Marketing green official

Marketing green officialMarketing green official Marketing green official

PART A: GREEN MARKETING CONCEPT Definition of green marketing and sustainable development Today, the living environment on the earth is increasingly seriously reduced, the natural resources are gradually exhausted Humans have to face with soil, water and air pollution and suffer many natural disasters resulting from climate change Consumers begin to have more responsibilities toward the environment According to Banerjee (1999), Green marketing is defined as the implementation of marketing programs directing at the environmental market segment Meanwhile, according to Polonsky (1994), Green marketing is all activities that are created to facilitate all exchanges, to satisfy human needs or desires with minimal harm to the natural environment Polonsky's definition is considered to be more comprehensive than that of Banerjee Fuller (1999) also introduced the definition of green marketing as the process of planning, implementing and controlling the development, price, promotion and distribution of products that meet three criteria: customer satisfaction, the organization's goals are achieved, the implementation must be environmentally friendly According to the American Marketing Association, Green Marketing is the marketing of products that are considered safe to environment, including a range of activities such as product improvement, changes in manufacturing processes, packaging changes, as well as advertisement changes According to Rashad Yazdanifard (2011), Green Marketing is understood as promotion activities to change consumers' attitudes toward products that are environmentally beneficial and safe Regarding the relationship between Green Marketing and the sustainable development of businesses, according to the World Commission on Environment and Development (1987), sustainable development is the development that can meet current needs without affect and harm the ability to meet the needs of future generations This means that in order to achieve the goal of sustainable development, the enterprise must harmonize the economic benefits of the business and society and not affect the living environment Green Marketing activities based on the above approach will mainly direct consumers to use green products through the four basic elements of marketing: product, price, distribution, trade promotion Green marketing products are elements of products that consumers can access when considering buying Through the packaging of green products, consumers can perceive the environmental superiority of a product over similar products The price of green products normally more expensive than that of similar products due to the costs to maintain environmental friendliness However, this is a major factor affecting consumers' decision to buy products Green marketing tools Green Packaging: It is an approach towards product packaging that considers full environmental impact of the production and disposal of the packaging material A sustainable package will generate less waste than conventional packaging and will be manufactured from materials that use as much recyclables material as possible using least amount of energy The concept of being environmentally friendly or green will have an effect on all parts of business from the conception of products to the use of subsequent disposal of the product by customers (Prahalad& Hamel, 1994) Packaging can be considered ecological depending on the degree of environment pollution Eco-Labeling: Eco labels are symbols or marks given to a product on compliance to eco-friendly criteria laid down by government, association or standard certification bodies Morris et al (1995) have stated that specific product claims on product labels like “eco-friendly”, “recyclable”, “biodegradable” and “ozone friendly” used by marketers enabled companies to communicate the environmental benefits of products to their consumers Green Branding: Green brands are those that people can associate with environmental conversation and ecological/sustainable business practices Several studies demonstrate that growing environment awareness of consumers have encouraged them to be more inclined towards brands that seemed to be environmental friendly (Eagly and Kulesa, 1997) According to Pickett et al., (1995), if green brand attributed are not well communicated, environmentally sustainable products will not be commercially successful Similarly, other researchers have suggested that green positioning is an important element in the success of green branding strategies (Coddington, 1993) Green Advertising: It refers to a form of communication that highlights the environment friendly aspect of the product or organization It involves promotional activities centered on environmental aspects The objective of green advertisements is to influence consumer's purchase behavior by encouraging them to buy products that not harm the environment and to direct their attention to the positive consequences of their purchase behavior, for themselves as well as the environment (Rahbar& Wahid, 2011) Environmental advertisements help to form consumer values and translate these values into the purchase of green products (Baldwin, 1993) 3 Marketing mix in green marketing Today's environmental crisis is the most appropriate time to reassess the 4Ps (Product, Price, Promotion, and Place) of traditional marketing policy Green marketers need to receive information regarding these new issues and conduct a re-evaluation of the marketing-mix tool in a greener way 3.1 Green products strategy Green products, also known as eco-friendly products or environmentally conscious products, are understood to be products designed to reduce the impact on the environmental factor throughout their life cycle That reduction is reflected in many aspects such as reducing the use of non-renewable