Definition of Green Marketing: Purpose, Components, Benefits & Application Examples

The definition of green marketing – The more you come here, the more real the impact of environmental problems seems, right? Global warming, destruction of coral reefs, air and water pollution, deforestation of tropical forests, and bad waste management are starting to affect our lives.

In the past, there were still many people who did not really think about environmental issues. Over time, slowly but surely, more and more people are starting to take this seriously. In fact, make this a consideration in making decisions, including buying or consuming products.

Not a few who prefer products that are environmentally friendly. Because of this, now many companies are implementing environmental-based marketing strategies or commonly known as Green Marketing .

So, what exactly is Green Marketing ? How is the concept? What are the benefits that companies and consumers get from green marketing? In this article, we will cover all of them in depth. Listen to the end, OK!

Definition of Green Marketing

Green Marketing , according to The American Marketing Association (AMA) is product marketing with more emphasis on environmental safety. It includes all company activities, from product modification, production process, packaging, and advertising.

So you could say that the company takes advantage of various environmental preservation issues to devise ways to promote its products. This is done to respond to consumer expectations in preventing environmental damage. As explained by Ari Setiyaningrum, Jusuf Udaya and Efendi in the book Principles of Marketing .

In addition, every company that implements green marketing usually chooses product marketing that is safe for the environment, designs product development so as not to have a negative impact on the environment, and produces, promotes, packages and claims products in a way that is more sensitive to environmental issues.

Green Marketing Goals

Basically, the company’s goal of implementing green marketing is to gain added value, increase competitiveness, and produce products that are more eco-friendly .

Given that people’s awareness of environmental issues is increasing, if a company cannot meet consumer expectations, it will most likely find it difficult to survive.

As proof, many companies are increasingly aggressively adopting green marketing activities into their projects, producing products that are more environmentally friendly, and reaching consumers with messages and ways that are environmentally friendly.

In short, green marketing is chosen to meet the needs and affect the emotional feelings of consumers by reducing the impact of environmental damage.

Green Marketing Components

Green marketing has three main components, namely eco label , eco brand , and environmental advertisement . All three are green branding tools that can increase awareness of the features and aspects of products that are environmentally friendly.

By implementing these three green marketing components , companies can “seduce” consumers to buy products that are environmentally friendly and help reduce the negative impact of the production process on the environment.

Furthermore, Boztepe (2012) explains that green marketing also has factors that are usually taken into consideration by consumers when choosing environmentally friendly products, namely environmental awareness , green product features , green prices, and green promotion .

In other words, if the company wants to be known as a company that pays attention to environmental preservation, then these four factors must really be considered.

Environmental Awareness

Environmental awareness is the company’s awareness of the condition of the surrounding environment and the importance of protecting the environment. With this, companies can introduce environmental problems and convince consumers that the products they get do not harm the environment and human health.

Green Product Features

This is a product feature that supports environmental care. At the very least, an environmentally friendly product must fulfill several things, namely:

  • Can be reused or recycled
  • The packaging can be accounted for
  • Does not contain hazardous materials
  • Wear green labels
  • Organic and certified

Green Product Price

Price is a very important marketing element in influencing consumers and showing product quality. Many consumers are willing to pay for products that are expensive as long as the product has more value for them.

For example, they are willing to buy food whose ingredients are proven organic and do not harm health or the environment even though the price is relatively expensive. For them, the money spent is proportional to the benefits they get.

Green Product Promotion & Advertising

The last is the company’s efforts to introduce products to consumers by utilizing environmental advertisements in various media. That way, companies can invite consumers to buy environmentally friendly products and make them aware of the positive impact of purchasing these products on themselves and the environment.

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In order for an environmental advertisement to run smoothly, the company must include the following three elements:

  • Company statement on environmental concern
  • Shows that the company cares about and is dedicated to improving the environment
  • Demonstrate actions or actions of companies that care about the environment and show the results.

