SEMINAR REPORT

ON
PRIVATISATION OF EDUCATION
IN PARTIAL FULFILLMENT OF
MASTER OF BUSINESS ADMINISTRATION
(1ST SEMESTER)
2009

SUBMITTED TO: SUBMITTED BY:

MR. LALIT WADHWA SONIA RANI
Lect. in. MBA. Dept. Roll no. 3609853

DEPARTMENT OF BUSINESS MANAGEMENT

GEETA INSTITUTE OF MANAGEMENT AND TECHNOLOGY,
KANIPLA, KURUKSHETRA.
 ACKNOWLEDGEMENT

I would like to use this opportunity to express my gratitude to all those

whose contribution in this project can never be forgotten.
I express my sincere gratitude to Dr. Pooja Malhotra H.O.D $ Mr. Lalit
Wadhwa Lec. Of MBA Deptt., GIMT for his valuable of guidance help and
encouragement bestowed upon me in preparing this report.
I also express my deep sense gratitude to Mr. Lalit Wadhwa Lec. of
Management GIMT for his overall guidance in my effort.
Last but not the least I owe a lot of thanks to my seniors, friends and well
wishes who have directly or indirectly help me in completing this report.

Sonia Rani
3609856
 CONTENTS

Chapter Topic Page No.

1. Introduction 1

2. Objectives of the study 4

3. Green Marketing Mix 5

4. Challenges And Cases of Green Marketing 7

5. Green Marketing in Existence 8

6. Legislation and Anticipation in issues 9

7. Benefits of green marketing 10

8. Conclusion and Suggestion 11

 INTRODUCTION

GREEN MARKETING
As society becomes more concerned with the natural environment, businesses have begun
to modify their behavior in an attempt to address society’s “new” concerns. As a result,
new “green” products were introduced that were less damaging to the environment. Some
businesses have been quick to accept concepts like environmental management systems
and waste minimization, and have integrated environmental issues into all organizational
activities. 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 disseminate research relating to business’ environmental
behavior.

Terms like “Green Marketing” and “Environmental Marketing” appear frequently in the
popular press. Many governments around the world have become so concerned about
green marketing activities that they have attempted to regulate them. But however, people
believe that green marketing refers solely to the promotion or advertising of products
with environmental characteristics. Generally terms like Phosphate Free, Recyclable,
Refillable, Ozone Friendly, and Environmentally Friendly are some of the things
consumers most often associate with green marketing. In general green marketing is a
much broader concept, one that can be applied to consumer goods, industrial goods and
even services.

Divergent aspects of green marketing include ecologically safer products, recyclable and
biodegradable packaging, energy-efficient operations, and better pollution controls.
Advances produced from green marketing include packaging made from recycled paper,
phosphate-free detergents, refillable containers for cleaning products, and bottles using
less plastic.

For example, around the world there are resorts that are beginning to promote themselves
as “ecotourism” facilities, i.e., facilities that specialize in experiencing nature or
operating in a fashion that minimizes their environmental impact .Thus green marketing
incorporates a broad range of activities, including product modification, changes to the
production process, packaging changes, as well as modifying advertising.

Clearly, today’s consumers have become more conscious of the natural environment,
businesses are beginning to modify their own thoughts and behavior in an attempt to
address the concerns of consumers. Green marketing is becoming more important to
businesses because of the consumer’s genuine concerns about our limited resources on
the earth. By implementing green marketing measures to save the earth’s resources in
production, packaging, and operations, businesses are showing consumers they too share
the same concerns, boosting their credibility.
Definition
What is green marketing?
Pride and Ferrell (1993) Green marketing, also alternatively known as environmental
marketing and sustainable marketing, refers to an organizations 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 exchanges 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 green consumer as one who avoids products that are likely to
endanger the health of the consumer or others; cause significant damage to the
environment during manufacture, use or disposal; consume a disproportionate amount of
energy; cause unnecessary waste; use materials derived from threatened species or
environments; involve unnecessary use of, or cruelty to animals ;adversely affect other
countries.

The terminology used in this area has varied, it includes: Green Marketing,
Environmental Marketing and Ecological Marketing. While green marketing came into
prominence in the late 1980s and early 1990s, it was first discussed much earlier. 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”. Green marketing is defined as
“Green or Environmental Marketing consists of all activities designed to generate and
facilitate any exchanges 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.”

This definition incorporates much of the traditional components of the marketing

definition, that is “All activities designed to generate and facilitate any exchanges
intended to satisfy human needs or wants” Therefore it ensures that the interests of the
organization and all its consumers are protected, as voluntary exchange will not take
place unless both the buyer and seller mutually benefit.

The above definition also includes the protection of the natural environment, by
attempting to minimize the detrimental impact this exchange has on the environment.
This second point is important, for human consumption by its very nature is destructive
to the natural environment. So green marketing should look at minimizing environmental
harm, not necessarily eliminating it.

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
 Objectives Of The Study
• To ensure that the green marketing persists.

• To identify the Opportunities or competitive advantage of company

• To ensure that companies are following its Corporate social responsibilities

(CSR).

• To ensure that companies are maintaining a balance between business and

environment.

• To make people aware abut the benefits of green products and its uses in
society.

• To know about customer satisfaction level which is providing by companies.

 GREEN MARKETING MIX

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

Product
The ecological objectives in planning products are to reduce resource consumption and
pollution and to increase conservation of scarce resources (Keller man,1978),

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
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: -
I. Ads that address a relationship between a product/service and THE Biophysical
environment.

