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Green Marketing

Ecological marketing products   presumed safe for the environment. It integrates a wide range of activities, including product modification, changes in the production process, [sustainable packaging], as well as the modification of advertising. Yet defining  green marketing  is not a simple task where many meanings intersect and contradict each other; an example of this will be the existence of variable social, environmental and commercial definitions attached to this term. Other similar terms used are  environmental marketing  and  green marketing.

Green, environmental and eco-marketing are new marketing approaches that not only refocus, adjust or improve existing marketing thinking and practice, but seek to challenge these approaches and to offer a substantially different perspective. In more detail, the green, the environment and eco-marketing are part of the group of approaches that seek to remedy the lack of correspondence between marketing as it is currently practiced and the ecological and social realities of the environment. wider marketing environment.Belz F., Peattie K. (2009): Marketing Sustainability: A Global Perspective. John Wiley & Sons

The legal implications   of  marketing claims  calling for caution or exaggerated claims may result in regulatory or civil challenges. In the United States, the [Federal Trade Commission] provides guidance on environmental marketing claims. This Commission should undertake a comprehensive review of these guidelines and the legal standards it contains in 2011.

Greenhouse Gas Reduction Market 

The emerging market of greenhouse gas reduction can potentially catalyze projects with significant environmental, economic and quality of life benefits at the local level. The  Kyoto Protocol’s Clean Development Mechanism (  CDM  )   , for example, allows trade between industrialized and developing countries, providing a framework that can lead to capital flows to environmentally beneficial development activities. Although the United States does not participate in the Kyoto Protocol, several US programs allow for similar transactions on a voluntary and regulatory basis. [8]

Although international trade in  cuts  gas  to  effect  greenhouse  [11] is  promising as a source of new financing for  sustainable development , this market can be largely inaccessible to many smaller scale projects, remote communities and localities less developed. To facilitate participation and expand benefits, several obstacles must be overcome, including: lack of market awareness among stakeholders and potential participants; specialized and somewhat complicated rules of participation; and the need for simplified participation mechanisms for small projects, without which transaction costs may outweigh the financial benefits of participation. If barriers are adequately addressed,  trade in greenhouse gases can play an important role in supporting activities that benefit   people’s lives and the environment. [8]

Popularity and effectiveness

Debate in progress

The popularity of this marketing approach and its effectiveness are hotly debated. Proponents say there are more and more environmental calls – the  Energy Star label   , for example, is now on 11,000  models of  different companies  [12]  in 38 product categories, from  washing machines  and  bulbs  to  scratches  –  skies  and houses. However, despite the growth in the number of green products, green marketing is declining as the main selling point for products.  Shel Horowitz , a green trader for more than 30 years and lead author   of   Goes Green’s  guerrilla marketing [13] says that to be effective in the market, green businesses must market their products to three different audiences: “deep green”, “green” lazy “and” not green “, and each must be approached differently. Each will have different trigger points that will make them move, and for the non-commercial audience, marketing usually requires emphasizing the superiority of the product rather than the care of the planet. [14]  On the other hand,  the  green gauge  Roper  shows that a high percentage of consumers (42%) [15]believes that environmental products do not work as well as conventional products. It’s an unfortunate heritage of the 1970s when shower heads spat and natural detergents left dirty clothes. Given the choice, all but the greenest customers will be able to purchase synthetic detergents over the famous ”  Happy Planet  ” at a  reasonable price  , including  Earth Day  . The new reports show, however, a growing trend towards green products. [16]

Confusion

A challenge that green marketers – old and new – are likely to face as  green products  and that messages are becoming more and more common: confusion in the marketplace. ”  Consumers do not really understand much about these issues, and there is a lot of confusion out there  ,”  says  Jacquelyn Ottman  (founder of J. Ottman Consulting and author of “Green Marketing: Opportunity for  Innovation.”)  [ 16] Marketers sometimes take advantage of this confusion, and voluntarily make false or exaggerated “green” affirmations. Critics refer to this practice as ”  green wash  “.

