes or revenue.
Customer satisfaction is affected by the perceived quality of product and service attributes, and
by product or service expectations. Researchers must define and develop metrics for each
attribute that is important to customer satisfaction.
Judgment is usually based on the intended use of the purchased product and the occasion of use,
whether the use is correct or incorrect.
4. Intentions to Repurchase Measurements (Behavioral Measures)
Satisfaction may affect other purchase behavior, such as communicating with others through
paper and social networks.
The additional post-experience actions may reflect increased product participation, which in turn
leads to increased search for products or information, reduced trials of the alternative products,
and even changed preferences for locations and selection behaviors.
6.0 Case Study

IKEA pursues sustainable development to a large extent. They projected $77 million in clean
technology startups like solar. The company has recycled 84% of the waste generated by its
stores. When a country enforces the stricter emission regulations, IKEA imposes new restrictions
on its global operations. As a result, IKEA’s policies reflect the strictest emission policies of
countries around the world, although they sometimes increase costs. IKEA is transforming into a
green company to maintain the suitability of the required materials.
Reforestation Project with Forest Stewardship Council (FSC)
As the wood is the main material for the company to produce the product. IKEA runs a
reforestation project with WWF in multiple countries like China, Vietnam, Romania, Bulgaria &
the Ukraine and etc. Because wood is the main raw material toward the IKEA, they work
together with Forest Stewardship Council to take care of the world’s forests through responsible
forest management and reforestation. IKEA plans to bring the wood from more sustainable and
replaceable sources, including Forest Stewardship Council certified and recycled wood, by the
end of 2020. Today, IKEA has achieved more than 91% of our goals.
Challenges of applying Green Marketing in IKEA
1. New concept
Green marketing is new. Consumers need to be educated of environmental threats toward our
life. The new green marketing needs popularization which will take time and effort. Consumers
have and will tend to accept green products in future but it will take time for those company or
organization to prepare to transform their company or organization toward green,

2 Endurance and perseverance

Investors and companies demand that the environment be regarded as the main long-term
speculative opportunity; marketers need to focus on the long-term benefits of this new green
movement. This will require a lot of persistence and will not produce results immediately
7.0 Conclusion
Green marketing not only just covers by only one company, it is now the right time to choose
"green marketing" globally. If all countries play a strict role, then the business world will change
dramatically, because green marketing is needed indeed to save the planet from pollution and
damages. From a business perspective, smart marketers not only have to persuade consumers,
but also involve consumers in marketing their products. Green marketing strategies should not
only be measured as a marketing tool, but must be pursued with better energy, because green
marketing has environmental and social significance.
Although green marketing has become a source of success for some companies, they still name it
as catching up with trends and catching green consumers. True green companies will continue to
grow and continue to contribute to society. As the case study mentioned, IKEA is one of the
models of green marketing successful company. Where consumer demand for products,
profitability and environmental protection meet each other. IKEA proved that they are true to the
products they produce, and finally become a benchmark that other companies must follow and
learn from.
8.0 References
1. Pranalin (26 Jun 2017). Green Marketing. Retrieved from
https://www.businessmanagementideas.com/marketing/green-marketing/20101

2. Fabien Durif, Caroline Boivin, Charles Julien (15 April 2010). In search of a green product definition.

Retrieved from https://businessperspectives.org/pdfproxy.php?item_id:3047

3. Polonsky, Michael Jay (1994). An Introduction To Green Marketing. Retrieved from
https://escholarship.org/content/qt49n325b7/qt49n325b7.pdf

4. Abey Francis (8 February 2019). GREEN STRATEGIES AND GREEN MARKETING STRATEGY
MATRIX. Retrieved from https://www.mbaknol.com/marketing-management/green-strategies-and-
green-marketing-strategy-matrix/

5. Ivan Kontic, Jasmin Biljeskovic (May 2010). Greening the marketing mix. Retrieved from
http://www.diva-portal.org/smash/get/diva2:329044/FULLTEXT01.pdf

6. Assc. Prof. Dr. Rashad Yazdanifard (Jan 2011). The impact of Green Marketing on Customer
satisfaction and Environmental safety. Retrieved from
https://www.researchgate.net/publication/268502673_The_impact_of_Green_Marketing_on_Custome
r_satisfaction_and_Environmental_safety

7. Thoria omer Mahmoud (20 Feb 2018). Impact of green marketing mix on purchase intention.
Retrieved from
https://www.researchgate.net/publication/322865212_Impact_of_green_marketing_mix_on_purchase
_intention

8. Anand Deshmukh (April 2015). Green Marketing: Greening the 4 Ps of Marketing. Retrieved from
https://www.researchgate.net/publication/310345086_Green_Marketing_Greening_the_4_Ps_of_Mark
eting

9. Mohammad Solaiman , Abdullah Osman and Mohd Suberi Bin Ab. Halim (Feb 2015). Green Marketing:
A Marketing Mix Point of View. Retrieved from
http://dspace.unimap.edu.my/xmlui/bitstream/handle/123456789/40027/IJBT_Vol_5_Feb_2015_7_87-
98.pdf?sequence=1#:~:text=INTRODUCTION,According%20to%20Welford

10. Catalina Soriana Sitnikov (Aug 2015). Matrix Model for Choosing Green Marketing Sustainable
Strategic Alternatives. Retrieved from
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_Sustainable_Strategic_Alternatives

11. Megha Rajeev (Jan 2020). What is customer satisfaction? Retrieved from
https://www.freshworks.com/freshcaller-cloud-pbx/call-center-software/customer-satisfaction-
definition-blog/

12. Ikea (27 Nov 2019). IKEA invests 200 million euros to speed up action to become climate positive by
2030. Retrieved from https://newsroom.inter.ikea.com/news/ikea-invests-200-million-euros-to-speed-
up-action-to-become-climate-positive-by-2030/s/c3181331-23d9-473e-9d56-20e0c3db7c66