INTRODUCTION

Green marketing is the marketing of products that are presumed to be environmentally safe. It incorporates a
broad range of activities, including product modification, changes to the production process, sustainable
packaging, 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.

Green, environmental and eco-marketing are part of the new marketing approaches which do not just
refocus, adjust or enhance existing marketing thinking and practice, but seek to challenge those approaches
and provide a substantially different perspective. In more detail green, environmental and eco-marketing
belong to the group of approaches which seek to address the lack of fit between marketing as it is currently
practiced and the ecological and social realities of the wider marketing environment.

HISTORY
The term Green Marketing came into prominence in the late 1980s and early 1990s. The American
Marketing Association (AMA) held the first workshop on “Ecological Marketing” in 1975. The proceedings
of this workshop resulted in one of the first books on green marketing entitled "Ecological Marketing".

The Corporate Social Responsibility (CSR) Reports started with the ice cream seller Ben & Jerry's where the
financial report was supplemented by a greater view on the company's environmental impact. In 1987 a
document prepared by the World Commission on Environment and Development defined sustainable
development as meeting “the needs of the present without compromising the ability of future generations to
meet their own need”, this became known as the Brundtland Report and was another step towards
widespread thinking on sustainability in everyday activity. Two tangible milestones for the first wave of
green marketing came in the form of published books: Green Marketing by Ken Peattie (1992) in the United
Kingdom and Green Marketing: Challenges & Opportunities for the New Marketing Age by Jacquelyn
Ottman (1993) in the United States of America.

According to Jacquelyn Ottman, (author of "The New Rules of Green Marketing: Strategies, Tools, and
Inspiration for Sustainable Branding" (Greenleaf Publishing and Berrett-Koehler Publishers, February
2011)) 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.

The "Green consumerism" movements in the U.S. and other countries have struggled to reach critical mass
and influence. However, public opinion polls taken since the late 1980s have shown consistently that a
significant percentage of consumers in the U.S. and elsewhere profess a strong willingness to favour
environmentally conscious products and companies. One of green marketing's challenges is the lack of
standards or public consensus about what constitutes "green" according to Joel Makower, a writer on green
marketing. This lack of consensus by consumers, marketers, activists, regulators, and influential people has
slowed the growth of green products, says Makower, because companies are often reluctant to promote their
green attributes, and consumers are often skeptical about claims.

Despite these challenges, green marketing has continued to gain adherents, particularly in light of growing
global concern about climate change. This concern has led more companies to advertise their commitment to
reduce their climate impacts, and the effect this is having on their products and services.
 WHY GREEN MARKETING IS IMPORTANT?

Green marketing is the act of not only living by environmentally-friendly policies and procedures, but letting
consumers know about it. Green marketing is important for a number of reasons, from eliminating
wastefulness to educating consumers about how a company is maintaining eco-friendly measures. Here are
some other objectives to consider when thinking about green marketing.

1. Avoiding waste: Whether it's creating biodegradable product packaging (meaning it can be broken down
by biological means), cutting down on water consumption, or reducing the amount of trash that goes into
landfills, green marketing is just as concerned with avoiding waste as putting forward an eco-friendly face to
the public.

2. Reinventing products: Products themselves can be modified to lessen the impact on the environment.
For example, Method sources its ingredients from many plant-derived ingredients, which means its safer for
humans, not toxic to family pets who might accidentally ingest it, and more environmentally-friendly by
being water-soluble and dispersing safely into the environment.
3. Making green while being green: Of course, companies that promote green products want to not only be
good stewards of planet Earth, but make a profit while doing so. Green marketing allows businesses to
capitalize on the subset of the population willing to pay a little more to lessen their footprint on the
environment and protect the atmosphere.

4. Changing processes: Consumers aren't the only ones that need to be concerned with environmental
impact. Green marketing also encourages businesses to properly utilize resources, such as water
consumption and electricity. Changing processes also means looking for renewable materials, using
alternative energy sources, and finding ways to deliver products in a more fuel-efficient manner.

5. Creating eco-friendly messaging: Green marketing's biggest ''marketing'' accomplishment might be in

messaging. Green marketing works to help consumers understand a product's green benefits and a
company's commitment to the environment. It's also an important avenue in which to educate people about
sustainability and the environment.

