By
Green Marketing GuideA Research Perspective
By
Selvarasu a. MutharasuProfessor
Annamalai University
Green Marketing Guide— Research perspectives
— Educating Green Marketing
Consulting Green Marketing— Consulting Green Marketing
Green Marketing [GM]
— A strategic marketing technique — To gain maximum business performance using— Green products— Green brands— Green brands— Green consumers— Greening supply chain— Demand-supply integration
Stakeholder of GM— green ranking— green brand survey— green confidence index— green score
green brand reputation score— green brand reputation score— green marketing educational programme and— green certification professional
India : Top 10 Green brands1. Amul2. Dabur3. Infosys4. Taj hotels5. Britannia5. Britannia6. Suzlon7. Hindustan Unilever8. Wipro9. Maruti10. Godrej Consumer Products
Take away from GM— Voluntary and mandatory labels has become country specific— A syllabus for green marketing education— A multi-pronged research proposal — Newness in green marketing practices
Green hosting — Green hosting — Green politics — Energy stars
PERSONAL HEALTH$117 billionNatural, organic products, Nutritional productsIntegrative health careDietary supplements
GREEN BUILDING$100 billionHome certificationEnergy Star appliancesSustainable flooringRenewable energy systems
ECO TOURISM$42 billionEco-tourism travelEco-adventure travel
Green Market Size in US for LOHAS
Dietary supplementsMind body spirit products
Renewable energy systemsWood alternatives
ALTERNATIVE TRANSPORTATION$20 billionHybrid vehiclesBiodiesel fuelCar sharing programs
NATURAL LIFESTYLES$10 billionIndoor & outdoor furnishingsOrganic cleaning suppliesCompact fluorescent lightsSocial change philanthropyApparel
ALTERNATIVE ENERGY$1 billionRenewable energy
creditsGreen pricing
Raw is Green
Raw Bhagalpur silk, linen and cotton-linen blends; the golden yarns were made of silk wastes that he further hand-knitted for a spectacular effect.
All that glitters green is not greenGreenwashing Greenness
Black is Green
— Black is internal— Green is External— Green Marketing is Planetary Marketing
— Geology has been renamed as Earth Science— Green Marketing can also be named as ‘Earth Marketing’ or
‘Planetary Marketing’
Research Perspective
Effect of Octagonal Green Marketing Mix on LOHAS and LOVOS Consumer Segment Model
GM - Research— Awareness is more among consumers— Mandate of business is known to people— Is part of Sustainable marketing practices— Consumer decides to reward green products
Green residential development— Green residential development— Knowingly Greenwashing [exploitation] starts— Green Certification [Minimum 70% Green]— Green Scores & Green Brand Scores
Who is a Green Consumer?— A target customer of greenness — whose consumption patterns focused on the preservation of
resources; — Willingness to limit — the amount of resources consumed;— the amount of resources consumed;— materials that endanger the environment, and — avoid using products that endanger the health of consumers
By Peattie, 2001
Lifestyle and Greenness— Lifestyle of consumer has been oriented to their— Plan— Work— Fashion— Recreation and— Recreation and— price
By [Wen-Lan Wang, 2012]
Green product’s advertising— perceived quality— consumer’s willingness to pay— information seeking and— suspicion
Dimensions reported to understand consumer’s perception towards decisiveness
By [Saurabh Battacharya, 2011].
Green Confidence Index (GCI)— A monthly measure of — Responsibility— Information and — Purchasing — in American marketplace to — in American marketplace to — reveal tracking & flagging of market place perception,— future changing intentions of consumers and — evolving green economy
[Greenbiz.com, visited January 2013].
Green Brands and Green Halos— with poor green practices but strong green halos that colour
peoples’ perception and vice-versa
[Newsweek, visited on January 21, 2013]
Green products call for eco-friendly — where cost of production and price goes up — affordability of consumers — usage of green marketing concept in the travel and tourism
industry — the term is popular as— the term is popular as— ‘zero carbon/— carbon neutral’
[Al Bawaba Ltd., 2011]
GE’s Ecomagination— Multimillion dollar campaign for greenpeace — 17 products with measurable environmental performance
advantages,— Lexan film that replaces conventional paint— Harmony water-conserving washing machines— Harmony water-conserving washing machines— the new fuel-efficient GEnx jet engine and — GE's Evolution locomotive, — a 208-ton, 4,400hp workhorse that burns 3% less fuel and puts
out 40% less pollution than its immediate predecessor[Fisher Daniel, 2005]
Socially responsible marketing• Emphasised distinguishing interest in green
marketing orientation among different stakeholders of business
[Pranee Chitakornkijsil, 2012].
