Download GREEN PRODUCTS: MARKETING, STRATEGIES AND

GREEN PRODUCTS: MARKETING, STRATEGIES AND PROMOTION
Yasir Ikram
Project Engineer, Metal Services FTC, MEP Division, KSA
Abstract
Green works as a "third button" in marketing-first marketers focus on price and
quality, and then grabs the market with green. Consumers passionate about green
will remain small, but green products are able to appeal to mainstream consumers
by offering "non-green" consumer values (such as convenience and performance).
Consumers are buying green products - but not necessarily only for environmental
reasons. The market for organic foods and energy-efficient appliances is growing
because consumers desire their perceived safety and accrued money savings. It
believes that there are five actions that define green brand leaders. These five
actions need to be considered by companies looking to label their brands as green,
(1) Companies should acknowledge that environmental issues need serious
attention and they can be a part of the solution. (2) Leading brands should provide
public disclosures of their environmental and social impact. (3) Companies should
work hard to build credibility and earn consumer trust over time in relation to
these green issues. (4) Companies should recognize that consumer expectations
have changed. (5) Consumers expect the products that they purchase would help
reduce the environmental impact in their own lives too.
Introduction
"Green Marketing" refers to holistic marketing concept wherein the production, marketing
consumption an disposal of products and services happen in a manner that is less detrimental to
the environment with growing awareness about the implications of global warming, nonbiodegradable solid waste, harmful impact of pollutants etc., both marketers and consumers are
becoming increasingly sensitive to the need for switch in to green products and service. Green
marketing subsumes greening products as well as greening firms. In addition to manipulating
the4Ps (product, price, place, promotion) of the traditional marketing mix, it requires careful
understanding of public policy processes. Green marketing mainly focuses on promoting
products by employing claims about their environmental attributes or sell them. Secondarily, it
focuses on product and pricing issues.
Green Marketing Strategies
Green products have been around since the 1970s, but it’s only in recent years that they’ve
become ubiquitous. It’s not because consumers suddenly prize sustainability above all. It’s
because savvy green marketers are no longer trying to “sell the earth”—instead they’re
promoting the value their products provide: better health, superior performance, good taste, costeffectiveness, or simply convenience. This central emphasis on primary benefits—the new
rules—is critical to winning over the mainstream consumer.
Decisions towards Green Marketing: Green Responsibility
There is an increasing need for businesses to emphasize on green marketing concerns in their
mission statements. Green efforts must also prove to be economically viable for companies to
engage in green marketing activities. Green Marketing remains the responsibility of the main
stakeholders – consumers, the business and the government. The results show that a serious
effort to green up company’s image can yield long-term and even global benefits.
Eco Strategic Change Management Concept
Just like any integrated marketing communication approach, green marketing must involve
extensive coordination across functional areas to be effective. Strategic greening in one area may
or may not be leveraged effectively in others. A firm could make substantial changes in
production processes but opt not to leverage them by positioning itself as an environmental
leader. So although strategic greening is not necessarily strategically integrated into all
marketing activities, it is nevertheless strategic in the product area. To realize these strategic
benefits will require an innovative firm with the will to question the very basis of what and how
it operates Innovative companies choosing to adopt a strategic environmental marketing focus
need to continually reevaluate and improve their overall performance. This is necessary because
knowledge and acceptable environmental practices are continually changing
Growth of Organic Farming and Government Support
Furthermore, given managers' concern about the lack of production standards for organic
produce, government legislation on standards and labeling would increase their willingness to
stock such products. Governmental support, such as the assignment of special farming zones for
organic produce, subsidies, and the reorganization of the certification system will facilitate the
growth of organic farming. Establishing comprehensive national standards will also help the
export of organically produced products, thus providing new opportunities
Greening Business
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. Faced with a growing environmental consciousness, many business firms are adopting a
pro-environment stance in hopes of improving credibility with the public. Unfortunately, some
companies have been a bit overzealous with their environmental claims, prompting cries of
"green washing" from critics. 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. 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. Companies are also becoming more
environmentally responsible as part of an overall commitment to Total Quality Management or
sustainable development. Sustainable development involves meeting the needs of the present
without compromising the ability of future generations to meet their own need
How to take advantage of Green Marketing
This is the most important rule for a new “Green” ad campaign to follow. Putting “Green” in
quotes has couple benefits. The first benefit is that it shows people that “Green” is a reference to
the environmental movement. Secondly, quotation marks make the word “Green” look like it’s
sweating from the pure heat of the sun.
