Green marketing

Green Marketing

1. SUBJECT : MANAGERIAL ECONOMICS SHARANBASAVA UNIVERSITY PRESENTED BY AVINASH PATIL. SACHIN PATIL. ANAND.B. CHANDRIKA. PARAVATI.K. KIRAN.R. AVINASH.E.B SACHIN.S. JUNEED FAISAL. SHASHANK. TOPIC : GREEN MARKETING

2. CONTENT INTRODUCTION. HISTORY. DEFINATION. EVOLUTION. WHY GREEN MARKETING ? MARKETING MIX . GREEN MARKETING ASPECT’S. STRATEGYS. BENEFITS. CHALLENGES. TOP 10 COMPANIES ADOPTED GREEN MARKETING. SUGGESTIONS. CONCLUSION .

3. INTRODUCTION. Green marketing is the marketing of products that are to be environmentally safe. It incorporates a broad range of activities, including product modification, changes to the production process, sustainable packaging, as well as modifying advertising HISTORY. 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”

4. DEFINATION. Green marketing refers to the process of selling products and/or services based on their environmental benefits. such as: Not containing toxic materials or ozone-depleting substances Able to be recycled and/or is produced from recycled materials Being made from renewable materials Being designed to be repairable and not "throwaway"

5. EVOLUTION. Phase I: "Ecological" Green Marketing: focus on reducing Environmental Problems & providing Remedies. Phase II: "Environmental" Green Marketing: focus on innovations through Clean Technology. Phase III: "Sustainable" Green Marketing: focus on preservation of Environment through Sustainable Development.

6. WHY GREEN MARKETING ? Opportunity. Social-Responsibility. Governmental-Pressure. Cost-Reduction.

7. In India, around 25% of the consumers prefer environmental-friendly products, and around 28% may be considered healthy conscious. The Surf Excel detergent which saves water (advertised with the message—"do bucket paani roz bachana ") and the energy-saving LG consumers durables are some of the examples of green marketing. OPPORTUNITY.

8. SOCIAL- RESPONSIBILITY. Many companies have started realizing that they must behave in an environment-friendly fashion. They believe both in achieving environmental objectives as well as profit related objectives. The HSBC became the world's first bank to go carbon-neutral last year. Other examples include Coca-Cola, which has invested in various recycling activities. Walt Disney World in Florida, US, has an extensive waste management program and infrastructure in place.

9. GOVERNMENTAL-PRESSURE Various regulations rare framed by the government to protect consumers and the society at large. The Indian government too has developed a framework of legislations to reduce the production of harmful goods and by products. These reduce the industry's production and consumers' consumption of harmful goods, including those detrimental to the environment; for example, the ban of plastic bags in prohibition of smoking in public areas, etc.

10. Reduction of harmful waste may lead to substantial cost savings. Sometimes, many firms develop symbiotic relationship whereby the waste generated by one company is used by another as a cost-effective raw material. For example, the fly ash generated by thermal power plants, which would otherwise contributed to a gigantic quantum of solid waste, is used to manufacture fly ash bricks for construction purposes. COST-REDUCTION.

11. MARKETING MIX . Each and every organization contains their own mix of marketing, like few contains 4Ps mix of marketing and few contains 7Ps mix of marketing. The green marketing 4Ps are like the normal marketing but the challenge to the marketers of green marketing is to avail them in a creative and innovative way. The 4Ps of green marketing are as follows: Product mix Price mix Promotion mix Place mix

12. PRODUCT MIX. The products have to be developed depending on the needs of the customers who prefer environment friendly products. Products can be made from recycled materials or from used goods. Efficient products not only save water, energy and money, but also reduce harmful effects on the environment. For example , Nike is the first among the shoe companies to market itself as green. It is marketing its Air Jordan shoes as environment-friendly, as it has significantly reduced the usage of harmful glue adhesives.

13. PRICE MIX. Green pricing takes into consideration the people, planet and profit in a way that takes care of the health of employees and communities and ensures efficient productivity. Value can be added to it by changing its appearance, functionality and through customization. Prices for such products may be a little higher than conventional alternatives. For example , Wal Mart unveiled its first recyclable cloth shopping bag.

14. PROMOTION MIX. Green promotion involves configuring the tools of promotion, such as advertising, marketing materials, signage, white papers, web sites, videos and presentations by keeping people, planet and profits in mind. For example , Toyota is trying to push gas/electric hybrid technology into much of its product line. It is also making the single largest R&D investment in the every-elusive hydrogen car and promoting itself as the first eco-friendly car company.

15. PLACE MIX. Green place is about managing logistics to cut down on transportation emissions, thereby in effect aiming at reducing the carbon footprint.A distribution logistics is of crucial importance; main focus is on ecological packaging. Marketing local and seasonal products

16. GREEN MARKETING ASPECT’S In Financial services In Transportation services. In Medical services. In Educational services.

17. FINANCIAL SERVICES Use of electronic printing media. Use of technology to cut short the use of paper. Use of Air-conditioner with a high star rating & use CFL lighting to reduce power consumption. Green plantations Within the working place Wide use of public transportation system. Electric vehicles for rent Use less combustible fuel. TRANSPORTATION SERVICES.

