An Investigation on Green Marketing – Case Comparison of Nokia and Sony Ericsson
I Provisional Title
The working title of this dissertation is initially drafted as An Investigation on Green Marketing – Case Comparison of Nokia and Sony Ericsson. As such, the research aims to conduct an in-depth investigation on how committed are Nokia and Sony Ericsson when it comes to green marketing of their products and to develop comprehensive benchmarking of the strategies and practices of the two companies.
II Brief Review of Literature
Consumers of today are continuously associating themselves with social responsibility and marketers are expected to occupy a space in green revolution. In integrating environmental ethic into the operation, green consumers and green consumerism must first consider. Green consumers are those who identify themselves in accordance to their environmental ideologies and beliefs they believed in. Moisander and Pesonen (2002) states that ecologically oriented citizens are largely “marginalised” and positioned themselves in the dominant discourse of green consumerism. Because green consumers are more tended to reject subjectivities, they claimed to be caring, environmentally and socially aware and are demanding a say in the production, processing and resourcing of the products they regularly purchase.
Strong (1996) contends that the ethically-aware consumer has become ethically aware and is joined by many other consumers who believe in the principles of fair trade. These well-informed consumers not only demand for fair traded products but are also challenging manufacturers and retailers to guarantee ethical claims they are making about their products. Hence, the campaign for greener, more environmentally friendly ways of living and consumerism is rapidly gaining momentum (Tse and Yim, 2002).
Tse and Yim (2002) also noted for the purpose of creating a greater market share manufacturers and marketers adapt their production to effect a minimized toll on the environment and advertising themselves appropriately. Consumer perceptions about the typical attributes of green products are not necessarily incorporated in an environmentally friendly production process. Hence, capitalising on green marketing to modify green consumerism is prioritised.
Kilbourne and Beckmann (1998) contend that the growth of green marketing is in accordance with the emergence of topics related to individual’s motivation such as perceived consumer effectiveness and also cooperative behaviours and strategic alliances. Skepticism of consumers when it comes to green advertisement is a burden to companies because of the emergence of suspicions whether firms are able to produce genuine green products. Peattie (2001) states that this is the reason why identifying and reaching green consumer segments tend to be very difficult in practice.
In sum, what drives green marketing are green consumers. Based on this, the first sets of questions for this study are: 1) To what extent do Nokia and Sony Ericsson integrate the inputs of green consumers in their green marketing? 2) How do Nokia and Sony Ericsson make its consumers aware of their green products? 3) Are environmental improvements of products and services are aligned with the green consumer requirements? And 4) How do Nokia and Sony Ericsson reach its consumers?
It was long been emphasised by Kangis (1992) that green marketing presents challenges because of the absence of clear understanding of the cause and effect relationships in matters affecting the environment as well as the overt and covert reasons for such issue. Because green marketing is sustainable marketing, obtaining a greener strategy will be critical on greening corporate strategies in brands, setting standards, networking resources and green marketing (Grant, 2008).
As opposed to common view on green marketing which mainly consists of promotion or advertising of products with environmental characteristics, green marketing covers a broad range of activities. Mishra (2007) relates that green marketing is a concept that is applied on product modification, changes to the production process, packaging changes and advertising modification. Towards the end of utilising limited resources and satisfying consumers’ wants, green marketing was plausible. Peattie (2001) asserts that the main aims of green marketing are to minimise the dependency on product groups responsible for environmental pollutions and to increase awareness of new product categories.
Peatti (2001) traces the evolution of green marketing which initially is known as ecological where all environmental activities were concern with helping in mitigating environmental problems through provisions of remedies. This is followed by environmental marketing which focuses on clean technology that involved designing of innovative new products. Sustainable is the next and the present marketing phenomenon.
Green marketing is important because of the following reasons. First, firms perceive green marketing to be an opportunity which can be used to achieve its objectives. Second, firms believe they have a moral obligation to be more socially responsible. Third, firms are pressured by competition hence by changing environmental marketing activities. Fourth, costs of waste disposal and material usage reductions force firms to modify their behaviours (Mishra, 2007).
As such, green marketing benefits firms in ensuring sustained long-term growth along with profitability, being cost efficient in the long run and supporting companies in marketing products and services in line with environmental requirements. Broadly, green marketing benefits firms in accessing new markets and acquiring competitive advantage (Narayana and Babu, 2008). Nevertheless, only those value-led firms could benefit in green marketing (Majlath, 2005).
The marketing strategies for green marketing includes marketing audit, developing a marketing plan that outlines 4Ps strategies and implementing these marketing strategies (Narayana and Babu, 2008). Moreover, the marketing mix of green marketing is different from a typical 4Ps and is buttressed by three additional Ps as people, planet and profits.
Products, which can be made from recycled materials or from used goods, have to be developed depending on the needs of the consumers. Efficient products are developed with saving water, energy and money as well as reducing harmful environmental effects as the primary motives. The role of marketers in product management includes providing product designers with market-driven trends and consumer requirements for green product attributes. Some of these attributes are energy saving, organic, green chemicals and local sourcing among others (Narayana and Babu, 2008).
