Environmental marketing studies. Environmental Marketing Functions

08.12.2023

Smirnova Elena Valerievna k.e. PhD, Deputy General Director of NP Transparent World, specialist in the field of marketing communications and greening of business

The challenge is not to make standard products green, but to make green products standard.
John Grant

What is “Environmental Marketing”: the company’s environmental policy? environmental responsibility of business? openness of the company and transparency of the production process? environmental advertising? In Russian literature devoted to interdisciplinary problems of ecology and economics, there is no generally accepted definition of environmental marketing. Some authors mean such areas of the company’s activities as environmental policy, environmental responsibility of business, openness of the company and transparency of the production process, environmental labeling. Other experts classify environmental marketing as an environmental management tool. A number of authors include in environmental marketing the formation of financial structures to support environmental actions, environmental audits, environmental insurance of companies’ actions, changes in reporting forms for manufacturers’ activities, new forms of advertising, the formation of new trading principles (for example, the sale of environmentally friendly products).

We would like to propose the following definition. Environmental marketing is the process of meeting consumer needs by promoting goods and services that cause minimal harm to the environment at all stages of the life cycle and are created using the minimum possible amount of natural (including energy) resources.

Environmental marketing emerged in the 90s as an extension of social and ethical marketing. According to the concept of social and ethical marketing, the objective of the organization should be to identify the needs, wants and interests of target markets and provide the desired satisfaction in more effective and more productive (than competitors) ways while maintaining or enhancing the well-being of the consumer and society as a whole. This concept arose as a result of the conflict between traditional marketing and environmental degradation, scarcity of natural resources, population growth, inflation and the negative state of the social services sector.

In the early 90s, issues of greening business were raised in connection with government decisions in the field of ecology and environmental management, public concern about the state of the environment, as well as the emergence and growing influence of non-governmental environmental organizations, various consumer associations, and public environmental assessment groups.

The development of environmental marketing has received a “new round” in connection with the growing motivation of citizens for environmentally friendly consumption, by which we mean a set of actions of an individual, a group of people and the population as a whole associated with the consumption of goods and services that cause the least harm to the environment at all stages of life cycle. At what point did this second shift towards green marketing occur? Technorati Charts examined the number of daily searches for "green marketing" on blogs and noted that the number of such searches doubled from 150 per day in 2006 to more than 300 in the second half of 2007. Web searches for "green marketing" also increased throughout 2007, according to Google Trends. Apparently, a significant number of marketers decided at this moment that this was the right time to make their brands more environmentally friendly and, as a result, in demand.

In fact, this is confirmed by the fact that in 2007-2008 there was a growth in environmentally friendly market sectors. For example, the market for consumption of FSC certified paper (Fig. 1). Global consumption of FSC-certified paper is projected to increase 7.3 times in 2012 (compared to 2007).

Rice. 1. Consumption of FSC-certified paper in the world, thousand tons/year

Green marketing or green positioning is no longer “aspirational” but is becoming the norm. This is confirmed by facts from both manufacturers and consumers.

Environmental marketing: efforts of producers or demands of consumers?

If we correctly understand what the consumer wants, our market share and return on assets will take care of themselves.
Paul Allair

The market for environmentally friendly goods and services is worth 230 billion US dollars (of which 76 billion is a sustainable economy, 27 billion is a healthy lifestyle, 30 billion is alternative medicine, 10 billion is personal growth, 81 billion is an environmentally friendly lifestyle), and by 2015 year will increase to 845 billion. This is one of the fastest growing markets. In particular, in the USA, the demand for eco-buildings increases annually by 5-10%, and for ecotourism services - by 5%. The number of green products in the US increased from 100 in 2004 to 1,570 in 2009, and green food consumption is growing at a rate of 5.6% per year. 82% of US consumers purchase eco-friendly products.

What is the attitude towards environmentally friendly products in Russia? Unfortunately, there is very little such data. In this regard, a study conducted in 2008 in St. Petersburg deserves special attention, one of the objectives of which was to identify the peculiarities of city residents’ understanding of the term “environmentally friendly products.” For 48% of St. Petersburg residents, taking care of their health and caring for the environment is the most important factor that guides them when purchasing environmentally friendly products. Interestingly, in the 2006 survey, taking care of your health was identified as the most important factor (Figure 2).

