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AN INTRODUCTION TO GREEN MARKETING

Although environmental issues influence all human activities, few academic disciplines have integrated green issues into their literature. This is especially true of marketing. As society becomes more concerned with the natural environment, businesses have begun to modify their behavior in an attempt to address society’s new concerns. Some businesses have been quick to accept concepts like environmental management systems and waste minimization, and have integrated environmental issues into all organizational activities. One business area where environmental issues have received a great deal of discussion in the popular and professional press is marketing. Terms like “Green Marketing” and “Environmental Marketing” appear frequently in the popular press. Many Governments around the world have become so concerned about green marketing activities that they have attempted to regulate them. Extensive documents examining green marketing issues developed by Federal Trade Commission (FTC) and National Association of Attorneys General (NAAG) in United States is an example for that.

GREEN MARKETING Unfortunately, a majority of people believe that green marketing refers solely to the promotion or advertising of products with environmental characteristics. Terms like phosphate free, Recyclable, Ozone friendly, and Environmentally Friendly are some of the things consumers most often associate with green marketing. While these terms are green marketing claims, in general green marketing is much broader concept, one that can be applied to consumer goods, industrial goods and even services. For example, around the world there are resorts that are beginning to promote themselves as “ecotourist” facilities. Thus green marketing incorporates a broad range of activities, including product modification, changes to production process, packaging changes, as well as modifying

advertising. Yet defining green marketing is not a simple task. Indeed terminology used in this area has varied; it includes green marketing, environmental marketing and Ecological Marketing. While Green marketing came into prominence in the late 1980s and early 1990s, it was first discussed much earlier. The American Marketing Association (AMA) held the first workshop on “Ecological Marketing” in the year 1975. At this workshop Ecological Marketing was defined as “the study of the positive and negative aspects of marketing activities on pollution, energy depletion and non energy resource depletion. Much of a broad definition for Green Marketing can be given by “It consist of all activities designed to generate and facilitate any exchanges intended to satisfy human needs or wants, such that the satisfaction of those needs and wants occur with minimal detrimental impact to the environment.

IMPORTANCE OF GREEN MARKETING The question of why Green Marketing has increased in importance is quite simple and relies on the basic definitions of Economics. Economics is the study of how people use their limited resources to try to satisfy unlimited wants. Thus mankind has limited resources on the earth, with which he or she must attempt to provide for the worlds unlimited wants. In market societies where there is freedom of choice, it has generally been accepted that individuals and have the right to attempt to have their wants satisfied. As firms face limited natural resources, they must develop new or alternative ways of satisfying these unlimited wants. Ultimately, green marketing looks at how marketing activities utilize these limited resources, while satisfying consumers wants, both of individuals and industry, as well as achieving the selling organizations objectives. WHY ARE FIRMS USING GREEN MARKETING  Organizations perceive environmental marketing to be an opportunity that can be used to achieve their objectives.  Organizations believe they have a moral obligation to be more socially responsible

 Governmental bodies are forcing firms to become more responsible.  Competitor’s environmental activities pressure firms to change their environmental marketing activities.  Cost factors associated with waste disposal, or reductions in material usage forces firms to modify their behavior OPPORTUNITIES It appears that all types of consumers, both individual and industrial are becoming more concentrated and aware about the natural environment. In a 1992 study of 16 countries, more than 50% of the consumers in each country, other than Singapore , indicated that they were concerned about the environment. A 1994 study in Australia found out that 84.6% of the sample believed that all individuals had a responsibility to care for the environment. A further 80% indicated that they had modified their behavior, including their purchasing behavior, due to environmental reasons. Given these figures, it can be assumed that firms marketing goods with environmental characteristics will have a competitive advantage over firms marketing non -environmentally responsible alternatives. There are numerous example of firms who have strived to become more environmentally responsible, in an attempt to better satisfy their consumer needs. • McDonald replaced its clam shell packaging with waxed paper because of increased consumer concern relating to polystyrene production and ozone depletion. • • Tuna manufacturers modified their fishing technique because of the increased concern over driftnet fishing, and the resulting death of dolphins. Xerox introduced a “high quality” recycled photocopier paper in an attempt to satisfy the demands of the firms for less environmentally harmful products. This is not to imply that all firms who have undertaken environmental marketing activities actually improve their behavior. In some cases firms have misled consumers in an attempt to gain market share. In other cases firms have jumped on the green bandwagon without

considering the accuracy of their behavior, their claims, or the effectiveness of their products. This lack of consideration of the true “greenness” of activities may result in firms making false or misleading green marketing claims. THREE KEYS TO SUCCESSFUL GREEN MARKETING Show potential customers that you follow green business practices and you could reap more green on your bottom line. Green Marketing isn't just a catchphrase; it's a marketing strategy that can help you get more customers and make more money. But only if you do it right. For green marketing to be effective, you have to do three things; be genuine, educate your customers, and give them the opportunity to participate. 1) BEING GENUINE means that a) that you are actually doing what you claim to be doing in your green marketing campaign and b) that the rest of your business policies are consistent with whatever you are doing that's environmentally friendly. Both these conditions have to be met for your business to establish the kind of environmental credentials that will allow a green marketing campaign to succeed. 2) EDUCATING YOUR CUSTOMERS isn't just a matter of letting people know you're doing whatever you're doing to protect the environment, but also a matter of letting them know why it matters. Otherwise, for a significant portion of your target market, it's a case of "So what?" and your green marketing campaign goes nowhere. 3) GIVING YOUR CUSTOMERS AN OPPORTUNITY TO PARTICIPATE means personalizing the benefits of your environmentally friendly actions, normally through letting the customer take part in positive environmental action.

