An Introduction To Green Marketing Michael Jay Polonsky

<mgmjp@cc.newcastle.edu.au> Department of Management, University of Newcastle,

Newcastle NSW 2308, Australia. TEL: 61(49)216-911. Fax:61(49)216-911.
INTRODUCTION Although environmental issues influence all human activities, few academic
disciplines have integrated green issues into their literature. This is especially true of marketing. As
society becomes more concerned with the natural environment, businesses have begun to modify
their behavior in an attempt to address society's"new" concerns. Some businesses have been quick
to accept concepts like environmental management systems and waste minimization, and have
integrated environmental issues into all organizational activities. Some evidence of this is the
development of journals such as "Business Strategy and the Environment" and "Greener
Management International," which are specifically designed to disseminate research relating to
business' environmental behavior. One business area where environmental issues have received a
great deal of discussion in the popular and professional press is marketing. Terms like "Green
Marketing" and "Environmental Marketing" appear frequently in the popular press. Many governments
around the world have become so concerned about green marketing activities that they have
attempted to regulate them (Polonsky 1994a). For example, in the United States (US) the Federal
Trade Commission and the National Association of Attorneys-General havedeveloped extensive
documents examining green marketing issues [FTC 1991, NAAG 1990]. One of the biggest problems
with the green marketing area is that there has been little attempt to academically examine
environmental or green marketing. While some literature does exist [Carlson, Grove and Kangun
1993, Davis 1992, Davis 1993], it comes from divergent perspectives. This paper will attempt 1) to
introduce the terms and concepts of green marketing; 2) briefly discuss why going green is important;
3) examine some of the reason that organizations are adopting a green marketing philosophy; and 4)
mention some of the problems with green marketing.
WHAT IS GREEN MARKETING Unfortunately, a majority of people believe that green marketing
refers solely to the promotion or advertising of products with environmental characteristics. Terms like
Phosphate Free, Recyclable, Refillable, Ozone Friendly, and Environmentally Friendly are some of
the things consumers most often associate with green marketing. While these terms are green
marketing claims, 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 "ecotourist" facilities, i.e., facilities that "specialize" in
experiencing nature or operating in a fashion that minimizes their environmental impact [May 1991,
Ingram and Durst 1989, Troumbis 1991]. Thus green marketing incorporates a broad range of
activities, including product modification, changes to the production process, packaging changes, as
well as modifying advertising. Yet defining green marketing is not a simple task. Indeed the
terminology used in this area has varied, it includes: Green Marketing, Environmental Marketing and
Ecological Marketing. While green marketing came into prominence in the late 1980s and early
1990s, it was first discussed much earlier. The American Marketing Association (AMA) held
the first workshop on "Ecological Marketing" in 1975. The proceedings of this workshop resulted in
one of the first books on green marketing entitled "Ecological Marketing" [Henion and Kinnear 1976a].
Since that time a number of other books on the topic have been published [Charter 1992, Coddington
1993, Ottman 1993].

The AMA workshop attempted to bring together academics, practitioners, and public policy makers to
examine marketing's impact on the natural environment. At this workshop ecological marketing was
defined as: the study of the positive and negative aspects of marketing activities on pollution, energy
depletion and nonenergy resource depletion. [Henion and Kinnear 1976b, 1] This early definition has
three key components, 1) it is a subset of the overall marketing activity; 2) it examines both the
positive and negative activities; and 3) a narrow range of environmental issues are examined. While
this definition is a useful starting point, to be comprehensive green marketing needs to be more
broadly defined. Before providing an alternative definition it should be noted that no one definition or
terminology has been universally accepted. This lack of consistency is a large part of the problem, for
how can an issue be evaluated if all researchers have a different perception of what they are
researching. The following definition is much broader than those of other researchers and it
encompasses all major components of other definitions. My definition is: Green or Environmental
Marketing consists of all activities designed to generate and facilitate any exchanges intended to
satisfy human needs or wants, such that the satisfaction of these needs and wants occurs, with
minimal detrimental impact on the natural environment. [Polonsky 1994b, 2] This definition
incorporates much of the traditional components of the marketing definition, that is "All activities
designed to generate and facilitate any exchanges intended to satisfy human needs or wants"[Stanton
and Futrell 1987]. Therefore it ensures that the interests of the organization and all its consumers are
protected, as voluntary exchange will not take place unless both the buyer and seller mutually benefit.
The above definition also includes the protection of the natural environment, by attempting to
minimize the detrimental impact this exchange has on the environment. This second point is
important, for human consumption by its very nature is destructive to the natural environment. (To be
accurate products making green claims should state they are "less environmentally harmful" rather
than "Environmentally Friendly.") Thus green marketing should look at minimizing environmental
harm, not necessarily eliminating it

