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Consumer Awareness towards Green

Marketing

1. EXECUTIVE SUMMARY

Terms like "Green Marketing" and "Environmental Marketing" appear


frequently in the popular press. Many governments around the world have
become so concerned about green marketing activities that they have
attempted to regulate them. Other similar terms used are Environmental
Marketing and Ecological Marketing.

American Marketing Association Define: - Green marketing is the marketing


of products that are presumed to be environmentally safe.

Thus green marketing incorporates a broad range of activities including:

 Product modification,
 Changes to the production process,
 Packaging changes,
 As well as modifying advertising

To succeed, any green strategy must fulfill three criteria:

✔ Firstly, it must be a sustainable and credible programmed, which


brings real benefits to the environment.
✔ Secondly, it must deliver sound economic ROI and competitive
advantage to the business.
✔ Thirdly, it must be supported by relevant green messages, which
resonate with customers and prospects.

Basically the main aim of the project is to analyze the developments which are
taking place throughout the world to promote green products and green
marketing.

➢ Title of the project:


The title of the project is “Consumer awareness towards Green
Marketing.”

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Consumer Awareness towards Green
Marketing

➢ Objectives of Research:
• To understand the level of awareness regarding green marketing
among consumers.
• To understand the buying behavior of consumers related to green
marketing.
• To understand how green marketing helps Company to built its image.

• To understand initiative taken by government towards green


marketing.
• To understand the success of green marketing as a corporate social
responsibility.

➢ Limitations of the study:


• Demographic Constraints - will be a main issue of concern. This is
due to the reason that the data collection will be restricted to the
Borivali and Kandivali region.
• Unawareness - people are unaware of the i.e. Green marketing.
• Time Constraint - the time duration for doing the complete research
on green marketing is very limited. Green Marketing a broad topic
which requires an in-depth research and analysis. Due to the time
period given for research is very limited.

2. RESEARCH METHODOLOGY

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Consumer Awareness towards Green
Marketing

Research Methodology is a way to systematically solve the research problem.


It may be understood as a science of studying how research is done
scientifically. When we talk of research methodology we not only talk of the
research methods but also consider the logic behind the methods we use in the
context of our research study and explain why we are using a particular
method or technique and why we are not using others.

The major steps involved in research process are:

 Formulating the Research Problem


 Choice of Research Design
 Sources of Data
 Processing and analyzing the data

 Formulating the Research Problem:


The problem well defined is half solved. The formulation of a general
topic into a specific research problem constitutes the first step of specific
enquiry.
 Unit of analysis: Consumers between age group of 25 to 30 yrs.
 Characteristics of Interest: Awareness of Green Marketing.

 Choice of Research Design:


Every project requires an action plan and method for conducting a study.
This project is more prone to single cross-sectional descriptive research
design.

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Marketing

 Sources of Data:
The data presented are both primary data and secondary data.

 Primary Data:
The primary data are those which are collected afresh and for the
first time, and thus happen to be original in character. We collect
primary data during the course of doing experiments in an
experimental research but in case we do research of the descriptive
type and performs surveys. Here the Primary data will be
collected by means of preparing a questionnaire and getting it filled
by a large sample space. These questionnaires will help in drawing
conclusions about the case.

 Secondary Data:
Secondary data means data that are already available i.e. they refer
to the data which have already been collected and analyzed by
someone else. When the researcher utilizes secondary data then he
has to look into various sources from where he can obtain them. In
this case he is certainly not confronted with the problems that are
usually associated with the collection of original data. Secondary
data may either be published data or unpublished data.

 Processing and analyzing the data:


The data analysis has been done in correct form. Usage of current
information & graph is made in the project so as to make it easier &
appropriate to understand.

3. INTRODUCTION TO GREEN MARKETING

Environmental issues have gained importance in business as well as in public


life throughout the world. It is not like that a few leaders of different countries

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Marketing

or few big renowned business houses are concerned about the day to day
deterioration of oxygen level in our atmosphere but every common citizen of
our country and the world is concerned about this common threat of global
warming.

So in this scenario of global concern, corporate houses has taken green-


marketing as a part of their strategy to promote products by employing
environmental claims either about their attributes or about the systems,
policies and processes of the firms that manufacture or sell them.

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Consumer Awareness towards Green
Marketing

Clearly green marketing is part and parcel of overall corporate strategy; along
with manipulating the traditional marketing mix (product, price, promotion
and place), it require an understanding of public policy process. So we can say
green marketing covers a broad range of activities.

3.1 Definition & Meaning


According to the American Marketing Association, green marketing is the
marketing of products that are presumed to be environmentally safe. Thus
green marketing incorporates a broad range of activities, including

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Consumer Awareness towards Green
Marketing

 Product modification,
 Changes to the production process,
 Packaging changes, as well as
 Modifying advertising.

So, in simple terms 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 itself or produced and/or packaged
in an environmentally friendly way.

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Marketing

Green 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.