GREEN MARKETING MIX

Every company has its own favorite marketing mix. Some have 4 P's and some have 7 P's of marketing mix. The 4 P's of green marketing are that of a conventional marketing but the challenge before marketers is to use 4 P's in an innovative manner. PRODUCT The ecological objectives in planning products are to reduce resource consumption and pollution and to increase conservation of scarce resources (Keller man, 1978). PRICE Price is a critical and important factor of green marketing mix. Most consumers will only be prepared to pay additional value if there is a perception of extra product value. This value may be improved performance, function, design, visual appeal, or taste. Green marketing should take all these facts into consideration while charging a premium price. PROMOTION There are three types of green advertising: • • • PLACE The choice of where and when to make a product available will have significant impact on the customers. Very few customers will go out of their way to buy green products. STRATEGIES The marketing strategies for green marketing include: •

Ads that address a relationship between a product/service and the biophysical environment Those that promote a green lifestyle by highlighting a product or service Ads that present a corporate image of environmental responsibility

Marketing Audit (including internal and external situation analysis)

• • •

Develop a marketing plan outlining strategies with regard to 4 P's Implement marketing strategies Plan results evaluation

REASONS FOR GOING GREEN 1) Social Responsibility Many firms are beginning to realize that they are members of the wider community and therefore must behave in an environmentally responsible fashion. This translates into firms that believe they must achieve environmental objectives as well as profit related objectives. This result in environmental issues being integrated into the firms corporate culture. Firms in this situation can take two perspectives: either they can use the fact that they are environmentally responsible as a marketing tool or they can become environmentally responsible without promoting this fact. 2) Governmental Pressure As with marketing related activities, governments want to protect consumers and society; this protection has significant green marketing implications. Governmental regulations relating to environmental marketing are designed to protect consumers in several ways, a) Reduce production of harmful goods or by-products. b) Modify consumer and industry’s use and/or consumption of harmful goods c) Ensure that all types of consumers have the ability to evaluate the environmental composition of goods.

3) Competitive Pressure

Another major force in the environmental marketing area has been the firms desire to maintain their competitive position. In many cases, firms observe competitors promoting their environmental behavior and attempt to emulate this behavior. In some instances, this competitive pressure has caused an entire industry to modify and thus reduce its detrimental environmental behavior. 4) Cost or Profit Issues Firms may also green marketing in an attempt to address cost or profit related issues. Disposing of environmentally harmful by-products, such as Polychlorinated Biphenyl (PCB) contaminated oil are becoming increasingly costly and in some cases difficult. Therefore firms that can reduce harmful wastes may incur substantial cost saving. When attempting to minimize waste, firms are often forced to re-examine their production processes. In these cases they often develop more effective production processes that not only reduce waste, but reduce the need for some raw materials. This serves as a double cost savings, since both waste and raw materials are reduced.

PROBLEMS WITH GOING GREEN No matter why a firm uses green marketing, there are a number of potential problems that they must overcome. One of the main problems is that firms using green marketing must ensure that their activities are not misleading to consumers or industry, and do not breach any of the regulations or laws dealing with environmental marketing. For example, marketers in the US must ensure their green marketing claims can meet the following set of criteria, in order to comply with the FTC’s guidelines. Green marketing claims must: • • Clearly state environmental benefits; Explain environmental characteristics

• • • •

Explain how benefits are achieved Ensure comparative differences are justified Ensure negative factors are taken into consideration; and Only use meaningful terms and pictures.

Another problem firms’ face is that those who modify their products due to increased consumer concern must contend with the fact that consumers’ perceptions are sometimes not correct. Take for example the McDonalds case where it has replaced its clam shells with plastic coated paper. There is an ongoing scientific debate which is more environmentally friendly. Some scientific evidence suggests that when taking a cradle-tograve approach polystyrene is less environmentally harmful. If this is the case McDonalds bowed to consumer pressure, yet has chosen the more environmentally harmful option. When firms attempt to become socially responsible, they may face the risk that the environmentally responsible action of today will be found to be harmful in the future. Take for example, the aerosol industry which has switched from CFCs (Chlorofluorocarbons) to HFCs (Hydro fluorocarbons) also to be told HFCs are also a greenhouse gas. Some firms now use DME (Dimethyl Ether) as an aerosol propellant, which may also harm the ozone layer. Given the limited scientific knowledge at any point in time, it may be impossible for a firm to be certain they have made the correct environmental decision. They may explain why some firms, like Coca cola and Walt Disney World are becoming socially responsible without publicizing the point. They may be protecting themselves from potential future negative backlash, if it is determined they made the wrong decision in the past. Another problem is that reacting to competitive pressures can cause all “followers” to make the same mistake as the “leader”. A costly example of this was the Mobil Corporation that followed the competition and introduced “biodegradable” plastic garbage bags. While technically these bags were biodegradable, the conditions under which they were disposed did not allow biodegradation to occur. Mobil was sued by several US states for using misleading advertising claims. Thus blindly following the competition can have costly ramifications.

