Gr~en Marketing

Green marketing refers to the practice of developing and adverti sing products based on their real
or perceived environmen tal sustainability.
Green marketing is defined as "Green or Environmental Marketing consists of all activities
designed to generate and facilitate any exchan ges intended to satisfy human needs or wants, such
that the satisfac.tion of these needs and wants occurs, with minimal detrimental impact on the
natural environment ."
Green marketing. is the marketing of environmentally friendly products and services. It is
becoming more popul ar as more people become concerned with environmental issues and decide
that they want to spend their money in a way that is kinder to the planet. Green marketing can
involve a number of different things, such as creating an eco-friendly product, using eco-friendly
packaging, adopting sustainable business practices, or focusing marketing efforts on messages
that conununicate a product' s green benefits. This type of marketing can be more expensive, but
it can also be profitable due to the increasing demand. For example, products made locally in
North America tend to be more expensive than those made overseas using cheap labor, but they
have a much smaller carbon footprint because they don't have to fly across the globe to get here.
For some consumers and business owners, the environmental benefit outweighs the price
difference.
Consun1ers who prefer to purchase green products even though they might be more expensive
fall into the ' LOHAS' category. LOHAS stands for Lifestyles of Health and
Sustainability. These consumers are active supporters of environmental health and are the
heaviest purchasers of green and socially responsible products. They also have the power to
influence other consumers.
Green Marketing Methods/strategies .
Beyond making an environmentally friendly product, business owners can do other things as part
of their green marketing efforts. The following can all be part of a green marketing strategy:
• Using eco-friendly paper and inks for print marketing materials
• Skipping the printed materials altogether and option for electronic marketing
• Having a recycling program and responsible waste disposal practices
• Using eco-friendly product packaging
• Using efficient packing and shipping methods
• Using eco-friendly power sources
• Taking steps to offset environmental impact
The 4 P's of Green Marketing
Every company has its own favorite marketing mix. Some have 4 P's and some have 7 P's
marketing mix. The 4 P's of gre.en marketing are that of a conventional marketing but the
challenge before is to use 4 P's in an innovative manner.

1. Price: Although many consumers state willingness to pay slightly more for green products, the
price needs to remain close to alternatives to attract less green consumers. There must be a
careful balance between: profits, productivity, environment and people. To justify extra charges
green products should offer increased product value through: performance, thnction, design.
2. Product: Green products need proof of reduction of resource consumption, pollution. Eco-
friendly products can state there green as a differentiating factor. Product labeling trends include:
en~rgy saving, organic, green chemicals, local sourcing. Companies can label products green
simply by using eco-friendly packaging.

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 3. Place: Companies can reduce their carbon footprint by: managing logi stics, such as transport
costs, and raw materials sourcing. Companies should carefully consider where and when to sell
green products. Many consumers will travel out of their way to buy green, but most want ease of
access and will buy non-green when convenient.
4. ,Promotion: Matching marketing mix to customer green needs by: focusing on relationship
bet\;yeen product/ service and enviromnent, promoting green lifestyle benefits. Corporate image
is important and CSR demonstrates conunitment to green. Social media plays a central role in
promoting the activities of green companies. There is even scope for consumer interaction and
tastemaker associations from this platfonn.
Three Keys to Successful Green Marketing
Show potential customers that you follow green business practices and you could reap more
green on your bottom line. Green Marketing isn' t just a catchphrase; it's a marketing strategy
that can help you get more customers and make more money. But only if you do it right.

For green marketing to be effective, you have to do three things; be genuine, educate your
customers, and give them the opportunity to participate.
l. Being Genuine: Being Genuine means that a) that-you are actually doing what you claim to be
doing in your green marketing campaign and b) that the .rest of your business policies are
consistent with whatever you are doing that's environmentally friendly.
2. Educating your Customers: Educating your Customers isn't just a matter of letting people
know you're doing whatever you're doing to protect the environment, but also a matter of letting
them know why it matters Otherwise, for a significant portion of your target market, it's a case
of "So what?" And yQur green marketing campaign goes nowhere.
3.-Giving your customer an oppo11Unity to participate: Giving your customer an opportunity to
participate means personalizing the benefits of your environmentally friendly actions, normally
through letting the customer take part in positive environmental action.

