Sustainable development trend: Green Marketing

Consumers today have the opportunity to access more information thanks to the development of the Internet, so their decision-making process to buy products is also becoming more and more rigorous. This is demonstrated through the impact of the environment and sustainable practices of the business on customers' purchase intention. That is why many of the most successful and successful brands in the market today are pursuing green marketing strategies.

So, What is Green Marketing?

According to the American Marketing Association (AMA), “Green Marketing” are marketing activities for a product or service based on environmentally friendly factors or perceptions. That is why Green Marketing is associated with marketing activities that are beneficial to the environment. For example, in production, a production process that minimizes the impact on the environment will be applied, such as reusing water, building wastewater treatment systems, using renewable energy sources, and reducing gas emissions - CO2 which is released into the environment. Regarding products, the product will be designed to be environmentally friendly, limit the use of too much packaging or difficult-to-decompose packaging materials, avoid the use of toxic materials, and use renewable materials, and the product life cycle is long, can be used for a long time or reused.

Green marketing stimulates green consumption behavior by encouraging consumers to contribute to the future of the planet by purchasing green products that have less impact on the environment, thereby reducing the generation of pollution. In addition, green marketing is also an expression of social marketing, which is part of a new marketing approach that not only focuses, adjusts, or enhances existing marketing thinking and practices, but also seeks to solve problems between social, ecological, and marketing subjects in the present.

What leads to the growth of Green Marketing?

In recent years, concerns about environmental pollution, global warming, and non-renewable energy sources have been much debated. According to the National State of the Environment Report for the 2016-2020 period of the Ministry of Natural Resources and Environment of Vietnam, currently the national energy supply is mainly based on hydropower and coal or oil thermal power, not focusing on the development of renewable energy sources. Regarding climate change, in the period 2016 - 2020, the weather and climate in Vietnam have many unusual developments. Average temperatures in many areas of the country tend to be the highest on record. From the obvious degradation of the environment, consumers are increasingly paying attention to products that are beneficial to the environment, and consumers' attitudes toward green products have also increased significantly.

In many parts of the world, governments and related agencies have continuously issued environmental regulations to promote public interest in the variability of natural factors while clarifying that business activity must be associated with the environmental responsibility of businesses. Government pressure is exerted to push businesses to adopt environmentally friendly methods such as accessing resources, operations, and marketing instead of traditional methods. To solve the above problem, many businesses of different economic types have gradually incorporated green marketing into their operating strategies.

The trend of green consumption is no longer a new concept, especially after the COVID-19 pandemic. The survey results of the IBM Institute for Business Value (IBV) in 2021 show that 90% of survey respondents said that the COVID-19 pandemic has changed their perspective with issues related to the environment and sustainable consumption. Moreover, consumers also limit the use of products from businesses that have adverse effects on the environment or have unfriendly ingredients. Besides, according to the research results of Nielsen Vietnam, the growth rate of brands who commit to "green" and "clean" has a relatively high growth rate - about 4%/year, and about approximately 80% of Vietnamese consumers are willing to pay higher prices for environmentally friendly products.

Green Marketing factors

Green packaging

Green packaging is one of the green brand elements that consumers can see and locate in their minds. Since most customers will often make product reviews based on first sight, therefore, businesses are more proactive in designing green packaging in many aspects, such as changing packaging materials, adding recycled and eco-labels or using easily recyclable materials,... Some brands have made a strong impression on consumers when their designs are environmentally friendly, all packaging is made of eco-friendly paper, no plastic lamination, and product bottles can be recycled,...

Products with green design will often make a strong impression

(Source: https://cocoonvietnam.com/)

Green image

One of the sustainable promotion strategies is brand positioning, through campaigns, businesses need to show consumers sustainable values, believe in businesses that really care about environmental issues. All products/services of businesses need to be consistent, oriented towards environmental issues, with a green brand positioning and need to obtain certifications as well as cooperate with green organizations.

In this case, businesses will create their own values and differentiate them from competitors, creating outstanding advantages. Thereby, consumers can easily identify the business through the unique messages and values that the product/service conveys.