GREENHOUSE 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 Protocol’s 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 people’s lives and the environment.
 THE GREEN MARKETING MIX

A model green marketing mix contains four "P's":

 Product: A producer should offer ecological products which not only must not contaminate the
environment but should protect it and even liquidate existing environmental damages.
 Price: Prices for such products may be a little higher than conventional alternatives. But target
groups like for example LOHAS are willing to pay extra for green products.
 Place: A distribution logistics is of crucial importance; main focus is on ecological packaging.
Marketing local and seasonal products e.g. vegetables from regional farms is more easy to be
marketed “green” than products imported.
 Promotion: A communication with the market should put stress on environmental aspects, for
example that the company possesses a CP certificate or is ISO 14000 certified. This may be
publicized to improve a firm's image. Furthermore, the fact that a company spends expenditures on
environmental protection should be advertised. Third, sponsoring the natural environment is also
very important. And last but not least, ecological products will probably require special sales
promotions.
 IMPORTANCE

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.
Thus, the importance of green marketing can be explained under following points:
(a) Opportunities:
It appears that all types of consumers, both individual and industrial are becoming more concerned and
aware about the natural environment. In a 1992 study of 16 countries, more than 50% of consumers in each
country, other than Singapore, indicated they were concerned about the environment. Given these figures, it
can be assumed that firms marketing goods with environmental characteristics will have a 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.
McDonald’s replaced its clam shell packaging with waxed paper because of increased consumer concern
relating to polystyrene production and ozone depletion.
(b) 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.
Firms in this situation can take two perspectives:
(i) They can use the fact that they are environmentally responsible as a marketing tool or
(ii) They can become responsible without promoting this fact.
(c) Government Pressure:
As with all marketing-related activities, government’s wants to “protect” consumers and society; this
protection has significant green marketing implications.
Governmental regulations relating to environmental marketing are designed to protect consumers in
several ways:
(i) Reduce production of harmful goods or by-products;
(ii) Modify consumer and industry’s use and/or consumption of harmful goods; or
(iii) Ensure that all types of consumers have the ability to evaluate the environmental composition of goods.
(d) Competitive Pressure:
Another major force in the environmental marketing area has been firms’ desire to maintain their
competitive position. In many cases firms observe competitors promoting their environmental behaviors and
attempt to emulate this behavior. In some instances this competitive pressure has caused an entire industry to
modify and thus, reduce its detrimental environmental behavior.
(e) Cost or Profit Issue:
Firms may also use green marketing in an attempt to address cost or profit related issues. Disposing of
environmentally harmful by-products, are becoming increasingly costly and in some cases difficult.
Therefore, firms that can reduce harmful wastes may incur substantial cost savings. 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.

OPPORTUNITIES

Manufacturer may find this shifting to green marketing as a costly affair but it is just short term, in long run
this shift is advantageous and indispensible. Companies which are equipped with a better grasp of ecological
issues, have already shifted or are shifting to green marketing. A growing number of businessmen are now
appreciating the link between environmental responsibility and more efficient and profitable business
practices.
1. More Profits:
Today, major U.S. corporations regularly conduct environmental audits and ensure that they recycle the
waste material. Many other companies have upgraded their facilities which are fitted with energy-efficient
technology. Such energy and environment- friendly steps reduce operating costs of concerns and help in
boosting profits. Many companies, which operate in highly polluting environments such as chemical, oil and
electrical power generation have established management systems which make sure that their environment
profiles and products exceed consumer expectations thereby improving indirectly improving consumer
acceptability of their products.
These environmentally-friendly and sensitive changes that are made within the organizations also end up
enhancing employee morale and productivity with the final payoff in improved customer relations and
overall returns on investment.
Further, this enhanced corporate imagery can result in attracting healthy investors and top talent. Moreover,
production of eco-efficient products results in less wastage, less debris creation and also finally saves on
energy too.

