10 Chapter 2
10 Chapter 2
2.1 Introduction
2.2 History of Green Marketing
2.3 Green Marketing Concept
2.4 Significance of Eco-Friendly Marketing
2.5 Principles of Green Marketing
2.6 The Challenges of Green Marketing
2.7 Environmentalism Concept: Route Cause for Development of Green Marketing
2.8 The Four Ps of Green Marketing
2.9 Ecological Aspects of Marketing
2.10 Environment Friendly Products
2.11 Problems in Green Marketing
2.12 Green Marketing Strategies
2.13 Stakeholders of Green Marketing
2.14 Summary
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2.1 INTRODUCTION
The term “sustainability” has become the key word of this competitive era. As
resources are scarce and human wants are infinite, this broaden gap has augmented the
interest among the consumers all over the world regarding fortification of environment. This
increasing awareness amongst the world regarding ecological balance has provided more
environmental consciousness amongst them. This in turn has transformed the behavioral
blueprints both in individuals and businesses. Now there is an era of recyclable, non toxic
and environment responsive green goods.
All over the world, the consumers are now cognizant regarding fortification of the
environment in which they live. Most of them believe that environment-friendly products are
safer to use. They are at present, showing eager interest in everything that is organic such as
organic food, hybrid cars, carpooling, recycled products, energy saving appliances etc. Thus,
the global distress for sustainable development has highlighted need for going green in every
field of human life; and that includes marketing as well. As a consequence, there is a there is
a swing in practices of marketers as well that has given birth to the concept of ‘Think Green’.
This led to the appearance of green marketing which speaks for mounting market for
sustainable and socially accountable products and services. It contains a wide range of tasks
such as product adjustment, transforming the production process, changed advertising,
modifications in packaging, etc., that aims at reducing the harmful impact of products and
their consumption and disposal on the environment. Despite of this world awareness, they are
numerous potential challenges and issues that are required to be surmounted.
Green marketing has evolved as the new mantra for marketers to persuade the needs
of target audience and thereby produce lucrative bottom lines. While the shift to “green” may
emerge to be expensive in the near future but it will unquestionably prove to be crucial and
advantageous, cost-wise too, in the upcoming years. A majority of organizations, around the
world, are making an attempt to reduce the harmful impact of production processes on the
climate and other environmental conditions. They have comprehensively utilized the word
green in marketing campaigns in the form of green marketing, green supply chains, green
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retailing, green consumers, green products, etc. hence the businesses and the marketers are
taking the indication and are going green for the betterment of the entire society1.
The term Green Marketing came into prominence in the late 1980s and early 1990s.
The American Marketing Association (AMA) held the first workshop on "Ecological
Marketing" in 1975. The proceedings of this workshop resulted in one of the first books on
green marketing entitled "Ecological Marketing".
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 on the
company's environmental impact. In 1987 a document prepared by the World Commission
on Environment and Development defined sustainable development as meeting “the needs of
the present without compromising the ability of future generations to meet their own need”,
this became known as the Brundtland Report and was another step towards widespread
thinking on sustainability in everyday activity. Two tangible milestones for wave 1 of green
marketing came 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.
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 U.S. and other countries have struggled to reach critical mass and to
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remain in the forefront of shoppers' minds. While public opinion polls taken since the late
1980s have shown consistently that a significant percentage of consumers in the U.S. and
elsewhere profess a strong willingness to favor environmentally conscious products and
companies, consumers' efforts to do so in real life have remained sketchy at best. One of
green marketing's challenges is the lack of standards or public consensus about what
constitutes "green," according to Joel Makower, a writer on green marketing. 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 the growth of green products, says Makower,
because companies are often reluctant to promote their green attributes, and consumers are
often skeptical about claims.
the existence of varying social, environmental and retail definitions attached to this term.
Other similar terms used are environmental marketing and ecological marketing.
Green, environmental and eco-marketing are part of the new marketing approaches
which do not just refocus, adjust or enhance existing marketing thinking and practice, but
seek to challenge those approaches and provide a substantially different perspective. In more
detail green, environmental and eco-marketing belong to the group of approaches which seek
to address the lack of fit between marketing as it is currently practiced and the ecological and
social realities of the wider marketing environment.
