GREEN MARKETING A WAY TO SUSTAINABLE

DEVELOPMENT
B.NANDINI
B-Tech, MBA, JNTUHCEH

ABSTRACT
Green marketing offers business bottom line incentives and top line growth possibilities. While
modification of business or production processes may involve start-up costs, it will save money in the
long term. Sustainable development is one of the most serious and crucial issues of countries all
across the globe. Green marketing is one important concept which marketers are using these days as
a key strategy for sustainable development.

Sustainable marketing refers to the way of marketing which incorporates needs of the customer, the
organisation and the society in general over a long term. It means designing and marketing products
that can be used universally by all the consumers across the world over extended periods, without
causing harm to either the consumers or the environment. This paper explains the way for achieving
sustainable development though green marketing.

Keywords: Green marketing, Sustainable development, products, environment

INTRODUCTION

Sustainability is emerging as a market driver with the potential to grow profits and present
opportunities for value creation a dramatic evolution from its traditional focus on efficiency,
cost, and supply chain risk. Marketing is both a discipline and a set of practices to appeal to
consumers and entails the operations organized around a product or service, from concept to
sales and through the design, price setting, promotion and availability.

Green marketing subsumes greening products as well as greening firms. In addition to

manipulating the 4Ps (product, price, place and promotion) of the traditional marketing mix,
it requires a careful understanding of public policy processes. Sustainability represents an
important consumer need, and is now an integral aspect of product quality. Green is no longer
simply a market position. Products need to be green. Brands need to be socially responsible
period.

GREEN MARKETING

The term “green marketing” first surfaced in the late 1980s as an extension of what the
American Marketing Association referred to in 1975 as “ecological marketing”.

Pride and Ferrell (1993) Green marketing, also alternatively known as environmental
marketing and sustainable marketing, refers to an organization's efforts at designing,
promoting, pricing and distributing products that will not harm the environment.

anveshanaindia@gmail.com, www.anveshanaindia.com

20
 There is no single definition accepted universally, but in 1994 Polonsky stated: “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.” The United
Nations Environment Programme defines it as “a marketing which encompasses all
communication operations undertaken to promote a product on the basis of its environmental
properties or of its social qualities. It is about selling products on an ethical platform.”

Green marketing refers to the process of selling products and/or services based on their
environmental benefits. Such a product or service may be environmentally friendly in it or
produced and/or packaged in an environmentally friendly way. The distinctive features of
green marketing are its commercial dimension coupled with the reference to the values of
consumers who want to act in an environmentally conscious and socially responsible manner
with the purchases they make.

As per Brundtland Commission (1987), ―Development that meets the needs of the present
without compromising the ability of future generations to meet their own needs.

IMPORTANCE OF GREEN MARKETING

Green marketing offers business bottom line incentives and top line growth possibilities.
While modification of business or production processes may involve start-up costs, it will
save money in the long term. For example the cost of installing solar energy is an investment
in future energy cost savings. When looking through the literature there are several suggested
reasons for firms increased use of Green Marketing. Five possible reasons are as follows:

1. An organization perceives 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 behaviour.

GOLDEN RULES FOR GREEN MARKETING

1. Green is main stream: Not too long ago, just a small group of deep green consumers
existed.
2. Green is cool: Once a faddish preoccupation of the fringe, green is not only mains tream,
it‟s chic. In fact, green consumers are early adopters and leaders who influence

anveshanaindia@gmail.com, www.anveshanaindia.com

21
 purchasing behaviour. Celebrities and other cool types generally are espousing green
causes.
3. Greener products work equally or better and are often worth a premium price:
Thanks to advances in technology, we‟ve come a long way since the days when greener
products gathered dust on health food store shelves because they didn‟t work as well and
were not a good value. Organics, hybrid cars, and safer cleaning products now command
a price premium.
4. Green inspires innovative products and services that can result in better consumer
value, enhanced brands, and a stronger company: Savvy managers no longer consider
the environment to be a burden that represents added cost and overhead – but an
investment that can pay back handsomely.
5. The greenest products represent new concepts with business models with
significantly less impact: If we simply keep greening up the same old “brown” products
we‟ve been using forever, we‟re never going to get to sustainability. With time running
out, we‟ve got to “leap” to service replacements for products, and adopt entirely new
ways of doing business. Consumers don‟t necessarily need to own products; services can
meet their needs, perhaps even better.
6. Keep it simple: Plato was an environmentalist: “Simplicity is elegance.” Today‟s
consumers are cutting out the needless purchases, and getting rid of the gadgets and
gizmos that don‟t add value to their lives.
7. Green consumers don’t expect perfection: Just like there‟s no more whitest whites,
there‟s no greenest of the green. Consumers expect that you‟ll set high goals (i.e., perform
beyond mere compliance), keep improving, and report on progress.
8. Environmentalists are no longer the enemy: Recognizing the power of the marketplace
to effect change, many environmental advocates willingly partner with industry, offering
useful guidance and expertise.

