Track: Sustainability and Green Systems

Abstract

Green Marketing Mix Role Toward Sustainability Performance of Petrochemical Industry

in Indonesia

Yuary Farradia and  Abdul Talib Bon

Faculty of Technology and Management

Universiti Tun Hussein Onn

Batupahat, Johor , Malaysia

juaryfarradia@yahoo.com,  talibon@gmail.com

Tutus Rully 

Faculty of Economics

Universitas Pakuan, Bogor, Indonesia

tutusrully@rocketmail.com

Abstract

Petrochemical industry plays a vital role in the economic growth of a nation then petrochemicals is also considered as a cost-based industry.  Indonesia has higher demand growth against the global demand growth. Therefore, to achieve the industry economic sustainability it is a need to have a better management strategy toward production efficiency. Thus firms should try to incorporate the 4 Ps’ of marketing mix such as green product, green price, green distribution and green promotion into green marketing. The concept of green marketing mix pertains to the elements that are designed to achieve the strategic and financial goals of a firm, particularly in terms of reducing their negative (or increasing their positive) effects on the natural environment.  This study was conducted among petrochemical olefin manufactures based in Banten Province Indonesia. The result showed that green marketing mix directly has a positive effect on sustainability economic performance, environment performance and social performance respectively. In addition, green marketing mix has already start  to  be run within petrochemical industry in Indonesia.

Keywords

Sustainability, Green Marketing Mix, Petrochemical, Green Product, Green Price, Green Distribution, Green Promotion