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CHAPTER ONE

INTRODUCTION
1.0 BACKGROUND
Companies generally exist to produce goods and services that satisfy consumers or individual
needs and wants. They do this after they have conducted a thorough research into the market
to identify problems that they think would be solved by producing such products. Most often,
marketing oriented companies seek to produce to satisfy the consumer so that they can be
making profit from them through long-term relationship.
However, not all companies produce to satisfy the consumers fully. Not all understand the
basic concept of satisfying the consumers. Marketing is made of various activities which all
must be coordinated and implemented to satisfy the consumer and to keep them safe in their
environments.
The world of business is being affected and influenced by different major changes in the
external environment which affect the buying behavior of customers. One of the most
important factors to consider is the issues regarding the environment particularly regarding
the global warming or climate change.
Most companies actually produce to satisfy the consumer needs but ends up destroying or
polluting the environment. At most times, companies normally concentrate on making the
products available to the consumer, forgetting the impact their product will have on the
environment. Some products provide solution to consumers need but ends up harming the
same consumer or someone else. This has raised issues concerning how companies can
operate in an environmentally friendly manner. Consumers are now patronizing product that

seem to be environmentally friendly and that does not affect them in any way. Hence, there is
the need for companies to adopt the green marketing concept.
People are now getting more awareness about the damages that chemicals and industrial
gases are causing to the environment .this is disturbing the natural balance. They are now
prepared to pay more and use products that are green and that will not cause any damage to
them and to the environment. Consumers now are thinking of their living standards and
quality life. For this reasons most companies are now adopting various strategies in order to
be green in their activities. For example, Fanmilk Ghana Limited has a recycling symbol on
their packaged product that implies the product is recyclable therefore sustaining the
environment.
The issues of green marketing have led to the establishment of green movements which are
there to protect the environment. In fact, there are governmental and non-governmental
regulatory bodies that protect consumers against damages.

1.1 STATEMENT OF THE PROBLEM


In the past consumers showed little or no concern about the well-being of their natural
environment. Only a few of the people were concern about the environment. Resources were
not seen as scarce, pollutions were poorly acknowledged and people (consumers) had a short
term perspective. It is evident from the current societal climate and surroundings in Ghana
that stakeholders have begun to take environmental consideration more seriously. Ghana had
been a highly polluted country with degraded environment, though low in industrial
activities. However, many activities of most companies then polluted and damaged the
environment and also caused harm to the consumers as well. Today, there is a growing

awareness that is affecting everyone. Consumers are now becoming aware of the need to
protect the environment and to protect themselves.
Consumers are also now prepared to pay any amount for products or services that are green.
They are also associating with companies that undertake green activities in their processes,
management and products.
This cross cultural study comparing consumer responses to green products in Ghana, attempts
to bring some clarity to a number of facts relating to how consumers focus on different
aspects of green products when they made purchase decision.

1.2 PURPOSE FOR THE PROJECT


Environmental pollution is a major problem confronting a nation and affecting (consumers)
negatively. A huge portion of this comes from the companies and other portion coming from
the individuals mishandling of products. Basically, the rationale behind this is the companys
ignorance of considering the safety of the environment, the company concentrating more on
product availability and the individuals also bad behavioral practices.
The main purpose of this work is to:

Identify the impact of green marketing on the environment.


Identify ways to green itself in terms of the green marketing mix (4Ps).
Identify ways to green itself in terms of the companys manufacturing processes.

It may be assumed that, the study will help companies to attract more customers and make
more profits. It may also be assumed that, the study can enable the company to reduce the
level at which the companys activities and products affect the environment if not totally
eliminating them.
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1.3 IMPORTANCE OF THE STUDY


It is important for companies to make effort to contribute to the safeguarding of the
environment. The study will catch up attention from stakeholders to deliberate and analyse
the issue due to climate change and the detrimental impact on the natural environment. This
study has the potential to help guide companies that need to understand the driving forces
behind their current and future customers decision making process when they interface with
green products.
This study provides many important reasons for companies why it should be practiced. The
study is important because:

It will enable the company to utilize their resources effectively and efficiently.
It will help to provide strategies for the company to green its self in their processes.
It will provide strategies to green its self in their management systems
It will also provide strategies to green its self in their development of products.
It will also indicate the impact of green marketing on the environment (either positive

or negative).
The proposed study will serve students as their reference or guide in creating their
program. It will also help students taking business related courses to adopt the best

way to go green.
The proposed study will help teachers to have deeper understanding to the said

environmentalism.
This study will be a road map for future researchers which will provide additional
knowledge and information regarding the benefits of green marketing in protecting

our environment.
This study is to help fulfill our Higher National Diploma (HND) requirement in
Marketing.

1.4 HYPOTHESIS OF THE STUDY


Hypothesis is said to be a preposition set forth as an explanation of something often as the
basis for further investigation. Green marketing is increasing due to the damage caused to the
environment; people look forward to decrease the harm done to the environment by them.
Green marketing has not entered the Ghanaian market largely but its introduction in
especially organic processing food companies and recycling may create new openings for
companies.
The hypotheses of this study are that;

Green marketing can change a companys fortune and build on its image.

Green marketing can also help attract more new customers and keep existing ones.

Green marketing enables the company to gain a competitive advantage over its
competitors.

If green marketing is well practiced by the company, then customers would be more
satisfied and environmental safety will also increase.

Consumers find the need for green products based on new technologies which have a
minimal impact on the environment in Ghana.

Consumers are ready to buy products because it is eco-friendly and bio-degradable.

Green marketing will be adopted by different companies with a view of reducing the
impact on the environment.

1.5 SCOPE AND LIMITATION


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The tasks presented in this scope of work (sow) support the researchers to help identify the
various impacts of green marketing on the environment and the various strategies that can be
adopted to help reduce environmental pollution.
The researchers identified that in the previous decades, companies operated with no concern
to the natural environment. As the companies exploited the resources, the environment was
seriously polluted. Lands, water bodies, animal lives, the atmosphere and even the customers
were very much affected in bad ways. Now the customers are realizing the importance of
keeping the environment safe. So is the company that wants to attract and maintain their
customers in the long run. This has led to most companies implementing green marketing
practices in their operations in order to stay in the competition and to avoid being wiped out.
This scope of work is for a research project to identify the impact of green marketing on the
environment. The various problems and benefits that green marketing has brought to the
companies and the environment as companies include green marketing in the operational
activities.
Work to be performed
The work performed pursuant to the research shall be designed to heighten the understanding
of how green marketing has impacted on the environment, and the identification of strategies
that can adopted to help undertake green marketing practices effectively. In addition, the
research shall attempt to determine whether the marketing mix can be manipulated in a way
to achieve a green objective.
The study shall produce a report, supporting documents and data of sufficient quality to be
relied upon by students and other interested parties or stakeholders to take decisions and as a
source of reference.

Tasks identified
All tasks must be accepted and approved by the research members as well as the supervisor
of this project work prior to the initiation of every activity in the project work.
Task 1
The researchers will conduct a literature review and collaborate with each other to develop a
work plan indicating the design of the field research fundamentals to the project. This section
of the research will require meetings and telephone calls as determined necessary by the
project supervisor. All draft work plans are subject to review by the project supervisor. The
researchers shall outline specific methods to gather and store captured data and analyzes it
appropriately. In both cases, the project supervisor and the researchers will sign off the work
plan before actual field research begins. Work plans may be amended by mutual agreement of
the researchers and the project supervisor.
Task 2
Implementation of field research: the researchers will implement the field research as
indicated in the approved work plan. The researchers shall follow all the commonly accepted
procedures for sampling respondents, capturing respondent samples and distribution of
questionnaires. The researchers will communicate with the project supervisor on the progress
of the work plan implementation in writings.
Task 3 (Analyze respondent samples)
The researchers will analyze the results from the respondent in a proper way using accepted
analytical procedure to determine the study results. The researcher will send the result to the
project supervisor for confirmation. The researchers will document the result of the analysis

and provide tools such as bar chart to make the data easier to understand and better enable
contrasts and comparisons.
Task 4 (Provide regular update to the project supervisor)
The researchers will provide progress report and participate in meetings to discuss the
progress of report when requested.
Task 5 (Draft and final reports)
The researchers will prepare and submit a report, subject to review and approval by the
project supervisor that describes the field study approach and methodology and presents the
results. The report shall present and fully document all the methodologies used and explain
findings and calculation critical to the development of conclusions about the study.
Deliverables

Papers

Printer

Photocopier machine

Exercise books

Vehicle

Computer (laptop, desktop etc)

Internet link

Pen

Pen drive

Binding machine

Cardboard

1.6 LIMITATION
The limitations of this research are only those students that have knowledge about green
marketing, individuals of the general public who have some knowledge and the management
and staffs of Fan milk Ghana limited. Only these people within this range are allowed to
participate in the research. People without adequate knowledge are exempted from taking
part of the research.

