GREEN MARKETING a new dimension By Manoj Gupta

GREEN MARKETING a new dimension…. . By: - Manoj Gupta

Emergence of concept of Green Marketing The green marketing has evolved over a period of time. According to Peattie (2001), the evolution of green marketing has three phases. First phase was termed as "Ecological" green marketing, and during this period all marketing activities were concerned to help environment problems and provide remedies for environmental problems. Second phase was "Environmental" green marketing and the focus shifted on clean technology that involved designing of innovative new products, which take care of pollution and waste issues. Third phase was "Sustainable" green marketing. It came into prominence in the late 1990 s and early 2000.

Meaning of Green Marketing is a golden goose. As per Mr. J. Polonsky, 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.

Definition According to the American Marketing Association, green marketing is the marketing of products that are presumed to be environmentally safe. green marketing can be defined as, "All activities designed to generate and facilitate any exchange intended to satisfy human needs or wants such that satisfying of these needs and wants occur with minimal detrimental input on the environment. "

Need of Green Marketing? • As resources are limited and human wants are unlimited, it is important for the marketers to utilize the resources efficiently without waste as well as to achieve the organization's objective. So green marketing is inevitable. • There is growing interest among the consumers all over the world regarding protection of environment. Worldwide evidence indicates people are concerned about the environment and are changing their behavior. As a result of this, green marketing has emerged which speaks for growing market for sustainable and socially responsible products and services.

Opportunity in India In India, around 25% of the consumers prefer environmental-friendly products, and around 28% may be considered healthy conscious. There fore, green marketers have diverse and fairly sizeable segments. In India, the green building movement, spearheaded by the Confederation of Indian industry (CII) - Godrej Green business Center, has gained tremendous impetus over the last few years. From 20, 000 sq ft in 2003, India's green building footprint is now over 25 million sq ft in 2009.

Addoptation of Green Marketing Commentators have suggested a number of reasons why companies are increasingly considering green marketing: • • • Opportunities and corporate objectives. Corporate social responsibilities (CSR) Government regulations Competitive advantage Cost and Profit factors

Green Marketing as cytalist of success • Companies that develop new and improved products and services with environment inputs in mind give themselves access to new markets, increase their profit sustainability, and enjoy a competitive advantage over the companies which are not concerned for the environment.

Marketing Mix Startegy Every company has its own favorite marketing mix. Some have 4 P's and some have 7 P's of marketing mix. The 4 P's of green marketing are that of a conventional marketing but the challenge before marketers is to use 4 P's in an innovative manner. • • Product Price Place Promotion

Product • Product should be mad in such a way that it can help the customer who like environment friendly products. It can be made from recycle materails or from used things. The ecological objectives in planning products are to reduce resource consumption and pollution and to increase conservation of scarce resources. Ex Toyota Pirius hybrid car.

Price • Price is a critical and important factor of green marketing mix. Most consumers will only be prepared to pay additional value if there is a perception of extra product value. This value may be improved performance, function, design, visual appeal, or taste. Green marketing should take all these facts into consideration while charging a premium price.

Place Green place is about managing logistics to cut down on transportation emissions, thereby in effect aiming at reducing the carbon footprint. The choice of where and when to make a product available will have significant impact on the customers. Very few customers will go out of their way to buy green products.

Promotion There are three types of green advertising: - • Ads that address a relationship between a product/service and the biophysical environment • Those that promote a green lifestyle by highlighting a product or service • Ads that present a corporate image of environmental responsibility

Promotion cont. . • Efficiency and cost effectiveness • Health and safety • Symbolism • Convenience

Strategies • The marketing strategies for green marketing include: • Marketing Audit (including internal and external situation analysis) • Develop a marketing plan outlining strategies with regard to 4 P's • Implement marketing strategies • Plan results evaluation • Work on some national or international certification/standard

Challenges Ahead • Green products require renewable and recyclable material, which is costly • Requires a technology, which requires huge investment in R & D • Water treatment technology, which is too costly • Majority of the people are not aware of green products and their uses • Majority of the consumers are not willing to pay a premium for green products

Consumer mind sets. .

Essational for green marketing • • • Do Your Own Research Being genuine and Sincerity is a Must Educating your customers Giving your customers an opportunity to participate Attach Your “Green” Label to Superior Products Only • Refocusing and Rebranding Your Product-line or Services into the Environmental Sector • Assessing Your Competitors’ Stance

Some examples of Green marketing • Toyota cars, the better for the planet. By informing consumers about the benefits of driving "green, clean and lean" eco-cars, Toyota seeks to raise awareness among the general public. . . • Mc. Donald's restaurant's napkins, bags are made of recycled paper. • Coca-Cola pumped syrup directly from tank instead of plastic which saved 68 million pound/year. • Barauni refinery of IOC is taken steps for restricting air and water pollutants

Example cont. . • According to a survey conducted by BT-AC Nielsen ORG-MARG, in 2009. Oil and petroleum sector is considered the greenest sector in India. ONGC is the greenest company followed by Reliance Industries. • India is a world leader in green IT potential. According to Global enterprise survey Indian respondents scored over respondents from 10 other countries in expecting to pay 5% or more for green technology if its benefits for the environment and return on investment (ROI) is proven. • Nokia's environmental welfare work is based on life cycle thinking. Recycling, treatment of waste, and recovery of used materials.

Example Cont. . TATA GROUP OF COMPANIES • One of the most interesting innovations has come in the form of a biogas-based power plant at Taj Green Cove in Kovalam, which uses the waste generated at the hotel to meet its cooking requirements. • Another eco-friendly consumer product that is in the works is Indica EV, an electric car that will run on polymer lithium ion batteries. Tata Motors plans to introduce the Indica EV in select European markets this year. • Tata Power has said that of the total power it would generate in the next 10 years, 25% would be from renewable energy sources.

Conclusion Green marketing should not neglect the economic aspect of marketing. Marketers need to understand the implications of green marketing. If you think customers are not concerned about environmental issues or will not pay a premium for products that are more eco-responsible, think again. You must find an opportunity to enhance you product's performance and strengthen your customer's loyalty and command a higher price. Green marketing is still in its infancy and a lot of Market research is to be done on green marketing to fully explore its potential.

• Thanks…. . Green Code • • • Thanks…………… G eneralisz with care R emeber E xplore E nsure N eturaliy is important