Eco-friendly Marketing

It is no exaggeration to say a society is ruled by the logic of the environment in the 21st century. Since the 18th century industrial revolution, human beings have benefited of the richness due to the mass production and mass consumption, having a continuous growth with a progress of industrialization, industrial technology, and advanced material. However, these types of economic activities based on material growth causes serious global environmental issues such as destroy of the ozone layer, global warming, acid rain, waste disposal and so on because of the destruction of public goods that is the environment; furthermore, the level of the contamination threats the survival of mankind. Since 1970s, the world’s environmental problems have started to spread out towards the awareness of environment conservation, and in recent years the need of environmental management emerges as a new measure including international agreements and the Green Round, which is to urge connection between environmental problems and international trade.

Because of the seriousness of these environmental issues, the paradigm which is environmentally sustainable and sound for the 21st century led to a new international economic order occurred. Therefore, each business organization should recognize a bunch of issues about environment as a member of the community, the national society, and the international community in that the issue is no longer the problem of individual countries but rather the common problem of humanity. That is, it means that there is no exception across the world. Additionally, enterprises became unable to walk away from the strategic perspective in the event that the more our societies have increasing influence to the attention called environmentalism and consumerism, the more business sectors should concentrate on social responsibilities as well as ethical aspects. From this situation above, Eco-friendly marketing is emerging as a key role in business implementation plans. In other words, what is called Eco-friendly marketing does not fully separate environmental issues from the economic goals; on the basic principles above, it is meant that a firm may have to focus even on not only its business vision under the objectives such as the profit of outcome, market share, and product-development projects but also its social vision for example: the community interest, the preservation of the natural environment, and the formation of corporate culture. Thus, Eco-friendly marketing can be defined as a marketing strategy which is to develop an increase of attention to the interdependence among human and human, human and social, and human and natural environment.

It has often, however, been argued that Eco-friendly marketing can be shown a direct effect when a company under the company’s long-term goals performs Eco-friendly management in the process of all marketing decisions, turning around into the overall environmental management structure. In this regard, this essay, for this reason, begins with the idea that what the cause of the mistake in terms of the majority of companies are taking a wrong place in the Eco-friendly marketing; plus, it is necessary to point out what the true meaning of Eco-friendly marketing is.

Although awareness of both companies and consumers about the environment is very different from the past and both of them recognize with depth of understanding about there is a need for a new marketing strategy, the reason it is hard to find a case of company in the true meaning of success in performing the Eco-friendly marketing is that the history of academic theory and strategies in response to environmental issues is not so long; thus, there have been lack of relevant academic frameworks. Also, because of wrong recognition widespread¸ Eco-friendly marketing is passively considered as one of the way to make profit rather than social responsibility.

In this paper, therefore, there will be an argument about theoretical aspects of Eco-friendly marketing as the emerging factor of threats as well as opportunities in the modern world Eco-friendly marketing based on the previous research; then, it aims to provide the cases of companies comparing the status in the performance of Eco- friendly marketing between South Korea and the UK in order to suggest accurate directions which can lead to sustainable development and to be performed effectively.

In the middle of developing worldwide standard such as ISO Series for environmental management and Global Reporting Initiative guideline, companies should not only adopt these global standards but also precede a correct understanding of environmental conservation activities of corporations in some countries while in international trade or direct investment. In addition, there is more

attention now in the world than ever before in terms of a successful case of the company’s environmental conservation activities beyond national boundaries; furthermore, it is necessary to know the trends related to the reform of countries` institutional background and surroundings of the company in order to grasp why a company in a certain country is attracting attention as a success story and how the successful cases are able to apply for a particular organization.

This research is primarily concerned with the theoretical background and important factors to learn about Eco-friendly marketing on the basis of existing literature, and it will be also considered theoretical background relating to environmental management as the foundation to achieve effective performance for Eco-friendly marketing. Finally, through a comparative case study including the internal and external activities of the environment management, this essay aims to examine both practical efforts and institutional structure for the background of the corporations in the UK called an advanced country related to Eco-friendly marketing activities; at the same time, there will be a suggestion to improve understanding of the situation and problems in relation to current eco-friendly marketing of South Korean companies with the right direction.

Since the early 1990s, it has raised several debates for Eco-friendly marketing in the name of ‘Green Marketing’ by way of mass communication; still, the concept can be seen as an academic field which has not been set clearly yet. In general, Eco-friendly marketing may often be considered the marketing activity as companies not only provide products or services to meet the needs of society but also perform social and ecological balance under the mutual recognition that a consumer is not any longer a simple buyer for the sale of products but is an individual for mutual benefit.[1] Table 2-1 below reveals several concepts that were released by associated marketing groups, academic circles or scholars, and media relate to Eco-friendly marketing. [2]



To begin with, it is essential to understand clearly the different features between traditional marketing which is consumer-focused marketing and Eco-friendly marketing that is social perspective in terms of ideologies, values, and systems. The table 2-2 shows the differences below.

