MBA ASSIGNMENT

MBA Assignment: Green Marketing

Table of Contents

Introduction2

Green Marketing & Complementary concepts3

History of Green Marketing4

How Green Marketing Works6

Examples of Green Marketing8

Green Marketing-Sustainable Competitive Advantage9

Green Retailing- A Prime source of Competitive Advantage11

Conclusion15

MBA Assignment: Green Marketing

Critically evaluate the concept of green marketing with examples. How can green marketing be used to create sustainable competitive advantage?

Introduction

Green marketing, sometimes referred to as “environmental marketing” or “ecological marketing,” is a recent and emerging system of labeling and advertising for products and services that are promoted by claims of either a reduction or elimination of negative ecological impact.

A constituency of businesses and individual consumers subscribing to this trend is rapidly developing for motives both financial and of genuine environmental concern. Although the number of businesses that advertise their products and services as “green” has continued to grow, this marketplace transformation has been delayed by a lack of clarity in what constitutes being green. Although corporate interests often remain hesitant to expose themselves to the financial liabilities of civil or regulatory reprimand as a result of perceived embellishment, the individual consumer often regards advertised claims with mistrust. The phenomenon of green marketing oftentimes necessitates radical alterations in the way products function and are manufactured, packaged, and advertised. Those interested in green marketing must consider the conceptions and history of green marketing, specific types of green marketing, and regulations and consumer protections related to green marketing (Gronhoj ,2006).

Green Marketing & Complementary concepts

One major concept closely associated with green marketing involves the promotion of a service's or product's purported lack of ecological debasement despite evidence to the contrary. When an institution promoting such claims demonstrates blatant disregard for environmental concerns in another area of its commerce, this can inflict serious damage to a company's market share. These contradictions and fabrications are known as “green-washing.” Use of this terminology usually pertains to accusations of corporations defrauding the community, but the term has been applied to nongovernmental agencies (NGOs) and government agencies, as well as to politicians and individuals (D'Souza, 2007).

The allure, and analogous menace, of green wash is its potential to sway favorable opinions of regulators, investors, employees, competition, and the general public based on one's desire to engage in ecologically responsible behavior. Politicians might attempt to appeal to the green market within their constituencies by promoting themselves, their views, and their actions as environmentally sound. Similarly, government agencies tasked with enforcing or regulating environmental issues have an innate motive to rely on green wash, rather than confess inaction or inefficacy to taxpayers. A problematic, recurring, and oftentimes contentious issue within the greater discussion of green marketing on the whole is the demarcation or distinction between green marketing and green washing. Indeed, most legitimate action aimed at the reduction of negative environmental impact is motivated largely in part by profit incentives. In a system in which profit incentive is the main factor in determining which products, services, and businesses are successful and will continue to exist, it seems hypocritical for the public to demand that those products, services, and businesses ...