2. Competitive Advantages:

Green marketing gives competitive edge to companies and many companies have already adopted this
method of marketing. For example, Eveready introduced reusable alkaline batteries and redefined the market
for rechargeable batteries. Philips Lighting, inventors of compact fluorescent lighting technology, stood
ready when business and electric power utilities proposed for replacements for energy-guzzling
incandescent.
Snickers when started their operation India they did not care to have a green marketing but within six
months they changed their marketing activities and started focusing in green marketing.
Increased Market Share:
With so many options available in the market for buyers, marketers are having tough time maintaining brand
loyalty. Brand loyalty is waning day by day and the number of customers who feel that some brands are
worth paying for are also decreasing. In such a competitive climate, customers are more inclined to buy
products that are environmentally compatible because customers are inclined to those products and packages
that can be recycled or safely disposed of without causing harm to the environment.
A marketer tried to persuade a customer to become a brand-loyal customer, on the other hand the customer
took no time to switch to another company. Switching to companies that are environmentally sound and
boycotting brand of companies with disappointing environmental track records is the order of the day.
As a result, market giants like Procter & Gamble and McDonalds go a great length to offer the greenest of
mainstream products and take pains to project themselves and their products as environmentally-friendly
and efficient.
For example,
if you happen to pick up a bottle of Tide laundry detergent, you will learn that it is phosphate-free, contains
biodegradable cleaning agents and is packaged in a recycled-content bottle. In case of McDonalds you can
see that they have basic brown paper carry bags and recycled napkins. Now, they are testing Earth Shell
compostable food wraps.
3. Personal Rewards:

More than obligation green marketing should be appreciated by companies. A company which by choice
chooses to be environmental friendly, customers and all other stakeholders respect that company. Coming up
with products that are in sync with nature lets companies to personally contribute to environmental
protection and cleanup and this in turn ensures a more secure and green future for the coming generation.
A mind that has been once attuned to a thought never goes back to its past. As a result, green marketers, who
are once acclimatized to green thoughts, will do their best to cultivate higher levels of customer satisfaction
and reward.
The end result is the prospect of healthier, more fulfilled lives, and the power to make the world a better
place to live in. In turn, these green promises personal and professional rewards for the green marketers.

FUNDAMENTAL REQURIMENTS

It is obvious that we cannot have an effective green market unless and until we have a truly competitive
market in general.
This will require all of the following:

1. Low Entry Barriers:

The electricity industry has naturally high entry barriers because of its inherent capital-intensity, the long
lead-time that is required for new projects, the associated permission difficulties, and so forth. That is, there
is no easy exit and entry to begin with in this market. So, every effort must be made to keep entry barriers as
low as possible. For starters, this means that there need to be a large number of competitors in every local
market to curb market power.
But, with every merger that is approved, we will see less competition, not more. We must also have fair
transmission access rules, truly independent system operators, and all the rest. It remains to be seen whether
we will have a truly competitive market anytime soon.
This is particularly important to renewable energy because, if markets are competitive, we can expect to see
entrepreneurs trying to break into the market using the environment, and renewable, as a marketing hook.
But if entry is blocked, consumers will never even be presented with real choices.

2. Good Information:
A fundamental precondition to an efficient market is that consumers must have complete information about
the choices that are available to them. To encourage a market in “green,” consumer must have information
that is good enough to allow them to comparison shop among suppliers on the basis of their costs and the
environmental characteristics of their resource portfolio. This necessarily requires disclosure of fuel sources
and emissions, not just for those claiming “greenness” but also for all suppliers.
Without uniform disclosure requirements, the burden will fall on green marketers to investigate their
competitors’ portfolios and educate consumers about them. This is a difficult and expensive task and, even if
undertaken, consumers may not trust marketers’ claims.
Of those eligible to participate in the New Hampshire pilot programme, for example, 33% of consumers who
did not switch suppliers cited confusing or deceptive advertising as the reason. Verifying marketers’ claims
will be a task too formidable for most environmental groups, especially local ones, and many will be
unwilling to spend their limited resources for this purpose.
So, without uniform disclosure requirements, consumers may have no reliable source of information that
gives them confidence in marketers’ claims and the green market in general. If consumers are mistrustful of
green claims, then the green market will be undermined.
We have seen tremendous controversy over claims that have been made, and how that can infuse the green
market with suspicion. Any green marketer that has a worthy green product has an interest in disclosure
requirements, because that is what will give legitimacy and value to its product.