1.7 ORGANISATION OF STUDY


The study will be presented in five chapters. The first chapter presents the background of the
study, research problem, the objectives, and its importance. Chapter two will present review
of relevant literature. The methodology to achieve the objectives is outlined in chapter three.
Chapter four presents the results and the accompanying discussions. The conclusions and
recommendations are distilled in chapter five.
CHAPTER 2
LITERATURE REVIEW

2.0 INTRODUCTION

In order to address the aim of the research, it is of importance to have established a sound
literature base around which the study was built. This chapter covers the background of the
organization, its vision, mission, core value, key competitors, coverage areas, employees,
customers and its products. It also covers the historical overview and relevant literature
relating to green marketing.

2.1.0 BACKGROUND OF FANMILK GHANA LIMITED


The Company was incorporated in 1960 as Ghana Milk Company by a group of Scandinavian
investors basically to produce milk to compliment the protein requirements of the Ghanaian.
The main product of the Company at incorporation was pasteurized milk. In 1962 the
Company underwent two significant changes. Firstly its name was changed to Fan Milk
Limited, and secondly the product portfolio was widened with the change of name to include
ice cream, yoghurt and ice lollies. Fan Milk Limited became the first Foreign Company to
become Public Limited Liability in 1967 and again among the first Companies to be listed on
the Ghana Stock Exchange in 1990. The company had over 3,250 shareholders as at the end
of the year 2003, and the number is still growing according to managements. The company
provides direct employment to over 350 individuals and indirect employment to another
8,000 or more people. The Corporate head office is at No. 1 Dadeban Road, North Industrial
Area in Accra, but the company has created a nationwide presence through intricate network
of strategically located distribution outlets to make the products accessible to all Ghanaians.

2.1.1 THE ORGANIZATIONS VISION


The organizations vision is We aim to be a progressive, responsible and innovative world
class Food Company attractively rewarding all stakeholders.

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2.1.2 THE ORGANIZATIONS MISSION


The mission of the organization is We are committed to be a progressive responsible and
innovative world-class food company engaged in the production and marketing of nutritious
and refreshing products of the highest international quality at highest quality standards.

2.1.3 CORE VALUE


The organization also state We shall continuously develop a high caliber of motivational
staff with an orientation towards the achievement of excellence in all areas of our corporate
endeavors to ensure the ultimate satisfaction of our consumers, customers and other
stakeholders and thereby add to shareholder value.

2.1.4 KEY COMPETITORS


Fan milk Ghana limited does not operate in a monopoly market. The company competes with
other companies in order to attract more customers and to increase the relative market share.
The key competitors fan milk Ghana limited is;

Cocoa processing company


Pioneer kitchenware limited
Coca Cola Ghana limited

2.1.5 COVERAGE AREAS


As part of Fan Milk Limited's intrinsic distribution network, we have 7depots and 4 regional
offices which are strategically located nationwide. The depots are to help customers gain easy
access to Fan Milk and its products. The depots are Abossey-Okai, Kumasi Kaasi, Kumasi

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Krofrom, Tamale, Nungua and Fanplaza. The regional offices are North Sales Area, Western
Sales Area, South Sales Area and East Sales Area.

2.1.6 EMPLOYEES
Since the establishment if the fan milk company, it has been employing many employees to
work and to support the company to achieve its objectives. As at 24th December 2007, the
company had a total of 308 employees. As the company continues to expand annually,
management also tries to employ more employees to work in the company. As at 4 th march
2012, the company has a total of about 457 employees in the company to work to achieve the
companys objectives.

2.1.7 CUSTOMERS
Fan milk Ghana limited has a lot of customers. The company deals with many customers both
internal and external to the company. Some of the customers are within the country whilst
others are outside the country. According to sources the company provides support to those
customers that do not much financial resources so that they can also be able to work.

2.1.9 PRODUCTS
At Fan Milk Limited, there is a strong driving force to satisfy the cravings of the Ghanaian
market by producing foods that are not only high in quality, but healthy and delicious too.
The

products

belong

to

two

categories;

milk-based,

and

fruit-based.

The milk-based products consist of the wide range of ice creams and yoghurts, while
Tampico, the one and only cool and refreshing citrus fruit drink, and our iced lollies make up
the fruit-based products.

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2.2.0 HISTORICAL OVERVIEW


It could be argued that the movement began with the advent of chemical agriculture in the
early 20th century. At that time, all agriculture was "organic" because there was no other way.
Almost as soon as "super-phosphates" and ammonium began to be used, there were some
who wanted to do things the old way, without purchased inputs and machines. The term was
coined in the 1940s, though it wasn't until the "back to the land movement of the 1970s that
there were the first inklings of a "natural foods" market. The first natural foods stores that
sprung up in the 1970s sold not only the then loosely defined organic produce but also, small
supply of "old fashioned" products for the home and yard. Shoppers were encouraged to save
a bag by bringing their own. Many held weekly farmers' markets. While their numbers slowly
grew, it was not until the mid-1990s that such stores really began popping up all over the
country. By staying in business all those years until it became fashionable to "be green," they
proved there was a small but dedicated contingent would be willing to pay a little more and
put up with a little inconvenience to shop somewhere they could be confident the products
offered were in line with shared setoff ideals.

The Eco-marketplace was born. Every year since, these markets have grown by leaps and
bounds, making strong inroads with several demographics not previously associated with the
ecological movement that brought you the first Earth Day. The concept of green marketing
has been around at least since the first Earth Day in 1970. But the idea did not catch on until
the 1980s, when rising public interest in the environment led to a demand for more green
products and services. Manufacturers responded to public interest by labeling hundreds of
new products "environmentally friendly", making claims that products were biodegradable,
compostable, energy efficient, or the like.

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As we progress into the second decade of the 21st century, more products are being
reformulated or repackaged as environmentally friendly. Even more than that, young people
are starting their businesses with environment and localism in mind. Choosing to make things
that are "real", they use fresh ingredients from local farmers and create food and goods from
scratch. They are able to differentiate themselves from others by serving unique dishes and
creatively recycling objects into art. They use organic produce, not because of its impact on
the watershed, but because they think it tastes better. They use recycled goods because they
are available. Seasonal dishes are in Larger companies now realize that to capture new
market segment today and tomorrow, they need to deliver a product that is superior in some
way to its conventional counterpart instead of relying on the good intentions of others.
Suppliers realize they need to make it an easy choice for consumers.

Consumers still want to make a personal statement with their purchase decisions. The trend
towards diversified product lines has reached a saturation point where instead, people want
totally unique and handmade items. At least in the most developed world what people crave is
something real and authentic. Why select milk chocolate bar from a hundred foil wrapped
Cadburys offerings when you can get a locally made with exotic distillate water flavorings
and fair trade cocoa.
Some books may point out that green marketing is not the same as societal marketing. Green
marketing focuses on global concerns rather than those of the society, whilst societal
marketing on the hand is concern with a particular society. Green marketing strategies
focuses more on environmental issues and also concentrates on global issues instead of local
issues. Green marketing is the holistic management process responsible for identifying,
anticipating and satisfying the needs of the customers and the society in a profitable and
sustainable way. It is the marketing of products and the provision of services that are said to

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be environmentally safe. Green marketing can also be referred to as the sustainable


marketing, eco marketing, environmental marketing etc. This includes many activities like
the product variations, transformation in the manufacturing process, using recycle board or
papers for packaging and different forms of advertising.
The term Green Marketing has been used to describe marketing activities which attempt to
reduce the negative social and environmental impacts of existing products and production
systems, and which promote less damaging products and services (Peattie, 2001). As the
understanding of the interaction between businesses, society and the physical environment
has improved, so what the global society understands to be green practices and principles
for marketing has also evolved (Peattie, 2001). So, nowadays up to 2010, green marketing
includes a wide range of activities related to: product design, the manufacturing process,
Service delivery processes, packaging, construction and renovation of buildings, recycling,
and other areas such as marketing communications (Prakash, 2002).
Green marketing entered its second stage in the 1990s, when marketers started to experience
a backlash (Wong et al., 1996). Gradually, marketers realized that consumer concern for the
environment and a concomitant desire for green products did not translate into the active
purchasing behavior (Wong et al., 1996). The actual growth of green consumerism was found
to be very little and a difference between concern and actual purchase was identified
(Peattie, 1999; Crane, 2000)
People are now getting more awareness about the damages that chemicals and industrial
gases are causing to the environment .this is disturbing the natural balance. They are now
prepared to pay more and use products that are green and that will not cause any damage to
them and to the environment. Consumers now are thinking of their living standards and
quality life. For this reasons most companies are now adopting various strategies in order to
be green in their activities. For example, Fanmilk Ghana Limited has a recycling symbol on
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their packaged product that implies the product is recyclable therefore sustaining the
environment.
The issues of green marketing have led to the establishment of green movements which are
there to protect the environment. In fact, there are governmental and non-governmental
regulatory bodies that protect consumers against damages.
The American Marketing Association (AMA) held the first workshop on ecological
marketing in 1975. 1980 was the first time green marketing came into existence. AMA
defines green marketing as the marketing of products that are presumed to be
environmentally safe. It incorporates several activities such as product modification, changes
to production processes, packaging, advertising strategies and also increases awareness on
compliance marketing amongst industries. Business Dictionary defines green marketing as
promotional activities aimed at taking advantage of changing consumer attitude towards a
brand. These changes are increasingly being influenced by a firms policies and practices that
affect the quality of the environment and reflect the level of its concern for the community. It
can also be seen as the promotion of environmentally safe or beneficial products.