Demand – Supply integration [DSI]— Giving greenness to gain consumer’s perception— supply chain ability — green campaign and green marketing for competitive edge in
business performance
[Jon F. Kirchoff et al., 2011]
Green marketing tools
— Eco-label & Eco-brands— Environmental advertisements— energy conservation— agricultural products— agricultural products—Degradable— non-toxic plastic packaging material— hazardous metal-free electrical and electronic equipment— biodegradable cleaning agents and recycled paper
[Elham Rahbar and Nabsiah Abdul Wahid, 2011]
Eco-brands— Emotional benefits—A feeling of well-being—auto-expression benefits — the socially visible consumption — the socially visible consumption —nature-related benefits are reported
— The eco-image gain green feel toward —eco-image of country—manufacturer and —products.
Eco-brands— papers and plastics from — recycled materials, soy, corn plastic, stone, hemp, or organic
cotton- all of which are sustainable materials drives green marketing efforts realistic.
— In printing the marketing materialsrecycled paper for direct mails and publishing marketing pamphlet, — recycled paper for direct mails and publishing marketing pamphlet, brochure on line in place of print are resounding change in marketing with alternative forms to promote green marketing in action[
[Sebor, Jesica, 2007]
The certification of sustainably— forest and timber wood strategically has been strongly
supported by green consumers and their willingness to pay positively for certified product in Greece
6%6%6%plus6%plus
[Ioannis Papadopoulos et al., 2010].
The depth of greenness— Lean green (product)— Defensive green (product & promotion)— Shade green (product, price & promotion) and— Extreme green (product, price, place & promotion).
[Chun-Shuo Chen, & Long-Yi Lin., 2011]
America’s Federal Trade commission— Reasons for revision of green guide in carbon offset and
renewable energy certificate (REC) — claiming single attribute— lack of proof— vague claims— vague claims— claims irrelevant to product— true claims but distract product’s true problem— claiming certificate by independent authority
[Bergeson Lynn L., 2008]
Compostable Packaging
— Greening of the packaging has been done by reducing from muti-layer to few layers and replacing the rigid polyethylene film by sustainable flexible films like polylactic acid that are degradable, decomposable and renewable are degradable, decomposable and renewable
[Lecki, Molly, 2008] .
Green Monkey A Super Premium Brand
— A niche-in-niche organic baby food and packaging company in New Zealand
— claimed that 100 percent organic is much more reliable than 95 percent organic food.
— The truth of success is — The truth of success is — in the processing of food and — a highly traceable product with advanced thermal processing — gives an official 12-months shelf-life with a pouch system for
superior flavour and freshness as an innovator than a manufacturer [Baker, Glenn, 2010].
8Mix2Segment Green Marketing Model
—bimodal class —octagonal offerings of GM Mix—for sustainable green marketing —for sustainable green marketing
8Mix2Segment Green Marketing Model— Sustainable marketing and sustainable
advertising of octagonal green marketing mix has direct effect on LOHAS and indirect effect on LOVOS consumer segment towards LOVOS consumer segment towards remanufactured, recycle, reuse and household composting both greenness and green washing for green branding.
LOHAS ~ LOVOS— Lifestyles of Health & Sustainability; upscale and well-
educated population segment) — Lifestyle of Voluntary Simplicity— LOHAS 17 %; Naturalites (19%), Drifters (19%),
Conventional (26%) and Unconcerned (19%)Conventional (26%) and Unconcerned (19%)
[NMI’s 2007 LOHAS consumer segmentation model]
The octagonal green marketing mix— The offering in the form of eco-product (protect & liquidate
environmental damages), — Price (little higher)— Place (ecological packaging & regional source), — Promotion (CP certificate & ISO14000) — Promotion (CP certificate & ISO14000) — Plus— Social marketing drivers 4Ps....
The octagonal green marketing mixSocial marketing drivers 4Ps....
Publics (external & internal; policy makers and gatekeepers & approval and implementers), partnership (associating groups)policy (change in directives & media advocacy programs) policy (change in directives & media advocacy programs) Purse strings (cost & funding).