GREEN MARKETING IN INDIAN SCENARIO The term Green Marketing is relatively new in the Indian context. The most visible manifestations of corporate activities have been in industries associated with polluting the environment (Petroleum, fuel) or niche segments in some sectors such as hotels and stationery. Other than this, there is no significant drive to pursue options in the production of greener products or building up a consumer base for green products. Understandably so, given the absence of regulations in place to steer firms towards greener alternatives, leave alone design of green manufacturing systems, even the existing rules on effluent treatment and gaseous emissions into the atmosphere are not implemented properly. A trend that evolved two decades ago in developed markets has just started in India. Over the past few years, some sectors in India have seen green initiatives by firms. Partly to differentiate their offerings in a competitive milieu and partly to take advantage of the price premium possible, many companies have started offering branded products in several categories. Some of these are detailed below a) Renewable Energy Setting up of Indian Renewable Energy Development Agency Limited (IREDA) in 1987 was such an attempt. At the customer end, Tata BP solar provides many solar products for households’ under different brands. b) Hospitality ECOTEL is a global certification for eco friendly hotels. Presently there are 36 hotels worldwide of which 5 are in India. c) Fuel Public sector giants like BPCL, HPCL and Indian Oil became more market oriented with the liberalization of the sector. BPCL offers greener fuels under the brands Speed, Speed 93, Speed 97 and Hi-speed diesel. d) Automotive Bajaj Auto launched ECOrick, an electric three wheeler. Hyderabad based Cynosure Enterprises Limited launched Yash E Bike, an electric two wheeler that runs at a speed of 25 to 30 km/hr.

e) Personal Care Products Across a wide range of product categories-soap, cream, talcum powder, oil, shampoo-there is a an increasing shift towards products that are without chemicals.

INDUSTRY PROFILE Today, India is the second fastest growing economy in the world. The Indian construction industry is an integral part of the economy and a conduit for a substantial part of its development investment, is poised for growth on account of industrialization,

urbanization, economic development and people's rising expectations for improved quality of living. In India, construction is the second largest economic activity after agriculture. Construction accounts for nearly 65 per cent of the total investment in infrastructure and is expected to be the biggest beneficiary of the surge in infrastructure investment over the next five years. Investment in construction accounts for nearly 11 per cent of India’s Gross Domestic Product (GDP). €239.68 billion is likely to be invested in the infrastructure sector over the next five to 10 years - in power, roads, bridges, city infrastructure, ports, airports, telecommunications, which would provide a huge boost to the construction industry as a whole. Investment into this sector has gone up to €93.36 billion in FY2010. With such bullish prospects in infrastructure, affiliated industries such as cement are on a high. Cement consumption, for the first time, is set to exceed the 150-million tonne mark. Reflecting the demand for the commodity, capacity utilisation rose to over 100 per cent to touch 102 per cent in January 2007 with despatches touching 14.10 million tonnes as against the production of 14 million tonnes. As opportunities in the sector continue to come to the fore, foreign direct investment has been moving upwards. The real estate and construction sectors received FDI of €216.53 million in the first half of the current fiscal year. INDUSTRY SEGMENTS REAL ESTATE • Residential (Housing & Development) • Industrial (Industrial Parks, Factories, Plants, etc.) • Corporate (Office, Research Centres) INFRASTRUCTURE • Roads • Railways • Urban infrastructure (improved housing, watersupply and sanitation, schools, universities, health and security, etc.)

• Ports • Airports • Power

INDIAN REAL ESTATE SECTOR Real Estate is a €34 bn (by revenue) Industry in India. It has witnessed a revolution, driven by the booming economy, favourable demographics and liberalised foreign direct investment (FDI) regime. Growing at a scorching 30 per cent, it has emerged as one of the most appealing investment areas for domestic as well as foreign investors. The second largest employing sector in India (including construction and facilities management), real estate is linked to about 250 ancillary industries like cement, brick and steel through backward and forward linkages. Consequently, a unit increase in expenditure in this sector has a multiplier effect and the capacity to generate income as high as five times. ALL-ROUND DEVELOPMENT Rising income levels of a growing middle class along with increase in nuclear families, low interest rates, modern attitudes to home ownership (the average age of a new homeowner in 2006 was 32 years compared with 45 years a decade ago) and a change of attitude amongst the young working population from that of 'save and buy' to 'buy and repay' have all combined to boost housing demand. According to 'Housing Skyline of India 2007-08', a study by research firm, Indicus Analytics, there will be demand for over 24.3 million new dwellings for self-living in urban India alone by 2015. Consequently, this segment is likely to throw huge investment opportunities. In fact, an estimated €16 billion investment will be required over the next five years in urban housing, says a report by Merrill Lynch. Simultaneously, the rapid growth of the Indian economy has had a cascading effect on demand for commercial property to help meet the needs of business, such as modern

offices, warehouses, hotels and retail shopping centres. Growth in commercial office space requirement is led by the burgeoning outsourcing and information technology (IT) industry and organised retail.

