CHALLENGES AND TRENDS IN GREEN

MARKETING

MOHAMMED BADRUD DEEN

GREEN MARKETING:

According to The American Marketing Association, ―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.

Green marketing must satisfy two objectives: improved environmental quality and customer satisfaction.

REASONS FOR A COMPANY TO “GO GREEN”

OPPORTUNITY ;

SOCIAL RESPONSIBILITY ;

GOVERNMENTAL PRESSURE ;

COMPETITIVE PRESSURE ;

COST REDUCTION .

STRATEGIES OF GREEN MARKETING:

Green Product;

Green Place;

Green Price;

Green Promotion;

GREEN PRODUCT:

Product should be designed with market-

driven trends and customer requests for

green product attributes such as energy

saving, organic, green chemicals,water,

money, but also reduce harmful effects on

the environment.

GREEN PRICE:

Green pricing takes into consideration the

people, planet and profit;

Value can be added to it by changing its

appearance, functionality and through

customization,

GREEN PLACE:

Green place is about managing logistics to

cut down on transportation emissions,

thereby in effect aiming at reducing the

carbon footprint. For example, instead of

marketing an imported mango juice in India it

can be licensed for local production (local

sourcing);

GREEN PROMOTION:

Mobile marketing (m-commerce);

social media ;

online marketing;

BENEFITS OF GREEN MARKETING TO BUSINESS:

Cost benefit;

Profits in the long run;

Innovation;

Competitive advantage

BENEFIT OF GREEN MARKETING TO

CONSUMERS:

Health benefits;

Improves longevity;

Improves standard of living

Positive buying.

BENEFITS OF GREEN MARKETING TO THE

ENVIRONMENT:

SONY COMPANIES ENVIRONMENTAL

PERSPECTIVE

BENEFITS OF GREEN MARKETING TO THE

ECONOMY:

Sustainable development;

Optimum utilization of

scarce resources;

Competitve markets

would emerge;

“Green investments”

would help achieve

“green economy”

EMPIRICAL EVIDENCE:

The results of the recently released 2011 edition of the Global Image Power green Brands Survey show that concern about the environment by the consumers:

64% of Indian consumers indicate that they plan to spend more on green products next year;

Indians are willing to pay a green premium price, with 48% of Indians willing to spend 10% more on a product simply because it is green;

Consumers in India are trusting green advertising compared to other countries, with 86% of Indian consumers reporting that advertising about green products help them in making choices.

In India 28% of consumers intend to purchase green products in the next year as compared to purchase of 16% in last year.

CHALLENGES OF GREEN MARKETING:

CHALLENGES OF GREEN MARKETING:

Green marketing myopia;

Green marketing poses challenges to marketer :

a) Green products require renewable and

recyclable material which are costly;

b) Requires expensive technology;

c) Majority are not aware of the green products;

d) Majority are not willing to pay premium

prices for the green products;

HOW TO OVER COME THE CHALLENGES:

COMPANIES CONTRIBUTING TO GREEN

ENVIRONMENT: PANASONIC- ECO IDEAS;

ITC- GREN HOTELS,CHLORINE FREE PAPER’S, SUSTAINABLE PRODUCTS;

PHILIPS- LED LIGHTS;

5 STAR RATED PRODUCTS- GODREJ CLAIMS ITS REFRIGRATOR FREE FROM CFC,HFC;

NEROLAC- VOC FREE, NO LEAD;

IOC – SAVE OIL, SAVE ELECTRICITY;

DU-PONT- GREEN INOVATION;

ICRISAT- SORGHAM PLANTATION;

SHELL- ETHANOL;

BP- RISING SUN;

EVEN OUR LEGISLATIVE BUILDING IS GREEN RATED;

IDEA SIM CARD ADVERTISEMENT- FULL OF GREEN IDEAS;

E-TICKETING- OF CINEMAS,BUS,RAILWAYS,AIR TICKETS;

E-NEWS PAPERS;

SOCIAL MEDIA MARKETING – THROUGH FACEBOOK,TWITTER,LINKD IN;

DIGITAL CURRENCY;

FLOOR CLEANER- TELEBRANDS H2O MOP;