or toxic materials and increasing the use of renewable resources (Robert, 1995) Ottman (1998) asserted that green products are more durable and less toxic because they are made from easily recyclable materials A green product strategy usually includes activities such as recycling and reusing; or reducing fabricated materials, reducing packaging materials, increasing product durability in utilization and distribution process (Kinoti, 2011) To accomplish the goal of green marketing, a product strategy can be: The first is Repair: extend the life of a product by repairing its parts Businesses restrict consumers' disposal of products, but instead collect them to repair and improve their quality This requires an effective and active after-sales department at companies The second is remodeling: extend the life of a product by changing the majority of parts Similar to product repair, this strategy will remodel most parts and components of the product For two strategies: repair and remodel, engineering, electronics will probably be applied more And currently is still applied by the companies in the form of warranty The third is reproduction: production of new products based on old products Products produced by this re-manufacture must use less raw materials, saving costs while reducing the amount of waste released into the environment The fourth is reuse: Design products that can be used repeatedly This product policy is being appreciated Because customers or consumers will directly feel the value of the product they buy The fifth is recycling: Old, broken products can be recycled and converted into materials used in the same product, or other products of the same company The end, product is a product that uses less material or produces less waste than the previous version of that same product or a competitor's same-type product 3.2 Green price strategy Green prices are defined as the prices set for green products that can offset consumers' price sensitivity, making them willing to pay more for the green properties of products (Grove and his partners, 1996) This extra charge is absolutely necessary when Peattie and Crane realized that the production of green products requires the use of materials and production methods that costs more than traditional products, as well as the increase of incurring of environmental taxes 3.3 Green promotion strategy Davari and Strutton said that promotion is evaluated to be the most important tool of a mixed green marketing policy Green promotion tools are often used to convey messages to encourage customers to become "greener" A green promotion policy needs to meet one or more of the following three criterias: (1) that policy directly or implicitly mentions and/ or enhances the relationship between products and biophysical environment; (2) agree with green lifestyle with mention of or not a prominent product / service; (3) represent, enhance, or maintain the image of the business in accordance with environmental responsibility (Banerjee, Gulas, & Iyer, 1995) 3.4 Green distribution strategy Green distribution refers to management tactics related to the distribution of green goods, from production to consumption and reverse logistics In fact, there are very few users trying to find a product for a greener goal Therefore, how and where green products are available are the key for a business to survive Consumers must be constantly exposed to green products throughout the market area Businesses and green marketing According to the World Bank, the increase of agriculture productivity contributes to ecological imbalance limitation but poor management of chemical use also pollutes water resources and degrades soil fertility The OECD points out that the costs and consequences of disrupting ecological balance and environmental pollution are enormous, both in terms of people and the social economy of the world Since the 1970s, a green revolution has been launched around the world In 1992, the Rio International Conference also developed the 21st Agenda among the participants on environmental issues However, this will also be ineffective when businesses have not realized their role in protecting the environment Environmental issues are very urgent for every country, every person in the whole society Natural resources are gradually exhausted Future generations may find themselves significantly disadvantaged in terms of benefits from natural resources To solve this problem, first of all we should start from the economic issues and find out the study about the use of limited resources of nature to try to meet the infinite desire of human The importance of business strategies is to ensure solutions to environmental issues and to create sustainable development Therefore, it can be said that green marketing is one of the optimal solutions for businesses and economic organizations when operating in the limited natural environment today Green marketing is the effort of organizations that use scarce resources to satisfy the needs of their customers, both individual and institutional customers, as well as achieve their lucrative goals Benefits of green marketing With a range of activities, such as changing product design, production processes, packaging, advertising to meet the "green needs" of consumers and society, green marketing brings many benefits for the business Firstly, bring new opportunities for businesses: Green living, green consumption, using environmentally friendly products are gradually popularized and are expected to become a trend, a new movement in the near future In 1992, a study in 16 countries showed that more than 50% of consumers in each country were concerned about environmental issues (Ottman 1993) In 1994, a study in Australia showed that 84.4% of consumers believed that they should be responsible for the natural environment Another study showed similar results, 80% of customers committed to