Rice. 2. Analysis of the results of sociological surveys of residents of St. Petersburg conducted in 2005, 2006 and 2008. Question to respondents: “What would be more important for you when purchasing environmentally friendly products?”

73% of respondents are ready to buy environmentally friendly products that are 10% more expensive than untested products, while about 35% of respondents agreed with a price increase of 20%.

According to psychologists, people's inclination towards natural, natural and environmentally friendly goods/services is explained by the desire to better control their lives in a world that is becoming increasingly dynamic, unpredictable, stressful and man-made.

We see that the emergence of the market for environmentally friendly goods and services was influenced by consumer expectations. This is confirmed by a McKinsey study, according to the results of which the main drivers of corporate environmental responsibility are consumers and shareholders. In the first three months of 2008, shareholders of US corporations submitted 110 proposals on global warming, sustainable development and animal welfare - double the number two years earlier. As consumers demonstrate their commitment to green products/services and green companies, every company strives to align its business with their demands and expectations. 60% of Western companies have already integrated environmental projects into their overall development strategy. In Russia, environmental activities of corporations are in fourth place in terms of relevance (after support for education, healthcare and assistance to those in need).

Deep penetration of environmental marketing into every business is not always possible, but varying degrees of greening a product, service or company are always possible.

Why do companies want to be green?

All that matters is what touches the buyer.
Edgar Woolart

As we showed above, environmental marketing is a response to consumer expectations. The main reasons for greening business are creating a positive image in the eyes of consumers, shareholders and investors, as well as saving material and energy resources. 54% of top managers named the opportunity to build a positive corporate reputation as the main incentive for environmental projects. Environmentally oriented changes to the production process are typically achieved by reducing material and energy consumption per unit of output and are accompanied by cost savings.

The ability to effectively solve environmental problems affects not only the trust of the company's consumers, but also their loyalty. For example, the world's largest retail chain, Wal-Mart, which positions itself as a “green company,” is faced with the fact that customers do not consider its actions environmentally friendly. Consumers are not willing to buy products from Wal-Mart stores that are marketed as environmentally friendly because they believe they are not.

What are companies doing to become more environmentally friendly?

Even if you are on the right road, you will be overtaken if you are just sitting on it.
William Penny Eder Rogers

John Grant, in his famous work “The Green Marketing Manifesto,” built a model for the transition to “true” green business.

Eco-friendly (level one): a set of new standards. The implementation of this level occurs through communications.
Greener (level two): shared responsibility. Implemented through cooperation.
Greenest (third, highest level): support for innovation. Implies changes in culture.

The main idea is to move from purely commercial reasons for the existence of a business to environmental and social goals. This happens gradually: from basic compliance through proactive actions to innovation and transformation.

Ways to develop environmental responsibility in business include, in particular, environmental policy and environmental labeling.

Environmental policy (environmental protection policy) is a statement of an enterprise or organization about its intentions and principles related to the overall environmental performance of its activities, which serves as the basis for both actions and the establishment of target and planned environmental indicators. Some companies issue an annual environmental report, conduct excursions, press conferences for interested individuals and organizations, and also publish booklets that reflect the company's environmental policy and actions for its implementation.

The company receives the following economic benefits from the implementation of environmental policy:

It should be noted that according to the results of a survey conducted by the McKinsey agency in 2007, among the factors that have the greatest impact on the company’s shareholder value in the next five years, 48% of business respondents put environmental problems, including climate change, in first place. In second place is the influence of political forces (25%), in third is the social security of employees (24%).

Environmental labeling is a set of environmental information about a product, process or service, which is part of their labeling and (or) accompanying documentation. Eco-labeling serves as a tool for informing about the environmental characteristics of products and the processes of their development, production and use. An eco-label is a sign of environmental friendliness, not a sign of quality or safety, although these aspects are also taken into account. When developing sustainability criteria, in close cooperation with all stakeholders, the entire life cycle of the product is taken into account, i.e. these criteria are comprehensive and not limited only to the characteristics of the product itself. Eco-labels are a means for businesses to promote environmentally friendly products on the market.