You can learn more about green promotion in the book Strategic Marketing: Sustaining Lifetime Customer Value written by Sofjan Assauri. This book comprehensively describes the concept of customer satisfaction that makes strategic marketing, both strategic, segmentation, positioning, preparation, and implementation.

 

Components of Green Marketing Outside the Company

In addition to the four components above which are all carried out by the company, green marketing is also influenced by components carried out by parties outside the company, namely:

Paying Customers

Paying customer is a group of consumers who are committed to buying environmentally friendly products. These consumers have their own level of “greenness” and product needs.

Providers

Providers are suppliers of raw materials, energy, and office equipment using environmentally friendly methods. For example, a wood supplier who obtains his wood legally and pays attention to the sustainability of the forest.

Politicians

Politicians refer to government regulations regarding the environment that will affect companies in implementing green marketing . Companies can also play an active role in encouraging the government to draft regulations if necessary.

Pressure Groups

Pressure groups are parties that pressure companies to implement environmentally friendly production systems. For example, such as government, consumer agencies, or trade organization legal institutions.

Problems

The problems here are environmental and social issues related to the company.

Predictions

This is a prediction of the problems that will be faced by the company in the future.

partners

Partners or partners are third parties associated with companies involved in environmental and social issues.

Benefits of Green Marketing

The concept of green marketing is actually an alternative for companies to carry out marketing using limited resources effectively and efficiently. This is done in order to meet the needs and desires of consumers who are increasingly concerned about environmental issues.

Especially now that many people are increasingly concerned about the environment. Starting from academics, consumers, practitioners, public regulators, to the wider community. By implementing green marketing, companies will also get other benefits, namely:

  • Get environmentally friendly products
  • Manufacturers and advertisers alike develop products to meet consumer desires
  • Become more innovative in input, output, and marketing strategy.

Green Marketing Constraints

In the process of implementing green marketing, companies may encounter several problems or obstacles. For example like:

1. Choosing Inappropriate Green Marketing Activities

There is a possibility that the green marketing activities chosen by the company are inappropriate. Especially if the activity misleads consumers and industry, and violates applicable rules or laws.

2. Perception error

When a company modifies a product to meet consumer demand, the product may not be of better quality than the previous product. This is most likely due to a misperception by the company. Therefore, companies must have good knowledge in order to take the right steps.

3. Unsupportive Regulations

Companies must ensure that regulations made by the government can support green marketing activities that will be carried out. In addition, regulations must be able to provide opportunities for consumers to make better decisions and motivate them to be environmentally responsible.

Why Should You Implement Green Marketing?

In Canada, India, Australia and several other countries, green marketing is a major requirement that must be met. In India, for example, 25% of people believe that green marketing is very important for protecting the environment in the future.

Beyond that, green marketing can also make companies have a harmonious relationship with nature. That way, companies can use it as a foundation in various activities. For example, making buildings that are environmentally friendly.

It doesn’t stop there, green marketing can also provide other benefits such as:

1. Producing a Longer Lasting Product

Products processed with green marketing principles are usually more durable than other products. The reason is because the production process uses environmentally friendly materials and the resulting product can be recycled again.

This is what differentiates green marketing products from other products that usually can only be used once.

Based on a survey of 30 thousand people conducted by the Nielsen Global Survey, 55% of them are willing to spend more money to get green marketing products.

2. Save Expenditure Costs

In carrying out green marketing, companies must ensure that all production processes are carried out in an environmentally friendly way, including using energy.

Well, the use of environmentally friendly energy can actually save the company’s expenses in the long term.

3. Changing Thinking Regarding the Environment

Consumers are not the only party invited to care about environmental sustainability. The concept of green marketing must be able to encourage every company to use natural resources wisely, such as the use of water and electricity.

In addition, this concept can indirectly change the way companies and consumers think about the environment. For example developing ways to deliver products that are more fuel efficient, utilizing alternative energy sources, or looking for renewable staples.

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Green Marketing marketing strategy

Consumers in Indonesia actually have concern for environmental issues, unfortunately they do not know what steps must be taken to produce ” green ” activities. Moreover, they are also not the party that makes “ green ” goods or services.