Work In the Color Green
This might be hard for companies selling products that aren’t already colored green, but studies
have shown that a green-colored product combined with environmental slang can skyrocket
sales. For example, if your company sells lettuce, slapping “Green” on lettuce ad might sell
consumers who initially planned to just find a field full of grass. Let’s try a visual example using
a popular American product — Coke.
Environmentalists love products that use natural ingredients. Unfortunately, not many companies
stress this in their advertising.
Don’t Forget Recycled Materials
Another great tip for successful “Green” advertising is to use recycled materials in your product
or product’s packaging.
Disadvantage
While green living is often touted as having numerous benefits for the Earth and its inhabitants,
there are also certain disadvantages to going green. While living in an environmentally-friendly
way can help to minimize certain negative impacts to the planet, there are certain factors
associated with going green that can potentially be a drawback for those who adopt this type of
lifestyle.
Cost: While many behaviors and practices associated with going green are designed to save
money, there are certain ways in which green living can actually be moderately to very
expensive.
Time: Another potential disadvantage to going green is the time factor. Time is an issue with
green living in two separate ways. The first is that adopting a green lifestyle can often be time-
consuming for those who are fully committed to green living. The time factor is also an issue in
terms of the payback rate of certain green living investments. For example, growing a garden is a
great way to promote healthy living and sustainability but it doesn't happen overnight.
Environmental Impact: Going green can also potentially have a negative effect on the
environment. For instance, the development of alternative fuels is an innovation in the green
movement in an effort to reduce reliance on nonrenewable natural resources. While these fuels
are intended to reduce the toxic emissions caused by the burning of traditional gasoline, they
may have unintentionally caused the opposite effect. One of these alternative fuels, known as
E85, actually releases more ozone into the atmosphere than traditional fuel. While ozone is a
natural part of the Earth's upper atmosphere, if it becomes concentrated in the lower atmosphere,
it can potentially increase air pollution in areas where smog is a concern, which can in turn
impact the health of those living in these area.
Marketing and Promotion of Green Products
Both consumers and managers have very positive attitudes toward organic produce. However,
from the managers' point of view, limited demand and high prices were major concerns. On the
other hand, consumers were primarily concerned by the limited availability. In order to increase
demand, considerable efforts are needed to increase availability and improve the distribution
systems. Making organic produce an essential part of the product lines of conventional
supermarkets will increase availability, thus improving distribution and reducing price
differentials. Furthermore, as more organic produce arrives in the marketplace, prices are likely
to drop. More demand will lead to more supply and more competition, and, as a result, lower
prices. Government policies related to the provision of market information to marketing
decision-makers and consumers could also improve the performance of the organic marketing
system .Promotional efforts will have to focus on 'educating' consumers on the relationship
between organic produce, health and the environment. Lifestyles of Mauritian consumers are
changing and, given the increased interest in nutrition and exercise, organic sensibility is likely
to be well received by consumer
References
1.
www.epa.qld.gov.au/sustainable_ industries
2.
Chopra, S. Lakshmi (2007), "Turning Over a New Leaf", Indian Management, Vol-64,
April-2007.
3.
www.greenmarketing.net/stratergic.html
4.
Ottoman, J.A. et al, "Avoiding Green Marketing Myopia", Environment, Vol-48, June-
2006.