The Green Marketing - Case Study Example

Assignment ref: Green marketing Green Marketing I. Introduction There has been a significant change in the lives of human beingssince the days of industrial revolution, which brought about in its wake, accelerated use of natural resources for mass production. The technological advances of the 20th Century added fuel to the fire, by further promoting reckless consumption, even as environmentalists started to protest louder. In the face of this public concern for environment, industry resorted to smart advertising campaigns, called ‘green marketing’ that showed how the companies care for the environment, and how consumption helps in promoting conservation! The present essay is based on the book ‘Sign Wars: The cluttered landscape of advertising’ by Goldman and Papson (Goldman et al, 1996). It deals with the meaning and practice of green marketing, its concepts as developed by the advertising industry, its effectiveness both to genuinely care for the environmental concerns and to hoodwink the public etc. It deals with the ‘signs’ attached to the products with a view to promote sales, even as companies defend their record of environmental concerns. Relevant case studies are included to argue that green marketing has been more of a self-promotion gimmick than any real concern for responsible corporate behaviour. II. Green marketing 1 (a). Goldman and Papson, trace the evolution of advertising industry from 1920s, when the competitive market forces were compelling industries to entice consumers to buy their products. They point out that in order to sell more and more of the products, advertisers “…created a social world in which (a consumer’s) identity is expressed through consuming commodity signs” (Goldman, 1996, p.187). These commodity signs represented a “…social process of branding goods, that is, endowing goods with value and capacity to fulfill a variety of desires” (p.188). In this process, the advertisers used, “…nature as a referent system from which to derive signifiers for constructing signs” (p.191). “Commodities like cars and cigarettes are placed in the landscape settings labeled ‘natural’ and juxtaposed with natural objects” (p.192). By 1980s, advertising that started with nature as a referent system, progressed to ‘green marketing’ to position nature itself as the subject of the ad …(only) to hail the viewing subject” (p.192). Thus commodities are positioned as environmentally friendly, and corporations Green marketing 2 as caring and concerned citizens…” (p.193). 1 (b). Automation and mass production of the last century, led to severe competition. To compete, it was not enough for the industries to find customers. Rather, they had to create a desire in the minds of the consumers in the first place, and to sustain that desire by aggressive promotion of consumptive behaviour. Product variations, pricing, distribution channels are some of the product related methods of promotion; Communication of subtle and open psychological messages to influence consumer buying habits are the other means to manipulate the buyers. This has promoted the ‘use and throw’ culture on a large scale but at the same time invited strong criticism from environmentalists. Public perception of the issues involved has also increased. Industry and their advertising staff could not ignore these adverse reactions and the green marketing technique took roots, whereby the products are advertised to be ‘needed for social status or lifestyle’ and the corporations that produce them are ‘responsible and caring for nature’. 1 (c). Green marketing is thus an attempt to project an enterprise / its products / its services as having concern for preserving the environment. Green marketing is a method of promotion, which claims that industrial activities are designed to satisfy human needs with minimum impact on the natural environment. 2 (a). Having caught on to the idea of projecting an enterprise or its products and services to be environmental-friendly, the onus of putting this into practice rested with the managements. One witnesses systematically developed efforts, ranging from reducing consumption of raw materials and energy, to reuse / recycling. Indeed, many reputed firms changed their products: Auto industry’s increased fuel efficiency and reduced exhaust pollutants; McDonald’s replacement of clamshell packaging with waxed paper; Xerox’s introduction of recycled photocopier paper etc. But the concept of green marketing has more to do with the consumers’ perception of such efforts than the efforts per se. Thus, during the 1980s, marketing departments began to reinforce the idea of a ‘responsible enterprise’ and ‘eco-friendly products’, in visual and written communications through misleading advertising campaigns. Green marketing itself became a tool in the hands of the advertising agencies to promote sales, some genuine and some dubious! Green marketing 3 2 (b). Advertising itself is about a message and its effective communication, aimed to influence the buying decisions of a consumer. These messages are delivered in the background of an all pervasive environment of news and more news about style, life style, culture, attitude, etc. all of which show how the successful people are happily enjoying life, with the acquisition and consumption of all that is the best and the latest. Celebrities are thrown in for good measure as brand ambassadors to push sales. Their lifestyles turn us green with envy, and we have no alternative but to imitate them in our own limited way. We are subjected to a merry-go-round of commodity signs, and “we aspire to identify ourselves through our consumption of commodity signs” (Goldman et al, 1996, p.187). 2 (c). Green marketing has been accepted as an inevitable need in the light of growing environmental concern. In fact, companies such as Body Shop are making a virtue out of an opportunity to market green products (cosmetics), while many others are changing their operations, as noted in paragraph 2 (a) above. Other reputed firms like Coco-Cola and Walt Disney World do not advertise their considerable positive efforts. In contrast, there are many more firms, which pay only lip service to the environmental concerns while exploiting the concept of green marketing. Their (Esprit’s clothing) response has been, in the words of Goldman, “…to cloak a central contradiction: fashion and the status accrued by wearing it are based on principle of waste, or continuous conspicuous consumption.” (p.196/7). In other words, while there has been an impact of environmental concerns on product design (through genuine improvements), for most businesses, green marketing is just another slogan to exploit the gullible consumers. 