Importance of Green Marketing - In 2010, a report on environmental claims made in the North American market and the researchers expressed that green is a difficult word (Defining Green Products 2010). The complicating matters is the widespread use of terms such as natural, organic, planet-friendly, earth-friendly, ecological, non-toxic, biodegradable, plant- based, chlorine-free, and 100% compostable, which consumers erroneously assume are synonymous with green (Terra Choice 2009).
It is no wonder that every company has a green story. The development and offering of green products and services positively impact consumer and investor perceptions of a company and it also improve the bottom line of the company.
The term green marketing is often used loosely and in the wrong context. Green marketing is the marketing of products which are considered not to be harmful for environment. The terms like phosphate free, recyclable, refillable, ozone friendly and environmentally friendly are some of the things consumers most often associate with green marketing. But green marketing incorporates a broad range of activities such as the product modification, changes to the production process, packaging changes, as well as modifying advertising which can be applied to consumer goods, industrial goods and even services (Welling and Chavan 2010). One of the biggest problems with the green marketing area is that there has been little attempt to academically examine environmental or green marketing.
The green marketing is first introduced in the late 1970s when the American Marketing Association (AMA) organized the first ever workshop on Ecological Marketing in 1975 which resulted in the first book on the subject, entitled ‘Ecological Marketing’ by Henion and Kinnear in 1976. The first definition of green marketing was according to Heinion as follows: “The implementation of marketing programmes directed at the environmentally conscious market segment” (Banerjee 1999).
Henion’s definition of green marketing has evolving and many more definitions of green marketing have arisen throughout the years. Fuller (1999) defined the green marketing as follows: “The process of planning, implementing, and controlling the development, pricing, promotion and distribution of products in a manner that satisfies the following three criteria: (1) customer needs are met, (2) organizational goods are attained and (3) the process is compatible with ecosystems”.
Importance of Green Marketing
Economy of the world faces serious difficulties due to global warming, greenhouse gas (GHG) emissions (Mohajan 2011). Green marketing is in the focus of present marketing strategy due to the pressure that comes from inclined environmental awareness in the global climate change. Therefore, the marketers need to include a green approach in framing the marketing programmes. There are several suggested reasons for firms increased use of green marketing and some of them are as follows (Singh 2008):
The term green marketing is often used loosely and in the wrong context. Green marketing is the marketing of products which are considered not to be harmful for environment. The terms like phosphate free, recyclable, refillable, ozone friendly and environmentally friendly are some of the things consumers most often associate with green marketing. But green marketing incorporates a broad range of activities such as the product modification, changes to the production process, packaging changes, as well as modifying advertising which can be applied to consumer goods, industrial goods and even services (Welling and Chavan 2010). One of the biggest problems with the green marketing area is that there has been little attempt to academically examine environmental or green marketing.
The green marketing is first introduced in the late 1970s when the American Marketing Association (AMA) organized the first ever workshop on Ecological Marketing in 1975 which resulted in the first book on the subject, entitled ‘Ecological Marketing’ by Henion and Kinnear in 1976. The first definition of green marketing was according to Heinion as follows: “The implementation of marketing programmes directed at the environmentally conscious market segment” (Banerjee 1999).
Henion’s definition of green marketing has evolving and many more definitions of green marketing have arisen throughout the years. Fuller (1999) defined the green marketing as follows: “The process of planning, implementing, and controlling the development, pricing, promotion and distribution of products in a manner that satisfies the following three criteria: (1) customer needs are met, (2) organizational goods are attained and (3) the process is compatible with ecosystems”.
Importance of Green Marketing
Economy of the world faces serious difficulties due to global warming, greenhouse gas (GHG) emissions (Mohajan 2011). Green marketing is in the focus of present marketing strategy due to the pressure that comes from inclined environmental awareness in the global climate change. Therefore, the marketers need to include a green approach in framing the marketing programmes. There are several suggested reasons for firms increased use of green marketing and some of them are as follows (Singh 2008):
- Organizations perceive environmental marketing to be an opportunity which can be used to achieve its objectives ,
- Organizations believe that they have a moral obligation to be more socially responsible,
- Cost factors associated with waste disposal, or reductions in material usage forces firms to modify their behavior,
- Competitors’ environmental activities pressure firms to change their environmental marketing activities , and
- Governmental bodies are forcing firms to become more responsible.