That is, [8] the philosophy of Eco-friendly marketing is not to mainly focus on the limited customer reaction which is visible, but with a wide degree of dimensions to keep emphasis on the gist of improving the quality of human life rather than material convenience or wealth, regarding the customers as its own value without being recognized as a revenue source.[9] Also, remarkably characteristic feature is often described that the majority of companies when they are in the pursuit of traditional marketing in the past days were inclined to deal with the environmental problem as an entity they want to avoid as if it is possible. However, the feature of organizations to seek Eco-friendly marketing can be defined that they do not recognize the problem related to environmental preservation as the factor of threat, but do treat the activities in the role of another opportunity that can afford competitive advantages combining with long-term profitability, focusing on interdependence with human, human and social, human and natural environment.[10] Finally, it can be, therefore, clarified that Eco-friendly marketing is a business practice in the pursuit of social quality including environmental basic structure, environmental living condition, and social and cultural areas that contain all of human life.

(Source: Moon, S.G., 1993) [11]

As in shown in the table above, Eco-friendly marketing mix consists of Product, Price, Place, Promotion of the general configuration of marketing mix but the difference with the general 4Ps is that Eco-friendly marketing mix can be called the primary methods to perform the pricing of production-elements for development of environmentally friendly products, development of reverse distribution system through recirculation of waste, development of environment-friendly corporate- image, induction of consumption-behavior based on environmental consciousness, and program development, reflecting the environmental aspects.

While companies are taking over marketing activities based on the new concept of 4Ps, on the position of the companies, a new strategy that can lead to revolutionary changes is needed in order to pursue competitiveness via environmental excellence. In particular, because the fundamental approach of environmental management begins from the perspective of Life Cycle Assessment, it should be implemented by reviewing the whole process or all action plans in terms of marketing-functions among the stage from purchase of raw materials, production, packaging, distribution, and to use and final disposal of waste, at the same time, establishing new marketing strategies.

(Source: Cheong, H. B., 1995) [12]

The table chart shows not only the process of being integrated expansion from the ‘P’s as a key function of traditional marketing for profit-maximization to green ‘P’s as needed by Eco-friendly marketing but also relationship with green ‘S’, which is possible to assess whether Eco-friendly marketing in the pursuit of economic profitability and environmental sustainability at the same time is successfully achieved. From the chart, it is quite difficult to regard the external green ‘P’s as a target for companies’ direct control in the event that they include customers’ needs, providers’ attitude, positions of political power and pressure groups, and a wide range of factors associated with the global environment, or other stakeholders. However, the internal green ‘P’s, which include the elements of both the traditional ‘P’s such as 4Ps and the new green ‘P’s for information, individuals of marketing mix, process, workforce, management policies and so on, can make the majority of companies’ direct-controls; the internal elements may be, thus, independent marketing elements of corporations and can be called the core target for successful Eco-friendly marketing.

The most priority issues in the product strategy of green marketing mix need to be addressed about identification of the characteristics of environment-friendly; still, the definition of green marketing has not been clear. Hence, green product has not been clearly defined yet by the academic circle. To recapitulate, it will be suggested simple existing definitions of some scholars below.


As in Table 2-3, it is shown that previous research tried to identify green products in the two types of perspective between relative and absolute in comparison with common products. In other words, with this type of strategy of green product, the key point is to develop new green products or to transform the existing products depending on the result of evaluation-factors related to the impact on environment. Most of the existing products seem to be lack of consideration for the environment, but also because investment in new product-development need for efforts in long-term technology development, in some cases, it could be essential to consider first enhancement of the environmental preservation through the improvement of existing products.

Green price means the value of the currency based on how far consumers are willing to pay according to the level of Eco-friendly products. However, these issues of green price have been one of the most controversial parts in the academic from first beginning to form the concept of Eco-friendly marketing.[17] Key issues of this controversy are you will need a higher price in order to protect environment or how consumers will respond to the factors of rise in the price in terms of high Eco-friendly degree. The reason these two issues are debatable continuously is that the establishment of a logical set is not simple. The potential consumer-awareness of business goal, cost structure, the level of profits, and products will be affected in case a company adds Eco-friendly elements to the normal price of a certain product. Especially, there must be a rise of burden related to social costs. In other words, when it comes to see from the social view, if the environmental cost is reflected in the price, then the condition of environment will be improved, but the consumption would continues to reduce. On the contrary, in case it does not constantly reflect environmental costs towards products, the consumption would be promoted. However, environment probably continues to be worse.

According to Henion (1976)[18], a case in green consumption, the price appears to be preferred if only the price is on the same level, but when green products are more expensive than the price of the purchase of substitute goods, both green consumers and consumers show signs of negative reaction to green products. As a result of Gallup Institute survey (1992)[19], well over 50% of consumers in 16 countries out of 2 nations responded to the positive notion that they are willing to pay higher prices to protect environment; remarkably, in the case of South Korea, it shows extremely higher figure that other nationalities often called developed countries. However, the problem is that these results do not lead to actual purchase-behavior. It is found in the various studies to explain the fact that consumer’s purchase-behavior may often change depending on the extent of the price premium.[20] Therefore, despite the superiority of Eco-friendly concepts, it is, undoubtedly, true that there is no motivation to companies’ Eco-friendly marketing strategy even if differences of price in market competition make an effect on the strategy as an inferior factor.