3. Corrected Market Failures:

A market in which renewable gets no credit for their public benefits (such as environmental, energy security,
and fuel price stability benefits) is one that will seriously hinder the development of renewable. Even
perfectly competitive markets only work well when consumers receive the benefits of the goods they pay
for. They do not work well when the benefits go to people that aren’t paying for them.
This is the classic public goods problem that underlies virtually every environmental law in the country,
even in markets with relatively low entry barriers. While there will be some people perhaps an appreciable
number who will be altruistic enough to pay more to make everyone else’s air cleaner, it is no more realistic
to expect green marketing to substitute for renewable energy policy than it is to expect green marketing to
substitute for the Clean Air Act, even though, if all consumers acted according to their values, that would be
true.
That’s not doom saying the green market. It is just recognition of economic reality in particular, the “free
rider” effect.
 GREEN ASPECTS IN SERVICES

FINANCIAL SERVICES

 Use of electronic printing media.

 Use of technology to cut short the usage of paper.

 High accessibility rate to reduce the mile coverage by the users and the executives.

 Use of air conditioners with high star-rating and CFL lighting to reduce power consumption.

 Green planting spread within the working space.

TRANSPORTATION SERVICES

 Wide spread public transport system.

 Heavy investment to avoid use of diesel.

 Using recyclable products.

 Electric vehicles for rent.

MEDICAL SERVICES

 Donation camps.

 Rural areas visits.

 Free check-up.

 Free medication.

 Integration of all services under one roof.

 Paper covers instead of plastic.

EDUCATIONAL INSTITUTIONS

 Use of electronic media to avoid paper and other stationary

  Make students participate in social welfare activities

 Maintain greenery in the campus

 Discourage the use of personal vehicles

 Use power efficient equipment

PRODUCT DEVELOPMENT ISSUES

1. Raw Materials Acquisition and Processing:

 Conservation of natural resources like water, land, and air
 Protection of natural habitats and endangered species
 Waste minimization and pollution prevention, especially the use and release of toxins
 Transportation
 Use of renewable resources: sustainable use to resources
 Use of recycled materials
 vii. Energy consumption
2. Manufacturing and Distribution Issues:
 Minimal use of materials
 Toxic use/release
 By-product/waste generation and handling
 Energy consumption
 Water use
 Emissions to air, land, and water
3. Product Use and Packaging Issues:
 Energy efficiency
 Conservation to natural resources such as water required for the use of the product
 Consumer health and environmental safety
4. After-Use/Disposal Issues:
 Recyclability; ease of reuse, remanufacture and repair
 Durability
 Biodegradability/combustibility
 Safety when incinerated or land filled.
5. Ideas for Action:
Use the following checklist to explore the myriad opportunities for refining existing products or developing
new ones that meet environmental imperatives and satisfy consumers’ primary demands.
6. Raw Material Procurement:
 Can we minimize the potential for our raw-materials procurement process to avoid tropical
deforestation? Land stripping? Oil spills?
 Can we use renewable resources or resources that are sustainably managed?
7. Manufacturing:
 What steps can we take to prevent or otherwise reduce the production of solid and hazardous waste
in our manufacturing processes?
 How can we reduce our use of water, emissions into the air and waterways?
8. After Use:
 Can we redesign our products to make them more energy- or resource-efficient and thereby reduce
operating costs?
 Can we make our products safer or more pleasant to use?
 iii. Can we use alternative ingredients that help to minimize risks to health and the environment?
9. After-Use Recovery and Disposal:
 Can we design our products to be durable? Refillable? Reusable? Repairable? Re-manufacturable?
Rechargeable?
 Can we redesign our products or packages to reduce the need for land filling?
 Can we make our products and packaging safer to landfill or incinerate?
 Can we use materials and ingredients that are inherently biodegradable or compostable?

ADVANTAGES OF GREEN MARKETING

Today’s consumers are becoming more and more conscious about the environment and are also becoming
socially responsible. Therefore, more companies are responsible to consumers’ aspirations for
environmentally less damaging or neutral products. Many companies want to have an early mover advantage
as they have to eventually move towards becoming green.
Some of the advantages of green marketing are:
 It ensures sustained long term growth along with profitability.
 It saves money in the long run, though initially the cost is more.
 It helps the companies market their products and services keeping the environment aspects in mind.
It helps in accessing the new markets and enjoying the competitive advantage.
  Most of the employees also feel proud and responsible to be working for an environmentally
responsible company.

