Posted in Marketing & Strategy Articles, Total Reads: 4125
, Published on 26 January 2014
Environmental issues have always affected the way we think, purchase and live in this 21st century. But today environmental issues has gained never so felt importance in business as well as in public life throughout the world that it could not be ignored. Thus, in order to understand the trend of Green marketing lets first define it. According to the American Marketing Association, green marketing is the marketing of products that are presumed to be environmentally safe. In today’s world we are facing resource crunch, ozone layer depletion, deforestation, global warming, etc. Now green marketing includes product modification to have a sustainable environment, changing the production process to have better quality output with fewer wastes, using recyclable non-toxic contents to create product which are recyclable, reusable and biodegradable, packing changes of the product to have better environment conformance and advertising strategy to sum it all and create the impression in the mind of the customer that it’s really green!
Green marketing is going to become essence in coming future because today because of increasing customer awareness, the stakeholders in the company have to oblige to that demand. Not only going green helps build the brand but also helps in building loyalty along with reducing costs, improving the value chain by driving and promoting innovation among organizations and thus reducing risks to survive the downturns.
Image Courtesy: freedigitalphotos.net, foto76
The challenges the company are facing in adopting are serious. Some of the reasons could be attributed to lack of standardization in the market or unavailability of regulatory bodies to certify “greenness” because of which most of the “Green” campaigns turn out to be hoax leading to loss of trust from consumers. Again since this initiatives output cannot be measured in short term and thus patience and support from the top management needs to be available. Also, making the people aware of the green products should be a priority otherwise like in Whirlpool case the initiative will turn out to be a failure where people don’t realize the benefit of the CFC refrigerators.
The consumers today are willing to pay an extra price for the product that has the perception of additional product value. This is where environmental benefits will the deciding factor between products of equal value or quality. Also this helps in creating the brand image and strengthening the loyalty. For example Delhi adopting CNG as a fuel has helped it creating a distinctive image in the world and the customers have positively reacted to this. Again, SBI by adopting green IT project where it uses eco and power friendly equipment’s in its 1000’s of ATM’s have not only saved money but also gained carbon credits and earned a distinctive image in India for others to emulate.
In order to achieve the green magic mantra companies have already stated to understand the basic customer’s need and how it can be done in the green way. This is how the CFL was invented which solves the need of bright light with less wattage. Even due to political pressures, the peer competitive pressure the industry has to go the green way. In order to tap new potential markets and opportunities the green way is imperative. This is going to increase the Sustainability, Safety and Social Acceptability of the firms.
Going green is not a norm but it will be imperative for the individuals and companies to grow. For that the firms need to change their business model, value proposition to clearly communicate the Green Communication strategy as what General Electric and State Bank of India have done. Even the farmers have adapted to organic farming thereby eliminating the need to be dependent on pesticides and insecticides.
The emerging trends can already be seen towards building greener building, smarter mobile technology consuming less power, switching to cloud computing, crowd funding and open-sourcing to reach out to people for the causes, use of analytics and personalization, using social media to bond and using it as the Source: http://www.entrepreneur.com/blog/223377 platform to share and raise voice for cause and thus ultimately making the planet smarter and greener.
Thus, in order to be sustainable industry will have to adapt and remodel itself according to the “green” principle in future.
This article has been authored by Ravi Ranjan from IMT-Ghaziabad