Ottman, J. (1998) has explained green marketing from an organizational standpoint,


environmental considerations should be integrated into all aspects of marketing
new product development and communications and all points in between. According to the
author environment should be balanced with primary customer needs. The so
called green consumer movement in the U.S and other countries has struggled to reach
critical mass and to remain in the forefront of shoppers' minds. The lack of consensus by
consumers, marketers, activists, regulators, and influential people has slowed the
growth of green products.

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According to Polonsky, J. (1994b), green marketing can be defined as, "all activities designed
to generate and facilitate any exchange intended to satisfy human needs or wants such that
satisfying of these needs and wants occur with minimal detrimental input on the national
environment." Green marketing involves developing and promoting products and services
that satisfy customers want and need for Quality, Performance, Affordable Pricing and
Convenience without having a detrimental input on the environment. The main motivations
for creating and marketing greener products are: product differentiation with the main
purpose to create a competitive advantage, become a market leader and cost savings
(Polonsky, 2001).

A study by Peter Kangis (1992), proposes that the challenges both for marketing specialists
and for consumers, raised by the concept of green marketing, are due to several issues, such
as the lack of an acceptable definition for green marketing, the absence of a clear
understanding of cause-and-effect relationships in matters affecting the environment, and the
overt and covert reasons for concern about such issues. He suggested that, in the hands of
unscrupulous marketers, green marketing can turn into green gold.

Kotler, P. and Keller, K. L. (2006) have initiated the topic by discussing about the relevance
of green marketing in the past few decades and have also discussed the explosion of
environmentally friendly products. However, according to the author from the branding
perspective green marketing programs have not been very successful. Marketers tried and
failed with green sales pitches over the last decade because of certain obstacles which the
movement encountered. The consumer behavior is such that most consumers appear
unwillingly to give up the benefits of other alternatives to choose green products.

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A research conducted by Aseem Prakash (2002) green marketing, public policy and
managerial strategies, indicates that, in addition to manipulation of the traditional mix
(product, price, place and promotion: 4Ps), the company requires a careful policy processes.
He stated that green marketing subsumes greening products as well as greening firms and that
green marketing refers to strategies to promote products by employing environmental claims
either about their attributes or about the systems, policies or processes of the company. He
made emphasis on the fact that the study of green marketing is vast, having important
implication on businesses and public policies.
An important study by Vasanthkumar N. Bhat (1993) suggests since inputs, manufacturing
processes, distribution, use and disposal methods are decided during the design stage, any
company venturing out with a green marketing program must start with green design.
Presents source reduction and waste management strategies to cut down wastes, and also
presents a method to compare green design alternatives which can provide designers with
guidance to select superior designs. As a product must meet several criteria, suggests a
concurrent rather than sequential product development approach. He concludes with tips for
top management to improve green design in their organizations.

Another study by John Grant (2008) aims to look at how companies obtain a greener strategy
and what is the future of green marketing.

A study by Elham Rahbar (et al, 2011) proposes to determine the effect of green marketing
tools on consumer's actual purchase behavior in case of Penang (Malaysia). A survey was
carried out on 250 Chinese, Malay, Indian and other races that represent the Penang
population. Factor analysis, Cronbach alpha and multiple regressions were used to identify
factors impact on Penang consumers actual purchase behavior. The result revealed that
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customer's trust in eco-label and eco-brand and their perception of eco-brand show positive
and significant impact on their actual purchase behavior.

According to the World Commission on Environmental Development (1978), Sustainable


Development is meeting the needs of the present without compromising the ability of the
future generations to meet their own needs. The common theme throughout this strategy of
sustainable development is the need to integrate economic and ecological considerations in
decision making by making policies that conserve the quality of agricultural development and
environmental protection. This is what the end product of green marketing is, environmental
protection for the present and the future generation. The development of energy- efficient
operations, better pollution controls, recyclable and biodegradable packaging, ecologically
safe products are all part of green marketing which also leads to sustainable development.

Green marketing incorporates a broad range of activities, including:

Product modification and innovation


Changes to the production process,
Packaging changes,
As well as modifying advertising.

Environmental marketing Looks at how marketing activities utilize limited natural resources,
while satisfying consumers wants, both of individuals and industry, as well as achieving the
selling organization's objectives.

2.3.0 EVOLUTION OF GREEN MARKETING


The green marketing has evolved over a period of time. According to Peattie (2001), the
evolution of green marketing has three phases:

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First phase was termed as "Ecological" green marketing, and during this period all
marketing activities were concerned to help environment problems and provide
remedies for environmental problems. Ecological was equivalent to green products;
green consumption was very low.
Second phase was "Environmental" green marketing and the focus shifted on clean
technology that involved designing of innovative new products, which takes care of
pollution and waste issues. Here there is high concern about green issues; still low
consumption of green products; companies involve themselves in using less raw
material, wasting less; corporate efforts in recycling, efficiency, corporate
responsibility.
Third phase was "Sustainable" green marketing. It came into prominence in the late
1990s and early 2000. Anticipating the continuous uprising forces of ethical and green
consumerism, scholars started to call for sustainability marketing in the late-1990s,
and that was the third stage of green marketing history (Charter and Polonsky, 1999).
Here there were changes in the production processes, technology and resourcing, and
sustainability marketing. Total quality management involves environmental issues.
Since 2000, green marketing has evolved into a fourth stage. According to Simons
and others (2006), with the implementation of more advanced technology, stricter
state enforcement on deceptive claims, government regulations and incentives as well
as closer scrutiny from various environmental organizations and the media, many
green products have greatly improve and regained consumer confidence in the green
products (Simons et al., 2006). Together, with the continuous rise of growing global
concern about the environmental quality, green marketing has gradually picked up.
Here green products and services made a comeback. Also eco friendliness or going
green became more and more popular between companies and consumers.

2.4.0 WHY GREEN MARKETING?


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As resources are limited and human wants are unlimited, it is important for the marketers to
utilize the resources efficiently without waste as well as to achieve the organization's
objective. So green marketing is inevitable.
Organizations perceive environmental marketing to be an opportunity that can be used to
achieve its objectives (Keller 1987, Shearer 1990)
There is growing interest among the consumers all over the world regarding protection of
environment. Worldwide evidence indicates people are concerned about the environment and
are changing their behavior. As a result of this, green marketing has emerged which speaks
for growing market for sustainable and socially responsible products and services.
Non Governmental bodies are forcing firms to become more responsible (Green Rep
Organization 2011)

2.5.0 BENEFITS OF GREEN MARKETING

Companies that develop new and improved products and services with environment

inputs in mind give themselves access to new markets.


Increase their profit sustainability, and
Enjoy a competitive advantage over the companies which are not concerned for the
environment.

2.6.0 ADOPTION OF GREEN MARKETING


There are basically five reasons for which a marketer should go for the adoption of green
marketing. They are:

Opportunities or competitive advantage


Corporate social responsibilities (CSR)
Government pressure
Competitive pressure
Cost or profit issues

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2.7.0 CORPORATE SOCIAL RESPONSIBILITIES


Clearly, many companies have become committed to being socially responsible. Today on
practically every companys web-site one can find corporate social responsibility reports with
titles such as "Corporate Citizenship," "Environmental Health and Safety" or "Sustainability
Report". A big amount of firms have learned to design products that are better for the
environment. As it is stated by Snider and others (2003), green marketing can be considered
a subset of Corporate Social Responsibility (CSR) strategies. Garriga and Mele (2004)
created a classification of four groups of CSR theories: instrumental theories, political
theories, integrative theories, and ethical theories. (Snider et al., 2003):
Instrumental theories include strategies for achieving competitive advantage by
making profits while also helping social causes such as philanthropic investments,
course marketing activities.
Political theories related to usage of environmental marketing while applying
government regulation in the business power.
Integrative theories focus on stakeholder management that is related to social norms
green marketing, and to the common good.
Ethical theories focus on doing the right thing for society, and include universal
human rights, environmental sustainability, and the common good.

2.8.0 GREEN MARKETING MIX


Like conventional marketers, green marketers must address the four Ps in innovative ways
and probably the 3Ps of the additional marketing mix. The 4Ps together with the 3Ps (which
are normally used by the service sectors) makes the 7Ps of marketing mix. All the marketing
mix can be used to execute the green marketing activities.

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2.8.1 PRODUCT
Entrepreneurs wanting to exploit emerging green markets will either:

Identify customers environmental needs and develop products to address these needs.
Develop environmentally responsible products to have less impact than competitors.

The product itself has to be made in such a way that it satisfies consumer and manufacturers
needs. For ecologically sustainable products to be successful, green branding attributes have
to be efficiently communicated. Most buyer decisions are influenced by the labeling, (green
labeling) that states all that makes the product green compliant.

2.8.2 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. The prices of
environmental friendly products are in some cases higher than the prices of the ordinary
alternatives. A higher price compared to the ordinary alternative can be determining factor
for some consumers, verifying the accurateness of the products green features.

2.8.3 PROMOTION
There are three types of green advertising:

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.