Greenwashing

Companies are increasingly recognizing the benefits of green marketing, although there is often a thin line between doing it for their own benefit and for social responsibility reasons. The term “greenwashing” refers to all industries that adopt externally outright acts with an underlying purpose to increase profits. The main goal of greenwashing is to give consumers the feeling that the organization is taking the necessary steps to manage its ecological footprint responsibly. In reality, the company can do very little that is good for the environment  [17]The term greenwashing was used for the first time by environmentalist Jay Westerveld to oppose the hotelier’s practice of placing notices in hotel rooms asking their guests to reuse towels to “save the day”. ‘environment”. Westerveld noted that there was little else to suggest that hoteliers were interested in reducing their environmental impacts, and that their interest in washing fewer towels seemed to be motivated by the desire to reduce costs rather only by the environment. Since then, greenwashing has become a central part of marketing communications and sustainability debates, with established greenwashing “rewards” and numerous campaigns, laws and advice developed to reduce or reduce them. [18]

Benefit companies 

In January 2012, Patagonia became the first brand to register as a benefit company. [19]

A charity is an alternative to its standard counterpart because it operates under the legal premise of 1) creating a positive social and environmental impact in its materials, 2) defending  corporate social responsibility  in terms of consideration of its workers, its community and the environment as well as challenge its current limitations in these areas, and 3) report on its activity as a society as well as its achievements in the social and environmental fields using a non-partisan, third-party source.

Statistics 

According to market researcher  Mintel  , about 12% of the US population can be identified as true greens, consumers who regularly look for and buy so-called green products. Another 68%  [16]  [20]  can be classified as Green Vegetables, consumers who sometimes buy green. “What  marketing managers are always looking  for   is the point of contact with consumers, and that’s just one big point of contact that’s not being served,” says  David Lockwood, director of research at  Mintel  . “All the business leaders we talk to are extremely confident that being able to make a strong case for the environment will result in a bottom line.” [16]

Adoptability

In 1989, 67% of Americans said they were willing to pay 5 to 10% more for ecologically compatible products. [21]  In 1991, environmentally conscious individuals were willing to pay between 15% and 20% more for green products. [22]  Today, more than a third of Americans say they would pay a little more for green products  [23]

A major challenge for marketers is to identify consumers who are willing to pay more for environmentally friendly products. It is obvious that a better knowledge of the profile of this segment of consumers would be extremely useful.

Everett Rogers, a communications specialist and author of “Diffusion of Innovations,” says the following five factors can help determine whether a new idea will be adopted, including the idealism of the transition to “green”:

  1. Relative advantage  : is the degree to which the new behavior is expected to have more beneficial results than the current practice.
  2. Observability  : It is easy to see the results of the new behavior.
  3. Trialability  : is the ease with which the new behavior can be tested by an individual without fully engaging.
  4. Compatibility  : is the degree to which the new behavior is consistent with current practice.
  5. Complexity  : is the new behavior difficult to implement? [24]

LOHAS

LOHAS is an  acronym for Lifestyles of Health and Sustainability, and describes an integrated and rapidly growing market for goods and services that appeals to consumers whose sense of environmental and social responsibility influences their purchasing decisions. The Natural Marketing Institute (abbreviated as NMI) estimates that the US consumer market for LOHAS products and services is worth $ 209 billion, sold in all consumer segments. [25]

The five LOHAS segments as defined by NMI include:

  • LOHAS  : active environmental stewards dedicated to personal and global health. It is the biggest buyers of green and socially responsible products and the early adopters who strongly influence others.
  • Naturalites  : Motivated primarily by personal health considerations. They tend to buy more LOHAS consumables than durable items.
  • Drifters  : Although their intentions may be good, DRIFTERS follow trends when they are easy and affordable. They are currently very engaged in green purchasing behavior.
  • Conventional  : Pragmatists who adopt the LOHAS behavior when they believe they can make a difference, but who are mainly focused on being very careful with their resources and doing the “right” thing, as this will allow them to to save money.
  • Unconscious  : indifferent or indifferent to the environment and societal issues, mainly because they have neither the time nor the means – these consumers are largely focused on their survival.

The green marketing mix

A  mix of  green marketing model  contains four “P”:

  • Product  : A producer must provide environmentally friendly products that not only must not contaminate the environment but must protect it and even eliminate existing environmental damage.
  • Price  : Prices for these products may be slightly higher than conventional alternatives. But target groups such as LOHAS are willing to pay extra for green products.
  • Location  : A distribution logistics is of crucial importance; The focus is on eco-friendly packaging. Marketing of local and seasonal products, such as vegetables from regional farms, is easier to market than imported products.
  • Promotion  : A communication with the market must focus on the environmental aspects, for example that the company has a CP certificate or is ISO 14000 certified.  This can be published to improve the image of a company. In addition, the fact that a company spends environmental protection expenditures should be announced. Thirdly, sponsorship of the natural environment is also very important. Last but not least, green products will likely require special promotions.

