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The Green Marketing Mix and its influence on organic (green) food consumption

A study from the food retailer perspective

Written by G. A. Plasencia

Paper category

Master Thesis

Subject

Business Administration>Marketing & Sales

Year

2019

Abstract

Thesis: Traditional marketing and green marketing The traditional marketing process involves a wide range of activities in the enterprise. Kotler et al. (2001) defined the marketing process as the process of analyzing marketing opportunities; selecting the target market; expanding the marketing mix and managing all marketing processes. Therefore, the marketing process covers issues from strategy (what to do?) to tactics (how to do it?). However, the American Marketing Association (AMA) defines marketing as the process of planning and implementing 4P concepts, that is, the location of products, pricing, promotions, and goods and services to create exchanges that meet personal and organizational goals (Zineldin and Philipson, 2007) . "Exchange" is the act of obtaining a desired product from someone by offering something in return. This exchange meets the needs and expectations of consumers. In turn, the company can make a profit (Kotler, 1994). 4P should work together in a single marketing plan to meet customer needs and enable the company to obtain reasonable profits. Peattie (1995) defined the Green Marketing Academy according to the definition given by the Franchise Law as the overall management process responsible for identifying, predicting and satisfying customer needs. Marketing should provide profits for the company in a sustainable way, and it is not harmful to society. Green marketing and environmental practices, such as recycling, are essential to save the world from pollution. Consumers, industrial buyers and suppliers must strive to minimize the negative impact on the environment (Mishra and Sharma, 2010). Later, Peattie (2001) defined green marketing as a marketing activity that attempts to reduce the negative impact of existing products and production systems on society and the environment, and promote environmentally sound products and services. In addition, green marketing needs to help consumers improve their decision-making, which may include reducing demand, limiting and reducing their waste and adverse environmental impacts. In fact, if consumers only change their lifestyles, huge social benefits will be produced. From traditional brands to green brands (Wymer and Polonsky, 2015). Consumer, government, and competitive pressures can force companies to adopt green marketing methods (Abzari et al., 2013). As mentioned above, stakeholders (consumers and companies) can contribute to the protection of the environment in different ways. However, this research only focuses on how retailers use green marketing mix to support green food consumption. Because traditional marketing emphasizes the needs of customers without considering social welfare and environmental issues, this problem has been solved by the company. 2.2 Green marketing strategy Green marketing strategy is an overview of traditional marketing strategies. Following Slater and Olson (2001), marketing strategies face decisions related to market segmentation and target positioning, as well as positioning strategy design based on marketing mix. The marketing strategy consists of a continuous chart, including a sequence of segmentation, goals, positioning, and differentiation (Kotler and Armstrong, 2014. However, differentiation does not meet part of this research (see Figure 1). The model adopts the same model as Kotler and Armstrong (2014) and Kotler et al. have the same structure as the original plan of the green marketing strategy. (2001). Except that the post-differentiation positioning is not included. Rex and Baumann (2017) proposed a similar plan. 2.2.1 Segmentation and positioning Market research and segmentation are the basis for market positioning decisions (Kotler, 1994). Segmentation and positioning are closely related concepts. Market segmentation is the process of dividing the market into consumer groups with different needs, characteristics or behaviors. In In the positioning process, the company evaluates market segments and decides which market segments to address (Kotler et al., 2001). Market positioning means committing to meet the different needs of customer groups by developing specific capabilities and resource investments (Kotler, 1994). These capabilities enable companies to use the elements of the marketing mix to create value propositions for target market segments (Slater and Olson, 2001). Understanding customers and meeting their needs is the basis of traditional marketing theories, because customers have different needs, and through Treating them all the same, it is seldom possible to satisfy all customers. Davari and Strutton (2014) concluded that green product marketers should segment their target audience as follows: consumers who care about the environment and consumers who do not care about the environment. Consumers. Positioning organic products in the market is crucial to segmenting consumers, such as consumers who are environmentally conscious (Tandon and Sethi, 2007). Many studies emphasize traditional market segmentation, such as based on age and socioeconomic groups The demographic segmentation is not suitable for green marketing. The most appropriate (Dangelico and Vocalelli, 2017). On the contrary, there are other types of segmentation, for example, through the use of attitudes, values, knowledge, environmental purchasing behavior level (Tandon and Sethi , 2017). Bernyte (2018) concluded that traditional marketers are trying to promote sustainable consumption. Read Less