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Rex and Baumann (2007) suggest that green marketing could adopt and learn many tools and
techniques from traditional marketing, in order to make use of other means than labeling in
order to promote green products. Such efforts could be to address a broader range of
customers, not only targeting green consumers by promoting the environmental friendly
features of the product as one of the appeals of many. It could also be to engage more actively
in the creation of the market and make strategic use of the traditional positioning strategies of
price, place and promotion.

2.8.4 PLACE
The choice of where and when to make a product available will have significant impact on
the customers you attract. Very few customers will go out of their way to buy green products
merely for the sake of it. Marketers looking to successfully introduce new green products
should, in most cases, position them broadly in the market place so they are not just appealing
to a small green niche market.
The location must also be consistent with the image you want to project and allow you to
project your own image rather than being dominated or compromised by the image of the
venue. The location must differentiate you from your competitors. This can be achieved by
in-store promotions and visually appealing displays or using recycled materials to emphasize
the environment and other benefits.

2.9.0 GREEN LOGISTICS


Logistics is the integrated management of all the activities required to move products through
the supply chain (Murphy et al., 1995). For a typical product this supply chain extends from a
raw material source through the production and distribution system to the point of
consumption and the associated reverse logistics. The logistical activities comprise freight
24

transport, storage, inventory management, materials handling and all the related information
processing (Murphy et al., 1995). The main objective of green logistics is to co-ordinate these
activities in a way that meets customer requirements at minimum cost. In the past this cost
has been defined in purely monetary terms, but as concern for the environment rises,
companies must take more account of the external costs of logistics associated mainly with
climate change, air pollution, noise, vibration and accidents (Murphy et al., 1995).
There can be a lot of ways to minimize environmental costs within more effective logistics
process: smaller packages with more concentrated products, like laundry powder or juice, can
impact on lower transportation costs and less need of raw materials. At the same time,
company may choose shorter distribution chain, less warehousing services, fewer
intermediates, or even different and fewer transportation mode that use less fuel and cause
minimal pollution of the environment. Internet plays an important role in green strategies as
an alternative distribution channel and as alternative communication channel, and that all
cause less harm to the environment, create competitive advantage while saving total costs and
while seeking differentiation. According to Giuntini and Andel (2005), green logistics
consists of 6Rs that is recognition, recovery, review, renewal, removal and reengineering
(Polonsky and Rosenberger, 2001).

2.10.0 STRATEGIC ACTIVITIES WITHIN GREEN MARKETING


Implementation of strategies and tactics within green marketing include targeting, pricing,
design, positioning, logistics, marketing waste, promotion, and strategic alliances according
to (Polonsky and Rosenberg 2001).

2.10.1 GREEN TARGETING

25

Consumers often encourage companies to start with green products, as energy-efficient light
bulbs, ecological food or ecological clothes what cause less harm to the nature and to the
health or energy saving services. More and more consumers seek to become green and want
to pay a competitive price or even higher price for that. The target group of green products
and serviced are existing green consumers or potential green consumers who care about green
company efforts to supply with green products to the market and to provide with added-value
to consumers (Polonsky and Rosenberg, 2001).

2.10.2 GREEN DESIGN


Coddington (1993) asserts that design for the environment (DFE) has emerged as a
philosophy of integrating environmental considerations into the design process of both
product and packaging. There are two basic tenets:

The firm engaged in DFE must internalize environmental considerations and

constraints, and
The implementing strategies and tactics of green marketing include targeting, pricing,
design, positioning, logistics, marketing waste, promotion, and strategic alliances.

Firm must evaluate environmental issues systemically, in conjunction with associated


manufacturing, economic, regulatory, social, and political factors. According to RiveraCamino (2007), additional considerations inherent in DFE are:

Designing for disposal,


Designing for non-disposal (recycling),
Designing for pollution prevention, and
Designing for resource conservation.

DFE (design for environment) strongly encourages the development of ideas that would
incorporate waste reduction into production processes, recycling products and packaging, that
would make products compostable, or that would help facilitate changes in the process of
design while adding more benefits than costs to the organization (Maxwell et al., 1997). It is
26

however deemed appropriate to design to fit the environment and the consumer as well and in
a way that will benefit the organization. For this to be achieved, it is particularly important to
undertake a life cycle analysis of the products and activities which will calculate the products
total effect on a single factor such as its climate impact or water bodies. This is done by
completely studying the product from cradle to grave or from raw materials, extractions and
production processes to consumers use and disposal of the product.

2.10.3 GREEN POSITIONING


Strategic positioning is about building a picture of the market and the interrelationships
between the targeted customers, competitors and the competitive advantage. The company
should target a segment of the market where it can satisfy customers needs better than its
competitors based on the companys distinctive strength. (Chrisman 2000), (Porter 1995) also
stated that, strategic positions can emerge from three different sources. These include:

customers need
customers accessibility
range of a companys products or services

Needs-based positioning; focus on if the companys strategy is about serving most or all the
needs of a particular part of its customers.
Access-based positioning; focus on customers that is accessible in different ways, which can
be based on geography, how dense the customers are situated and so forth.
Variety-based positioning; focus on the product or service varieties rather than customer
segments. A company can base its strategic position on one or a combination of the three.
Having defined positioning, strategy can be identified as the creation of a unique, valuable
position, involving a different set of activities. A company that chooses a set of activities that
are different from its competitors, has positioned itself effectively strategically (Porter, 1995).

27

If the same set of activities would meet all demands, needs, varieties and access everyone the
need for strategic positioning would not exist as all companies would be able to perform all
activities and operational excellence would determine success.

2.10.4 STRATEGIC ALLIANCE


Staying successful in the marketplace depends on how the organization can reduce the
consumer confusion. (Crane, 1998). Therefore, if marketers of consumer goods are going to
be able to use green marketing in an effective manner they need to develop strategies to
overcome these problems. One strategy that organizations have recently adopted to make
their environmental marketing activities more effective is to form a strategic alliance with
environmental group(s) that works as nonprofit non-governmental institutions such as the
Environmental Protection Agency (EPA).

2.10.5 MARKETING WASTE


Firms might have products that cannot be reprocessed. In order to solve this problem,
companies can develop the internal process and systems that seek to minimize the waste or to
reprocess their internal waste for their own internal use.
Recycling and waste reduction. Recycling of materials and energy and resource conservation
are more plausible due to technological change. Additionally, since all natural and industrial
processes generate waste, and waste becomes pollution, it is important to find ways to
prevent pollution before it has become critical. To a large extent, companies are realizing that
pollution is a sign of inefficiency and added cost, and that waste represents raw materials not
sold in final products (Polonsky and Rosenberger, 2001).

2.11.0 THE IMPACTS OF GREEN MARKETING ON THE ENVIRONMENT


28

Environment is simply our surrounding. The increased awareness on environmental issues is


as a result of increased publicity on the media on issues such as, the warring off of the ozone
layer and increased pollution of the environment by industries. Customers have become
concern about their everyday habit and the impact it has on their environment.
Managing environmental safety issue is highly challenging, time consuming and expensive.
There are many laws on environmental safety that have made companies liable to any
wrongdoings. These laws cover areas such as, harmful pollution, managing of hazardous
materials and soon. As a result, several hazard controls, pollution control and prevention
programs are held in different parts of the world on emergency procedures, contingency
planning and employee training.
The natural environment involves the natural resources that are needed as inputs by marketers
and that are affected by marketing activities. Environmental concerns have grown steadily
during the past three decades due to the current issue of environmental pollution and global
warming; marketers have a major role to play with regards to green marketing. Consumers
are unaware of environmental friendly and therefore marketers fail to focus more attention on
greening the environment.
The processing of raw materials into finished goods involved major activities through the
emission of gas into the atmosphere. Marketers ignore the fact that satisfying consumers
needs is their priority; the environmental concern is of no use to them and their policy.
Industries will almost always damage the quality of the natural environment. Considering the
disposal of chemical and nuclear wastes, the dangerous mercury levels in the ocean, the
quantity of chemical pollutants in the soil and food supply and the littering of the
environment with non-biodegradable plastics bottles and other packaging materials, and all
these activities pollute the environment.
29

This project further research on the stands of Environmental Protection Agency (EPA) Ghana
on their views about environmental marketing, the information gathered was that, Ghanaian
Corporate bodies are not ready to be environmentally conscious.
In Ghana environmental pollution has been our major problem in overcoming it. There are
some parts of areas in Accra which has been approved by authorities as a dumping site of
refuse garbage. This signifies that Ghanaians are not ecologically healthy.
There are product packages which can be recycled but due to inadequate logistics, equipment
and necessary infrastructure put in place to help curb the situation, we tend to focus on our
customers in order to make profit.
Rapid advancement of technology has led to the detrimental effect on our environment with
respect to the chemicals used in the soil to cultivate food. The use of pesticides, fertilizers
made with synthetic ingredients poses a danger in the depletion of the soil. This is more of
concern to marketers who sell processed foods to their customers. A typical example is the
Fanmilk Ghana Limited. The company produces a variety of milk and fruit based products.
The raw materials, which are used, need to be evaluated whether it is organically or
inorganically produced. Organically produced foods help to conserve and enrich the soil
while inorganic food pollute and destroy the soil.
This has led Fanmilk Ghana Limited as a contributing factor with regards to the environment
unlike the service companies. The social responsibility of companies was taught as a tool to
address the issue of environmentalism but some marketers focus on the developmental aspect
rather than the greening of our environment.

