Lally Report

8/12/2019 Lally Report

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Introduction

GREEN MARKETING CONCEPT

'I'll go out for a breath of fresh air' is an often-heard phrase. But how many of us realize thatthis has become irrelevant in today's world, because the quality of air in our cities is anythingbut fresh.The moment you step out of the house and are on the road you can actually see theair getting polluted; a cloud of smoke from the exhaust of a bus, car, or a scooter; smokebillowing from a factory chimney, flyash generated by thermal power plants, and speeding carscausing dust to rise from the roads. Natural phenomena such as the eruption of a volcano andeven someone smoking a cigarette can also cause air pollution.

Air pollution is aggravated because of four developments: increasing traffic, growing cities,rapid economic development, and industrialization. The Industrial Revolution in Europe in the19th century saw the beginning of air pollution as we know it today, which has graduallybecome a global problem. Air pollution is nothing new. Ever since the discovery of fire, less-than-desirable substances have been vented into the air. Every Govt. is trying to minimize thisproblem. But regardless of the efforts, air pollution continues to be a serious local and world-wide problem.

Although environmental issues influence all human activities, few academic disciplines haveintegrated green issues into their literature. This is especially true of marketing. As societybecomes more concerned with the natural environment, businesses have begun to modify theirbehavior in an attempt to address society's "new" concerns. Some businesses have been quickto accept concepts like environmental management systems and waste minimization, and haveintegrated environmental issues into all organizational activities.

One business area where environmental issues have received a great deal of discussion in thepopular and professional press is marketing. Terms like "Green Marketing" and "EnvironmentalMarketing" appear frequently in the popular press. Many governments around the world havebecome so concerned about green marketing activities that they have attempted to regulatethem .For example, in the United States (US) the Federal Trade Commission and the National

Association of Attorneys-General have developed extensive documents examining greenmarketing issues. According to the American Marketing Association, green marketing is themarketing of products that are presumed to be environmentally safe. Thus green marketingincorporates a broad range of activities, including product modification, changes to theproduction process, packaging changes
http://en.wikipedia.org/wiki/American_Marketing_Associationhttp://en.wikipedia.org/wiki/American_Marketing_Association


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Evolution of Green Marketing

The green marketing has evolved over a period of time. According to Peattie (2001), theevolution of green marketing has three phases. First phase was termed as "Ecological" greenmarketing, and during this period all marketing activities were concerned to help environmentproblems and provide remedies for environmental problems. Second phase was"Environmental" green marketing and the focus shifted on clean technology that involveddesigning of innovative new products, which take care of pollution and waste issues. Thirdphase was "Sustainable" green marketing. It came into prominence in the late 1990s and early2000.

HISTORY

The term Green Marketing came into prominence in the late 1980s and early 1990s. The

American Marketing Association (AMA) held the first workshop on "Ecological Marketing" in1975. The proceedings of this workshop resulted in one of the first books on green marketingentitled "Ecological Marketing".

The Corporate Social Responsibility (CSR) Reports started with the ice cream seller Ben & Jerry'swhere the financial report was supplemented by a greater view on the company'senvironmental impact. In 1987 a document prepared by the World Commission onEnvironment and Development defined sustainable development as meeting the needs of thepresent without compromising the ability of future generations to meet thei r own need, thisbecame known as the Brundtland Report and was another step towards widespread thinking onsustainability in everyday activity. Two tangible milestones for wave 1 of green marketing came

in the form of published books, both of which were called Green Marketing. They were by KenPeattie (1992) in the United Kingdom and by Jacquelyn Ottman (1993) in the United States ofAmerica.

According to Jacquelyn Ottman, (author of "The New Rules of Green Marketing: Strategies,Tools, and Inspiration for Sustainable Branding" (Greenleaf Publishing and Berrett-KoehlerPublishers, February 2011)) from an organizational standpoint, environmental considerationsshould be integrated into all aspects of marketing new product development andcommunications and all points in between. The holistic nature of green also suggests thatbesides suppliers and retailers new stakeholders be enlisted, including educators, members ofthe community, regulators, and NGOs .Environmental issues should be balanced with primary

customer needs.The past decade has shown that harnessing consumer power to effect positive environmentalchange is far easier said than done. The so-called "green consumer " movements in the U.S. andother countries have struggled to reach critical mass and to remain in the forefront of shoppers'minds. While public opinion polls taken since the late 1980s have shown consistently that asignificant percentage of consumers in the U.S. and elsewhere profess a strong willingness tofavor environmentally conscious products and companies, consumers' efforts to do so in real
http://en.wikipedia.org/wiki/Sustainable_developmenthttp://en.wikipedia.org/wiki/Jacquelyn_Ottmanhttp://en.wikipedia.org/wiki/Jacquelyn_Ottmanhttp://en.wikipedia.org/wiki/Berrett-Koehler_Publishershttp://en.wikipedia.org/wiki/Berrett-Koehler_Publishershttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Holistichttp://en.wikipedia.org/wiki/List_of_environmental_issueshttp://en.wikipedia.org/wiki/Pasthttp://en.wikipedia.org/wiki/Decadehttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/w/index.php?title=Green_consumer&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Green_consumer&action=edit&redlink=1http://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Decadehttp://en.wikipedia.org/wiki/Pasthttp://en.wikipedia.org/wiki/List_of_environmental_issueshttp://en.wikipedia.org/wiki/Holistichttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Berrett-Koehler_Publishershttp://en.wikipedia.org/wiki/Berrett-Koehler_Publishershttp://en.wikipedia.org/wiki/Jacquelyn_Ottmanhttp://en.wikipedia.org/wiki/Jacquelyn_Ottmanhttp://en.wikipedia.org/wiki/Sustainable_development


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life have remained sketchy at best One of green marketing's challenges is the lack of standardsor public consensus about what constitutes "green," according to Joel Makower, a writer ongreen marketing. In essence, there is no definition of "how good is good enough" when itcomes to a product or company making green marketing claims. This lack of consensus byconsumers, marketers, activists, regulators, and influential people has slowed the growth of

green products, says Makower, because companies are often reluctant to promote their greenattributes, and consumers are often skeptical about claims.

