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Module-6
New Issues of Marketing
Green Marketing
Dr. Malay Ghosh
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7/26/2022 MBA (F/T) SEM II 1

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]
• Incorporates a broad range of activities, including:
– product modification/innovation
– changes to the production process,
– packaging changes,
– as well as modifying advertising.
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7/26/2022 MBA (F/T) SEM II 1

Green or Environmental Marketing
• Looks at how marketing activities utilize
limited natural resources, while satisfying
consumers wants, both of individuals and
industry, as well as achieving the selling
organization's objectives.
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WHY GREEN MARKETING?
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 energy
and material usage forces firms to modify their behavior [Azzone and
Manzini 1994].
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Why Does Green Matter?
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Source: National Technology Readiness Study, Rockbridge Associates, December 2007
I want to protect the environment
for the benefit of future
generations
The Earth belongs to humanity to do
with as it pleases
Americans Believe in
Environmental Stewardship
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Will The Green Trend Last?
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Chances Are Good
California has been leading the way in enacting
green laws:
• Mandated recycling of TVs and monitors
• Requiring retailers to take back plastic bags
• Almost outlawed incandescent light bulbs
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What is the Potential for Green
Products and Services?
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Service Technology Empowers Consumers to Be
Green
34%
44%
53%
52%
52%
58%
21%
31%
33%
42%
46%
51%
58%
73%
Power company controlled air
conditioner
Telecommute
Switch to electricity based on
clean/renewable resources
Replace paper utility statement with
electronic
Access online pub instead of print
version
Replace paper financial statements with
electronic
Recycle/refurbish old computer
% Who Have Done
% Maximum Potential Incidence
Opportunities for
financial services,
utilities, IT firms,
publishers
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Segmenting the Green Market
7/26/2022 MBA (F/T) SEM II 1

There is an Emerging Market for Green
Products
39%
41%
43%
52%
60%
64%
66%
80%
10%
10%
20%
29%
33%
37%
45%
69%
Eco-Friendly Home
Weather station
High MPG vehicle
Home water
purification system
High efficiency
cooling
High efficiency
heating
Programmable
thermostat
Energy saving
lighting
% Who Have Own
% Maximum Potential Incidence
Many include making homes and transportation
greener
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A “Green Segmentation” of the Market
• 1 out of 10 adults – “Green Tech Leaders” – are influencers
– They also embrace technology and believe in its ability to solve problems
• Another 2 out of 10 – “Green Tech Followers” – are deeply committed to green
issues and view technology as playing a role
10%
31%
12%
22%
7%
18%
Green Tech Leaders
Green Tech Followers
Tech Savvy Green Sympathizers
Enviro-Friendly Skeptics
Naïve Consumers
Anti-Greens
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Commitment
to Green
Influence
Absence of
Skepticism
Love of
Tech
Green Tech Leaders High High High High
Green Tech
Followers
High Low High Medium
Tech-Savvy
Sympathizers
Medium Low Medium High
Enviro-Friendly
Skeptics
High Low Skeptical Low
Naïve Consumers Medium Low Medium Low
Anti-Greens Low Low Skeptical Medium
Psychographic Profile of 6 Segments
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Green Tech Leaders
influence others through
social media
Anti-Greens also use
social media, and may
influence others on
their views
Influence: The Use of Social Media
% Who Agree With Statement
53%
20%
21%
35%
17%
50%
Anti-Greens
Naïve Consumers
Tech Savvy Green
Sympathizers
Green Tech Leaders
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Deploying a Green
Services Marketing Strategy
7/26/2022 MBA (F/T) SEM II 1

Will Green Marketing Help a Company?
• Yes! …but they have to be sincere!
68%
72%
I like to do business with
companies that are
environmentally responsible
I resent companies that say they
care about the environment but
don't mean it
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Skepticism: “There Is Nothing Anyone Can Do
To Prevent Global Warming”
63%
17%
46%
25%
2%
7%
Anti-Greens
Naïve Consumers
Tech Savvy Green
Sympathizers
Green Tech Leaders
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Green Tech Leaders – 10% of Market
How They Think Who They Are
 Important to be green
 Early Adopters
 Technology can save us
 Green gadgets are cool
 Like trying new green tech
 Do research and influence others on
green products
 Like doing business with green
companies
 Green is good for the wallet
 Younger
 More likely to have kids
 Tech professions
 Higher incidence of
• work PC use
• home networks
• high-speed home Internet
• access Internet on the go
 Higher web “presence” and
subscriptions to online music and
video
7/26/2022 MBA (F/T) SEM II 1

Example: Green Investments
13%
6%
2%
0%
2%
3%
32%
33%
12%
5%
15%
9%
Green Tech
Leaders
Green Tech
Followers
Tech-Savvy
Green
Sympathizers
Enviro-
Friendly
Skeptics
Naïve
Consumers
Anti-Greens
Own Now
Potential
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Influence: “Others Come to Me For Advice
on Being Green”
0%
2%
22%
9%
26%
50%
Anti-Greens
Naïve Consumers
Tech Savvy Green
Sympathizers
Green Tech Leaders
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Segments Where Green is Less Relevant
Naïve Consumers (22%)
 Hold “socially acceptable” opinions,
but no urge to act
 More concerned with getting by on a
day to day basis than being green
 Many are technophobic
 Low interest/awareness of green tech
or products
 Will avoid using green technologies
until they are proven
 Skew female, less techy
Anti-Greens (7%)
 Not committed to environmental issues
 Don’t care about green technologies or
products
 More concerned with getting by on a day
to day basis
 Environmental activists are
irresponsible; the Earth belongs to
humanity
 Oppose regulation
 Skew younger
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Green Tech Followers – 18% of Market
How They Think Who They Are
 Adamant about protecting the
environment
 People must reduce their impact on
the environment
 Green gadgets are fun
 Like trying new green technologies
 Research green products
 Like dealing with green cos.
 Green is good for the wallet
 Older
 Female
 Higher home ownership
rates
 Lower incidence of cell-only
households
 Spend fewer hours online
 Lower web “presence”
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Green Sentiment Runs High
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Commitment: “I Encourage Friends / Family to Be Environmentally
Friendly”
6%
41%
88%
50%
89%
98%
Anti-Greens
Naïve Consumers
Tech Savvy Green
Sympathizers
Green Tech Leaders
7/26/2022 MBA (F/T) SEM II 1

78%
60%
63%
31%
35%
56%
85%
70%
65%
40%
45%
56%
Green Tech
Leaders
Green Tech
Followers
Tech-Savvy
Green
Sympathizers
Enviro-Friendly
Skeptics
Naïve
Consumers
Anti-Greens
Use Now
Potential
Example: Online Financial Statements
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MBA (F/T) SEM II 1

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