Question

In: Finance

Locate a company that engages in indirect green marketing practices for the products/services they sell, but...

Locate a company that engages in indirect green marketing practices for the products/services they sell, but have also developed subsidiary foundations to support additional ecological initiatives.

  1. evaluates whether such foundations impact consumer opinion,
  2. considers the pros/cons of indirect Green Marketing, and
  3. describes the ethical considerations of such a marketing methodology.

Solutions

Expert Solution

Businesses invest a lot of time and money in sustainability efforts as it is the “right thing to do” while others do it to increase profits. Apart of their particular objectives, businesses often want to be recognized for their sustainability efforts.
Green marketing involves communicating the sustainability efforts; thus playing a pivotal role in helping businesses to achieve public recognition. The concept of Green marketing highlights a product or service's environmental benefits and illustrating how brands are changing their processes and practices to be more environmentally aware. For consumers, it means you might hear terms like ''eco-friendly,'' ''sustainable,'' ''organic,'' ''recyclable,'' or reducing a ''carbon footprint,'' among others. A carbon footprint is the environmental impact of an individual or a business. More and more brands are getting on board the green marketing train, shining the spotlight on their safe and mindful products and services, or changing up a brand's entire image from revenue-driven to environmentally friendly.
One of few companies that are using Green marketing as one of the marketing strategies in the competitive markets is ‘Johnson & Johnson’.
The Johnson & Johnson company is few of the industry leaders in surgical, first Aid and well-known baby products. The company has created its own Environment, Health, Safety, and Sustainability Department to fine-tune internal practices. They’ve implemented an on-the-job training program to make sure everyone at their company is on the same page with core values and key issues.
a.   Impact on consumer opinions: As per the research reports and press publications, the strategy has helped the company to solidify their current brand image. Also, the company has set sustainability goals that include increasing product recycling to reduce carbon emissions by 20 percent by 2020. The company has also earned a slew of honors and recognition for their efforts.
Holistically, consumer behavior is more oriented towards the strategy of the marketing tools & campaigns used by the company. Green Marketing has earned a good rating and the companies implementing such strategies get relatively better consumer responses.
b.   Pros/Cons of indirect Green Marketing: Green Marketing practices result in cost cutting, differentiating green products, increasing product marketability and gain competitive advantage for the company. It adds to the authenticity that people want to see in what is being offered. Green marketing is able to establish expertise and loyalty, then you generate local and regional leverage.Green Marketing creates higher levels of customer loyalty, also creates more opportunities for people to support.
Considering the negative impact of Green marketing, the overall campaign can become quite complex, It can prove the most expensive tools of marketing,
Not everyone likes to change People get set in their ways, used to their habits and routines, and don’t like it when that reality is interrupted, and hence the Green marketing can create a lot of resistance among the customers can be difficult to keep current with this type of marketing as staying ahead of the curve can be extremely difficult in the current business environment.
c.   Ethical Considerations of Green Marketing Methodology: Green marketing takes account of the wider relationship of the organization and its products to the surroundings. The prime emphasis is on, developing relationships and satisfying separate Stakeholders needs in an environmentally and socially responsible manner. Many business organizations are realizing that as members of the wider human and social community they must behave in an environmentally responsible fashion. Most of the employees of a business organization also feel proud and responsible to working for an environmentally responsible company.


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