INTRODUCTION TO GREEN WHY STUDY GREEN MARKETING?

 Green marketing has positive influences on

MARKETING multiple participants in the economy. The
environment, developing economies,
MARKETING ENVIRONMENT consumers, corporate strategy, the product,
production processes, and supply chain
MICROENVIRONMENT benefit from green marketing. Consider first
Controllable the environmental benefits from green
 Co-organization marketing
 Management
 Resources  Opportunities and Competitive Advantages
 Marketing Mix  Corporate Social Responsibility
 Government Pressure
Partially  Competitive Pressure
 Suppliers  Cost or Profit Issues
 Customers  Environmental Benefits
 Dealers  Developing Economies
 Competitors  Consumer Benefits
 Community (Social Groups)  Strategic Benefits
 Product Benefits
Uncontrollable  Production Process Benefits
 Demographic  Supply-chain Benefits
 Economic
 Ecological
 Technological
 Political
 Sociological

GREEN MARKETING
 as the development and marketing of
products designed to minimize negative
effects on the physical environment. In
contrast to the retailing perspective, the
social orientation recognizes the pre- and
post-consumption costs to the STRATEGIC GREEN PLANNING
environment.
 We therefore define green marketing as the GREEN MARKETING PLANNING
study of all efforts to consume, produce,  the process of creating and maintaining a
distribute, promote, package, and reclaim fit between the environment and objectives
products in a manner that is sensitive or and resources of the firm.
responsive to ecological concerns.  marketing plan - provides an analysis of
the current marketing situation,
GREEN MARKETING MANAGEMENT opportunities and threats analysis,
 We define green marketing management as marketing objectives, marketing strategy,
the process of planning and executing the action programs, and projected income
marketing mix to facilitate consumption, statements.
production, distribution, promotion,
packaging, and product reclamation in a THE STRATEGIC PLANNING PROCESS
manner that is sensitive or responsive to The Environment
 ecological concerns.  Ecological
 Social
SUSTAINABILITY  Economic
 Economic Performance  Competitive
 Social Performance  Political
 Environmental Performance  Legal
INCORPORATING A GREEN PERSPECTIVE a) Consumers. The purchasers and users of a
INTO THE MISSION STATEMENT firm s products are important stakeholders
 MISSION STATEMENT describes a firm s that influence the firm in many ways.
fundamental, unique purpose, indicating Consumers influence the action of a firm
what the organization intends to when they elect to buy the organization s
accomplish, the markets in which it product offerings or choose to purchase
operates, and the philosophical premises products from competitors
that guide its actions. b) Suppliers. Companies are increasingly
 The mission statement is an inspirational finding that their suppliers influence efforts
tool that provides motivation, direction, and to achieve sustainability.
insight into the company s character. c) Employees. The employees of the firm play
a strategic role in the implementation of
Integrating a Green Mission into Objectives, any strategy. As stakeholders, employees
Strategy, and Marketing Tactics are important sources of sustainable new
 Organizational objectives are desired or product ideas.
needed results to be achieved by a specific d) Competition. The competitors in the
time and emerge from the development of market have a strong influence on the
the mission statement. activities of the firm. Companies must
 Organizational objectives are short-term proactively monitor the action and
and medium-term goals that an performance of their competition.
organization seeks to accomplish. An e) Legal System. The courts and legal system
organization's objectives will play a large are stakeholders that influence the firm via
part in developing organizational policies the enforcement of laws governing
and determining the allocation of sustainability.
organizational resources. Achievement of f) Financial Institutions. Banks, other
objectives helps an organization reach its lending agencies, and insurance firms are
overall strategic goals. significant stakeholders because they
determine the availability and cost of funds
to an organization
g) Government. Government influences the
action of firms via the regulations
established to ensure product safety
throughout production, use, and post-
consumption.
h) Media. media are strategically poised to
frame public perception of the events
involving the firm. Increasingly, firms
recognize that they must manage their
\ interaction with the media in a proactive
manner.
i) Stockholders/Owners. Investors with a
variety of levels of ownership in the firm are
increasingly taking action to influence the
extent to which firms pursue sustainability
causes.
j) Scientific Community. Evidence developed
within the scientific community has a
strong influence on other stakeholders and
thereby influences firm action.
k) Nongovernment organizations (NGOs).
NGO is a term used to describe a broad
DELIVERING VALUE TO ALL family of organizations that is not profit
STAKEHOLDERS oriented or supported by government.
 Stakeholders refers to the individuals, l) General Public. The public at large are also
organizations, and groups that have an stakeholders that influence operations. For
interest in the action of an organization and example, urban planners recognize that
have the ability to influence it.
 management of relationships with the  Use of logistics vehicles to transfer the
public enables them to gain support for goods, whether from land, sea, or sky.
land use initiatives.
CONSUMPTION
 This one is the sector that makes all this
system have sense for the businessmen, so
FACTORS SURROUNDING MARKETING
it is the priority for the companies;
ACTION Everything is done in order that we buy,
Marketing Action demonstrating that the identity of everyone
is being consumers.
 Environment
 Marketing Strategy DISPOSAL
 Macroeconomic Sector  It is the act of rejecting everything what is
considered to be a garbage.

