INSTITUTE –University School of

Business
DEPARTMENT -Management
M.B.A
Business .Society &Law- BAT 601

UNIT-3 DISCOVER . LEARN . EMPOWER

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LEARNING OBJECTIVES & LEARNING OUTCOMES
After studying this chapter, you should be able to:
Know about Green Marketing
Understand different prospects of Green Marketing
 https:// IMS Proschool

Business
Environment
Course Outcome
CO Title Level Will be covered in this
Number lecture

CO1 To understand fundamental concepts of business Remember

CO3 To interpret how global business environment affects Understand

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 Topic – 32
Green Marketing & Sustainable
Development

Source : proschool 4
 What Is Green Marketing?
Green marketing is the process of promoting products or services based on their
environmental benefits. These products or services may be environmentally friendly in
themselves or produced in an environmentally friendly way.
Green marketing involves companies promoting their products or services in a way
that showcases their eco-friendliness.
Alternate name: Eco-marketing, environmental marketing
According to the American Marketing Association, green
marketing is the marketing of products that are
presumed to be environmentally safe. Thus,Green
marketing incorporates a broad range of activities,
including
1. Product modification,
2. Changes to the production process,
3. Packaging changes, as well as
4. Modifying advertising
How Green Marketing Works
Green marketing begins with a company actually implementing and practicing
sustainable business methods. Companies risk being labeled as dishonest if their
business practices don't match their green marketing messages, so they must
ensure they're practicing what they're preaching. Authenticity is essential in
green marketing.
Companies generally have three angles of marketing their eco-friendliness:
•The items used to make their products
•The actual products
•The packaging the products are sold in
4P’S OF GREEN MARKETING
 4P’S OF GREEN MARKETING
• Element # 1. Green Products:
• Production of green products is based on green technology. Green products help in saving natural resources and
subscribe towards sustainable future.
• Element # 2. Green Price:
• Production of green products requires modification in the production processes and this necessitates expenditure. Cost
increase results in increased price point of green products thatmakes acceptability of the product in the market difficult.
The high price may act as a deterrent as consumers may be either unwilling or unable to pay this green premium.
• Element # 3. Green Place:
• Green place relates to the distribution of green products without doing any harm to the environment. This is achieved
through efficient utilization of fuel and energy and arranging for logistics with the least emissions.
• Element # 4. Green Promotion
Consumers need to be made aware about green products and motivated to purchase them. Therefore, huge amount of
money and resources are spent by companies nowadays on advertising and promotion of green products. Green
promotion entails increasing the sensitivity of consumers towards green products as well as promoting the products in an
environment-friendly manner like using social networking sites to post profiles related to green marketing.
 Example

• Bharat Petroleum:
Bharat Petroleum launched a programme to cut production of
greenhouse gases by 10% across its units worldwide and
achieved it much ahead of schedule. Cleaner fuels such as
Greener Diesel (ultra-low sulphur content) and BP Autogas
were developed. Almost all of its plants are ISO 14001
certified. Currently it is running a programme to contain its net
emissions at current levels for ten years.
Is Green Marketing Worth It?
Green marketing can be a very powerful marketing strategy when it's done
right. Consider the following:
•Forty-eight percent of U.S. consumers say they would definitely or probably
change consumption habits to reduce environmental impact.
•Products with sustainable attributes have been steadily taking more share of
store sales, from 19.7% in 2014 to 22.3% in 2017, to an anticipated 25% in 2021.
•Ninety percent of millennials say they are willing to pay more for products that
contain sustainable or environmentally friendly ingredients.
 Advantages of Green Marketing
• i. It ensures sustained long term growth along with profitability.
• ii. It saves money in the long run, though initially the cost is
more.
• iii. It helps the companies market their products and services
keeping the environment aspects in mind. It helps in accessing
the new markets and enjoying the competitive advantage
• iv. Most of the employees also feel proud and responsible to be
working for an environmentally responsible company.
Challenges of Green Marketing
1. Need for Standardization- It is found that only 5% of the marketing messages from “Green” campaigns
are entirely true and there is a lack of standardization to authenticate these claims. A standard quality
control board needs to be in place for such labelling and licensing
2. New Concept- Indian literate and urban consumer is getting more aware about the merits of green
products. But it is still a new concept for the masses. The consumer needs to be educated and made aware
of the environmental threats. The new green movements need to reach the masses and that will take a lot
of time and effort
3. Patience and Perseverance-The investors and corporate need to view the environment as a major long-
term investment opportunity, the marketers need to look at the long- term benefits from this new green
movement. It will require a lot of patience and no immediate results. Since it is a new concept and idea, it
will have its own acceptance period.
4. Avoiding Green Myopia-The first rule of green marketing is focusing on customer benefits i.e. the
primary reason why consumers buy certain products in the first place. Do this right motivate consumers to
switch brands or even pay a premium for the greener alternative.
 Environment Technologies
• Technologies that have been in usage include wind power, hydropower, solar energy, geothermal energy, and
biomass/bioenergy.
• Put simply, environmental technologies aim to protect the environment. They offer ways of consuming which
are less polluting or do so in a sustainable manner, and often provide new ways to avoid depletion of natural
resources altogether.
• More people using digital devices for communicating and storing information means that there is less reliance
on paper, which reduces deforestation. Since trees are an important source of oxygen and also absorb carbon
dioxide, this further reduces climate change
 References

TextBooks:
•Paul, J. 2018. Business Environment: Text and Cases, 4thEdition, Tata McGraw Hill, India,

•Cherunilam, F. 2017. Business Environment: Text and Cases.26thEdition, Himalaya Publishing, India,
ISBN: 978-9352733361.

Reference Book:-
•Business Environment, 13th Edition, Pearson Education India, India, ISBN: 9788131731581.

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 Assessment Pattern

Components HT-1 HT-2 Assignment Surprise Test Business Quiz GD Forum Attendance Scaled
Marks

Max. Marks 10 10 6 4 4 4 2 40

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THANK YOU

For queries
Email:
ramneek.e11464@cumai
l.in

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