Green marketing -4 E s new concept INTRODUCTION

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1 Green marketing -4 E s new concept INTRODUCTION The term green marketing simply denotes all the activities intended to generate as well as facilitate any exchange in order to satisfy human needs such that satisfying these needs happen with the most minimal input on the environment. Many people believe that green marketing refers solely to the promotion or advertising of products with environmental characteristics. Generally terms like Phosphate Free, Recyclable, Refillable, Ozone, Friendly, and Environmentally Friendly are some of the things consumers most often associate with green marketing. In general green marketing is a much broader concept, one that can be applied to consumer goods, industrial goods and even services. For example, around the world there are resorts that are beginning to promote themselves as "ecotourism" facilities, i.e., facilities that specialize in experiencing nature or operating in a fashion that minimizes their environmental impact.thus green marketing incorporates a broad range of activities, including product modification, changes to the production process, packaging changes, as well as modifying advertising.according to American Marketing Association(AMA) green marketing is the marketing of products that are presumed to be environmentally safe. Companies all across the globe have started differentiating their products and services by using go-green concern and have started utilizing ecological marketing approach as a mere competitive edge. Marketing is a set of activities by which the demand for the goods, services and ideas is managed to facilitate exchange (Markin 1982). Although many factors affect an organization s marketing strategy, all marketing decision-making can be classified into four strategy elements, sometimes referred to as the marketing mix or the four P s: Product, price, place, and promotion. As each library product or potential product is analyzed and developed for its target customer, it must be viewed with the fourp s in mind. Businesses need to start thinking hard about their customers and what they really want and what problems cause them to search for product and services or go looking for new suppliers, which are really new opportunities. Objectives of Green Marketing To create a Passionate Environment To safeguard the society from the world of Unhygienic To bring up the exploitation in the market 1

2 Evolution of Marketing Mix The term Marketing might be coined in the dawn of 20th century but the idea was prevalent since thousands of years. Similarly customers are also not a recent phenomenon; they would have been active since the first transaction was made. In the past century the realm of marketing had undergone constant evolution as a discipline. In the initial days marketing was a push concept where there was a constant tendency on the parts of the firms to push their products/services to the customers. In 1953 with Neil Borden coining the term Marketing Mix (4ps of marketing that is product, price, people & promotion) marketing took a leap as a discipline. In 60 s Theodore Levitt came up with the theory of Marketing Myopia that for the first time attempted to consider seriously the customer factor in marketing. In the coming years the significance of customers kept on increasing in formulation of marketing strategy by individual firms.4ps of marketing got transformed to the 4Cs (Consumer, Cost, Convenience, Communication).In the 21st century with computers and internets penetrating to individual households coupled with a plethora of popular websites, Social networking sites, E-portals, Online communication etc. The realm of marketing is undergoing a new paradigm shift. Now the customer is not only the central focus of the marketing strategy but is also the most active player of the branding exercise conducted by individual firms. Then Cs turned into 4Vs (Validity, Value, Venue & Vogue) due to increase of Economy level of customer. The new age customer needs every thing perfect so the marketing mix will change in many forms in the coming years. Table 1.1 4Ps Product > 4Cs Consumer > 4Vs Validity > 4Es Environment 4Ps 4Cs 4Vs 4Es Product Consumer Validity Energy Price Cost Value Economic Place Convenience Venue Environment Promotion Communication Vogue Emerging Trends 2

3 Importance of Green Marketing Man has limited resources on the earth, with which she/he must attempt to provide for the worlds' unlimited wants. There is extensive debate as to whether the earth is a resource at man's disposal. In market societies where there is "freedom of choice", it has generally been accepted that individuals and organizations have the right to attempt to have their wants satisfied. As firms face limited natural resources, they must develop new or alternative ways of satisfying these unlimited wants. Ultimately green marketing looks at how marketing activities utilize these limited resources, while satisfying consumers wants, both of individuals and industry, as well as achieving the selling organization's objectives. Green Marketing reasons are as follows: 1.Organizations perceives environmental marketing to be an opportunity that can be used to achieve its objectives. 2. Organizations believe they have a moral obligation to be more socially responsible. Governmental bodies are forcing firms to become more responsible. 3. Competitors' environmental activities pressure firms to change their environmental marketing activities. 4. Cost factors associated with waste disposal, or reductions in material usage forces firms to modify their behavior. Green Marketing Mix 4E s Green Marketing helps to keep the environment Hygienic by using Eco-Friendly products. In recent scenario many companies came forward to promote the Green by making their logo in Green color. This 4E s are very necessary to protect us from various factors like Global Warming, acid rain etc. When companies come up with new innovations like eco friendly products, they can access new markets, enhance their market shares, and increase profits. fig1.1 Energy (Exploitationuse) Economic (Earnings ) Marketing mix 4E s Emerging Trends (Enthusiastic) 3 Environment (Eco- friendly)

