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Study <strong>of</strong> Impact <strong>of</strong> Green Marketing on Sale<br />

Ashish Vasantrao Gadekar, HEAD, Department <strong>of</strong> Business Studies, Maha Maya University, India<br />

Rimalini Ashish Gadekar, Faculty In Mechanical Engineering, Government Polytechnic Nagpur<br />

Introduction<br />

According to The American Marketing Association, “Green<br />

or Environmental Marketing consists <strong>of</strong> all activities<br />

designed to generate and facilitate any exchanges intended<br />

to satisfy human needs or wants, such that the satisfaction <strong>of</strong><br />

these needs and wants occurs with minimal detrimental<br />

impact on the natural environment.”<br />

Thus according to the American Marketing Association,<br />

Green marketing is the marketing <strong>of</strong> products that are<br />

presumed to be environmentally safe. Green marketing<br />

incorporates a broad range <strong>of</strong> activities, including product<br />

modification, changes to the production process, packaging<br />

changes, as well as modifying advertising. Other similar<br />

terms used are Environmental Marketing and Ecological<br />

Marketing. Recently, Green Marketing has drawn the<br />

attention <strong>of</strong> government and this has forced them to<br />

introduce environment-friendly policies. As resources are<br />

limited and human needs and wants are unlimited, resources<br />

have to be utilized economically and in an environment<br />

friendly way. The marketers should realize this and head on<br />

towards Green Marketing. Indian Government has already<br />

introduced Environment Protection Act in1986 and<br />

Environment Audit in 1992, the marketers have to realize<br />

that with increasing amount <strong>of</strong> global warming and<br />

Similarly, green marketing can operate from three<br />

perspectives: the personal, through products and individual<br />

benefits, the social, through communities and associations,<br />

and public, doing business and cultural leaders, credible<br />

resources (Grant , 2007). Goods and services exchanged in<br />

the green marketing are known as organic products or<br />

products that respect the environment. To Minetti (2002),<br />

three types <strong>of</strong> organic products: a) healthy products, those<br />

that have some ecological feature to connect to the market,<br />

b) natural products, goods that are environmentally friendly,<br />

and c) pseudoecológicos products, they say going green to<br />

win the favor <strong>of</strong> a market segment.<br />

The Evolution <strong>of</strong> Green Marketing<br />

Green marketing has evolved over time. According to<br />

Peattie (2001), green marketing has had three phases. The<br />

first phase occurs during the decades <strong>of</strong> 60 and 70, and is<br />

called the Green Marketing Green . This phase relates all the<br />

activities that seek to help solve environmental problems<br />

and aims to recognize the role that businesses, products and<br />

consumers from environmental problems such as<br />

degradation <strong>of</strong> biodiversity, global climate change and<br />

deterioration <strong>of</strong> the ozone layer. This phase is also<br />

evidenced by the increase in environmental standards and<br />

regulations that appear incorporated into development plans<br />

and sectoral programs.<br />

The second phase corresponds to the Green Environmental<br />

Marketing and occurs in the 80's. At this stage the main<br />

purpose is to use clean technology in innovative product<br />

design and production systems. For this reason, we have<br />

taken steps in certain production processes for the care <strong>of</strong><br />

the environment by preventing and controlling pollution and<br />

waste, mainly. During this time, it happens one <strong>of</strong> the<br />

stronger chemical disasters in the world, especially in India,<br />

caused by a gas leak in Bhopal region that wiped out more<br />

than 15,000 people. This second phase is characterized by<br />

the rise <strong>of</strong> activist groups and boycotts against the<br />

environmental damage caused by products, companies and<br />

governments.<br />

The third phase consists <strong>of</strong> the Sustainable Green Marketing<br />

and evidence during the 90's very close to the millennium.<br />

This stage shows the development <strong>of</strong> deeper and more<br />

meaningful green marketing, by providing an opportunity<br />

for sustainable consumption and production based on the<br />

protection and enhancement <strong>of</strong> natural resources (Peattie,<br />

2001). As resources are limited and the needs <strong>of</strong> human<br />

beings are unlimited, it is important that marketing experts<br />

use resources efficiently, to achieve the corporate objectives<br />

<strong>of</strong> companies and organizations. The consumer is aware <strong>of</strong><br />

the environmental impact and more <strong>of</strong> those products that<br />

are related to this initiative. At this stage it is found that<br />

green marketing is inevitable in the current context given the<br />

growing interest among global consumers regarding<br />

environmental protection.<br />

Challenges <strong>of</strong> Green Marketing<br />

Implementing Green marketing is not going to be an easy<br />

job. The firm has to face many problems while treading the<br />

way <strong>of</strong> Green marketing. Challenges which have to be faced<br />

are listed as under:<br />

1. Green marketing encourages green<br />

products/services, green technology, green power/energy; a<br />

lot <strong>of</strong> money has to be spent on R&D programmes. Thus<br />

practicing green marketing initially will be a costly affair.<br />

2. The customers may not believe in the firm‟s<br />

strategy <strong>of</strong> Green marketing, the firm therefore should<br />

ensure that they convince the customer about their green<br />

product, this can be done by implementing Eco-labeling<br />

schemes. Eco-labeling schemes <strong>of</strong>fer its “approval” to<br />

“environmentally less harmless” products have been very<br />

popular in Japan and Europe. In fact the first eco-label<br />

programme was initiated by Germany in 1978.<br />

www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 10, Feb-2012 Page 27

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