The evolution of Indian Construction Industry was almost similar to the construction industry evolution in other countries: founded by Government and slowly taken over by enterprises. After independence the need for industrial and infrastructural developments in India laid the foundation stone of construction, architectural and engineering services. The period from 1950 to mid 60’s witnessed the government playing an active role in the development of these services and most of construction activities during this period were carried out by state owned enterprises and supported by government departments. In the first five-year plan, construction of civil works was allotted nearly 50 per cent of the total capital outlay. The first professional consultancy company, National Industrial Development Corporation (NIDC), was set up in the public sector in 1954. Subsequently, many architectural, design engineering and construction companies were set up in the public sector (Indian Railways Construction Limited (IRCON), National Buildings Construction Corporation (NBCC), Rail India Transportation and Engineering Services (RITES), Engineers India Limited (EIL), etc.) and private sector (M N Dastur and Co., Hindustan Construction Company (HCC), Ansals, etc.). In the late 1960s government started encouraging foreign collaborations in these services. The Guidelines for Foreign Collaboration, first issued in 1968, stated that local consultant would be the prime contractor in such collaboration. The objective of such an imposition was to develop local design capabilities parallel with the inflow of imported technology and skills. This measure encouraged international construction and consultancy organisations to set up joint ventures and register their presence in India.

In India Construction has accounted for around 40 per cent of the development investment during the past 50 years. Around 16 per cent of the nation's working population depends on construction for its livelihood. The Indian construction industry employs over 3 crore people and creates assets worth over 20,000 crore. It contributes more than 5 per cent to the nation's GDP and 78 per cent to the gross capital formation. Total capital expenditure of state and central govt. will be touching 8,02,087 crores in 2011-12 from 1,43,587 crores (1999-2000). The share of the Indian construction sector In total gross capital formation (GCF) came down from 60 per cent in 1970-71 to 34 per cent in 1990-91. Thereafter, it increased to 48 per cent in 1993-94 and stood at 44 per cent in 1999-2000. In the 21 st century, there has been an increase in the share of the construction sector in GDP and capital formation. GDP from Construction at factor cost (at current prices) increased to 1,74,571 crores (12.02% of the total GDP ) in 2004-05 from 1,16,238 crores (10.39% of the total GDP) in 2000-01. The main reason for this is the increasing emphasis on involving the private sector infrastructure development through public-private partnerships and mechanisms like buildoperate-transfer (BOT), private sector investment has not reached the expected levels. The Indian construction industry comprises 200 firms in the corporate sector. In addition to these firms, there are about 1,20,000 class A contractors registered with various government construction bodies. There are thousands of small contractors, which compete for small jobs or work as sub-contractors of prime or other contractors. Total sales of construction industry have reached 42,885.38 crores in 2004 05 from 21,451.9 crores in 2000-01. FUTURE CHALLENGES The Indian economy has witnessed considerable progress in the past few decades. Most of the infrastructure development sectors moved forward, but not to the required extent of

increasing growth rate up to the tune of 8 to 10 per cent. The Union Government has underlined the requirements of the construction industry. With the present emphasis on creating physical infrastructure, massive investment is planned in this sector. The Planning Commission has estimated that investment requirement in infrastructure to the tune of about 14,50,000 crore or US$320 billion during the 11th Five Year Plan period. This is a requirement of an immense magnitude. Budgetary sources cannot raise this much resources. Public Private Partnerships (PPP) approach is best suited for finding the resources. Better construction management is required for optimising resources and maximising productivity and efficiency.
In the recent times, India has stepped up its development agenda. One explicit indicator of this is the aggressive pace of construction activity in the country. The honorable President of India, Dr. A. P. J. Abdul Kalam, has set the goal of 2020 for India to become a developed nation.

GREEN BUILDINGS

Green building (also known as green construction or sustainable building) is the practice of creating structures and using processes that are environmentally responsible and resourceefficient throughout a building's life-cycle: from siting to design, construction, operation, maintenance, renovation, and demolition. This practice expands and complements the classical building design concerns of economy, utility, durability, and comfort. Although new technologies are constantly being developed to complement current practices in creating greener structures, the common objective is that green buildings are designed to reduce the overall impact of the built environment on human health and the natural environment by:

• • •

Efficiently using energy, water, and other resources Protecting occupant health and improving employee productivity Reducing waste, pollution and environmental degradation

