ECO-MARKETING AND ECO-LABELLING: DOES IT ENSURE ...
ECO-MARKETING AND ECO-LABELLING: DOES IT ENSURE ... ECO-MARKETING AND ECO-LABELLING: DOES IT ENSURE ...
D.Grundey 157 ISSN 1648 -4460 Besearching Customer Loyalty in Lithuania achieve sustainable broader objectives. If consumers are skeptical of its motives, this opportunistic sponsorship could actually backfire. The publicity generated could even make consumers more critical of the firm's other, less eco-friendly activities. Table 1. Ecological/green marketing activities at the three levels (with some business Targeting Ads mentioning green features are run in greenfocused media. Green design Green positioning Green pricing Green logistics Marketing waste Green promotion Green alliance examples) Tactical greening Quasi-strategic greening Strategic greening A firm switches from one raw material supplier to another with more ecofriendly processes. e.g. a mining company runs a Public Relations (PR) campaign to highlight its green aspects and practices. Cost savingsdue to existing energy-efficiency features are highlighted for a product. A firm changes to a more concentrated detergent, which A firm improves the efficiency of its manufacturing process, which lowers its waste output. An oil company runs a PR campaign to highlight its green practices in order to counter an oil spill getting bad press coverage. A company funds a competition (one-off basis) run by an environmental group to heighten community awareness on storm water quality issues. A firm develops a green brand in addition to its other brands. Life-cycle analysis is incorporated into the ecodesign process to minimize eco-harm. e.g. BP (British Petroleum) AMOCO redesigns its logo to a sun-based emblem to reflect its view to a hydrogen/solar-based future for the energy industry. e.g. a water company shifts its pricing policy from a flat monthly rate to a per-unitof-water-used basis. Packaging minimization is incorporated as part of a firm's manufacturing review process. e.g. TELSTRA (a phone company) has internal processes so that old telephone directories (waste) are collected and turned into cat litter products by other companies. A company sets a policy that realistic product cco-benefits should always be mentioned in promotional materials. A firm launches a new Strategic Business Unit (SBU) aimed at the green market. e.g FUJI XEROX develops its Green Wrap paper to be more eco-friendly from the ground up. e.g. the BODY SHOP pursues environmental and social change improvements and encourages its consumers to do so as well. A company rents its products rather than selling; consumers now pay only for use of the products. A reverse logistics system is put into place by FUJI XEROX to reprocess and remanufacture photocopiers. e.g. A Queensland sugarcane facility is rebuilt to be cogeneration-based, using sugar-cane waste to power the operation. As part of its philosophy, the BODY SHOP co-promotes one or more social/eco campaigns each year with in-shop and promotional materials. e.g. SOUTHCORP ( a wine A company invites a producer) forms a iong-tenii representative of an alliance with the Australian environmental group to join Conservation Foundation to help combat land-salinity its board of directors. issues. 1 The overriding implication is tliat the firm needs to ensure that green marketing activities arc integrated holistically, especially if ihcy are used in positioning or protnotional activities. That way it docs not overemphasize corporate actions, with unanticipated negative consequences. However, il is not necessary for the firm lo actively promote all green marketing activities. This may sccin to be ignoring opporlunilies from a strategic perspective, TlUKUXmiATlONS IN UUSlNliSS c~I-CONOMICJ, \'1. 8, No 1 (16), 2009
D.Grundey 158 ISSN 1648-4460. Researching Customer Loyalty in Lithuania but careful evaluation of overall corporate activities might identify that such opportunities are illusory-not all of them support the same environmental focus-and may help avoid potential problems. Table 1 presents a number of examples to illustrate how tactical, quasi-strategic, and strategic green marketing activities might be under-taken in each of the functional marketing areas. Tactical actions typically involve limited change and limited coordinaUon across multiple functions. Quasi-strategic actions normally require more substantive changes in marketing activities, as well as broad-based coordination among several non-marketing activities. Strategic greening requires a holistic approach, with all actions of the firm coordinated to integrate environmental issues across all functional areas (Gmndey, 2008b). The need for a holistic approach cannot be overemphasized, considering the frequent problems associated with nonintegrated green marketing. Hefty spent vast sums developing and marketing "biodegradable" garbage bags (a quasi-strategic action), but although the claims were technically tme, on closer inspection it was soon discovered that landfdl conditions would not allow decomposition to occur. The result was an extensive public backlash against this product and other Hefty products. Several states actually sued Hefty for misleading advertising. The problem was not that Hefty had "lied," but that it had exaggerated its claims. It had not considered the ftill impact of engaging in a quasi-strategic activity. Environmental changes alone, it seems, are not sufficient without effective implementation. 