Green marketing

History

The term Green Marketing came into prominence in the late 1980s and early 1990s. ^[2] The proceedings of this workshop resulted in green marketing entitled “Ecological Marketing”. ^[3]

The Corporate Social Responsibility (CSR) Reports started with the ice cream seller Ben & Jerry’s where the financial report was supplemented by a greater view of the company’s environmental impact. In 1987, a document prepared by the World Commission on Sustainable Development and the Future of the Future of Human Development. widespread thinking on sustainability in everyday activities. Two tangible milestones for wave of green marketing in the form of published books, both of which were called Green Marketing. They were by Ken Peattie (1992) in the United Kingdom and by Jacquelyn Ottman(1993) in the United States of America. ^[4]

According to Jacquelyn Ottman , (author of “The New Rules of Green Marketing: Strategies, Tools, and Inspiration for Sustainable Branding” (Greenleaf Publishing ^[5] and Berrett-Koehler Publishers , February 2011) from an organizational standpoint, environmental considerations should be integrated into all aspects of marketing – new product development and communications and all points in between. ^[6] The holistic nature of green also suggests that besides suppliers and retailers be enlisted, including educators, members of the community, regulators, and NGOs. Environmental issues should be balanced with primary customer needs. ^{[quote needed ]}

The past decade HAS shown That harnessing consumer power to effect positive environmental change is far Easier said than done. The so-called ” green consumer ” movements in the US and other countries have struggled to reach critical mass and to remain in the forefront of shoppers’ minds. ^[7] While public opinion polls taken since the late 1980s have consistently shown that a significant percentage of consumers in the US and elsewhere, consumers’ efforts to do so in real life have remained sketchy at best. ^[8]One of green marketing’s challenges is the lack of standards or public consensus about what is “green,” according to Joel Makower , a writer on green marketing. ^{[ citation needed ]} In essence, there is no definition of “how good is good enough” when it comes to a product or company making green marketing claims. This lack of consensus-by consumers, marketers, activists, regulators, and influential people-has slowed down the growth of green products, says Makower, because they are often reluctant to promote their green attributes, and consumers are often skeptical about claims. ^{[ quote needed ]}

Despite these challenges, green marketing has continued to gain adherents, particularly in light of growing global concern about climate change. This concern is their commitment to reduce their climate impacts, and the effect of this is on their products and services. ^[9] [10]

Greenhouse gas reduction market

The emerging greenhouse gas market can potentially catalyze projects with important local environmental, economic, and quality-of-life benefits. The Kyoto Protocol’s Clean Development Mechanism ( CDM ), for example, enables trading between industrial and developing nations, providing a framework that can result in profitable flows. Although the United States is not a participant in the Kyoto Protocol, several US programs permit similar transactions on a voluntary and regulatory basis. ^[8]

While international trade in greenhouse gas ^[11] reductions holds substantial businesses have promised a new source of funding for sustainable development , this market can be Largely unavailable to many smaller-scale projects, remote communities, and Least Developed localities. To facilitate participation and broaden the benefits, several barriers to be overcome, including: a lack of market awareness among stakeholders and prospective participants; specialized, the complicated complicated participation rules; and the need for simplified participation mechanisms for small projects. If the barriers are adequately addressed, greenhouse gas tradingcan play an important role supporting activities that benefit people ‘s lives and the environment. ^[8]

Popularity and effectiveness

Ongoing debate

The popularity of such marketing approach and its effectiveness is hotly debated. Supporters claim that they are growing up in the energy market . ^[11] models in 38 product categories, from washing machines and light bulbs to skyscrapers and homes. However, despite the growth in green products, green marketing is on the decline. ^{[ citation needed ]} Shel Horowitz , a green marketer for over 30 years and a primary author of Guerrilla marketing Goes Green ^[13]“deep green,” “lazy green,” and “nongreen”, and that each must be approached differently. Each audience will have a different audience, marketing effectively usually requires greater product quality than care for the planet. ^[14] On the other hand, Roper ‘s Green Gauge That shows a high percentage of Consumers (42%) ^[15]feel that environmental products do not work This is an unfortunate legacy from the 1970s when shower heads sputtered and natural detergents left dingy clothes. ” Happy Planet ” any day, including Earth Day , proverbial ” Happy Planet ” any day . New reports, however, a growing trend towards green products. ^[16]

Confusion

One challenge marketers green – old and new – are Likely to face as green products and messages Become more common is confusion in the marketplace. “Consumers do not really Understand a lot about thesis coming, and there’s a lot of confusion out there,” says Jacquelyn Ottman (founder of J. Ottman Consulting and author of “Green Marketing:. Opportunity for Innovation”) ^[16] Marketers Sometimes take advantage of this confusion, and purposely make false or exaggerated “green” claims. Critical references to this practice as ” green washing “.