II. Those that promote a green lifestyle by highlighting a product or service.

III. Ads that present a corporate image of environmental responsibility.

 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

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

Some Cases

• McDonald'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.

• Badarpur Thermal Power station of NTPC in Delhi is devising ways to utilize

coal-ash that has been a major source of air and water pollution.

• Barauni refinery of IOC is taken steps for restricting air and water pollutants.
GREEN MARKETING – AN INNOVATIVE PRACTICE IN
EXISTENCE
As with all marketing related activities, governments want 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,

1) Reduce production of harmful goods or by-products;

2) Modify consumer and industry's use and/or consumption of harmful goods; or

3) Ensure that all types of consumers have the ability to evaluate the environmental
composition of goods.

Governments establish regulations designed to control the amount of hazardous wastes

produced by firms. Many by-products of production are controlled through the issuing of
various environmental licenses, thus modifying organizational behavior. In some cases
governments try to "induce" final consumers to become more responsible. For example,
some governments have introduced voluntary curb-side recycling programs, making it
easier for consumers to act responsibly. In other cases governments tax individuals who
act in an irresponsible fashion. For example in Australia there is a higher gas tax
associated with leaded petrol. (Smithe, 1998)

Porter and Van (1995) find that 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. 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.

Green Marketing Legislation and Antitrust issues

• Multinational corporations also laws on environmental issues such as

industrial pollution, hazardous waste disposal, and rampant deforestation

• Green marketing laws focus on environmentally friendly products and on

product packaging and its effect on solid waste management

• Germany has passed the most stringent green marketing laws that regulate the
management and recycling of packaging waste

• The European Community, Japan, and many other countries have begun to
actively enforce their antitrust laws patterned after those in the United States

• Antimonopoly, price discrimination, supply restrictions, and full-line forcing

are areas which lead to less competition and higher prices for consumers

• Avoid using terms like ‘safe’ and ‘friendly’ and unqualified pictures or
graphics. At best they are unhelpful and encourage skepticism; at worst they
are misleading.

• Spell out exactly what is beneficial about a product in plain language that
consumers can understand
• Explain how a product’s characteristic is beneficial to the environment. For
example, explain that a phosphate-free product is less damaging in river
systems because phosphate promotes algal growth, which can clog up rivers.

• Avoid giving the impression that your product is completely environmentally

benign if it is not.

• Use the claim only in an appropriate context or setting. For example, do not
claim that a product is not tested on animals if it is a product that would never
be tested on animals anyway
 Benefits Of Green Marketing

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.
When looking through the literature there are several suggested reasons for firms
increased use of Green Marketing. Five possible reasons are as follows:

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. Governmental bodies are forcing firms to become more
responsible.

3. Competitors' environmental activities pressure firms to change their

environmental marketing activities.

4. Cost factors associated with waste disposal, or reductions in material

usage forces firms to modify their behavior.
 Conclusion

In general, green marketing still has a long road to travel in both research and practice.
The social desirability of effective persuasion techniques fostering widespread
environmentally responsible behavior is unquestionable. Green purchasing is central to
this societal transformation. Probably on of the most critical issues in green marketing is
the reduced individual benefit perceived by most consumers. Thus, the challenge for
green marketers has so far been to increase the perception of individual benefits by
adding emotional value to green brands, and will be even more so in the future. Future
green marketing research should extend its analysis to the motivational basis of
environmental behavior.
In the face of these difficulties, it is perhaps unsurprising that much of what has happened
under the banner of “green marketing” has had relatively little to do with either marketing
or the environment. Green marketing should therefore not be written off as a prophecy
unfulfilled, but recognised as one whose time has not yet come. Perhaps the answer to
making more substantive progress towards sustainability does not lie with marketers at
all, since the market’s current flaws make it incapable of delivering sustainability alone.
The market needs to operate within a society in which sustainability is more than adopted
as a public policy goal, but is actively pursued through policy implementation in terms of
taxation, education, industrial policy, and public spending and investments. Whilst the
early predictions for growth in the green market may now look a little overstated, the
predictions for growing environmental problems have not. The longer we take to address
the issue, and to make progress towards more sustainable marketing, the greater the
disruption and effort will be. The sooner substantive progress is made, the more likely the
story will be to have a happy ending.
Ultimately green marketing requires that consumers want a cleaner environment and are
willing to “pay” for it, possibly through higher priced goods, modified individual
lifestyles, or even governmental intervention. Until this occurs it will be difficult for
firms alone to lead the green marketing revolution.
Having said this, it must not be forgotten that the industrial buyer also has the ability to
pressure suppliers to modify their activities. Thus an environmental committed
organization may not only produce goods that have reduced their detrimental impact on
the environment, they may also be able to pressure their suppliers to behave in a more
environmentally “responsible” fashion. Final consumers and industrial buyers also have
the ability to pressure organizations to integrate the environment into their corporate
culture and thus ensure all organizations minimize the detrimental environmental impact
of their activities.
Green marketing should not neglect the economic aspect of marketing. Marketers need to
understand the implications of green marketing.
market for sustainable and socially responsible products and services.
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 research is to be done on green
marketing to fully explore its potential.

Suggestions
References

Chopra, S. Lakshmi (2007), "Turning Over a New Leaf", Indian Management, Vol-
64, April-2007

Ottman, J.A. et al, "Avoiding Green Marketing Myopia", Environment, Vol-48,

June-2006

www.greenmarketing.net/stratergic.html

www.epa.qld.gov.au/sustainable_ industries
www.wmin.ac.uk/marketing research/marketing/greenmix.html