A similar concept is natural building, which is usually on a smaller scale and tends to focus on the use of natural materials that are available locally. Other related topics include sustainable design and green architecture. Green building does not specifically address the issue of the retrofitting existing homes. REDUCING ENVIRONMENTAL IMPACT Green building practices aim to reduce the environmental impact of new buildings. Buildings account for a large amount of land use, energy and water consumption, and air and atmosphere alteration. Considering the statistics, reducing the amount of natural resources buildings consume and the amount of pollution given off is seen as crucial for future sustainability. The building sector alone accounts for 30-40 percent of global energy use. Over 80 percent of the environmentally harmful emissions from buildings are due to energy consumption during the times when the buildings are in use. Green building does not typically include the concept of renovations although many of the 2050 homes are already built and UK homes account for 30% of UK Carbon Emissions. Domestic energy improvement targets of 20% between now and 2010, and again by a further 20% between 2010 and 2020 have been suggested by the UK government. The environmental impact of buildings is often underestimated, while the perceived costs of green buildings are overestimated. A recent survey by the World Business Council for Sustainable Development finds that green costs are overestimated by 300 percent, as key players in real estate and construction estimate the additional cost at 17 percent above conventional construction, more than triple the true average cost difference of about 5 percent. According to the UK Green Building Council, existing buildings account for 17% of the UK's total carbon emissions. GOALS OF GREEN BUILDING

The concept of sustainable development can be traced to the energy (especially fossil oil) crisis and the environment pollution concern in the 1970s.The green building movement in the U.S. originated from the need and desire for more energy efficient and environmentally friendly construction practices. There are a number of motives to building green, including environmental, economic, and social benefits. However, modern sustainability initiatives call for an integrated and synergistic design to both new construction and in the retrofitting of an existing structure. Also known as sustainable design, this approach integrates the building life-cycle with each green practice employed with a design-purpose to create a synergy amongst the practices used. Green building brings together a vast array of practices and techniques to reduce and ultimately eliminate the impacts of new buildings on the environment and human health. It often emphasizes taking advantage of renewable resources, e.g., using sunlight through passive solar, active solar, and photovoltaic techniques and using plants and trees through green roofs, rain gardens, and for reduction of rainwater run-off. Many other techniques, such as using packed gravel or permeable concrete instead of conventional concrete or asphalt to enhance replenishment of ground water, are used as well. While the practices, or technologies, employed in green building are constantly evolving and may differ from region to region, there are fundamental principles that persist from which the method is derived: Siting and Structure Design Efficiency, Energy Efficiency, Water Efficiency, Materials Efficiency, Indoor Environmental Quality Enhancement, Operations and Maintenance Optimization, and Waste and Toxics Reduction. The essence of green building is an optimization of one or more of these principles. Also, with the proper synergistic design, individual green building technologies may work together to produce a greater cumulative effect. On the aesthetic side of green architecture or sustainable design is the philosophy of designing a building that is in harmony with the natural features and resources surrounding the site. There are several key steps in designing sustainable buildings: specify 'green' building materials from local sources, reduce loads, optimize systems, and generate on-site renewable energy.

SITING AND STRUCTURE DESIGN EFFICIENCY The foundation of any construction project is rooted in the concept and design stages. The concept stage, in fact, is one of the major steps in a project life cycle, as it has the largest impact on cost and performance.In designing environmentally optimal buildings, the objective is to minimize the total environmental impact associated with all life-cycle stages of the building project. However, building as a process is not as streamlined as an industrial process, and varies from one building to the other, never repeating itself identically. In addition, buildings are much more complex products, composed of a multitude of materials and components each constituting various design variables to be decided at the design stage. A variation of every design variable may affect the environment during all the building's relevant life-cycle stages. ENERGY EFFICIENCY Green buildings often include measures to reduce energy use. To increase the efficiency of the building envelope, (the barrier between conditioned and unconditioned space), they may use high-efficiency windows and insulation in walls, ceilings, and floors. Another strategy, passive solar building design, is often implemented in low-energy homes. Designers orient windows and walls and place awnings, porches, and trees to shade windows and roofs during the summer while maximizing solar gain in the winter. In addition, effective window placement (daylighting) can provide more natural light and lessen the need for electric lighting during the day. Solar water heating further reduces energy loads. Onsite generation of renewable energy through solar power, wind power, hydro power, or biomass can significantly reduce the environmental impact of the building. Power generation is generally the most expensive feature to add to a building. WATER EFFICIENCY Reducing water consumption and protecting water quality are key objectives in sustainable building. One critical issue of water consumption is that in many areas, the demands on the

supplying aquifer exceed its ability to replenish itself. To the maximum extent feasible, facilities should increase their dependence on water that is collected, used, purified, and reused on-site. The protection and conservation of water throughout the life of a building may be accomplished by designing for dual plumbing that recycles water in toilet flushing. Waste-water may be minimized by utilizing water conserving fixtures such as ultra-low flush toilets and low-flow shower heads. Bidets help eliminate the use of toilet paper, reducing sewer traffic and increasing possibilities of re-using water on-site. Point of use water treatment and heating improves both water quality and energy efficiency while reducing the amount of water in circulation. The use of non-sewage and greywater for onsite use such as site-irrigation will minimize demands on the local aquifer.

