* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download Contemporary Logistics On the Construction of Enterprise’s Green Marketing System
Ambush marketing wikipedia , lookup
Neuromarketing wikipedia , lookup
Guerrilla marketing wikipedia , lookup
Multi-level marketing wikipedia , lookup
Digital marketing wikipedia , lookup
Marketing research wikipedia , lookup
Marketing channel wikipedia , lookup
Integrated marketing communications wikipedia , lookup
Viral marketing wikipedia , lookup
Youth marketing wikipedia , lookup
Marketing strategy wikipedia , lookup
Direct marketing wikipedia , lookup
Marketing plan wikipedia , lookup
Advertising campaign wikipedia , lookup
Marketing mix modeling wikipedia , lookup
Multicultural marketing wikipedia , lookup
Sensory branding wikipedia , lookup
Global marketing wikipedia , lookup
Contemporary Logistics 08 (2012) 1838-739X Contents lists available at SEI Contemporary Logistics journal homepage: www.seiofbluemountain.com On the Construction of Enterprise’s Green Marketing System Jukui MA1,*, Lijuan WANG 2 1. Department of Ideological and Political Theories Teaching and Research, Yulin University, Yulin 719000 Shaanxi, P.R.China 2. Department of Economics and Law, Shaanxi University of Technology, Hanzhong 723001, Shaanxi, P.R.China KEYWORDS ABSTRACT Green demand, Green marketing, Marketing System, System construction Green marketing is a practical mode of modern enterprise marketing during its development. In order to promote the development of green marketing, a green marketing system of an enterprise must be constructed based on strategic management, organizational structure, organizational culture, research and marketing combination. © ST. PLUM-BLOSSOM PRESS PTY LTD 1 Introduction Because of the globally severe environmental pollution and increasing shortage of natural resources, environmental protection has become the common concern in the contemporary world. As a result, since the 1990s, people’s comsumer demand has taken a dramatic change of transforming from the tradtional comsumer demand focused on the material value of commodities to the green comsumer demand characterized by the emphasis on the non-material value. Under such conditions, green marketing came into being as effective means to achieve the sustainable deveopment of enterprises; moreover, it is a more pracitical resort to promote modern enterprise’s marketing. 2 Green Demands and Green Marketing 2.1 Necessary rise of green demand Green demand (green consumer demand) refers to the affordable demand for green products or service complying with the standards of environmental proctection. Green demand is the ecologicalization of market demand, that is, it is a reflection of people’s ecological demand in the market demand incuding the practical and patential demand for greeen products and service. As a practical demand, it must be an agreement of green consumption intention and actual paying capacity. Traditional industrialization model has resulted in severe ecological and environmental issues such as greenhouse effect, damage to ozone layer, desertification of land, population boom, unrestrained expoiltation and overuse of non-renewable natural resources and reduction of species. Due to these problems, human beings are facing with a difficult condition for sustainable development. Under * Corresponding author. Email: [email protected] English edition copyright © ST. PLUM-BLOSSOM PRESS PTY LTD DOI: 10.5503/J.CL.2012.08.002 8 such curcumstances, the conception of sustainable development and green demand were introduced which became a new direction of enterprise development. 2.2 Green marketing and its status quo 2.2.1 Definition of green marketing In the book, Green Marketing---Operating Trend of Transforming Crisises into Opptunities, professor Kenpeattie in Wales University of UK points out “green marketing is a social demand which can identify and predict, and at same time be in accodacne with comsumption; it is a ajusting process which can produce profits and sustainable operation.” [1] Scholars in China also hold that “green marketing means that enterprises should protect the earth’s resources and environment, prevent pollution to protect eco-system during its process of marketing, and fully utilize and recycle renewalbe resources to bring benefits to future generations.”[2] Therfeore, it is clear that green marketing is a notion of sustainable development of enterprise marketing. On one hand, enterprises need to sell their green products or service on a basis of green production so as to meet the green demand of society; on the other hand, the notion of sustaianable development can be used to shape the marketing framework of enterprises so that the marketing can meet the requirments of environmental proctection, satisfy the green demand of society and achieve the sustainable development of enterprises. 