Define green marketing and sustainability. In addition, explain the effect of sustainability on green marketing in business today. Please use examples where applicable.
With the increasing advocacy for clean environment and climate change, businesses have focused on producing and selling environmental friendly products. In areas where changing climates have been greatly felt, people are moving towards utilizing products that produce the least or no greenhouse gases. Green marketing is basically marketing those products that are believed to be environmental friendly. The advent of green marketing can be traced to late 1980s through the early 90s in the United States and the United Kingdom (Choudhary & Gokarn, 2013). Generally, green marketing does not only focus on selling eco-friendly product but also deals with modification of products, making changes to the product production processes, and changing the packaging. It also involves making changes in the advertisement to promote the company’s processes and its less environmental effects. The contemporary society has focused on using clean products and this has made spending shift towards green products.
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Although many people have interchangeably used the words sustainability and green, sustainability refers to products that take into consideration the social, environmental, and financial responsibilities. This implies that sustainability focuses more on the implications that the products and services have on the three responsibilities upon utilization for a long time (Choudhary & Gokarn, 2013). Businesses that choose to go green and sustainable, set goals that are specific to each product. Sustainability is achieved if the products in the first step ensure minimal resource wastage. Green marketing and sustainability go hand in hand and any process that results in green products is deemed to result in sustainability if well handled.
Businesses thrive through rigorous marketing of their products with proper analysis of threats and opportunities. Once new opportunities prevail, marketers try to continuously monitor and adapt to the new environment. With the ever increasing number of products in every industry, marketers seek ways to capture the needs of the buyers bearing in mind the need to provide better living standards while at the same time maintaining sustainable development (Choudhary & Gokarn, 2013).
The current situation of climate and the expected future effects have to a higher percentage led to the need for sustainability in green marketing. According to World Bank (2012), poor management in agricultural activities in many parts of the world has led to air pollution, water pollution, and soil PH change which have consequently resulted in enormous costs both in human and financial resources. With the widespread sensitization on the need to conserve the environment, people have started changing their behaviors and businesses have focused on going green. Companies that already produce eco-friendly products are experiencing big sales as many consumers are becoming sensitive to the environment. The need for sustainability in green marketing has, therefore, changed business strategies today as companies try to keep pace with the current trends and remain relevant in the market.
Explain the relationship between sustainable products and consumer demand. Please comment on how a firm can identify sustainable product opportunities in the marketplace. Please use examples where applicable.
The big product market provides a wide choice for consumers on the products they wish to purchase. The current high standards of living in many parts of the world make sustainability a priority in consumer’s list when making purchases. Generally, green products are highly sustainable and this makes them highly preferred compared to other non-green products (PWC, 2010). People want to purchase products that are pocket friendly and effectively serve the same purpose as the other products. Since many people especially in the developing nations fall in the average and lower classes, they opt to purchase products that are both affordable and friendly to their environment. For instance, introduction of solar lamps has brought significant changes in rural areas of developing countries. The most appealing element of the solar lamps is its cost. Many companies offer these lamps at affordable costs and many people are able to purchase because its use is also economical. This is because the user only has to spend on purchasing and use it for more than five years while using solar energy to recharge it. Given that the sustainability of such products is proven, many people especially in the equatorial region purchase it hence large sales by the solar lamp companies.
Businesses can identify sustainable products opportunities through continuous monitoring of the market. Generally, products that are not sustainable are not appealing to the average and lower class citizens. Irrespective of the price, many people will tend to purchase sustainable products since their long term use will have less stress on their income. By watching the people’s purchase potential and the availability of technology to convert current products into sustainable products, businesses can easily shift and capitalize on such opportunities.
Furthermore, a firm can identify sustainability opportunities by taking a thorough review of the entire supply chain as a way of determining areas of high customer demands for sustainable products. Most products that are viewed to be sustainable may be of benefit to other consumers rather than the expected end user and this requires a firm to take an assessment of the sustainability demand through market segmentation (PWC, 2010). By articulating how the new product will meet the existing demand, the company can create a market pull of the product. For instance, a firm that sells reusable cleaning materials can segment its market base and determine whether the last consumer of the product gets a full benefit of using the product. In cases where little benefits reach the consumer, the firm would choose to change its distribution channel such that direct purchases can be made from the supplier irrespective of quantity. By doing this, the firm will be able to determine the exact position of the product demand.
