Scct3233-Assignment 4
Scct3233-Assignment 4
Scct3233-Assignment 4
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
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.
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. Fabien Durif, Caroline Boivin, Charles Julien (15 April 2010). In search of a green product definition.
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
https://www.researchgate.net/publication/282238111_Matrix_Model_for_Choosing_Green_Marketing
_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
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