2.2.2 Characteristics of green marketing Conceptual Sustainability. The foundation of green marketing is the enterprise’s green products or service; therefore, it will help to boost the enterprise’s friendly environmental production and realize its sustainable development; meanwhile, as the marketing body, the enterprise will inevitablely infuse the notion of sustainable development into its marketing activtities, then practise and popullarize green production, green marketing and green comsumption and finally contribute to the establishment of the notion of sustainable devepment. Benefit Integraty. The notion of sustainable development is the starting point of green marketing, thus, it takes into account of economic, social and ecological benefits, as well as the short-term and long-term benefits. Environmental friendliness of the process. As an activity, marketing consists of two stagtes: dicision-making and impelementation. During the stage of decision-making, efforts are made on the necessity of marketing, marketing strategies, assessment and prediction of marketing benefits, etc. The stage of implementation covers the following components: organization of marketing team (marketing body), comsurmers’ survey (marketing target), the package and promotion of products and service to be marketed (marketing carrier), marketing process (marketing activity). Any successful marketing is certainly characterized by its own striking feature or culture [3], and the feature of green marketing is its environmental frienliness which must be infused into the whole process of marketing. Only in this way can it play the role of leading the environmental protection and popularizing the green creed, therefore, the green marketing is a type of environmentally-friendly marketing. 2.2.3 Analysis of the status quo of green marketing The first production base of green vegetables was established in the year of 1984, Guangdong province of China. In the year of 1989, Chinese Ministry of Agriculture organized experts to conduct reserach and put forward the notion of green food. In November, 1992, The China Green Food Development Center was approved by the State Council and the Procedures on the Administration of Organic (Natural) Food Labeling was published, then regulations of green food labeling began to be implemented in China. In September, 1993, the Environmental Protection Bureau of China published its environmental label. In March, 1994, the State Council approved and promulgated the China’s Agenda 21, namely, the White Paper on China's Population, Environment, and Development in the 21st Century which served as a guidance doucument for China to develop its long-term plan for national economic and social development[4]. This poses higher requirements for Chinese enterprises and significant influence on the marketing activities. However, the green marketing of Chinese enterprises has the following deficiences: The first one is the public indifferent attitude towards green consumption and green marketing [5]. From the perspective of consumers, most Chinese consumers cannot accept the notion of green marketing and green consumption due to the late introduction and inadequate popularization of green marketing. From the point of view of the producers, when the management thought is concerned, many enterprises are still at the stage of concentrating on the promotion of products. They are accustomed to the tranditioal marketing appoach and not interested in programmes for public good and reluctant to invest in the environgmental protection. As a matter of fact, these enterprises are attracting consumers by discounts and a variety of rewards raher than the qulity of their products. The seccond deficiency is the lack of green marketing environment. The environmental property mechanism is not sound in China. There are many problems lying in environmental legislation and judicial system of the government. Functional department is not effective when the management of ecological environment is concerned. As a completely new operation attempt, the implementation of green marketing by enterprises plays an important role in coordinating the interests among enterprises, consumers and society; therefore, it needs not only the conceptual understanding and support from the government, but also a better green marketing environment created with great efforts by the government. The third deficiency is the out-of-date green production technology and management. Since the development of green technology includes the long period, high expense, huge risk and difficulties to predict market demand, the adoption of green technology calls for a large amount of investment. It would be impossible to require enterprises to invest a large amount of fund in improvement of the environmentally-friendly technology and equipment and buying new machines, especially under the condition that the Chinese enterprises are all indifferent to the green marketing. This enormously limits the innovation and popularization of green technology. 