The firm can also use the knowledge on the particular areas of high demand and make a reverse follow up to identify those suppliers in the instant supply chain who they can partner with and take advantage of the sustainability demand. Within any supply chain, there are products that have higher customer demand compared to others and this can be a suitable way that a firm that make business relationships with the suppliers of such products. It is however, possible to get high demands for products that are sustainable but the economic benefit to the seller is negligible. To avoid such scenario, the firm should focus on developing its products in specific areas that the sustainability product demand comes with reasonable profits. Innovation through rebranding of existing products can also be used to identify demand for sustainable products.
Lastly, a firm can develop sustainability strategies that are market specific. By understanding sustainability limitations that the product end users face, the firm can be able to identify the available opportunities and further assess the suitability of its existing product and the need to come up with new products. Its interaction with the end user will also help the firm to identify approaches that can be used to increase the existing demand for sustainable products. Generally, identification of these opportunities requires study of product trends, product demand signifiers, and customer feedback.
Describe how sustainable products are integrated into consumer life. In addition, please compare awareness and cause marketing promotional campaigns. Please use examples where applicable.
Integration of sustainable products in consumer lives occurs as people become more concerned with both the environment and their income. Many consumers always look for better alternatives for products that seem uneconomical to them and even try as many options as they can. Companies always invest in advertisements of their products and those that make great and convincing adverts are able to experience big sales. Maintaining customer loyalty is however, a challenge for many companies as alternative sustainable products are always introduced to the market.
In order to create a strong customer loyalty through incorporation of sustainable products into customers’ lives, companies ensure that they are always ahead of others. This implies that they continuously improve their products and be ahead of their competitors while at the same time offering the product at an affordable cost. Customers will tend to stick to a company that is always improving its products to match the prevailing trends. If a company is able to make a brand name that is sellable, customers will find themselves purchasing its products without thinking of taking another alternative product. Companies that provide details of how their products are made, packaged, and distributed are likely to attract many clients since many people especially in the contemporary society want to understand the products they use in their homes
Companies adopt various ways of promoting their brands and increasing awareness in different markets. Product awareness campaigns help to enhance consumer consciousness of a certain product. The level of awareness is an indicator of the ability of a potential customer to both recognize a product and associate it with the company. A company that manages to get the highest product awareness finds it easier to penetrate into new markets. Through awareness campaigns, a company is able to promote its products hence high chances of increasing its customer base. Product awareness can be done through advertisements in media or road campaigns.
Just like product awareness campaigns, cause marketing campaigns provides information to potential customers who have not come across the company or its cause. Although cause marketing may involve use of donations as a way of supporting its cause, the primary objective is to sensitize the public on the current or new products or cause. Some of the common cause campaigns include ‘Breast Cancer campaigns’ and ‘spoonful of stories.’ Cause marketing campaigns also targets direct consumers of products. Given similar products, a person will always find it important to purchase a product that supports a cause. Nonprofits organizations partner with companies that are willing to support their cause and help promote their products as they at the same time reach the public, hence giving mutual benefits.
Since cause marketing brings out a sense of inclusivity, many consumers are reached. With many companies working round the clock to increase their profits through marketing and product awareness campaigns, people tend to purchase products from companies that promote a cause. Furthermore, people would be interested to make a difference by getting involved in the cause by purchasing the products from such companies. It is however, important to make a clear check to ensure that such marketing strategies are legitimate since some companies may take advantage of the public’s positive gesture towards a certain cause.
Both product awareness and cause marketing campaigns help companies to promote their products and even enter new markets. In awareness campaigns such as road shows, companies may give product samples to people or gift them with t-shirts and caps branded with their company products. Such campaigns make people curious to use the new or improved products of the company hence increasing the company’s sales. Both campaigns are, therefore, suitable for companies that are promoting their existing products and those that are introducing new products.
References
Choudhary, A. & Gokarn, S. (2013). Green marketing: A means for sustainable development. Journal of Arts, Science & Commerce, 4 (3) 25-32
PWC (2010). Green products: Using sustainable attributes to drive growth and value Sustainable business solutions . Retrieved from <http://www.pwc.com/us/en/corporate-sustainability-climate-change/assets/green-products-paper.pdf/>
World Bank (2012). Incorporating green growth and sustainable development policies into structural reform agendas, G20 Summit .
