Download Contemporary Logistics On the Construction of Enterprise’s Green Marketing System

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