4 4Ps Product > 4Cs Consumer > 4Vs Validity Under the 4Ps a product is designed, developed, manufactured and distributed to maximise products sales and revenues. The 4Cs approach is to undertake research to understand the desires and problems faced by people in the market before a product is even conceptualised. Where as the 4Vs approach not only takes the 4Cs into account but broadens the horizon further and asks who else these products and services affect and whether they are right for the world such as environmental or social responsibility issues. Take China for example, it knows the world wants many products which it can supply, however there have been countless cases where the product worked, however materials were used during the manufacturing process which were poisonous and harmful to others. 4Ps Price > 4Cs Cost > 4Vs Value Prices was determined in the 4Ps by the lowest cost possible to manufacture, service, distribute and sell plus any profit that was desirable, this was seen from the supply side of the equation only, However, in the 4Cs we go one step further and consider the true cost of bringing a product or service to a customer which not only involves this price of the item, but the actual costs of acquiring that product or service. This may include travel, currency exchange fees, changes necessary to incorporate this new product or service into their environment. Finally the 4Vs takes into account peoples value of what that purchase means. For example people are prepared to pay more for organic produce because they understand the benefits of not having fruit and vegetables chemically treated. Others pay more for natural materials used in the make up of products that alleviate skin rashes. Many find gluten free products and absolute necessity and will pay extra to have such products made available to them. Today many are purchasing greener items such as low carbon vehicles which may cost more than their counterparts. With an ageing population value is also becoming increasingly more important. 4Ps Place > 4Cs Convenience > 4Vs Venue 4

5 Many of us in westernised society have experienced the sweeping change that supermarkets and shopping malls have brought into our lives. Once it was important to have a shop local to your place of residence with is what the 4Ps promoted. Now, due to increased demand for choice and convenience people are prepared to travel to these multi purpose shopping destinations providing all kinds of convenience to customers under the 4Cs. That s no longer enough, customer want it when and where they want it and if that means shopping or banking from your home or on the move then that s what they will do. The 4Vs have seen mobile phone applications bringing the shopping venue right to the customers doorstep, where ever they are. 4Ps Promotion > 4Cs Communication > 4Vs Vogue Marketing was typically a one way street with suppliers and manufactures transmitting their messages at customers (outbound marketing) under the 4Ps through channels of mass media. In recent times though customers have wanted to return the communication volley and reply back to these businesses about what they like and don t like using the telephone, web and customer complaints departments. However, marketing has to be more than just a two way communication link it also has to be relevant to the moment, with what s happening or what s trending just like fashion and that s what the 4Vs is all about fig 1.2 Consumer Buying Influences Consumer characteristics- Demographic 5 Variables (Age, Education, Gender)

6 Green Marketing Mix Energy Economic Environment Emerging Trends Buying Decision of End user Impact of other influencer (friends, family, culture) 4 Es : 1. ENVIRONMENT: Companies interact with two types of environment: the microenvironment and the macroenvironment. The microenvironment comprises the company s suppliers, customers, marketing intermediaries and competitors.the macroenvironment is made up of wider forces that affect demand for acompany s goods. These forces include demographics, economics, nature,technology, politics and culture. The microenvironment can be separated into the internal environment and the external environment. The internal environment consists of the firm s own management structure, the organisation s strategies and objectives, and the departments within the company. The external environment comprises suppliers, marketing intermediaries, customers, competitors and publics. The demographic environment itself is affected by changes in the mix of age groups in the population. If the population becomes older, this will lead to rising demand for products and services consumed by older people and a similar fall in demand for products consumed by younger people. The development of ethnic markets can also be relevant. Technological developments offer marketers both opportunities and threats. Although firms can offer customers a wider array of advanced products,changes in technology also mean that there may be more than one technical solution to a customer s needs. People s opinions and tastes are shaped by the society in which they live. It should be noted that 6

7 societies are not made up of homogeneous populations. They contain sub-cultures, which are beliefs and values shared by smaller groups of people.so,the environment is a major factor which has to be considered in marketing. Companies promoting Green Marketing in their logos 7