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Marketing

The many meanings of green


The different meanings of GREEN

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Consumer Awareness towards Green
Marketing

3.2 Evolution of Green Marketing

The green marketing has evolved over a period of time. According to Peattie
(2001), the evolution of green marketing has three phases:

✔ First phase was termed as "Ecological" green marketing, and during


this period all marketing activities were concerned to help environment
problems and provide remedies for environmental problems.

✔ Second phase was "Environmental" green marketing and the focus


shifted on clean technology that involved designing of innovative new
products, which take care of pollution and waste issues.

✔ Third phase was "Sustainable" green marketing. It came into


prominence in the late 1990s and early 2000.

3.3 Importance of Green Marketing

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Consumer Awareness towards Green
Marketing

Human Beings have limited resources on the earth, with which she/he must
attempt to provide for the worlds' unlimited wants. There is extensive debate
as to whether the earth is a resource at man's disposal. In market societies
where there is "freedom of choice", it has generally been accepted that
individuals and organizations have the right to attempt to have their wants
satisfied. As firms face limited natural resources, they must develop new or
alternative ways of satisfying these unlimited wants. Ultimately green
marketing looks at how marketing activities utilize these limited resources,
while satisfying consumers wants, both of individuals and industry, as well as
achieving the selling organization's objectives.

When looking through the literature there are several suggested reasons for
firms increased use of Green Marketing. Five possible reasons cited are:

 Organizations perceive environmental marketing to be an opportunity


that can be used to achieve its objectives.
 Organizations believe they have a moral obligation to be more socially
responsible.
 Governmental bodies are forcing firms to become more responsible.
 Competitors' environmental activities pressure firms to change their
environmental marketing activities.
 Cost factors associated with waste disposal, or reductions in material
usage forces firms to modify their behavior.

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3.4 GOALS OF GREEN MARKETING


✔ Eliminate the concept of waste.
✔ Reinvent the concept of product.
✔ Make prices reflect actual and environmental costs.
✔ Make environmentalism profitable.
✔ Bringing out product modifications.
✔ Changing in production processes.
✔ Packaging changes.
✔ Modifying advertising.

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3.5 Need of Green Marketing: An Anthropological View

Issues like Global warming and depletion of ozone umbrella are the main for
the healthy survival. Every person rich or poor would be interested in quality
life with full of health and vigour and so would the corporate class. Financial
gain and economic profit is the main aim of any corporate business. But harm
to environment cost by sustain business across the globe is realized now
though off late. This sense is building corporate citizenship in the business
class. So green marketing by the business class is still in the selfish
anthological perspective of long term sustainable business and to please the
consumer and obtain the sanction license by the governing body. Industries in
Asian countries are catching the need of green marketing from the developed
countries but still there is a wide gap between their understanding and
implementation.

3.6 Challenges in Green Marketing

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Marketing

 Need For Standardization:

It is found that only 5% of the marketing messages from “Green” campaigns


are entirely true and there is a lack of standardization to authenticate these
claims. There is no standardization to authenticate these claims. There is no
standardization currently in place to certify a product as organic. Unless some
regulatory bodies are involved in providing the certifications there will not be
any verifiable means. A standard quality control board needs to be in place for
such labeling and licensing.

➢ New Concept:

Indian literate and urban consumer is getting more aware about the merits of
Green products. But it is still a new concept for the masses. The consumer
needs to be educated and made aware of the environmental threats. The new
green movements need to reach the masses and that will take a lot of time and
effort. By India’s ayurvedic heritage, Indian consumers do appreciate the
importance of using natural and herbal beauty products. Indian consumer is
exposed to healthy living lifestyles such as yoga and natural food
consumption. In those aspects the consumer is already aware and will be
inclined to accept the green products.

➢ Patience and Perseverance:

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Marketing

The investors and corporate need to view the environment as a major long-
term investment opportunity, the marketers need to look at the long-term
benefits from this new green movement. It will require a lot of patience and no
immediate results. Since it is a new concept and idea, it will have its own
acceptance period.

➢ Avoiding Green Myopia:

The first rule of green marketing is focusing on customer benefits i.e. the
primary reason why consumers buy certain products in the first place. Do this
right, and motivate consumers to switch brands or even pay a premium for the
greener alternative. It is not going to help if a product is developed which is
absolutely green in various aspects but does not pass the customer satisfaction
criteria. This will lead to green myopia. Also if the green products are priced
very high then again it will lose its market acceptability.

3.7 Benefits of Green Marketing

Today’s consumers are becoming more and more conscious about the
environment and are also becoming socially responsible. Therefore, more

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Marketing

companies are responsible to consumer’s aspirations for environmentally less


damaging or neutral products. Many companies want to have an early mover
advantage as they have to eventually move towards becoming green.

Some of the advantages of green marketing are:

 It ensures sustained long term growth along with profitability.


 It saves money in the long run, though initially the cost is more.
 It helps the companies market their products and services keeping the
environment aspects in mind.
 It helps in accessing the new markets and enjoying the competitive
advantage.
 Most of the employees also feel proud and responsible to be working
for an environmentally responsible company.