3. To summarise so far, the need for continuously push products into competitive markets gave rise to unsustainable exploitation of natural resources. The increasing environmental degradation and the fast depleting natural resources, raised awareness of environmental issues and forced the corporate world to change practices so as to be in tune with the mood of the consumers. Since marketing and advertising is mostly about communications, this medium was exploited to inform the consumers about ‘responsible corporate actions’ as well as ‘eco-friendly Green marketing 4 nature of products’ being marketed. Inevitably, green marketing is at once a genuine effort as well as just glib talk. II. Case studies A review of the cases involving green marketing will help to understand the concept in more concrete terms. 1 (a). Xerox Corporation: Xerox has taken the responsibility to bring a line of products made from recycled parts. These are to be marketed as new products in a creative way. Its European operations include two types of product lines. Using recycled parts, it produces competitively priced machines, which satisfy Xerox’s high standards of quality and consumer acceptance. The same production line also manufactures the higher end brand new products that are more expensive and are same as those sold in the USA. Through its subsidiary, the Palo Alto Research Center, it is also focusing on clean and green technologies including paper-reduction ones. Xerox’s official website deals extensively about the corporation’s efforts by means of documents such as ‘Business guide to waste reduction and recycling’. 1 (b). Esprit Clothing: This fashion clothing company promoted its concern for environmental issues aggressively in the 1990s. Its catalogues proclaim that Esprit was concerned because, “…world economics based on exponential growth and expanding consumptive appetites cannot be sustained forever” (Goldman et al, p.195). Claiming that its catalogue itself was a product of recycled paper, Esprit informs the consuming public of its environmental credits. As noted earlier, these efforts simply camouflage the stark fact that publicity and advertisement itself was meant to promote a culture of discard the current product and buy the new offering – a culture of promoting premature obsolescence. Goldman calls it a process of creative destruction! The advertisement, which is a typical green marketing effort, attempts to instill an idea in the minds of the consumers that buying and wearing Esprit’s offerings is an act of responsible citizenship, to preserve and promote natural resources. The element of deceptive marketing is written all over its catalogues. Green marketing 5 1 (c). Toro Recycler Lawnmowers: Recycling is another buzzword that is being used extensively by the industry and Toro Recycling lawnmower is a typical example, according to Goldman (Goldman et al, p.197-198). Their promotional ad extols the customers thus: “…for more information visit your Toro dealer. Ask him about environmental issues and status of lawn debris legislation in your area….” Goldman points out the duplicity in this green marketing effort. On the one hand, it is encouraging dumping of the existing lawnmowers / purchasing of its own products, and on the other subtly instilling a sense of worry about the existing and impending ‘lawn debris’ legislation. Shorn of all the glib talk, the advertisement is nothing more than ‘green marketing’ of Toro’s new range of products that differ from the existing competitive ones. While it promises to recycle grass, it asks for junking the existing bagging type lawnmowers. 1 (d). McDonald Corporation: One of the most severely criticised of all businesses, McDonald aggressively advertises its responsible corporate behaviour. For example, on the 20th Earthday anniversary, its advertisements hailed that ‘McDonald spent $100 million to purchase recycled products and contributed its mite to preserve the earth!’ Goldman points out in a very telling manner that while the isolated figure of $100,000,000 spend on recycled products appear staggering to a casual consumer, it pales into insignificance when considered in the backdrop of McDonald’s advertisement budget of over $774 million, world wide sales of over $6 billion and system wide sales of over $ 17 billion (Goldman et al, 209) – all in the 20th Earthday anniversary year of 1989. 2. To summarise the typical cases listed, corporations have been under pressure to confirm to environmentally responsible behaviour. While responsible companies like Xerox are using this as an opportunity, others are exploit this threat by paying lip service to the issues on the one hand, and converting this threat into an opportunity for creating new ‘commodity signs’ in the minds of the consumers, with a view to sustain – not the environment, but sales and profits. Green marketing 6 III. Discussion Business houses were traditionally resorting to advertisement for promoting sales in the face of mass production and competition. Such promotions were initially product-centered. As competition grew, marketing function assumed a central role and advertising changed its complexion from one of ‘promoting products’ to ‘creating wants or desires’ in the minds of the consumers, and achieved great success. The result has been the growth of reckless ‘use and throw’ culture with inevitable consequences like degradation of environment and depletion of natural resources. Public awareness of this undesirable development has forced businesses to resort to ‘green marketing’ – to project to the consumers that their products are environment-friendly and that their policies are those of responsible citizens. It is thus seen that environmental concerns are very real and perceived to be important by all leaders and opinion makers. Legislation is being enacted, at national and international levels, to control and preserve the natural environment. Unfortunately, green marketing has itself become a tool in the hands of the business houses, whose efforts are being seen as superficial and self-serving. Published literature brings out this fact through case studies on a number of corporations of all sizes and sectors. Hence, by and large green marketing is self-serving and unethical. Conclusion Management books are replete with strategies for businesses. Awareness of these strategies is wide spread now, and with it, the means to convert any threat into an opportunity. Global environmental concerns and legislative efforts to protect the nature and ecology are at once a threat and an opportunity to tread new grounds in increasing sales and profits. If an honest businessman is an oxymoron, it can be said that green marketing, conceived by the same businessman has to be and is proving to be no different. References Goldman R & Papson S (1996), Sign Wars: The cluttered landscape of advertising, Guilford Press. Xerox Corporation, Available: http://www.xerox.com Read More