Green marketing involves developing and promoting products and services that
satisfy customers’ wants and needs for quality, performance, affordable pricing and
convenience – all without a detrimental impact on the environment. People generally want to
do the right thing, so the challenge and opportunity for the green marketer is to make it easy
for people to do so. When all else (quality, price, performance and availability) is equal, an
environmental benefit will most likely tip the balance in favour of a product. The marketing
industry can ‘walk and talk’ and become the new corporate champions of the environment.
Successful green marketers will reap the rewards of healthy profits and improved shareholder
value, as well as help to make the world a better place in the future.
Waste and pollution arise usually from inefficiency. Therefore, make things without
waste instead of handling the waste.
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Every product should reflect or at least approximate its actual cost – not only the
direct cost of production but also the cost of air, water and soil.
Consumers are beginning to recognize that competition in the market place should not
be between companies harming the environment and those trying to save it.
Since resources are limited and human wants unlimited, it is important for the
marketers to utilize the resources efficiently without waste while achieving the organization’s
objective. Today’s consumers are becoming more and more rational about the environment
and are also becoming socially responsible. Therefore all companies are attentive towards the
consumers’ aspirations for environmentally less damaging or neutral products. Many
companies want to have an early mover advantage as eventually they have to move towards
becoming green.
Most of the consumers, both individual and industrial, are becoming more concerned
about environment friendly products. Most of them feel that environment friendly products
are safe to use. As a result, green marketing has emerged, which aims at marketing
sustainable and socially responsible products and services. It is the era of producing
recyclable non toxic and environment friendly goods. This has become the new mantra for
marketers to satisfy the needs of consumers and earn better profits.
2.4.1 Opportunities
Business firms perceive green marketing to be an opportunity that can be used to
achieve their objectives. For example Xerox introduced a high quality recycled photocopier
paper in order to satisfy the demand for less environmentally harmful products.
Many firms are beginning to realize that as members of the wider community they
must behave in an environmentally responsible fashion. Therefore, environmental issues are
being integrated into the firm’s corporate culture.
Government agencies are creating more and more regulations to control hazardous
wastes produced by industry. Those regulations seek to protect consumers and the society
from negative impact of business activities on the environment. In some cases, governments
try to induce firms and individuals to become more responsible towards the environment.
Firms marketing environment friendly products and services will have a competitive
advantage over firms marketing non environment friendly products and services. For
example McDonald’s replaced its clamshell packaging with waxed paper to minimize ozone
depletion.
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Firms also use green marketing to reduce costs. Disposing of harmful by-products
such as polychlorinated biphenyl (PCB) contaminated oil is becoming increasingly costly
and difficult. Therefore firms that can reduce harmful wastes can gain substantial cost
savings. More efficient production processes cannot only reduce waste but also the need for
raw material. A firm may develop a technology for reducing and recycling waste. For
example firms that clean the oil in large industrial condensers increase the life of those
condensers. Remove the need for replacing the oil, as well as the need to dispose of the
waste oil. This reduces operating costs for the owners of condensers and generates revenues
for the firms cleaning the oil3.
Under the green marketing concept, a company’s marketing should support the best
long run performance of the marketing system. It should be guided by five sustainable
marketing principles: consumer oriented marketing, customer value marketing, innovative
marketing, sense of mission marketing and societal marketing.
It means that the company should view and organize its marketing activities from the
consumer’s point of view. It should work hard to sense, serve and satisfy the needs of a
defined group of customers, both now and in the future. All of the good marketing companies
that we’ve discussed in this text have had this is common: an all consuming passion for
delivering superior value to carefully chosen customers. Only by seeing the world through its
customer’s eyes can the company build lasting and profitable customer relationships.
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According to the principle of customer value marketing, the company should put
most of its resources into customer value building marketing investments. Many things
marketers do - one shot sales promotions, cosmetic packaging changes, direct response
advertising–may raise sales in the short run but add less value than would actual
improvements in the product’s quality, features or convenience. Enlightened marketing calls
for building long run consumer loyalty and relationships by continually improving the value
consumers receive from the firm’s market offering. By creating value for consumers, the
company can capture value from consumers in return.
The principle of innovative marketing requires that the company continuously seek
real product and marketing improvements. The company that overlooks new and better ways
to do things will eventually lose customers to another company that has found a better way.
An excellent example of an innovative marketer is Nintendo.
It means that the company should define its mission in broad social terms rather than
narrow product terms. When a company defines a social mission, employees feel better about
their work and have a clearer sense of direction. Brands linked with broader missions can
serve the best long run interests of both the brand and consumers. For example, Dove wants
to do more than just sell its beauty care products. It’s on a mission to discover “real beauty”
and to help women be happy just the way they are.