Through the problem stated above, it will be required a variety of ways in order to overcome these problems; firstly, the most desirable way in the long term is to increase the consumer demand for green products in order to make competitiveness in prices by means of developing technology that is able to produce green products in the low cost. Next, government’s role is needed to activate the adoption of green price; that is, government should give benefit on the price competition such as subsidies for increased prime cost, tax reduction, priority while contracting with public projects, support for sales promotion and so on to the companies which try to invest in facility-development to prevent pollution and technology, reducing negative factors related to production-cost for Eco-friendly. In addition, green products should be able to compensate relative weaknesses in comparison with non Eco-friendly goods through introducing non-price elements as consumers have psychological satisfaction that they contribute to their community by purchasing green products. In conclusion, by promoting these discriminatory properties, we can increase the sales.[21]

If an element for green is added on the concept of normal distribution, the rear path can be regarded more important than the front path. In other words, consumer products that are consumed are put emphasis on the recycling problem with the perspective protecting ecological environment and recycling resources in the reverse circulation-process from customers to producers. Therefore, the green distribution strategy could define as an activity to minimize negative environmental effect that can occur in the process of production and use, delivery to consumers, disposal, recycling and reuse; furthermore, it means also the overall set of business activities in order to enhance Eco-friendly characteristics of a company with the main content including material distribution systems such as storage and transportation, distribution process in terms of wholesale and retail, reverse distribution systems for recycling, and packing activities for safe transportation and preservation of the product-value.[22]

For the resolution of environmental problems, companies’ distribution channel management is primarily associated with distribution channels. The reason re-circulation is significant is solid waste is one of the main causes related to environmental pollution, and through the re-circulation, it can be a way that can be expected to solve efficiently problems about resource depletion.[23] The ultimate aim of recirculation not only to construct an alternative plan in economic activities of companies associated with reuse of waste and energy conservation but also to activate public education about recycling waste, boosting public interests to environment.[24] To re-iterate the point, based on Ecological-Cycle, green distribution or place can be explained that a firm try to preserve environmental conditions at a certain level by means of both using resources once again and feedback to nature; moreover, when this perspective reflect on companies’ distribution strategy, the primary marketing strategy for place can be developed by re-circulation of waste.[25]

As in traditional marketing, promotion strategy is the most pivotal strategic-element which a company can apply along with product strategy in the course of Eco-friendly marketing. [26] The fundamental purpose of green promotion can be explained as 2 steps. Firstly it aims to strengthen behavior and attitude of Eco-friendly consumers through distinctive perspectives between consumers who are environmentally friendly and customer who are not. Secondly, green promotion is to help consumers who are unfamiliar with Eco-friendly concept to change their attitude and behavior to Eco-friendly customers; in detail, the specific aim is to convince consumers to buy green products that are developed by companies. [27]

Therefore, at the same time, it is necessary to perform integrated green communication, and green communication can be called an informative activity to announce or communicate positive implementations for environmental issues towards both internal and external depending on strategic objectives such as a response to environmental risks, improved corporate image, contributing to society, product promotions, and so on.[28]

Typical way of green communication is advertising strategy and PR strategy. In green marketing, it can be explained that green advertising is a type of advertising activity in the pursuit of environmental improvement and protection; also, with a view of the content, it is to express the environmental effects of a particular product or the representation of companies’ identities that are environmentally friendly as a main content and can do it.[29] With green PR, it is important for Green PR strategy to improve public relation together with advertising in the event that Eco-friendly marketing is to sell a corporate image rather than to promote simply a product. Thus, it can be effective that green PR has to deliver a message that could not have been accessed by advertising. [30] In addition, these green PR activities consist of three activities such as green campaign, green event, and personnel sales.[31] Typically, the green PR is created by a certain purpose to influence from customers, relevant stakeholders, authorities, administrative department of government, and to corporate stakeholders (employees, managers, shareholders)via a PR means such as distribution of press-related materials, speeches, seminars, publication of annual reports, sponsorship for charitable organizations, publication of related books, lobbying activities, community relations and so on.[32]

The background that a company not only has an interest in Eco-friendly marketing but also has a practice of that kind of marketing activity may be originated mostly from outside of business conditions in the direction of respect for the environment. The type of factors and intensity that affect impact directly or indirectly on introduction of Eco-friendly marketing usually vary in each of the companies depending on local circumstances. [33] Those factors can be summarized like below.

Because human being is a member of eco-systems, plants, animal, natural environment in Earth have inevitably been sacrificed in order to make up the human life. Before the Industrial Revolution, the level of environmental destruction had remained at not serious situation, but as the era of mass-production/mass-consumption dawned, now the destruction of environment is exacerbating continuously with significant threats such a Global Warming, Ozone Depletion, Acid Rain, Deforestation, Decertification, Species Decimation and so on. In this atmosphere, Eco-friendly concept has been emerged as an important factor to obtain sustainable competitive advantaged among organizations. [34]

Recently, in South Korea as well as the world the latest trend is Well-being. That is, most people have become preferred to purchase a product which is beneficial to our body and our planet. In other words, this phenomenon is the purpose of companies and this fact means that awareness of consumers who have a survival decision of companies is no longer passive in that consumers both select and evaluate product themselves; especially, the evaluation of impact on environment among those assessments has been more objective and rigorous than before.[35] Thus, we can describe those people who actively navigate products that are less negative impact on environment as a green consumer.

