Marketing Exchange And Green Washing: Understanding The Difference

Reasons to Provise Attractive Market to Tupperware

Discuss about the Marketing Exchange for Green Washing.

An exchange relationship in marketing simply means that when an individual and organization tries to satisfy the needs or wants and in return they offer money, services and even goods. Hence this exchange relationship turns into the relationship marketing. In relationship marketing there is a long term relationship with the target audience which helps the business or the organization to grow and hence marketing is increased. Any business or organization that provides values to the customers builds a good exchange relationship because customers are the only one that helps in the marketing of any business. It is very important for the marketers to create a good relationship with the customers and the stakeholders so that ultimately marketing is increased. A good marketing network only means a good relationship network. Marketing exchange which later turns out to be an exchange relationship is crucial in marketing. When exchange takes place then both the parties should have something of value for each other. Mainly it’s the utility that motivates the people to get engage in the marketing exchange. There are many types of exchange relationship that takes in marketing and those are restricted exchanges, generalized exchanges and complex exchanges (Chron, 2016). Main objective of exchange relationship in marketing is to obtain the desired product from other company by offering them something value that is of their desire and beneficial for their company.

This model clearly explains the exchange relationship in marketing between the consumer and the real estate business. In this model it has been shown that consumer’s desire and needs are fulfilled by the real estate business and in return currency has exchanged for the process and mutual value is reached where both consumer and the seller is getting profit out of it.

Exchange relationship in marketing is actually a part of the relationship marketing. Usually marketers build a long term “win-win” relationship with the customers, suppliers and the distributors. This relationship is only build by providing high quality goods and services with fair prices to the other parties (Boundless, 2016).

Tupperware has adjusted their product line so that they can meet the needs of the local in the market that is emerging but not losing their brand cachet. It has maintained a "premium mass" image. This balance has helped Tupperware in countries like India and China where customers aim to have a brand status with good quality with affordable prices.  Product localization with the help of ground design has played an important role in the Tupperware’s growth in India. Before entering into the market Tupperware surveyed about local players and the way they make money at insane prices. They also reassessed their entire business model so that cost beyond overheads and other costs can be effectively managed. In India Tupperware used a locally developed mold for the eco bottles that it produced which helped the company to compete with the lower cost rivals yet maintaining the premium image of the product (Singh & Shankar, 2010).

This company also raised the local talent so that can have the better understanding of the domestic market. Tupperware has built a strategic foundation in the new markets of India and china (Inside Retail Asia, 2015). Tupperware in India had grown strongly and its revenues in 2009 contributed 29 percent of the total company’s overall local currency growth among Asia pacific emerging markets that includes countries like china, Indonesia and even Malaysia (Mitra, 2012). It was also observed in India that many women joined this company to supplement family income which helped in increasing the sale of the company. Tupperware has also provided resources like human, financial and technological.

Difference Between Green Washing And Green Marketing

Tupperware has not only targeted big cities of India and china but it has also targeted the villages and the smaller cities. When an organization and business enter into the new market they bring in the innovation, resources and even learning from the other market and so as the Tupperware has followed. It started with a clear agenda of developing a category on which the whole business was based. Tupperware also converted many consumers of India from using traditional metal food containers to the plastic ones in day to day life. The culture of India is totally different from the china. The direct selling model which is implemented in India cannot be implemented in china because of the strict regulations and the culture of the people.  But both the countries offer large markets with no language or cultural barrier. Hence Tupperware has been a huge brand in the china and India as well.

Green marketing and green washing has become a trend in the organizations and the business now days. Both play an important role in maintaining the image of the organization. These both are actually similar to the corporate social responsibility approach where an organization has to follow the environmental friendly methods that do not provide any harm to others. Green washing and green marketing both the terms are similar to each other but are way different in their meaning.  Green marketing is always a better idea to follow by the organizations as it does not create any issue. There are also many organizations in the world that claim that they are using an environmental  friendly product but in reality it only turns out to be the fake claim so to understand this there are few difference that are made.