MATERIALS EFFICIENCY Building materials typically considered to be 'green' include rapidly renewable plant materials like bamboo (because bamboo grows quickly) and straw, lumber from forests certified to be sustainably managed, ecology blocks, dimension stone, recycled stone, recycled metal, and other products that are non-toxic, reusable, renewable, and/or recyclable (e.g. Trass, Linoleum, sheep wool, panels made from paper flakes, compressed earth block, adobe, baked earth, rammed earth, clay, vermiculite, flax linen, sisal, seagrass, cork, expanded clay grains, coconut, wood fibre plates, calcium sand stone, concrete (high and ultra high performance, roman self-healing concrete) , The EPA (Environmental Protection Agency) also suggests using recycled industrial goods, such as coal combustion products, foundry sand, and demolition debris in construction projects Building materials should be extracted and manufactured locally to the building site to minimize the energy embedded in their transportation. Where possible, building elements should be manufactured off-site and delivered to site, to maximise benefits of off-site manufacture including minimising waste, maximising recycling (because manufacture is in one location), high quality elements, better OHS management, less noise and dust. INDOOR ENVIRONMENTAL QUALITY ENHANCEMENT

The Indoor Environmental Quality (IEQ) category in LEED (Leadership in Energy and Environmental Design) standards, one of the five environmental categories, was created to provide comfort, well-being, and productivity of occupants. The LEED IEQ category addresses design and construction guidelines especially: indoor air quality (IAQ), thermal quality, and lighting quality. Indoor Air Quality seeks to reduce Volatile Organic Compounds, or VOC's, and other air impurities such as microbial contaminants. Buildings rely on a properly designed HVAC system to provide adequate ventilation and air filtration as well as isolate operations (kitchens, dry cleaners, etc.) from other occupancies. During the design and construction process choosing construction materials and interior finish products with zero or low emissions will improve IAQ. Many building materials and cleaning/maintenance products emit toxic gases, such as VOC's and formaldehyde. These gases can have a detrimental impact on occupants' health and productivity as well. Avoiding these products will increase a building's IEQ. Personal temperature and airflow control over the HVAC system coupled with a properly designed building envelope will also aid in increasing a building's thermal quality. Creating a high performance luminous environment through the careful integration of natural and artificial light sources will improve on the lighting quality of a structure.

OPERATIONS AND MAINTENANCE OPTIMIZATION No matter how sustainable a building may have been in its design and construction, it can only remain so if it is operated responsibly and maintained properly. Ensuring operations and maintenance (O&M) personnel are part of the project's planning and development process will help retain the green criteria designed at the onset of the project. Every aspect of green building is integrated into the O&M phase of a building's life. The addition of new green technologies also falls on the O&M staff. Although the goal of waste reduction may

be applied during the design, construction and demolition phases of a building's life-cycle, it is in the O&M phase that green practices such as recycling and air quality enhancement take place. WASTE REDUCTION Green architecture also seeks to reduce waste of energy, water and materials used during construction. For example, in California nearly 60% of the state's waste comes from commercial buildings. During the construction phase, one goal should be to reduce the amount of material going to landfills. Well-designed buildings also help reduce the amount of waste generated by the occupants as well, by providing on-site solutions such as compost bins to reduce matter going to landfills. To reduce the impact on wells or water treatment plants, several options exist. "Greywater", wastewater from sources such as dishwashing or washing machines, can be used for subsurface irrigation, or if treated, for non-potable purposes, e.g., to flush toilets and wash cars. Rainwater collectors are used for similar purposes. Centralized wastewater treatment systems can be costly and use a lot of energy. An alternative to this process is converting waste and wastewater into fertilizer, which avoids these costs and shows other benefits. By collecting human waste at the source and running it to a semi-centralized biogas plant with other biological waste, liquid fertilizer can be produced. This concept was demonstrated by a settlement in Lubeck Germany in the late 1990s. Practices like these provide soil with organic nutrients and create carbon sinks that remove carbon dioxide from the atmosphere, offsetting greenhouse gas emission. Producing artificial fertilizer is also more costly in energy than this process.[22] COST AND PAYOFF The most criticized issue about constructing environmentally friendly buildings is the price. Photo-voltaics, new appliances, and modern technologies tend to cost more money. Most green buildings cost a premium of <2%, but yield 10 times as much over the entire life of the building. The stigma is between the knowledge of up-front cost vs. life-cycle cost. The

savings in money come from more efficient use of utilities which result in decreased energy bills. It is projected that different sectors could save $130 Billion on energy bills. Also, higher worker or student productivity can be factored into savings and cost deductions. Studies have shown over a 20 year life period, some green buildings have yielded $53 to $71 per square foot back on investment.Confirming the rentability of green building investments, further studies of the commercial real estate market have found that LEED and Energy Star certified buildings achieve significantly higher rents, sale prices and occupancy rates as well as lower capitalization rates potentially reflecting lower investment risk.

INTRODUCTION TO THE STUDY The term “Green Marketing” is quite common and has gained a lot of significance around the Globe. Many Industries and Corporate have understood the fact that they could survive in this highly competitive market only when they are rendering their responsibilities towards the nature and Environment. Building Construction Industry is not far from having that insight. So they have introduced a ‘Green Building’ Concept by constructing houses that minimizes the detrimental impact on the environment.