9 3 Necessity for Enterprise to Adopt Green Marketing As the basic organizational unit of economy, the enterprise is the major source of environmental pollution and damage to eco-system. As a result, it is a necessary choice for the enterprise to adopt green marketing: it is the internal and external requirement of the enterprise, the demand of society and nature, the need from home and abroad, the requirement of public and government and the demand of morality and market. Specifically speaking, the following reasons lead to the adoption of green marketing by enterprises. 3.1 Green marketing’s adaption to the demand of the current international trade Currently, liberation is the trend of international trade, and the effects of the traditional trade protectionism characterized by tarrif barrier is relativelly redueced, nevertheless a new non-tarrif barrier---“green barrier” is rising in international trade. In recent years, the effects of “green barrier” on our country’s foreign trade export have surpassed the effects of “anti-dumping” cases. Facing such severe challenge, only through the implementation of green marketing, devepment of “green products”, and positive adaption to the new trends and demands of international market, can enterprises breakthrough the “green barrier”, avoid the environmental risk, enter international market smoothly and gain success in the international competition. 3.2 The conduct of green marketing is favorable to the establishment of brand image of enterprises Owing to the fierce market competition, enterprises began to concern their good image which can firstly impress the public. In modern society, the adoption of green marketing is a major means by which enterprises establish their good image. The implementation of green marketing is the social responsibility enterprises should undertake and the basis to set up a green image, as well the best choice to gain the consumers’ trust and support from the goverment. Through green marketing, enterprises combine their interests with social and consumers’ interests and establish a “responsible” image to consumers and society. In particular, since enterprises obtain the evironmental lable, their status in consumers’ mind will be naturally improved and lead to consumers’ loylty to their products. Moreover, the value of the brand will be enhanced and the non-material capital of the enterprise will be increased. 3.3 Green marketing is beneficial to employees’ health The new labor law was published and implemented since 1st January 2008, which requirs that employees’ benefis such as salary, welware, working conditions and insurance must be constantly improved to protect their legal rights. Green marketing claims that the protection of environment should be strenthened at every stage of production cycle inclusive of manufacture, procduciton technique and marketing. In this way, a clean and safe working environgment can be formed inside the enterpriese, which is beneficial to emloyees health. Conversly, people’s quality of living will decline and a variety of diseases will emerge. According to the survey done by some experts, the factors causing the aging of human body, 80% are environmental elements. Song Jian is the chairman of Federation of China’s Envitongment Protection and an academician of the Chinese Academy of Sciences and Chinese Academy of Engineering, and he holds that 75% of the chronic diseases are related to polluted wastes produced during the process of production and living. [6] 3.4 Green marketing meets the green needs of consumers With the development of economy and continuous improvemnt of people’s material and spiritual life, people has realized that there is merely one earth and the notion of green consumption is gradually being accepted. What’s more, people’s pursuit of clothing, food, shelter and ways to travel is tending natural and harmonious. When people’s sense of environmental protection is gradually aroused, being faced with consumers’ “green” sense, enterprises must transform thier conception and conduct green marketing focusing on the products’ efffects upon environment. Furthermore, enterprises need to step up the implementation of green marketing and win the attention of consumers so that they can be accepted by the society. In terms of the “green sense” of consumers, if enterprises can transform their thoughts and conduct green marketing, then they will win over more consumers and create more channels to make profits. In some developed countries, more than 50% of consumers prefer to buy green products. The resutls of the surey conducted by China’s Institute of Social Survey reveal that green products gradually gained the preference of Chinese consumers. In such large cities as Beijing and Shanghai, 54% of the consumers expressed their intention to by green products. With the increase of income of each family, the demand for green products will also rise. This shows that the market of green products is a constantly increasing one with abundant marketing potential. [7] 4 Construction of Enterprise’s Green Marketing System It would be of great significance for countries, enterprises and consumers to step up both the process of Chinese enterprises’ adaption to the green demand of the public and their implementation of green marketing. Therfore, the construction of enterprse’s