The   additional  social marketing “P’s”  used in this process are:

  • Public  : Effective social marketing knows its audience and can attract many groups of people. “Public” refers to the external and internal groups involved in the program. External audiences include the target audience, secondary audiences, policy makers and custodians, while internal audiences are those who are involved in one way or another with the approval or implementation of the program.
  • Partnership  : Most issues of social change, including “green” initiatives, are too complex for an individual or group. The association with other groups and initiatives to team up increases the chances of effectiveness.
  • Policy  : Social marketing programs may well motivate individual behavior change, but it is difficult to maintain unless the environment in which they evolve changes in the long term. Often, a policy change is needed, and media advocacy programs can be an effective complement to a social marketing program.
  • Handbag  : How much will this strategic effort cost? Who finances the effort? [26]

The level of greening – strategic, quasi-strategic or tactical – dictates what activities should be undertaken by a company. Strategic greening in one area may or may not work in others. A company could make substantial changes to production processes but not exploit them by positioning itself as an environmental leader. Thus, while strategic greening is not necessarily strategically integrated into all marketing activities, it is nevertheless strategic in the area of ​​products. [27]

Ecolabels

The belief of an individual that an environmental claim lacks honesty can have a negative effect on the attitude towards a brand. If, on the other hand, the consumer gives credibility to the claim, the individual will behave more respectfully towards the environment. The problem in extending credibility to a brand is that consumers interested in green products are generally skeptical about commercial advertising. This skepticism is due to various factors such as lack of language, the lack of scientific knowledge necessary to interpret the meaning of advertising and, in particular, the falsities and exaggeration of certain advertising techniques. To solve this problem, independent organizations may choose to guarantee messages on the environmental benefits of brands with environmental tagging systems sponsored by independent organizations. [28]

Life cycle assessment

In the late 1980s, new instruments such as life-cycle analysis (LCA) were invented, which made it possible to incorporate environmental considerations into marketing decisions. [18]

The life cycle assessment model seeks to identify the main types of environmental impact throughout the life cycle of a product. LCA was developed according to the ISO 14040 standard. The main objective of the LCA is to define the energy and environmental profile of finished products. The rationale for using LCA arises from the need for accurate process accounting and to highlight potential improvements that could be used to increase environmental, energy and economic efficiency and overall process efficiency. . In addition, the goal was to quantify the environmental benefits of using recycled raw materials. [30]

Example for ACV 

LCA is used for example in the building sector. Buildings now account for 40% of global energy consumption. The resulting carbon emissions are considerably higher than those of the transport sector. New buildings using more energy than necessary are being built every day, and millions of inefficient buildings will remain at least until 2050. It is therefore necessary to start reducing energy consumption in new and existing buildings so to reduce carbon emissions. footprint. The growing interest, the space and the attention in the sector of the Mineral, vegetable or animal materials such as perlite, vermiculite, rockwool, glass wool, cork, vegetable fibers (cotton, flax, hemp, coconut), wood fibers, cellulose and sheep [30]

Case

Phillips “Marathon” compact fluorescent light bulb

The first shot from Philips Lighting to market a  compact  self-contained  fluorescent lamp (CFL) was Earth Light, at $ 15 apiece compared to 75 cents for incandescent light bulbs. [31]  The product was having trouble getting out of its dark green niche. The company relaunched the product under the name “Marathon”, highlighting its new “very long life” positioning and promising to save $ 26 in energy costs over its five-year lifespan. [31]  Finally, with the US EPA’s Energy Star label to add credibility and new sensitivity to rising utility costs and power shortages, sales climbed 12 percent in the second quarter. an otherwise flat market. [32]

Car sharing services

Car sharing services address the long-term needs of consumers by enabling them to  achieve  better  fuel economy   and reduce traffic jams and nightmares, to complement the environmental benefits of a more open space and reduce  greenhouse gas . They can be considered as a “time-sharing system” for cars. Consumers who drive less than 7,500 miles a year and who do not need a car to work can save thousands of dollars each year by joining one of the many services, including  Zipcar (east coast), I-GO Car (Chicago),  [33]  and Hour Car (Twin Cities). [34]

Electronics sector

The  sector of the  electronic  big  public  allows use green marketing to attract new customers. An example of this is  HP’s promise to   reduce its global energy consumption by 20% by 2010.  [35]  To achieve this reduction below 2005 levels,  Hewlett-Packard Company has announced plans to provide energy efficient products and services. energy efficient operating practices at its facilities around the world.

Products and services 

Now, companies are offering greener alternatives to their customers. Recycled products, for example, are one of the most popular alternatives that can benefit the environment. These benefits include sustainable forestry, clean air, energy efficiency, water conservation and a healthy office. One example is the Shoplet e-commerce and office supply  company  that offers a web-based tool that allows you to replace similar items in your shopping cart with greener products.

Introduction of CNG in Delhi

New Delhi  , capital of India, was polluted at a very fast pace until the  Supreme Court of India  imposed a change to alternative fuels. In 2002, a directive was issued to fully adopt  CNG  in all public transport systems to reduce pollution. [36]

References

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