Bhat (1993) furthered this when he mentioned that green marketing programme starts with the green design since inputs, manufacturing processes, distribution, use and disposal methods are decided during the design stage. It is in this stage that comparison of green designs alternatives are achieved which can provide designers with guidance to select superior designs.
Green pricing is also becoming a necessity. It was argued that green products are inclined to be more expensive than conventional ones, and was carried out to ensure efficient productivity. Value-adding features are integrated to change its appearance, functionality and through customisation, all of which contributes to prices (Narayana and Babu, 2008).
Green place, moreover, is about managing logistics for the purpose of cutting down on transportation emission, in effect, aiming to reduce carbon footprint (Narayana and Babu, 2008).
Finally, green promotion involves the tools of promotion such as advertising, marketing materials, signage, white papers, websites, videos and presentations (Narayana and Babu, 2008).
However, Mishra (2007) also noted that there are problems with green marketing. Firms which make use of green marketing must ensure that their activities are not misleading to consumers or industry, and conforms to the regulations or laws dealing with environmental marketing. As such, marketing claims must clearly state environmental benefits. Inaccuracy of consumer perceptions and negative future backlash of environmental decisions are other problems with green marketing (Crane, 2000).
Because of the fact that environmental characteristics of the products should be evident, the question now is: 5) How do Nokia and Sony Ericsson perceptibly shows the environmental characteristics of its products? It would be also important to determine: 6) How do Nokia and Sony Ericsson design green products? Do green packaging and labeling helps? 7) Are sound green pricing strategies are inexistence? 8) Is effective green placement achieved? 9) Likewise, do green promotion practices exist?
The telecom industry is in the early phase of defining what ‘going green’ means wherein the possibilities of greening ranges from handset recycling programs, reducing hazardous materials within the handset and using energy-efficient equipment to evangelizing the environmental benefits of telecommuting and teleconferencing (RCR Wireless News, 2008). According to an article of Wireless Asia (2008), very few of the telecom companies are creating biodegradable and recyclable products from sustainable resources although these companies initially comply with regulations to ban toxic substances like heavy metals and PVC in their products. Less than 5% of these telecoms have effective recycling and ethical disposal programs. The problem lies in the development of the kind of scale that makes entire green product lines economically viable enough.
The marketing stories of each company had been their marketing stories, embedded on green corporate practices. As more telecom companies consider the marketing angle, they are trying to ‘out-green’ each other. For example, the claim energy efficient gets stretched to the breaking point and the dangers of rendering the message will cause large cost ramifications when proven untrue. The meaningful impact then on telecom companies is evident on the firm’s competitive position (RCR Wireless News, 2008). Sony Ericsson is lauded for marketing proof-of-concept green products in 2008 whereas Nokia presented various green initiatives. The question now for this study will be: 10) Which is greener when it comes to marketing – Nokia or Sony Ericsson?
III Aims and Objectives
Generally, the aim of this study is to investigate in-depth green marketing through comparing green marketing strategies and practices in the telecom industry. The study also aims to draw conclusions on which between Nokia and Sony Ericsson is more committed in green marketing and why is this so. With this, the specific objectives of the research are:
- To determine how Nokia and Sony Ericsson reaches its consumers through its green marketing strategies
- To examine how consumer requirements are integrated in marketing green products
- To analyse how green marketing builds consumer awareness of environmental characteristics of the products
- To compare the similarities and differences of green marketing mix of Nokia and Sony Ericsson
IV Statement of the Design and Methodology
A comparative approach will be utilised. The research design for the study is descriptive as it aims to present current facts about the green marketing principles and strategies of Nokia and Sony Ericsson. According to Creswell (1994), a descriptive research intends to present facts concerning the nature and status of a situation, as it exists at the time of the study. Best (1970) also notes that descriptive studies also concerns the relationships and practices that exist, beliefs and processes that are ongoing, effects that are being felt, or trends that are developing.
Case study method will be also applied. Robson (2002) defines case study as a “strategy for doing research which involves an empirical investigation of a particular contemporary phenomenon within its real life context using multiple sources of evidence.” Case study approach would be most appropriate to exclude occurrences of green marketing in electronics industry with its two primary players as Nokia and Sony Ericsson. One of the threats to reliability which is subject of participant error will be addressed by means of conducting survey at the closest time possible.
Both primary and secondary data will be collected. Questionnaire will be the instrument. A semi-structured questionnaire will be thoroughly developed to ensure validity and it will be used as the survey tool for the study. It is planned that the questionnaire will have a 5 point Likert Scale, as well as ranking questions. The study will survey representatives from the companies. Previous study reports and journal contents and statistics will be regarded as the sources of secondary data. Moreover, annual reports, marketing reports and company statistics will be also obtained. Internet databases will be also consulted including Questia, Highbeam and Emerald.
