Green Marketing, a very profitable marketing method
Of the many marketing strategies that are carried out by various companies, it turns out there is still a type of marketing that can be said to be able to attract attention. The marketing strategy is known as Green Marketing.
In short, Green Marketing is one type of marketing strategy in it involving nature. This understanding refers to the word “green” contained in it.
Well on this occasion, we will discuss the notion of Green Marketing, how to apply it, and several companies that have implemented the Green Marketing strategy.
What is Green Marketing?
Reporting from the Small Business Chron page, Green Marketing is one of the marketing processes in it scrambling in the environment. So, the marketing process must have the advantage of the environment or nature around it. That means, this marketing strategy is done by not damaging nature and the environment.
In addition, the product promoted by the Green Marketing method must be an environmentally friendly product. In the production process it cannot damage the environment.
Examples are products that are free of components that are poisonous for the environment, or products that can be recycled sera made from recycled materials. Or you can also be made to be used again.
In essence, Green Marketing has the purpose of maintaining natural sustainability. For this reason, products marketed using this strategy must also be environmentally friendly products.
Green Marketing and Sustainable Development
Generally, not all companies can implement Green Marketing strategies. This marketing process generally can only be done by companies that really want to carry out a sustainable development process. In addition, Green Marketing is also generally carried out by companies when they must be able to meet Corporate Social Responsibility or CSR.
But regardless of this, there are currently many organizations who loudly voice the Green Marketing marketing strategy. Why? Because the same as other marketing strategies, Green Marketing can also present great profits.
This method is claimed to be a sustainable business practice. There are a lot of positive sides that can be obtained from this marketing process. Green Marketing can make a product look more attractive in the eyes of customers, especially for those who have a high level of consciousness in the environment.
In addition, this method is also claimed to be able to save production costs and marketing costs.
Green Marketing is also widely used because it can reduce transportation costs, packaging, and energy use originating from the environment. By implementing this marketing strategy, it will automatically create a loyalty brand.
Green Marketing destination
John Grant said that the purpose of Green Marketing was divided into three main stages. First is Green, which aims to disseminate information that the company is a company that is very concerned in the environment.
The second is Greener, the aim is to commit the commercialization as the most important goal for the company, and also to achieve goals that have an impact on the environment. Finally, Greenest, the company’s management strives to change the consumer culture in the direction that is more concerned about the environment around it.
Green Marketing Constraints
In the process of applying the Green Marketing concept, there are several problems that are likely to occur. The following is an obstacle in applying Green Marketing as explained by Polonsky.
1. Companies that apply this concept must be convinced that the activities carried out do not mislead consumers and industries, and do not do customers in applicable rules or laws.
2. When the company modifies the product in accordance with the demand or perception of consumers, it turns out the product is no better than the product before because it has perception errors. For this reason, the company must have good knowledge, so it can take appropriate steps towards the environment.
3. Government regulations are made to provide opportunities for consumers to make better decisions, or to motivate them to be more responsible for the environment around it.
Should it invest in Green Marketing?
In some countries in the world, Green Marketing has now become a major requirement, such as in Canada, Australia, and India. In fact, 25% of Indians believe that this method is very important to maintain the sustainability of the earth in the future.
Then, is there anything else that this marketing method is worth to apply? The answer is there. By applying this method, indirectly a company will prioritize natural harmony. It can also be realized using energy and environmentally friendly building design.
In addition, there are several other reasons why companies must be able to invest in this method, namely:
1. The product will be more durable
A product through the Green Marketing process is generally able to hold longer than other products. This is due to the manufacturing process involving environmentally friendly materials. In addition, the product can also be recycled again.
This is what most distinguishes Green Marketing products with other products that might only be used once without being recycled.
The reason also made Nielsen Global Survey argue that many people are willing to pay more expensive for Green Marketing products. Based on the survey conducted at 30,000 people, 55% of them were willing to pay for more expensive Green Marketing products.
The reason is because even though they have to spend more money, but the product can last longer.
2. The costs incurred are less
As we have explained earlier, in carrying out this marketing strategy, companies must be able to ensure that the entire production process is carried out environmentally friendly, even in terms of using energy.
Environmentally friendly energy utilization is generally more efficient in a long period of time. For this reason, companies can cut their expenses slightly in terms of energy.
3. Change the mindset about the environment
The consumer is not the only party that must care about the entire effects of the environment. The Green Marketing method must also encourage every businessman or company to be able to utilize natural resources should, such as in terms of electricity and water consumption.
Indirectly, this method is able to change our thinking regarding the environment. Some examples are simply looking for renewable basic materials, finding ways to deliver products in a more fuel-efficient way, and use other alternative energy sources.
Effect of Green Marketing in Business
Generally, the concept of marketing Green Marketing is only carried out by companies that have high commitment. Especially the commitment related to sustainable development and social responsibility.
Today, many companies have tried to be able to apply more environmentally friendly businesses. For IT, they make products that are more attractive to consumers, while reducing packaging costs, water and electricity use, efficiency of transportation costs, and so on.
In addition, the company can actually get more profits by applying green marketing as high-level social responsibility. So, it is able to encourage their loyalty among consumers who are aware of their environment.
For those of you who want to apply the Green Marketing concept, you can consider the things below.
- 48% more consumers from America say they are certain or may change consumption habits in order to reduce their impact on the environment.
- Products that have sustainable attributes today increasingly increase sales share. Starting from 19.7% in 2014, then increased to 22.3% in 2017, and increased to 25 in 2021.
- 90% more Millennial generation claimed that they were willing to spend more money for products that have elements of environmentally friendly materials.
Application in Indonesian companies
For in our own country, there are currently many companies that apply the Green Marketing method. In fact, the Ministry of Industry also gave a green industry award for 69 companies in Indonesia.
Based on government assessment, the green industry is an industry that uses a variety of environmentally friendly chemicals and is capable of applying 4R (reduce, recycle, reuse and recovery) in each process of making its products.
In addition, the company also generally uses electricity and water that is much lower. And the other more important is the 69 companies able to minimize waste and use minimal technology of carbon.
The 69 companies are mostly a large Indonesian company, including the company Tirta Investama, Pupuk Kaltim, Unilever, Petrochemical Gresik, to Sinar Sosro.
Thus the full explanation of us about Green Marketing. So, we can conclude that Green Marketing is a marketing process in which it must have the advantage of the environment or nature around it. That means, this marketing strategy is done by not damaging nature and the environment.
This marketing strategy has many benefits for the company, one of which is the cost needed to make a product lower because it uses energy and environmentally friendly raw materials. So, the cost of expenses is less.
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