4. PRESENT TREND IN GREEN MARKETING

4.1 GREEN Code

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Marketing

Generalizes with care. Consumer behavior will not necessarily be consistent


across different product types, and particular market segments may respond to
certain issues on the green agenda but not others.

Remembers, the validity of a piece of market research is not related to the


degree to which it supports your preferred option.

Explores the context from which market research data comes. Be clear on the
nature of the sample used, the questions asked, the way in which responses
were recorded and the time and place from which the responses come.

Ensures that where market research is crossing international borderlines, that


the terminology and interpretation remains consistent. Terms like
‘environment’, ‘green’ and ‘conservation’ do not always translate precisely
between languages.

Neutrality is important. Ensure that when you pose questions to consumers,


that they can make any response without being made to feel guilty or
uncomfortable, and ensure that your own preconceptions about the green
agenda (such as an assumption that green products will cost extra) are not
encoded within the questions.

4.2 Golden Rules of Green Marketing

1. Know your customer: If you want to sell a greener product to consumers,


you first need to make sure that the consumer is aware of and concerned about
the issues that your product attempts to address. (Whirlpool learned the hard

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Marketing

way that consumers wouldn’t pay a premium for a CFC-free refrigerator


because consumers didn’t know what CFCs were!).

2. Empower consumers: Make sure that consumers feel, by themselves or in


concert with all the other users of your product, that they can make a
difference. This is called “empowerment” and it’s the main reason why
consumers buy greener products.

3. Be transparent: Consumers must believe in the legitimacy of your product


and the specific claims you are making. Caution: There’s a lot of skepticism
out there that is fueled by the raft of spurious claims made in the “go-go” era
of green marketing that occurred during the late 80s–early90s — one brand of
household cleaner claimed to have been “environmentally friendly since
1884”!

4. Reassure the buyer: Consumers need to believe that your product performs
the job it’s supposed to do — they won't forego product quality in the name of
the environment. (Besides, products that don’t work will likely wind up in the
trash bin, and that’s not very kind to the environment.)

5. Consider your pricing: If you're charging a premium for your product —


and many environmentally preferable products cost more due to economies of
scale and use of higher-quality ingredients — make sure that consumers can
afford the premium and feel it’s worth it. Many consumers, of course, cannot
afford premiums for any type of product these days, much less greener ones,
so keep this in mind as you develop your target audience and product
specifications.

4.3 Green Marketing Strategies V/S Conventional Marketing

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Marketing

Conventional
Green Marketing
Marketing
Human beings with Consumers with
Consumers
lives lifestyles
“cradle-to-gave” one
“Cradle-to cradle”
Products size fits for all
flexible services
products

Marketing And Selling oriented and


Educational values
Communication benefits

Receptive,
Proactive, independent,
interdependent, competitive,
Corporate
cooperative, holistic, departmentalized,
long term short term oriented
profit maximizing.

4.4 GREEN MARKETING MIX

PRODUCT

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Marketing

Entrepreneurs wanting to exploit emerging green markets either: Identify


customers’ environmental needs and develop products to address these needs
or will develop environmentally responsible products to have less impact than
competitors.

The increasingly wide variety of products on the market that support


sustainable developments are:

✔ Products made from recycled goods, such as Quick’ N Tuff housing


materials made from recycled broccoli boxes.
✔ Products that can be recycled or reused.
✔ Efficient products, which save water, energy or gasoline, save money
and reduce environmental impact.
✔ Products with environmentally responsible packaging, McDonalds, for
example, changed their packaging from polystyrene clamshells to
paper.
✔ Products with green labels, as long as they offer substantiation.
✔ Certified products, which meet or exceed environmentally responsible
criteria.
✔ Organic products-many customers are prepared to pay a premium for
organic products, which offer promise of quality. Organic butchers, for
example, promote the added qualities such as taste and tenderness.
✔ A service that rents or loans products-toy libraries.

Whatever the product or service, it is vital to ensure that products meet or


exceed the quality expectation of customers and is thoroughly tested.

PRICE

Pricing is the critical element of the marketing mix. Most customers will only
be prepared to pay a premium if there is a perception of additional product

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Marketing

value. This value may be improved performance, function, design, visual


appeal or taste. Environmental benefits will be often being the deciding factor
between products of equal value or quality.

Environmentally responsible products, however are often less expensive when


product life cycle coast are taken into consideration, for example fuel-efficient
vehicles, water efficient printing and non-hazardous products.

PLACE

The choice of where and when to make products available will have
significant impact on the customers you attract. Very few customers go out of
their way to buy green products merely for the sake of it. Marketers looking to
successfully introduce new green products should position them broadly in the
market place so they are not just appealing to a small green niche market.

The location must also be consistent with the image you want to project and
allow you to project your own image rather than being dominated or
compromised by the image of venue. The location must differentiate you from
the competitors. This can be achieved by in-store promotions and visually
appealing displays or using recycled materials to emphasize the environmental
and other benefits.