18. MEDICAL SERVICES. Use paper cover instead of plastic Free medication camp Use proper treatment for Medi -Waste. EDUCATIONAL SERVICES. Use of electronic media to avoid paper & other stationary. Maintain greenery in campuses. Discourage the use of individual vehicle .

19. STRATEGYS. Green design. which means that the company produces organic, pure, and high-quality products. These strategies are adopted by the companies when there is a huge demand for organic or green products Green positioning. It is one of the core responsibilities of the organization to promote its performance that is very sustainable and environment-friendly. It should also promote its organic product and services.

20. Green pricing . The other important strategy used by organizations to effectively implement green marketing is green pricing. The company should educate its customers about green products and services and how they can benefit consumers by saving important and precious resources. It can compare products which are pure and organic with the products that are not high-quality.

21. Green logistics. It is very essential for the organization to create green packaging for the products that are green. Packaging has a great impact on the minds of the consumers. It is very much clear that the product with poor-quality packaging and which are unsustainable is not likely to be purchased by the consumers. Most of the big companies like Microsoft, Unilever, and Logitech opt for easy-to-open packaging which is recyclable. The firms like Amazon provide the outsourcing services to their partner firms and make their packaging in an easy-to-open manner which is recyclable

22. Green disposal. It is very important for the organization to consider every aspect of product through its entire lifecycle in order to implement the green marketing strategies effectively and efficiently. Every activity that is being conducted from the production of the product to its disposal must be sustainable and environment-friendly. If the unsustainable practices are followed at any stage during the lifecycle of the product, then it may be harmful to the environment as well as for humans.

23. BENEFITS It ensures sustained long-term growth along with profitability. It saves money in the long run, thought initially the cost is more. It helps companies market their products and services keeping the environment aspects in mind. It helps in accessing the new markets and enjoying competitive advantage. Most of the employees also feel proud and responsible to be working for an environmentally responsible company.

24. CHALLENGES Green products require renewable and recyclable material, which is costly Requires a technology, which requires huge investment in R & D Water treatment technology, which is too costly 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.

25. COMPANIES ADOPTED GREEN MARKETING LG. HCL Haier . Samsung. Tata Consultancy Services. Oil and Natural Gas Company. IndusInd Bank. ITC Wipro. MRF Tyres .

26. LG INDIA LG India has been a pioneer is making electronic gadgets that are eco-friendly. Recently, it has launched a LED E60 and E90 series monitor for the Indian market. Its USP is that it consumes 40% less energy than conventional LED monitors. Also, they hardly used halogen or mercury, trying to keep down the use of hazardous materials in their products. HAIER'S Eco branding is a part of Haier’s new green initiative and they have launched the Eco Life Series. They have semi automatic and automatic refrigerators and washing machines, split and window air conditioners and a lot more.

27. HCL HCL is another brand that is trying to introduce eco- friendly products in the market and it has recently launched the HCL ME 40 notebooks. These notebooks do not use any polyvinyl chloride (PVC) material or other harmful chemicals and the Bureau of Energy Efficiency already given it a five star rating. SAMSUNG Samsung India has always had a roaring range of LED TV screens and now they have come up with eco- friendly LED backlight. They use 40% less electricity have also no harmful chemicals like mercury and lead.

28. TCS TCS has a globally recognized Sustainability practice and has already topped the Newsweek’s top World’s Greenest Company title. It also has a global green score of 80.4% and this has mainly happened due their initiative of creating technology for agricultural and community benefits. ONGC ONGC(Oil and Natural Gas Company) India’s largest oil producer is all set to change the way with the invention of green crematoriums, that would serve as a perfect replacement for the funeral pyres that emit so much smoke and uses up excess oxygen.

29. INDUSIND Bank. One of the first banks in India to discourage the use of paper for the counterfoils in ATMs, and sending electronic messages, it has contributed a lot towards saving paper and reducing deforestation. ITC. One of the first banks in India to discourage the use of paper for the counterfoils in ATMs, and sending electronic messages, it has contributed a lot towards saving paper and reducing deforestation.

30. WIPRO. Wipro, has not only helped in the creation of technology that helps in saving energy and preventing wastes, but its corporate headquarters in Pune is the most eco friendly building in this sector all over India. MRF. MRF has launched the ZSLK series and this is all about creating eco- friendly tubeless tyres made from unique silica- based rubber and also offers extra fuel efficiency to those who drive their vehicles.

31. SUGGESTIONS. Create awareness about green products among consumers. Green products prices should be accordingly to there quality. There should not be more prices difference between Normal products and Green products. Green products quality should be more standard than noraml products.

32. CONCLUSION. Green marketing covers all the parameters and even it covers more than the marketing claims of an organization. So, the organizations or companies which are committed to reducing the environmental pollution not only generate goods which have decreased their impact on the environment but also make their employees to strictly follow the rules regarding the environment and protecting the environment. Therefore, all the companies should reduce activities that cause pollution and support the environmentally friendly activities.