In 2022, we are living in an Era of Climate Change. It is a well-known fact that people are now becoming more concerned about environmental issues. The awareness of sustaining the environment has risen to a global level. Human beings all around the globe are thinking of being kinder to the planet and considers pollution of all type (air pollution, plastic waste, global warming, food waste, etc.) as a major threat to the environment around us.
In a small initiative towards our mother planet, people have been showing interest in buying products or engaging in purchasing services that are eco-friendly and have less or no impact on the environment, even if that product or service would cost them a little more. For example, people are more comfortable paying high prices for organic cosmetics than the ones that are cheap but processed chemically. On a similar note, organic products, or services that have negligible impact on the environment tend to experience high demand from their customers or users.
Catching on to the trend, organizations have started utilizing sustainable approaches to their business models and aim to contribute to societal goals through Corporate social responsibility because these factors determine the future of their organization.
Green Marketing Strategies
Importance of Sustainability and Corporate Social Responsibility for Businesses Worldwide
The world has arrived at a point where the climate is a matter of concern and needs to be dealt with seriously. The heatwaves around the globe and scarce natural resources are already the signs of it getting worse day by day even after prolonged healthy ways of sustainability. This proves that we need to do even more of what is already being done. We must accept the fact that we caused the climate crisis and need to incorporate a changed, rather much more productive business model to be a thrust for good in the world.
Sustainability is utilizing resources in a way that not only fulfills the needs of the present generations but is also sufficient for the coming generations and thereafter. Utilization along with preservation is the key to gaining sustainability.
Corporate social responsibilities are the policies and practices incorporated by the organization to leave a positive impact on the world. These are ethically oriented practices that reflect accountability and commitment to the well-being of society.
Businesses need to combine environmental sustainability as well as their social responsibility in their business models to create something that is not only beneficial for them in monetary terms yet additionally profitable for the people, society, and the surrounding at the same time. Even consumers nowadays want to associate themselves or build a transactional relationship with organizations that are eco-friendly in nature. They think that their actions make a difference, in other words, they feel when eco-friendly companies are prioritized over others, they are not only taking the initiative to protect the environment themselves but also pushing other organizations in doing the same.
Green Business Model
As the name suggests, it refers to new, innovative, and eco-friendly ways of leading a business that is not only suitable for the present generation yet additionally builds a sustainable environment for the coming generations as well. To incorporate a green business model, companies adhere to certain practices that are fruitful for the environment around them. A few basic ways in which companies could frame their policies in the context of the green business model are:
- Recycling of their products and materials used,
- Substitution of unwanted or toxic elements,
- Reducing the ecological footprint,
- Focusing more on environmental values than on economic benefits,
- Utilizing renewable energies,
- Adhering to Corporate Social Responsibility,
- Reducing expenses on plastic packaging, transportation, and energy and water usage.
Benefits of Associating Brands with Ecology
There are a lot of monetary as well as psychological benefits to the green business model. The below-mentioned points are a few reasons for incorporating businesses with an ecological marketing framework:
- Businesses get an opportunity to take positive action concerning the environment.
- The business is regarded as a progressive and revolutionary brand
- They become more trustworthy in the market in no time
- They tend to attract the section of customers that are eco-friendly and are highly concerned with protecting and preserving the natural environment. These customers have a willingness to spend more to be ethical towards society.
- Associating business models with ecological aspects is an amazing way to differentiate a particular business from competitors in the market.
- The brand always stays on top in the market, as organic products nowadays have a high demand. This ultimately benefits the organization in rapid growth.
For example, there are a lot of leading shampoo brands such as Sunsilk, Clinic Plus, Head & Shoulders, etc., available in the market, but the ones that have just entered the business, like WoW, Mamaearth, and Khadi have been proclaimed as a much trustworthy brand than the former by the same customers despite being costly and have encountered a rapid growth within a couple of years. This is sole because they have focused on delivering organic materials.
Green Marketing Strategy and Its 4 P’s
A marketing strategy is a plan that resembles the vision and goal of an organization and is reviewed on an annual basis. Whereas the green marketing strategy plan focuses on developing a market plan that only maximizes the profits for businesses yet additionally works with principles and policies that are sustainable for the environment.
There are a few key elements of a green marketing strategy:
- The goal of the business: To develop a green marketing strategy, the mission and vision of the organization should be lined up to plan out things in the most appropriate way possible.
- The objective of the business: The objective of the business ought to be stated very clearly and should cover the goals as well.
- Strategies and Plannings: After the goals and objectives of a business are formulated, the most important that comes is the strategies and planning. The strategy must be articulated in a way that depicts how the objective of the business will be achieved and in what period of time.
- For example, if a company is indulged in the manufacturing business, then it should focus on buying locally available resources instead of importing raw materials from outside. This step will help the organization in reducing its carbon footprint. Furthermore, planning refers to specific means that would be utilized to accomplish the strategies.
- Market: The market segment that will be targeted needs to be predetermined.
- Target customers: Identifying potential customers or users is the most critical task. There are all sorts of customers in the market, people who are enthusiasts about the environment and would only purchase products that are eco-friendly or organic. Whereas there are still a large number of people who are not concerned much about the environment and buy products that suit their budget or are considered cheap and best.
- Therefore, choosing the targeted audience is a critical task and needs to be formulated in a way that the products and services of a business not only serve one section of the customer but are beneficial for the other as well.
Furthermore, the 4 P’s had to be incorporated into the above business plan to lead and gain maximum trust and profit from the market. Developing the strategies around these areas enhances the brand value, sales of the product and services, and profitability. They are:
- Green Product: Companies nowadays are focusing on developing greener products that are eco-friendly and use recycled scraps to manufacture new products to lessen their need for new raw materials. For example, Nike manufactures most of its shoes by recycling scrap and plastic bottles from waste. This step not only reduces landfill waste but also helps them in cutting manufacturing costs while decreasing their dependence on new materials.
- Green Price: It is a well-known fact that green products are costlier than non-green products which only attracts only a few segments of society that are extremely concerned about the environment and are willing to pay more. So, this aspect needs to be worked on a little so that the pricing of greener products and conventional ones do not have a difference in pricing.
- Green Place: Companies ought to choose a place that minimizes the customers' as well as the manufacturers' efforts in purchasing or selling the product. E-commerce websites are quite eco-friendly in this aspect as it cuts down the transportation of goods and services.
- Green Promotion: While selling a product in the market, companies donate a portion of their profits to charities that are doing good for the environment. They have long-term environmental goals, such as 50% less carbon footprint by 2025, creative ways to save power, no plastic usage, and planting a tree for every item sold. These measures help them in bringing practices that ultimately promote them as an advocate of the environment.
Globally, people are thinking about how to treat the world better and see pollution as a serious threat to the ecosystem. People have been interested in acquiring eco-friendly goods and services that have little to no impact on the environment, even if they cost a little more, as a modest gesture to our mother earth. Sustainability is achieved through both consumption and preservation. Innovative, sustainable business methods that not only benefit the current generation but also create a sustainable environment for future generations.