Saturday, February 16, 2013

Chapter 02- Environment Marketing



Chapter-02

Why Conventional Marketing would not work & Why the New Marketing Paradigm:
Conventional Marketing entails developing right Products that meet consumers needs and wants at affordable Price which is available at right  Place  and which is communicated to the target segment with right Promotional mechanism.

On the other hand, Environmental Marketing refers to develop products that balance consumers needs for quality, performance, affordable pricing and convenience with environmental compatibility i.e., minimal impact on the environment. It also project an image of high quality, including environmental sensitivity, relating to both a product’s attributes and its manufacturer’s track record for environmental achievement.

From the above two brief identification, we can easily distinguish the features which are making sense of differentiation in between the two marketing concepts. In the edge of such environmental consumerism, marketers are accountable to tough new standards. Environmental consumerism represents deep psychological and socio-logical shifts. Total corporate commitment to greening one’s product and services is required to be identified as ‘environmentally compliant’ industry. 

In such an attitude to be ‘environmentally compliant’, a new marketing paradigm called ‘Environmental Marketing’ has emerged in recent days. The marketers have now started thinking about how best to cater to consumer needs. They are calling for changes in the basic assumptions of marketing practices. Environmentally conscious marketers no longer view consumers as individuals with insatiable appetites for material goods, but as human beings concerned about the conditions of the world around them, how they themselves interact with the rest of the nature, and cognizant of how material goods impact their lives positively as well as negatively short term as well as long term.

In the past, products were designed in a linear ‘cradle to the grave’fashion, with no regard for the long term impact on society of their eventual disposal or of no appreciation for the value of the natural sources they represent. More flexible product offerings that best fit regional environmentally efficient considerations have replaced a ‘one size fits all’ system of nationally marketed brands, Innovative products with radical new designs, even with ‘dematerialized services’ are replacing resources-intensive products of the past.


The corporations that excel at environmental marketing are proactive in nature. They define the rules by which they and their competitors will be judged so as to surpass minimal compliance standards. The environmentally conscious corporations consider themselves to be interdependent like nature’s processes. To manage environmental issues throughout the value chain, the eco-efficient corporations ally with corporate environmental stakeholders in cooperative, positive alliances, and work hand to hand with suppliers and retailers. These companies with a long term orientation manage with a double bottom line- one bottom line for profit and the other one reflecting their contributions to society.

Strategies for the Success of Environmental Marketing:
Experts working in the arena of Environmental Marketing are of the opinion that the marketers or the companies should adopt some strategies for attaining success in environment marketing. Strategies are noted below:
A) The best quality product.
B) Interactive Marketing Program.
C) Profits for the planet program.
D) Eco-efficient design/Green by design of the product.
E) Minimisation of the direct environmental impact.
F) Use of sustainable sources of raw materials.
G) Source reduced products and packaging.
H) Conservation of natural resources, habitats &endangered species.
I) Use of Recycled Content.
J) Making products energy-efficient.
K) Maximisation of Consumer and environmental safety.
L) Making products and packaging reusable and refillable.
M) Designing products for remanufacturing, recycling and repair.
N) Making products safe for disposal.
O) Making products and packaging compostable.
P) Making the products sustainable and eco-efficient.

Above all of the strategies, some prioritize strategies are discussed below in briefly manner.

# Eco-efficient design/Green by design of the product:
To promote environmental marketing, the marketers/company should design their product in such a way that it is eco-efficient or environmental friendly.

The issues relating to environmental product which span every phase of a products life cycle, are varied and complex and also include a plethora of sub-issues noted below:
a) Conservation of natural resources such as water and land.
b) Energy efficiency.
c) Protection of natural habitats and endangered species.
d) Upgrading products, packaging to minimize environmental impact.

It may so happen that an expected environmental benefit may actually result in litter or no added value to environment. For instance, Plastic trash bags which are technically designed to disintegrate in the presence of sunlight may not degrade when buried in a landfill.CPC, the renowned cartoon manufacturing unit found that converting to recycled cartoon material would actually add about 20% to the width of their packaging material. This would at least partially offset savings to the environment, considering the added energy needed to ship new boxes.

In view of such scenario as stated above and also to prevent backlash from consumers, environmental groups and other stakeholders, all of whom may be quick to point out the shortcomings of products and packaging touted as green, a thorough approach to ‘Greening’ is required. A highly effective tool called ‘Life Cycle Inventory (LCI)’may be the appropriate strategy to make the product ‘Green by design’.

