The Impact of Application Green Marketing Criteria on the Marketing Performance

Table of contents

1. I. Introduction

uring the duration of this study, many of those who were interested on the marketing activities had believed that focusing on the sales volume standard as a success indicator of the marketing activities which seek to build a direct and strong relationship between the company and its customers, and perhaps the increasing of sales volume is what forms all the marketing policies that are used by the company and it represents an evidence for the company's success.

On this basis, many of the production and marketing companies have adopted different policies which consist a lot of inequity toward human and harming the environment, depending on the publicity of these ideas and not form the marketing culture for the consumer, as well as the lack of serious legal legislation, which can stand firmly to curb this trend However, the increasing of environmental problems during the past three decades caused an expansion of the environmental awareness , many problems such as the widening of the ozone hole in the atmosphere , global warming , forest sweeping, as well as acid rain and high levels of air and water pollution , and many of the climatic phenomena ,so that prompted many specialists and researchers to search solutions to these environmental phenomena , and one of these trends was the green marketing as a contemporary philosophical concept which seeks to create a state of suitability between the orientations of the production processes stakeholders and marketing in order to achieve a competitive advantage for projects that seek to apply the contents of green marketing philosophy , so this study comes to verify these environmental trends at the Refining and Petrochemical Company (Petro Rabigh) because it is one of the most productive companies therefore alos increase the hazard of the environmental pollution factors, which reflects the importance of applying the green marketing standards for it , and the role of its organizational culture in marketing performance that illustrated in increasing profitability and customer satisfaction , as a result the positive impression of their work and improving its reputation have a significant role in its survival in the market and work continuation .

2. II. Study Problem

Green marketing is one of the most important and modern strategy which is strengthening the relationship between the organizations and the community on one hand, and between organization and environment protection institutions on the other hand, from this principle, the industrial organizations operating in Saudi Arabia do not provide a minimum of support for the various environmental efforts. So that clearly affects the organization's realization about social and moral responsibility towards the environment and society, so this study comes to answer the following questions: A -Is there a trend from the Refining and Petrochemical Company (Petro Rabigh) to adopt mechanisms for environment and society protection and improve them? B -Is there a possibility that Refining and Petrochemical Company (Petro Rabigh) will apply the standards of green marketing to improve its marketing performance or services which is provided to the community? C -Is there a role of the organization culture which adopted by Refining and Petrochemical Company (Petro Rabigh) influence its trend to adopt green marketing strategy?

3. III. Study Objectives

The objectives of study are:

-Identify the role of green marketing standards in achieving an effective marketing performance at the Refining and Petrochemical Company (Petro Rabigh). -Understand the role of organization culture which adopted by Refining and Petrochemical Company (Petro Rabigh) , that illustrated by the (organizational culture , organizational values , organizational beliefs , organizational trends ), for adoption the green marketing strategy to improve its marketing performance

-Creating an action plan in order to reach to the culture of green marketing, which serves each of the company, the community and the environment.

4. IV. The Importance of Study

The importance of the study illustrated by following:

-The importance of applying the concept of green marketing as modern concept in Refining and Petrochemical Company (Petro Rabigh) . -The Renewable international attention, through the organizations of consumer protection and environmental protection, in order to avoid all kinds of damage whether on the environment or humans

The green marketing principles and requirements form evidence can be guided by the Refining and Petrochemical Company (Petro Rabigh) to achieve the marketing performance which leads to satisfy its customer, improve its reputation and ultimately increase its profitability.

5. V. The Study Model

The Impact of Application Green Marketing Criteria on the Marketing Performance

The following figure shows the study Model H2 H1

6. H3

7. Services

8. Green Marketing criteria

9. Environmental damage

10. Business Ethics Social responsibility

11. Marketing Performance

The Organizational Culture

12. The organization's

13. Culture The Organizational values

14. Customer satisfaction

15. The Organizational beliefs

16. Positive impression organization's Reputation

The Organizational trends

17. Profitability

18. VI. Study Hypotheses

a) The first Main hypothesis H1: There is a significant statistical relationship between green marketing criteria in combination (social responsibility, business ethics, environmental damage, services) and marketing performance.

These sub-hypotheses are derived from the first Main hypothesis: H1a: There is a significant statistical relationship between green marketing criteria in combination (social responsibility, business ethics, environmental damage, services) and between customer satisfaction.

H1b: There is a significant statistical relationship between green marketing criteria in combination (social responsibility, business ethics, environmental damage, services) and between the positive impression.