WHY IS GREEN MARKETING IMPORTANT

The question of why green marketing has increased in importance is quite simple and relies on the
basic definition of Economics: Economics is the study of how people use their limited resources to try
to satisfy unlimited wants. [McTaggart, Findlay and Parkin 1992, 24] Thus mankind 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, for example, see
Gore 1993.) While the question of whether these wants are reasonable or achievable is important,
this issue will not be addressed in this paper. 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

WHY ARE FIRMS USING GREEN MARKETING?

When looking through the literature there are several suggested reasons for firms increased use of
Green Marketing. Five possible reasons cited are: 1.Organizations perceive environmental marketing
to be an opportunity that can be used to achieve its objectives [Keller 1987, Shearer 1990];
2.Organizations believe they have a moral obligation to be more socially responsible [Davis 1992,
Freeman and Liedtka 1991, Keller 1987, McIntosh 1990, Shearer 1990]; 3.Governmental bodies are
forcing firms to become more responsible [NAAG 1990]; 4.Competitors' environmental activities
pressure firms to change their environmental marketing activities [NAAG 1990]; and 5.Cost factors
associated with waste disposal, or reductions in material usage forces firms to modify their behavior
[Azzone and Manzini 1994]. .

OPPORTUNITIES
It appears that all types of consumers, both individual and industrial are becoming more concerned
andaware about the natural environment. In a 1992 study of 16 countries, more than 50% of
consumers in each country, other than Singapore, indicated they were concerned about the
environment [Ottman 1993].A 1994 study in Australia found that 84.6% of the sample believed all
individuals had a responsibility to care for the environment. A further 80% of this sample indicated that
they had modified their behavior, including their purchasing behavior, due to environmental reasons
[EPA-NSW 1994]. As demands change, many firms see these changes as an opportunity to be
exploited. Given these figures, it can be assumed that firms marketing goods with environmental
characteristics will have a competitive advantage over firms marketing non-environmentally
responsible alternatives. There are numerous example of firms who have strived to become more
environmentally responsible, in an attempt to better satisfy their consumer needs. •McDonald's
replaced its clam shell packaging with waxed paper because of increased consumer concern relating
to polystyrene production and Ozone depletion [Gifford 1991, Hume 1991]. •Tuna manufacturers
modified their fishing techniques because of the increased concern over driftnet fishing, and the
resulting death of dolphins [Advertising Age 1991]. •Xerox introduced a "high quality" recycled
photocopier paper in an attempt to satisfy the demands of firms for less environmentally harmful
products.This is not to imply that all firms who have undertaken environmental marketing activities
actually improve their behavior. In some cases firms have misled consumers in an attempt to gain
market share. In other cases firms have jumped on the green bandwagon without considering the
accuracy of their behavior, their claims, or the effectiveness of their products. This lack of
consideration of the true "greenness" of activities may result in firms making false or misleading green
marketing claims.
SOCIAL RESPONSIBILITY
Many firms are beginning to realize that they are members of the wider community and therefore
must behave in an environmentally responsible fashion. This translates into firms that believe they
must achieve environmental objectives as well as profit related objectives. This results in
environmental issues being integrated into the firm's corporate culture. Firms in this situation can take
two perspectives; 1) they can use the fact that they are environmentally responsible as a marketing
tool; or 2) they can become responsible without promoting this fact. There are examples of firms
adopting both strategies. Organizations like the Body Shop heavily promote the fact that they are
environmentally responsible. While this behavior is a competitive advantage, the firm was established
specifically to offer consumers environmentally responsible alternatives to conventional cosmetic
products. This philosophy is directly tied to the overall corporate culture, rather than simply being a
competitive tool. An example of a firm that does not promote its environmental initiatives is Coca-
Cola. They have invested large sums of money in various recycling activities, as well as having
modified their packaging to minimize its environmental impact. While being concerned about the
environment, Coke has not used this concern as a marketing tool. Thus many consumers may not
realize that Coke is a very environmentally committed organization. Another firm who is very
environmentally responsible but does not promote this fact, at least outside the organization, is Walt
Disney World (WDW). WDW has an extensive waste management program and infrastructure in
place, yet these facilities are not highlighted in their general tourist promotional activities (Murphy
1985).
GOVERNMENTAL PRESSURE