A LCI, the first step in conducting a full life cycle analysis of product, is a process that quantifies the use of energy, resources and emissions to the environment associated with a product throughout its life cycle. It accounts for the following environmental impact issues:
a) Raw-material procurement.
b) Manufacturing and production.
c) Packaging.
d) Distribution.
e) In-use characteristics straight through the after-use and disposal.

For instance, a LCI of Cotton versus Disposable diapers would quantify the amount of pesticides and water used to grow cotton, as well as the water and energy needed to manufacture the diapers and transport them to stores and homes. Finally, it would consider the amount of water and energy used to launder the cloth diapers. A LCI of diposable diapers would take into account the environmental burdens of extraction and refining the petroleum required to produce the plastic backsheets.It would quantify the energy used in manufacturing and transportation, as well as the amount of solid waste eventually set to landfills.

The LCI strategy to make the product green was developed initially during the 1970s to help reduce the amount of energy used for developing and distributing products. Several organizations have performed LCI in a wide range of industries
including paper, paperboard, glass, steel, aluminum, plastic beverage containers and delivery systems, building materials and transportation services.

  The LCI strategy is extremely useful for the following reasons:
a) Comparing the costs associated with energy and resource usage and environmental emissions associated with existing products and their alternatives.
b) Identifying significant areas for reducing energy use and water.

From the above discussions, we may summarise about LCI is that, LCI must be augmented with a holistic evaluation of a product’s total environmental impact. Renewable or sustainable resource use, habitat destruction, biodiversity depletion.odours, visual pollution, noise pollutions, toxicity, biodegradability, and other issues that are of concern to environmentalists and consumers.

# Use of Recycled Content:
 Recycling is useful in many ways which are noted below:

a)      It reduces pollution and conserves natural resources.
b)      It conserves energy.
c)      It can be cost competitive with land filling and incineration if seriously designed and implemented.
d)      It creates jobs and reduces cost in manufacturing sectors.
e)      It melts out the guilts associated with garbage thrown out of home.

With the help of innovative technologies, the use of recycled contents in consumer products has skyrocketed in the last decade. Products that formerly boasted 10% recycled content may now incorporate as much as 100% post-consumer content. In the past, recycled content was limited mostly to paper, glass, metals and some plastic laundry bottles. At present recycled content belongs to entire array of high quality products including clothing, furnitures, paint, motor oil and so on.

For instance, in the year of 1994, WELLMAN Inc, one of the largest recycler of PET soda bottles manufactured Fortel Eco Spun TM fiber from 100% recycled soda bottles. The fiber is sold to mills that turn it into high quality fabrics. Compare to Virgin Polyester, the production of EcoSpun use 60% less plastic, emits less carbon dioxide and less sulpher dioxide, and creates fewer hazardous air pollutants than the production of virgin polyster.

Another example may be noted here such as recycling of Used Motor Oil. Used motor oil seep through landfills and sewers, contaminate local waterways with toxins. The Safety Klean Company in USA installed collection network first to collect those and following the innovative refining process, the company converts the used motor oil into new lube oil and other usable products like volatile solvents, heavy distillation residue, water etc.

# Products Safe disposal:
For the promotion of environmental-friendly marketing, the company should manufacture products in such a way that it is safe for disposal after use. In other words, the products are such that their disposal after use does not exert any undesirable impact upon environment.

For instance, it is usually held that most cleaning products are biodegradable. The ingredients break down quickly and harmlessly after they go down through drainage. But in practice, not all ingredients are biodegradable. We know that one of the common ingredients in detergent is phosphates. The phosphates are nutrients readily taken up by water plants. But when excessive get into rivers and lakes, they cause algae blooms, robbing the water of oxygen, blocking the sunlight and ultimately killing fish and other marine life.

Another problem is Chlorine. Although it breaks down, it can react in a harmful way with organic compounds.

# To maximize Consumer and Environmental Safety:
Products should be produced and marketed in such a way that it maximizes consumer and environmental safety.

Empirical evidence shows some causes of illness/various sicknesses due to influence of consumer products made from synthetic. It is found that ‘formaldehyde’ in wood paneling causes wheezing, Organic gases in Carpeting causes lever damage,Perchloroethyleue used to dry clean clothing causes headache, and Volatile Organic Compounds(VOC) in cleaning product causes nausea. Much illness can be traced to indoor pollution which is always higher than any of us.

Consumers concern about product safety translates into opportunities for alternative home construction and cleaning products.

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