PROMOTION

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Marketing

Promoting products and services to target markets include paid advertising,


public relations, sales promotions, direct marketing and on-site promotions.
Smart green marketers will be able to reinforce environmental credibility by
using sustainable marketing and communication tools and practices. For
example, many companies in the financial industry are providing electronic
statements by email; e-marketing is rapidly replacing more traditional
marketing methods and printed materials can be produced using recycled
materials and efficient processes such as waterless printing.

Retailers, for example are recognizing the value of alliances with other
companies, environmental groups and research organizations. When
promoting their environmental commitment to reduce the use of plastic bags
and promote their green commitment, some retailers sell shopping bags and
promote their green commitments.

4.5 Green Marketing Process


Green marketing process comprises with external and internal P’s. After
integrating external and internal P’s, green success will automatically come
through four S’s. Here external 7 P’s consists of Paying customers, Providers,
Politicians, Pressure groups, Problems, Predictions and Partners; internal 7P’s
consists of Products, Promotion, Price, Place, Providing information,
Processes and Policies. After integrating external and internal 7P’s, we can

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Marketing

find out the green successes through 4 S’s such as Satisfaction – of


stakeholder needs, Safety – of products and processes, Social acceptability –
of the company and Sustainability – of its activities.

External Green P’s Internal Green P’s


• Paying customers • Products
• Providers • Promotion
• Politician’s • Price
• Pressure groups • Place
• Problems • Providing
• Predictions information
• Partners • Processes
• Policies

Green Marketing

4.6 Green Marketing: A Corporate Initiative


The S’s of Green Success
· Satisfaction – of stakeholder needs
Green · Safety – of products and processes Marketing is
important in · Social acceptability – of the company today’s world
because · Sustainability – of its activities mankind has
limited resources on the
earth and if we want long term

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Marketing

sustainability of human life on this earth’s surface, then companies has to


learn to conserve these scarce natural resources and create products that have
less environmental damage. Otherwise the very existence of humankind will
be under question mark.

Corporate are going green from the grassroots level to sustain and win the
customers’ expectations. The environment is becoming increasingly important
part of the corporate reputations and they are actively participating in greening
the corporate strategy. Companies have converted almost all the products to
make them eco-friendly products. Following are the recent environment
friendly initiatives taken by the companies.

Cipla: CFC-free Inhaler:

Cipla, India’s second largest drug company by market share has planned and
started replacing all its CFC contained drugs
to meet the international standard and
Montreal Protocol ban deadline. The CFC
depletes the ozone layer and also is a major
cause of global warming. Cipla has updated
the necessary technology to avoid the CFC
and has also done its clinical trial in India and
overseas. The Rota haler and the Asthalin
inhaler are environment – friendly inhalers,
used by asthma and bronchitis patients. These inhalers are using HFA (Hydro
Fluro Alkaline) technology. The Rota haler is a powder based inhaler,
different from regular inhaler which contains propellants.

Maruti Suzuki

The company has remained ahead of regulatory requirements in pursuit of


environment protection and energy conservation at its manufacturing facilities,
and in development of products that use fewer natural resources and are
environment friendly. The company credited the 'Just-in-Time' philosophy

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Marketing

adopted and internalized by the employees as the prime reason that helped to
excel in this direction.

The company has been promoting 3R


since its inception. As a result the
company has not only been able to
recycle 100% of treated waste water
but also reduced fresh water
consumption. The company has
implemented rain water harvesting to recharge the aquifers. Also, recyclable
packing for bought out components is being actively promoted.

The company has been facilitating implementation of Environment


Management System (EMS) at its suppliers' end. Regular training programs
are conducted for all the suppliers on EMS. Surveys are conducted to assess
the vendors who need more guidance. The systems and the environmental
performance of suppliers are audited. The green co-efficient of this system is
much better than the conventional system.

The Country’s largest car manufacturer had managed to slash energy


consumption per car at its Gurgaon factory by 26 per cent over the past six
years, while its carbon dioxide (CO2) emissions during car manufacturing
processes has come down 39 per cent in the past five years. The model with
gas as fuel was adopted by Maruti Suzuki India Limited as their Green
Marketing practices.

Bharat Petroleum

Bharat Petroleum launched a campaign to position itself as a responsible


corporate ‘green’ entity. Foraying
into renewable energy-solar and
wind power-it installed solar
panels on its service stations. It
also ran a program to cut
production of greenhouse gases by
10% across its units worldwide
and achieved it much ahead of schedule. Cleaner fuels such as Greener Diesel

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Marketing

(ultra low sulphur content) and BP Auotgas were developed. Almost all of its
plants are ISO 14001 certified. Currently it is running a program to contain its
net emissions at current levels for ten years.

Hindustan Petroleum

Hindustan petroleum owns a massive e-waste recycling plants, where


enormous shredders and granulators reduce four million pounds of computer
detritus each month to bite-sized chunks-the first step in reclaiming not just
steel and plastic but also toxic chemicals like mercury and even some precious
metals. HP will take back any brand of equipment; its own machines are 100
percent recyclable. It has promised to cut energy consumption by 20 percent
by 2010.

