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By Varun S 8th Sem IEM 1BM08IM06 0 Click to edit Master subtitle style


Guided By VN Shailaja Asst.

Green Marketing refers to holistic marketing concept

wherein the production, marketing consumption an disposal of products and services happen in a manner that is less detrimental to the environment with growing awareness about the implications of global warming non-biodegradable solid waste, harmful impact of pollutants etc., both marketers and consumers are becoming increasingly sensitive to the need for switch in to green products and services


Green marketing involves developing and promoting products

and services that satisfy customer's want and need for Quality, Performance, Affordable Pricing and Convenience without having a detrimental input on the environment.

Green marketing companies seek to go above and beyond

traditional marketing by promoting environmental core values in the hope that consumers will associate these values with their company or brand. Engaging in these sustainable activities can lead to creating a new product line that caters to a new target market.

There is a popular saying that emphasizes the importance

"Take care of Earth and the Earth will take care of you..."

Green marketing refers to all activities designed to generate

and facilitate any exchanges intend to satisfy human needs or wants, such that satisfaction of these needs & wants occurs, with minimal detrimental impact on the natural environment. 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.

Polonsky (1994) defines green marketing as all activities

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 product modification, changes to the production process, packaging changes, as well 5/14/12

The green marketing has evolved over a period of time.

Evolution of Green Marketing

According to Peattie (2001), the evolution of green marketing has

three phases:

v 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. focus shifted on clean technology that involved designing of innovative new products, which take care of pollution and waste issues. prominence in the late 1990s and early 2000.

v Second phase was "Environmental" green marketing and the

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


Why Green Marketing?

Proper utilization of resources:
As resource are limited & wants are unlimited, it is important for the marketers to utilize the resources efficiently without waste as well as to achieve the organization's objective.

Interest of customers towards environment:

Various studies by environmentalists indicate that people are concerned about the environment and are changing their behavior pattern so as to be less hostile towards it. Now we see that most of the consumers, both individual and industrial, are becoming more concerned about environment friendly products.



The products that are manufactured through green technology and that cause no environmental hazards are called green products. Promotion of green technology and green products is necessary for conservation of natural resources and sustainable development. We can define green products by following measures:
Products those are originally grown Products those are recyclable, reusable and biodegradable Products with natural ingredients Products containing recycled contents, non-toxic chemical Products contents under approved chemical Products that do not harm or pollute the environment Products that will not be tested on animals
5/14/12 Products that have eco-friendly packaging i.e. reusable, refillable

Need for Standardization

Challenges in Green Marketing

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.

Patience and Perseverance

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.


Green Marketing Mix

When companies come up with new innovations like eco friendly products, they can access new markets, enhance their market shares, and increase profits. Just as we have 4Ps product, prices, place and promotion in marketing, we have 4Ps in green marketing too, but they are a bit different.


The ecological objectives in planning products are to reduce resource consumption and pollution and to increase conservation of scarce resources.
v For example, Nike is the first among the shoe companies to market itself as green.

It is marketing its Air Jordan shoes as environment-friendly, as it has significantly reduced the usage of harmful glue adhesives.


The choice of where and when to make a product available will have significant impact on the customers. Very few customers will go out of their 5/14/12 way to buy green products.


Price is a critical and important factor of green marketing mix. 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. Green marketing should take all these facts into consideration while charging a premium price.
v Wal-Mart unveiled its first recyclable cloth shopping bag. IKEA started charging

consumers when they opted for plastic bags and encouraged people to shop using its "Big Blue Bag.


Green promotion involves configuring the tools of promotion, such as advertising, marketing materials, signage, white papers, web sites, videos and presentations by keeping people, planet and profits in mind.
v British petroleum (BP) displays gas station which its sunflower motif and boasts

of putting money into solar power. Indian Tobacco Company has introduced environmental-friendly papers and boards, which are free of elemental chlorine.


Marketing Strategies
The marketing strategies for green marketing include: Marketing Audit (including internal

and external situation analysis).