Challenges of Green Marketing

• Need for Standardization: It is found that only 5% of the marketing messages from "Green"
campaigns are entirely true and there is a lack of standardization to authenticate these claims.
There is no standardization to authenticate these claims. There is no standardization -currently in
place to certify a product as organic. Unless some regulatory bodies are involved in providing the
certifications there will not be any verifiable means. A standard quality control board needs to be
in place for such labeling and licensing.
• New Concept: Indian literate and urban consumer is getting more aware about the merits of
Gr~n products. But it is still a new concept for the masses. The consumer needs to be educated
and made aware of the environmental threats. The new green movements need to reach the
masses and that will take a lot of time and effort. By India's ayurvedic heritage, Indian
consumers do appreciate the importance of using natural and herbal beauty products. Indian
consumer is exposed to healthy living lifestyles such as yoga and natural food consumption. In
those aspects the consumer is already aware and will be inclined to accept the green products .
• · Patience and Perseverance: The investors and corporate need to view the environment as a
major long-term investment opportunity, the marketers need to look at the long-term benefits
from this new green movement. It will require a lot of patience and no immediate results. Since it
is a new concept and idea, it will have its own acceptance period.
• Avoid_ing Green Myopia: The first rule of green marketing
th e pnma ry reason is focusing on custom er benefits i.e.
why consumers buy certain produ cti, in the first place. Do
this right, and
motiv ate consu mers to switch brand s or even pay a premium
for the greene r alternative. It is not
going to help if a produ ct is develo ped which is absolutely
green in variou s aspects but does not
pass the custom er satisfa ction criteria. This will lead to green
myop ia. Al so if the green product5
are priced very high then again it will lose its market accept
ability.
Stake holde rs
The stakeholders or environmental pressures perceived were
banks , suppliers, distributors.
scient ific institutions, consu mer organizations, insurance compa
nies, competitors, labor unions ,
voluntary agreem ents, press/ media, etc. that influence firms'
willingness to undertake green
marke ting initiatives.
What Is Corporate Social Responsibility (CSR) ?
Corpo rate social responsibility (CSR) is a self-regulating busine
ss model that helps a compa ny
be socially accou ntable -to itself, its stakeholders, and the public
. By practicing corporate social
responsibility, also called corporate citizenship, companies
can be consc ious of the kind of
impact they are having on all aspects of society, including econo
mic, social, and environmental.
To engage in CSR means that, in the ordinary course of busine
ss, a compa ny is operat ing in
ways that enhance society and the environment, instead of contri
buting negati vely to them.
• Corporate social responsibility is a business model in which
compa nies make a conce rted
effort to operate in ways that enhan ce rather than degrade societ
y and the environment.
• CSR helps both society and the brand image of companies.
• Corporate responsibility progra ms are a great way to raise
moral e in the workplace. 1
• Some examp les of compa nies that strive to be leaders in
CSR include Starbu cks and Ben
and Jerry's.
Upderstanding Corporate Social Responsibility (CSR)
a
Corporate social responsibility is broad conce pt that can
take many forms depen ding on the
company and industry. Throu gh CSR programs, philanthropy
, and volun teer efforts, businesses
can benefit society while boosti ng their brands.
As important as CSR is for the community, it is equall y valuab
le for a compa ny. CSR activities
can help forge a strong er bond betwe en employees and corpor
ations, boost moral e, and help both
employees and emplo yers feel more connected with the world
aroun d them.
For a compa ny to be socially responsible, it first needs
to be accou ntable to itself and its
shareholders. Often, compa nies that adopt CSR progra ms have
grown their busine ss to the point
where they can give back to society. Thus, CSR is typically
a strategy that's imple mente d by
large corporations. After all, the more visible and succes
sful a corpo ration is, the more
responsibility it has to set standards of ethical behav ior for its
peers, compe tition, and industry.

Small-and-mid-sized businesses also create social respon

sibility programs, althou gh their
initiatives are not often as well-publicized as larger corporations
.
Exam ple of Corporate Social Responsibility
Starbucks has long been known .for its keen sense of
corporate social responsibility and
comm itmen t to sustainability and comm unity welfare. Accor
ding to the compa ny, Starbu cks has
achieved many of its CSR milest ones since it opened its doors.
Accor ding to its 2020 Globa l
Social Impac t Report, these milest ones include reaching
100% of ethically source d coffee,
creating a global netwo rk of farmers and provid ing them 100
million trees by 2025, pionee ring
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green building throughout its stores, contributin g millio

ns of hours of com munity servi ce, and
creating a groun dbrea king colleg e program for its crnplo
yces. 3
Starbucks' goals for 202 1 and beyond include hiring
5,000 veterans a.nd l 0,000 refugees,
reducing the envir onme ntal impac t of its cups, ond engog
ing its emplo yees in environme ntal
leadership. 4
The 2020 report also mentioned how Starbucks plann
ed to help the world navi gate the
coronavirus pande mic. The comp any's response to
the pandemi c focuses on three essential
elements: prioritizing the health of its customers
and employees, supporting health and
government officials in their attempts to mitigate the effect
s of the pandemic, and showing up for
coinmunities through responsible and positive actions. 5
Today . there are many socially responsible companies
whose brands are known for their CS R
programs, such as Ben & Jen-y's ice cream. 2
Special Considerations .
In 2010, the International Organization for Standardiza
tion (ISO) released ISO 26000, a set of
voluntary standards mean t to help companies implement
corporate social responsibility. Unlike
other ISO standards, ISO 26000 provides guidance rather
than requirements because the nature
of CSR is more qualitative than quantitative, and its stand
ards cannot be certified. 6
ISO 26000 clarifies what social responsibility is and helps
organizations translate CSR principles
into practical actions. The stand ard is aimed at all types
of organizations, regardless of their
activity, size, or location. And, because many key
stakeholders from around the world
contributed to devel oping ISO 26000, this standard repres
ents an international consensus. 6
What Is Corporate Socia l Responsibility (CSR)?
The term corporate social responsibility (CSR) refers
to practices and policies undertaken by
corporations that are inten ded to have a positive influe
nce on the world. The key idea behind
CSR is for corporations to pursu e other pro-social objec
tives, in addition to maxim izing profits.
Examples of comm on CSR objectives include
minimizing environmental externalities ,
promoting volun teeris m amon g comp any employees, and
donat ing to charity.
Why Should a Comp any Imple ment CSR?
Many companies view CSR as an integral part of their
brand image, believing that customers
will be more likely to do busin ess with brands that they
perceive to be more ethical. In this sense,
CSR activities can be an impo rtant comp onent of corpo
rate publi c relations. At the same time,
some company founders are also motivated to engage in
CSR due to their personal convictions.
What Is the Impa ct of CSR?
·
The move ment towar d CSR has had an impact in
several domains. For example, many
companies have taken steps to impro ve the environme
ntal sustainability of their operations,
throu gh measures such as installing renewable energy
sources or purch asing carbo n offsets. In
managing supply chain s, efforts have also been taken
to eliminate reliance on unethical labor
practices, such as child labor and slavery.

Although CSR progr ams have generally been most comm

on amon g large corporations, small
businesses also partic ipate in CSR throu gh smaller-sca
le programs such as donating to local
charities and spons oring local events.