As with all marketing related activities, governments want to "protect" consumers and society; this
protection has significant green marketing implications. Governmental regulations relating to
environmental marketing are designed to protect consumers in several ways, 1) reduce production of
harmful goods or by-products; 2) modify consumer and industry's use and/or consumption of harmful
goods; or 3) ensure thatall types of consumers have the ability to evaluate the environmental
composition of goods. Governments establish regulations designed to control the amount of
hazardous wastes produced by firms. Many by-products of production are controlled through the
issuing of various environmental licenses, thus modifying organizational behavior. In some cases
governments try to "induce" final consumers to becomemore responsible. For example, some
governments have introduced voluntary curb-side recycling programs, making it easier for consumers
to act responsibly. In other cases governments tax individuals who act in an irresponsible fashion. For
example in Australia there is a higher gas tax associated with leaded petrol. One of the more recent
publicized environmental regulations undertaken by governments has been the establishment of
guidelines designed to "control" green marketing claims [Polonsky 1994a]. These regulations include
the Australian Trade Practices Commission's (TPC) "Environmental Claims in Marketing - A Guideline
[TPC 1992], the US Federal Trade Commission's (FTC) "Guides for the Use of Environmental
Marketing Claims" [FTC 1991 and 1992] and the regulations suggested by the National Association of
Attorneys-General [NAAG 1990]. These regulations are all designed to ensure consumers have the
appropriate information which would enable them to evaluate firm's environmental claims. In addition
to these guidelines many States in the US have introduced legislation to control various
environmental marketing activities [Kangun and Polonsky 1994]. In most cases these State laws are
more stringent than the FTC's guidelines. To date the majority of prosecutions of firms using
misleading green marketing has occurred in State rather than Federal courts. Thus governmental
attempts to protect consumers from false or misleading claims should theoretically provide consumers
with the ability to make more informed decisions. In Australia where regulations have affected many
companies, one unintended casualty was an advertisement for the Federal Government's
environmental labeling program "Environmental Choice." This ad was deemed to breach the TPC's
guidelines, as it implied that only products with the logo were environmentally responsible
COMPETITIVE PRESSURE
Another major force in the environmental marketing area has been firms' desire to maintain their
competitive position. In many cases firms observe competitors promoting their environmental
behaviors and attempt to emulate this behavior. In some instances this competitive pressure has
caused an entire industry to modify and thus reduce its detrimental environmental behavior. For
example, it could be argued thatXerox's "Revive 100% Recycled paper" was introduced a few years
ago in an attempt to address the introduction of recycled photocopier paper by other manufacturers.
In another example when one tuna manufacture stopped using driftnets the others followed suit
[Advertising Age 1991].
COST OR PROFIT ISSUES
Firms may also use green marketing in an attempt to address cost or profit related issues. Disposing
of environmentally harmful by-products, such as polychlorinated biphenyl (PCB) contaminated oil are
becoming increasingly costly and in some cases difficult. Therefore firms that can reduce harmful
wastes may incur substantial cost savings. When attempting to minimize waste, firms are often forced
to re-examine their production processes. In these cases they often develop more effective production
processes that not only reduce waste, but reduce the need for some raw materials. This serves as a
double cost savings, since both waste and raw material are reduced. In other cases firms attempt to
find end-of-pipe solutions, instead of minimizing waste. In these situations firms try to find markets or
uses for their waste materials, where one firm's waste becomes another firm's input of production.
One Australian example of this is a firm who produces acidic waste water as a by-product of
production and sells it to a firm involved in neutralizing base materials. The last way in which cost or
profit issues may affect firms' environmental marketing activities is that new industries may be
developed. This can occur in two ways: 1) a firm develops a technology for reducing waste and sells it
to other firms; or 2) a waste recycling or removal industry develops [Yurman 1994]. For example, firms
that clean the oil in large industrial condensers increase the life of those condensers, removing the
need for replacing the oil, as well as the need to dispose of the waste oil. This reducesoperating costs
for those owning the condensers and generates revenue for those firms cleaning the oil.
SOME PROBLEMS WITH GOING GREEN
No matter why a firm uses green marketing there are a number of potential problems that they must
overcome. One of the main problems is that firms using green marketing must ensure that their