This can be used by companies to implement green marketing marketing strategies . That way, companies can change the behavior and lifestyle of consumers.

As in the book Marketing Management Basic Concepts of Strategy compiled by Sofjan Assauri. This book teaches you about providing insight and knowledge about marketing management: an outline and systematic understanding of the basics of knowledge and its problems, and its application in managing the marketing field within a company.

The steps that can be taken by companies in implementing green marketing marketing strategies are as follows:

1. Segmenting

Segmenting is market grouping by creating market segment profiles. Kottler (2009) defines a market segment as a group of customers who have the same desires. Companies can take advantage of SWOT analysis to create a conceptual framework and look for opportunities that exist in each segment.

2. Targeting

Targeting here means determining the market segment to be served by the company. In this stage, the company must be able to define the buying interest and purchasing power of consumers who claim to be ” green consumers “.

Fortunately, most consumers who are looking for green marketing products are usually educated, so they are worthy of being a target market. To achieve this, companies can take advantage of various facilities, including the internet.

3. Positioning

Positioning is an attempt to design a company’s offer and image so that it has distinctive characteristics compared to other competitors in the minds of consumers. Here the company must look for what offers can create the image of an “environmentally friendly company” to consumers.

One way is to conduct education, because this can shape the company’s image (Polonsky, 2009). For example by holding a program to introduce environmental problems to consumers and show the company’s efforts to overcome them. This can be done by introducing environmentally friendly products or work culture.

4. Products

To implement green marketing , companies must make consumers aware that the products they use are environmentally friendly products. This can be done by:

  • Adding eco labels to products
  • Include the message ” less environmentally harmfull ” to give the impression the company is trying to minimize environmental damage.
  • Use the green color which represents the environmental care movement

5. Price

When compared, the price of green marketing products is indeed more expensive than other products. However, the company also incurs less production costs in the long run.

Companies also usually target the upper middle class market who already have knowledge of environmental issues so that companies will find it easier to convey their environmentally friendly messages.

In addition, by targeting the upper middle market, the company can create opinion leaders who will influence the market segments below.

6. Promotion

In implementing green marketing , companies can use 4 ways of promotion, namely:

Sales Promotions

Sales promotion is a way for companies to introduce green products to the public by providing samples of their products.

Publicity

Publicity is the method most often used by companies when marketing green products. This method usually shows the implementation of CSR carried out by companies to the public while offering the products they have.

Advertising

Companies use online marketing advertising strategies to promote green products. 

Distribution

Companies can use two ways to distribute green products. First with direct marketing channels via online marketing . The second is with a 1-level channel for consumer goods companies .

Examples of Green Marketing in Indonesia

Green marketing is nothing new in Indonesia, although numerically not many companies have implemented it. According to data from the Ministry of Industry , there are 69 companies on the list of green industries. Some of them are Unilever, PT. Sinar Sosro, and PT. Holcim Indonesia.

On a smaller scale, S. Sorong., J. Lapian & D. Soepono (2022) found that green marketing is a determining factor for high/low consumer purchasing decisions for products resulting from Unsrat’s micro, small and medium enterprises.

In other words, green marketing is very influential in changing consumer purchasing decisions. The higher/better green marketing perceived by consumers, the purchasing decision will increase. Vice versa, if green marketing perceived by consumers is getting lower/worse, purchasing decisions will be lower.

In addition, research conducted by Hindayani & Setyorini (2020) also found that eco labels, eco brands , and environmental advertisements used on Love Beauty and Planet products in Bandung have a partial and simultaneous effect on consumer purchasing decisions. This means, consumers have awareness about the importance of using environmentally friendly products.

Closing

Basically, with this green marketing , indirectly, natural conditions will be better maintained. Therefore, not a few companies are currently implementing green marketing. What we can see from marketing green marketing in general is the packaging and also the process of making a product where companies claim that the packaging and process of making their products are environmentally friendly.

Thus the discussion of green marketing to examples. Hopefully all the discussion above can be useful for Readers.