2.11.1 THE POSITIVE IMPACT OF PRACTICING GREEN MARKETING


30

Consumers, shareholders and society - all stand to benefit when a company integrates
environmental friendliness into its marketing strategy (Zwan and Bhamra, 2003).

Reduced air and water pollution; the establishment and introduction of green
marketing has helped to reduce air and water pollution and has created the atmosphere
and water bodies safe for living creatures as well as the businesses.

Conservation of natural resources green; marketing has promote the conservation of


natural resources for companies and human beings to make use of them.

More energy reservoirs have also help companies and consumers to reserve energy
that can be used in the future for other things.

Reduced raw materials usage; reduces the use of raw materials in an unproductive
ways and encourage a better use of these materials to benefit the environment and the
things in it.

Waste management has helped to provide better strategies to control and manage
waste to avoid environmental pollution.

Conservation of animals has also provides a safe environment for animals to live in.
Since companies tend to be customer-oriented, they need to consider the health of
their customers.

The evolution of green marketing also enables effective companies or organizations to


gain competitive advantage over those which seem to be ineffective in practicing
green marketing. It encourages the company to be creative and innovative and to

introduce to the market new systems, products and services.


The introduction of green marketing also has had a great impact on consumers by
improving their health conditions through reductions in environmental pollutions.

31

If green marketing is properly implemented, it can help increase the emotional


connection between the consumer and the brand and also lead consumers to have an
increase affinity for a company or a specific product.

2.11.2 THE NEGATIVE IMPACTS OF GREEN MARKETING


According to (Handson et. al, 2004), While there are obvious benefits to integrating
environmental friendliness into consumer marketing, there are also some significant risks.
Although some of these impacts or risks may be on the consumer, most of these impacts fall
on the company practicing it.

To the company, the practice of green marketing may present financial risk and
investment as a lot will have to be put in, in order to produce environmentally friendly

products.
The difficulties of regulatory compliance and the potential for consumer backlash may

also present some risk to the company.


The introduction of green marketing has also pushed consumers into spending more to
buy a product since they want to keep the environment safe.

2.12.0 PROBLEMS WITH GREEN MARKETING


Marketers need to develop strategies which will allow them to overcome three major
problems associated with green marketing: poor credibility, consumer cynicism, and
consumer confusion (Winn and Angell, 2000)

2.12.1 POOR CREDIBILITY

32

The lack of credibility on the part of consumers is partially the result of some firms poor past
environmental performance. To ask consumers to believe the green marketing claims of a
firm or industry that has misled them in the past is a difficult task. Furthermore, many firms
have promoted their products as environmentally responsible without integrating
environmental awareness into their corporate culture. This has resulted in some firms
producing environmentally responsible products in an environmentally harmful fashion or
alongside environmentally harmful products, leading to further reductions in environmental
marketing credibility (Kangun and Polonsky, 1995).

2.12.2 CONSUMER CYNICISM


Unfortunately, in the past some organizations appeared to be simply exploiting consumers
increased environmental awareness, i.e. changing their marketing claims without modifying
their products or production process. When these gaps in corporate behavior and marketing
claims came to light, extensive negative publicity was generated, resulting in consumers
boycotting the offending companies (Kangun and Polonsky, 1995).

2.12.3 CONSUMER CONFUSION


According to Peattie and Crane (2005) a lot of companies have been trying to promote the
green image but not all have been able to guarantee that their green image is based on
honesty and trust. Some consumers do not trust green policies because of the previous cases
where companies cheated and were not quite fair to their customers while providing green
services or selling green products.

33

2.13.0 GREEN MARKETING STRATEGIES


Firms can green themselves in three ways: value-addition processes (firm level),
management systems (firm level) and products (product level). Greening the value-addition
processes could entail redesigning them, eliminating some of them, modifying technology
and inducting new technology all with the objective of reducing the environmental impact
aggregated for all stages. A steel firm may install a state-of-the-art furnace (new technology),
thereby using less energy to produce steel.
Firms could adopt management systems that create conditions for reducing the environmental
impact of value-addition processes. A good example is the Responsible Care program of the
chemical industry, which establishes systems to promote environmental, health and safety
objectives. However, management systems efficacy for greening value-addition processes is
difficult to quantify if they are not accompanied by performance measures. Thus, by having
measurable (therefore, easily monitored and understood) performance indicators, firms can
make verifiable claims about the environmental impact of their management systems.
Conceivably, consumers may reward such firms, if they can easily access and interpret such
information.
The third greening strategy pertains to products. Building on Charter (1992), this could take
place in the following ways:

Repair, extend the life of a product by repairing its parts.


Recondition, extend the life of a product by significantly overhauling it.
Remanufacture, the new product is based on old ones.
Reuse; design a product so that it can be used multiple times.
Recycle, products can be reprocessed and converted into raw material to be used

in another or the same product.


Reduce; even though the product uses fewer raw materials or generates less
disposable waste, it delivers benefits comparable to its former version or to
competing products. In addition, greening products could include designing for
34

the environment and devising new institutions to reduce environmental impact of


product use by developing systems to replace dominant pattern of private
ownership and use (as in cars) by a mix of collective and private use (through
leasing and renting).

2.14.0 OPPORTUNITIES
A 1994 study in Australia found that 84.6% of the sample believed all individuals had a
responsibility to care for the environment.
A further 80% of this sample indicated that they had modified their behavior, including their
purchasing behavior, due to environmental reasons (EPA-NSW 1994).
As demands change, many firms see these changes as an opportunity to be exploited.

2.15.0 CHALLENGES AHEAD:


The Green Movement is still in its infancy and is just starting to build trust among people
now concerned about the environment. These are people who, in many cases, are now willing
to pay more for a green product. Should that product not be green or live up to its promises,
many new green consumers will lose faith in the movement as a whole.
However, green marketing poses huge dangers for marketers if they get it wrong:

Most customers choose to satisfy their personal needs before caring for the

environment.
Overemphasizing greenness rather than customer needs can prove devastating for a
product.

35

Many customers keep away from products labeled green because they see such
labeling as a marketing gimmick, and they may lose trust in an organization that

suddenly claims to be green.


Green products require renewable and recyclable material, which is costly.
Requires a technology, which requires huge investment in R & D
Water treatment technology, which is too costly
Majority of the people are not aware of green products and their uses
Majority of the consumers are not willing to pay a premium for green products

2.16.0 CONCLUSION
Green marketing is a tool for protecting the environment for the future generation. It has a
positive impact on environmental safety. Marketers need to understand the implications of
green marketing. Because of the growing concern of environmental protection, there is an
emergence of a new market which is the green market. For companies to survive in this
market, they need to go green in all aspect of their business. Consumers want to identify
themselves with companies that are green compliant and are willing to pay a premium for a
greener life style. As such, green marketing is not just an environmental protection tool but
also, a marketing strategy.
Green marketing is still in its infancy and a lot of research is to be done on green marketing
to fully explore its potential.

36

CHAPTER THREE
RESEARCH METHODOLOGY

3.0 INTRODUCTION
This chapter demonstrates the methods employed for the data collection during the project
work. It covers the introduction of the research methodology, the sample size, the sample
frame, the data collection methods and the constraints and limitations.
Research methodology is a system of principles or methods of procedure in any academic
discipline or subject area such as education, research diagnosis or treatment. It is the methods
used in gathering all the relevant information concerning the research being undertaken. This
is to help obtain adequate information in order to achieve the objectives or purpose of the
study.

3.1 RESEARCH DESIGN


Every project requires an action plan and method for conducting a study. This project is more
prone to single cross-sectional descriptive research design.
To define the descriptive type of research, Creswell (1994) stated that the descriptive method
of research is to gather information about the present existing condition. The emphasis is on
37

describing rather than on judging or interpreting. We opted to use this research method
considering the objective to obtain first hand data from the respondents so as to formulate
rational and sound conclusions and recommendations for the study.

3.2 TARGET POPULATION


The study was conducted in Accra where Fanmilk Ghana Limited is located. The target
population for the study was employees of Fanmilk Ghana Limited and other stakeholders as
well as some members of the general public who have knowledge or ideas about green
marketing.

3.3 SAMPLE SIZE


There are a number of companies being the manufacturing and the service sectors or
industries in the world and in Ghana to be precise, most of which are into the practice of
green marketing. For the purpose of this study, only one of these companies in Ghana was
used and that is the Fanmilk Ghana Limited. The overall sampled size was 50, of which 20
were employees of Fanmilk Ghana Limited and 30 were members of the general public.

3.4 SAMPLE FRAME


The purpose of the study is to research or investigate green marketing and its impacts on the
environment. For this reason, the sample frame for the study was employees of Fanmilk
Ghana Limited, and some members of the general public which adds to the total number of
survey which were conducted.

38

3.5 SAMPLE CHOICE


The sample choice for this study is a probability sampling technique. A random sampling
technique was used. This allowed each member of the sample to be randomly selected to
answer the questionnaires and to provide their views and opinions about the topic.