Green marketing offerings - products and services— Organic and locally grown food— Organic and natural personal care products— Hybrid and electric cars as well as city bicycles— Green and sustainable building— Sustainable or ecotourism— Energy efficient electronics/appliances— Energy efficient electronics/appliances— Socially responsible investing— Natural household products (paper goods and cleaning products)— complementary alternative and preventive medicine (Naturopathy, Chinese
medicine, etc.)— Fair trade products— Literature in the mind/body/soul, holistic health, and — New age genres.
[NMI]
Propositions— Green Marketing Mix components has positive direct effect on the LOHAS
consumer segment as a part of both sustainable marketing and sustainable advertising towards remanufactured, recycle, reuse, and household composting products
— Green Marketing Mix components has positive indirect effect on the LOVOS consumer segment as a part of both sustainable marketing and sustainable advertising towards remanufactured, recycle, reuse, and household composting products
Task NameDefinition phase
Kick off meetingEstablish feasibilityFinalization of work plan1st pre-test meeting for green marketing perception measuring scale items1st Interim report and models
Stage 1 (Measuring Tool selection)Listing of consumersListing of measuring tool for GM perceptionListing of measuring tool for Consumer SegmentLOHAS & LOVOSShort listing of measuring tool for Green Marketing [Green Consumer Segment- Green Branding Value]
Stage 2 (Qualitative assessment of Consumers)Listing of Green Products/Brands photograph
Listing of Green Service/Brands photographParticipation and selection of photographs by Consumers – LOHAS, LOVOS &Other segmentsFinal report stage 1
Stage 3 - hosting of survey instrument/ questionnaire on surveymonkey.comMediation and facilitation in administering and filling up of questionnaires by consumers - Area 1, 2,3 & 4Final report stage 2
Stage 4 - Compilation of Data and report writing on stage 2Editing and coding of data - Area 1, 2, 3 & 4Final report stage 3
Stage 5 Final Research Project Management
Task Name Quarter 1 Quarter 2 Quarter 3 Quarter 4
Definition phaseM1
M2 M3 M4 M 5
M 6 M7 M 8 M9
M10 M11 M12
Kick off meeting
Establish feasibility
Finalization of work plan
1st pre-test meeting for green marketing
perception measuring scale items
1st Interim report and models
Stage 1 (Measuring Tool selection)
Listing of consumers
Listing of measuring tool for GM perception
Listing of measuring tool for Consumer Segment
LOHAS & LOVOS
Short listing of measuring tool for Green
Marketing [Green Consumer Segment- Green
Branding Value]Branding Value]
Stage 2 (Qualitative assessment of Consumers)
Listing of Green Products/Brands photograph
Listing of GreenService/Brands photograph
Participation and selection of photographs by
Consumers – LOHAS, LOVOS &Other segments
Final report stage 1
Stage 3 - hosting of survey instrument/
questionnaire on surveymonkey.com
Mediation and facilitation in administering and
filling up of questionnaires by consumers - Area
1, 2,3 & 4
Final report stage 2
Stage 4 - Compilation of Data and report writing on stage 2
Editing and coding of data - Area 1, 2, 3 & 4
Final report stage 3
Stage 5 Final Research Project Management
Stage Colour Code Duration Dependency0 Green 2Months1 Blue 3Months Stage 02 Purple 3Months Stage 13 Red 3Months Stage 24 Yellow 4Months Stage 35 Light Blue 1Month Stage 45 Light Blue 1Month Stage 4
Methodology— An exploratory qualitative study — Three pronged approach in the data collection— Initial stage of research - content analysis for conclusive
evidence -Green identity in the advertising messages in the mediathe media
— The second stage – identifying LOHAS and LOVOS customers using PET & ZMET
— The third stage – Remanufactured, reuse, recycle
LOHAS
Lifestyle
Agree &
Strongly Agree
Disagree,
Strongly Disagree
& NA-NDA
%
& NA-NDA
%
LOHAS 36.8 63.2
Naturalite 34.2 65.8
Drifters 36.8 63.2
Conventional 52.6 47.4
Unconcerned 39.5 60.5
LOVOS - Organic
Lifestyle
Agree &
Strongly Agree
%
Disagree,
Strongly Disagree
& NA-NDA% & NA-NDA
%
Devoted 48.5 51.5
Temperate 54.5 45.5
Dabbler 54.5 45.5
Reluctant 57.6 42.4
Green ProductsGreen
Product/Service Mean
Std.
