Concepts of Green Marketing

Abstract

Many countries are now understanding the harm that we humans have created to the mother Nature and hence Governments are planning to reduce pollutions by utilising these Green Products. Coming to India our Government has been a very active member who understands the importance and is already working on utilising these Green Products for examples utilisation of the Solar energy with the help of these Green Products. Nowadays the Individual organisations are also brining in the Green practises in their working. This process of exploring the green products is a continuous journey which will yield the results over a period of time and the results would be a healthy environment to our next generations. The outcome shows an inspirational demeanour of marketing proficient, towards green marketing.

Introduction

I. INTRODUCTION

Marketing is one of the core function of any Organisation and is regarded as the revenue generation function. The term Green Marketing came into prominence is the late 1990’s. The American marketing Association (AMA) held first workshop on “Ecological Marketing” in 1975 and the proceedings of this Workshop resulted in one of the first books on green marketing entitled “ Ecological Marketing”.

According to Jacquelyn Ottman who is an author of “the new rules of Green Marketing : Strategies, Tools and Inspiration for Sustainable Branding” from an organisation standpoint, environmental considerations should be integrated into all aspects of Marketing. The Green Consumerism movements in US, India and other countries have struggled to reach critical mass and influence. However upon surveys in US, India and other countries, it’s always been an indication that the governments should give an utmost importance to Green Marketing with the advancement in the technology.  

Despite these challenges and ignorance, the Green Marketing has gained it importance particularly with the Globalisation and the advancement in the Technology. In today’s world most of the countries are worried about their Mother Nature, because of the earlier negligence we are already seeing the effects of these ignorance’s.

Hence in today’s world every organisation understand their role and wants to implement or utilise these green products in every part of the life (personal or business). For example setting up solar panels on the houses or companies building so that they reduce the power consumption and the governments also recognise these green initiatives by encouraging individual or company with tax some subsidies or other benefits. Green Marketing has become the mandatory word for each individuals, Company and the countries to save our mother Nature and earth from further pollution which would result to our end very soon as we have already witnessed the effects of these pollution in the last 10 Years

Definition: Green marketing is the process of promoting products or services based on their environmental benefits. These products or services are environmentally friendly in themselves or produced in an environmentally friendly way.

Green marketing can also be defined as the marketing of the products that are presumed to be environmentally safe. It Incorporates. Broad range of activities including product modification, changes to the products process, sustainable packaging as well as modifying advertising. Yet defining green Marketing is not a simple task where several meanings intersect and contradict each other. Other similar terms that can be used are Environmental Marketing and ecological Marketing.

A. Objective of the Study

1. To understand the concepts for promoting the green Products.
2. Educate the long term benefits of the Green Products to individuals and work on the Sustainability of the earth.
3. Make Green Products more customer friendly by explaining the long term benefits and the advantages to the future Generation.

B. Importance of Green Marketing

Even though the various Governments across the globe (Developed, Developing or underdeveloped countries) have not promoted the Green products, the green products have become very important for the sustainability of the human kind. We have today reached to the stage wherein our mother earth temperature is raised by 2 deg Celsius over the last decade, which is the highest. The mother nature has been giving many serious warnings in the form of forest wildfire, floods, Cyclones, droughts and many other calamities. But the world leaders nor their government has understood the importance or benefits of the Green Marketing. A survey was conducted by the Futerra group in USA and UK during November 2018 and it was found that

Therefore, companies need to incorporate sustainability strategies in their business. However, corporate social responsibility alone does not achieve a long-term impact. Sustainable development should be firmly rooted in the company’s vision and goals. Besides, businesses that implement environmentally friendly practices have a lot to gain. They attract more customers and manage to keep the expenses low. That is why the needs for green marketing are on the rise. Hence the Governments across the countries are not only making the big corporates to implement the Green Methodologies but the Governments are also implementing the . For example the Government of India has taken the initiative to be using more Clean energy vehicles by 2030 thereby eliminating the vehicles with petrol and diesel. Ten million electric cars were on the world’s roads in 2020. It was a pivotal year for the electrification of mass market transportation. Sales of electric cars were 4.6% of total car sales around the world. The availability of electric vehicle models expanded. New initiatives for critical battery technology were launched.

While many companies claim to practice sustainability, they do not utilise green marketing. This form of marketing requires your products to be eco-friendly or advertise in an eco-friendly way. Therefore, your marketing campaign should highlight the sustainable aspects of the products or services. However, to be able to practice green marketing, your products should be free from toxins, reusable, and recyclable. The production methods should also adhere to eco-friendly guidelines. The packaging and non-green aspects of your company should use resources conservatively. If the company can realign its objectives towards sustainability, then green marketing will be part of the brand and not a means to gain customers.

The Futerra group conducted the Survey to understand the importance of the Green Marketing in US and UK in November 2018 and below were the results.

A survey was also conducted to understand from people to know whether the Brands have the responsibility to make positive change in the world and 98% of the people answered as yes the brands do have the responsibility.

Eco marketing has had a positive influence on people, companies, and the environment. It has encouraged efforts towards environmental conservation. Nowadays, companies are keen on their production methods to ensure pure products. Consumers are also seeking organic products free from toxins, choosing the EV’s in place of Petrol/diesel vehicles. There is a significant reduction in the use of plastic and plastic products by the governments bringing in the awareness of the impact on our ecology and also by enforcing the stricter guideline to avoid the usage. Instead, people are adopting the use of reusable products and sustainable packaging. One the other hand Recycling efforts are also on the rise due to consumers’ awareness of its benefit to the ecosystem. Therefore, green marketing efforts are bearing fruit in promoting sustainability.