Sustainable marketing calls for products that are not only pleasing but also beneficial.
Products can be classified according to their degree of immediate consumer satisfaction and
long run consumer benefit. Deficient products such as bad tasting and ineffective medicine
have neither immediate appeal nor long run benefits.
Pleasing products give high immediate satisfaction but may hurt consumers in the
long run. Examples include cigarettes and junk food.
Salutary products have low immediate appeal but may benefit consumers in the long
run; for instance bicycle helmets or some insurance products.
Desirable products give both high immediate satisfaction and high long run benefits
such as a tasty and nutritious breakfast food. Examples of desirable products abound. GE’s
Energy Smart compact fluorescent light bulb provides good lighting at the same time that it
gives long life and energy savings. Toyota’s hybrid Prius gives both a quiet ride and fuel
efficiency.
Companies should try to turn all of their products into desirable products. The
challenge posed by pleasing products is that they sell very well but may end up hurting the
consumer. The product opportunity is to add long run benefits without reducing the product’s
pleasing qualities. The challenges posed by salutary products are to add some pleasing
qualities so that they will become more desirable in consumer’s minds4.
The challenges before producers and marketers of green products are many:
Green Marketing strategies provide more benefits to consumers as well the society. It also
helps to create green environment by adopting eco – friendly marketing practices. Even
though getting more benefits from green marketing, there is lot of challenges or hurdles also
available for its development.
Environmentalists are not against marketing and consumerism; they simply want
people and organizations to operate with more care for the environment. The marketing
system’s goal, they assert, should not be to maximize consumption, consumer choice, or
consumer satisfaction but rather to maximize life quality. Life quality means not only the
quantity and quality of consumer goods and services but also the quality of the environment.
Environmentalists want current and future environmental costs included in both producer and
consumer decision making.
Today, companies are accepting more responsibility for doing no harm to the
environment. They are shifting from protest to prevention and from regulation to
responsibility. More and more companies are adopting policies of environmental
sustainability. Environmental sustainability is about generating profits while helping to save
the planet. It is a crucial but difficult societal goal.
The following figure shows a grid that companies can use to gauge their progress
toward environmental sustainability.
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It includes both internal and external “greening” activities that will pay off for the
firm and environment in the short run and “beyond greening” activities that will pay off in
the longer term. At the most basic level, a company can practice pollution prevention. This
involves more than pollution control – cleaning up waste after it has been created. Pollution
prevention means eliminating or minimizing waste before it is created. Companies
emphasizing prevention have responded with internal “green marketing’ programs –
designing and developing ecologically safer products, recyclable and biodegradable
packaging, better pollution controls, and more energy efficient operations.
Like conventional marketers, green marketers must address the ‘four Ps’ in
innovative ways.
2.8.1 Product
Green Marketing begins with ‘green design’. Product design constitutes an active
interface between demand (consumers) and supply (manufactures). The product itself has to
be made in such a way that it satisfies consumer and manufacture’s needs. For ecologically
sustainable products to be successful, green branding attributes have to be efficiently
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communicated. Most buyer decisions are influenced by the labeling, (green labeling) that
states all that makes the product green compliant
The increasingly wide varieties of products on the market that support sustainable
development and are good for the triple bottom line include:
· Efficient products, which save water, energy or gasoline, save money and reduce
environmental impact. For example waterless printer and Print point, reduces
operating costs by using less water than conventional printers and is able to pass the
savings on to customers.
· Organic products — many consumers are prepared to pay a premium for organic
products, which offer promise of quality. For example, Organic butchers promote the
added qualities such as taste and tenderness.
Whatever the product or service, it is vital to ensure that products meet or exceed the
quality expectations of customers and is thoroughly tested.
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2.8.2 Price
Pricing is a critical element of the marketing mix. Most customers will only be
prepared to pay a premium if there is a perception of additional product value. This value
may be improved performance, function, design, visual appeal or taste. Environmental
benefits are usually an added bonus but will often be the deciding factor between products of
equal value and quality. Environmentally responsible products, however, are often less
expensive when product life cycle costs are taken into consideration. For example fuel-
efficient vehicles, water-efficient printing and non-hazardous products. The price of green
product has to be affordable for the customer to encourage purchase. Industrial
differentiation works only when products reduce client’s cost.