Greenwashing

Corporations are increasingly recognizing the benefits of green marketing, but it is often a thin line between doing so for its own benefit and for social responsibility reasons. The term “greenwashing” refers to all industries that adopt outwardly green acts with a profit-making purpose. The primary objective of greenwashing is to provide consumers with the feeling that the organization is taking the steps necessary to manage their ecological footprint. In reality, the company may be doing very little that is environmentally beneficial ^[17]The term greenwashing was first used by environmentalist Jay Westerveld when objecting to hotelier ‘s practice of placing their guests to reuse towels to “save the environment”. Westerveld noted that there was little doubt that the hoteliers were interested in their environmental impacts, and that their interest in the environment was lower than that of the environment. Since then, greenwashing has become a central feature of debates about marketing communications and sustainability, with “awards” for greenwashing established and numerous campaigns, law and advices developed in an attempt to reduce or curb it. ^[18]

Benefit corporations

In January 2012, Patagonia became the first brand. ^[19]

A benefit corporation is an alternative to its standard counterpart to it operates under the legal premise of 1) creating a positive impact socially and environmentally in its materials, 2) upholding corporate social responsibility in terms of its employees, its community, and the environment and 3) report its activity as well as its achievements in social and environmental affairs by a non-partisan third party source.

Statistics

According to market researcher Mintel , about 12% of the US population can be identified as True Greens, consumers who seek out and regularly buy so-called green products. Another 68% ^[16] [20] can be classified as Light Greens, consumers who buy green sometimes. “What are the marketing officers are always looking for is touch points to consumers, and this is just a big, big, big touch point that’s not being served,” says Mintel Research Director David Lockwood. “All the corporate executives who are talking to us about being able to get back to their bottom line.” ^[16]

Adoptability

In 1989, 67 percent of Americans said they were willing to pay 5-10 percent more for ecologically compatible products. ^[21] By 1991, environmentally conscious individuals were willing to pay between 15-20 percent for green products. ^[22] Today, more than one-third of Americans say they would pay a little extra for green products ^[23]

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

Everett Rogers, communication scholar and author of “Diffusion of Innovations”, claims that the following factors can help determine whether or not

1. Relative advantage : is the degree to which the new behavior is believed to be more beneficial 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 is the new behavior is to implement. ^[24]

LOHAS

LHAS stands for Lifestyles of Health and Sustainability, and describes an integrated, rapidly growing market for goods and services. The Natural Marketing Institute’s (short: NMI) estimates the US LOHAS consumer market of products and services to be USD 209 billion – sold across all consumer segments. ^[25]

The five LOHAS segments as defined by NMI include:

• LOHAS : Active environmental stewards dedicated to personal and planetary health. These are the heaviest purchasers of green and socially responsible products and the early adopters who influence others heavily.
• Naturalites : Motivated primarily by personal health considerations. They tend to purchase more LOHAS durable items.
• Drifters : While their intentions may be good, DRIFTERS follow trends when it is easy and affordable. They are currently being engaged in green purchasing behaviors.
• Conventionals : Pragmatists who embrace behavior LOHAS when they believe they can make a difference, but are focused on being very careful with their resources and doing the ‘right’ thing because it will save them money.
• Unconcerned : Either unaware or unconcerned about the environment and societal issues because they do not have the time or the means.

The green marketing mix

A green marketing mix model contains four “P’s”:

• Product : A producer shoulds offer ecological products qui not only must not contaminate the environment goal shoulds protect it and Even liquidate Existing environmental damages.
• Price : Prices for such products may be a little higher than conventional alternatives. But target groups like for example LOHAS are willing to pay extra for green products.
• Place : A distribution logistics is of crucial importance; main focus is on ecological packaging. Local and seasonal marketing is one of the most important products of the world.
• 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 be publicized to improve a firm’s image. Furthermore, the fact that a company spends expenditures on environmental protection should be advertised. Third, sponsoring the natural environment is also very important. And last but not least, the products will usually require special promotions. ^{[ quote needed ]}

Additional social marketing “P’s” are used in this process:

• Public : Effective Social Marketing knows its audience, and can appeal to multiple groups of people. “Public” is the external and internal groups involved in the program. External audiences include the audience audience, secondary audiences, policymakers, and gatekeepers, while the internal public are those who are involved with the program.
• Partnership : Most social change issues, including “green” initiatives, are too complex for one person or group to handle. Associating with other groups and initiatives to team up strengthens the chance of efficacy.
• Policy : Social marketing programs can not be changed, but they are difficult to sustain unless the environment changes. Often, policy change is needed, and media advocacy programs can be an effective complement to a social marketing program.
• Purse Strings : How much will this strategic effort cost? Who is funding the effort? ^[26]

The level of greening-strategic, quasi-strategic, or tactical-dictates what activities should be undertaken by a company. Strategic greening in one area can be leveraged effectively in others. A firm could make substantial changes in production processes but opt ​​to leverage them by positioning itself as an environmental leader. The strategy is not necessarily strategically integrated into all marketing activities, but is strategic in the product area. ^[27]

Ecolabels

An individual’s belief that an environmental claim lacks honesty can have a negative effect on attitude towards a brand. If, on the other side, the consumer grants credibility to the claim, the individual will behave more respectfully towards the environment. The problem in extending the credibility of a consumer is greater than that of consumers. This skepticism is due to various factors such as lack of language, the absence of scientific knowledge necessary to interpret the meaning of advertising, and, in particular, the falsehoods and exaggeration of some advertising techniques. To resolve this problem, the independent organizations can choose to guarantee the environment.^[28]

Life-cycle assessment

During the late 1980s, new instruments such as life-cycle assessment (LCA) were invented ^[18]

The life cycle assessment model seeks to identify the main types of environmental impact throughout the life cycle of a product. LCA was developed according to ISO 14040. The main goal of the LCA is to define the energy and environmental profile of the finished products. The reasons for the use of LCAs are as follows: In addition, the purpose was to quantify the environmental advantages deriving from the use of recycled raw material. ^[30]

Example for LCA

LCA is used for example in the building sector. Buildings today account for 40% of the world’s energy use. The resulting carbon emissions are substantially higher than those of the transportation sector. New buildings using more energy than necessary, and millions of today’s inefficient buildings to be able to reduce their energy consumption by 2050. footprint. Growing interest, space, and attention in the architecture sector are directed to environmental issues according to the principles of green building. Mineral, vegetable, golden animal such materials as perlite, vermiculite, rock wool, glass wool, cork, plant fibers (cotton, flax, hemp, coconut), wood fiber, cellulose, and sheep ‘^[30]

Cases

Phillips’s “Marathon” CFL lightbulb

Philips Lighting’s first shot at a standalone compact fluorescent light (CFL) bulb was Earth Light, at $ 15 each versus 75 cents for incandescent bulbs. ^[31] The product had difficulty climbing 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 costs over its five-year lifetime. ^[31] Finally, with the US EPA’s Energy Star rating, the sales climbed 12 percent in an otherwise flat market. ^[32]

Car sharing services

Car-sharing services address the along-term solutions to consumer needs for better fuel savings and Fewer traffic tie-ups and parking nightmares, to complement the environmental benefit of more open space and reduction of greenhouse gases . ^{[ citation needed ]} They can be thought of as a “time-sharing” system for cars. Consumers who drive less than 7.500 miles a year, including Zipcar (East Coast), I-GO Car (Chicago), ^{[33] ]} and Hour Car (Twin Cities). ^[34]

Electronics sector

The consumer electronics sector provides for green marketing to attract new customers. One example of this is HP ‘s promised to cut icts global energy use 20 percent by the year 2010. ^[35] To Accomplish this reduction below 2005 levels, The Hewlett-Packard Company annoncé planes to deliver energy-efficient products and services and institute energy-efficient operating practices in its facilities worldwide.

Products and services

They are offering more eco-friendly alternatives for their customers. Recycled products for example, are one of the most popular alternatives that can benefit the environment. These benefits include sustainable forestry, clean air, energy efficiency, water conservation, and a healthy office. One example, is the E-commerce business and office supply company Shoplet which offers a web tool that allows you to replace similar items in your shopping cart with greener products.

Introduction of CNG in Delhi

New Delhi , capital of India, Was being white polluted at a very fast pace up to Supreme Court of India forced a change to alternative fuels. In 2002, a directive was issued to completely adopt CNG in all public transport systems to curb pollution. ^[36]

See also

• Green banking
• Environmental marketing
• Green politics
• marketing
• Social marketing

References