Despite these challenges, green marketing has continued to gain adherents, particularly in lightof growing global concern about climate change. This concern has led more companies toadvertise their commitment to reduce their climate impacts, and the effect this is having ontheir products and services

Why Green Marketing?

As resources are limited and human wants are unlimited, it is important for the marketers toutilize the resources efficiently without waste as well as to achieve the organization's objective.So green marketing is inevitable.

There is growing interest among the consumers all over the world regarding protection ofenvironment. Worldwide evidence indicates people are concerned about the environment andare changing their behavior. As a result of this, green marketing has emerged which speaks forgrowing market for sustainable and socially responsible products and services. WHY GREENMARKETING?

It is really scary to read these pieces of information as reported in the Times recently: "Airpollution damage to people, crops and wildlife in US. Total tens of billions of dollars each year"."More than 12 other studies in the US, Brazil Europe, Mexico, South Korea and Taiwan haveestablished links between air pollutants and low birth weight premature birth still birth andinfant death". As resources are limited and human wants are unlimited, it is important for themarketers to utilize the resources efficiently without waste as well as to achieve theorganization's objective. So green marketing is inevitable. There is growing interest among theconsumers all over the world regarding protection of environment. Worldwide evidence

indicates people are concerned about the environment and are changing their behavior. As aresult of this, green marketing has emerged which speaks for growing market for sustainableand socially responsible products and services. Thus the growing awareness among theconsumers all over the world regarding protection of the environment in which they live,People do want to bequeath a clean earth to their
http://en.wikipedia.org/wiki/Joel_Makowerhttp://en.wikipedia.org/wiki/Joel_Makower


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Framework

Ecological Marketing

Ecological marketing was based on the idea that environmental protection and resourceconservation can be better advanced through less regulation by the public sector and moreenterprise in the private sector. This idea, in turn, is based on the premise that the ecologicallyconcerned consumer is a legitimate but largely unused market segment one that isidentifiable, accessible and measurable. In the 1970s the importances of a small number ofenvironmental issues like oil use or pollution for a narrow range of industries (for example carsand chemicals) was framed as something that was relevant to engineers, lawyers and marketerswithin companies.

Originally proposed at the American Marketing Association first conference on ecologicalmarketing in 1975, the idea was compatible with the antiregulatory mood of these days in theU.S. It found support at the 1979 conference, who felt that government and business shouldstrike a better balance in the division of responsibility for the management of negative socialexternalities.

Green/ environmental marketing

Unfortunately, a majority of people believe that ecological (green) marketing refers solely tothe promotion or advertising of products with environmental characteristics. Terms likePhosphate Free, Recyclable, Refillable, Ozone Friendly, and Environmentally Friendly are someof the things consumers most often associate with green marketing. While these terms aregreen marketing claims, in general green marketing is a much broader concept, one that can be

applied to consumer goods, industrial goods and even services. Thus, green marketingincorporates a broad range of activities, including product modification, changes of theproduction process, packaging changes, as well as modifying advertising. Green marketingcame into prominence in the late 1980s and early 1990s, it was first discussed much earlier. TheAmerican Marketing Association (short: AMA) held the first workshop on EcologicalMarketing in 1975. The proceedings of this workshop resulted in one of the first books ongreen marketing entitled Ecological Marketing. According to Dainora Grundey and RodicaMilena Zaharia Green or Environmental Marketing consists of all activities designed to generateand facilitate any exchanges intended to satisfy human needs or wants, such that thesatisfaction of these needs and wants occurs, with minimal harmful impact on the natural

environment .


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Greenhouse gas reduction market

The emerging greenhouse gas reduction market can potentially catalyze projects withimportant local environmental, economic, and quality-of-life benefits. The Kyoto Protocol sClean Development Mechanism (CDM), for example, enables trading between industrial and

developing nations, providing a framework that can result in capital flows to environmentallybeneficial development activities. Although the United States is not participating in the KyotoProtocol, several US programs enable similar transactions on a voluntary and regulatory basis.

While international trade in greenhouse gas reductions holds substantial promise as a source ofnew funding for sustainable development, this market can be largely inaccessible to manysmaller-scale projects, remote communities, and least developed localities. To facilitateparticipation and broaden the benefits, several barriers must be overcome, including: a lack ofmarket awareness among stakeholders and prospective participants; specialized, somewhatcomplicated participation rules; and the need for simplified participation mechanisms for smallprojects, without which transaction costs can overwhelm the financial benefits of participation.

If the barriers are adequately addressed, greenhouse gas trading can play an important rolesupporting activities that benefit people s lives and the environment.

WHAT EXACTLY IS GREEN MARKETING

According to American Marketing Association Green Marketing is the marketing of productsthat are presumed to be environmentally safe. Thus green marketing incorporates a broadrange of activities, including product modification, changes to the production process,packaging changes, as well as modifying advertising. Yet defining green marketing is not asimple task. Other similar terms used are Environmental Marketing and Ecological Marketing.The term green marketing came into prominence in the late 1980s and early 1990s. TheAmerican Marketing Association (AMA) held the first workshop on "Ecological Marketing" in1975. The proceedings of this workshop resulted in one of the first books on green marketingentitled "Ecological Marketing"