CONSUMERISM AND CONSEQUENCES

 Global Warming
ENVIRONMENTAL IMPACT  Climate Change
 Pollution
INTRODUCTION  Etc.
 This topic seems to me to be interesting
because we all in our environment are CONCLUSION
buyers for nature, we live in a very  We as responsible people have to change
materialistic world that only devotes himself our way of thinking that stuff is the only
to think in the obtaining of things and who matter and try to help to keep the planet
has better; but nobody stops thinking alive for the future generations.
about on how the products that we
consume are made and the effects that
produce on the environment. DISCOVERING VALUE VIA MARKET
ANALYSIS
HOW CONSUMERISM WORKS?
 The consumerism divides in 5 parts and THE STRATEGIC PLANNING PROCESS
works like a linear system. But in spite of E – Ecological
the fact that this is what is known really it S – Social
is not quite since many spaces are absent E – Economic
without filling, this is actually a system in C – Competitive
crisis because it is a linear system that P – Political
begins with extraction and ends in rejecting L – Legal
everything that is produced  The central factor in the pursuit of
 Extraction sustainability is the value that market
 Production offerings provide to a consumer.
 Distribution
 Consumption STP MARKETING
 Disposal S – Segmentation
T – Target Marketing
EXTRACTION P – Positioning
 Is to take out the resources from the planet
for the elaboration of products or personal MARKET
benefits.  A market consists of all organizations or
people with a need or want and the ability
PRODUCTION and the willingness to make purchases to
 Later, the resources are taken to factories address these needs and wants.
to make the final product which are made
with toxic components. People that work MARKET SEGMENTATION
there are like slaves because they’re not  Refers to the process of dividing a market
being paid and they work in deplorable into distinct segments or subsets or
conditions, even child work in those customers that have similar needs or
conditions. behave in the same way.
DISTRIBUTION
TARGET MARKETING 1. TRUE BLUES
 Refers to the organization’s efforts to serve  Are those consumers with strong
a selected segment within the marketplace. environmental values that seek to bring
about positive change.
POSITIONING
 Refers to the development of the marketing 2. GREENBACK GREENS
mix to yield a distinctive appeal to the  Are also interested in sustainability
target segment. concerns, but they are not inclined to be
politically active.

MARKET SEGMENTATION 3. SPROUTS

 These consumers appreciate the merits of
SUBSTANTIAL environmental causes, but they do not take
 Substantiality is the criterion that this appreciation with them to the
emphasizes the need for the segment to be marketplace.
large enough to warrant attention.
4. GROUSERS
IDENTIFIABLE AND MEASURABLE  This groups of consumers tend to be cynical
 The identifiable and measurable about its ability to bring about change, and
requirements - Reflects the need to be able it is relatively uneducated about ecological
to categorize persons within and outside of concerns.
the market segments.
5. APATHETICS
ACCESSIBLE  Formerly labeled “basic browns”, the
 In many cases, an organization may be able apathetic do not concern themselves with
to quantify the size of market segments, but sustainability or green marketing practices.
it cannot reach the segments via a
customized marketing mix.
LOHAS
RESPONSIVE  Refers to lifestyles of health and
 The responsiveness criterion considers sustainability.
whether the consumers in a market
segment are more likely to respond to a 1. NATURALITIES
marketing mix in a manner that is different  This second market segment refers to
from other consumers. consumers primarily concerned about
personal health and wellness.