Proctor & Gamble

Laundry detergents are also touting energy


savings. Proctor & Gamble’s (P&G) newest
market entry, Tide Coldwater, is designed to
clean clothes effectively in cold water. About 80
to 85 percent of the energy used to wash clothes
from heating water. Working with utility
companies, P and G found that consumers could save energy and resources by
using cold rather than warm water. As energy and resource prices continue to
soar, opportunities for products offering efficiency and savings are destined
for market growth.

ITC

ITC has been 'Carbon Positive’ for three years in a row sequestering/storing
twice the amount of CO2 than the Company emits. It has been 'Water Positive'
six years in a row creating three times more Rainwater Harvesting potential
than ITC's net consumption. It has obtained close to 100% solid waste
recycling. All Environment, Health and Safety Management Systems in ITC
conform to the best international standards. ITC's businesses generate
livelihoods for over 5 million people.

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ITC's globally recognized E-Choupal initiative is the world's largest rural


digital infrastructure benefiting over 4 million farming families. ITC's Social
and Farm Forestry initiative has greened over 80,000 hectares creating an
estimated 35 million person days of employment among the disadvantaged.
ITC's Watershed Development Initiative brings precious water to nearly
35,000 hectares of dry lands and moisture-stressed areas. ITC's Sustainable
Community Development initiatives include women empowerment,
supplementary education, integrated animal husbandry programs.

4.5 Initiatives Taken By Government

Development of ISO 14000 Series of Standards.

ISO has been developed to help any company in any country to meet the goal
of sustainable development and environmental friendliness. The ISO 14000
family of standards (i.e. ISO 14001, 14004, 14010, 14011 and 1412) were
published as an official document in 1996. The ISO series aims to provide
guidance for developing a comprehensive approach to environmental

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Marketing

management and for standardizing some key environmental tools of analysis


such as labeling and life cycle assessment.

Eco-Labeling Initiatives

Eco label provide information regarding the environmental performance of


products. The objective of eco-labeling is to provide authentication to genuine
claims regarding the environmental impact of products and processes by
manufacturers. In India the government has introduced the eco-mark scheme
since 1981. The objectives of the scheme are:

• To provide incentives to manufacturers and importers to reduce the adverse


environmental impact of products.

• To reward genuine initiatives by companies to reduce adverse impact of


environmental impact of products.

• To assist consumers to become environmentally responsible in their daily


lives by providing them information to take account of environmental factors
in their daily lives.

• To encourage citizens to purchase products which have less environmental


impact.

Eco-Labeling Schemes in India

The Ministry of environment and forest of government of India has prescribed


the following criteria for products that:

• They cause substantially less pollution than comparable products in


production, usage and disposal.

• They are recycled and/or recyclable whereas comparable products are not.

• They contribute to a reduction on adverse environmental health


consequences.

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• They comply with laws, standards and regulations pertaining to the


environment.

• Their price is not exorbitantly higher than comparable products.

Eco-Mark in India

Under the concept, products which are less harmful to the environment or
have benign impact on environment through the various stages of
development-manufacture, packaging, distribution, use and disposal or
recycling may be awarded the Eco-Mark. An earthen pot has been chosen as
the logo for Eco-Mark scheme in India. The familiar earthen pot has
renewable resource like earth, does not produce hazardous waste and consume
little energy in making. As a symbol it puts across its environmental message.
Its image has the ability to reach people and help to promote a greater
awareness of the need to be kind to the environment. The logo Eco-Mark
scheme signifies that the product which carries it does least damage to the
environment.

4.6 Reasons for adoption of Green Marketing by the Firms.

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 demands change, many firms see these changes as an


opportunity to be exploited and have a competitive advantage over firms
marketing non-environmentally responsible alternatives. Some examples of

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firms who have strived to become more environmentally responsible, in an


attempt to better satisfy their consumer needs are:

 McDonald's replaced its clam shell packaging with waxed paper


because of increased consumer concern relating to polystyrene
production and Ozone depletion.
 Tuna manufacturers modified their fishing techniques because of the
increased concern over driftnet fishing, and the resulting death of
dolphins.
 Xerox introduced a "high quality" recycled photocopier paper in an
attempt to satisfy the demands of firms for less environmentally
harmful products.

2) Governmental Pressure - As with all marketing related activities,


governments want to "protect" consumers and society; this protection has
significant green marketing implications. Governmental regulations relating to
environmental marketing are designed to protect consumers in several ways:

1. Reduce production of harmful goods or by-products.


2. Modify consumer and industry's use and/or consumption of harmful
goods.
3. Ensure that all types of consumers have the ability to evaluate the
environmental composition of goods.

Governments 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
behaviors and attempt to emulate this behavior. In some instances this
competitive pressure has caused an entire industry to modify and thus reduce
its detrimental environmental behavior. For example, it could be argued that
Xerox's "Revive 100% Recycled paper" was introduced a few years ago in an
attempt to address the introduction of recycled photocopier paper by other
manufacturers. In another example when one tuna manufacture stopped using
driftnets the others followed suit.

