GREEN MARKETING(U.Phiri)

GREEN MARKETING(u.phiri)

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. Yet defining green marketing is not a simple task where several meanings intersect and contradict each other; an example of this will be the existence of varying social, environmental and retail definitions attached to this term. Other similar terms used are Environmental Marketing and Ecological Marketing.

THE GREEN MARKETING MIX

A model of a green MARKETING MIX should, of course, contain all 4P’s:

Product: A producer should offer ecological products which not only must not contaminate the environment but should 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 are willing to pay extra for green products.
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 be marketed “green” than products imported.
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, ecological products will probably require special sales promotions.

THE PRACTICE OF GREEN MARKETING IN INDUSTRY

What is a green product?

There is no widespread agreement on what exactly makes a product green. Some general guidelines include that a green product

does not present a health hazard to people or animals;
is relatively efficient in its use of resources during manufacture, use, and disposal;
does not incorporate materials derived from endangered species or threatened environments;
does not contribute to excessive waste in its use or packaging; and
does not rely on unnecessary use of or cruelty to animals.

RECYCLING

Now companies 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.

ENERGY USE

The consumer electronics sector provides room for using green marketing to attract new customers. One example of this is HP's promise to cut its global energy use 20 percent by the year 2015. To accomplish this reduction below 2005 levels, The HP announced plans to deliver energy-efficient products and services and institute energy-efficient operating practices in its facilities worldwide

ORGANIC FOODS

Whole Foods, for example, says they are committed to “selling the highest quality natural and organic products available”. For Whole Foods, such a commitment originates in the garden where the food is grown and pays off through the appeal of the dish that is ultimately served and the healthier lifestyle to which the food contributes.

E-LABELS

Eco-labels influence consumer behavior in two ways. First, they introduce green as a considered attribute at the point of sale. Second, they enable consumers to comparison shop based on green. Over the past few years, there have been many new eco-labels launched by governments, manufacturers and retailers.

DIGITAL MARKETING

Green marketers should consider such a platform. Not only is this a efficient way to engage consumers (clients pay on a cost-per-engagement basis), but research results are impressive, as firms claim that their “viral marketing …has proven to be 5 to 10 times more effective than traditional online marketing methods such as display ads or search optimization.”

GREEN SHOPPING

Interestingly, many consumers view eCommerce as more eco-friendly than shopping on Main Street because they don’t have to travel from their homes to do so.

GREEN BANKING

People around the World are starting to turn to eco-friendly banking as a way to help reduce the carbon footprint from their normal banking activities. This movement away from branch and paper banking is being led by green banks that believe in social responsibility. The easiest way to make a bank is to start using the online banking services that are available. Benefits of online banking include less paperwork, less mail and less driving to branch offices, which all have a positive impact on the environment. Interestingly, online banking can also increase the efficiency and profitability of a bank. Bank are lowering their own costs that result from paper overload and bulk mailing fees as more customers use online banking.

GREEN CARS

The conventional car industry is now in sharp decline across the world while consumer demand for zero or low emissions green cars is rising fast.

Electric cars are 30% more efficient (in terms of greenhouse gas emissions) than cars powered by internal combustion engines (that use petrol, diesel or gas), even taking into consideration coal-fired power generation.

Benefits of green marketing

How Being Green Benefits Businesses

Keeping a business as green as possible has benefits for the business as well as the environment. Aside from the inherent positives for the planet, taking preventive measures to protect the environment saves the costs of expensive cleanups when things go wrong. Plus, the environmental messages sent out at work spread and multiply and therefore have a larger positive effect.

In today’s business world, companies are more willing to make eco-friendly changes because they know that

They can achieve savings in energy costs.Recycling, energy conservation, energy-efficient office equipment, and water-saving devices all save money by cutting bills.
They don’t have to spend a lot of money to make changes, and often changes actually save the business money. The reducing consumption part of being green can cut overhead expenses significantly. For example, printing on both sides of paper doesn’t cost a business anything and can cut paper supply costs in half.
They can improve staff productivity. Getting employees involved in making the business greener and the office and other workplaces more energy-efficient makes them feel like part of the team and motivates them. Greener workplaces also are likely to be healthier and safer, which means that the company loses less money through staff sick time.
Introducing telecommuting can cut costs and make staff happier. Employees working from home can reduce employer costs such as parking and make it easier for employees to manage family issues, thus reducing their stress

PROFIT MOTIVE

A number of factors have caused business firms to behave more responsibly towards the natural environment. Perhaps foremost among these is the possibility of capitalizing on opportunities from the sale of environmental services and/or "earth-friendly" products. Environmental awareness has increased dramatically, particularly since the organized environmental movement emerged in the late 1960s. Issues ranging from global warming to animal rights to species preservation to the protection of wetlands are now prominent in the media and in the minds of consumers. "Green" consumers have thus arisen with preferences for products made from recycled materials or products whose use entails reduced environmental impact. Often such products command premium prices, and therefore the task of marketers has become all the more crucial

TO BE AHEAD OF REGULATIONS

Environmental regulations continue to increase in both number and complexity. Some firms have identified opportunities in this changing legal environment and are making changes to drive regulation for purposes of competitive advantage. Because many regulations require use of the "best available technology," firms actively involved in developing and implementing new technologies may achieve the benefits of monopoly status for a short while

ATTRACT HIGHLY TALENTED EMPLOYEES
Another impetus causing business to embrace environmental concerns is to attract better employees and/or improve working conditions. Many young people entering the workforce today exhibit greater social concerns than those of ten years ago, and many wish to join firms perceived to be making a positive contribution to society.

CONCLUSION

Leading brands should recognize that consumer expectations have changed. It is not enough for a company to green its products; consumers expect the products that they purchase to help reduce the environmental impact in their own lives too.