activities are not misleading to consumers or industry, and do not breach any of the regulations or
laws dealing with environmental marketing. For example marketers in the US must ensure their green
marketing claims can meet the following set of criteria, in order to comply with the FTC's guidelines.
Green marketing claims must; •Clearly state environmental benefits; •Explain environmental
characteristics; •Explain how benefits are achieved; •Ensure comparative differences are justified;
•Ensure negative factors are taken into consideration; and •Only use meaningful terms and pictures.
Another problem firms face is that those who modify their products due to increased consumer
concern must contend with the fact that consumers' perceptions are sometimes not correct. Take for
example theMcDonald's case where it has replaced its clam shells with plastic coated paper. There is
ongoing scientific debate which is more environmentally friendly. Some scientific evidence suggests
that when taking a cradle-to-grave approach, polystyrene is less environmentally harmful. If this is the
case McDonald's bowed to consumer pressure, yet has chosen the more environmentally harmful
option. When firms attempt to become socially responsible, they may face the risk that the
environmentally responsible action of today will be found to be harmful in the future. Take for example
the aerosol industry which has switched from CFCs (chlorofluorocarbons) to HFCs
(hydrofluorocarbons) only to be told HFCs are also a greenhouse gas. Some firms now use DME
(dimethyl ether) as an aerosol propellant, which may also harm the ozone layer [Debets 1989]. Given
the limited scientific knowledge at any point in time, it may be impossible for a firm to be certain they
have made the correct environmental decision. This may explain why some firms, like Coca-Cola and
Walt Disney World, are becoming socially responsible without publicizing the point. They may be
protecting themselves from potential future negative backlash, if it is determined they made the wrong
decision in the past. While governmental regulation is designed to give consumers the opportunity to
make better decisions or to motivate them to be more environmentally responsible, there is difficulty in
establishing policies that will address all environmental issues. For example, guidelines developed to
control environmental marketingaddress only a very narrow set of issues, i.e., the truthfulness of
environmental marketing claims [Schlossberg 1993]. If governments want to modify consumer
behavior they need to establish a differentset of regulations. Thus governmental attempts to protect
the environment may result in a proliferation of regulations and guidelines, with no one central
controlling body. Reacting to competitive pressures can cause all "followers" to make the same
mistake as the "leader." A costly example of this was the Mobil Corporation who followed the
competition and introduced "biodegradable" plastic garbage bags. While technically these bags were
biodegradable, the conditions under which they were disposed did not allow biodegradation to occur.
Mobil was sued by several US states for using misleading advertising claims [Lawrence 1991]. Thus
blindly following the competition can have costly ramifications.
The push to reduce costs or increase profits may not force firms to address the important issue of
environmental degradation. End-of-pipe solutions may not actually reduce the waste but rather shift
itaround. While this may be beneficial, it does not necessarily address the larger environmental
problem, though it may minimize its short term affects. Ultimately most waste produced will enter the
waste stream, therefore to be environmentally responsible organizations should attempt to minimize
their waste, rather than find "appropriate" uses for it.
CONCLUSION
Green marketing covers more than a firm's marketing claims. While firms must bear much of the
responsibility for environmental degradation, ultimately it is consumers who demand goods, and thus
create environmental problems. One example of this is where McDonald's is often blamed for
polluting the environment because much of their packaging finishes up as roadside waste. It must be
remembered that it is the uncaring consumer who chooses to disposes of their waste in an
inappropriate fashion. While firms can have a great impact on the natural environment, the
responsibility should not be theirs alone. In the EPA's 1994 study consumers gave the following
reasons for why they damage the environment. Figure 1 It appears that consumers are not overly
committed to improving their environment and may be looking to lay too much responsibility on
industry and government. Ultimately green marketing requires that consumers want a cleaner
environment and are willing to "pay" for it, possibly through higher priced goods, modified individual
lifestyles, or even governmental intervention. Until this occurs it will be difficult for firms alone to lead
the green marketing revolution.
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Green Marketing: Meaning and Importance
of Green Marketing
Meaning
Here, term ‘green’ is indicative of purity. Green means pure in quality and fair or just