So the definition which encompasses all major components of other definitions is: "Green orEnvironmental Marketing consists of all activities designed to generate and facilitate anyexchanges intended to satisfy human needs or wants, such that the satisfaction of these needsand wants occurs, with minimal detrimental impact on the natural environment.
http://en.wikipedia.org/wiki/Kyoto_Protocolhttp://en.wikipedia.org/wiki/Kyoto_Protocolhttp://en.wikipedia.org/wiki/CDMhttp://en.wikipedia.org/wiki/Greenhousehttp://en.wikipedia.org/wiki/Gashttp://en.wikipedia.org/wiki/Sustainable_developmenthttp://en.wikipedia.org/wiki/Tradehttp://en.wikipedia.org/wiki/Peoplehttp://en.wikipedia.org/wiki/Peoplehttp://en.wikipedia.org/wiki/Peoplehttp://en.wikipedia.org/wiki/Tradehttp://en.wikipedia.org/wiki/Sustainable_developmenthttp://en.wikipedia.org/wiki/Gashttp://en.wikipedia.org/wiki/Greenhousehttp://en.wikipedia.org/wiki/CDMhttp://en.wikipedia.org/wiki/Kyoto_Protocol


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Adoptability

In 1989, 67 percent of Americans stated that they were willing to pay 5-10 percent more for

ecologically compatible products. By 1991, environmentally conscious individuals were willingto pay between 15-20 percent more for green products Today, more than one-third ofAmericans say they would pay a little extra for green products

An important challenge facing marketers is to identify which consumers are willing to pay morefor environmentally friendly products. It is apparent that an enhanced knowledge of the profileof this segment of consumers would be extremely useful.

Everett Rogers, communication scholar and author of Diffusion of Innovations, claims that thefollowing five factors can help determine whether a new idea will be adopted or not, includingthe idealism of the shift towards green:

1. Relative advantage : is the degree to which the new behavior is believed to accrue morebeneficial outcomes than current practice.

2. Observability : is how easy it is to witness the outcomes of the new behavior.3. Trialability : is the ease with which the new behavior can be tested by an individual

without making a full commitment.4. Compatibility : is the degree to which the new behavior is consistent with current

practice.5. Complexity : is how difficult the new behavior is to implement.

GOLDEN RULES OF GREEN MARKETING

1. Know your Customer : Make sure that the consumer is aware of and concerned about theissues that your product attempts to address, (Whirlpool learned the hard way that consumerswouldn't pay a premium for a CFC-free refrigerator because consumers dint know what CFCswere.).2. Educating your customers : isn't just a matter of letting people know you're doing whateveryou're doing to protect the environment, but also a matter of letting them know why itmatters. Otherwise, for a significant portion of your target market, it's a case of "So what?" and

your green marketing campaign goes nowhere.3.Being Genuine & Transparent : means that a) you are actually doing what you claim to bedoing in your green marketing campaign and b) the rest of your business policies are consistentwith whatever you are doing that's environmentally friendly. Both these conditions have to bemet for your business to establish the kind of environmental credentials that will allow a greenmarketing campaign to succeed.


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4.Reassure the Buyer : Consumers must be made to believe that the product performs the jobit's supposed to do-they won't forego product quality in the name of the environment.5.Consider Your Pricing : If you're charging a premium for your product-and manyenvironmentally preferable products cost more due to economies of scale and use of higher-

quality ingredients-make sure those consumers can afford the premium and feel it's worth it.

6.Giving your customers an opportunity to participate : means personalizing the benefits ofyour environmentally friendly actions, normally through letting the customer take part inpositive environmental action

7.Thus leading brands should recognize that consumer expectations have changed:It is notenough for a company to green its products; consumers expect the products that theypurchase pocket friendly and also to help reduce the environmental impact in their own livestoo.

WHY IS GREEN MARKETING CHOSEN BY MOST MARKETERS?

Most of the companies are venturing into green marketing because of the following reasons

Adoption of Green Marketing

There are basically five reasons for which a marketer should go for the adoption of greenmarketing. They are -

Opportunities or competitive advantage Corporate social responsibilities (CSR) Government pressure Competitive pressure Cost or profit issues

1. OPPORTUNITIES OR COMPETITIVE ADVANTAGE

In India, around 25% of the consumers prefer environmental-friendly products, and around28% may be considered healthy conscious. There fore, green marketers have diverse andfairly sizeable segments to cater to. The Surf Excel detergent which saves water (advertisedwith the message "do bucket paani roz bachana") and the energy-saving LG consumers


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The car's dashboard comes with an unusual feature: a screen that lets the driver know which ofthe two engines is in use and how efficiently fuel is being used at any given moment; accordingto anecdotes, Prius owners try to beat their previous record each time they drive!

When the car was introduced, ads focused on superior performance evidenced by a quiet ride,

and supplemental ads touted its environmental bona fides. With energy prices on the rise, thePrius is now being marketed for its superior fuel efficiency, and a PR machine fuels efforts tolink the car to environmentally conscious celebrities and causes. Some owners, it is reported,even buy the car for what is being called "Conspicuous Conservation" letting all know thatthey are environmentally astute.

This is not to imply that all firms who have undertaken environmental marketing activitiesactually improve their behavior. In some cases firms have misled consumers in an attempt togain market share. In other cases firms have jumped on the green bandwagon without

considering the accuracy of their behavior, their claims, or the effectiveness of their products.This lack of consideration of the true "greenness" of activities may result in firms making falseor misleading green marketing claims.

2. SOCIAL RESPONSIBILITY

Many firms are beginning to realize that they are members of the wider community andtherefore must behave in an environmentally responsible fashion. This translates into firms thatbelieve they must achieve environmental objectives as well as profit related objectives. Thisresults in environmental issues being integrated into the firm's corporate culture. There areexamples of firms adopting both strategies. Organizations like the Body Shop heavily promotethe fact that they are environmentally responsible. While this behavior is a competitiveadvantage, the firm was established specifically to offer consumers environmentallyresponsible alternatives to conventional cosmetic products. This philosophy is directly tied tothe overall corporate culture, rather than simply being a competitive tool.