Products in cooperation with international green organizations receive a lot of support from consumers

(Source: https://cocoonvietnam.com/)

Green price

A company should highlight how a green product or service can save consumers. For example, an auto company might advertise its newest vehicle by highlighting its fuel economy relative to other leading car brands.

This allows consumers to actively advocate for sustainability. They are aware that their choice is to invest in something that will allow them to save money and resources in the future, rather than making a short-term purchase.

For example, the Tide Cold Water Clean product is advertised as an effective stain remover, as well as a way for consumers to save on their utility bills. On the Tide website, this detergent as a concentrate can help save money because there is no need to wash clothes in warm water.

Product image of Tide Cold Water Clean

(Source: https://tide.com/)

Green logistics

Green logistics is one of the activities that businesses use to reduce ecological activities. From production, transportation to consumption. Businesses often use measures such as upgrading production systems to reduce pollution, building filtration systems, etc.

Ajinomoto's factory with the goal of ending plastic waste in the environment by 2030

(Source: www.ajinomoto.com.vn)

Eco-friendly product life cycle

Understanding that a green marketing campaign will ensure that all aspects related to the environment, from the manufacturing process to unsustainable disposal practices that can endanger both the environment and human health.

Businesses need to meet 3 criteria such as: Reduce (reduce input materials), (Reuse) use containers multiple times, (Recycle) have the ability to recycle into another product.

The 3R rule is considered the leading standard with green products

(Source: www.vinausen.com)

The importance of Green Marketing

The fact that more and more people are interested in protecting the environment will be a great motivation for businesses to develop green marketing strategies. On the other hand, this green marketing trend will also contribute to spreading knowledge and stimulating consumers towards green products that protect the environment. Gradually, this influence will create a green community with the goal of sustainable development and effective use of existing resources to improve the current alarming environmental situation. Therefore, Green Marketing is not only a marketing trend, it is also a solution for future generations, contributing to consolidating a truly sustainable development. It’s noticeable that not only businesses but universities also aim to educate the market with green criteria. With the goal of becoming a multidisciplinary and sustainable university, UEH has implemented the UEH Zero Waste Campus Project with the message "Rethink and Be Green". Furthermore, UEHers can also spread positive values about sustainable lifestyle, saying no to waste, raising awareness about environmental protection, encouraging UEH students to become green citizens, to reach that global message, we must be aware and act from the smallest things.

Picture of Green Citizen Day activity

(Source: https://ueh.edu.vn/)

These are the remarkable efforts of UEH in applying Green Marketing to propaganda and education campaigns towards sustainable development. With the strong influence of universities in general and UEH in particular, the trend of green marketing will grow and become more popular.

References:

1. Moit.gov.vn | 05/10/2021 | Tiếp thị xanh thúc đẩy doanh nghiệp phát triển bền vững | https://moit.gov.vn/phat-trien-ben-vung/marketing-xanh-diem-khoi-dau-cho-chien-luoc-quoc-gia-xanh-ben-vung.html

2. ajinomoto.com.vn | Quy trình xử lý nước thải tại nhà máy Ajinomoto | https://www.ajinomoto.com.vn/vi/hoat-dong-moi-truong-cua-cong-ty-ajinomoto-viet-nam/bao-ton-tai-nguyen-nuoc/quy-trinh-xu-ly-nuoc-thai-tai-nha-may-ajinomoto

3. future.ueh.edu.vn | 24/01/2022 | Dự án “UEH Zero Waste Campus” – Nhìn lại hành trình tiên phong trong lối sống xanh và bền vững tại UEH năm 2021 | https://future.ueh.edu.vn/chi-tiet-phat-trien/du-an-ueh-zero-waste-campus-nhin-lai-hanh-trinh-tien-phong-trong-loi-song-xanh-va-ben-vung-tai-ueh-nam-2021/

4. ueh.edu.vn | 24/10/2022 | Ngày hội Green Citizen Day - Nơi những “Công dân UEHer xanh” hành động vì một tương lai phát triển bền vững | https://ueh.edu.vn/cuoc-song-ueh/tin-tuc/ngay-hoi-green-citizen-day-noi-nhung-cong-dan-ueher-xanh-hanh-dong-vi-mot-tuong-lai-phat-trien-ben-vung-59298

News, photos: Department of Student Affairs UEH