2.8.3 Place
The choice of where and when to make a product available will have significant
impact on the customers to attract. Very few customers will go out of their way to buy green
products merely for the sake of it. Marketers looking to successfully introduce new green
products should, in most cases, position them broadly in the market place so they are not just
appealing to a small green niche market.
The location must also be consistent with the image you want to project and allow
you to project your own image rather than being dominated or compromised by the image of
the venue. The location must differentiate you from your competitors. This can be achieved
by in-store promotions and visually appealing displays or using recycled materials to
emphasis the environmental and other benefits. Green distribution is a very delicate
operation. Customers must be guaranteed of the ‘Ecological nature’ of the product. The green
environment is a constantly regulated environment and as such high level of compliance is
necessary when carrying out distribution of green products. This is a common procedure in
the united state.
2.8.4 Promotion
Promoting products and services to target markets includes paid advertising, public
relations, sales promotions, direct marketing and on-site promotions. Smart green marketers
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Retailers, for example, are recognizing the value of alliances with other companies,
environmental groups and research organizations when promoting their environmental
commitment. To reduce the use of plastic bags and promote their green commitment, some
retailers sell shopping bags, for example those produced by Land care Australia, Clean Up
Australia and Planet Ark, under the banner of the Go Green Environment Fund. The key to
successful green marketing is credibility. Never overstate environmental claims or establish
unrealistic expectations, and communicate simply and through sources that people trust.
Promote your green credentials and achievements. Publicize stories of the company’s
and employees’ green initiatives. Enter environmental awards programs to profile
environmental credentials to customers and stakeholders. Most buyers are influenced by
advertisement that reflects a company’s commitment to environment . Companies that do
green advertisement that tend to portray an image of environmental friendliness, influences
their customer purchase decisions. Consumers love to associate themselves with companies
that are environmental stewards. When a company communicates this through their
advertisements, promotions, publicity and corporate social responsibilities, they are sure to
get many loyal customers5.
Concern for better environment has shown maturity in all developed countries. It is
also growing in developing countries including India. Earlier emphasis was merely on
pollution control and punishing pollutants. Since 1986, the emphasis is on sustainable
economic development that meets the needs of present as well as future generations, i.e.,
development without environmental degradation.
Preference for green consumerism and environment friendly goods will encourage
marketers to add a green tint to their marketing strategies reflecting real environmental
considerations. Marketers will have to give top priority to environmental protection in India
within a few years. In fact, to promote eco-friendly products will become a social
responsibility. Preference for environment friendly goods will itself create immense
marketing opportunities for manufacturers. Eco mark labels on the products can be an
effective promotion / marketing tool.
The new eco friendly process recently discovered by Indian researchers could prove
to be a boon for plastic and pesticide industry where the conventional process yields
hazardous by-products and effluent treatment entails heavy costs. The new process has low
cost, product purity and high yield. It is also duly patented in 1998. Plastic and pesticide
industry is a very great polluter6.
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Ensuring that marketing activities are not misleading to consumers or industry and
do not breach any of the prescribed regulations is the main problem in green marketing.
Claims of green marketing must:
Following are the important strategies of green marketing which are helping to
achieve the objectives sustainability.
Ø Expand a marketing plan outlining strategies with regard to 4 P's (i.e. green
product, green price, green promotion, green physical distribution).
A company which practices green marketing strategies in order to attain the following
goals
Stakeholders are the persons (both natural and artificial) who ever involved in the
development of green marketing practices like consumers, manufacturers , middlemen,
government, society, etc., further they are called as green stakeholders. In this chapter, the
three important stakeholders’ contributions alone are taken in to considerations namely green
consumer, green retailer and green manufacturer.
Consumers are the real assets of business. They are the vocal advocators, insider of
the company, guest, partner and so on. Every business depends upon the consumers. In
traditional marketing, consumers are worried about the quality, quantity, price of the
products. But in the present scenario, all the stakeholders are responsible to safe guard the
environment while doing business. So, important contribution goes to producer and
consumer. Those consumers, who follow green marketing practices while purchasing
products, are called as green consumers.
Products with little or no packaging, products made from natural ingredients and
products that are made without causing pollution are all examples of eco-friendly products.
The green consumer would like to drive a hybrid vehicle, buy products made with hemp or
those made from recycled materials.