However, sometimes the true desire for greening is countered only by the demonstration of environmental activity in words, and not in deeds. This practice - environmentally friendly positioning of a company or product/service without a sufficient basis for this - is called "Greenwashing" (from the English. Green-washing, literally - "green laundering"). Society has a negative attitude towards this process. Thus, the majority of Americans believe that environmental advertising is nothing more than a marketing ploy.

According to experts, greenwashing is still rare in Russia. If in other countries it is, as a rule, used to “whiten” reputations, then in Russia it is used to “denigrate” competitors. Thus, in 2001, the “Ecological Movement of Central Russia” arose in Central Russia, the sole purpose of which was to protest against the construction of an oil refinery in Orel by the Severnaya Neft company. The movement stopped being active after the purchase of Severnaya Neft by Rosneft. Among the well-known examples: greenwashing is used by sellers of country real estate, calling for the purchase of a cottage “in a protected area.” However, construction in specially protected natural areas is impossible

Environmental Marketing (green marketing, ecological marketing) is the satisfaction of the needs of a community focused on environmental conservation and reasonable use of resources for environmentally friendly goods and services. Environmental marketing is the marketing of environmentally friendly products and services.

Purpose of environmental marketing– become part of an environmentally oriented community. Environmental marketing allows you to think through and develop the structure of a business survival system in the conditions of the market’s total desire to create an environmentally friendly living environment.

The environmental marketing challenge– promotion of goods and services among consumers, partners and contractors focused on environmentally friendly consumption, preserving the ecology of the environment and professing an environmentally friendly lifestyle and business.

If marketing satisfies the needs of the market, then environmental marketing satisfies the needs of the market community, focused on maintaining and improving the environment. Companies implementing the concept of environmental marketing promote the environmental friendliness of their goods and services, a business philosophy that causes minimal harm to nature during the production, sale, consumption, processing and further disposal of goods.

Environmental marketing (green marketing) implies popularization of not just goods or services, but also the company’s views on the extraction of natural resources, their conservation, environmental friendliness of all stages of product production, conservation of nature when delivering goods and services to the consumer, use of goods and disposal of waste in ways that are safe for the biosphere.

Green Marketing Emerges as a response to the requests of the entire market and consumers in particular, when one of the main criteria for choosing a product, service, or partnership is similar views of the supplier, partner, or counterparty on the environment.

Methods for implementing the concept of environmental marketing:

development and implementation of legislative norms prescribing certain standards for the use of natural resources;
environmental PR, ensuring the openness of the company, creating a positive image in the eyes of consumers, shareholders and investors;
ensuring consumer loyalty - the ability to effectively solve environmental problems affects not only the trust of the company's consumers, but also their loyalty;
development of new waste-free and safe technologies that will use less harmful chemical compounds, production methods, etc.;
development of environmentally friendly products and services;
creating sustainable and effective feedback with consumers of environmentally friendly products;
support for innovation, implied in changes in motivation, behavior and consumption culture, creating a community interested in new environmentally friendly goods and services.

The concept of environmental marketing is an integral part of the concept of social and ethical marketing. According to the concept of social and ethical marketing, the company's task is to identify the needs and interests of target markets and provide the desired satisfaction in ways more effective than those of the competitor, while certainly maintaining or strengthening the well-being of both consumers and society as a whole. The introduction of environmental marketing provides an organization with a tool with which it can more effectively and efficiently conduct its market activities in the context of a general struggle for the environment, manage the totality of its sources and environmental impact factors, and also bring its activities into compliance with a variety of environmental requirements market.

The concept of environmental marketing was first used American Marketing Association (AMA), in the not so distant year of 1975. And later this concept was used in their book (Henion K., Kinnear T. “Ecological Marketing.” American Marketing Association, 1976).

Green marketing is a relatively new concept. A large number of synonyms are used for this concept: “green marketing”, “eco-marketing”, sustainable marketing, “ecological marketing”. As for the terms used in marketing literature to define the same topic, the concepts vary from one researcher to another and from one period to another.

