Environmental Marketing Mix Continued
Environmental Promotion Strategies
Due to the consumer, celebrity and government appetite for protecting
the “environment” environment friendly practices are
used as promotional tools. For example the award of ISO 14001 (which
certifies that an organisation has certain environmental standards,
as certified by an independent external auditing organisation) is often
quoted in marketing literature.
Product packaging that can be recycled will have a message on the packaging
clearly stating the recycling properties for the packaging. Similarly
organic products will be labelled, not only on the packaging but also
around the shelving displaying the organic produce.
Some organisations have sought to reduce costs through the promotion
of environmentally friendly strategies. The use of carrier bags has
changed dramatically in the UK over the last five years. Retailers actively
promote the benefit of reusable bags as they have many benefits:
- Lower costs for the retailer
- Consumers “feel good” as they believe that the use
of a reusable bag is helping the environment
- Fewer carrier bags go to landfill
Another example is hotels offering guests the opportunity to accept fewer linen and towel changes. Such strategy is environmentally friendly
as it reduces the use of detergents and energy and it also reduces costs
for the hotel and improves corporate image.
Some organisations providing products and services which may harm the
environment have added “off setting” methods to their portfolios
and marketing literature. The idea behind “off setting”
is that the consumer is offered the opportunity to indirectly engage
in an activity (such as tree planting) that benefits the environment
and therefore balances/evens out the damage they caused for example
through flying. Such schemes attempt to ease the consumer’s conscience
and retain a positive image for the organisation providing the environmentally
unfriendly product or service
Environmental Pricing Strategies
Throughout this article we have discussed how environmentally friendly
strategies can either increase or decrease organisational costs. The
ideal marketing mix is a reduction in costs or an increase in costs
which exceeded by an increase in profits.
Pricing must reflect the demand for the product, an incorrectly priced
product will reduce demand; this is now further complicated by the impact
environmental issues have on pricing. If an organisation is paying more
for raw materials because the supplier is “environmentally friendly”
it may decide to “pass on” this price increase to the consumer,
the ideal price will be dictated by the target market.
On the other hand companies cutting costs and increasing profits at
the expense of the environment are risking negative publicity, fines,
sanctions or may simply lose out to organisations actively promoting
their environmentally friendly practices even if such competitors offer more expensive products and services.
The environmental marketing mix is important in today’s
business world due to consumer demands and pressure from government organisations. Firms will have to carefully manage the environmental marketing mix if they
are to successfully operate in a world which is becoming increasingly
aware of climatic changes. Below is a diagram illustrating how to adapt the marketing mix to suit environmentally friendly marketing and green marketing.
The diagram belows summarises the factors that make up product, price, place and promotion elements for the environmental marketing mix