Green Marketing

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.

Why Green Marketing?
There is growing interest among the consumers all over the world regarding protection of environment. Worldwide evidence indicates people are concerned about the environment and are changing their behavior. They are even reay to pay a premium price for eco0friendly products. As a result of this, green marketing has emerged which speaks for growing market for sustainable and socially responsible products and services.

Benefits of Green Marketing
Companies that develop new and improved products and services with environment inputs in mind give themselves access to new markets, increase their profit sustainability, and enjoy a competitive advantage over the companies which are not concerned for the environment.

Adoption of Green Marketing
There are basically five reasons for which a marketer should go for the adoption of green marketing. They are - Opportunities or competitive advantage, Corporate social responsibilities (CSR), Government pressure, Competitive pressure, and Cost or profit issues.

Green Marketing Myopia
In 1994 , Philips launched the “EarthLight,” a super energy-efficient compact fluorescent light (CFL) bulb designed to be an environmentally preferable substitute for the traditional energy-intensive incandescent bulb. The CFL’s clumsy shape, however, was incompatible with most conventional lamps, and sales languished. After studying consumer response, Philips reintroduced the product in 2000 under the name “Marathon,” to emphasize the bulb’s five year life. New designs offered the look and versatility of conventional incandescent light bulbs and the promise of more than $20 in energy savings over the product’s life span compared to incandescent bulbs. The new bulbs were also certified by the U.S. Environmental Protection Agency’s (EPA) Energy Star label. Repositioning CFL bulbs’ features into advantages that resonated with consumer values—convenience, ease-of-use, and credible cost savings—ultimately sparked an annual sales growth of 12 percent in a mature product market.

While noble, the benefit appealed to only the deepest green niche of consumers. The vast majority of consumers, however, will ask, “If I use ‘green’ products, what’s in it for me?” In practice, green appeals are not likely to attract mainstream consumers unless they also offer a desirable benefit, such as cost-savings or improved product performance.

Thus, Green products require a good marketing mix along with good marketing strategies.

Green Marketing Mix
Product
The ecological objectives in planning products are to reduce resource consumption and pollution and to increase conservation of scarce resources (Keller man, 1978).
Price
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.
Promotion
There are three types of green advertising: -
· Ads that address a relationship between a product/service and the biophysical environment
· Those that promote a green lifestyle by highlighting a product or service
· Ads that present a corporate image of environmental responsibility
Place
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 way to buy green products.

Green Marketing Strategies
Here are some Marketing messages connecting green products with desired consumer value:
1) Efficiency and cost effectiveness
"Did you know that between 80 and 85 percent of the energy used to wash clothes comes from heating the water? Tide Coldwater—The Coolest Way to Clean.” —Tide Coldwater Laundry Detergent
2) Health and safety
“20 years of refusing to farm with toxic pesticides. Stubborn, perhaps. Healthy, most definitely.”
—Earthbound Farm Organic
3) Symbolism
“Make up your mind, not just your face.” —The Body Shop
4) Convenience
“Long life for hard-to-reach places.” —General Electric’s CFL Flood Lights
5) Bundling
“Performance and luxury fueled by innovative technology.” —Lexus RX400h Hybrid Sports Utility Vehicle
SOURCE: Compiled by J.A. Ottman, E.R. Stafford, and C.L. Hartman, 2006.

Challenges Ahead
· Green products require renewable and recyclable material, which is costly
· Requires a technology, which requires huge investment in R & D
· 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 unless they get value in return

Thus, Green marketing is something a marketer cannot afford to neglect. Being socially responsible and eco conscious is the need of the hour. You must find an opportunity to enhance you product's performance and strengthen your customer's loyalty and command a higher price for an eco-friendly product.

Extracted from:
GreenMarketing Mypoia - June 2006 issue of Environment. Volume 48, Number 5, pages 22—36. © Heldref Publications, 2006.

Green marketing – opportunities & challenges by miss. P. Pirakatheeswari