Fund managers and corporate developers too, are taking into account the environmentalviability of the company they invest in Venture Capitalists are investing in green businessbecause they believe it's a growth opportunity . Britain based HSBC became the world's first

bank to go carbon neutral late last year and is now turning its 11000 buildings in 76 countriesworldwide into models of energy efficiency." our customers have told us that they decidewhere they shop based on whether the business is a good neighbor. Says David North, Tescoscommunity director. An example of a firm that does not promote its environmental initiatives isCoca-Cola


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They have invested large sums of money in various recycling activities, as well as havingmodified their packaging to minimize its environmental impact. While being concerned aboutthe environment, Coke has not used this concern as a marketing tool. Thus many consumersmay 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 theorganization, is Walt Disney World (WDW). WDW has an extensive waste managementprogram and infrastructure in place, yet these facilities are not highlighted in their generaltourist promotional activities.

friendly Many companies have started realizing that they must behave in an well as profitrelated objectives. The HSBC became the world's first bank to go carbon-neutral last year.Other examples include Coca-Cola, which has invested in various recycling activities. WaltDisney World in Florida, US, has an extensive waste management program and infrastructure inplace.

3. GOVERNMENTAL PRESSURE

As with all marketing related activities, governments want to "protect" consumers and society;this protection has significant green marketing implications. Governmental regulations relatingto environmental marketing are designed to protect consumers in several ways, 1) reduceproduction of harmful goods or by-products; 2) modify consumer and industry's use and/orconsumption of harmful goods; or 3) ensure that all types of consumers have the ability to

evaluate the environmental composition of goods. Governments establish regulations designedto control the amount of hazardous wastes produced by firms.

California's Republican Gov. Arnold Schwarzenegger met with British Labour Prime MinisterTony Blair to promote the idea of transatlantic carbon emissions market. He also wants toreduce his state's greenhouse gas emissions to 80% below 1990 levels by 2050.

In Germany the Greens and the conservatives recently agreed to join forces to run the city govt.of Frankfurt, the first such coalition in country's history.

Many by-products of production are controlled through the issuing of various environmentallicenses, thus modifying organizational behavior. In some cases governments try to "induce"final consumers to become more responsible. For example, some governments have introducedvoluntary curb-side recycling programs, making it easier for consumers to act responsibly. Inother cases governments tax individuals who act in an irresponsible fashion. For example inAustralia there is a higher gas tax associated with leaded petrol.


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New Delhi , the India's capital was getting polluted gradually at a very fast pace till SupremeCourt of India forced a change of fuel on it. In 2002, a directive was issued to completely adoptCNG in all public transport systems to curb pollution.

One of the more recent publicized environmental regulations undertaken by governments hasbeen the establishment of guidelines designed to "control" green marketing claims. Theseregulations include the Australian Trade Practices Commission's (TPC) "Environmental Claims inMarketing - A Guideline , the US Federal Trade Commission's (FTC) "Guides for the Use ofEnvironmental Marketing Claims" and the regulations suggested by the National Association ofAttorneys-General .These regulations are all designed to ensure consumers have theappropriate information which would enable them to evaluate firm's environmental claims. Inaddition to these guidelines many States in the US have introduced legislation to controlvarious environmental marketing activities.

Investment analysts are starting to see the environmental awareness of managers as abarometer of the likely long term success of their companies. Green policies, they say, tend toindicate hands on management, high consumer confidence and good corporate governance.HSBC won't do deals with cos. on projects like oil pipelines through Russia, that don't measureup to their environmental, social and governance standards Various regulations rare framed bythe government to protect consumers and the society at large. The Indian government too hasdeveloped a framework of legislations to reduce the production of harmful goods and byproducts. These reduce the industry's production and consumers' consumption of harmfulgoods, including those detrimental to the environment; for example, the ban of plastic bags in

Mumbai, prohibition of smoking in public areas, etc.

4. COMPETITIVE PRESSURE

Another major force in the environmental marketing area has been firms' desire to maintaintheir competitive position. In many cases firms observe competitors promoting theirenvironmental behaviors and attempt to emulate this behavior. In some instances thiscompetitive pressure has caused an entire industry to modify and thus reduce its detrimentalenvironmental 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 recycledphotocopier paper by other manufacturers. In another example when one tuna manufacturestopped using driftnets the others followed suit

The green marketing initiatives by niche companies such as Body Shop and Green & Black haveprompted many mainline competitors to follow suit.


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

* Philips Light's CFL

Philips Lighting's first shot at marketing a standalone compact fluroscent light (CFL) bulb wasEarth Light, at $15 each versus 75 cents for incandescent bulbs. The product had difficultyclimbing out of its deep green niche. The company re-launched the product as "Marathon,"underscoring its new "super long life" positioning and promise of saving $26 in energy costsover its five-year lifetime.Finally, with the U.S. EPA's Energy Star label to add credibility as wellas new sensitivity to rising utility costs and electricity shortages, sales climbed 12 percent in anotherwise flat market

In other cases firms attempt to find end-of-pipe solutions, instead of minimizing waste. In thesesituations firms try to find markets or uses for their waste materials, where one firm's wastebecomes another firm's input of production. One Australian example of this is a firm whoproduces acidic waste water as a by-product of production and sells it to a firm involved inneutralizing base materials.

Cost-Reduction

Reduction of harmful waste may lead to substantial cost savings. Sometimes, many firmsdevelop symbiotic relationship whereby the waste generated by one company is used byanother as a cost-effective raw material. For example, the fly ash generated by thermal powerplants, which would otherwise contributed to a gigantic quantum of solid waste, is used tomanufacture fly ash bricks for construction purposes.


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GREEN MARKETING STRATEGIES

V/S

Conventional Marketing

Green Marketing Conventional Marketing

Consumers Human beings withlives Consumers with lifestyles

Products Cradle -to cradle flexibleservices

cradle -to- gave one size fits forall products

Marketing AndCommunication

Educational values Selling oriented and benefits

Corporate Proactive,interdependent,cooperative, holistic,long term

Receptive,independent,competitive,departmentalized,short term oriented profit

maximizing.