The concept of green consumer was beginning to form from the end of 1960s and has raised the extended debate as a social marketing concept.[36] According to Moisander (2001)[37], in particular, green consumers can define consumer groups that not only emphasize on socially responsible consumption to overcome the crisis of today’s natural environment but also prefer a product which is relatively less contaminative. The characteristic in the green consumers’ behavior is possible to vary depending on personal inclination, but typically green consumers require environmental information, feel the need for environmental control, seek to differentiation with general consumers, and want to maintain existing lifestyle.[38] Additionally, green consumer category can be divided into by and large three groups depending on the level of involvement about environment such as innovative consumer actively to participate in protection movement, opinion-leading consumers to purchase Eco-friendly products, and common consumer to practice saving water and energy in daily life.[39]

The table <2-4> represents problems green consumers consider when they purchase a product; specifically, they start from raw material and manufacturing process and consider even corporate social responsibility as a factor in their decision-making.[40]

(Source: Ottman, 1995)[41]

In the past, companies has been consistent with a somewhat selfish or irresponsible attitude, regarding economic development as a priority, and agencies or officials of government have also driven forward with also short-sighted development policies; in consequence, it has caused a lot of environmental damage. However, in recent years, the issues related to environmental protection and ecological devastation is going to be generalized as the premise that is the most significant in business activities as well as across the whole area of society. To put it another way, our society do not want meaningless development with ignorance of environment; furthermore, that type of development is not allowed any longer. As a result, social criticism and responsibility for causing environmental pollution as well as attack of consumer groups and environmental groups on those companies, which are not responsible for environmental problems and legal or administrative regulations from the government has been gradually increased. From those situations above, managers arrived at the idea that they should not only identify human value and quality of life, but also focus on public interest of communities and consumers’ satisfaction.[42]

In conclusion, by means of proposed strategies in the Table <2-5>, a company has been able to apply Eco-friendly marketing strategy to an alternative means, which can help to achieve Eco-friendly innovation and efficiency for a long-term survival.

(Source: Ottman, J. A., 1995)[43]

As environmental problems have been serious, companies are required changes in business environment. Based on these transformed business conditions, it is utilized for a company to make good use of the shift of business conditions as a source of both new revenue and growth. Unless it may be in the right place, the market would be lost due to the decline in corporate-images for environmental responsibility. The main stakeholders in companies have been changed by conditions from the times as shown in the following Table <2-6>; besides, a new paradigm of corporate management has also been reformed.

(Source: Lee, B. W., 1997)[44]

Through the issue of distribution-equity in the mid of 1960s and quality-oriented management in the 1970s, since 1990s, as emerging the concept called green, companies have reflected the pressure to be Eco-friendly from social communities or relevant stakeholders to their business activity from manufacturing process to service process. Consequently, the idea that the concept of total quality environmental management, which can maximize the quality of all stakeholders and move to think about future should be introduced instead of total quality management focusing on the quality of products and services has been steadily considered by companies.[45] This varied consideration can be seen as the changes of consumers’ consciousness gave the greatest influence because consumers now recognize responsibility of environmental protection, the degree of contribution to communities, and ethical responsibility by means of evaluation criteria.

The primary goal of Eco-friendly marketing is to promote practical use as the basis to secure competitiveness after building environmental management system.[46] Also, through the goal, it aims to obtain profitability for short-term and to pursue sustainable prosperity for long-term. In other words, the key role is not only to win profit and ethical corporate-image but also to promote social welfare in the long term at the same time actively intervening in environmental issues.

From the view in the position of individual companies, necessity of Eco-friendly marketing can be summarized as five representative needs such as to satisfy consumer needs, to secure business opportunities, to guarantee sustainability, to occupy better position for competitive advantages, and to strengthen national competitiveness.[47] However, among various kinds of needs, the reason Eco-friendly marketing in contemporary society is the most necessary is to ensure the survival and competitiveness of companies, gratifying requests of customer and social needs through being green of all activities related to marketing mix.[48] In addition, only Green marketing activity cannot achieve the ultimate goal; it is, therefore, essential that a company should make an integrated effort in the entire business/national level of all business activities including production/technology and all circumstances that surround companies.[49]

Environmental management system on a sound basis can provide companies with an opportunity that enables environmental goals to be connected with individual objectives when they convert their idea from traditional management to environmental management, which is able to gain sustainable competitiveness and organization-growth as well as to continue environmental improvements for sound condition of Earth with the help of prearranged, proactive, preventive, and systemized activities. Above all, it is beneficial in that introducing Eco-friendly management can be linked with financial outcome; on top of that, opportunities to make sure whether resources are allocated in the right place so as to achieve the best performance as in financial/environmental aspects. Therefore, these effects can be summarized as the table below.

(Source: ISO-Korea Business Research Institute, Environmental management guide, 2003)[50]

Eco-friendly management had formed a lot of consensus as a new paradigm of the 21st century as well as it has been discussed not only in economic sectors but also in various fields called such as green management, green management, environmental management.