V Sources and Acquisition of Data
Primary data will be acquired through key informant technique which considers the expert’s view to provide inputs on the subject. These are the individuals who are expected to have knowledge about the issue. For Nokia and Sony Ericsson, key informants are Marketing Directors. The Marketing Directors will be surveyed. I assume that it would not be very easy to gain access to the company and the target respondents but I will ensure that I will give all my effort as the researcher and negotiation skills to organise and conduct the interviews. One of the limitations of key informant technique is the extent to which they will reveal commercial information. Another limitation is the fact that their responses could have inherent subjectivity specifically because interviewees are more particular on the strength of their brands.
The project will abide by the regulations outlined by the ethical committee on ethical approval process which identifies ethics procedure policies and principles in conducting research. Industrial will be collected. Nevertheless, the commercial information obtained from organisations will be treated with utmost confidentiality. Respondents of the survey will be able to choose whether to identify them or stay anonymous. Before sending out the questionnaires participation consent forms will be also accomplished. I will establish with the data providers the use of my data and will ask their permission in case of publishing data.
VI Method of Data Analysis
Deductive quantitative techniques of data analysis will be incorporated. One of the disadvantages of this method is that it may not be able to obtain adequate informations must from the informants as the statements are already limited within the questionnaire. To address this matter, it will be ensured that the questionnaire will be carefully designed and pre-tested prior to actual implementation. Results will be acquired by means of tabulating the data collected using SPSS software. Green marketing practices and strategies of Nokia and Sony Ericsson will be analysed with the use of ANOVA. Comparisons of data will be also obtained through ANOVA.
VII Form of Presentation
The dissertation will be presented in written form with the addition of data charts which will present the project’s results. The dissertation will be divided into five chapters. The first chapter will present and discuss the problems and objectives of the study. The second chapter on the other hand will present the various related literatures that were reviewed for the study. Chapter 3, on the other hand, will discuss the methods and procedures that used in the study. Chapter 4 will present the results of the study in tables along with their specific interpretations. Finally, the fifth chapter will present the conclusion and discussion of the study. Further, pie charts and network charts will be needed to illustrate some of the analyzed data. This cannot be confirmed, however, until the research data have been analyzed.
VIII Timetable
TASK
Weeks
1st
2nd
3rd
4th
5th
6th
7th
8th
9th
10th
11th
12th
Read Initial Literature
Finalize Objectives
Draft Literature Review
Devise Research Approach
Review Secondary Data
Update Literature Read
Organize Survey
Develop Survey Questions
Analyze secondary & primary data
Evaluate data
Draft Findings Chapter
Complete remaining chapters
Submit to tutor and await feedback
Revise draft and format for submission
Print, Bind
Submit
References
Best, J. W. (1970). Research in Education, 2nd edn, Englewood Cliffs, N.J.: Prentice Hall, Inc.
Crane, A. (2000) ‘Facing the backlash: green marketing and strategic re-orientation in the 1990s,’ Journal of Strategic Marketing, vol.8, no.3, pp. 277-296.
Creswell, J.W. 1994. Research design: Qualitative and quantitative approaches. Thousand Oaks, California: Sage.
Grant, J. (2008). ‘Green marketing,’ Strategic Direction, vol. 24, no. 6, pp. 25-27.
Kangis, P. (1992). ‘Concerns about Green Marketing,’ International Journal of Marketing, vol. 4, no. 2, pp. 21-24.
Kilbourne, W. E. & Beckmann, S. C. (1998). ‘Review and critical assessment of research on marketing and the environment,’ Journal of Marketing Management, vol. 14. pp. 513-532.
Majlath, M. (2005) Challenges in Marketing: Reasons for the Existence of Green Marketing.
Mishra, R. M. (2007). A Conceptual Framework on Green Marketing. IndianMBA.com.
Moisander, J. and Pesonen, S. (2002) ‘Narratives of sustainable ways of living: constructing the self and the other as a green consumer,’ Management Decision, vol. 40, no. 4, pp. 329-342.
Narayana, V. M. & Babu, S. D. (2008) Green Marketing – New Hopes and Challenges. IndianMBA.com.
Peattie, K. (2001) ‘Towards Sustainability: The Third Age of Green Marketing,’ The Marketing Review, vol. 2, pp. 129-146.
RCR Wireless News. (2008) Going Green; And what that may mean to telecom.
Robson, C. (2002) Real World Research, 2nd edn, Oxford: Blackwell.
Strong, C. (1996) ‘Features contributing to the growth of ethical consumerism – a preliminary investigation,’ Marketing Intelligence and Planning, vol. 14, no. 5, pp. 5-13.
Tse, A. C. B. & Yim, F. H. K. (2002) ‘How do consumers perceive clear and transparent products?’ International Journal of Commerce and Management, vol. 12, no. 1, pp. 68-78.
Wireless Asia. (2008) Falling short on green phones.
Credit:ivythesis.typepad.com
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