Green Marketing Activities Theoretical Framework 1. Green Marketing Definition

19 The ample green marketing strategy propositions identified by scholars may confuse some managers. Since there is no universally accepted green marketing strategies, firms can choose strategies that best fit into their organization’s systems, culture, and policies. Propositions held by Menon and Menon 1997 and Prakash 2002 contends structural organization-wide policies and systems are the patron for determining corporate greening strategy. Furthermore, green marketing strategy matrix developed by Ginsberg and Bloom 2004 and Orsato 2006 relies heavily on promotional efforts and cost efficiency in strategizing the green attempts. On the other hand, Vaccaro 2009 and Cronin et al., 2010 evolve greening strategy framework holistically, something that not only touch promotional and cost sensitive matters, but also integrating systems, policies, partnerships, and innovation altogether in a multi- facets embraced green marketing strategy. The congruence between Vaccaro’s 2009 proposition and Cronin’s et al., 2010 framework contributes major sources of green marketing strategy in this study. In his research, Vaccaro 2009 aligns business-to-business B2B green marketing with innovation theory to gain competitive advantage. While Cronin et al., 2010 discuss green marketing strategies, of which stakeholder examination is upheld. The intersection of both propositions will be relatively novel complementary green marketing strategies.

a. Proactive Green Marketing Strategies

First and the foremost, marketing research strategy are conducted to obtain input on company strategy and environmental sustainability issues from outside stakeholders. Research further can help determine effective design of communications 20 messages to educate stakeholders about green attempts. Subsequently, it can also be used “to identify customers needs before designing new products and to determine optimum price and distribution strategies” Vaccaro, 2009. This asserts that two elements of marketing mix are examined in this strategy. Secondly, production strategy emphasizes on the significance of production- and other processes- changes to be more environmentally sensitive. Redefining green innovations in production process is critical to change radical behavior in the way customers consume and the way product and service is made. This strategy also suggests factory visit for customers, media, and the general public can help company to obtain media coverage about new green production strategies Vaccaro, 2009. Furthermore, product strategy stresses on creating “green products with a differential advantage which are recyclable, biodegradable, and are based on sustainable development and also existing these product lines” Vaccaro, 2009. Another strategy held is substituting product or service rentals instead of ownership of physical goods. It is believed this notion will be cost effective for firms. Subsequently, distribution or market strategy pertains to creating more circular markets where materials can flow through product take-back and recycling; using multi-channel distribution, to make easy to purchase new green products or services; and creating new markets or markets niches Vaccaro, 2009. In addition, price strategy holds that long-terms costs of ownership and use rather than short-term price are key issues to take into account. An alternative option recommends B2B firms to offer promotions with price incentives such as quantity and frequency discounts, coupons, and rebates to increase interest and triability.