GREEN MARKETING STRATEGIES

As consumers become more environmentally conscious, businesses must adapt a green

strategy. Small businesses seeking to leverage the power of "going green" should carefully
coordinate genuine actions and marketing strategies.

1. Successful Market Segmentation and Concentration on Selected Market Segment A

company needs to focus on the market comprising of the green consumers. The company
can run advertisement for its products in green focussed media. It can also innovate of a
new green product along with its existing products. Further, it can altogether launch a
new strategic business unit aimed at green.
2. Developing a New Generation of Green Product Insufficient production processes and
poor designing of products can be very harmful for the environment that is why the
companies should consider possible negative effects on the environment and minimize
them at the beginning of New Product Development.

anveshanaindia@gmail.com, www.anveshanaindia.com

22
3. Green Positioning Companies interested in positioning themselves as green should make
sure that all the activities that it is involved in supports its projected image, so as not to
cheat the consumers as well the media.
4. Applying Green Promotion Successful promotion depends on choosing the right
strategy and media for promotion of green products. Any kind of green promotion
becomes neutral unless it supported by corresponding corporate activities.
5. Green Packaging A business that manufactures and packages products can convert to
eco-friendly packaging. Converting to biodegradable packaging provides customers with
a visible symbol of the company's commitment to "going green". The business can also
leverage the eco-friendly packaging as part of its advertising program to help draw in new
environmentally conscious customers.
6. Deciding about Green Prices Consumers today are willing to pay only a small premium
or no premium at all for the green products. Pricing may become a cause of concern when
it comes to selling the product in the market, as its manufacturing may be expensive due
to new technology involved. It therefore becomes the responsibility of the manufacturer
to decide upon the pricing of the product.
7. Applying "Green" Logistics Distribution of goods can also be designed such that they
leave minimum impact on the environment. Mere reduction in packaging and wrapping
can contribute to a large extent in reducing the waste and saving paper. Efficient
inventory management can also contribute in minimizing wastage in a big way.
8. Changing the Attitude towards Waste generated always does not necessarily have to
be an unhelpful result of production processes. A newer understanding of the idea of
waste has given birth to a new market of recycled products. Also it may be so that which
is deemed waste for a company may be a raw material for another.

Some of the other successful strategies of Green Marketing are as follows: Show
potential customers that the company follow green business practices and could reap more
green on bottom line. For green marketing to be effective, company have use following
strategies too.

1. Being genuine: The companies are actually doing what the business claim to be doing in
the green marketing campaign and the rest of business policies are consistent with
whatever the company is doing that„s environmentally friendly. Both these conditions
have to be met for the business to establish the kind of environmental credentials that will
allow a green marketing campaign to succeed.
2. Educate your customers: It is not just a matter of telling people about to know whatever
the companies are doing to protect the environment but also a matter of telling them to
know why it matters and its importance.
3. Give your customers an opportunity to participate: Personalizing the benefits of
environmentally friendly actions, normally through letting the customer take part in
positive environmental action.

anveshanaindia@gmail.com, www.anveshanaindia.com

23
4. Know your customer: To sell a greener product to consumers, first the company need to
make sure that the consumer is aware of and concerned about the issues that its product
attempts to address.
5. Empower consumers: Make sure that consumers feel, by themselves or in concert with
all the other users of the company„s product, that they can make a difference. This is
called empowerment‖ and it„s the main reason why consumers buy greener products.
6. Be transparent: Consumers must believe in the legitimacy of the product and the
specific claims the companies are making. Hence complete information need to be
disclosed to make environmentally friendly economy.

Green Marketing Mix: Every company has its own favourite 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.

1. Product: The ecological objectives in planning products are to reduce resource

consumption and pollution and to increase conservation of scarce resources.
2. 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.
3. 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.
4. 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.