1.3. New 'Ecological' Consumer D. Castenow has observed the following evolution in a German consumers' approach to the natural environment in recent years (Castenow, 1993): • in the 1980s, a consumers' interest in ecological products, being launched into the German market, was rather moderate: an issue of environment-friendly products and packagings was important only for 41% of respondents. Now - for 74%); in mid-80s, 45% of reviewed German consumers seriously treated public reports conceming a harmfulness of products while now this kind of information is very important for 64%) of respondents. On the other hand, in recent years, various Parliamentary acts have been adopted for the environment protection in numerous HDCs. Thus, producers are being under an increasing pressure of a more and more restrictive ecological law. This, in turn, extracts a growing supply of environment-friendly products. So, an increasing demand and an increasing supply of ecological products meet each other in the market, and this is a healthy situation. However, a new, ecological buyer is a key actor on the stage (Grundcy, 2003). Therefore, a consumer education and protection is here so important. In Poland, unfortunately, the consumer movement is developed very little in comparison with Westem countries. There is practically only one such an organization, i.e. The Consumers' Federation, which tries to educate and protect Polish buyers. In the past, producers used to concentrate their marketing efforts mainly on a phase of a consumer's purchase. Firms tried to help him/her buy their products. Now, according to Kotler, a producer should also help the consumer use a purchased good and get rid of i' afterwards (Kotler, 1999, 2001). This principle fully applies to a manufacturcr/scUcr of industrial goods. Then he will achieve a market success. This is consistent exactly with the essence of a desired approach to the new, ecological consumer. The approach assumes that the producer takes responsibility in all the phases of tlic 71HN.f/OIWMT/ON,5'INliUSINl-SSe>P.CONOMia, Vol. 8,No 1 (16),2m
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D.Grundey 157 ISSN 1648 -4460<br />
Besearching Customer Loyalty in Lithuania<br />
achieve sustainable broader objectives. If consumers are skeptical of its motives, this<br />
opportunistic sponsorship could actually backfire. The publicity generated could even make<br />
consumers more critical of the firm's other, less eco-friendly activities.<br />
Table 1. Ecological/green marketing activities at the three levels (with some business<br />
Targeting Ads mentioning green<br />
features are run in greenfocused<br />
media.<br />
Green<br />
design<br />
Green<br />
positioning<br />
Green<br />
pricing<br />
Green<br />
logistics<br />
Marketing<br />
waste<br />
Green<br />
promotion<br />
Green<br />
alliance<br />
examples)<br />
Tactical greening Quasi-strategic greening Strategic greening<br />
A firm switches from one<br />
raw material supplier to<br />
another with more ecofriendly<br />
processes.<br />
e.g. a mining company runs a<br />
Public Relations (PR)<br />
campaign to highlight its<br />
green aspects and practices.<br />
Cost savingsdue to existing<br />
energy-efficiency features<br />
are highlighted for a product.<br />
A firm changes to a more<br />
concentrated detergent,<br />
which<br />
A firm improves the<br />
efficiency of its<br />
manufacturing process,<br />
which lowers its waste<br />
output.<br />
An oil company runs a PR<br />
campaign to highlight its<br />
green practices in order to<br />
counter an oil spill getting<br />
bad press coverage.<br />
A company funds a<br />
competition (one-off basis)<br />
run by an environmental<br />
group to heighten community<br />
awareness on storm water<br />
quality issues.<br />
A firm develops a green<br />
brand in addition to its other<br />
brands.<br />
Life-cycle analysis is<br />
incorporated into the ecodesign<br />
process to minimize<br />
eco-harm.<br />
e.g. BP (British Petroleum)<br />
AMOCO redesigns its logo<br />
to a sun-based emblem to<br />
reflect its view to a<br />
hydrogen/solar-based future<br />
for the energy industry.<br />
e.g. a water company shifts<br />
its pricing policy from a flat<br />
monthly rate to a per-unitof-water-used<br />
basis.<br />
Packaging minimization is<br />
incorporated as part of a<br />
firm's manufacturing review<br />
process.<br />
e.g. TELSTRA (a phone<br />
company) has internal<br />
processes so that old<br />
telephone directories (waste)<br />
are collected and turned into<br />
cat litter products by other<br />
companies.<br />
A company sets a policy that<br />
realistic product cco-benefits<br />
should always be mentioned<br />
in promotional materials.<br />
A firm launches a new<br />
Strategic Business Unit<br />
(SBU) aimed at the green<br />
market.<br />
e.g FUJI XEROX develops<br />
its Green Wrap paper to be<br />
more eco-friendly from the<br />
ground up.<br />
e.g. the BODY SHOP<br />
pursues environmental and<br />
social change improvements<br />
and encourages its<br />
consumers to do so as well.<br />
A company rents its<br />
products rather than selling;<br />
consumers now pay only for<br />
use of the products.<br />
A reverse logistics system is<br />
put into place by FUJI<br />
XEROX to reprocess and<br />
remanufacture photocopiers.<br />
e.g. A Queensland sugarcane<br />
facility is rebuilt to be<br />
cogeneration-based, using<br />
sugar-cane waste to power<br />
the operation.<br />
As part of its philosophy, the<br />
BODY SHOP co-promotes<br />
one or more social/eco<br />
campaigns each year with<br />
in-shop and promotional<br />
materials.<br />
e.g. SOUTHCORP ( a wine A company invites a<br />
producer) forms a iong-tenii representative of an<br />
alliance with the Australian environmental group to join<br />
Conservation Foundation to<br />
help combat land-salinity<br />
its board of directors.<br />
issues. 1<br />
The overriding implication is tliat the firm needs to ensure that green marketing<br />
activities arc integrated holistically, especially if ihcy are used in positioning or protnotional<br />
activities. That way it docs not overemphasize corporate actions, with unanticipated negative<br />
consequences. However, il is not necessary for the firm lo actively promote all green<br />
marketing activities. This may sccin to be ignoring opporlunilies from a strategic perspective,<br />
TlUKUXmiATlONS IN UUSlNliSS c~I-CONOMICJ, \'1. 8, No 1 (16), 2009
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