Companies adopting the Green Marketing strategies have several advantages and few of them are as follows.

1. New Markets: There are a group of socially conscious consumers who prefer green products. They are even willing to pay more for sustainable products to protect their environment. Paying attention to those customers and tapping into the new market can increase your revenue. For example, we can consider the Ather vehicles which are sold at a premium prices but still the people are interested in buying these vehicles because the company has clearly explained the benefits from consumer perspective and also about the sustainability features.
2. Brand loyalty: Companies that show commitment to environmental conservation receive a lot of credit from the consumers. Loyalty increases the business market share and income significantly. We can consider the same example of the Ather group which started in Bangalore and in now spread across India because of its benefits which are realistic and on feedback from the customers using it.
3. Promoting the Image of the Company: Environmental sustainability is becoming crucial in many aspects of our lives. Therefore, a company that promotes eco-friendly practices gains trust from the public. It shows the company’s commitment to taking care of the environment.
4. Reduced Expenses: Even thought there might be high capital cost investment for the green product and might be expensive in the short-term. However, after the initial investment, green marketing can lower its operating cost and yield to be environmental friendly. The reduction of waste and the use of resources conservatively save the organisation a lot of money.

II. CONCEPTS OF THE GREEN MARKETING

4 P’s of the Green Marketing.

The concepts of the green Marketing can also be called as the 4 p’s of the Green marketing.

1. Green Product: The organisations and the Governments bodies should target to products the green products using environmentally friendly materials which would be a measure aimed at leading from the front on educating the people of the country on the benefits of using the Green products or following the Green Practices. For example in Government of India has implemented many Solar parks for the production of the clean energy whereby people have started using the Solar panels in their houses and many organisations in their offices in the India understanding the long term self-benefits and also on the effect to the environment. One more important factor that every organisation producing the green products should also implement the Green Procedures. The organisation should target to produce the green Products using the environmentally friendly materials which is to develop the product keeping the environment benefit into consideration. For example the packaging of products which should exclude the plastic’s which are not environment friendly. There is a saying that “Where there is a will there is a way” and there is always an Green alternative for all the products or procedures the only way is that we should have the holistic ways to find the solution or else we would be just leaving the earth filled with pollutants and hazardous gas making our next generation life miserable on the earth.  
2. Green Price: As mentioned earlier even though the initial cost (capital cost) is high for the Green products but the operating cost in most of the cases seems to be negligible. Hence the customer should always be educated about the long term benefits of the products rather than on the initial cost. The governments should come up with the volume (Production )based incentive programs so that the cost of the production cab be bought down to some extend to make the product attractive and affordable and consumers get moved toward the green Products and procedures thereby creating the habit of green product purchase, this practise have already proven in case of Amazon and Jio cases, wherein both the companies came up with very attractive offers to the customers. The price of the Green Product play a very vital role and the advantages of these products over a long run should be spelled or experienced by the customer so that these products looks attractive and make them utilise  these products. For example the 2 wheeler EV vehicles in India, the companies should clearly define or project the fuel consumption over a period of 1 year and accordingly explain the saving that would be benefitted interms of the fuel and the other factors such as maintenance cost of the vehicles. So it’s always a very important for the organisations and the Governments clearly define their Schemes or the strategies considering total cost of the ownership which is what any customer would be interested in.
3. Green Place: The distribution channel has an impact on the ecological footprint. The focus is on sustainable packaging and to follow the Green Practices procedures and conservation of resources. Even the distribution channel play’s a very important role in making the product very cost effective. Therefore, organisations should look for eco-friendly packaging methods and focus on marketing local products as opposed to imported goods keeping the environmental benefits in mind. Companies can reduce their carbon footprint by: managing logistics, such as transport costs, and raw materials sourcing. Companies should carefully consider where and when to sell green products. Many consumers will travel out of their way to buy green, but most want ease of access and will buy non-green when convenient. Hence the whole of the Supply chain also play’s a very important role in reducing the transportation for reducing the footprint and also the cost effective Green Product.
4. Green Promotion: The promotion methods should utilise eco-friendly advertising campaigns in marketing the products as this would very much impact on the thinking of the customer and their behaviour. Matching marketing mix to customer green needs by: focusing on relationship between product/ service and environment, promoting green lifestyle benefits. Corporate image is important and CSR demonstrates commitment to green. Social media plays a Vital role in promoting the activities of green companies. There is even scope for consumer interaction and tastemaker associations from this platform. The Green Product promotion can be carried out by the Governments aswell.

The 3 Key’s factors for Successful Green Promotion which help customers in understanding the potential benefits of the products.

a. Being Genuine: It means to explain genuinely the benefits of the Green Products to the customer without following the Traditional Marketing techniques where is the sales team will explain many things apart from the actual benefits to the customer.

b. Educating your Customers:  Educating your Customers isn’t just a matter of letting people know you’re doing whatever you’re doing to protect the environment, but also a matter of letting them know why it matters Otherwise along with the benefits on the operational cost of the product with clear realistic numbers, for a significant portion of your target market, it’s a case of “So what?” And your green marketing campaign goes nowhere.

c. Giving your Customer an Opportunity to Participate:  Giving your customer an opportunity to participate means personalizing the benefits of your environmentally friendly actions or informing about the promotion and also through letting the customer take part in positive environmental action. By conducting the promotion programme quarterly or half yearly and giving customer the chance to participate in these events.

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Copyright © 2022 Raghavendra D S, Dr. R. K. Kushwaha. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.