GREEN MARKETING BY RAMAN BEDI SCHOOL OF MANAGEMENT STUDIES PUNJABI UNIVERSITY PATIALA

INTRODUCTION  The marketing efforts to produce, promote, distribute and reclaim products or services which are environmentally safe or has environmental benefits. Such a product or service may be environment friendly or produced and/or packaged in an environment friendly way.

DEFINITION  Green marketing refers to the process of selling products or services based on their environmental benefits. Such a product or service may be environmentally friendly in itself or produced or packaged in an environmentally friendly way

WHY GREEN MARKETING  Resources are limited, so it is important to use them efficiently without wasting & meeting organization’s objectives  Growing interest among the consumers all over the world regarding protection of environment.  Growing market for sustainable and socially responsible products & services.

ECO LABELLING  Eco label is an environmental claim that appears on the packaging of a product.It is awarded to a manufacturer by an appropriate authority. ISO is a guide to the award of Eco- labels. The government of India launched an Eco-mark Scheme in 1991 to increase consumer awareness in respect of environment friendly products.The aim of the scheme is to encourage the customers to purchase those products which have less harmful environmental impact. ECO LABELLING

ECO LABELLING LEADS TO  Improvement of image and sales of products  Manufacturer’s being more accountable to environmental impacts  Consumer’s awareness that their choice of product do affect the environment as some products are less damaging to environmental than others.

WHY IS GREEN MARKETING CHOSEN BY MOST MARKETERS?  Opportunity  Social-Responsibility  Governmental-Pressure  Competitive-Pressure  Cost-Reduction

THE 5 R’s RECYCLE REDUCEREALITYREPLENISHREUSE

PATHS OF GREENNESS  Adopt new technology/ Process or modify existing technology/ Process so as to reduce environmental impact.  Establish a management control system that will lead to adherence of stringent environmental safety norms.  Explore possibilities of recycling of the used products so that it can be used to offer similar or other benefits with less wastage.  Explore possibilities of recycling of the used products so that it can be used to offer similar or other benefits with less wastage.  Using more environment-friendly raw materials at the production stage itself.

SECTORS INVOLVED IN GREEN MARKETING  Automobile industry  Paper industry  Real estate industry  Telecom industry  Food industry  Hotel and tourism industry

Companies with green marketing  PHILIPS  MCDONALD  FIAT  DELUXE PAINT  CANON  UNILEVER

EXAMPLES  McDonald’s restaurant’s napkins, bags are made of recycled paper.  Coca-cola pumped syrup directly from tank instead of plastic which saved 68 million pound/year  Barauni refinery of IOC is taken steps for restricting air & water pollutants

RANGE OF ACTIVITIES  Product Modification  Changing Production Process  Packaging Changes  Modifying Advertisement

PRODUCT MODIFICTION Most popular example of car Most popular example of car Toyota hybrid car….TOYOTA PRIUS Toyota hybrid car….TOYOTA PRIUS

Changing production process  Nokia recycling its old worn out handsets donated by customers

Packaging changes  Mc Donald’s replacing its clamshell packaging with paper packaging

Modifying Advertisement  Those that promote a green lifestyle by highlighting a product or service e.g. …Idea Telecom

A new step to promote Green marketing

Challenges  Challenges 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.

BENEFITS  Improved environmental quality & customer satisfaction  Safe and clean environment  Efficiency and cost effectiveness  Health and safety  Gaining and retaining customers  Innovation in products and operations  Vicious cycle of objectives of company

DO THIS  LESS USE OF POLYTHENE  LESS USE OF MOBILE PHONE  CRUSH PLASTIC BOTTLE AFTER USE  USE DISPOSABLE ITEMS  LOVE NATURE  SAVE WATER  SAVE FUEL  AVOID SMOKING  MANY MORE………………………..

Some interesting facts  1 Recycled tin can would save enough energy to power Television for 3 hours  1 recycled glass bottle would save enough energy to power a computer for 25 minutes  70%less energy is required to recycle paper compared making it from raw material  Recycled paper produces 73% less air pollution than if it was made from raw material

CONCLUSION  Green marketing should not neglect the economic aspect of marketing  Marketers need to understand the implications of green marketing  Green marketing is still in its infancy and a lot of research is to be done on green marketing to fully explore its potential.  Firms alone cannot lead the green marketing revolution.  Consumers and industrial buyers have ability to pressure organizations to integrate environmental factor.