2. CONVENTIONALS
 These individuals are practical and enjoy
THINGS I WAS ALREADY DOING seeing the results of their action, they are
TOWARDS ZERO WASTE likely to recycle and conserve energy. They
recognize the value in buying products that
DEMOGRAPHIC SEGMENTATION save money in the long run, but the
 To separate potential buyers base on age, ecological merits of consumption are not
gender, income, or occupation. paramount in their decision making.
 The largest segment of the NMI Analysis
GEOGRAPHY SEGMENTATION includes 58 million adults or 26% of the
 Firms also separate groups of consumers adult population.
based on geography segmentation.
3. DRIFTERS
PSYCHOGRAPHIC SEGMENTATION  The drifter category refers to consumers
 To distinguish among consumer groups. that are not highly concerned about the
 PSYCHOGRAPHICS – refers to the use of environment and believe that problems will
attitudes, opinions, motives, values, eventually be resolved.
lifestyles, interest, or personality to
distinguish among consuming groups 4. UNCONCERNED
 The final group of the NMI Analysis is a
group that has priorities other than the
environmental society.
BENEFIT SEGMENTATION markets with fresh foods that their
 Which refers to the delineation of segments multinational competitors cannot provide.
based on the benefits that buyers hope to
derive from a purchase.
FOUR POTENTIAL GREEN
TARGET MARKET MARKETING STRATEGIES
 Refers to a subgroup of a total market that vary based on the size of the
selected as the focal point of the marketing green market and the ability to
mix. differentiate based on the greenness of the
product.

PRIMARY CONSIDERATION FOR 1. LEAN GREEN STRATEGY

SELECTING A TARGET MARKET  Refers to a situation in which the size of the
green market is modest, and the firm has
CONSIDERATION OF THE FIRM’S ABILITY limited ability to differentiate based on the
TO SATISFY THE NEEDS OF THE SEGMENT greenness of product offerings.
 Serving a market demands that the firm  Lean greens are not often motivated to
make sizeable investments that are often promote their green activities or green
specific to the needs of the market segment. product attributes because of the fear of
Serving a market demands that the firm being held up to a higher standard; and
make sizeable investments that are often they are not always able to live up to it or
specific to the needs of the market segment. differentiate themselves from competitors.
If the firm possesses the resources to
satisfy the needs of the market segment, 2. DEFENSIVE GREEN STRATEGY
then it is logical for the firm to consider this  Reflects a situation under which the market
group as a potential target. for green products is large, but the ability to
differentiate based on the ecological merits
SIZE OF A MARKET SEGMENT of the product is low.
 In general, a large group can be more easily  They seek to enhance brand image and
justified as a target due to the sheer mitigate damage. They recognize green
amount of consumption. When groups get marketing is important and profitable, but
too large, however, the market they cannot afford to go green. Their
segmentation does not offer much insight. environmental Initiatives seem to be
 The size of the group must be assessed sincere, but their efforts to promote these
relative to the amount of consumption initiatives are rather sporadic and
within the group temporary because they are not able to
differentiate themselves from their
GROWTH POTENTIAL competitors on greenness.
 The recurring research by Roper Strach
Indicates that the number of true-blue 3. SHADED GREEN STRATEGY
consumers has increased dramatically over  Refers to a market in which a demand for
the past few years. (True-blue means ecologically sensitive products is low, but
completely faithful and loyal to a person or there is a substantial opportunity to
an idea) differentiate based on ecological viability of
a product.
 Shaded green companies invest in long-
NICHE MARKETING STRATEGY term, system wide, environmentally friendly
 Whereby they serve a selected market better processes that require a financial and
than their competition does which a specific nonfinancial commitment. These companies
product is focused. The market niche see green marketing as an opportunity to
defines the product features aimed at develop innovative needs- satisfying
satisfying specific market needs, as well as products and technologies that result in a
the price range, production quality and the competitive advantage.
demographics that it is intended to target.
It is also a small market segment. 4. EXTREME GREEN STRATEGY
 Extreme Green companies pursue actions
EXAMPLE OF NICHE MARKETING STRATEGY such as life-cycling pricing approaches,
 For example, many local farmers are taking total quality environmental management
advantage of the ability to serve local and manufacturing for the environment.
Extreme companies often serve niche
 market and sell their products through VALUE PROPOSITION
boutique stores and specialty channels.  statement of the emotional, function and
self-expressive benefits delivered by a brand
that provide value to consumers in a target
MARKET POSITIONING market.
 The positioning strategy refers to the
development of the marketing mix to yield a A VALUE PROPOSITION TO BE SUCCESSFUL
distinctive appeal to the target segment. SHOULD BE:
 A vital facet of the positioning strategy is  strong and clear headline.
that the value offered to the consumer must  memorable phrase, short sentence, or
be meaningful to that target market. tagline.
 The positioning strategy that a firm selects
must be consistent over time and must be VALUE PROPOSITION Is critical to ongoing
internally consistent. success. because it is the basic for brand
 The positioning strategy must also be choice & consumer brand loyalty.
simple and distinctive. The Clorox Green
Works Brand has been able to capture  We must go through STP Framework to
market share because the sustainability develop a Value Proposition that resonates
message is easily communicated to in the market
consumers.