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Green Marketing Mix

Every company has its own favorite marketing mix. Some have 4 P's and some have 7 P's ofmarketing mix. The 4 P's of green marketing are that of a conventional marketing but thechallenge before marketers is to use 4 P's in an innovative manner.

The four Ps of green marketing

Like conventional marketers, green marketers must address the 'four Ps' in innovative ways.

1. Product.2. Price.3. Place.4. Promotion.

A model of a green marketing- mix should, of course, contain all 4Ps:

1-Product : A producer should offer ecological products which not only must not contaminatethe environment but should protect it and even liquidate existing environmental damages.Entrepreneurs wanting to exploit emerging green markets will either:

identify customers' environmental needs and develop products to address these needs;or

Develop environmentally responsible products to have less impact than competitors.

The increasingly wide varieties of products on the market that support sustainabledevelopment and are good for the triple bottom line include:

Products made from recycled goods, such as Quik'N Tuff housing materials made fromrecycled broccoli boxes.

Products that can be recycled or reused. Efficient products, which save water, energy or gasoline, save money and reduce

environmental impact. Queensland's only waterless printer, Printpoint, reducesoperating costs by using less water than conventional printers and is able to pass thesavings on to customers.


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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. Organic products many consumers are prepared to pay a premium for organic

products, which offer promise of quality. Organic butchers, for example, promote theadded qualities such as taste and tenderness. A service that rents or loans products such as toy libraries. Certified products, which meet or exceed environmentally responsible criteria.

Whatever the product or service, it is vital to ensure that products meet or exceed the qualityexpectations of customers and is thoroughly tested.

2-Price : Prices for such products may be a little higher than conventional alternatives. Buttarget groups like for example LOHAS are willing to pay extra for green products. Pricing is acritical element of the marketing mix. Most customers will only be prepared to pay a premiumif there is a perception of additional product value.

This value may be improved performance, function, design, visual appeal or taste.Environmental benefits are usually an added bonus but will often be the deciding factorbetween products of equal value and quality.

Environmentally responsible products, however, are often less expensive when product lifecycle costs are taken into consideration, for example fuel-efficient vehicles, water-efficient

printing and non-hazardous products.

3.Place : A distribution logistics is of crucial importance; main focus is on ecological packaging.Marketing local and seasonal products e.g. vegetables from regional farms is more easy to bemarketed green than products imported.

The choice of where and when to make a product available will have significant impact on thecustomers you attract.

Very few customers will go out of their way to buy green products merely for the sake of it.Marketers looking to successfully introduce new green products should, in most cases, positionthem 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 toproject your own image rather than being dominated or compromised by the image of thevenue. The location must differentiate you from your competitors. This can be achieved by in-


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store promotions and visually appealing displays or using recycled materials to emphasize theenvironmental and other benefits.

4.Promotion : A communication with the market should put stress on environmental aspects,for example that the company possesses a CP certificate or is ISO 14000 certified. This may bepublicized to improve a firms image. Furthermore, the fact that a company spendsexpenditures on environmental protection should be advertised. Third, sponsoring the naturalenvironment is also very important. And last but not least, ecological products will probablyrequire special sales promotions. Promoting products and services to target markets includespaid advertising, public relations, sales promotions, direct marketing and on-site promotions.

Smart green marketers will be able to reinforce environmental credibility by using sustainablemarketing and communications tools and practices. For example, many companies in thefinancial industry are providing electronic statements by email.

E-marketing is rapidly replacing more traditional marketing methods, and printed materials canbe 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 environmentalcommitment. To reduce the use of plastic bags and promote their green commitment, someretailers sell shopping bags, for example those produced by Land care Australia, Clean UpAustralia and Planet Ark, under the banner of the Go Green Environment Fund.

The key to successful green marketing is credibility. Never overstate environmental claims orestablish unrealistic expectations, and communicate simply and through sources that peopletrust.

Promote your green credentials and achievements. Publicize stories of the company's andemployees' green initiatives. Enter environmental awards programs to profile environmentalcredentials to customers and stakeholders

Additional Social Marketing "P's" that are used in this process are as followed :

Publics -- Effective Social Marketing knows its audience, and can appeal to multiple groupsof people. "Public" is the external and internal groups involved in the program. Externalpublics include the target audience, secondary audiences, policymakers, and gatekeepers,while the internal publics are those who are involved in some way with either approval orimplementation of the program.


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Partnershi p-- Most social change issues, including "green" initiatives, are too complex forone person or group to handle. Associating with other groups and initiatives to team upstrengthens the chance of efficacy.

Policy --Social marketing programs can do well in motivating individual behavior change, butthat is difficult to sustain unless the environment they're in supports that change for thelong run. Often, policy change is needed, and media advocacy programs can be an effectivecomplement to a social marketing program.

Purse Strings -- How much will this strategic effort cost? Who is funding the effort?

The level of greening-strategic, quasi-strategic, or tactical dictates exactly what activities shouldbe under-taken by a company. Strategic greening in one area may or may not be leveragedeffectively in others. A firm could make substantial changes in production processes but opt notto leverage them by positioning itself as an environmental leader. So although strategicgreening is not necessarily strategically integrated into all marketing activities, it is neverthelessstrategic in the product area.

PROBLEMS OF GREEN MARKETING

Many organizations want to turn green, as an increasing number of consumers' ant to associatethemselves with environmental-friendly products. Alongside, one also witnesses confusionamong the consumers regarding the products. In particular, one often finds distrust regardingthe credibility of green products. Therefore, to ensure consumer confidence, marketers ofgreen products need to be much more transparent, and refrain from breaching any law orstandards relating to products or business practices

No matter why a firm uses green marketing there are a number of potential problems that theymust overcome. One of the main problems is that firms using green marketing must ensurethat their activities are not misleading to consumers or industry, and do not breach any of theregulations or laws dealing with environmental marketing. For example marketers in the USmust ensure their green marketing claims can meet the following set of criteria, in order to

comply with the FTC's guidelines. Green marketing claims must;

*Clearly state environmental benefits;* Explain environmental characteristics;* Explain how benefits are achieved;* Ensure comparative differences are justified;


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* Ensure negative factors are taken into consideration; and* only use meaningful terms and pictures.