Golden Rules - Key For Successful Green Marketing

Know you're


Green marketing has been widely adopted by the firms worldwide and the following are the possible reasons cited for this wide adoption:
Opportunities Government Pressure Competitive Pressure Social Responsibility Cost of Profit Issues

Green Marketing In ToyotaA Case Study

Toyota is well known for having the first hybrid-electric car on sale, the Prius. They conducted business with the idea to contribute to the sustainable development of the society and therefore of the Earth. Toyota has always tried to find the right balance between economic growth and environmental preservation. And the key to keep that balance is the everyday technological innovation. Since 2003, Toyota has been establishing regional environmental committees to promote environmental initiatives. These committees take initiatives in all Toyota sites but also outside the sites .Altogether, they form the Toyota Environmental Committee. All the plants of Toyota are also equipped with the EMS (environmental management system) to make sure they comply with the internal requirements.


They identified four main issues expected in the period2020-2030 like

Energy/Global Warming, Recycling of resources, Substances of concern, Atmospheric Quality and solutions have been adopted and implemented inside the company in all areas of activity. Among those solutions some key points can be identified: CO2 emissions management, reinforcement of environmental management by business partners, elimination of substances of concern, cooperation to develop a recycling-based society.
Toyota also edited the 'Toyota Green Purchasing Guidelines'. This very

detailed document draws the main green values, rules, expectations regarding to its supply chain. This document is transmitted to all Toyota suppliers around the world and these have to comply with what is written.


What did they do?

Toyota is developing a third generation of hybrid engines while many manufacturers

are only developing their first generation. Besides, Toyota is also developing new hybrid models, including a SUV and a sport car. Hybrid Prius:

Toyota was the first brand to introduce an ecological car with the Prius which was at the time the first Hybrid car in the world. Today this one is the only familial car giving to the buyer the opportunity to get a 15% premium and to drive ecologically. The Prius is not the only model to give to consumers l5% premium since the iQ also allows it. This model is a very small economic car. Toyota also proposes 2 other models rejecting less than 115g/km of CO2, the Aygo and the Yaris.


Toyota also began a research on a hydrogenated biodiesel fuel, obtained

from a second generation biodiesel fuel

The group is finally working on the 'ultimate eco-car' which will make

sustainability mobility a reality.

In 2002, Toyota began to work on a hydrogen-powered car. This car was

using the original hybrid technology as core technology. The development of this car is still continuing. At the same time Toyota is testing many alternatives, many new sources of energy in order to find the best solution for the future.


How did they market?

They marketed their products by starting a campaign, which states their

Environmental vision: "Zero emission cars, Zero waste plants, and the greener tomorrow

Through an advertisement by positioning themselves by value proposition,

"We see beyond cars"


Prius Commercial: Harmony between Man, Nature and Machine

Toyota's marketing theme for the 2010 Toyota Prius was: "Harmony

Between Man, Nature And Machine".

Highlighting the car's latest features, the campaign paints the Prius as

offering what buyers want--advance technology, more power, safety, interior space, while simultaneously giving nature what it wants: lower tailpipe emissions

2 0 1 0 T o y o t a P r iu s - H a r m o n y - T V C o m m e r c ia l - Y o u T u b e .f lv 2 0 1 1 T o y o t a P r iu s C o m m e r c ia l ( to y o


Other Firms Adopting Green Marketing


Green Marketing through Other Channels of Marketing



Signature Marketing: A Future Way of Green Advertising


Green marketing should not be considered as just one more approach to marketing, but has to be pursued with much greater vigor, as it has an environmental and social dimension to it. Marketers also have the responsibility to make the consumers understand the need for and benefits of green products as compared to non-green ones. In green marketing, consumers are willing to pay more to maintain a cleaner and greener environment.

10 years down the line, green-compliance would be an absolute necessity for all brands, and those that don't catch up are going to be left behind to die.


1. Mishra etal./Journal of Engineering, Science and

Management Education/Vol. 3, 2010/9-14

2. marketing 3. 4. 5. 6.

7. Business Strategy and the Environment Bus. Strat. Env.

11, 285297 (2002)