(Source: Lee, B. W., 1997)[51]

From the table <3-1>, the concept of Eco-friendly management can be defined that a company considers the impact on environment in the whole process of all business activities, draws a plan to reduce negative effects on environment, and finally executes it on practical ways at the same time. In addition, recently it has been subdivided into individual parts including Green organization (role of organization-members, determination & determination of managers, internal training, green communication and Green, Eco-friendly marketing (defined earlier), Green accounting, Green operation management (Life Cycle Assessment, acquisition of Eco-friendly labels, cleaner production).[52]

Business activities including marketing activities are affected by economic/social policies and regulations of each government; moreover, a company’s marketing activity should be in need for constant change because a company’s strategy has to meet the requests of national or local community. Therefore, in this chapter, it can provide an analytical concept in terms of both the problems of companies’ Eco-friendly marketing practice and the right path of direction through investigation of environmental policies in South Korea.

In South Korea, government’s environmental policy aims to establish a site where Man and nature can live along together. Environmental policies in South Korea are constantly evolving with prevention-oriented environmental policy such as Eco-friendly production process, efficient use of resources, minimizing waste beyond policies following an event, which are individual media-oriented including monitoring or supervision of polluting material emissions, activating recycle, and so on. It can be recapitulated for the environmental policy of South Korea as in Table <3-2> below.

(Source: Ministry of Environment, Annual report, 2004)[53]

Command or control is the regulated way South Korean government not only presents a certain degree of standards for a facility or activity that causes contamination but also imposes obligation to comply with the standards.

In case a company or individual violates both obligations and regulations, the government will give a legal or administrative sanctions based on the environmental policy; in addition, those kinds of policies are very effective and relatively simple measures in that the impact appears quickly. As the result, it is widely used in South Korea and over the world.

Economic instrument is the measures in order to achieve environmental goals by means of market as economic and financial media, and, a case in point of South Korea, there are two representative policy measures.

EITS was revised in 1991 and is still the policy during execution in South Korea. It aims to promote reduction of pollution and to raise a reasonable investment funds according to the principle of burdening the people who cause the pollution with handling costs. The payers of EITS are in shown following two cases.

(Source: Ministry of Environment, Annual report, 2004) [54]

The system enables producers to deposit of the costs in advance in order to promote recycle of waste and to request the return of the cost after withdrawal of their recyclable products. In other words, if products or containers that are able to be reclaimed and recyclable contain designated components of waste, the system makes the manufacturers or importers have annual prepayment for the cost to dispose of the waste, and then the government returns all or part of the cost to the deposit according to the performance of processing waste. Therefore, it can be seen that this policy is to aim reducing waste, encouraging recycling, and preventing environmental pollution caused by waste. In addition, there have been other systems to reduce waste such as Waste Tax, Refund system of recycle bottle deposit, and so on. The use of deposit and the items of South Korea are shown in the table below.

(Source: Ministry of Environment, Annual report, 2007)[55]

Voluntary environmental management or Voluntary Agreement (VA) is currently being hailed as the most desirable method and policy in South Korea; thus, this system is one of the environmental measures to support environmental management by the government through flexible and progressive environmental regulations in case companies pursue voluntary environmental management. The main reason this VA system is induced can be summarized below.

(Source: KEITI, 2007)[56]

Plus, there has recently been a new System called specified environment-friendly companies to evaluate environmental performance themselves and to practice plans based on the partnership between government and companies because it was proved that regulation of environmental management has limitations related to the development of the rapidly changing technology and changes in economic conditions, effective international response to environmental regulations, and the lack of fundamental reduction of pollutants. [57]

Establishing laws of environment is closely related to both the extent of awareness about environmental problems and the attitude of companies. Awareness of environmental issues in South Korea has been started with industrialization in 1960s, and the first environment-law was enacted in 1963. Since the late 1960s, environmental problems began to be considered by media and then people were concerned over the problems as a national issue. Through the rapid industrialization and urbanization, the environmental issues were recognized more significant across all of economic context. Hereupon, the first regulation about the right of environment was newly founded in the revised constitution in 1980.

Consequently, South Korea has implemented a multiple system divided into 6 multiple laws for the reason that the environmental problem was diversified due to advanced economic structure, and finally, based on the recognition that it is urgently needed to plan relevant measures, the current environment-law conducted by Ministry of Environment is composed of the total number of 43.

LG’s household goods business started in 1954 with the production of oral care products, skin care products, hair care products, laundry products, home care products, and paper products, and the cosmetics business started in 1994. Now, the company has raised itself to be nation’s leading cosmetics manufacturer.

The company’s environmental philosophy can be summarized as in the table below.

(Source: LG H&H company website)[58]

The company has set the following environmental policies.

(Source: LG H&H company website)[59]

LG H & H has promoted the integration of environmental management system based on responsible care to establish environment/stability management system by way of Eco-friendly certification (ISO 14001, OHSAS 18001, KOSHA 18001), specified Eco-friendly company, and Voluntary Agreement.[60]

Still, unfortunately, environmental philosophy and policy is limited to activities for PR as the ethical corporate image, and there is lack of strategic attempt to establish individual objectives and action plans for those goals. Furthermore, both education of employees and the assessment of implementation in environment/safety management system to share these goals have been relied on regular internal audit; [61] thus, objective evaluation is required by external audit. In other words, it will require more efforts continuously to improve current system and to complement drawbacks without over-credulity of environmental standards and labeling and internal assessment.