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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.
Organizations like the Body Shop heavily promote the fact that they are
environmentally responsible. While this behavior is a competitive advantage,
the firm was established specifically to offer consumers environmentally
responsible alternatives to conventional cosmetic products. This philosophy is
directly tied to the overall corporate culture, rather than simply being a
competitive tool.

An example of a firm that does not promote its environmental initiatives is


Coca-Cola. They have invested large sums of money in various recycling
activities, as well as having modified their packaging to minimize its
environmental impact. While being concerned about the environment, Coke
has not used this concern as a marketing tool. Thus many consumers may not
realize that Coke is a very environmentally committed organization. Another
firm who is very environmentally responsible but does not promote this fact,
at least outside the organization, is Walt Disney World (WDW). WDW has an
extensive waste management program and infrastructure in place, yet these
facilities are not highlighted in their general tourist promotional activities.

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Consumer Awareness towards Green
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5) Cost or Profit Issues - Firms may also use green marketing in an attempt
to address cost or profit related issues. Disposing of environmentally harmful
by-products, such as polychlorinated biphenyl (PCB) contaminated oil are
becoming increasingly costly and in some cases difficult.

Therefore firms that can reduce harmful wastes may incur substantial cost
savings. When attempting to minimize waste, firms are often forced to re-
examine their production processes. In these cases they often develop more
effective production processes that not only reduce waste, but reduce the need
for some raw materials. This serves as a double cost savings, since both waste
and raw material are reduced.

5. GREEN CONSUMER BEHAVIOR

5.1 Environmentally Conscious Consumer Behavior

‘Environmentally Conscious Behavior’ (ECCB) is consumer behavior based


on some awareness of the environmental impacts associated with a product or
service, and a desire to reduce those impacts. Many researchers in the field of
consumer’s psychology and market research have demonstrated a substantial
growth in ECCB across a range of markets. It has been demonstrated through
case studies that how product developers and marketers have capitalized on
this positive attitude and effectively differentiated their product in terms of
their ‘environmentally friendly’ character.

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Consumer Awareness towards Green
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The term environmental consciousness does not have a standardized definition


in the body of academic literature; the reason can be due to arousal of the term
out of political and everyday language. Environmental consciousness is the
desire to protect flora and fauna, a willingness to scrutinize the consequences
of economic activity and a willingness to combine long-term with short-term
planning.

5.2 Attributes of the Green Consumers


To take the advantage of the emerging green market, it is important to
understand who green customers are and the factors influencing their
purchasing decisions and behavior.

Attributes of Environmentally Implication for Green Marketers


Conscious Consumers

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Consumer Awareness towards Green
Marketing

Target products to women who


generally buy

On behalf of men and families.

Use the influence of children to


Will most likely be well educated, encourage parents to try green
young adult women who have more products. The green consumers of the
money to spend. future are generally knowledgeable
about environmental issues. They
should be offered samples and
increments to try products.
Will expect green products to Effectively communicate assurance of
function as non green products and quality for example quality of
won’t pay much extra or sacrifice performances, look, feel, fit, comfort,
quality for greener products. durability.
Will not buy green products on the Like environmental attributes such as
basis of environmental benefits alone. energy efficiency or toxic substance
Products choice is still based on reduction with other benefits such as
whether it meets their basic want or lower price, convenience, or quality
need. Environmental features are of life improvements.
added selling points.
Will be more likely to respond to Emphasize personal benefits by using
product attribute that will personally terms such as ‘safe’, ‘non-toxic’, ‘cost
benefit them. effective’ rather than more
generalized green messages such as
‘biodegradable’ or ‘ozone friendly’.
Will tolerate only minimal Making the use of product simple-
inconvenience in using green e.g. minimize or eliminate refilling
products and don’t want to go out of bottles. Select mainstream distributors
their way to buy them. wherever possible. Offer one-stop
shopping and eye appealing displays.

Will be analytical, eager to learn, and Reinforce product benefits with


can be cynical about corporate claims evidence of corporate performance
for green product unless they have and improvements. Educate

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Consumer Awareness towards Green
Marketing

independent verification. consumers about environmental


issues and your efforts through a
variety of means. Provide credible
environmental endorsements. use
labels in compliance with government
labeling guidelines, to convey precise,
detailed information about your
product and its packaging.
Will not expect companies to have Communicate your steps towards
perfect green credentials, but will sustainability and commitments to
look for a commitment to improve improvement. Seek feedback and
and evidence backed by facts. promote your efforts to respond to
customer concerns.

5.3 Green Buyers and Green Consumers

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Consumer Awareness towards Green
Marketing

Research about the identity and nature of green consumer has been the central
character in the development of green marketing, as business attempt to
understand and respond to external pressures to improve their environmental
performance. Marketing practitioners and academics are attempting to identify
and understand green consumers and their needs, and to develop market
offerings that meet these needs.