3.6 SOURCES OF DATA


In other for the research to obtain adequate data the researcher uses primary and secondary
data. Secondary data are information collected for other research work other than the study
which has been undertaken but has some relevance with the study. Some secondary sources
consulted are published books, articles on packaging, newspaper, pamphlets and other
materials from other people on the subject. Secondary data are interpretation of primary data.
Encyclopedia, textbooks, magazines and news paper articles and most news cast are
considered secondary information source. Indeed, nearly all reference materials fall into this
category. The researcher used secondary data because it is easy accessed.
Primary data is the collection of original data from a field. Primary data is often undertaken
after the researcher has gained some insight into the issue by collecting secondary data.
Primary data is collected in a research instrument designed to record information for later
analysis. The researcher used primary data because it addresses specific issues.
39

3.7 DATA COLLECTION TECHNIQUES


The researcher in collecting the data used the techniques outlined below in order to obtain
accurate data.

3.7.1 QUESTIONNAIRE
Questionnaires were structured and designed for the purpose of collecting data. They were in
written forms in such a way that everybody could read and understand before answering. The
designed questions comprised only closed ended questions. This is to make it easier for those
who will not be able to construct their own answers and also to have a particular sequence of
answers to enable an easier analysis to be made. The questions were given to people with
knowledge about green marketing to read and answer.

3.7.2 INTERVIEW
This is a qualitative approach to the collection of data. This is basically an effective way of
assessing peoples perception, meanings and understanding of situations and construction of
reality. This is normally conducted for people or individuals. The types of interview include
structured interview, semi-structured interview, and unstructured interview. An interview was
held with the Marketing Manager of Fanmilk Ghana Limited to solicit his view on the
practice of green marketing and its impacts on our environment.
On the other hand personal interview was conducted with the consumer about the
environment in terms of their purchasing behavior. There were only five participants who
were willing and had the chance to share their time and talk about their experience in buying
environmental friendly products.
40

Most of the interviewees were given time according to their convenience. The interview on
the other hand, made up the qualitative approach of the study as this focused on personal
accounts, individual insights of the respondents.

3.7.3 OBSERVATION
Personal visit was paid to the offices and premises of Fanmilk Ghana Limited. This was done
to have first hand information about the physical evidence, staff and the processes of the
companys operations, which were all forms or tools of differentiation.
This came out naturally during the research methods and enables the researcher to see things
as they were during the visit.

3.7.4 SURVEY
This is a research technique in which a researcher interacts with respondents to obtain facts,
opinion and attitudes. As part of the data collection, the researcher visited the company to
interact with customers, staff and management to obtain information for the research.
The researcher used this technique because, it gives first hand information and was easy to
obtain.

3.8 PROCESSING AND ANALYZING DATA

41

The data analysis has been done in correct form usage of current information and graph is
made in the project so as to make it easier and appropriate to understand. Total responses for
each item were obtained and tabulated.

3.9 CONSTRAINTS/ LIMITATIONS


In the course of gathering viable information for the study, so many constraints came across
that limited the amount and quality of information obtained. These constraints include
This will be the main issue of concern.
This is due to the reason that the data collection will be restricted to Accra
The time duration for doing the complete research on green marketing is very limited
because green marketing is a broad topic which requires an in-depth research and

analysis.
The financial aspect allocated for this research is inadequate.

42

CHAPTER 4
DATA PRESENTATION AND ANALYSIS

4.0 INTRODUCTION
This chapter represents the analysis of data collected, upon conclusions, deductions and
recommendation shall be based. The data presented represents discussions of the facts
gathered in the field. In order to obtain information for this study one organization was
consulted (thus Fanmilk Ghana Limited) and consumers were also interviewed.

4.1 DEMOGRAPHIC PROFILE


4.1.1 AGE DISTRIBUTION
Table 4.1 shows the age distribution of the respondents.
Age Range

Frequency

Percent

18-25

20

40

25-30

19

38

30-40

10

20

above 40

43

Total

50

100

The table above shows the age distribution of the respondents who the questionnaires were
administrated with, 20 between the age of 18 to 25 constituting 40% of the total respondents
and 19 between the age of 25 to 30 constituted 38% of the total respondents. 10 between the
age of 30 to 40 constituted 20% and also 1 above 40 constituted 2% of the total respondents.

4.1.2 GENDER DISTRIBUTION


Table 4.1.2 shows the gender distribution of the respondents.

Gender

Frequency

Percent

Male

26

52

Female

24

48

Total

50

100

The table above shows the gender distribution of the respondents who the questionnaires
were administrated with, 26 males constituted 52% of the total respondents and 24 females
constituted 48% of the total respondents.

44

4.1.3 EDUCATIONAL BACKGROUND


Table 4.1.3 shows the educational background of the respondents.

Educational level

Frequency

Percent

Higher education

15

30

Graduate

29

58

Postgraduate

10

Basic level

Total

50

100

The table above shows the educational background of the respondents who the questionnaires
were administrated with, 15 with higher education constituted 30% of the total respondents
and 29 graduates constituted 58% of the total respondents. 5 who are postgraduates
constituted 10% and 1 who had basic level of education constituted 2% of the total
respondents.

4.2 RESEARCH QUESTIONS


Q1. ARE YOU FAMILIAR WITH THE CONCEPT CALLED GREEN MARKETING?
45

Figure 1.
80
70
P
E
R
C
E
N
T
A
G
E

60
50
40
30
20
10
0
yes
no

The above bar graph indicates that out of 50, 40 respondents representing 80% are familiar
with Green marketing. The remaining respondents have a misconception with the term Green
marketing. This again indicates that majority of the respondents have knowledge about the
concept Green marketing and as a result made information gathering easy.

Q2. DO YOU THINK GREEN MARKETING IS A CONCEPT THAT MUST BE


PRACTICED BY EVERY ORGANISATION?

Figure 2

46

80
P
E
R
C
E
N
T
A
G
E

70
60
50
Percent

40
30
20
10
0
Yes

No

From the bar chart we can say that most of the respondents that is 78% think that Green
marketing must be practiced by every organization.

Q4. GREEN MARKETING HAS AN IMPACT ON THE ENVIRONMENT.


Figure 3.

80
P
E
R
C
E
N
T
A
G
E

70
60
50
40

Percent

30
20
10
0
TRUE

FALSE

76

24

47

In the above bar chart, it clearly indicated that 76% of the respondents said Green marketing
has an impact on the environment while 24% have different opinion.

Q5. HOW DOES GREEN MARKETING IMPACT ON THE ENVIRONMENT?

Figure 4

70
P
E
R
C
E
N
T
A
G
E

60
50
40

Percent

30
20
10
0
positive

positive and negative

We can say that out of the 50 respondents, 32 respondents said Green marketing has a
positive impact without any negative impact on the environment. Meanwhile, 18 respondents
suggested that Green marketing has both positive and negative impact on the environment.

Q6. WHICH AREA OR AREAS OF THE ENVIRONMENT DOES GREEN


MARKETING HAVE AN IMPACT ON?
Figure 5

48

50
45
40
35
30
25
20
15
10
5
0

P
E
R
C
E
N
T
A
G
E

Percent

From the above bar chart, we can say that 50% of respondents agree that these areas water
bodies, animals, consumers/customers, the atmosphere and the company/corporate bodies can
be affected by Green marketing activities while, 14% of respondents agree that
consumers/customers only can be affected by Green marketing activities. 4% of respondents
suggested that Green marketing does not have any impact on the areas shown on the chart
above. The remaining percentage of respondents have other opinions about it.

Q7. WOULD YOU SAY THAT THE PRACTICE OF GREEN MARKETING HAS
HELPED TO REDUCE ENVIRONMENTAL POLLUTION?
Figure 6

49

P
E
R
C
E
N
T
A
G
E

100
90
80
70
60
50
40
30
20
10
0

Percent

yes

We can say that all the respondents agreed that the practice of the concept has helped to
reduce environmental pollution.

Q10. WOULD YOU SAY THAT THE PRACTICE OF GREEN MARKETING HAS
HELPED

TO

IMPROVE

THE

ENVIRONMENTAL

SUSTAINABLE LIFE?
Figure 7

50

CONDITIONS

AND

90
P
E
R
C
E
N
T
A
G
E

80
70
60
50

Percent

40
30
20
10
0
yes

no

don't know

The above chart indicates that majority of the respondents thus 88% think that the concept
has helped to improve the environmental conditions and sustainable life while, 8% of the
respondents dont know its improvement.

Q17. ARE THERE ANY STRATEGIES THAT AN ORGANISATION CAN ADOPT TO


UNDERTAKE GREEN MARKETING?
Figure 8.

51

100
P
E
R
C
E
N
T
A
G
E

90
80
70
60

Percent

50
40
30
20
10
0
yes

no

The above chart indicates that, 92% of respondents think that there are strategies an
organization can adopt to undertake Green marketing while, the remaining 8% of respondents
think otherwise.

Q18. WHICH OF THESE WILL YOU CONSIDER AS THE BEST STRATEGY TO


ADOPT BY AN ORGANISATION?
Figure 9.

