Green marketing can be defined as the marketing of products which are environmentally sound[24]. The notion of green marketing is a comparatively new one within general marketing thought, as it has chiefly grown in acceptance since the 1990s. Nonetheless, as a contemporary branch of marketing thought, it can be seen as one of the fastest growing areas of marketing principles.
The rationale for the devising and emergence of green marketing is thus:
- A higher quantity of persons willing and able to buy green products.
- Heightened awareness among consumers, concerning the potentially negative aspects of global climate change.
Green marketers thus target persons who are more environmentally conscious. The segmentation and market research processes of numerous firms denote that the target market for green products has grown widely in numerous years. Accordingly, green marketers are willing to supply what persons are willing and able to buy.
It can also be stated that green products are often more expensive than “non-green” products, due perhaps to higher production costs. Nevertheless, green consumers are typically willing to pay higher prices, as a means of doing their part to safeguard the environment of the planet Earth.
Some drawbacks of green marketing are thus:
- The ideal of “green washing”
- Disputes and contention surrounding the exact meaning of a green product
Green washing pertains to when a firm misleadingly produces a product, with ostensible green characteristics, which is not actually environmentally sound. In addition to evident ethical issues concerning deceit, such conduct can undermine an organisation’s drive to be deemed a “green” company. Accordingly, a firm must be sincere in its efforts to be environmentally sound, regarding its environmental practices and policies.
Moreover, the extent and nature of a green product can be a moot point. To some, a product must be wholly green to be viewed as green. To others, a product may only possess a reduction in environmentally harmful inputs to be worthy of being labelled green. Nonetheless, a firm can enhance its green marketing efforts if it persuades consumers that the purchase of green products can enhance environmental protection.
[edit] Buying behaviour
A marketing firm, in the course of its operations, must ascertain the nature of buying behaviour, if it is to market properly its product. In order to entice and persuade a consumer to buy a product, the psychological/behavioural process of how a given product is purchased.
Buying behaviour consists of two prime strands, namely being consumer (B2C) behaviour and organisational/industrial behavior(B2B).
[edit] B2C buying behaviour
This mode of behaviour concerns consumers, in the purchase of a given product. The B2C buying process is as thus [25]:
- Need/want recognition
- Information search
- Search for alternatives (to satisfy need/want)
- Purchase decision
- Post-purchase evaluation
As an example, if one pictures a pair of sneakers, the desire for a pair of sneakers would be followed by an information search on available types/brands. This may include perusing media outlets, but most commonly consists of information gathered from family and friends.
If the information search is insufficient, the consumer may search for alternative means to satisfy the need/want. In this case, this may be buying leather shoes, sandals, etc. The purchase decision is then made, in which the consumer actually buys the product.
Following this stage, a post-purchase evaluation is often conducted, comprising an appraisal of the value/utility brought by the purchase of the sneakers. If the value/utility is high, then a repeat purchase may be bought. This could then develop into consumer loyalty, for the firm producing the pair of sneakers.
[edit] B2B buying behaviour
B2B buying behaviour relates to organisational/industrial buying behaviour[26]. B2C and B2B behaviour are not exact, as similarities and differences exist. Some of the key differences are listed below:
- Consumer behaviour
- Low in monetary value
- Low in volume/mass
- Swift purchase
- Transaction marketing-based
- Single buying instances
- Number of consumer is higher
- Individual/market-based demand
- Organisational behaviour
- High in monetary value
- High in volume/mass
- Lengthy purchase process
- Relationship marketing-based
- Multiple buying instances
- Number of consumers is lesser
- Demand is consumer derived (in that firms purchase goods to ultimately meet consumer demand)
The organisational buying process is thush[27]:
- Problem recognition
- Need description
- Product specification
- Supplier search
- Proposal solicitation
- Supplier selection
- Order routine specification
- Supplier performance review
In a straight rebuy, the fourth, fifth and sixth stages are omitted. In a modified rebuy scenario, the fifth and sixth stages are precluded. In a new buy, all aforementioned stages are conducted.
[edit] The Decision Making Unit (DMU)
The DMU, in other terms, can be labelled as the Purchasing or Procurement departments of an organisation[28] Accordingly, it is responsible for the purchasing of organisational items and assets. The persons comprising a DMU are as thus:
- Gatekeepers
- Users
- Buyers
- Decision Makers
- Influencers
- Initiators