In the 21st century consumers become more conscious about their safer and healthier lives and healthy environment. Obviously the customers always want to buy eco-friendly and environment harmless commodities for their daily lives.
In 2007 green marketing came in main stream of global business and it has captured the public consciousness. The best example of green marketing issues that helping to make environment safe and eco - friendly is from printing machines industries which are trying to be more greener by reducing emissions of Volatile Organic Compounds (VOCs), handling of contaminated water and toxic waste as well as tracking of inks, solvents and other chemicals (Chaudhary et al. 2011). There are many opportunities of green marketing.
Recently firms marketing goods with environmentally safe have realized a competitive advantage over firms marketing non-environmentally responsible alternatives. Some companies have found benefits for using green marketing technologies, for example the Xerox company introduced a high quality recycled photocopier paper in an attempt to satisfy the demands of firms for less environmentally harmful products, the Tuna company manufacturers modified their fishing techniques because of the increased concern over driftnet fishing, and the resulting death of dolphins and the McDonald’s company replaced its clam shell packaging with waxed paper because of increased consumer concern relating to polystyrene production and ozone depletion (Singh 2008). The government of a country can stress to product green marketing commodities to reduce production of harmful goods or by-products, to modify consumer consumption of harmful goods. These governmental regulations are designed to control the amount of hazardous wastes produced by firms. Government can impose a tax on production or use of non-green marketing products. For example, in Australia there is a higher gas tax associated with leaded petrol. A company can produce green marketing product to teach other companies the importance and demand of it. For example, it could be argued that Xerox’s Revive 100% Recycled paper was introduced in the market a few years ago in an attempt to address the introduction of recycled photocopier paper by other manufacturers.
Constraints to Implement Green Marketing
Implementation of green marketing in the industrial and manufacturing sectors is not an easy job. The firm has to face many problems while treading the way of green marketing. In any country to product materials for green marketing the manufacturers have to face various challenges. Some of these challenges are being as follows (Welling and Chavan 2010):
In 2007 green marketing came in main stream of global business and it has captured the public consciousness. The best example of green marketing issues that helping to make environment safe and eco - friendly is from printing machines industries which are trying to be more greener by reducing emissions of Volatile Organic Compounds (VOCs), handling of contaminated water and toxic waste as well as tracking of inks, solvents and other chemicals (Chaudhary et al. 2011). There are many opportunities of green marketing.
Recently firms marketing goods with environmentally safe have realized a competitive advantage over firms marketing non-environmentally responsible alternatives. Some companies have found benefits for using green marketing technologies, for example the Xerox company introduced a high quality recycled photocopier paper in an attempt to satisfy the demands of firms for less environmentally harmful products, the Tuna company manufacturers modified their fishing techniques because of the increased concern over driftnet fishing, and the resulting death of dolphins and the McDonald’s company replaced its clam shell packaging with waxed paper because of increased consumer concern relating to polystyrene production and ozone depletion (Singh 2008). The government of a country can stress to product green marketing commodities to reduce production of harmful goods or by-products, to modify consumer consumption of harmful goods. These governmental regulations are designed to control the amount of hazardous wastes produced by firms. Government can impose a tax on production or use of non-green marketing products. For example, in Australia there is a higher gas tax associated with leaded petrol. A company can produce green marketing product to teach other companies the importance and demand of it. For example, it could be argued that Xerox’s Revive 100% Recycled paper was introduced in the market a few years ago in an attempt to address the introduction of recycled photocopier paper by other manufacturers.
Constraints to Implement Green Marketing
Implementation of green marketing in the industrial and manufacturing sectors is not an easy job. The firm has to face many problems while treading the way of green marketing. In any country to product materials for green marketing the manufacturers have to face various challenges. Some of these challenges are being as follows (Welling and Chavan 2010):
- To supply green marketing products first the manufacturers need to create public consciousness about the usefulness of the use of these types of products. The consumers must know that green marketing encourages the manufacturers to product green products, to use green technology and green energy which are environmentally less harmful.
- It need a lot of money has to be spent on R&D (research and development) programmes, so that initially it will be a costly matter.
- Initially the profits of the company will be very low because renewable and recyclable products and green technologies are more expensive but in the long run it will be profitable since consumers will want to spend extra amount for green products.
- At the starting many customers may not be willing to pay a higher price for green products which may affect the sales of the company. Initially the environment conscious people will be the buyers of green products.