green marketing – In a small initiative toward our mother planet, people have shown an interest in buying product or hiring services that are green & have little or no impact on the environment, even if that products or service would cost them a little more. For example, people are more comfortable paying high prices for organic cosmetics than cheap but chemically processed ones. Similarly, organic product or services that have a negligible impact on the environment tend to experience high demand from their customer or users.
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Realizing the trend, organizations have started to use sustainable approaches for their business model & aim to contribute to social goal through corporate social responsibility because these factor determine the future of their organization.
The world has reached a point where climate is a concern & need to be taken seriously. Heat waves around the world and the scarcity of naturals resources are already signs that it is getting worse by the day, even after prolonged form of healthy sustainability. This show that we have to do even more than is already being done. We must accept the fact that we caused the climate crisis & we need to incorporate a differents and much more productive business models to be a force for good in the world.
Sustainability is using resources in a way that not only meets the need of present generation, but is also sufficient for generation to come & beyond. Utilization along with preservation is the key to achieving sustainability.
Corporate social responsibilities are the policies and practices that the organization incorporates to leave a positive impact on the world. These are ethically oriented practices that reflect responsibility & commitment to the well being of society.
Companies must combine environmental sustainability & social responsibility in their business model to create something that is not only profitable for them in monetary term, but also profitable for people, society & the environment at the same time. Even consumers today want to partner or build a transactional relationships with organization that are green in nature. They think that their actions make a difference, in other word, they feel that when green companies are prioritized over others, they are not only taking the initiative to protect the environments, but also putting pressure on other organization to do the same.
Green Business Model
As the name suggest, it refer to new, innovative & green ways of running a business that is not only suitable for the current generations, but also creates a sustainable environment for generations to come. To incorporate a green business models, companies adhere to certain practices that are beneficial to the environment around them. Some basic ways in which companies could frame their policies in the context of the green business model are :-
- Recycling of your used product & material,
- Replacement of unwanted or toxic element,
- Reduce the ecological footprint,
- Focusing more on environmental values than economic benefit,
- Using renewable energies, (green marketing)
- Adhering to Corporate Socials Responsibility,
- Reduction of expenses in plastic containers, transports & use of energy and water.
Benefits of Associating Brands with Ecology
There are many monetary & psychological benefit to the green business models. The point mentioned below are some reason to incorporate businesses with a green marketing frameworks :-
- Companies have the opportunity to take positive actions regarding the environments.
- The company consider itself a progressive & revolutionary brand.
- They become more reliable in the markets in a short times.
- They tend to appeal to the customer segments that is green & very concerned about protecting and preserving the natural environments. These customers are willing to spend more to be ethical with society.
- Associating business model with green aspects is an amazing way to differentiate a particulars business from competitor in the markets.
- The brand always stay on top of the markets, as organic product are in high demand today. Ultimately, this benefit the rapidly growing organization.
For example, there are many leading shampoo brand like Sunsilk, Clinic Plus, Head & Shoulders, etc. available in the market, but the ones that have just entered the business like WoW, Mamaearth & Khadi have been proclaimed as a brand. much more reliable than the previous one by the same customer despite being expensive & has experienced rapid growth in a couple of year. This is unique because they have focused on delivering organic material.
Green Marketing Strategy
A marketing strategy is a plan that resembles an organization’s vision and goal and is reviewed annually. While the green marketing strategy plan focuses on developing a market plan that only maximizes profits for companies and furthermore works with principles and policies that are sustainable for the environment.
There are a few key elements of a green marketing strategy:
- The business objective : To develop a green marketing strategy, the mission and vision of the organization must be aligned to plan things in the most appropriate way possible.
- The objective of the company : The objective of the company must be stated very clearly and it must cover the goals as well.
- Strategies and Plans : After the goals and objectives of a business are formulated, the next most important thing is strategy and planning. The strategy must be articulated in a way that represents how the business objective will be achieved and in what time period.
- For example, if a company is engaged in the manufacturing business, then it should focus on purchasing locally available resources rather than importing raw materials from abroad. This step will help the organization reduce its carbon footprint. Furthermore, planning refers to the specific means that would be used to achieve the strategies.
- Market : The market segment to be targeted should be predetermined. (green marketing)
- Target customers : The identification of potential customers or users is the most critical task. There are all kinds of customers in the market, people who are enthusiastic about the environment and would only buy green or organic products. While there are still a large number of people who do not care much about the environment and buy products that fit their budget or are considered cheap and better.
- Therefore, choosing the target audience is a critical task and should be formulated in a way that a company’s products and services not only serve one section of the customer, but are also beneficial to the other. (green marketing)
Globally, people are thinking about how to treat the world better & see pollutions as a serious threat to the ecosystems. People have become interested in purchasing green goods & services that have little or no impact on the environments, even if they cost a bit more, as a modest gesture to our mother earth. Sustainability is achieved through both consumption and conservations. Innovative & sustainable business method that not only benefit the current generations, but also create a sustainable environment for future generation.