Henion and Kinnear used Environmental Marketing (Henion K., Kinnear Th., 1976, The ecological Marketing, Columbus, Ohio, American Marketing Association, pp. 248-312)
D. Fuller used “Sustainable Marketing” to describe this concept (Fuller D., 1999, Sustainable Marketing. Managerial ecological Issues, Sage Publications, California, pp. 116-154)
P. Khaykin used the term “Ecological trade” (Hawken P., 1993, The ecology of Commerce,: A Declaration of Sustainability, New York, Harper Collin) and (Hawken P., 1994, The ecology of Commerce, Harpercollins, ISBN: 0061252794, pp. 120-194)
D. Pop used “Ecomarketing” (Pop D., 2009, Ecomarketing, De la provocare la necessitate, Editura Universităţii din Oradea, pp. 105-181)
K. Peattie used “Green Marketing” (PeattieK., 1992, Green Marketing, Longman Group UKLtd., pp.43-91)

In the West, instead of the concept " environmental marketing"the concept is increasingly used" green marketing"

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Environmental Marketing- the process of meeting the needs of consumers by promoting goods and services that cause minimal harm to the environment at all stages of the life cycle and are created using the minimum possible amount of natural (including energy) resources.

Typically, the concept of environmental marketing means that a company promoting its goods or services causes minimal harm to the environment during the production, sale and further disposal of the product. The latter implies its final placement in its original or processed form in the environment. Thus, environmental marketing at an enterprise means that the extraction of natural resources, further stages of product production, delivery to the consumer, use of the product and waste disposal are absolutely safe for the biosphere.

Thanks to the growth of consumer wealth and the significant influence of advertising, people are purchasing more and more goods that they, in principle, could do without. This significantly worsens the environment, since more raw materials are used for production, and cheap manufacturing technologies cause significant harm. At the same time, the problem of waste disposal reaches unimaginable proportions. A vicious circle arises: the deteriorating quality of the environment reduces the material well-being of people, they strive to buy cheaper goods - and everything repeats itself again. This is why environmental marketing is in high demand right now.

Many managers of large companies have realized that they will incur huge losses if they do not begin to solve environmental problems, so environmental marketing strategies for enterprises are being developed in all countries of the world.

Environmental marketing emerged in the 1990s. as a continuation of social and ethical marketing that emerged in the early 1980s. According to the concept of social and ethical marketing, the objective of the organization should be to identify the needs, wants and interests of target markets and provide the desired satisfaction in more effective and more productive (than competitors) ways while maintaining or enhancing the well-being of the consumer and society as a whole. This concept arose as a result of the conflict of traditional marketing with the deterioration of the quality of the environment, the lack of natural resources, population growth, inflation and the negative state of the social services sector observed today.

In the early 1990s. issues of greening business were raised in connection with government decisions in the field of ecology and environmental management, public concern about the state of the environment, as well as the emergence and growing influence of non-governmental environmental organizations, various consumer associations, and public environmental assessment groups.

The development of environmental marketing has received a “new round” due to the growing motivation of citizens for environmentally friendly consumption. Technorati Charts examined the number of daily searches for “green marketing” on blogs and noted that the number of such searches doubled from 150 per day in 2006 to more than 300 in the second half of 2007. According to “ Google Trends” web searches for “green marketing” also increased throughout 2007. Apparently, a significant number of marketers decided at this point that this was the right time to make their brands more environmentally friendly and, as a result, in demand.

In fact, this is confirmed by the fact that in 2007-2008. There is a growth in environmentally friendly market sectors. For example, the market for consumption of FSC certified paper. According to forecasts, in 2012 the total consumption of FSC-certified paper in the world will increase by 7.3 times (compared to 2007).

Basic reasons for greening business- creating a positive image in the eyes of consumers, shareholders and investors, as well as saving material and energy resources. 54% of top managers named the opportunity to build a positive corporate reputation as the main incentive for environmental projects. Environmentally oriented changes in the production process are typically achieved by reducing material and energy consumption per unit of production and are accompanied by cost savings.

The ability to effectively solve environmental problems affects not only the trust of the company's consumers, but also their loyalty. For example, the world's largest retail chain, Wal-Mart, which positions itself as a “green company,” is faced with the fact that customers do not consider its actions environmentally friendly. Consumers are not willing to buy products [at Wal-Mart stores] that are marketed as environmentally friendly because they believe they are not.

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