changing consumption habits that adversely affect the environment Thus, if enterprises have marketing activities with interest to environment, they will gain sustainable competitive advantages than those ones not care about the environment In addition, many companies begin to realize that they are members of a large community, so they need to be environmentally responsible This means that achieving environmental goals is just as important as maximizing profits and environmental issues are increasingly integrated with the corporate culture Secondly, increasing the ability to implement government regulations: With the desire to develop more sustainably in the future, the government always wants to protect consumers and society's rights through the promulgation of regulations on controlling the amout of waste to the environment And, green marketing is one of the tools that can help businesses best meet these regulations by reducing the harmful products to consumers, adjusting consumer behavior related to harmful products, increasing awareness to ensure that all consumers have the ability to protect themselves against harmful products Thirdly, help enterprises reduce operating costs: Some enterprises say that discharging toxic substances into the environment can save costs, while green marketing efforts will increase costs, but if considering in the long term, it is not true Finding solutions to recycle used products not only develops efficient production systems, but also reduces the source of raw materials This creates a "double" impact, helping businesses save costs in recycling and minimize the demand for raw materials Therefore, many enterprises are now looking for a green marketing solution for the entire production system, instead of just minimizing the amount of waste discharged into the environment PART B: THEORY OF MARKETING IN FASHION MARKETING Definition fashion marketing To understand the fashion marketing definition, we must first understand each definition as follows First of all, what is fashion? Encyclopedia of Vietnam - Wikipedia defines "fashion is a concept applied to a person who usually wears the popular outfits at some point of time" (Wikipedia, 2015) Fashion concepts are often understood in a positive meaning, used to describe beauty, glamor and style Sometimes this definition also has negative connotations as to describe a short term trend or fad Or Mike Easey – the author of the book Fashion Marketing, gave the most general understanding and definitions about fashion “Fashion essentially involves change, defined as a succession of shortterm trends or fads…Fashion marketers should take a broad view of their domain – fashion is not only about clothes” (Mike Easey, Fashion Marketing, 2009) Legendary fashion designer, the owner of the fashion empire - CoCo Chanel defined “Fashion is not something that exists in dresses only Fashion is in the sky, in the street, fashion has to with ideas, the way we live, what is happening” With the above general definitions of fashion, fashion marketing can be defined as follows: “Fashion marketing is the application of a range of techniques and a business philosophy whose center is customers and potential customers ” (Mike Easey, Fashion Marketing, 2009) (Mike Easey, Fashion Marketing, 2009) With fashion characteristics that change according to seasons, tastes and trends from the pioneers, the life cycle of fashion products is often quite short Therefore, the marketing strategy accordingly changes and needs flexibility While other industries can use a similar marketing strategy in many years helping create long-term relationships with their customers for the fashion industry, the fashion marketing cycle is too short compared to other industries In Fashion Marketing, marketers and advertisers must constantly find out new ideas and new topics to promote their brands because otherwise their brands may become outdated Therefore, regular change is a must in fashion marketing making it a challenging task In addition to the latest trends, fashion marketing will also have to maintain synchronization with their target customers while focusing on the business of the fashion industry Above all, they should ensure that there is an increase in revenue and an increase in profit margins By this way, fashion marketing can balance both the creativity of fashion and the needs of its users, while their profitability is still ensured The fashion marketing mix The nature of fashion is always associated with the conception of aesthetics, economic and cultural level of a certain era Costumes are a mirror that reflects social life Fashion marketing following that also becomes dependent on fashion The fashion marketing mix includes the following specific elements: 2.1 Fashion product The product itself is the center of brand equity because of its influence on the values that customers experience with the brand, what they hear about the brand from others, what the company tells them through the media In other words, the center of a strong brand is a good product Designing and providing a product or service that fully satisfies the needs and desires of customers is a prerequisite for successful marketing To build brand loyalty, the customer experience with products must at least meet their expectations of the product Fashion is always changing, according to the season, the trend, the movement, the perception Therefore, fashion products mostly have a relatively short life cycle And the most importance element of fashion is changes If fashion product exist for a long time, they are no longer a fashion but can become a tradition Fashion products are very diverse, it is not limited to tangible items such as clothing, shoes, jewelry, but it also includes intangibles such as beauty, style, recognition Fashion products are also the expression through people, social status, but also the benefits that customers