While not all “green consumers” are the same, an understanding of some of their
common characteristics can help business operators examine the market for environmental
products and services. Common attitudes and beliefs of these consumers as described by the
International Institute for Sustainable Development (IISD) as follows:
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Green consumers are classified into different types based on their behavior and
interest. The types of green consumers are
These are green to the core consumers who buy only products which have a neutral or
positive impact on the planet, and will go so far as to spread the word about products – both
positively and negatively. A great consumer to have on your side, is not so good if they are
against you. Simply says, green consumers who think and act green; they have negative
attitudes towards products that pollute the environment and incorporate green practices on a
regular basis.
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Consumers in this group try to act green when they can, but if it is not convenient or
doesn’t’ fit some other personal criteria, such as budget they will buy a non-green product. In
other words consumers who think like green consumers but don’t always necessarily act
green.
Basically on the fence about whether they care enough about green issues, these green
consumers can be encouraged to buy green products, as long as it is easy and fulfils their
need. In a nutshell, potential green consumers are those who don’t behave or think along
environmentally conscious lines but remain on the fence about being green.
Resource conservers hate waste. Green consumers would like to wear classically
styled clothing, toting cloth shopping bags and sipping from reusable water bottles. Avid
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recyclers of milk jugs and tide bottles, they drop off old electronics at best buy. They read
news on-line to save trees, and are quick to re-use their Reynolds wrap. Ever watchful of
saving their “drops” and “watts”, they install low flow showerheads and compact fluorescent
bulbs branded with EPA’s Energy Star and Water Sense labels. Shunning over-packaged
products, they only turn on the lights when they have to, and they plug their appliances into
power strips for easy shut-off when they leave for work.
Health extremists worry about overexposure to the sun, fear pesticide residues on
produce, and fret over contaminants in children’s toys. They apply sunscreen, scout out
natural-food stores for the latest in organic foods, but only natural cosmetics and pet care,
and have switched out the toxic cleaning products for the non-toxic ones under the sink.
Animal lovers are likely to be vegetarian or vegan, belonging to People for the
Ethical Treatment of Animals (PETA), and boycott tuna and products with real fur. They
look for products labeled as “cruelty-free”, Salmon safe, or Dolphin-safe. They seek out
synthetic handbags and faux fur jackets, and favor the faux-meat options at restaurants.
They perk up to news stories featuring animals in need, from manatees and polar bears to
strays n their neighbourhood, and are likely to volunteer at the local animal shelter. Out of
concern for marine life, they eschew plastic bags.
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Outdoor enthusiasts spend their free time in the following ways: camping, rock
climbing, skiing, and hiking. They spent their vacations in national parks and plan their next
adventure using tips from Outdoor Magazines.
Sustainable marketing calls for more responsible actions by both businesses and
consumers. Because some people view business as the cause of many economic and social
ills, grassroots movements have arisen from time to time to keep business in line. The two
major movements have been consumerism and environmentalism.
2.13.1.4.1 Consumerism
· The right to introduce any product in any size and style, provided it is not hazardous
to personal health or safety, or to include proper warnings and controls
· The right to charge any price for the product, provided no discrimination exists
among similar kinds of buyers
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· The right to spend any amount to promote the product, provided it is not defined as
unfair competition
· The right to use any product message, provided it is not misleading or dishonest in
content or execution
· The right to use any buying incentive programs, provided they are not unfair or
misleading
Comparing these rights, many believe that the balance of power lies on the seller’s side. True
the buyer can refuse to buy. But critics feel that the buyer has too little information,
education and protection to make wise decisions when facing sophisticated sellers. Consumer
advocates call for the following additional consumer rights:
Each proposed right has led to more specific proposals by consumerists. The right to
be informed includes the right to know the true interest on a loan (truth in lending), the true
cost per unit of a brand (unit pricing), the ingredients in a product (ingredient labeling), the
nutritional value of foods (nutritional labeling), product freshness (open dating), and the true
benefits of a product (truth in advertising). Proposals related to consumer protection include
strengthening consumer rights in cases of business fraud, requiring greater product safety,
ensuring information privacy, and giving more power to government agencies. Proposals
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relating to quality of life include controlling the ingredients that go into certain products and
packaging and reducing the level of advertising “noise”. Proposals for preserving the world
for future consumption include promoting the use of sustainable ingredients, recycling and
reducing solid wastes, and managing energy consumption.
