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BY:Nitish Khurana
GREEN
MARKETERS
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Evolution of Green MarketingThe term Green Marketing came into prominence in the
late 1980s and early 1990s.
The green marketing has evolved over this period oftime. The evolution of green marketing had three
phases. First phase was termed as "Ecological" green
marketing, and during this period all marketing
activities were concerned to help environment
problems and provide remedies for environmental
problems.
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Second phase was "Environmental" greenmarketing and the focus shifted on cleantechnology that involved designing of innovativenew products, which take care of pollution andwaste issues.
Third phase was "Sustainable" green marketing.It came into prominence in the late 1990s and early2000. This was the result of the term sustainable
development which is defined as "meeting theneeds of the present without compromising theability of future generations to meet their ownneeds."
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What is Green Marketing? All activities designed to
generate and facilitate
any exchanges intendedto satisfy human needs or
wants, such that the
satisfaction of these
needs and wants occurs,
with minimal detrimental
impact on the natural
environment
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Thus "Green Marketing" refers to holistic marketing
concept wherein the production, marketing,consumption and disposal of products and serviceshappen in a manner that is less detrimental to theenvironment with growing awareness about theimplications of global warming, non-biodegradable
solid waste, harmful impact of pollutants etc., bothmarketers and consumers are becoming increasinglysensitive to the need for switch in to green productsand services.
While the shift to "green" may appear to be expensivein the short term, it will definitely prove to be
indispensable and advantageous, cost-wise too, in thelong run.
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Power
Costs
Space
Heat
Demand
Users
Services
Access
The cost of operating
power for servers is to
surpass the cost to buy
them in the next five years
IDC Report, 2007
Energy bills traditionally have
accounted for less than 10% ofan overall IT budget but soon
could account for more than
half--- ---Gartner,
2008
By 2010, environment-related
issues will be among the top 5IT management concerns for
more than 50% of state & local
government organizations in
North America, EMEA and
Australia ---Gartner, 2008
Growing Demand, Shrinking Resources
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Adoption by Firms
OPPORTUNITIESGOVERNMENTAL
PRESSURECOMPETITIVEPRESSURE
SOCIALRESPONSIBILITY
COSTORPROFITISSUES
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SWOT Analysis
-Access tonew markets
-Can chargepremium
-Sociallyresponsible
-Builds
brand equity& loyalty
STRENGTHS
-People choosepersonal needsthan
environmentalneeds
-Overemphasizing greenness
can provedevastating fora product
WEAKNESS
-Demand ofproducts withnew attitudes
-Organizations
perceivegreenmarketing to
be acompetitiveadvantage
OPPORTUNITIES
-Uncertainty as towhich greenmarketing
activities areacceptable from agovernment
perspective.
-The possibility of
a backlash fromconsumers orgovernment basedon existing greenmarketing claims
EXTERNALTHREATS
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Market Segments for green products:
Segment 1General
Consumer
Segment 2Government
Agencies
Segment 3Private
Industries
Segment 4Non ProfitCompanies
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CONSUMERVALUE POSITIONING
Design environmental products to perform
as well as (or better than) alternatives. Promote and deliver the consumer desired
value of environmental products and target
relevant consumer market segments.
Broaden mainstream appeal by bundling
consumer desired value into environmental
products.
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UNDERSTANDING CONSUMERPERCEPTION
AND PRIORITIES TO MAXIMIZE BUSINESS
a)What they are purchasing?
b) How are they prioritizing- between organic,
fair trade, carbon friendly and so on?
c)Whether the consumers are getting what
they want to purchase?
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Implication for Green Marketers
Target products to women who generally buy on behalf of men and families.
Use the influence of children to encourage parents to try green products.
Effectively communicate assurance of quality.
Like environmental attributes such as energy efficiency or toxic substance
reduction with other benefits such as lower price, convenience, or quality of life
improvements.
Emphasize personal benefits by using terms such as safe, non-toxic, cost
effective
Making the use of product. Select mainstream distributors wherever possible. Offer
one-stop shopping and eye appealing displays.
Reinforce product benefits with evidence of corporate performance and
improvements. Educate consumers about environmental issues and your efforts
through a variety of means.
Communicate your steps towards sustainability and commitments to improvement.
Seek feedback and promote your efforts to respond to customer concerns.
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CONVENTIONALMARKETING GREEN MARKETING
Consumers Consumers with lifestyles Human beings with lives
Products Cradle-to-grave one size fits for all
products
Cradle-to-Cradle
flexible services
Marketing and
Communication
Selling oriented and benefits Educational Values
Corporate Receptive, Independent, competitive,
Departmentalized, Short term
oriented profit maximizing.
Proactive,
Interdependent,
cooperative,Holistic, long
term
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What drives Environmentally Conscious
Consumer Behavior
Environmentally Consciousness Consumer Behavior (ECCB) as a
process involving consumer environment, constructs, mediators
and outcomes.
The underlying influencers of ECCB are complex and different
approaches to consumer motivation
account for them in various ways.
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SEGMENTATION OF GREEN
CONSUMERS
True-Blue Greens
Greenback Greens
Spouts
Grousers
Apathetic
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Consumer Information and Education
If managers believe that consumers view
greenness as a motivating variable, they should
invest in conveying information throughadvertising, direct mailing, brand labels, in-store
displays and pamphlets.
Green marketing can be successfully implemented
by use of ICT in cost effective way
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Identify and Target the Green Consumer
Green Activists 10%Green Consumers
27%
Inactive 23% Latent Green 40%
Types of Green Consumers
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Identify and Close the Green Gap
The gapscab beclosed byinnovativelyaddressing
thefollowingarea:
Green product:
GreenValue and lesser Price
Customer Information
Special and Green Place
Green promotion Aided by ICT
Partnership
Trust
Publicize Stories of the Companys and Employees GreenInitiatives
Compete for Environmental Awards
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STRATEGIES TO BE IMPLEMENTED IN
GREEN MARKETING
PRODUCTDIFFERENTIATION
DESIGNING BIO-DEGRADABLE PACKAGING
PRODUCT STRATEGY
DISTR
IBUT
IO
N STR
AT
EGY
LIFE-CYCLE ANALYSIS
INCENTIVES AND STRUCTURALFACTORS
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Clear policy signals are essential to incentivise eco-innovation
Source: OECD (2010), The Invention andTransfer of EnvironmentalTechnologies
0
1
2
3
4
5
6
7
8
9
10
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1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004P
atentingactiv
ityinAnnex1ratificatio
ncountries
(3-yearmovingaverage,
indexedon
1990=1.0
)
Wind power
Fuel cells
Lighting
Solar PV
Electric cars
All tech. sectors
1997- Kyoto Protocol
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Conclusion Green marketing should not neglect the economic aspect of
marketing. Marketers need to understand the implications ofgreen marketing.
If we think customers are not concerned about environmentalissues or will not pay a premium for products that are moreeco-responsible, then we should think again.We must find anopportunity to enhance product's performance and strengthenyour customer's loyalty and command a higher price.
Green marketing is still in its infancy and a lot of research is tobe done on green marketing to fully explore its potential.
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Marketers also have the responsibility to make the consumers
understand the need for and benefits of green products as
compared to non-green ones. In green marketing, consumers
are willing to pay more to maintain a cleaner and greener
environment.
Finally, consumers, industrial buyers and suppliers need to
pressurize the minimizing of the negative effects on the
environment. Green marketing assumes even more importance
and relevance in developing countries like India.
Successful green marketers will reap the rewards of healthy
profits and improved shareholder value and help in making the
world a better place for future generations.
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Q&A
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THANK Uuuuuuuu.