Deviation
Natural product 1.76 .639
Organic products .93 .775
Nutritional products 1.36 .756
Wood alternatives 1.32 .802
Eco-tourism travel 1.17 .805
Eco-adventure travel .93 .845
Hybrid vehicles 1.15 .744
Biodiesel fuel 1.11 .779
Car sharing programs .93 .828Health care product 1.33 .751
Dietary supplements 1.04 .759
Mind body spirit
products.94 .837
Home certification 1.01 .831
Energy Star appliances 1.04 .813
Sustainable flooring .74 .750
Renewable energy
systems1.10 .858
Car sharing programs .93 .828
Indoor furnishing 1.21 .804
Outdoor furnishings 1.33 .732
Organic cleaning supplies 1.11 .832
Compact fluorescent lights .96 .846
Social change philanthropy 1.19 .781
Apparel 1.18 .828
Renewable energy credits 1.01 .813
Green pricing 1.24 .957
Pre-Test Results -1sustainable marketing
Remanufactured
13.9Reuse
16.7
Recycle
23.6
Household composing
22.3Greenness of products
Yes
41.7%
No
19.4%
No idea
Missing
25.3%41.7% 19.4%15.3%
25.3%
Use of green colour and false message misguide me
37.5 20.8% 18.1% 23.6%
Octagonal Mix I II III IV V VI VII VIII IX XBuy eco-products/green products/organic product
15.3 11.1 15.3 4.2 6.9 5.6 2.8 1.4 8.3 5.6
Don’t mind to pay little extra price
5.6 20.8 11.1 4.2 8.3 1.4 2.8 8.3 5.6 8.3
product sourced from local/regional marketplace
6.9 9.7 18.1 8.3 11.1 2.8 2.8 5.6 4.2 6.9
Bio/decomposable 8.3 6.9 9.7 13.9 6.9 11.1 5.6 5.6 4.2 4.2
Pre-Test Results -2
Bio/decomposable packaged products Eco-label/mark/certification
8.3 6.9 9.7 13.9 6.9 11.1 5.6 5.6 4.2 4.215.3 8.3 6.9 4.2 11.1 5.6 9.7 6.9 4.2 4.2
Government approved seal
12.5 12.5 4.2 6.9 9.7 11.1 2.8 2.8 12.5 1.4
Companies associating environment issues
12.5 6.9 6.9 12.5 6.9 13.9 2.8 4.2 9.7
Don’t buy products/brands reported in the media negatively
8.3 6.9 5.6 9.7 6.9 11.1 5.6 12.5 1.4 8.3
Cost conscious/financing 9.7 15.3 12.5 2.8 4.2 1.4 11.1 - 5.6 13.9
Number of consumer durables in the household use * Educational level of Chief Earning person in the family Crosstabulation
Educational level of Chief Earning person in the family
Total5th to 9th
std Diploma SSLC/HSC UG/PG Professional
Number of consumer durables in the household use
1 Count 1 2 4 2 0 9
% of Total 1.4% 2.8% 5.6% 2.8% .0% 12.5%
2 Count 0 1 0 0 0 1
% of Total .0% 1.4% .0% .0% .0% 1.4%
3 Count 0 0 3 1 0 4
% of Total .0% .0% 4.2% 1.4% .0% 5.6%
4 Count 1 2 1 3 1 8
% of Total 1.4% 2.8% 1.4% 4.2% 1.4% 11.1%
5 Count 0 1 7 2 1 11
% of Total .0% 1.4% 9.7% 2.8% 1.4% 15.3%
6 Count 1 0 0 7 1 9
% of Total 1.4% .0% .0% 9.7% 1.4% 12.5%
7 Count 0 1 1 3 1 6
% of Total .0% 1.4% 1.4% 4.2% 1.4% 8.3%
8 Count 0 2 4 7 1 14
% of Total .0% 2.8% 5.6% 9.7% 1.4% 19.4%
9 Count 0 1 2 2 2 7
% of Total .0% 1.4% 2.8% 2.8% 2.8% 9.7%
10 Count 0 1 0 1 1 3
% of Total .0% 1.4% .0% 1.4% 1.4% 4.2%
Total Count 3 11 22 28 8 72
% of Total 4.2% 15.3% 30.6% 38.9% 11.1% 100.0%
Educating Green Marketing— Course content— Books— Syllabus— Assignments
Green Marketing Texts— “Esty and Winston’s Green to Gold
— Ottman’s Green Marketing.