COMMUNICATING VALUE VIA

EFFECTIVE POSITIONING THEMES INTEGRATED MARKETING
PROGRAMS
1. THE BENEFIT POSITIONING
 Since benefits are the basis for most
WHAT IS INTEGRATED MARKETING
purchases, it is valuable in many markets
COMMUNICATION?
to focus on the returns derived from
consumption.
INTEGRATED MARKETING
 Functional
COMMUNICATION (IMC)
 Emotional
 Is a concept under which a company
 Self-expressive - addresses the how the
carefully integrates and coordinates its
product influences the presentation of the
many communications channels to deliver a
individual to relevant others.
clear and consistent message.
 Is the concept of coordinating all this
2. THE COMPETITIVE POSITIONING
activity across different communication
 Refers to the direct reference to the
methods.
competition in order to illuminate the
benefits of a firm's brand.
 In many cases, firms that have developed
MARKETING COMMUNICATION
relatively environmentally friendly products)  Refers to activities deliberately focused on
compare the green features of their promoting an offering among target
offerings to the competition audiences.
 Includes all the messages, media, and
3. THE USER POSITIONING activities used by an organization to
communicate with the market and help
 In this positioning theme, the marketer
persuade target audiences to accept its
develops a profile of a specific target user as
messages and take action accordingly.
the focus of the positioning strategy.
 For example, Woolshire Carpet ads that PROMOTION
show a family posing in a natural setting  Refers to all communication from the
highlight the lifestyle of the target market. marketer designed to persuade, inform, or
Such ads seek to make the use of Woolshire remind potential buyers of a product in
carpets consistent with the lifestyle of the order to elicit a response or influence an
target market. opinion.

PROMOTIONAL MIX
 The promotional mix includes advertising,
personal selling, public relations, sales
promotion, and direct marketing.
ADVERTISING GREEN BRANDING
 Refers to one-way, impersonal mass BRAND
communication about a product or  Name, Term, Design, or Symbol that
organization that is paid for by a marketing identifies a seller’s product and differentiate
organization. them from competitor’s product.
 Nowadays, Firms are developing
PERSONAL SELLING Reputations for products that out form the
 Refers to personal, face-to-face interaction competition with respect to the
with a potential customer. environment.

PUBLIC RELATION GREEN BRANDS

 Involves the use of publicity and other  Brands that consumers associated with
nonpaid forms of promotion and environmental conversation and
information to influence attitudes about a sustainable business practices.
company, its products, or the values of the
organization. GREEN BRAND IDENTITY
 Refers to specific set of brand attributes
SALES PROMOTION and benefits associated with reduced
 Includes all marketing communication environmental influence of a brand and the
action other than advertising, personal perception of being environmentally sound.
selling, public relations, and direct
marketing designed to influence consumer CERTIFICATION LABEL
purchases and relationships with  It is a label or symbol indicating that
intermediaries in distribution channels. compliance with standards has been
verified. Use of the label is usually
DIRECT MARKETING controlled by the standard setting body.
 Refers to direct efforts to target an audience  Social labels that concern human rights
via the Internet, direct mail, telemarketing, and labor standards.
direct-action, advertising, and catalog  Traditional labels focused on a single aspect
selling. of the useable life cycle of a product, these
labels increasingly incorporate multiple
INTEGRATED BRAND PROMOTION criteria.
 Is a related term used to describe efforts to
bring consistency to the presentation of the RETAIL PRODUCT TERMINOLOGY
brand to consumers. Integrated brand  In the retail sector, consumers are
promotion refers to the use of the increasingly interested in purchasing
promotional mix to build brand awareness, healthy and sustainable products.
identity, and preference.
THREE TERMS USED TO VARY DEGREES
MESSAGE STRATEGY TO DESCRIBE AND CLASSIFY PRODUCT
 The message strategy refers to the
objectives established by the promotional NATURAL
manager and the methods employed to  Few terms employed in consumer
achieve these objectives. Messages have marketing are as confusing as the term
verbal, nonverbal, and technical natural.
components that are employed to enhance
the communication process and gain ORGANIC
consumer acceptance.  Production refers to the pesticide-free
farming of locally produced ingredients
MESSAGE OBJECTIVES typically grown in a small farm setting. Due
 Promote a brand recall to the different interpretations of the term,
 Link a key attribute to the brand name many standards have developed in different
 Convince the consumers markets and states.
 Instill brand preferences
 Change behavior by inducing fear or BIODYNAMIC
anxiety  Refers to a specific form of organic farming
 Situate the brand socially that augments organic processes with
 Transform the consumption experience consideration of the time of year, location,
 Define the brand image soil type, existing flora and fauna, and
other factors.