SEGMENTATION OF GREEN CONSUMERS

➢ True-Blue Greens- The most environmentally active segment of the


society.
➢ Greenback Greens- Those most willing to pay the highest premium
for green products.
➢ Spouts- Fence-sitters who have embraced environmentalism more
slowly.
➢ Grousers- Uninvolved or disinterested in environmental issues, who
feel the issues are too big for them to solve.
➢ Apathetic- The least engaged group who believe that the
environmental indifference is main stream.

Apart from this Natural Marketing Institute (NMI) divides the market into
following categories:

➢ Lohas- Very progressive on environment and society, looking for


ways to do more; not too concerned about price.
➢ Naturalites- Primarily concerned about personal health and wellness,
and use many natural products; would like to do more to protect the
environment.
➢ Conventional- Practical, like to see the results of what they do;
interested in green products that make sense in the long run.
➢ Drifters- Not too concerned about the environment, figuring we’ve got
time to fix the environmental problems; don’t necessarily buy a lot of
green products.
➢ Unconcerned- Have other priorities, not really sure what green
products are available and probably wouldn’t be interested anyway;
they buy products strictly on price, value, quality and convenience.

5.4 Consumer Information and Education

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Consumer Awareness towards Green
Marketing

If managers believe that consumers view greenness as a motivating variable,


they should invest in conveying information through advertising, direct
mailing, brand labels, in-store displays and pamphlets. The important points to
be noted here are:

a. Firms willing to provide clear, comprehensive and credible


information must ensure that consumers have low cost to access it.
b. Governmental policies and stakeholder initiatives can be important in
reducing consumers’ search, information or transaction costs.
c. Regulators can publish and disseminate it to the media by press
releases and post it on the internet.
d. Stakeholders can use the media as well as use their organization-
specific vehicles such as newsletters.

Green marketing can be successfully implemented by use of ICT in cost


effective way:

➢ By developing compelling, concise messages, plan innovative ways to


repeatedly deliver, identify appropriate links within network of
political, legislative, nonprofit organization and media, develop
concept based programs and events.
➢ Utilize extensive relationship with local and national media to get a
client’s message to the right media targets.
➢ Identify venues, plan tours, identify audiences, and organize meals,
speakers and press.
➢ Strategies and plan joint PR initiatives as well as joint advertising
campaigns and events to cross-promote companies and organization
campaigns.
➢ Help develop identify and branding for print, broadcast and digital
mediums.
➢ Consulting and creation of a corporate design, brochures, leaflets, info
materials.
➢ Develop web sites, e-mail campaigns, and banner advertising.
➢ Develop creative print, broadcast and digital advertising, identify
advertising targets and purchase appropriate media slots.

6. FUTURE GROWTH OF GREEN MARKETING

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Consumer Awareness towards Green
Marketing

There are many lessons 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:

Consumer Value Positioning:

 Design environmental products 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.

Calibration of Consumer Knowledge:

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Consumer Awareness towards Green
Marketing

 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.

Credibility of Product Claims:

 Employ environmental product and consumer benefit claims that are


specific and meaningful.
 Procure product endorsements or eco-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.

7. ANALYSIS OF EFFECTS OF GREEN MARKETING

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Consumer Awareness towards Green
Marketing

Size of sample:

This refers to the numbers of items to be selected from universe to constitute a


sample. An optimum sample is one, which fulfills the requirements of
efficiency, representativeness, reliability and flexibility.

Sample size - 64 consumers

Sample design:

A sample design is definite plan for obtaining a sample from a given


population. It refers to the technique or the procedure the researcher would
adopt in selecting items for the samples.

Sample design – consumers

Sample type:

Convenience sampling: - when population elements are selected for inclusion


in the sample based on the case of access; it can be called convenience
sampling.

This study is based on stratified sampling and a structured questionnaire has


been used to gather data from about 50 respondents to analyze effects of green
marketing. By analyzing respondents’ answers towards the questions helps to
understand the various aspects related to green marketing. The study attempts
to expand research on exploring how many people have positive attitude
towards green marketing and what are their thoughts on it.

RESULTS:
According to the analysis of questionnaire most of the respondents were not
aware about green marketing but after reading the questionnaire they realized
what it is all about. Of the 64 respondents 37 were male and 27 female. The
respondents were between the age group of 25-27 and 28-30 yrs.

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Consumer Awareness towards Green
Marketing

➢ Are you aware of the term “green marketing”?

The above bar graph indicates that 56% of respondents are familiar with the
term Green Marketing.

But many of them have a misconception with the term Green Marketing. They
consider Green Marketing as something related to vegetable market or

➢ Have you heard of any campaign related to Green Marketing?

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Consumer Awareness towards Green
Marketing

The above bar graph indicates that 44% of respondents are aware of the
campaign related to Green Marketing. Rest 56% does not know about any
campaign related to Green marketing.

➢ Have you been part of any such campaign?

The above graph indicates that only 17% of the total has been a part of Green
Marketing campaigns.

➢ Do you consider the environmental aspects of the products before


buying them?

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Consumer Awareness towards Green
Marketing

The above graph indicates that only 58% i.e. the majority of respondents
consider the environmental aspect sometimes. And, only 23% consider the
environmental aspect of the product while buying it.

