7. Definition:
Green marketing is the marketing of products that
are presumed to be environmentally preferable to
others.
Green marketing incorporates a broad range of
activities, including product modification, changes
to the production process, sustainable packaging, as
well as modifying advertising.
“The holistic management for identifying,
anticipating and satisfying the requirements of
customers and society, in a profitable and
sustainable way”
8. • Environmental sustainability
Involves developing strategies that sustain the
environment and produce profits for the company. It
protect and preserve the environment
• A green consumer
Someone who voluntarily engages in consumer
practices that are regarded as environmentally
friendly.
• Green or environmentally friendly activities
Energy-efficient operations, better pollution controls
and recycled materials
• Eco labels
Labels which identify overall environmental preference
of a product or service within a specific product or
service range.
9. Why do companies use it?
• Research shows that –
Consumers prefer and are willing to spend
more money on products they perceive as
environmentally safe
• More than half of American consumers have
purchased a product because of a label that
said it was environmentally safe or
biodegradable
What about Indians?
10. Survey by Fortune:
The main objective of the Green Marketing is
sustainable business.
Which means –
• Water gets conserved,
• Energy and materials come increasingly from
clean sources, and
• The social impact of the business is positive.
11. Green Brand Global Survey (2014):
• The study was conducted by WPP agencies
Cohn & Wolfe, Landor Associates and Penn,
Schoen & Berland Associates (PSB), as well as
the independent strategy consulting firm, Esty
Environmental Partners, across seven countries-
US, UK, China,
Brazil, India, Germany and
France.
12. Total 9000 Interviews were conducted online among
the general adult population in China, India, and Brazil,
respondents were from major metropolitan areas in a
country.
NUMBER OF INTERVIEWS
AUSTRALIA 1,100
BRAZIL 1,106
CHINA 1,102
FRANCE 1,100
GERMANY 1,100
INDIA 1,101
U.K. 1,200
U.S. 1,200
17. • Consumers from all seven countries believe that green
products cost more than comparable non-green ones,
and also indicate they plan to spend more money on
green products in the coming year.
• China, India and Brazil showed significant support for
additional spending. As many as 73 per cent of Chinese
consumers say they will spend more, 78 per cent of
Indians say so, too, and so do 73 per cent of Brazilians.
• The percentage of respondents who indicate
willingness to spend 30 per cent or more on green
ranges from 8 percent (UK) to 38 percent (Brazil).
18. GREEN MARKETING INITIATIVES
• a. Hero MotoCorp: Eensure a low carbon footprint, started Green
Initiatives like Corporate Governance - Registration of E-Mail address &
NECS/ECS etc.
• b. Vortex Engineering Private Limited: Automated Teller
Machines (ATMs) and associated services for banks. Solar ATMs. for 24
hours
• c. Oil and Natural Gas Company (ONGC): Harit Moksha: venture
with MokshdaParyavaranEvam Van SurakshaSamiti (Mokshda PEVSS)
which is capable of reducing wood consumption by 60% besides
minimizing air and water pollution in a significant manner.
• d. Data Centers Green IT(HCL) According to a recent AFCOM Data Center
Institute survey, 50% cost spent on a new server goes into the energy to
power and cool it. (Sometime it exceeds the cost of server) The power
management is a key aspect in achieving a Green Data Center.
• e. Wipro Technologies: A green building concept aims at
making an eco-friendly, high performance, low wastage and intelligent
building, which is sustainable along with having a minimal negative impact
on the environment.
• f. Suzlon Energy : Suzlon Energy The world's fourth largest
wind-turbine maker is among the greenest and best Indian companies in
India. They are committed to powering a greener tomorrow, with 13,000
strong Suzlon family works
19. OTHER SOCIAL INITIATIVES IN INDIA
1. Sankalp Taru: To control global warming issue SankalpTaru Foundation, India
thought to empower the global public and to protect our planet.
The motto “A solemn pledge to plant and nurture trees”
or
“We don’t just plant – but create a wide socio-environmental impact”
SankalpTaru initiates, develops and manages reforestation and environmental
conservation projects across India.
SankalpTaru works with an ambitious goal to plant and care for trees across the nation.
2. Eco-friendly Rickshaws before CWG: A battery operated rickshaw, “E-rick”,
sponsored by a cellular services provider.
