REVIEW OF RELATED LITERATURE AND STUDIES

This chapter consists of information culled from studies and literature, both local and
foreign, from which this particular study is premised. This will certainly help in giving the
reader a better understanding of what green marketing is and how corporations use this as a
marketing strategy in selling their products.
Foreign Literature
An increasing number of consumers have voiced their concerns for environmental
deterioration. The environment is not what it used to be a hundred years ago. Because of careless
activities by humans, the environment has been constantly and continuously corrupted. Specific
causes for concern about the environment degradation due to varied technological and
production processes, pollution of air and water, and endangerment and extinction of species
critical to human sustenance and aesthetics, population explosion, resource depletion, over
harvesting of natural resources and the general degradation of social environment due to
impairments of the physical environment (, 1992; , 1992).
Consumers have had enough of these wrongful practices and hence, consumers are now
actively seeking environmental performance in the products and services that communicate
environmental responsibility and stewardship ( 1999). In major international markets, consumers
are demanding that firms produce increasingly higher quality products and services that are
consistent with societal and environmental values if they wish to remain competitive in global
markets ( 2000). Hence, consumers have become more discriminating...for green products and
services (, 2001). A study shows that 66% of respondents have switched product brands in an
effort to obtain more environmentally sound products (, 1995). The general public is concerned
about the environment and that the majority of people see the integration of environment and
economy as a win-win scenario (, 1996). As consumers demand more green products and
services, corporations are finding the going green makes good business sense as well as good
environmental sense ( 1997). Stakeholders, such as suppliers, government agencies, and other
strategic partners, as a result, become much more concerned with the corporations overall
reputation when selecting firms to create alliances ( , 1996).
Because of the new trend in green products and services, green marketing represents both
a vast opportunity and a potential minefield to all kinds of businesses (1999). Companies
worldwide have used green marketing to bolster market share. Green marketing is a global
development especially in industrialized countries. With growing consumer awareness
throughout the world, green marketing ...will become a powerful force in society ( 1996).
As more and more consumers are realizing the magnitude of this movement, corporations
are jumping on the green bandwagon for a variety of reasons such as 1) cost cutting via waste
reduction and increasing efficiency of operations 2) stay ahead of increasingly tough
environmental regulations and enforcement policies and 3) improve corporate image and public
relation (, 1999). Stressed manufacturers who can produce substitute for existing products...are
likely to succeed ( 1998).

There is a growing evidence that suggests that enhancing environmental performance is

both socially responsible and rational and builds the corporations reputational advantage (,
1997). Further, there is a strong support that being a good environmental steward helps creates a
reputational advantage that leads to enhance marketing and financial performance. Monsantos
CEO suggests that environmental sustainability, defined as the ability of a business to operate
without degrading the future integrity of the natural environment, is a core strategy designed to
enhance long-term corporate performance (1997). Companies that treat environmental issues as
bottom-line concerns will prosper in an era when consumers and governmental mandates will
force them to comply with a clean and green ethics ( 1996).
As companies become better environmental citizens, they have discovered that sound
environmental policy makes them more profitable. If they pollute less, they are subject to less
fines and waste less raw materials and by-products. If they use less packaging, they lower the
cost of the product and boost its profitability. If they reduce the amount of materials needed to
make a product, the same result is achieved. The German manufacturer AEG boosted sales 30
percent in 1989 ( in six months) after it introduced a washing machine that used less detergent
and energy (, 1996).
As the current trend goes to green, several interesting green marketing facts are worth to
mention. First, the number of green products in the US more that doubled since the early 90s ( ,
1997) second, sales of these kinds of good in the US have tripled since 1991 and now exceed
$100 billion each year (, 1998). Third, since 1996, green product introductions have grown from
8.9% to 10.0% in 1998 (, 1998). Fourth, in 1991, in Business magazine counted 11 green
retailers in the US but five years later, at least 400 environmental product retailers with such
names as Earth General and Ozone Brothers have established all over the nation...including
counterparts on the World Wide Web ( 1998).
The United Nations Environmental Program has enlisted major multinational companies
in improving environmental reporting. Industrial environmental reporting is seen as a long-term
ongoing process
Local Literature
Since the start of the 1990s, more and more people are becoming aware of the spreading
environmental degradation. And it seems that companies are now taking notice of societys
changing lifestyles. Firms such as Coca-Cola, Philips, and Body Shop are integrating
environmental issues into their marketing strategies. Even the government is jumping on the
bandwagon by making environment-friendly legislation, such as the Clean Air Act. In addition,
non-governmental organizations (NGOs) like Green Peace, PRIME (Private Sector for Managing
the Environment), and Haribon are formed to do advocacy work... In the end, education is the
key. Teachers and students realize that damage to the environment is irreversible. Now is the
time to build up environment consciousness before it is too late. As one green marketing student
remarked, We just scratched the surface herethough we became more aware of the industries
and businesses environmental responsibilitieswe should have more hands-on experience. (,
October 2000)

Foreign Studies
Based on the study of , Effects of Environmental Concern On Attitudes and Behavior of Female
Cosmetics Buyers: An Exploratory Study, the factors influencing purchase of consumers are brand
name, minimal and disposable packaging, attractive packaging, non-animal testing, natural
ingredients price, packaging with recycled content. The fact that attitudes seem to be changing in
favour of the environment suggests that personal influences (beliefs and attitudes) play a big part in
influencing consumer-purchasing behaviour. The majority of (Baruch College Female Students)
BCFSs feel natural ingredients are safer than synthetic ingredients. 2)9 percent strongly agree, 33.1
percent somewhat agree, 32.4 percent are neutral, 2.1 percent somewhat disagree, and only .7
percent disagree when asked it they felt that natural ingredients were safer than chemical
ingredients. However, as was seen in table 4.5, only .7 percent and 1.4 percent responded that they
use natural ingredient cosmetic products -The Body Shop and Perscriptives. 18.6 percent reported
using Revlon, a cosmetic line that is not traditionally natural but one that has discontinued animal
testing, and has reduced packaging.
The numerous companies and firms that have acted with more environmentally
responsible behavior have reaped the benefits of increased profit and better public relations. With
the implementation of governmental regulations, mandatory environmental measures have
provided incentives for innovation and higher environmental performance. Government
intervention in the marketplace through public purchasing can stimulate improvement and
innovation, thus supporting
industry's competitive advantage.
Green marketing is both a different marketing concept than the traditional model and it is
growing in importance on a global scale. Businesses must be aware that in implementing
a green marketing policy the entire organizational structure must be involved in the process.
Failures provided in the paper highlight problems that can occur when businesses do not
implement an overall GM strategy. Businesses should continue to pursue sustainability and not
be able to excuse themselves from acting by stating that market forces can do nothing to improve
the environment. According to , "Only business has the resources of technology, finances and
organizational competence to implement the necessary changes. (, p 155).
Local Studies
Given the new interest in developing "green consumer" markets, there is considerable
potential to cultivate this young market through educating the consumers about the advantages of
Non-Wood Forest Products NWFPs and their production. Training materials and informal
education systems should be developed which will improve marketing skills and
entrepreneurship of NWFP producers, including those of cooperatives. At the national level,
government officials also need to have more familiarity with the market forces that affect

communities, and policy-makers need an understanding of these basics in order to know which
polices create a conducive business environment for sustainable exploitation of NWFPs.
Workshops and seminars can help to target these groups.