desire to have 2.2 Fashion price Fashion products have a variety of prices Also, depending on the life cycle, the price has been adjusted to match the profit or revenue estimated Their price is not only the cost of production, the cost of raw materials, the labor constitutes but also the cost of service, aftersales services or brand value When new products are launched to the market, prices of fashion products are often higher than the costs of creating them, but at the decline, the end of the season or for the purpose of clearing inventories, the price is only equal to or even lower than production costs Therefore, setting the first price and adjusting the price of fashion products always need to be flexible to market demand 2.3 Fashion Place A fashion retailer or fashion brand owner wants to expand the market, look for potential customers, and sell many products Design and manage the sales network in the early stages of the business until the products are launched to market The sales network is a collection of channels with the participation of different entities with different strengths and prestige to successfully bring goods from manufacturing enterprises to customers The design and management of new sales channels of an enterprises must ensure the following requirements: In accordance with the nature of the product, creating the most favourable conditions for customers to approach and buy products, considering distribution channel of competitors Thus, research market and analyse enterprises' status, along with prepare an appropriate product distribution policy is a necessary task 2.4 Fashion promotion The production and distribution of competitive products without a sales promotion strategy, brand communication will obviously face many difficulties when going to the market The transmission of useful information about the product, the strengths that the product contains to the target customers is a prerequisite for the product consumption campaign to meet the requirements of profit, revenue or brand positioning Unlike other essential products, fashion products need to target the right customers Participation in fairs, direct sales, sales promotion or consumer demand stimulation, advertising on TV, social media, and internet are the best methods of promotion that businesses need to implement But the expense for it is not small Fashion marketing in practice No new fashion trend / style created by any designer can be accepted by all its target customers In human society, there is heterogeneity in culture, ideology, attitude, thought, understanding and sentiment; each small group will have different reactions about each fashion style, so the way and their acceptance time are different According to the work "The Dynamics of fashion" by Elaine Stone - a professor of the New York Institute of Technology Fashion, there are types of theory about fashion adoption everyone needs to know 3.1 Trickle-down theory This is one of Simmel's first theories explaining fashion adaptations The theory says that fashion must indeed be accepted by the leaders of society, then flowed down and adapted to the people with lower status Accompanying this theory is the recognition of a society that has the certain order of rich and poor, high status and low status Accordingly, there are points to note: The first is that fashion can only be reached to the majority of the society if or after it is accepted by a higher social class Next, the wealthy, upper class in society always finds out the ways to make the difference in their style with the lower class Meanwhile, the lower class always finds out the ways to copy and imitate the style of the upper class Therefore, the middle class will give up the old style, as the lower classes become more adapted Since then, the upper classes have discovered the new, more expensive and unique styles that are harder to copy to create their own level That contributes to the constant changes of fashion Finally, fashion products are items to show off class Associated with a society with class and status division; Fashion products are one of the most intuitive and useful tools for expressing the difference in class This theory was popularly accepted in the early 20th century in Europe, by the ages of the 17th, 18th and 19th centuries; All people in society follow closely the dress styles of kings In France, King Louis XIV was one of the leaders in European fashion in the 17th and 18th centuries During this time, fashion was always associated with the names of the kings In the nineteenth century dates, after the Bourgeois Revolution in 1789, fashion designers made a revolution that changed the world of fashion when it was named for themselves fashion brands Charles F Worth, the father of high fashion developed his name associated with the design of costumes for women who lead society as Empress Eugénie - wife of Napoleon III, Elizabeth - queen of Hungary and empress of Austria, Louisa- queen of Sweden The theory is applied to pyramid-strung societies, where the upper classes make up a very small number of society, the majority of the people in the society are middle and lower classes So we can see that feudal societies, or societies that have just emerged from feudalism, tend to have this kind of social structure and this theory is still helpful for us in predicting psychology of customers, from which we have a way to build the right message in the communication 3.2 Trickle-across theory This is a newer theory developed in the context of Western society becoming more equal According to the theory of Dr Charles W King, in the environment with the fast and strong development of the media, combined with trade promotion efforts (Promotion = discounts, promotions, gifts ) of manufacturers and distributors, new styles are updated and transmitted to the fashion leaders of each group in society at the same time He particularly