Using a titled earthen pitcher as its symbol, the Eco mark label is intended to enable
consumers to choose products which are environment friendly. Like the BIS mark (formerly
ISI) or the Agmark, an eco mark product is a guarantee that its use will mean less
environmental damage. For getting the eco mark, the product must be produced by the
environment friendly technology. The product must be environment friendly also during
transport, use and disposal. Hence, it must also have package which is environment friendly.
If the product passes these tests, it can be eco marked. Lead-free petrol in India will remove
air pollution.
The products demanding immediate Eco marking are textiles, toilet soaps, detergents,
paper, paints, packages, pesticides and drugs. These consumer goods with eco mark labels
can spur the demand for ‘green consumerism’ which is the prime aim of the eco mark
scheme. Later on we can take other consumer products such as petrol, lubricating oil,
plastics, wood substitutes, food additives, cosmetics, batteries, agricultural products, etc to
get the eco mark stamp.
1. There are products which can be demonstrated to be environment friendly and can be
eco marked.
2. The consumers are environmentally conscious and are willing to buy them, and they
are ready to exercise a choice if alternatives are available.
3. The manufacturers are also having environmental awareness and show keen interest
in the eco mark.
The Central Pollution Control Board in India is the authority to implement eco mark
scheme on voluntary basis. However, so far we do not have even soaps/detergents (not using
phosphates) to be sold under eco mark stamp.
Government and other NGOs try to conduct more attractive programmes about the
importance of green consumerism to consumers for changing their lifestyle and their buying
pattern from traditional system into present one.
Customer satisfaction has been defined in two basic ways: as either an outcome or as
a process. As an outcome, satisfying the end state resulting from the consumption experience.
As a process, it is the perceptual evaluative and Psychological process that contributes to
satisfaction. The definition is varied with regards to their level of simplicity which includes;
· Product satisfaction
· Satisfaction with the purchase decision experience
· Satisfaction with the performance attribute
· Satisfaction with the store or institution
· Satisfaction with pre-purchase experience
Marketing literature suggests that there is a relationship between customer
satisfaction and loyalty. Satisfaction leads to attitudinal loyalty. It could be seen as the
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But there are two other important reasons also for the retailers to consider eco-
friendly practices. First of all, consumers are increasingly becoming aware of eco-friendly
goods and practices. They are ready to spend more on ‘green’ and organic products. Some
retailers see this as an opportunity to expand their offerings. Secondly, retailers realize that
building an eco-friendly brand would differentiate their offerings from those of competitors
in the crowded market.
Initially ‘going green’ was about offering eco-friendly and organic products in stores.
But now the focus is on building green practices in store operations and also along the supply
chain. There is also increased awareness among retailers about carbon footprints at the
manufacturing and operations level. Retailers are looking to create a positive impression on
the consumer’s mind about their brand.
Retailers recognize that many of their customers are making buying decisions that
include a concern for the environment. For example, they may choose a product that has
eliminated wasteful packaging over another product that is packaged with excess materials or
they may choose to shop at a store where the manager reports that new systems were put in
place to reduce energy consumption.
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In addition, green retail managers are choosing to reduce energy costs by employing
transportation practices that are more efficient and they are looking at long term savings from
building new facilities using sustainable building practices9.
To gain a competitive advantage as more and more consumers are becoming aware of
the eco-friendly philosophy, green retailers have diverse and fairly sizeable segments to cater
to. The Surf Excel detergent which saves water, advertised with the message iDoh bucket
paani roz bachanai (Save two buckets of water daily). Energy saving LG consumer durables
and Orpatis power saver bulbs are examples of green retailing.
Show social responsibility: Many organizations have adopted the green philosophy as
a social responsibility. There is a belief among organizations that it can achieve
environmental as well as profit making objectives by adopting green retailing. Many
organizations adopt the eco-friendly motto simply to gain its customersi much Pankit Patwa,
jaint Parekh, Professor Srini R.Srinivasan and Dr. RK. Srivastava elaborate upon the benefits
of green retailing and explain how Indian retailers can adopt the “green” route Green
Retailing. The Indian perspective needed trust. For instance, Infosys technologies prepares all
its reports such as financial reports, annual reports and all other related reports using paper
made from recycled wastes. HSBC became the world’s first bank to go carbon neutral. Other
examples include Coca-cola which has recently invested in various recycling activities. Cell
phone giants such as Sony Ericsson, Toshiba and Nokia have started green retailing by
adopting green manufacturing processes in their electronics items such as cell phones. This
makes it easier to safely recycle the products.