52

Recycling

Reuse

Recycling, reuse and reduce

None

Recycling and reuse

Recycling and reduce

10%
12%

36%

2%

2%
38%

The chart indicates that, 38% of respondents consider all of the strategies (thus recycling,
reuse and reduce) to be the best for an organization to adopt. 36% suggested only recycling,
12% suggested only recycling and reuse, 10% suggested only recycling and reduce, 2%
suggested reuse as the best strategies are the best for an organization to adopt. 2% were
uncertain about which strategy to use.

Q20. WHICH OF THESE OPERATIONAL AREAS CAN THE ORGANISATION


MANIPULATE OR MAKE CHANGES IN?
Figure 10

53

In manufacturing
Advertising
Changes in product
In manufacturing, advertising, changes in product, management systems
In manufacturing, changes in product, management systems
In manufacturing, advertising, management systems
In manufacturing, changes in product
In manufacturing, advertising, changes in product

6%

6%

10%

4%

10%
10%

4%

50%

The above chart indicates, most of the respondents that is 50% think all of the operational
areas such as manufacturing, advertising, changes in product and management systems are
factors an organization can make changes. 10% pointed out manufacturing, advertising, and
changes in product. Another 10% of respondents pointed out only advertising, 10% only
changes in product.6% suggested manufacturing only and manufacturing and changes in
product only respectively. 4% suggested manufacturing, advertising and changes in product
while another 4% suggested in manufacturing, advertising and management systems.
Q21. HOW WOULD YOU RATE GREEN MARKETING PRACTICES?
Figure 11

54

40
35
P
E
R
C
E
N
T
A
G
E

30
25
20

Percent

15
10
5
0
best

better

good

bad

Here we can see from the chart that, 36% of respondents rated Green marketing the best
strategy to practice while, 34% , 28% and 2% represents better, good and bad respectively.

4.3 ANALYSIS OF THE COMPANY (FANMILK GHANA LIMITED)


An interview was held with the brands manager of the company. The main purpose of this
interview was to know whether the company practice green marketing. Fanmilk Ghana Ltd
practice green marketing and is part of their marketing strategy to achieve its competitive
advantage. This is to minimize the environmental pollution to address the global concern.
With respect to the company, the effectiveness of green marketing has improved the
consumers confidence in the organization and thereby improved the image of the company.
In response to the question posed to the manager, about the plans and actions the company
takes to implement green marketing. The organization should educate and train its staff and

55

other stakeholders about being environmentally conscious. They also make changes to the
manufacturing and marketing processes.
The policy of the company is indulging in recycling and non disposal of the factory waste
water directly into the drains. The company must make use of the waste water in their laundry
and car wash.
The companys regular marketing techniques has harmed the environment by pollution
through emission of poisonous gases, liquid waste and solid waste.
The manager anticipated that green marketing can fetch them profit because consumers or
customers have developed a positive disposition towards the companys brand as patronise
increase profit will improve.
The companys areas of focus for bringing in green marketing as their current project is
recycling, public education by training shop assistants, agents, school children, proper waste
disposal dustbin and eco-labeling.

4.4 RESEARCH FINDINGS


1. During our observation maximum number of people are not familiar with green
marketing, so questionnaires were given to respondents who are aware of green
marketing.
2. Most of the respondents know that green marketing has both positive and negative
impact on the environment.
3. Significant number of respondents feels that green marketing has helped to reduce
environmental pollutions and improve sustainable life.
4. Respondents also agree that organizations can adopt a strategy to undertake green
marketing.

56

5. Many respondents know that recycling, reuse and reduce are best strategies an
organization can adopt.
6. Maximum number of respondents sometimes considers the environmental aspects of
the products while purchasing.
7. Many respondents feel that sometimes companies are trying to cheat the customers in
the name of green marketing.

4.4.1 FINDINGS FROM THE BRAND MANAGER (FANMILK GHANA LTD)


1. The company does practice green marketing.
2. They recycle their packaged products.
3. The company has not position itself as advertising on environmentally friendly
product.

CHAPTER 5
SUMMARY, CONCLUSION AND RECOMMENDATION

5.0 INTRODUCTION

57

This chapter covers the summary of the findings, the conclusion and the possible
recommendations suggested by the researchers based on data gathered from the research.

5.1 SUMMARY
In summary, it is concluded from the findings and analysis that the choice of any company,
whether it is green or conventional, Price is the most important factor. The results show that
consumers are conscious about environment and are willing to pay extra for Green products.
The green companies should educate their consumers about benefits of environment friendly
ways of operating and should introduce innovative products or services. According to the
survey results, it is concluded that when consumer makes decision they do not consider only
the product, but they also keep other factors in mind.
There is now a real sense that environmental protection is highly necessary. Everyone
believes a green life is a better and healthier life for present and future generation. Most
consumers spending pattern shows that they have a desire for brands that go green.
Consumers not only want to buy their products but are willing to pay more for it. Based on
research, 80 percent are willing to pay a premium price for environmentally products.
Consumers are motivated to buy from companies that are eco-friendly in production. When a
company displays the green logo on their product, it shows that their product or services
stands out from their competitors that give them a competitive edge.
The findings also suggested that green marketing have both positive and negative impact on
the environment. It was also identified that majority of the impacts were positive whilst only
a few were found to be negative.
An interpretation of whether companies have possible strategies that they can adopt revealed
that, companies have wide varieties of strategies to be used to their advantage. These
58

strategies as identified in the analysis could be that, the company can manipulate the
marketing mix (that is, product, price, promotion and place (4Ps)) to actually go green.
As such almost 100% of the respondent pointed out that, there are possible solutions that can
be adopted. Findings also revealed that, most of the companies are now practicing the
concept green marketing because they have realized that consumers are now showing concern
to the environment. Most importantly, the environment will be preserved and conserved
through the practice of green marketing.

5.2 CONCLUSION
Green marketing covers more than a firm's marketing claims. While firms must bear much of
the responsibility for environmental degradation, the responsibility should not be theirs alone.
Ultimately green marketing requires that consumers want a cleaner environment and are
willing to "pay" for it, possibly through higher priced goods, modified individual lifestyles, or
even governmental intervention. Until this occurs it will be difficult for firms alone to lead
the green marketing revolution. Having said this, it must not be forgotten that the industrial
buyer also has the ability to pressure suppliers to modify their activities. Thus an
environmental committed organization may not only produce goods that have reduced their
detrimental impact on the environment, they may also be able to pressure their suppliers to
behave in a more environmentally "responsible" fashion. Final consumers and industrial
buyers also have the ability to pressure organizations to integrate the environment into their
corporate culture and thus ensure all organizations minimize the detrimental environmental
impact of their activities. Thus green marketing should look at minimizing environmental
harm, not necessarily eliminating it. Green marketing covers more than a firm's marketing
claims. While firms must bear much of the responsibility for environmental degradation,
59

ultimately it is consumers who demand goods, and thus create environmental problems. One
example of this is where Fanmilk is often blamed for polluting the environment because
much of their packaging finishes up as roadside waste. It must be remembered that it is the
uncaring consumer who chooses to disposes of their waste in an inappropriate fashion. While
firms can have a great impact on the natural environment, the responsibility should not be
theirs alone. It appears that consumers are not overly committed to improving their
environment and may be looking to lay too much responsibility on industry and government.
Ultimately green marketing requires that consumers want a cleaner environment and are
willing to "pay" for it, possibly through higher priced goods, modified individual lifestyles, or
even governmental intervention. Until this occurs it will be difficult for firms alone to lead
the green marketing revolution. It must not be forgotten that the industrial buyer also has the
ability to pressure suppliers to modify their activities. Thus an environmental committed
organization may not only produce goods that have reduced their detrimental impact on the
environment, they may also be able to pressure their suppliers to behave in a more
environmentally "responsible" fashion. Final consumers and industrial buyers also have the
ability to pressure organizations to integrate the environment into their corporate culture and
thus ensure all organizations minimize the detrimental environmental impact of their
activities.

5.3 RECOMMENDATION
It is suggested that green marketing will help to sustain the environment and as such will
again help to attract more customers or consumers who are environmentally conscious to pay
a premium price for an organizations products and services. Green marketing is found to be
very important. Most companies have realized the importance of this and have taken

60

advantage of it. On the other hand, some few companies are being reluctant to employ this
concept in their operations. Based on the findings, it is recommended that:

Better ways must be established to get the consumers to help in the practice of green
marketing and keeping the environment safe from pollution. This could be done by
probably indicating an illustration on the product label to suggest that the used
product must not be disposed anyhow. Dust bins must also be placed at vantage points

where used products can be dumped.


Educate the masses of the environmental issues because they are going to be bulk
consumers. Education is of high importance because without it there will still be
ignorance in knowledge. Those who are ignorance must be educated about the

importance of green the environment.


Pressure groups must be established to demonstrate against bad environmental
practices from corporate bodies. This is because bad environmental practices can

affect every element of the environment.


Planting of more trees. There should be planting of new trees and replanting of cut out
trees to the environment in the original nature. Improper digging must be stopped

The company must rethink:

Their raw materials must be sourced at areas that provide good materials and

procurement strategies must be adopted.