➢ Do you think that green marketing and advertising are good sources of
information about green products and services?

The above graph indicates that only 69% i.e. the majority of respondents
consider green marketing and advertising as good sources of information for
green products and services. And, only 10% do not consider it.

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Consumer Awareness towards Green
Marketing

➢ Do you think that Green Marketing activities are good at addressing


environmental issues?

The above graph indicates that 87% of the respondents feel that Green
Marketing activities are good at addressing environmental issues while 13%
respondents do not.

➢ Do you think Green Marketing activities results in better product


quality?

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Consumer Awareness towards Green
Marketing

The above graph indicates that 70% of the respondents think that Green
Marketing activities results in better product quality.

➢ Do you think that Green Marketing strengthen company’s image in the


mind of consumer?

45
Consumer Awareness towards Green
Marketing

The above graph indicates that majority of the respondents i.e. 86% think that
Green Marketing strengthen company’s image in the mind of consumer.

➢ Do you think that companies that focus on environmental concerns


persuade consumers to buy products?

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Consumer Awareness towards Green
Marketing

The above graph indicates that the respondents the companies initiative
towards environment do influence the consumers to buy product. 63% of
respondents agree to it.

➢ Are you aware of the eco-labeling initiatives of the government?

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Consumer Awareness towards Green
Marketing

The above graph indicates that majority of the respondents i.e. 69% of the
respondents are not aware of the eco-labeling initiatives of the government.

8. RECOMMENDATIONS

Finite resources such as oil, metal, and even fresh water will become scarcer
and more expensive. If businesses do not become more efficient in using these
resources it will have a huge impact on the bottom line. Investing in Green
Products thus changes from ‘beyond doing good’ to ultimately ‘good business
sense’. Thus they should:

➢ Invest in research and create clean and environment friendly products.


➢ Clean energy sources such as solar, wind, bio-fuels and hydra power.
➢ Water harvesting.
➢ Recycle at every level.
➢ Move towards paperless office.
➢ Educate masses of the environment issues because they are going to be the
bulk consumers.
➢ Socially responsible investing in environment driven projects.
➢ Plant more trees.

The corporations must rethink:

➢ Their raw material and procurement strategies.


➢ They should develop new products
➢ They should redesign existing products and service.
➢ They should realize that pollution prevention can be a cost saving activity.
➢ They should steer their product and packaging designs to use less material.

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Consumer Awareness towards Green
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9. Conclusion

As the demand for green products undoubtedly exists, Green Marketing


provides an opportunity to the companies to increase their market-share by
introducing eco friendly products. Stricter environmental regulations across
the world, growing consumer preference for eco-friendly companies, and the
inherent cost advantages in lowering toxic waste, are encouraging industries
big and small to clean up.

Result of a survey conducted showed that, consumers are not overly


committed to improving their environment and may be looking to lay too
much responsibility on industry and government. Though it’s the
responsibility of the firm to produce products, which are having minimum
impact on the environment, but ultimately it’s the consumer who is having
responsibility to use eco friendly products. Consumers are not too much
concerned about the environment but as they have become more sophisticated,
they require clear information about how choosing one product over another
will benefit the environment. Consumer education results in their
empowerment. Empowered consumers choose environmentally preferable
products when all else is equal.

Ultimately green marketing requires that consumers ‘Think Green, Think


clean, Think Eco-friendly’ i.e. they want a cleaner environment and are
willing to "pay" for it, possibly through higher priced goods, modified
individual lifestyles, or even governmental intervention. Until this occurs it
will be difficult for firms alone to lead the green marketing revolution.

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Consumer Awareness towards Green
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10. BIBLIOGRAPHY

 Kotler Philips & G. Armstrong. Principles of marketing. New Delhi,


Prentice Hall.

 Richa Agrawal, Green Marketing: An Emerging Trend (PJMR, Vol.


5,April 2000)

 Excerpts from the survey report conducted by BT-TERI.

 www.ecomall.com

 www.greenmarketingcorner.com

 www.greenpeace.org

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Consumer Awareness towards Green
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11. ANNEXURE

Questionnaire

Consumer Awareness towards Green Marketing


Name:
Age:
Gender:
Are you aware of the term “green marketing”?
Yes
No

What do you understand by the term “Green Marketing”?

Have you heard of any campaign related to Green Marketing?


Yes

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Consumer Awareness towards Green
Marketing

No

Have you been part of any such campaign?


Yes
No

Do you consider the environmental aspects of the products


before buying them?
Yes
No
Sometimes

Do you think that green marketing and advertising are good


sources of information about green products and services?
Yes
No
Sometimes

Do you think that Green Marketing activities are good at


addressing environmental issues?
Yes
No

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Consumer Awareness towards Green
Marketing

Do you think Green Marketing activities results in better


product quality?
Yes
No

Do you think that Green Marketing strengthen company’s


image in the mind of consumer?
Yes
No
Do you think that companies that focus on environment al
concerns persuade consumers to buy products?
Yes
No

Are you aware of the eco-labeling initiatives of the


government?
Yes
No

Thank You

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