Education institutes such as Amity and ICFAI, Hyderabad are providing eco-friendly
classrooms throughout the institute, hence contributing to green retailing. In this way many
organizations contribute to the promotion of going green as their social responsibility.
The elimination of hazardous waste can drastically reduce costs. Organizations often
develop a symbiotic relationship where the waste of a particular organization is converted
into something useful that can be used by another firm.
This is the right time for businesses to invest in green retailing. No doubt the initial
cost is high,but it would be beneficial in the long run. Investing in green retailing would be a
prudent decision in the long run as it would ensure that the retailer doesn’t have to bend over
backwards and make heavy eco-friendly investments in future.
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Most of the employees also feel proud and responsible to be working for an
environmentally responsible company. The company would also be able to enjoy goodwill
from the retailed industry in the long run.
There are several barriers that come in the way of implementing green retailing. As a
retailer, one must identify these barriers. let us examine the major challenges facing green
retailing. One of the major challenges faced especially by Indian retailers today is convincing
customers to buy green products as there is a lack of awareness among customers about to
green retailing. Customers today are becoming eco-conscious but a lot needs to be done in
order to attract more customers to such products. To realize the true potential of green
retailing, entrepreneurs must help consumers change their behavior. To increase the sales of
environmentally sensible products, companies must remove five barriers namely lack of
knowledge, negative perceptions, distrust, high prices and low availability.
Consumers today are aware that green retailing is the need of hour. But most of them
are unaware of how and in what way to contribute. They do not know what measures they
should take in order to ensure an eco-friendly environment. Their knowledge is only confined
to avoiding usage of plastic. They believe that this is the only thing they can do to save
environmental degradation. Hence, awareness needs to be created among the consumers.
Even if people know about the importance of green retailing, how many of them
actually contribute to it? It is easy to discuss these issues but difficult to actually follow best
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practices. Hence, a desire needs to be created in the minds of consumers so that it becomes a
priority in their lives. The government can initiate this through mass advertising and creating
awareness about following green practices to a large extent.
At times consumers are able to accurately identify which product is eco-friendly and
which product is not. Hence, to safeguard brand reputation, it is vital that eco-friendly
products should be given the appropriate image so that they don’t fail.
Even if the consumers pass the above mentioned barriers, they hesitate to buy because
of the high price of green products. If consumers decide to use green products, a look at the
price tag makes them turn their back on such products. During today’s global economic
crisis, consumers are becoming increasingly conscious of what they buy. Hence, something
needs to be done in order to lower the prices to some extent.
Even though some consumers surpass all the above barriers, they may find out that
the green products that they want are unavailable. Consumers find it difficult to locate such
products. The consumers are not always informed about the availability of these products.
I have hesitated to use the trump card of economics in the green movement, but I
can’t ignore it and neither should you. Why should you be green? If for no other reason (and
there are plenty of good ones) it is because consumers are making buying decisions based on
how the businesses they patronize are doing with becoming green.
These are highly profit minded businesses which are rapidly going green and it is
working for them in cash positive ways. In the Visual Merchandising and Store Design’s
“Emerald Aisle” article, the author explains how consumers are making their buying
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decisions based on the green level of their stores. “They (consumers) want a store
environment that reflects their growing environmental awareness”.
Don’t overdo it, but if you do not point out what you are doing your customer may
not realize it. Bags that use recycled or sustainable materials such as the Green Way products
are branded, inexpensive and can help with your consumer awareness.
That is one of the (many) success keys behind the trendy grocer Whole Foods
Market. Also check out their consumer awareness program with packaging. Buying products
made in the USA not only keeps our money at home, but reduces the carbon footprint in
getting products into your store. You will continue to hear me say there are many
implications to all walks of life. Stay alert and watch for many changes in our businesses. I
think most are for the better11.
Today, the ego green philosophy is the need of the hour. Hence, the future of green
retailing is bright as the awareness of leading a greener lifestyle is increasing day-by-day.
Green retailing not only helps the retailers to cut costs, build their brand name and earn
goodwill among their customers but also creates a sustainable environment for a happier and
safer lifestyle. The order of the day is to accelerate this process and make the retailing
process more eco-friendly and create awareness about eco-friendly retailing among
customers. However, green retailing is still in its nascent stages in India. Retailers should
aggressively promote green practices so as to generate adequate awareness among Indian
consumers about the advantages of purchasing environment-friendly products. Retailers have
to develop an effective supply chain and employ efficient best practices to make these
products available at reasonable rates. Hence, we can say that future of green retailing in
India is promising and we may see the emergence of innovative green techniques in the
future.