LG H & H has not only installed an optimal prevention-facility for reduction of air pollutants but also minimized emissions through TMS (Tele Metering System); moreover, the company constantly induced various Eco-friendly systems such as replacement of clean-fuel, improvement of process, and so on. However, goals and plans to reduce the origin of waste have not been currently settled yet; additionally, in terms of development related to Eco-friendly products, although the company executes the evaluation of potential environmental impacts of product and improvements through LCA (Life Cycle Assessment), it has been detected that the company still has lack of effort to meet the criteria of EU and environmentally advanced nations as well as the activity of RoHS (Restriction of Hazardous Substances Directive). Lastly, many academic circles have pointed out that there has been too much dependence only on certification of the Eco-friendly labeling.[62]

The Body Shop is a worldwide manufacturer and shop retailer of ethically produced beauty and cosmetics products. Established in the UK in 1976 by Anita Roddick, the company currently has over 2,400 stores across the world, with a range of over 1300 products.[63] The company has still opened up the business for social and environmental change, and the philosophy and policy including protection of human rights, against animal testing, and environmental protection have led to confidence and sympathy of consumers.

The Body Shop not only has awareness of corporate responsibility about environmental protection but also makes a rule of internal environmental policy in relation to all direct and indirect impact on environment for sustainable management goals. The following table shows important and key issues for the company.

(Source: The Body Shop company website)[64]

The company has recognized that there is a wider range of area the Body Shop can contribute than other organizations and tries to deal with environmental problems for The Body Shop’s customers, employees, relevant stakeholders like below chart.

(Source: The Body Shop company website)[65]

The company has reported the performance of Eco-friendly management and marketing activities, policies, and improvable directions to consumers and employees, and all employees including executives are working with ethical responsibilities. Additionally, The International Service Centre by The Body Shop has actively presented Eco-friendly policies and management systems to help Eco-friendly activities of affiliates and franchise networks.[66]

Environmental Energy Campaign in 2001, which was spread out by the convention of The Body Shop and the Green Peace has been a key role to emphasize on the importance of renewable energy in order to prevent global warming. The petition of 1.6 million customers and the cyber-environment activists in 2002 was a big help to persuade UN so as to encourage all nations to use renewable energy.[67]

By this time, we looked at a company’s case of Eco-friendly marketing implementation between South Korea and the UK. In general, it can be seen that awareness of Eco-friendly marketing among South Korean companies is still not integrated but simplified. The reason it is simplified is due to deep-rooted consciousness that the increasing sales and profits through improvements of corporate image are more primary than product-development and quality improvement towards customers. This has been proven by the fact that the majority of corporate Eco-friendly marketing activities in South Korea still remained at a certain level of ads or campaigns and most contents are similar as well.

Thus, for the sake of Eco-friendly marketing in true meanings along with the profit-guarantee of companies, it seems essential for individual companies to induce a new environmental management paradigm. Finally, based on earlier statement, problems of South Korean companies in practice of Eco-friendly marketing strategies can be analyzed by the aspect of strategic marketing as follows.

In South Korea, concepts and directions for Eco-friendly marketing strategies have not clearly been settled yet; thus, Eco-friendly marketing applied by South Korean companies is simplified, and building an effective Eco-friendly marketing strategy or practical implementations are not performed. Furthermore, the majority of South Korean companies have no specific marketing goal for environmental management with nothing of both an explicit understanding about it and basic infrastructure. Consequently, Eco-friendly marketing has been utilized as a simple business activity in order to improve ethical corporate image.

As repeated in this process, Eco-friendly business activities cannot be supported by technology-innovation; therefore, at the same time, companies in South Korea are not able to plan effective product-strategy and price-strategy caused by the fact that investment in production facilities for green products as well as innovation of distribution are not performed. Of course, companies can walk away from seeking profit; however, as ethical responsibilities have recently emerged by way of a key issue in the fate of organizations, the notion that marketing concept should be able to meet customers’ needs as well as social needs at the same time is predominant among people.

Therefore, it is, regardless of corporate size and management philosophy, necessary for South Korean companies to change their strategic position in Eco-friendly marketing from the low level of product-oriented and sales-oriented to more advanced stage for Green Mind.

A large percentage of corporations in South Korea have a tendency to be over-credulous about ISO certification as namely the correct environmental management criteria. Currently, there are many companies that have lawfully obtained the certification; on the other hand, it has raised much suspicion about ISO certification in that many negative stories such as the illegal issue and violations were exposed by media. According to the survey of KFEM in 2005 [68], some of the companies which have ISO certifications were persecuted due to discharge of pollutants, and it was disclosed that 12 agencies out of 34 (35.2%) for ISO certification approved inappropriate cases and issued illegally. The type of unreliable certifications can be divided into the following five cases.