— Mintu and Lozada (1993) trace the greening of marketing education back to the 1970s
— Bridges and Wilhelm (2008) added an invaluable reference for the — Bridges and Wilhelm (2008) added an invaluable reference for the course.
— Other prime sources for lecturing on specific topics included Fuller (1999) and edited volumes by Charter and Polonsky (1999) and Galea (2004).”
Course Content Green Marketing Management— Environmental Marketing — Ecological Marketing— Green Marketing— Sustainable Marketing
Sustainable Advertising — Sustainable Advertising — Responsible Consumer— Greening Tools and Techniques— Research Methods for Green Marketing review— Green Marketing Myopia
Syllabus – Green Marketing— Unit – I Introduction to Green Marketing— Unit – II Sustainable Marketing— Unit – III Green Product, Green Brands and Green
Pricing— Unit – IV Greening of Merchandise and — Unit – IV Greening of Merchandise and
Environmental message— Unit –V Greenwashing and Green consumers
Assignments— Short assignment comparing pricing of two brands or
versions (one “regular” one “green”) of the same product category (of the student’s choosing) - Green alternative
— Longer projects included the semester-long (which included — Longer projects included the semester-long (which included clothing, cosmetics and sports stadiums, among others), and an analysis of an advertising campaign for a “green” product, service, or idea.
Consulting Green Marketing— The household composting by natural mill— Conserving water in cleaning clothing— Consumer education in resource utilization — The vegetarian and non-vegetarian centred green marketing
Chemicals preservatives— Chemicals preservatives— The packaging materials in its proportion of multiple layers
Consulting Green Marketing— The degree of greenness to 100 percent is again a criterion in
the food items especially to make consumers hassle free. — Green branding and green advertising — Bureau of Indian Standards [BIS] extends its support to
standardisation and labelling standardisation and labelling
Consulting Green Marketing— Green brand building with greenness identity and image. — Green rank survey— Green brand ranking— Green score for companies and green certification
Consulting Green Marketing— Biodegradable & Compostable— Fair Trade— Renewable Energy— Organic
Wood and Paper Products — Wood and Paper Products — Energy Efficiency — The reasonable cost for the green seal
Conclusion— Green marketing is a form of niche marketing
— In fact a niche-in-niche marketing
For greenness and organic food market— For greenness and organic food market
Conclusion— It is also considered by almost all corporate either in the
form of sense and simple orientation of greening or in the form of greenwashing
Conclusion— The emerging market segments in the value of health,
sustainability, simplicity etc. are an attraction for value and business performance.
— Sustainability marketing and sustainability advertising raise responsible consumers on one side and users of responsible consumers on one side and users of remanufactured, reuse and recycled products on the other side.
Conclusion— The uses of household composting natural mills have gained
importance and its acceptance in the market is noticed. — The need for consumer research in the lines of 8GM-
Mix2Segment Green Marketing— Need for consumer education and — Need for consumer education and — Consulting is the take away from green marketing initiatives
Green Marketing - LyricLOHAS,LOVOS Consumershit Octagonal Green Marketing Mixprotect/liquidate environmental damagebest-packaging for little high price organic with marking(promoting) green seals approvals associating group prevent media advocacyits the purse stringGreen marketing is ecological gain
Green seal, green label voluntary green label mandatory gain green confidence green index green score green reputation
Natural Nutritional dietary mind body spiritEnergy star Wood alternatives (Green building)Ecotourism travel, Ecotourism adventure, hybrid
energycar sharing, Natural lifestyle for organic, renewable Green marketing is ecological gain
Green marketing is environment gainGreenwashing drain Green marketingGreen marketing gain greenness Remanufacture gain greenness Reuse gain greenness Recycle gain greenness Green brand is everything Green branding is everywhere
car sharing, Natural lifestyle for organic, renewable energy
Green pricing for responsible consumergreen education, green certificationGreen marketing is sustainable developmentGreen brands is everything Green branding is everywhere LOHAS,LOVOS Consumershit Octagonal Green Marketing Mixprotect/liquidate environmental damage
Selvarasu a. MutharasuANNAMALAI UNIVERSITY
THANKING YOUTHANKING YOU