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Owing to increased concern about global warming and the ramifications of pollutive
industries for the global environment, manufacturers are seeking practical solutions that can
be implemented to sustain green manufacturing practices. Consumers assume that the
products they consume are safe and do not harm the environment. However, manufacturers
and consumers need to take a closer look at manufacturing practices. There is a growing need
to understand that certain products and their related manufacturing practices can endanger the
environment.
Green manufacturers are having some responsibilities for saving the natural resources
while producing the goods. Such responsibilities are
• Identify, assess and manage environmental risks associated with our operations and
products throughout their life cycle, to reduce or eliminate the likelihood of adverse
consequences;
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• Comply with all applicable legal and regulatory requirements and, to the extent we
determine it appropriate, adopt more stringent standards for the protection of our employees
and the communities in which we operate;
• Establish a formal Environmental Protection Program, and set specific, measurable goals;
• Establish assurance programs, including regular audits, to assess the success of the
Environmental Protection Program in meeting regulatory requirements, program goals and
good practices;
• To the extent that proven technology will allow, eliminate or reduce harmful discharges,
hazardous materials and waste;
• Make reduction, reuse and recycling the guiding principles and means by which we achieve
our goals;
• Prepare and make public an annual report summarizing our environmental activities;
• Work as advocates with our suppliers, customers and business partners to jointly achieve
the highest possible environmental standards;
• Provide regular communications to, and training for, employees to heighten awareness of,
and pride in, environmental issues.
Manufacturing is a wonderful thing, producing goods that vastly improve our quality
of life. Even the most common of human endeavors are made simpler, safer, more
productive and more enjoyable through the use of manufactured goods. Producers are
infinitely better off because they are able to manufacture clothing, shelter, household
goods, computers and medicine. But they can’t make all those wonderful goods without
harming the environment. The first reason is that nothing can be manufactured without raw
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materials. The very essence of manufacturing is taking raw materials and turning them into
something more valuable. Whether producer manufacture automobiles or ladies’
undergarments, the raw materials have to come from somewhere—and those materials
have to be mined, harvested, drilled or otherwise extracted from the earth and its
environment12.
Removing those raw materials affects the environment and diminishes natural
resources. Many of those raw materials—petroleum, for example—are irreplaceable. Once
they’re gone, they’re gone. Even in industries where the primary raw materials are
renewable—paper products, for example—the act of physically transforming those raw
materials into end products often requires numerous processes and enormous amounts of
energy. Paper producer have to saw the logs, transport them to a mill, grind them into pulp
and so on. As it turns out, it takes a lot of effort to turn trees into toilet paper. That effort is
measured in energy. Creating energy doesn’t come for free.
No matter what source of energy people use, creating it harms the environment in
some way. When the energy comes from a coal-fired power plant, most everyone
acknowledges the harm to the environment. But even the most environmentally friendly
energy sources do some harm. Bird’s fly into the blades of a wind turbine. Dammed rivers
affect fish populations and other wildlife. There is no free energy. No matter what the
source, creating energy requires machinery, which, in turn, has to come from somewhere.
On top of all that, most manufacturing operations have by-products—the leftover scraps,
chemicals and waste that aren’t used in the end product. Waste water, coolants, and other
byproducts have to go somewhere.
What’s green about that? So green manufacturing is a pipe dream, right? Trying to
create a completely green manufacturing enterprise seems to be a losing battle. It can’t be
done. There’s not a single product that can be manufactured without causing some harm to
the environment, at least not with today’s technology. But the funny thing about
technology is, it’s always changing. The way producers were manufactured their end
product yesterday might not be the best way to manufacture it today. New processes
and technologies are constantly being invented, and they often use less energy, take
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2.14 SUMMARY
Green Marketing refers to marketing where ecological issues are the focal point of
marketing decision- making. It ranges from change in raw materials to change in packaging
materials. It includes change in product design or even substitution of one product by
another. It is also encompasses disposal of waste generated during production and
distribution, the disposal of surplus or expired products and even the disposal of packaging
after the use of the product. There is ample scope for green marketing at both the
manufacturers’ end and marketers’ end.
REFERENCES