(Source: KFEM, ISO Survey Results, 2005) [69]

According to the ISO International Organization, in the end of the year 2004, the number of 90,569 companies had been certified in 127 countries, and 5893 numbers of South Korean companies had received certification of ISO14001 (environmental management system)[70]. In other words, if approximately 5000 certified companies had been in actual practice for environmental management, the level of environmental conservation in South Korea would have dramatically been improved. However, as shown in the above cases, it has been pointed out as a main problem that the certification is nothing but a means for external publicity.

In conclusion, when companies try to be out of the overcredulity of ISO and go into environment management system with progressive attitude by themselves, their business-competitiveness will be sustainable in the 21st century.

Unlike the past, the modern consumer is very active and progressive. With green advertising, the most important thing is to show specific performance of environmental products to public in order to achieve its original purpose based on reliability. However, it is not so easy to expose Eco-friendly performance in products on advertising within a short time. First of all, technical support is needed, and there is little possibility to reveal visual effects towards consumers. That it, the significant constraint is to deliver the message of Eco-friendly or ethical products so that consumers can clearly understand.[71]

As the result, current Eco-friendly or green advertising of South Korean companies are not in detail but in a broad sense. After all, because it is difficult for South Korean companies to produce a true advertising of Eco-friendly products, most advertising are indiscriminately used by wrong words that is able to give misunderstanding, simplified pictures, and symbols, or even though implying specific messages, there has been advertising in order to highlight ethical corporate image inserting only Eco-friendly messages along with a small performance almost ignored. From the reason above, in the U.S[72], the indiscriminate use of Eco-friendly words in advertising is prohibited by Federal Trade Commission; therefore, it is also pointed out as another problem for South Korea in that a specific law is not still enacted.[73]

It is true that there is a considerable gap between Eco-friendly consciousness and behavior. According to the survey of Korea Consumer Agency in 2004[74], most South Koreans are green consumers, and the preference rate of Eco-Friendly products among Korean respondents was recorded well over 70%. However, the reason these results are not connected to purchasing Eco-friendly products is caused by the inveterate distrust of consumers in South Korea.

The cause of this failure can be, undoubtedly, seen as the fact that for two decades South Korean companies not only have employed Eco-friendly marketing as a simple business activity concentrating on a positive and friendly concept for superficial corporate image without practical efforts but also focused more on the superficial contents and products on advertising. In the meantime, from the false marketing implementation, consumers are no longer having confidence of Eco-friendly products; even worse, only negative idea that those products are not related to environmental conservation and are rather expensive than others has been expanded.

In conclusion, it is needless to say South Korean companies have to redefine and replace Eco-friendly marketing strategies themselves in order to change the negative consciousness of consumers.

If Eco-friendly marketing can be successfully achieved, the whole process of companies should be operated with Green Mind, and all employees must have the Eco-friendly consciousness. However, the internal atmosphere of the South Korean companies has been generalized in that business activities related to environment are complementary for publicity when their financial status is substantial. Thus, in this situation, Eco-friendly marketing cannot be faithfully implemented. Plus, even if it is performed by companies with devoted mind, the fact that the policy of South Korea government cannot fully support is also true.

Basically, Eco-friendly products should be developed so as to be environmental friendly from product design to disposal, reflecting green consumer’s needs because Eco-friendly product can be defined as the thing that includes environmental requirements such as efficient allocation of resources, prevention of pollutant emission, and so on. The following table <4-2> shows the successful factors and requirements in the development of Eco-friendly product.

(Source: Cheong, H.B. 1997)[75]

In recent years, because the trend of customers’ interest in terms of Eco-friendly products shows a tendency not only to be focused on the degree of Eco-friendly but also to be highlighted on whether it is detrimental or not when they use products, those factors stated in the table above should be reflected in the product strategy. [76]

With price strategy of Eco-friendly marketing, the most important consideration is how to establish a sustainable price, which do not entirely shift the cost to produce green products on to customers as well as do share the cost together with companies, communities, and customers to be able to expand Eco-friendly products. Thus, it should be considered for the price strategy in two standpoints.

Firstly, it can be microscopic price strategy. Eco-friendly products cannot be produced and provided by the existing pricing system and normal costs because the general pricing, which do not consider environmental problems is practically far lower level in price than Eco-friendly pricing. Thus, it is necessary for companies to enhance current Eco-friendly price strategy in order to achieve sustainable improvements for Eco-friendly products. In other words, the price of Eco-friendly products should not only be reflected in the level of reasonable price but also be led

to the way that complements the cost gap through profits, which are obtained from reduction of waste and improvements of environmental technologies. After all, it will be required a new marketing strategy to encourage positive acceptance of the price to purchase Eco-friendly products concurrently with Counter Marketing[77] towards non-Eco-friendly goods; additionally, at the level of government, the way the state levies an environment tax on a product that causes environmental destruction can be also one way to support Eco-friendly marketing indirectly.

Next, in view of macroscopic, in case environmental damage gradually increases, it will cause destruction of traditional economic system. Therefore, a new green economic structure should be developed. For these Green Prices stated above, advanced countries pay attention to economic activities through barter system as an alternative to be able to contribute to both the market growth of Eco-friendly product and local economy. For example, the council of Vancouver in Canada and Gloucester in the UK has connected machinery or second hand goods with consumers who want as a type of barter systems through the Local Economy and trade System (LETS)[78], and consumers are paying the price equivalent for both social/environmental and economic perspective about their products or services.

