1.1 Definition and evolution of green marketing

Green marketing promotes eco-friendly products and services, integrating environmental concerns into business practices. It encompasses sustainable product development, green packaging, pricing strategies, responsible distribution, and transparent communication about sustainability efforts.

The concept has evolved since the 1960s, driven by growing environmental awareness, regulations, consumer demand, and technological advancements. Green marketing differs from traditional approaches in product development, pricing, promotion, distribution, target audience, and performance metrics.

Understanding Green Marketing

Definition of green marketing

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• Green marketing promotes environmentally preferable products and services incorporating ecological concerns into marketing practices
• Key components encompass sustainable product development, eco-friendly packaging (recycled materials), green pricing strategies (premium for eco-friendly options), environmentally responsible distribution (reduced carbon footprint), and transparent ethical communication (clear sustainability claims)

Historical development of green marketing

• 1960s and 1970s witnessed emergence of environmental consciousness sparked by Rachel Carson's "Silent Spring" raising awareness about pesticide impacts
• 1980s introduced eco-labels (Energy Star) and corporate social responsibility initiatives gained traction
• 1990s marked by Earth Summit in Rio de Janeiro (1992) increased consumer awareness and demand for green products (organic food)
• 2000s to present saw mainstreaming of green marketing integrating sustainability into business strategies (circular economy models)

Factors influencing green marketing evolution

• Environmental degradation and climate change intensified urgency for sustainable practices
• Government regulations and policies (carbon taxes) shaped corporate behavior
• Consumer awareness and demand drove market shifts towards eco-friendly options
• Technological advancements in renewable energy and recycling technologies expanded green possibilities
• Corporate sustainability initiatives became competitive advantages (zero waste programs)
• Media coverage of environmental issues heightened public concern
• NGO and activist pressures pushed for greater corporate accountability

Traditional vs green marketing approaches

• Product development: Traditional focuses on functionality and cost while green emphasizes sustainability and lifecycle analysis (cradle-to-cradle design)
• Pricing strategies: Traditional uses competitive pricing based on market demand green adopts value-based pricing considering environmental costs (internalizing externalities)
• Promotion and communication: Traditional highlights product benefits and features green showcases environmental impact and sustainability credentials (carbon footprint labels)
• Distribution channels: Traditional prioritizes efficiency and cost-effectiveness green focuses on reduced carbon footprint and sustainable logistics (local sourcing)
• Target audience: Traditional aims at mass market or specific demographic segments green targets environmentally conscious consumers and businesses (LOHAS segment)
• Performance metrics: Traditional measures sales and profit margins green evaluates triple bottom line economic social and environmental impact (GRI standards)