in dealing. For example, green advertising means advertising without adverse impact

on society. Green message means matured and neutral facts, free from exaggeration

or ambiguity. Green marketing is highly debated topic for lay people to highly
professional groups.

Concept of green marketing concerns with protection of ecological environment.

Modern marketing has created a lot of problems. Growth in marketing activities

resulted into rapid economic growth, mass production with the use of advanced

technology, comfortable and luxurious life, style, severe competition, use of

unhealthy marketing tactics and techniques to attract customers, exaggeration in

advertising, liberalization and globalization, creation of multinational companies,

retailing and distribution by giant MNCs, etc., created many problems.

Departmental stores, specialty stores, and shopping malls are flooded with useful as

well as useless products. These all factors have threatened welfare of people and
ecological balance as well. Particularly, giant factories have become the source of

different pollutions. Production, consumption and disposal of many products affect

environment adversely.

Excessive pollution has provoked the Nature and the Nature starts behaving in

unnatural ways (in form of global warming v/s global cooling, heavy rains v/s

draught, and other natural calamities like frequent earthquakes and tsunami,

cyclones, epidemics, and so forth). Economic growth via production and

consumption threatens peaceful life of human being on the earth. Green marketing is

an attempt to protect consumer welfare and environment (the nature) through

production, consumption, and disposal of eco-friendly products.
Basically, green marketing concerns with three aspects:
1. Promotion of production and consummation of pure/quality products,

2. Fair and just dealing with customers and society, and

ADVERTISEMENTS:

3. Protection of ecological environment.

Global ecological imbalance and global warming (also global cooling)

have called upon environmentalists, scientists, social organisations, and
alert common men to initiate the concrete efforts to stop further
deterioration of ecological environment. The World Bank, the SAARC,
the UNO, the WHO, and other globally influential organisations have
started their efforts to promote and practice green marketing. The world
environment summit at Copenhagen (2009) is the mega event that
shows the seriousness of ecological imbalance.

To increase awareness, 5th June is declared as the World Environment

Day. Green marketing emphases on protection of long-term welfare of
consumers and society by production and use of pure, useful, and high
quality products without any adverse effect on the environment. Mass
media have started their campaign for protecting the earth from further
deterioration. Worldwide efforts are made to conserve natural water
resources.
Thus, green marketing is a marketing philosophy that promotes
production and selling of pure (eco-friendly) products with protection of
ecological balance. Green marketing involves multiple activities. Green
Marketing encourages production of pure products by pure technology,
conservation of energy, preservation of environment, minimum use of
natural resources, and more use of natural foods instead of processed
foods. Efforts of people, social organisations, firms, and governments in
this regard can be said as green marketing efforts.

ADVERTISEMENTS:

Green marketing raises the voice against production, consumption,

and/or disposal of such products that anyway harm consumers, the
society, and the environment. It is necessary that businessmen and users
should refrain from harmful products.

Impacts or Importance of Green Marketing:

Green marketing affects positively the health of people and the ecological
environment. People are aware of pure products and pure methods of
producing, using, and disposing the products. It encourages integrated
efforts for purity in production and consumption as well.

We can witness following impacts of green marketing:

ADVERTISEMENTS:

1. Now, people are insisting pure products – edible items, fruits, and
vegetables based on organic farming. The number of people seeking
vegetarian food is on rise.

2. Reducing use of plastics and plastic-based products.

3. Increased consumption of herbal products instead of processed

products.

4. Recommending use of leaves instead of plastic pieces; jute and cloth

bags instead of plastic carrying bags.

ADVERTISEMENTS:
5. Increasing use of bio-fertilizers (made of agro-wastes and wormy-
composed) instead of chemical fertilizers (i.e. organic farming), and
minimum use of pesticides.

6. Worldwide efforts to recycle wastes of consumer and industrial

products.

7. Increased use of herbal medicines, natural therapy, and Yoga.

8. Strict provisions to protect forests, flora and fauna, protection of the

rivers, lakes and seas from pollutions.

9. Global restrictions on production and use of harmful weapons, atomic

tests, etc. Various organisations of several countries have formulated
provisions for protecting ecological balance.

10. More emphasis on social and environmental accountability of

producers.

11. Imposing strict norms for pollution control. Consideration of

pollution control efforts and eco-technology in awarding IS), ISO 9000,
or ISO 14000 certificates and other awards.

12. Declaration of 5th June as the World Environment Day.

13. Strict legal provisions for restricting duplication or adulteration.

14. Establishing several national and international agencies to monitor

efforts and activities of business firms in relation pollution control and
production of eco-friendly products.