Until now, the price strategy in marketing mix chiefly has been emphasized on managing economic point of view, but social /environmental perspective will have to be adopted in order to achieve successful implantation of Eco-friendly marketing strategy.

Nowadays, because distribution strategy in Eco-friendly marketing has been concentrated on both establishment and problems of reverse distribution channel management for recirculation, there must be much investment to the improvement in the rate of waste recycling and reuse based on dimension of strategic development.[79] With enterprise, the issues including technology-development for recycling and reuse, additional cost, distribution-problem, and the program to attract active participation of both consumers and companies should be fully reflected in the process of strategy development.

Apart from this view, packaging has been emerged as a main target in management in order to settle environmental problem related to distribution rather than a component associated with product because packaging is directly related to environment. A case in point, exaggerated-packaging provides lack of value and may be often a target of criticism as wasting resource in environmental aspect together with inefficient design and disposable packaging. [80]

Consequently, taking a prudent selection in materials of packaging or containers can be seen as opportunity to be able to improve environmental performance through distribution strategy without replacing core products. Lastly, for strategic distribution management, security of Eco-friendly source needs to be highlighted since it is difficult to procure the site for responsible activities such as recollecting facilities of waste due to NYMBY (Not In My Backyard) phenomenon as constraints.

In promotion strategy, we can consider many types of strategies; however, in this research, it will be argued of advertising strategy, which not only is the most familiar way to approach consumers but also is the most interested part from the standpoint of companies. Although Eco-friendly Advertising has made sympathy with consumers, it still remains at superficial level as a new form. Thus, it is needed for organization to consider a new strategic approach as into four steps below.

As a first guess, it will take an irrelevant way which has nothing to do with the original policy as well as short-term effects if advertising strategy aims at sales of Eco-friendly products. From the reason, setting specific goals for the long-term strategy including notice of eco-friendly products and policies, image-building/improvement, consumer education green consciousness, and so on is needed.[81]

Secondly, as both emerging consumerism and the spread of environmental protection movement, segmentation of customers should be more diversified based on social marketing [82] in order to be able to reflect the personality of green consumers with category of beliefs, attitudes, and value beyond traditional demographic and socio-economic characteristics.

In the third place, it is required that green advertising is more powerfully persuasive with the emergence of consumerism. That is, advertising message should be configured to be able to connect with the product concept simultaneously satisfying environmental needs. In fact, consumers can have reaction with high confidence to rather the concrete than the abstract; thus, it will have to completely not only take advantage of both verbal symbols and symbolic visual to naming of new products, new business, and advertising strategies but also be recognized by discriminatory ads.[83]

Lastly, there is a requirement to establish appropriate promotion strategy through analyzing media segmentation; for instance, the application of visual elements in TV ads, communication of direct information and contents in radio ads with effective sound, and print media including newspapers and magazines as the complements may be effective in the process of Eco-friendly promotion strategy. [84]

As environmental pollution has emerged as a social problem, Companies around the world are in a hurry for introducing Eco-friendly marketing strategy due to the fact that social and environmental contribution of organizations became to be able to control their survival in the nearer future. In other words, the companies, which want to be recognized by customers as an ethical organization, are trying to expose their environmental spirit or philosophy in various ways even if they take the risk to pay costs more.

As examined earlier in case studies, still, most of the current South Korean companies have merely emphasized on promotion related to Eco-friendly corporate image only based both on Eco-labeling and relevant certifications or just a little change of products’ property with a superficial big slogan as Eco-friendly marketing or an ethical company. However, to fulfill the requirements of customers, it should be preceded first for those companies to establish integrated environmental management system such as environmental audit and assessment of environmental impact extending from the basis of building correct Eco-friendly policies to the whole process systems including production-equipment.

Therefore, establishing strategies that are able to positively and effectively respond to change of environment are essential so as to build up integrated environmental management system. Plus, we should consider following strategic plans to cope with the situations above.

First, with a deeper understanding about environmental issues and international perspectives, an organization should actively make abilities ready to deal with domestic situations as well as international trends.

Second, it will have to not only positively pursue reconsideration of environmental awareness but also transform appropriate management systems towards environmentalism in the range of its organization from CEOs to all employees in order to create overall corporate Eco-friendly culture. On top of that, there will be a requirement to install a department, which is able to be dedicated to continuous environment-related research and development and Eco-friendly marketing strategy that can be participated in major industry of the future.

Finally, companies will have to build environmental management system as well as to switch the awareness of ISO certifications to the ethics more fundamentally based on environmental protection. The current problem is not the level of economy

but the means of economic activities. Companies should provide technology and ways for a better life through Eco-friendly management, and the government must lead to it through legal regulation. Furthermore, consumers also have to keep the pace with it as an environmental action.

This research has the following the recommendations and limitations.

First, it not only depends on the theory of literature review but also examines the status of eco-friendly marketing practice through piecemeal domestic/outside case studies.

Second, although the concept of Eco-friendly marketing is related to private companies as well as public enterprise, it is another limitation in that this argument was focused on the role of private enterprise. Afterwards, there will be a research that is objective and supported by corroborative proof along with more diversified and wide range of business areas.


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