Another problem firms face is that those who modify their products due to increased consumerconcern must contend with the fact that consumers' perceptions are sometimes not correct.Take for example the McDonald's case where it has replaced its clam shells with plastic coatedpaper. There is ongoing scientific debate which is more environmentally friendly. Somescientific evidence suggests that when taking a cradle-to-grave approach, polystyrene is lessenvironmentally harmful. If this is the case McDonald's bowed to consumer pressure, yet haschosen the more environmentally harmful option.

When firms attempt to become socially responsible, they may face the risk that the

environmentally responsible action of today will be found to be harmful in the future. Take forexample the aerosol industry which has switched from CFCs (chlorofluorocarbons) to HFCs(hydro fluorocarbons) only to be told HFCs are also a greenhouse gas. Some firms now use DME(dimethyl ether) as an aerosol propellant, which may also harm the ozone layer .Given thelimited scientific knowledge at any point in time, it may be impossible for a firm to be certainthey have made the correct environmental decision. This may explain why some firms, likeCoca-Cola and Walt Disney World, are becoming socially responsible without publicizing thepoint. They may be protecting themselves from potential future negative backlash; if it isdetermined they made the wrong decision in the past.

While governmental regulation is designed to give consumers the opportunity to make betterdecisions or to motivate them to be more environmentally responsible, there is difficulty inestablishing policies that will address all environmental issues. For example, guidelinesdeveloped to control environmental marketing address only a very narrow set of issues, i.e., thetruthfulness of environmental marketing claims. If governments want to modify consumerbehavior they need to establish a different set of regulations. Thus governmental attempts toprotect the environment may result in a proliferation of regulations and guidelines, with no onecentral controlling body.

Reacting to competitive pressures can cause all "followers" to make the same mistake as the"leader." A costly example of this was the Mobil Corporation who followed the competition andintroduced "biodegradable" plastic garbage bags. While technically these bags werebiodegradable, the conditions under which they were disposed did not allow biodegradation tooccur. Mobil was sued by several US states for using misleading advertising claims. Thus blindlyfollowing the competition can have costly ramifications.


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The push to reduce costs or increase profits may not force firms to address the important issueof environmental degradation. End-of-pipe solutions may not actually reduce the waste butrather shift it around. While this may be beneficial, it does not necessarily address the largerenvironmental problem, though it may minimize its short term affects. Ultimately most waste

produced will enter the waste stream, therefore to be environmentally responsibleorganizations should attempt to minimize their waste, rather than find "appropriate" uses forit.

Challenges Ahead

Green products require renewable and recyclable material, which is costly. Requires a technology, which requires huge investment in R & D. Water treatment technology, which is too costly. Majority of the people are not aware of green products and their uses. Majority of the consumers are not willing to pay a premium for green products

SWOT ANALYSIS

STRENGTHS : 1 .Marketers get access to new markets and gain an advantage over competitors

that are not focusing on greenness. 2.Marketers can charge a premium on products that are seen as more eco-

responsible.

3.Organizations that adopt green marketing are perceived to be more socially

responsible. 4.Green marketing builds brand equity and wins brand loyalty among customers

.E.g. research and development capabilities for clean processes and green productsand human resources committed to environmental protection.

WEAKNESS :

1. Most customers choose to satisfy their personal needs before caring forenvironment.

2. Overemphasizing greenness rather than customer needs can prove devastating

for a product. 3 Many customers keep away from products labeled Green because they see such

labeling as a marketing gimmickk, and they may lose trust in an organization that


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suddenly claims to be green .E.g. products cannot be recycled, and hazardouswastes of a company.

OPPORTUNITIES :

1. Marketing to segment which are becoming more environmentally aware andconcerned. These consumers are demanding products that conform to these newattitudes.

2. Organizations perceive green marketing to be a competitive advantage, relativeto the competitors. Firms, therefore, strive to improve upon their societalawareness. This complements the increase in consumers socially consciousbehavior and will therefore give them an advantage over competitors who do notaddress these issues .E.g. offering an environmental friendly product and savingresources, and relating them to internal strengths.

EXTERNAL THREATS : 1. Uncertainty as to the environmental impact of present activities, including that is

perceived to be less environmentally harmful. 2. Uncertainty as to which green marketing activities are acceptable from a

government perspective.

.

Company Profile:

GRC InfoTech Pvt. Ltd., is professional web development, Industrial Training and Consultancy

company based in Chandigarh (India). We focus the needs of our clients to provide 100%

satisfaction. Our company is involved in providing web design and web development services,

software design and development and Search Engine Optimization. We are prepared and

educated to better provide a face for your business on the Internet. GRC India based Website

and Development Company in India providing job oriented software training and Live projectsfor MCA, BCA, B-TECh, M.TECH, MSC-IT and BSC-IT Students. Industrial Training Services in:

Six Weeks Industrial Training for B.Tech and MCA Students.

Six months Industrial Training for B.Tech and MCA Students.


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GRC is providing education & Training to the B-Tech students and MCA students evaluate them

during their 6 weeks and 6 months and then shortlist the deserving students for recruitment in

Our Company and other companies in India. Diversified range of latest technologies from

software (ASP.NET, Java, C/C++,Php ,CCNA and Networking).