emphasized the fact that there is no delay in updating information from one social group to another For example, Paris fashion trends are copied for mass production right after the collections of famous designers are launched Sometimes, they are being imitated at the same time with the product introduction This theory was introduced and denied the fallacy when it comes to public fashion uniformity It turns out that in society, there are many different target groups with specific characteristics and needs What the upper class wears today doesn't mean the middle class, the students, the workers or the office workers will wear tomorrow, or the middle-class groups will be waiting for the fall in fashion of the upper class Distributors when applying this theory often focus more on observing their own customers than they are affected by exclusive luxury stores They are always seeking to identify the right group of target customers 3.3 Trickle-Up theory This theory is developed in the context of a society that has been greatly changing in the last decades The truth is that this theory was developed by American scholars They witnessed American society seem to have evolved from the 1950s-2000s completely different from historical developments Accordingly, fashion comes from the low-income class, then attracts the attention and acceptance of the higher income class And very quickly, these classes make a clear difference in style for the rest ones in society This theory has important meanings for building minds for manufacturers, distributors in predicting fashion trends and ordering production Not only are the world-famous designer names, factories and distribution shops are starting to pay more attention to the culture of young people - the group of generation/people that are becoming more independent and affirming the ego in the fashion world more How fashion marketing can help the fashion industry The right kind of fashion marketing plays a key role in the growth and developments of the fashion industry With the help of fashion marketing, the creations of the fashion designers from different parts f the world is brought into the vicinity of the consumers and the buyers When this fashion marketing is done with the right approach there is a cent percent chance that it will bring a lot of success to that particular brand of fashion Thus as important as it is to have good designs for the fashion industry to flourish, so is the right type of marketing so that it could produce efficient results Now fashion marketing is also important because it helps the brands to emotionally and strategically connect with the brands This is because fashion is not just about clothing It is also about the story behind that and the message that the designer wants to convey through it It is also about the company that is producing that particular line of fashion products In this marketing does more than just increasing the value of the sales revenue It emotionally connects the brands o its customers and vice versa Also, fashion marketing is important because it helps in increasing the brand loyalty thus enhancing the public image of that particular company REFERENCE Baldwin, 1993 Advertisers beginning to see green The Dallas Morning News Banerjee (1999,18) Corporate Environmentalism and the Greening of Strategic Marketing Greenleaf Publishing Limited Banerjee, Gulas, & Iyer, 1995 Shades of green: A multidimensional analysis of environmental advertising Journal of Advertising, CoCo Chanel Coddington, W (1993), Environmental Marketing McGraw-Hill, New York, NY Dr Charles W King (2004) The New Professional Eagly and Kulesa (1997) Attitudes, attitude structure, and Resistance to change New Lexington Press Fuller (1999,4) Sustainable Marketing Sage Publications, Thousand Oaks, CA Grove and his partners, 1996 Strategic Dissonance (Accessed June 2020) Available at: https://doi.org/10.2307/41165830 10 Kinoti, 2011 Green marketing intervention strategies and sustainable development A conceptual paper International Journal of Business and Social Science 11 Mike Easey (2009) Fashion Marketing A John Wiley & Sons, Ltd., Publication 12 Morris et al (1995) The attenuation of solar UV radiation in lakes and the role of dissolved organic carbon Limnol Oceanogr 13 Ottman (1998) Green Marketing: Opportunity for Innovation, 2nd ed., NTC/Contemporary Books, Lincoln-wood, IL 14 Pickett et al., (1995) An Examination of the Conserving Consumer Implications For Public Policy Formation in Promoting Conservation Behavior 15 Polonsky (1994) An Introduction to green marketing Electronic Green Journal 16 Prahalad& Hamel, 1994 Competing for the future The Harvard Business school press in hardcover 17 Rahbar& Wahid, 2011 Consumer perception of green product category Impication of SMEs 18 Rashad Yazdanifard (2011) The concept of green marketing and green product development on consumer buying approach (Accessed June 2020) Available at: https://www.longdom.org/articles/the-concept-of-green-marketing-and-green-productdevelopment-on-consumer-buying-approach.pdf 19 Robert, 1995 The Concept of Environmental Sustainability Annual Review of Ecology and Systematics 20 Wikipedia, 2015 21 World Commission on Environment and Development (1987) ... traditional marketing policy Green marketers need to receive information regarding these new issues and conduct a re-evaluation of the marketing- mix tool in a greener way 3.1 Green products strategy Green. .. concept of green marketing and green product development on consumer buying approach (Accessed June 2020) Available at: https://www.longdom.org/articles/the-concept-of -green -marketing- and -green- productdevelopment-on-consumer-buying-approach.pdf... Benefits of green marketing With a range of activities, such as changing product design, production processes, packaging, advertising to meet the "green needs" of consumers and society, green marketing