green marketing system calls for common efforts and effective measures which made by states, enterprises and other groups. [8] 10 4.1 Development of correct green marketing strategies on the basis of strategic management The marketing department needs to develop a long-term, comprehensive and systematic action plan in terms of consumers’ and society’s demand for environgmental protection and the fact of green consumption. Meanwhile, the enterprises’ current conditions and its overall strategic plan also must be considered. Enterprises should identify their target consumers and divide the whole market specifically. Subsequently, they can select the most valuable and specifcic market on which they concentrate their efforts and service. Finally, marketing mix made up of four elements (4Ps) must be properly designed. In order to find out the best marketing mix, enterprises ought to conduct marketing analysis, planning, implementation and control. [8] The future trends of competition will be transformed from a four-dimension model consisting of qualilty, cost, time and service to a five-dimension model including quality, time, service, cost and environment. The environmental proctection issues, which are regarded as a burden, would be an important aspect of enperprises’ competitive strenths. 4.2 Implementation of green organization design and management in organizational structure Green marketing strategies are spreading throughout the whole process of the enterprise operating activities, concerning all the aspects within the enterprise and demanding close cooperation and communications among different departments as well as all staff’s participation and support. Outside the enterprise, the relationship between the enterprise and customers is more than a relationship of provision and consumption; hence, both sides need communication and cooperation as well as sustainable development. At the same time, the two sides should highlight environmental performance. To strengthen green management, the enterprise should appoint an environmental director in the board to be responsilbe for the stuff related to evironmental protection, and he or she needs to conduct environgmental analysis regularly, mornitor the implementation of environmental marketing strategies and objectives, and provide environmental training for emplyees and management staff. Furthermore, a “green manager” and sustainable group can be positioned with responsibility for management of the enterprise’s environmentally-friendly policies and practice. 4.3 The shaping of green enterprise’s culture as the organizational culture Green enterprise culture is characterized by the worship of nature, environmental protection, preservation of ecological environment, reduced energy consumption, and promotion of sustainable use of resources. Besides, it upholds the creed that it’s an honor to save while it a shame to waste. What’s more, it considers sysmetic thinking as a principle and comprehensively takes the enterprise’s economic benefit, social benefit and environmental benifit into account. The enterprise should emphasize its employees’ green educaion and training so that the employees consciously infuse the sense of environmental protection into their bahaviour. All the staff ought to change their conceptions, improve their sense of environmental protection and establish the notion of sustainable development and “green”means quality. Meanwhile, they must apply the conception of “green” to the erterprise’s operation and managent to form a green enterprise culture which will become an enterprise’s internal competitive strenths. Thus, a “green” atmosphere need to be created within the enterprise which will enable the staff to hold the green sense firmly and pracrtise green enterprise culture in the daily operating activites so that the vital human resourses can be provided for the enterprise to impelment green marketing strategies. 4.4 Conducting green research for the purpose of research and development The enterprise should cultivate technological innovaiton mechanism and atmophere favourable for the sustainable development. Also, a technological center focusing on sustainable development can be established inside the enterprise to enhance its self-innovation capacity. In addition, the research and development department of the enterprise should be encouraged to cooperate with the organizaitons outside the enterprise and set up cooperate organization for research and development. Furhermore, while conduting research and development, a concurrent programme should be implemented. The research and development group should be constituted by personnels from such departments as marketing and finance; at the mean time, it should also include the participation of outsiders such as consumers and providers. [9] Moreover, it is hoped that pollution-free products, craftsmanship and technology can be developed so that the enterprise can contol its pollution at the birthplace, which embodies the “prevention first” principle. Pollution issues will not exist if pollution is eliminated. 