Good Earth Eco-Ventures, a Calicut based developer has entered into this field a few years ago. They advocates on a holistic approach to this concept by making the full use of Gifts of nature like natural light, wind etc rather than by following a technological approach as most of the firms do. SIGNIFICANCE OF THE STUDY As stated above, the concept of Green Marketing or Building is quite familiar to most of us. But the perception that most of the people have is a lot far away from the actual concept. People have a tendency to attach ‘green’ color to this concept. For this reason many people are unknowingly adopting many things which they think is Green Marketing. The lack of the awareness of original concept is the reason why most of the people are not adopting this one. Some doubt about the practicability of that one as their understanding is not clear. So the awareness level, interest and desire of people about the concept need a detailed study to give an answer to why they are not adopting it.

STATEMENT OF THE PROBLEM “Green or Environmental marketing consists of all the activities designed to generate and facilitate any exchanges intended to satisfy human needs or wants, such that the satisfaction of these needs and wants occur, with minimal detrimental impact on the natural environment” From the development of human civilization it has been a common culture of man to use earth and its resources for the satisfaction of his needs and wants. It was never imagined what will happen if the earth’s resources fall short to satisfy the wants of man race. But the

situation has arised when the vast natural resources are not enough to fulfill the demand generated by the ever multiplying human population. And there is a threat of a future condition where the non renewable resources will be fully exhausted. Thus there is a responsibility on the present generation that it tries to prevent the complete depletion of natural resources. Nowadays business concern have adopted a new technique of attracting customers as well as showing their social responsibility by adopting green marketing. It has been introduced in various fields like FMCG, durable goods etc. One of the important product that has been related to eco friendly genre is housing or construction product. Green Building (also known as green construction or sustainable building) is the practice of creating structures using the processes that are environmentally responsible and resource efficient throughout a buildings life cycle: from siting to design, construction, operation, maintenance, renovation and demolition. But it is not necessary that all customers are attracted towards this novel idea. It is because house is a long term investment and capital investment. Apart from these there are emotional values attached to a house. So the problem infront of us is to identify different variables which prevent a person from adopting green buildings inspite of having awareness and interest.

OBJECTIVES OF THE STUDY 1) To Measure the General awareness of People about recent changes in Environment and its depletion. 2) To measure the level of awareness, interest and desire among people about Eco-friendly houses. 3) To make a comparison between the actual concept and peoples’ perception about Green Marketing. 4) To identify a suitable market segment for the firm.

VARIABLES OF THE STUDY • • • • • • • • • • • Age of the respondent Educational Qualification Knowledge about the concept Cost of the Product Knowledge about Environmental changes Efficiency of the Product Performance of the Product Convenience available while use Aesthetic Sense Marginal benefit Income level

SCOPE OF THE STUDY The scope of the study is limited to the Prospective customers of Good Earth, who are residents of Calicut region. It mainly focuses on their level of general environmental awareness, awareness, interest and desire about green building concept.

LIMITATIONS OF THE STUDY 1) The Study was conducted only from Calicut region mentioned by the firm, which may not be the representative of the whole state. Therefore it is difficult to generalize things. 2) Some respondents have not given the complete details as they think the data will be misused.

COMPANY PROFILE HISTORY
Inspired by the work and philosophy of Laurie Baker, a group of architects and engineers, experimenting with alternatives in architecture. Exploring concepts of holistic development, through ventures in housing, organic farming, tourism, for the past 17 years have made their dream come true through Good Earth. Their clients have been NGOs, Government departments and the private sector representing tourism, housing, institutional and educational sectors.

VISION

“To create a society, which is environmentally sensitive, economically sensible and socially secure”.

PHILOSOPHY
Good Earth believe… the world needs an enormous number of new Innovators, Change Agents, and Transformers, all dedicated to turning Development in the direction of sustainability. They should present a positive opportunity for all who interact with them, encouraging creativity, learning and growth, and nurturing of a deep appreciation of the gift of life.

CULTURE
A team is “a group of people who need one another to take action” – Peter Senge. architects, engineers, crafts persons, and individuals who are hands-on, willing to multi-task, and passionate about what they do. thinking out of the box and the spirit to run that extra mile, are characteristics of those who have fitted into our team, and added their unique flavor to it. . each individual finds his/her niche in the organization, and does what they are best at. work in small decentralized groups the strength of our organization lies in positive group dynamics

DREAM
To create a sustainable society... by building a community of individuals with a strong commitment to following the holistic approach to bring about change through experiments which consolidate modern thinking and technology with traditional concepts of living and working.