Development Services in:

Web Designing

Web Development

Search Engine Optimization

Search Engine Marketing

Google Indexing

Websites made by OM GRC InfoTech Pvt Ltd:

www.icseindia.org

www.dpsyamunanagar.com

www.gowthcatalyst.in

www.pacl.clanteam.com

www.aryanworldwideholidays.com

www.frenzytechnologies.com

www.zevraatjewellry.com

www.thesinglacomputers.com

www.bittusatoz.com

www.pbplaygame.com

Languages &Development Environment:

1. C

2. C++

3. .Net

4. JAVA

5. PHP


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OBJECTIVES OF STUDY

The main objective of the study is first to gain some practical knowledge regarding functioning

of the organizations which is very necessary to fully understand the primary functions & hence

it fulfill the purpose of the Summer Internship under M.B.A course.

The other objectives were:

1. To study the importance of Green Marketing.

2. To study the roles of Green Marketing.3. To study the process and functions of Green Marketing.

4. To study the different types of methods/techniques used to evaluate Green Marketing.

5. To study the level of evaluation..


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RESEARCH METHODOLOGY

RESEARCH OBJECTIVES1. To understand the concepts and importance of Green marketing.2. To understand the level of awareness regarding green marketing among consumers.

3. To understand the buying behavior of consumers related to green marketing.4. To understand how green marketing helps company to build its image/5. To understand the success of green marketing as a corporate social responsibility.

RESEARCH METHODOLOGYResearch Methodology is a way to systematically solve the researchproblem.It may be understood as a science of studying how research is donescientifically. When we talk of research methodology we not only talk of there searchmethods but also consider the logic behind the methods we use in thec o n t e x t o f o u r r e s e a r c h s t u d y a n d e x p l a i n w h y w e a r e u s i n ga p a r t i cu l a r method or technique and why we are not using others .The major stepsinvolved in research process are:

Formulating the Research ProblemChoice of Research DesignSources of DataProcessing and analyzing the data

Formulating the Research Problem:T h e p r o b l e m w e l l d e f i n e d i s h a l f s o l v e d . T h e f o r m u l a t i o n o f ageneral topic into a specific research problem constitutes the first step ofspecif ic enquiry.Unit of analysis: Consumers between age group of 25 to 40 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 researchdesign


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SOURCE OF DATA

Primary Data Collection

The data has been collected from the respondents through personal interviews and a detailedquestionnaire was designed for that purpose. The questionnaire was designed according to theresearch objectives; the questions fulfill the aim of determining the impact on consumerstowards green marketing.

Secondary data collectionSecondary data is very important to complete a project report. The purpose of this data was tosupplement the primary data. The secondary sources of collecting data was-

Internet.

Magazines

Size of sample: This refers to the numbers of items to be selected from universe to constitute a sample. An optimum sample isone which fulfills the requirements of efficiencies ,representativeness , reliabilality ,and flexibility.

Sample size-50 consumers


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CONSUMER AWARENESS SURVEY ANALYSIS & INTERPRETATION

1.Are you aware of the term green marketing?

a. Yes-40% b. No-60%

2.Have you heard of any campaign related to Green Marketing?a. Yes -19 b. No-32

From this bar chart we can say that most of the respondents are not aware of any campaignrelated to green marketing.

40

60yes

no

19

32

0

5

10

15

20

25

30

35

yes no

Series 1

Series 2


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3. Have you been part of any such campaign?a.Yes -3 b. No -47

We can see here that out of 50 respondents only 3 has been part of such type of campaign

4. Do you consider the environmental aspects of the products before buying them?

a. Yes-24 % b. No -28 % c. Sometimes-48

The above chart indicates that only 48% i .e. the majority of respondents consider the Environmental aspectsome times. And, only 24% consider the environmental aspect of the product while buying it

0

10

20

30

40

50

yes no

3

47

24

28

48yes

no

some times


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5. Do you think that Green Marketing activities are good at addressing environmental issues?

a.Yes -94% b. No-6%

From this pie chart, it indicates that 94% respondents think that green marketing andadvertising are good sources of information about green products and services


a. Yes -45 b. No-5

We can see most of the respondents feel that Green marketing activities are good ataddressingenvironmental issues

94

6

yes

no

Series 1

Series 2

Column1

0

10

20

30

40

50

yesno

45

5Series 1

Series 2


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7. Do you think Green Marketing activities results in better products?

a. Yes -82% b. No-18%

We can see most of the respondents feel that Green marketing activities are good at addressingenvironmental issues.

8.Do you think that Green Marketing strengthen company is image in the mind of consumers?

a. Yes -37 b. No-13

The above chart indicates, majority of the respondents, i.e. 37 respondents feel that itstrengthen companys image in the mind of consume.

82%yes

18%no

0

5

10

15

20

25

30

3540

yes no

37

13


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9.Do you think that companies that focus on environmental concerns persuade consumers tobuy products?

a.Yes -58% b. No -42%

Most of the respondents feel that it helps to persuade consumers to buy products.

10.Do you think that by implementing green marketing strategy the companies are able to gaincompetitive advantage over others?

a. Strongly agree-34% b. agree-20%c. disagree- 40% d. strongly disagree-6%

Most of them agree that by implementing green marketing strategy the companies are able togain competitive advantage over others

58%

42%yesno

34%

40%

20%

6%

strongly agree agree disagree strongly dis agree


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11.Do you think sometimes companies are trying to cheat customers in the name of green products?

a. Yes b. No

Here, we can say that most of the respondents have negative opinion. They feel that sometimescompanies are trying to cheat the customers in the name of green products

0

5

10

15

20

25

30

35

yes no

33

17


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RESEARCH FINDINGS

In my research work through the survey of questionnaire I find the following points-

1.Maximum numbers of respondents are not familiar with the term Green Marketing

2.Most of the respondents are not aware of any campaign related to green marketing

3.Maximum numbers of respondents sometimes consider the environmental aspects ofthe products while purchasing.

4.Significant numbers of respondents feel that green marketing and advertising are goodsources of information about green products and services.

5.Most of the respondents feel that this marketing strategy helps to persuade consumersto buy products.

6.Also this type of strategy helps a company to get the competitive advantage over others.

7.Many respondents feel that sometimes companies are trying to cheat the customers in thename of green products.