Strategies: The marketing strategies for green marketing include: - 1. Market Auditing
(including internal and external situation analysis). 2. Develop a marketing plan outlining
strategies with regard to 4 P‟s · 3. Implement marketing strategies. 4. Plan results evaluation

GREEN MARKETING – ADOPTS BY THE FARMS

Green marketing has been widely adopted by the firms worldwide and the following are the
possible reasons cited for this wide adoption:

1. Opportunities - As demand changes, many firms see these changes as an opportunity to

exploit and have a competitive advantage over firms marketing non environmentally
responsible alternatives. Some examples of firms who have strived to become more
environmentally responsible, in an attempt to better satisfy their consumer needs.

anveshanaindia@gmail.com, www.anveshanaindia.com

24
2. Government Pressure - As with all marketing related activities, governments want to
"protect" consumer and society; this protection has significant green marketing
implications. Government regulations relating to environmental marketing are designed
to protect consumers in several ways, 1. Reduce production of harmful goods or by-
products Modify consumer and industry's use and/or consumption of harmful goods 2.
Ensure that all types of consumers have the ability to evaluate the environmental
composition of goods. Government establish regulations designed to control the amount
of hazardous wastes produced by firms.

3. 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 behaviours and attempt to emulate this
behaviour. In some instances this competitive pressure has caused an entire industry to
modify and thus reduce its detrimental environmental behaviour.

4. 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. There are examples of firms adopting both strategies.

THE FUTURE OF GREEN MARKETING

There are many lessons to be learned to be learned to avoid green marketing myopia, the
short version of all this is that effective green marketing requires applying good marketing
principles to make green products desirable for consumers. The question that remains,
however, is, what is green marketing's future? Business scholars have viewed it as a “fringe”
topic, given that environmentalism's acceptance of limits and conservation does not mesh
well with marketing's traditional axioms of “give customer what they want” and “sell as
much as you can”. Evidence indicates that successful green products have avoided green
marketing myopia by following three important principles:

1. Consumer value positioning Design environmental product to perform as well as (or

better than) alternatives Promote and deliver the consumer desired value of environmental
products and target relevant consumer market segments. Broaden mainstream appeal by
bundling consumer desired value into environmental products.
2. Calibration of consumer knowledge Educate consumers with marketing messages that
connect environmental attributes with desired consumer value. Frame environmental
product attributes as “solutions” for consumer needs. Create engaging and educational
internet sites about environmental products desired consumer value.
3. Credibility of product claim Employ environmental product and consumer benefit
claims that are specific and meaningful. Procure product endorsements or eco-

anveshanaindia@gmail.com, www.anveshanaindia.com

25
 certifications from trustworthy third parties and educate consumers about the meaning
behind those endorsements and eco certifications. Encourage consumer evangelism via
consumers social and internet communication network with compelling, interesting and
entertaining information about environmental products.

CONCLUSION

Green marketing is a tool for protecting the environment for the future generation. it has a
positive impact on environmental safety. Because of the growing concern of environmental
protection, there is an emergence of a new market which is the green market. If we think
customers are not concerned about environmental issues or will not pay a premium for
products that are more eco-responsible, then we should think again. We 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. Marketers also have the responsibility
to make the consumers understand the need for and benefits of green products as compared to
non-green ones. In green marketing, consumers are willing to pay more to maintain a cleaner
and greener environment.

REFERENCES

[1] Rashad Yazdanifard, Igbazua Erdoo Mercy, “The impact of Green Marketing on
Customer satisfaction and Environmental Safety”, International Conference on Computer
Communication and Management volume 5 2011, pp no.637-641.
[2] Ms. R. Surya, Dr. Mrs. P. Vijaya Banu, "Introduction to Green Marketing" SSRG
International Journal of Economics and Management Studies volume1 issue2 Oct 2014
ISSN: 2393 – 9125.
[3] Pavan Mishra, Payal Sharma, "Green marketing in India: emerging opportunities and
challenges", Mishra etal Journal of Engineering Science and Management Education
Volume 3, 2010 pp no.9-14.
[4] Aseem Prakash, “Green marketing, public policy and managerial strategies”, Business
Strategy and the Environment volume 11 2002, pp. 285–297.
[5] Dr. P. B.Singh, Dr. Kamal K. Pandey, “Green marketing: policies and practices for
sustainable development”, Integral Review-A Journal of Management, Volume 5, No. 1,
June-2012,pp 22-30 ISSN :2278-6120.
[6] Mary Wanjiru Kinoti, "Green marketing Intervention Strategies and Sustainable
Development: A Conceptual Paper", International Journal of Business and Social Science
Volume 2 issue 23, pp.267-275.
[7] Dr. Raghavendra B.N,Usha C, "Green Marketing: It‟s Strategies for Sustainable
Development", Asia pacific journal of research, Volume No: 2 Issue: 4,issn 2320-5504
[8] Website: http://www.unescap.org/sites/default/files/31.%20FS-Green-Marketing.pdf
[9] Website:http://www.pwc.com/us/en/corporate-sustainability-climate-change/assets/green-
products-paper.pdf

anveshanaindia@gmail.com, www.anveshanaindia.com

26