4.5 Establishment of green marketing mix as marketing strategy 4.5.1 Founding information system for green marketing Information means market. Green information contains the generic marketing informaiton, but it is strikingly environmentally-friendly. It can be obtained through internal record, marketing intelligence system and marketing research. Then the obtained information should be assessed to identify its value and sent to the appropriate decision makers. 4.5.2 Establishing strategies for green products and service While deciding the strategies for products and service, the enterprise ought to take into consideration the type, quality, design, brand package, warranty, rejection and service of green products. Based on the information obtained through market research, the enterprise should carry out effective division and accurate positioning of the consumption market, then select its product mix with unique features. When the package or decoration of products is concerned, the effects on environgment should be considered, and the principle which should be followed is “the package should be recyclable and discomposed”, and it ought to be a green package. 11 Furthermore, according to the related environmental standards and regulations, the enterprise should be approved by the State’s designated accredited institutions and granted with a green label and certificate. As for the design of the product, a green design is popularized so that more ecologically harmless and cyclable green products can be developed. During the period of pre-sales, sales and after-sales, the enterprise should not only meet the green demand of consumers and provide green service, but comply with the principle of saving resources and reducing pollution. The waste products should be recycled, dismounted and reused. Only in this way can the enterprise win the recognition of consumers. 4.5.3. Setting proper price to green products When setting the price to green products, the enterprise should consider the green cost spent on evironmental protection and the green benefits the green products bring to consumers.[10] Green products can serve the consumers’ psychological needs for innovation and worship of nature, whereby consumers are willing to accept the green products that are of a relatively higher price but of benefits for evironment and people’s health. To better attract consumers, the erterprise can consider offering some favourable terms cencerning credit terms and payment period to customers. 4.5.4 Selection of green distribution channels When selecting green distribution channels, the enterprise should reflect the levels and channel numbers of distribution, the composition of distrubution channels and logistic management. The enterprise can directly arrange its own marketing channels to sell its green products through which the reputation of a green brand of the enterpise’s green products can be established. In addition, green products can be sold through retailers, but the selection of retailers depends on whether they concern about environmental protection; whether they have the same green sense as the enterprise and whether they have a good green image. Finally, the transportation of green products should be pollution-free; the distribution certers and links ought to be properly arranged and the special promotion for green produsts should be conducted. Author in brief: Ma Jukui (1965- ), male, Associate Professor with a MA, the Dean of Department of Ideological and Political Theories Teaching and Research of Yulin University. Research Direction: Teaching and Research of the Basic Tenets of Marxism. Wang Lijuan (1985- ), female, with a BA of Shaanxi University of Technology, employee of Shannxi Huahua Shijia Fashion Co.Ltd. Research Direction: Marketing References [1]. [2]. [3]. [4]. [5]. [6]. [7]. [8]. [9]. [10]. Dwayne A B, John L C.Quality,Satisfaction and Behavioral Intentions [J]. Annals of Tourism Research, 2007, 85 LIU Min. Green Consumption and Green Marketing [M]. Guangming Daily Press, 2007(3) HU Yiyuan. Research on Eco-industry Construction in the Area of Hanshui River County. Ecological Economy [J] 2007.01. HU Yiyuan. The Ecology Mode Setup of Western Economic Development Social Scientist [J], 2005.04 HU Yiyuan. The Theoretical Basis for Developing Green Productive Forces, Realizing Rapid Economic Development in the Western Areas. Journal of Guangzhou University (Social Science Edition). 2003.5 HU Yiyuan. The System Taking Ecological Industry as Pillar of Western Economy is Structured. Environmental Protection [J], 2005,12 HU Yiyuan. Opting for Pillar Industries in Western-regions and Analyzing their Predominance. Research on Development [J], 2004.4. SONG Jian. Air, Water and Food Pollutions --- One of the Killers in Society [N]. Health News. 2007(11) WANG Xiaofei, ZHU Zhongping. The Present Situation and Corresponding Strategies of the Implementation of Green Marketing in China’s Enterprises. China Market, 2006.12. WEI Mingxia, SI Linsheng. Performance Management of Green Marketing [M]. Economic Management Press, 2005, 15—17. 12