GREEN WASHING Ø  This is basically a misleading claim that an organization or any business make about the green, eco, sustainable, or even services that they use. There are many companies that claim that the products they are using are ecofriendly or green but in actual these are vague claims that they make (Carbon Compass, 2010). Ø  Green washing is mainly based on the public that buy things from the market (Itchy Fish, 2010). Ø  The primary objective of green washing is to provide consumers the feeling that the organization is using steps in managing the ecological footprints but in reality they may do very little toward the environment.   Ø  Green washing refers to the exaggerated claims and it has also become a major challenge for the industry (Forbes, 2012). Ø  It even leads to the consumer skepticism. Ø  There are many companies that practice green washing and one example is coca- cola. This company claims to be green and it has been asked to look over the marketing material for its Plant Bottle packaging (Zara, 2013). Ø  Other companies that practice green washing are: Volkswagen, Mercedes Benz, Rainforest Alliance, Reynolds American, LEI Electronics, SeaWorld and many others.

GREEN MARKETING Ø  This is basically an authentic communications about marketing a product or services in a genuine way. It is all about marketing things that are environmentally safe and does not provide any harm. It even includes the areas about the production and the distribution process (Carbon Compass, 2010). Ø  On the basis of voluntary FTC regulates the green marketing. Ø  Green marketing also includes modification of products, changes the process of production and even modify the advertisement. Ø  Main objective of green marketing is to eliminate the waste, make environmentalism profitable, bring out the product modification and reinvent the concept of product. Ø  It not only focuses on the direct benefit of a product but it also focuses on the long term environmental benefits. Ø  There are also many companies that practice green marketing approach and one of them is Starbucks. This company has green advocates and has “bean-to-cup” approach. Starbucks also uses coffee cup sleeves that can be recycled which saves approximately 78,000 trees per year since 2006 (Starbucks, 2016). It has also paired up with environmental organization.

References

Boundless, (2016). The Marketing Exchange. Boundless Marketing. Retrieved on: 12 Feb. 2017. From: https://www.boundless.com/marketing/textbooks/boundless-marketing-textbook/introduction-to-marketing-1/introduction-to-marketing-18/the-marketing-exchange-110-6867/.

Carbon Compass, (2010). Green marketing vs. green washing. Carbon Compass. Retrieved on: 12 February 2017. From: https://staging.carboncompass.com.au/column/green-marketing-vs-green-washing.     

Inside Retail Asia, (2015). Tupperware finds favor in China. Inside Retail Asia. Retrieved on: 12 February 2017. From: https://insideretail.asia/2015/10/22/tupperware-finds-favour-in-china/.

Itchy Fish, (2010). Green Marketing and Green Washing. Itchy Fish. Retrieved on: 12 February 2017. From: https://itchyfish.com/green-marketing-and-green-washing/.   

Mitra, S. (2012). Tupperware loses China focus to train eyes on India's bulging middle. Business Standard. Retrieved on: 12 February 2017. From: https://www.business-standard.com/article/companies/tupperware-loses-china-focus-to-train-eyes-on-india-s-bulging-middle-112120200066_1.html.

Singh, A. & Shankar, S. (2010). Crafting a successful India strategy can be tough for MNCs given the vagaries of the Indian market. The Tupperware story throws up some success mantras. CONSULTANTS’ CORNER. Retrieved on: 12 February 2017. From: https://epaper.timesofindia.com/Default/Layout/Includes/ETNEW/ArtWin.asp?From=Archive&Skin=ETNEW&BaseHref=ETM%2F2010%2F06%2F11&ViewMode=HTML&EntityId=Ar02700&AppName=1.

Sobelsohn, S. J. (2012).  Greenwashing": Deceptive Business Claims of "Eco-Friendliness". Forbes. Retrieved on: 12 February 2017. From: https://www.forbes.com/sites/realspin/2012/03/20/greenwashing-deceptive-business-claims-of-eco-friendliness/#5bf46fac58b1.

Starbucks, (2016). Recycling and Reducing Waste. Starbucks. Retrieved on: 12 February 2017. From: https://www.starbucks.in/responsibility/environment/recycling. 

Thompson, S. (2017). What Is a Marketing Exchange? Chron. Retrieved on: 12 February 2017. From: https://smallbusiness.chron.com/marketing-exchange-61868.html.

Zara, C. (2013). Coca-Cola Company (KO) Busted For ‘Greenwashing’: PlantBottle Marketing Exaggerated Environmental Benefits, Says Consumer Report. International business times. Retrieved on: 12 February 2017. From: https://www.ibtimes.com/coca-cola-company-ko-busted-greenwashing-plantbottle-marketing-exaggerated-1402409.