3. Central Pollution Control Board:
The Central Pollution Control Board constituted a Committee on Noise Pollution and
Air Pollution, which were later notified in Environment (Protection) Rules,1986. The
Silence zones are to be declared. Following the instructions from the Supreme
court, the police department has enforced the ban on the use of Dolby sound
system
20. Green wash - Challenges to green
marketing:
• Consumers are seeking out greener products,
energized by the prospects of healthier alternatives,
higher quality, preserving the environment and saving
time and money.
• “Greenwash" phenomenon threatens the green-
marketing revolution.
• Greenwashers can damage a company's credibility.
Recent Ex.: Volkswagen
21.
22. • Kraft’s Post Select cereals
have falsely promoted its
cereals as having “natural
ingredients” when in fact
the corn used in the
cereal is genetically
engineered!
• General Motors has falsely promoted its cars as
environmentally friendly, with ads that have their
SUV’s in natural habitats as if they were as natural
as the surrounding trees. Ford, for example, has
launched the new Escape Hybrid. What they fail
to tell the public is they only produce 20,000 of
these cars a year, while continuing to produce
almost 80,000 F-series trucks per month!
Edible oil industry body Solvent Extractors
Association of India (SEA) is approaching food
safety regulator FSSAI as well as advertising
industry watchdog ASCI against yoga guru Ramdev
promoted Patanjali alleging that its ads for mustard
oil are "false and misleading".
23. Why Greenwash?
• With the rising concerns of global warming, people
are becoming more and more aware of the dangers
to mother earth.
• People are looking for environmentally friendly
products that are good for the environment and
their personal health.
• Corporations turn to green washing to make
themselves look more environmentally friendly so
that they can keep their customers coming back.
24. India’s initiative to control Green-wash
In 1991, the Indian Government launched the eco-
labeling scheme known as `Ecomark‘ for identifying
environment-friendly products or green products.
The Ministry of Environment & Forests, Govt. of
India have instituted a scheme on labelling of
Environment Friendly Products through Gazette
Notification No. 71 dated 21st February 1991.
The scheme provides accreditation and labelling for
household and other consumer products which
meet certain environmental criteria along with
quality requirements of the Indian Standards for
that product.
25. Any product which is made, used or disposed of in a way
that significantly reduces the harm to the environment, are
categorized as environment friendly product.
The specific objectives of the ECOMARK scheme are as follow :
• To provide an incentive for manufacturers and importers to
reduce environmental impact of products.
• To reward genuine initiatives by companies to reduce
adverse environmental impact of their products.
• To assist consumers to become environmentally
responsible during their purchase decisions.
• To ensure citizens to purchase products which have less
harmful environmental impacts.
• Ultimately to improve the quality of the environment and
to encourage the sustainable management of resources.
26. Green Marketing Mix:
Product :The objectives are to reduce resource consumption and
pollution and to increase conservation of scarce resources.
Price : 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.
Promotion : Three types of green advertising: -
1. Ads that address a relationship between a product/service and the
biophysical environment
2. Ads that promote a green lifestyle by highlighting a product or
service
3. Ads that present a corporate image of environmental responsibility
Place : Only few customers will go out of their way to buy green product
27. What types of power are “green”?
• Wind
• Bioenergy
• Geothermal energy
• Solar power
• Hydroelectric power
28. Why is green power attractive to
consumers?
• Electricity generation is largest industrial polluter:
• Two-thirds of the annual U.S. emissions of sulfur
dioxide (main cause of acid rain)
• 30 percent of the nitrogen oxide emissions (stress
forest ecosystems; combine with organic compounds in
sunlight to form smog)
• 40 percent of carbon dioxide emissions
• toxic-metal emissions (mercury and lead)
29. What are the “Dirtiest” energy sources?
• Coal
• Oil
• Nuclear power
• Natural Gas
30. What do the Guides cover?
Any way in which a message can be received
• labeling
• advertising
• promotional materials
31. Any form a message can take
• words
• symbols
• emblems
• logos
• depictions
• product brand names
32.
33. Conclusions:
• Consumers today are much more concerned about climatic changes.
• In most countries consumers are becoming more aware and willing to
act on environmental concerns.
• They prefer environment friendly products over others and many a
times are ready to pay a little extra price for such green products.
• Consumer in all countries “feel empowered when it comes to the
environment and are taking some action in their daily lives to reduce
consumption and waste.
• Most of such studies on green philosophy and green marketing are
done in developed countries and missing in the context of developing
economies like India.
• Green marketing is still in infancy stage & lot of research needs to be
done by the companies to project a green Corporate Image rather
than focusing on the environmental benefits.
• In future only those companies will reap the greatest reward that
innovate with new products, materials, technologies which are eco-
centric and address the challenge by walking their talk.