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Aiming for a greener future

A study within green marketing strategy and subjective performance

Written by C. Alvén, P. Huhtilainen

Paper category

Bachelor Thesis


Business Administration>Marketing & Sales




Thesis: Green marketing strategy 2.2.1 Definition of GMS There are many definitions of green marketing strategy. According to Nair and Ndubisi (2011), green marketing strategy is called "environmental marketing", "ecological marketing", and "sustainable marketing". ", and'Environmental Entrepreneurship Marketing'. Banerjee, Iyer, and Kashyap (2003) define environmental strategy as the degree to which environmental issues are integrated with the company's strategic plan. Fraj et al. (2011) Use Hart's method to define green marketing strategies. This approach views GMS as a competitive strategy that allows companies to optimize different dimensions of organizational performance, and these are seen as expressions of competitive advantage. Kumar et al. (2012) described the green marketing strategy as the application of different marketing tools to meet organizational and personal goals, while insisting on the preservation, protection and conservation of the physical environment. The author claims that the focus of the green marketing strategy is to improve corporate performance through more environmentally conscious marketing and legislation. (Ibid.) Integrating green values ​​into a company's marketing strategy not only helps to manage its resources more effectively, but also helps to improve the company's image and reputation (Fraj et al., 2011). GMS is not an isolated strategy, it will only help organizations solve ecological problems, but covers all activities and services designed to meet customer expectations for these two more environmentally friendly products, and to create more sustainable and ethical corporate behavior (Fraj et al., 2011). Green marketing strategies can also be seen as a way of doing business while avoiding harm to humans and the planet (Cronin et al., 2011). It is said that GMS can lead companies to increase profitability, mainly because process-oriented activities such as eco-design, reverse logistics, and the use of cleaner materials in products and packaging seem to help increase efficiency and reduce costs at the same time. The scope of GMS is not only to sell and promote more environmentally friendly products aimed at a green customer base. The strategy also involves other areas, such as: production, logistics and administrative departments within the company. The essence of GMS is to include active environmental actions aimed at responding to various environmental problems in society. GMS is about the desire to "do the right thing" and make the right choices, so it can show consumers that the organization is aware of the environmental impact of its actions. (Fraj et al., 2011) 2.2.2 Why use green marketing as a strategy? According to Menon and Menon (1997), the environment had no significant influence on marketing before the 1970s. The reason is the restriction of environmental laws and regulations, and society has limited influence in this regard. Fraj et al. (2011) believes that social influence drives companies to use green marketing strategies. According to the author, green marketing strategy is a topic that has appeared in academia for many years. The reason is that companies need to take greater responsibility for the environmental impact of their actions. Cronin et al. (2011) claimed that the company has observed the positive results of the environmental marketing strategy and therefore strives to implement it into their business. The author also pointed out that stakeholders, senior managers and academics are increasingly interested in implementing and using green marketing strategies to influence the triple bottom line. (Ibid) Prothero (1990) pointed out that as consumers pay more and more attention to the environment, companies need to change their strategies. Environmental strategy refers to the degree to which the environment and environmental issues are incorporated into the organization's strategic planning process (Baker & Sinkula, 2005). Henriques and Sadorsky (1996) pointed out that companies that regard environmental issues as important are more likely to develop environmental plans and strategies. As Baker and Sinkula (2005) said, marketers in an organization may participate in marketing-related environmental activities because they see an opportunity to gain market share or believe that participating in environmental marketing is the “right thing”. Regulatory power and environmental legislation are important driving forces for formulating green marketing strategies (Banerjee et al., 2003). Gobadian et al. (1995) claimed that companies tend to passively formulate environmental strategies, and that this development mainly depends on the pressure of regulatory agencies. According to the authors, there is little evidence that companies are actively working to participate in environmental strategies. Wang et al. A study conducted by (1996) showed that companies' decisions on adopting and participating in environmental strategies are mainly due to consumer pressure and regulatory forces. However, the author claims that regulatory power and pressure from competitors are greater than consumer pressure. Banerjee and others. (2003) pointed out that the main influencing factors of why companies start to use various environmental marketing strategies are: senior management, supervisory power, public attention and competitive advantage. Read Less