DISADVANTAGES OF GREEN MARKETING

No matter why a firm uses green marketing there are a number of potential problems that they must
overcome. One of the main problems is that firms using green marketing must ensure that their activities are
not misleading to consumers or industry, and do not breach any of the regulations or laws dealing with
environmental marketing. For example marketers in the US must ensure their green marketing claims can
meet the following set of criteria, in order to comply with the FTC’s guidelines.
Green marketing claims must
 Clearly state environmental benefits;
 Explain environmental characteristics;
 Explain how benefits are achieved;
 Ensure comparative differences are justified;
 Ensure negative factors are taken into consideration;

STRATEGIES OF GREEN MARKETING

1) Focus on LOHAS Consumers

In the world of marketing there is already a new acronym for consumers interested in green marketing:
LOHAS (Lifestyle of Health And Sustainability).This is a rapidly growing market, made up of
people whose sense of environmental and social responsibility influences their purchasing decisions.  This
audience not only demands green marketing from brands, but also has the ability to influence other users
with their values.
2) Communicate Action

Concern for the environment has been around since the 1990s. At that time, the ozone layer and acid rain
were the hot topics, while now we are concerned about climate change. In any case, consumers have
become aware that the health of the planet must be a priority and a long-term change has taken place.
This means brands must also be concerned, actionable, and communicate the direct steps they’re taking
to do their part.

3) Product Origin

Consumers have begun to question the origin of the products they consume and to reject products or
ingredients associated with ecological disasters, such as palm oil. As a result, there has been a boom in
fair trade initiatives. As a brand, take care and pride in the ingredients you use. Highlight the good
choices your brand has decided to take and show how they align with the consumer’s concern.  

 Consumers are also interested in recycled or reused products, as they are perceived as more sustainable.
This is also another avenue brands can explore, especially when it come to packaging and development.

4) Use Sustainable Packaging

The excessive use of plastics is a topic that is very much on the minds of consumers, as demonstrated by
initiatives such as Plastics-Free Week.

For years, brand packaging has favored convenience and individual presentations, but now this type of

packaging is perceived as excessive waste. A strong green marketing tactic is to invest in sustainable

packaging, such as recycled or no-plastic packaging. This technique can take many forms, including

using minimum amounts of packaging, using recyclable or reusable materials or even selling products in

bulk.

5) Consistency and responsibility

As we said before, green marketing is not a fad but a profound change. The best way to communicate

your brand is green to truly be green. Consumers are more informed than ever and they reject brands that

target superficial initiatives to give a green image, but still have practices that are harmful to the

environment. In short, green marketing is a trend that is here to stay and forces us to rethink our business

in terms of ecological and social responsibility.

 CONCLUSION

Green marketing covers more than a firm and now this is the right time to choose “Green Marketing”
globally. It will come with strong change in the world of business if all nations will make harsh roles
because green marketing is necessary to save world from pollution. From the business point of view because
a intelligent marketer is one who not only convinces the consumer, but also involves the consumer in
marketing his product. Green marketing should not be measured as just one more approach to marketing, but
has to be pursued with much better energy, as it has an environmental and social measurement to it. With the
danger of global warming looming large, it is very important that green marketing becomes the norm rather
than an exemption or just a fashion. Recycling of paper, metals, plastics, etc., in a safe and environmentally
harmless way should become much more systematized and total. It has to become the general norm to use
energy-efficient lamps and other electrical goods. Marketers also have the responsibility to make the
consumers understand the need for and remuneration of green products as compared to non-green ones. In
green marketing, consumers are ready to pay more to maintain a cleaner and greener environment. Finally,
consumers, industrial buyers and suppliers need to force effects on minimize the unconstructive effects on
the environment friendly. Green marketing assumes even more importance and significance in developing
countries like India.

 Green marketing should not neglect the economic aspect of marketing.

 Green marketing is still in its infancy and a lot of research is to be done on green marketing to fully
explore its potential.
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