BIBLIOGRAPHY Suresh K; Green Marketing-Concepts and Cases: The ICFAI University Press 2006 Kothari C R; Research Methodology-Methods and Techniques: New Age International Publishers 2008 Special Edition of Companion-Quarterly Commerce bulletin of St Josephs College, Irinjalakkuda 2004(Dr C Ganesh-Environmental Marketing: Challenges and Thrusts) Web:

QUESTIONNAIRE We are Jishad A S & Rekha K G (MBA Students of DCMS, University of Calicut).This Questionnaire is for the purpose of conducting project work with regard to the Study of Level of Awareness, interest and desire of people about Green Marketing. We will be grateful if you could fill this questionnaire and help us to complete our project work successfully. The study is purely academic and we assure strict confidentiality of the subject.
1. As per studies conducted worldwide it has been proved that there is a gradual rise in temperature over various years. What is your opinion? Disagree Agree

1 4 4

2 5 5

3

2. What do you think is the reason for the rise in temperature

Strongly Disagree a)Deforestation b)Pollution c)Building Construction d)Emissions e)Others(specify)

Disagree

Undecided

Agree

Strongly Agree

3. It has been observed by climate specialists that the cyclical flow of climates has been broken and duration of seasons has become unpredictable. What do you think? Strongly Disagree Disagree Agree Strongly Agree 4. Have you witnessed any variation in rainfall Complete No change change 5. Moderate change Slight change Negligible change Undecided

Studies show that many rivers have dried because of excess sand extraction. Has it affected you in any of the following way:Directly Partially Neutral Slightly

Aspects Water source Occupation Location of house Eating habits

not at all

6. Do you believe that choice of home appliances or maintenance of vehicles has any impact on environment of earth. Disagree Agree

1 5

2

3

4

7. Does the use of fertilizers and pesticides have the following effects: Definitel y a) Reduced fertility of top soil b) Reduction in organisms and plants c) Changes in chemical combination of soil d) Polluting nearby water bodies e) Others(specify)……………………………… 8. Do you think general human activities have any impact on the changes in climate, water and soil conditions of the earth? Mayb e Never

Disagree Agree 1 5 2 3 4

9. Evaluate the following functions of forest on the basis of their importance: Very important a)Providing wood for furniture Important Uncertain Least important

Not related

b)Providing fuel for fire c)Providing air for respiration d)Prevent soil erosion e)Provide habitat for various species f)Others(specif y)

10.Are you making any changes in your following habits:

Always a)Switching off lights & fans after use b)Turn off vehicles while in a traffic jam c)Close water taps not in use d)Maximum utilization of natural light & wind e)Use rainwater for gardening & washing f)Others(specify)

Freque ntly

Occasion ally

Rarely

Never

11. While constructing a building , how much the following factors make a negative impact on nature:

Very much a)Change in topography b)Extraction of non-renewable resources c)Consumption of energy d)Water consumption e)Inorganic waste disposal f)Emissions g)Others(Specify………………………. .)

Much

Neutr al

Not much

Not at all

12. Are you ready to

Very much a)Maintain the existing landscape while constructing a house b)Substitute renewable resources instead of nonrenewable ones c)Reduce the energy consumption for the sake of the nature d)Minimise the wastage of water e)Take steps to reduce generation of inorganic wastage

Much

No opinion

Not much

Not at all

f)Take steps to reduce emission 13. “Green Marketing” is a term related to:

Stron gly agree a)Creating & increasing greenery b)Advertising products with ecofriendly label c)Avoiding the detrimental impact on environment d)Minimising impact of consumption activities on environment

Agree Undeci ded

Disagr ee

Strongl y disagre e

14.If you are making any renovation in your house or constructing a new house what aspects will you consider: Mainly consider a)Quality b)Cost c)Peer group opinion d)Environmental friendly features e)Location f)Appearance Moderately consider Least consider

g)Others(Specify………………………… …)

15. Are you familiar with the “Green Building” concept? Very much not at all Much not much

16. How do you come to know about ‘Green Building’. Media Socialworkers Friends Advertisements Others...

17.How much importance you attach to the following aspects in Green Building. (Distribute each out of 100points) (a)External greenery………………………………………………………. (b)Internal greenery……………………………………………………….. (c)Use of natural building materials………………………………… (d)Water frontage………………………………………………………….. (e)Air ventilation…………………………………………………………… (f)Lighting………………………………………………………………………. (g)Any other…………………………………………………………………… 18. What are the changes to the following aspects by adopting a ‘Green Building’

Increases (a)Cost (b)Beauty (c)Convenience (d)Peer group acceptance

Remains same

Decreases

(e)Contribution to society (f)Comfort (g)Safety and Security 19. Factors that may attract you towards adopting ‘Green Building’:

Attracte d a)Closeness to nature b)Tax benefits c)Peer group pressure d)Responsibility towards future

Undecide d

Not attracte d

Never attracts

e)Reduction in living cost
e)Others(specify) …………….

20. Factors that prevent you from adopting ‘Green Building ‘ : 1 Least a)Cost b)Convenience factor c)Less marginal benefits on investment d)High maintenance expenses e)Less knowledge about it f)Safety and Security of the house g)Others(Specify……………………………… ………) 2 3 4 5 Most

21. Factors that influence the choice of a builder: 1 Leas t a)Experience b)Cost c)Ratings by authorized agency d)Company image e)Innovation f)Social responsibility g)Others(Specify…………………………………) 2 3 4 5 Mos t

22. Personal Profile

(a)Name (b)Age (e)State (c)Location (d)City

(f) Educational qualification (g) Occupation below 50,000 00,000

(h) Monthly Income 50,000- 75,000 75,000- 1, Above 1,

00,000

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