Developments of new products from old ones that are suppose to be dumped. In doing
this more products can be produced at a lower cost. This should be done by
redesigning the existing products and services to meet the environmental conditions
and needs. It should be noted that pollution prevention can be a cost and time saving

activity.
The company should steer their product and packaging designs to use less materials.
Materials used in producing the products must be indicated on the label, the usage

61

directions, and side effects must be stated in order to keep the health condition of the
consumers. Awareness must also be created to draw the attention of any new changes

to the consumer through advertising and public relations.


There should be enough investment of resources in the areas of research and
development to facilitate more relevant information on innovative and modern ways
of production and how its competitors are operating. Competitor intelligence must be

conducted on close competitors so that much can be learnt from them.


Recycle at every level. In order to maintain the nature of the environment and to keep
it safe from bad or harmful substances, manufactured products must be created in a
way that they can be recycled. Products must be traced to identify how they are being
used and being disposed. Those that are wrongly disposed must be collected from the
environment and taken to the company where they can be recycled, by melting and
molding them into a different thing all together. The collection can probably be done
by employing or better still hiring some people to be doing that. The newly molded
products from the disposed products can be used as a supplement to another product

to differentiate the offerings from others.


Socially responsible by investing in environmentally driven products. Resources are
taken from the environment and processed to produce products which are then
brought back to the consumers to be purchased. Organizations must deem it high to be
socially responsible to those societies that provided the resources to them. Schools,
hospitals, clinics, entertainment centers, organizing sporting activities etc can be done
through the means of corporate social responsibilities to these societies.

62

REFERENCES:
1. Armstrong, G., Kotler, P. (2007), Marketing: An Introduction, 8th Edition, Pearson
Prentice Hall, USA
2. Aseem Prakash, (2002). Green marketing, Public Policy and managerial strategies.
3. Kotler, P. and Keller, K. L. (2006). Marketing Management New Jersey: Person Prentice
Hall
4. Ottman, J. 1998. "What Sustainability Means to Consumer Product Marketers," The
Ottman Report on Environmental Marketing, Vol. 5, No. 1:
5. Ottman, Jacquelyn (1998), Green Marketing: Opportunity for Innovation, 2nd Ed.,
Lincolnwood, IL: NTC Business Books
6. Peter Kangis, (1992) "Concerns about Green Marketing", International Journal of Wine
Marketing, Vol. 4 Iss: 2, pp.21 -24

63

7. Polonsky, M., Ottman, J. (1998a), "Exploratory examination of whether marketers


include stakeholders in the green new product development process", Journal of Cleaner
Production, Vol. 6 No.3, pp.269-75.
8. Polonsky, M.J. (1995). A Stakeholder Theory Approach to Designing Environmental
Marketing Strategy. The Journal of Business and Industrial Marketing, 10(3), pp. 2947.
9. Rashed Y., Igbazua E. Mercy (2011) The impact of green marketing on customer
satisfaction

and

environment

safety,

International

Conference

on

Computer

Communication and Management, Vol.5, pp 637- 639.


10. S. Joshi (2001), Green Marketing: An overview [online].
11. Smith, Toby. The Myth of Green Marketing: Tending Our Goats at the Edge of
Apocalypse. Toronto: University of Toronto Press, 1998.
12. Syeda S. Bukhari (2011) Green marketing and its impact on consumer behavior,
European Journal of Business and Management, vol.3. No. 4
13. World Commission on Environment and Development (WCED). 1987. Our Common
Future. Oxford: Oxford University Press.
14. www.ftc.gov/bcp/grnrule/guides980427.htm
15. www.greemnarketing.com/articles/Ottman-Report.html.
16. www.ijstm.com
17. www.interscience.wiley.com
18. www.pollutionissues.com/Fo-Hi/Green-Marketing.html.

64

APPENDIX A: QUESTIONAIRE TO THE COMPANY


ACCRA POLYTECHNIC
SCHOOL OF BUSINESS AND MANAGEMENT STUDIES
DEPARTMENT OF MARKETING
The purpose of this questionnaire is to seek out the views of management on the topic:
GREEN MARKETING AND ITS IMPACT ON THE ENVIRONMENT. (The Case
Of Fanmilk Ghana Limited). Be assured that this is purely for research purpose and
your opinions will be kept confidential.

Q1. Does your company believe in the concept of green marketing?


a) Yes [
b) No

[ ]

Q2. How do you think would you help the environment by following green marketing
strategies and regulations?

.
..

..

65

Q3. In your opinion how is green marketing more effective than regular marketing
techniques?

Q4. What plans and actions does your company take to implement green marketing?

Q5. Do you think you are doing enough to save the environment by your policies?

.
Q6. How do you think the regular marketing techniques harm the environment?

Q7. Where do you stand in comparison to other companies when it comes to following green
marketing?

Q8. Do you believe in the concept of complete green marketing conditions throughout the
world?

66

a) Yes [

b) No [

Q9. Give your opinion on whether green marketing will bring you as much profit as it did
before?

Q10. What are the main areas to be focused upon for bringing in green marketing for your
current project?

....

67

APPENDIX B: QUESTIONAIRES TO CONSUMERS.

ACCRA POLYTECHNIC
SCHOOL OF BUSINESS AND MANAGEMENT STUDIES
DEPARTMENT OF MARKETING
The purpose of this questionnaire is to seek out the views of consumers on the topic
"GREEN MARKETING AND ITS IMPACT ON THE ENVIRONMENT". Be assured
that this is purely for research purpose and your opinions will be kept confidential.
Please tick and write where appropriate.
Age: 18-25 [

26-30 [ ]

Gender: Male [ ]
Marital Status: Married [ ]

30-40 [ ]

Female [ ]
Single [ ]

Occupation:
Educational Background: ..

68

above 40 [ ]

Q1. Are you familiar with the concept called green marketing?

YES [

NO [

Q2. Do you think green marketing is a concept that must be practiced by every organization?

YES [

NO [

Q3. Is there any organization in Ghana that practices green marketing?

YES [

NO [

Q4. Green marketing has an impact on the environment.

TRUE [

FALSE [

Q5. How does green marketing impact on the environment?

Positive
Negative
Both
None

[
[
[
[

]
]
]
]

Q6. Which area or areas of the environment does green marketing have an impact on?

Water Bodies
Animals
Consumers / Customers
The Atmosphere
The Company Bodies
All Of The Above
None

[
[
[
[
[
[
[

]
]
]
]
]
]
]

Q7. Would you say that the practice of green marketing has helped to reduce environmental
pollutions?

Yes [
No [

]
]

69

Q8.

If

yes,

why?

If

no,

give

your

reason.

Q9. The practice of green marketing has both positive and negative impact on consumers or
customers.

Strongly agree
[
Agree
[
Disagree
[
Strongly disagree [

]
]
]
]

Q10. Would you say that the practice of green marketing have helped to improve the
environmental conditions and sustainable life?

Yes
No
Dont know

[ ]
[ ]
[ ]

Q11. Have there been any changes in organizational operations through the evolution of
green marketing activities.

Yes [
No [

]
]

Q12. Would you say that these changes have a positive or negative impact on the
organization? ...............................................................................................................................
......................................................................................................................................................
......................................................................................................................................................
.......................
Q13. Have there been any changes in consumers life through the evolution of green
marketing?

70

Yes [
No [

]
]

Q14. Would you also say that these changes have helped to improve or reduce consumers
health conditions?
.....................................................

Q15. Do organizations take advantage of green marketing practices to give false messages to
the customers?

Yes
[ ]
No
[ ]
Sometimes [ ]

Q16. In considering the above will you as a customer consider this as a positive or a negative
impact? ........................................ and
why.
.
..
Q17. Are there any strategies that an organization can adopt to undertake green marketing?

Yes
No

[ ]
[ ]

Q18. Which of these will you consider as the best strategy to adopt by an organization?

Recycling
Reuse
Reduce
All of the above
None

[
[
[
[
[

]
]
]
]
]

71

Q19. Can the organization also manipulate or make any changes in its operations in order to
undertake green marketing?

Yes [
No [

]
]

Q20. Which of these operational areas can the organization manipulate or make changes in?

In manufacturing
[
Advertising
[
Changes in product [
Management systems [
All of the above
[
None
[

]
]
]
]
]
]

Q21. How would you rate green marketing practices?

Best
Better
Good
Bad

[
[
[
[

]
]
]
]

Q22. Would you recommend to every organization to undertake green marketing practices?

YES
NO

[ ]
[ ]

Q23. How would you rate green marketing practices in terms of its impacts on the
environment?
Please indicate your views on green marketing impacts on the environment by scoring them
on a scale of 4 down to 1 (that is, 4= high positive impact, 3= semi positive impacts, 2=
negative impact, 1= no impact) on each of the criteria listed. Please tick the appropriate
score on each line.

(high 3(semi

positive)

positive)

Water and atmosphere


Land
72

2 (negative)

1 (no impact)

Animals
Consumers
Companies

Q24. The positive impacts of green marketing outweigh the negative impact.

Strongly agree
Agree
Neutral
Disagree
Strongly disagree

[
[
[
[
[

]
]
]
]
]

Q25. In your own opinion what would you suggest that companies that are not practicing
green marketing to do?

73