WHAT IS GREEN MARKETING? Otherwise known as Environmental Marketing, Ecological Marketing or Eco-Marketing.

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Presentation transcript:

WHAT IS GREEN MARKETING? Otherwise known as Environmental Marketing, Ecological Marketing or Eco-Marketing

A SIMPLE DEFINTION In simple terms it refers to the process of selling products and/or services based on their environmental benefits In simple terms it refers to the process of selling products and/or services based on their environmental benefits Such a product may be environmentally friendly in itself or produced and/ or packaged in this way Such a product may be environmentally friendly in itself or produced and/ or packaged in this way

THE AMERICAN MARKETING ASSOCIATION (AMA) DEFINITION A 3 WAY DEFINTION : A 3 WAY DEFINTION : (retailing definition) The marketing of products that are presumed to be environmentally safe. (retailing definition) The marketing of products that are presumed to be environmentally safe. (social marketing definition) The development and marketing of products designed to minimize negative effects on the physical environment or to improve its quality. (social marketing definition) The development and marketing of products designed to minimize negative effects on the physical environment or to improve its quality. (environment definition) The efforts by organizations to produce, promote, package, and reclaim products in a manner that is sensitive or responsive to ecological concerns (environment definition) The efforts by organizations to produce, promote, package, and reclaim products in a manner that is sensitive or responsive to ecological concerns

Mutual benefit Mutual benefit A competitive edge A competitive edge Rising green demands of customers Rising green demands of customers Higher profit margins Higher profit margins Snowball effect Snowball effect

2 STEPS FOR A GREEN COMPANY To make a commitment and develop an environmental policy To make a commitment and develop an environmental policy To set goals, objectives, and targets for an environmental management programme. To set goals, objectives, and targets for an environmental management programme.

The first step to becoming involved in sustainable development is to choose or formulate the sustainable development principles a business is going to follow The first step to becoming involved in sustainable development is to choose or formulate the sustainable development principles a business is going to follow Adopting the CERES Principles is a good beginning for businesses wanting to incorporate sustainable development principles into their operating practices Adopting the CERES Principles is a good beginning for businesses wanting to incorporate sustainable development principles into their operating practices

WHAT IS CERES? THE COALITION FOR ENVIRONMENTALLY RESPONSIBLE ECONOMIES THE COALITION FOR ENVIRONMENTALLY RESPONSIBLE ECONOMIES

CERES PRINCIPLES: CERES PRINCIPLES: In the autumn of 1989, Ceres announced the creation of the Ceres Principles, a ten-point code of corporate environmental conduct to be publicly endorsed by companies as an environmental mission statement or ethic. Imbedded in that code of conduct was the mandate to report periodically on environmental management structures and results In the autumn of 1989, Ceres announced the creation of the Ceres Principles, a ten-point code of corporate environmental conduct to be publicly endorsed by companies as an environmental mission statement or ethic. Imbedded in that code of conduct was the mandate to report periodically on environmental management structures and results

Includes investors, public pension funds, foundations, labour unions and environmental, religious and public interest groups working in partnership with companies towards the common goal of corporate environmental responsibility. Includes investors, public pension funds, foundations, labour unions and environmental, religious and public interest groups working in partnership with companies towards the common goal of corporate environmental responsibility. As a blueprint for sustainable development, these principles include statements relating to the sustainable use of natural resources, the reduction and disposal of wastes, energy conservation, among other topics As a blueprint for sustainable development, these principles include statements relating to the sustainable use of natural resources, the reduction and disposal of wastes, energy conservation, among other topics

CREATING AN EMS An Environmental Management System (EMS) is a framework developed by an organization to help improve its environmental performance by taking environmental considerations into account when making decisions and managing risks. An Environmental Management System (EMS) is a framework developed by an organization to help improve its environmental performance by taking environmental considerations into account when making decisions and managing risks.

THE GREEN EVOLUTION THE 3 LONG PHASES OF THE EVOLUTION: THE 3 LONG PHASES OF THE EVOLUTION: 1:ECOLOGICAL PHASE 1:ECOLOGICAL PHASE 2:ENVIRONMENTAL PHASE 2:ENVIRONMENTAL PHASE 3:SUSTAINABLE PHASE OF GREEN MARKETING 3:SUSTAINABLE PHASE OF GREEN MARKETING

SUSTAINABLE DEVELOPMENT "Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs." - Brundtland Commission, 1987 "Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs." - Brundtland Commission, 1987

THE NEXT INDUSTRIAL REVOLUTION? William McDonough and Michael Braungart summarize the progress of industry's eco- efficiency efforts, and make a strong case for moving beyond this concept to "eco-effectiveness", human industry that is regenerative rather than depletive. William McDonough and Michael Braungart summarize the progress of industry's eco- efficiency efforts, and make a strong case for moving beyond this concept to "eco-effectiveness", human industry that is regenerative rather than depletive.

A WAY THROUGH RECESSION The green marketing area is a growth zone at the moment The green marketing area is a growth zone at the moment A recent survey has shown that 82% of consumers are still purchasing green products during the recession A recent survey has shown that 82% of consumers are still purchasing green products during the recession

." GREEN MARKETING vs RECESSION

FAIRTRADE Fairtrade is a strategy for poverty alleviation and sustainable development. Fairtrade is a strategy for poverty alleviation and sustainable development. Its purpose is to create opportunities for producers and workers who have been economically disadvantaged Its purpose is to create opportunities for producers and workers who have been economically disadvantaged

Green marketing recycles, uses less, and avoids waste, it is more affordable than traditional marketing and this is very attractive to businesses with tight marketing budgets. Green marketing recycles, uses less, and avoids waste, it is more affordable than traditional marketing and this is very attractive to businesses with tight marketing budgets. It also makes extensive use of digital resources because this is a great way to minimize a company's marketing footprint. It also makes extensive use of digital resources because this is a great way to minimize a company's marketing footprint.

THE DARK SIDE OF GREEN

GREEN WASHING The practice of making products seem more environmentally friendly than they really are The practice of making products seem more environmentally friendly than they really are Takes place everywhere from the boardrooms of British Petroleum to your local grocer Takes place everywhere from the boardrooms of British Petroleum to your local grocer

ONE BIG GREEN LIE Ford Motor Company In 2004 one print ad read, "Green vehicles. Cleaner factories. It's the right road for our company, and we're well underway." In 2004 one print ad read, "Green vehicles. Cleaner factories. It's the right road for our company, and we're well underway." But it only planned on producing 20,000 of its Hybrid SUVs per year, while continuing to produce almost 80,000 F-series trucks per month But it only planned on producing 20,000 of its Hybrid SUVs per year, while continuing to produce almost 80,000 F-series trucks per month

AND ANOTHER ONE….. Ever notice how kids' breakfast cereals always hype the fact that they contain "eight essential vitamins"?

CONSEQUENCES Greenwashing is misleading Greenwashing is misleading Could result in consumer and regulator complacency Could result in consumer and regulator complacency May also engender cynicism May also engender cynicism

BUYER BEWARE

AND FINALLY A LITTLE….

TWO UNSUSTAINABLE CONDITIONS:

Too much consumption by rich people and countries: According to the World Wildlife Foundation, the ecological footprint of the United States in 2005 was 9.4 (global hectares per person); the world average was 2.7. For high-income countries it was 6.4; for low-income countries 1.0.

Too little consumption by poor people and countries: Although progress has been made on reducing extreme poverty in recent decades, the World Bank estimates that 1.4 billion people still lived on less than US $1.25 a day in 2005.