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RECOMMENDATION

Finite resources such as oil, metal, and even fresh water will become scarcer and moreexpensive. If businesses do not become more efficient in using these resources it will have ahuge 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. Recycle at every level. Educate masses about the environment issues because they are going to be the

bulk consumers. Socially responsible investing in environment driven projects. Plant more trees.


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CONCLUSION&

FUTURE ASPECTS

CONCLUSION

Green marketing covers more than a firm's marketing claims. While firms must bear much ofthe responsibility for environmental degradation, the responsibility should not be theirs alone.Ultimately green marketing requires that consumers want a cleaner environment and arewilling to "pay" for it, possibly through higher priced goods, modified individual lifestyles, oreven governmental intervention. Until this occurs it will be difficult for firms alone to lead thegreen marketing revolution. Having said this, it must not be forgotten that the industrial buyeralso has the ability to pressure suppliers to modify their activities. Thus an environmentalcommitted organization may not only produce goods that have reduced their detrimentalimpact on the environment, they may also be able to pressure their suppliers to behave in amore environmentally "responsible" fashion. Final consumers and industrial buyers also havethe ability to pressure organizations to integrate the environment into their corporate cultureand thus ensure all organizations minimize the detrimental environmental impact of theiractivities. Thus green marketing should look at minimizing environmental harm, not necessarilyeliminating it. Green marketing covers more than a firm's marketing claims. While firms mustbear much of the responsibility for environmental degradation, ultimately it is consumers whodemand goods, and thus create environmental problems. One example of this is whereMcDonald's is often blamed for polluting the environment because much of their packagingfinishes up as roadside waste. It must be remembered that it is the uncaring consumer whochooses to disposes of their waste in an inappropriate fashion. While firms can have a great

impact on the natural environment, theresponsibility should not be theirs alone. It appears that consumers are not overly committedto improving their environment and may be looking to lay too much responsibility on industryand government. Ultimately green marketing requires that consumers want a cleanerenvironment and are willing to "pay" for it, possibly through higher priced goods, modifiedindividual lifestyles, or even governmental intervention. Until this occurs it will be difficult forfirms alone to lead the green marketing revolution. It must not be forgotten that the industrialbuyer also has the ability to pressure suppliers to modify their activities. Thus an environmentalcommitted organization may not only produce goods that have reduced their detrimentalimpact on the environment, they may also be able to pressure their suppliers to behave in amore environmentally "responsible" fashion. Final consumers and industrial buyers also havethe ability to pressure organizations to integrate the environment into their corporate cultureand thus ensure all organizations minimize the detrimental environmental impact of theiractivities.


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Now this is the right time to select Green Marketing globally. It will come with drastic changein the world of business if all nations will make strict roles because green marketing is essentialto save world from pollution. From the business point of view because a clever marketer is onewho not only convinces the consumer, but also involves the consumer in marketing his product.

Green marketing should not be considered as just one more approach to marketing, but has tobe pursued with much greater vigor, as it has an environmental and social dimension to it. Withthe threat of global warming looming large, it is extremely important that green marketingbecomes the norm rather than an exception or just a fad. Recycling of paper, metals, plastics,etc., in a safe and environmentally harmless manner should become much more systematizedand universal. It has to become the general norm to use energy-efficient lamps and otherelectrical goods. Marketers also have the responsibility to make the consumers understand theneed 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. Finally,consumers, industrial buyers and suppliers need to pressurize effects on minimize the negativeeffects on the environment-friendly. Green marketing assumes even more importance andrelevance in developing countries like India.


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LIMITATIONS OF THE PROJECT

DEMOGRAPHIC CONSTRAINTS

Will be a main issue of concern. This is due to the reason that the data collection restricted to

the jaipur only.

2. DATA RELIABILITY

As the data will be collected from various sources the accuracy of the data collected would bean area of concern. It would be an uphill task to validate the data consistency of the collectionof that data.

3. UNAWARENESS

People are unaware of Green marketing. So it is a very challenging task for me.


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QUESTIONNAIREGREEN MARKETING & ITS IMPACT ON CONSUMERS

NAME..ADDRESS

1. Are you aware of the term green marketing?

a. Yesb. No

2. Have you heard of any campaign related to Green Marketing?

a. Yes

b. No

3. Have you been part of any such campaign?

a.Yesb. No

4.Do you consider the environmental aspects of the products before buying them?

a. Yesb. Noc. Sometimes


a.Yesb. No


a. Yes

b. No

7. Do you think Green Marketing activities results in better products?

a. Yesb. No


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WEBLIOGRAPHY

www.greenmarketing.net/stratergic.html

www.epa.qld.gov.au/sustainable_ industries www.wmin.ac.uk/marketingresearch/marketing/greenmix.html www.indianmba.com/knowledgezone. www.coolavenues.com/knowledgezone/marketing/greenmarketing:oppurtunities and

challenges. www.ecomall.com www.greenmarketingcorner.coM www.greenpeace.org www.greenmarketing.com

BIBLIOGRAPHY

Philip Kotler & G. Armstrong. Principles of marketing. New Delhi, Prentice Hall.2 Richa Agrawal, Green Marketing: An Emerging Trend (PMR, Vol.5,April 2000) Unruh, G; Ettenson, R; Harvard Business Review; Journal article reprint; Harvard

Business Publishing

Jacquelyn A. Ottman, Green marketing ,Green leaf publishing limited.

Donald A. Fuller ,sustainable marketing

Frank Rottgers, Going green together

Paola Sassi, Strategies or sustainable architecture
http://www.ecomall.com/http://www.ecomall.com/http://www.ecch.com/casesearch/results.cfm?qs3=Unruhhttp://www.ecch.com/casesearch/results.cfm?qs3=Ettensonhttp://www.ecch.com/casesearch/results.cfm?qs3=Ettensonhttp://www.ecch.com/casesearch/results.cfm?qs3=Unruhhttp://www.ecomall.com/

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