H1c: There is a significant statistical relationship between green marketing criteria in combination (social responsibility, business ethics, environmental damage, services) and between organization's Reputation.

H1d: There is a significant statistical relationship between green marketing criteria in combination (social responsibility, business ethics, environmental damage, services) and between profitability.

b) The second Main hypothesis H2: There is a significant statistical effect between green marketing criteria (social responsibility, business ethics, environmental damage, services) and marketing performance.

These sub-hypotheses are derived from the second Main hypothesis: H2a: There is a significant statistical effect between social responsibility Crterion and marketing performance.

H2b: There is a significant statistical effect between business ethics Crterion and marketing performance.

H2c There is a significant statistical effect between environmental damage Crterion and the marketing performance.

H2d: There is a significant statistical effect between services Crterion and the marketing performance.

c) The third Main hypothesis H3: There are significant statistical differences between green marketing criteria in combination and marketing performance, they are attributed to the organization's culture (organizational culture, organizational values, organizational beliefs, and Organizational trends)

VII. Literature Review a) The concept of green marketing Green marketing is a philoophy and organized, integrated marketing thought that aims to create a positive impact in the customer preferences which motivate them towards request products are not harmful to the environment and develop.

Their consumption habits in line with it , and work to provide integrated marketing mix based on creativity, which lead to achieve the natural environment's preservation , consumer's protection and satisfaction, as well as to achieve the goal of profitability for the company in order to survive and continue , so the application of the green marketing concept is based on modifying use of natural resources and raw materials which is suitable with environment requirements and production processes modification to match the fundamental objectives of the green marketing (Kärnä ,Jari , (2003), on the other hand , the green marketing is a legitimate child of the social responsibility of marketing because it includes social and ethical considerations in how to highlight the positive effects of the organization and reducing their negative impact on society , both in the preservation of the environment and it's sustainability , or to provide products are not harm on consumer and the environment alike , a lot of marketing scientists and researchers have discussed the concept of green marketing and agreed mostly on the core implications of the green marketing concept, and differences illustrated in formal and verbal drafting of the green marketing concept , ( Henion & Kinnear, 1976) both noted that ecosystem marketing is an " interest in all marketing activities that contributed to create an environmental problems that could contribute to finding a cure for these problems ,Other wise (Peattie, 1995) has pointed to the environmental marketing concept as " the overall management process which responsible for identifying , anticipate and satisfy the requirements of customers and the community in a profitable manner, taking into account the principle of sustainability but (Walter, Coddington, 1993) defines the environmental marketing as " environmental practices led by environmental supervisor as a prove of the growth and progress of commercial process. (Stanton, William, et.al. 2007)) have pointed to the definition of green marketing as " a set of activities that can cause or ease any kind of transactions which aim to meet or satisfy human's need and requirments this without any harm on the natural environment (Pride & Ferrell, 2009) both has been identify green marketing as " the process of development, pricing and promotion of products that do not cause any damage to the natural environment Either ( Bakri,2006 ), has been known the green marketing as " an organised and integrated entrance aims to affect customer's Preferences which motivate

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Volume XV Issue II Version I Year ( ) them to demand products which are not harmful on the environment and modify their consumption habits in the line with it , and work to provide products satisfy this trend. so that the final outcome is the environment preservation, consumers protection and achieve the goal of profitability for the company (Stanton,2007) has defined it as " marketing activity relate to a specific organization , aims to create a positive impact or remove a negative one of a particular product on the environment , etheir (Charter & Polonsky, 1999) define it as: " the process of products marketing or promotion which based on their environmental performance that mean not harmful on the environment .

It is clear that all of these definitions are consistent with each other in their focus on the marketing activities performance within a strong environmental commitment and offering an eco-friendly goods, also to influence the consumer behaviors and their consumption habits in line with this trend, and not inconsistent with the profitable objective for the organization. Thus we can define green marketing (green marketing) as a translation of the social and ethical responsibility requirements for marketing, which came to light in response to the environmental challenges growing in recent years, this marketing approach comes in sync with the growing global interest in the consumer rights protection and emergence of organized environmental movements (environmentalism) aims to protect the rights of people to live in a clean environment.

20. b) The Importance of green marketing

The environmental awareness has been escalated in the most countries of the world , so in the result the organizations had to improve it's organizational culture and strategy to preserve the environment in all it's components , (Johri & sahasakmontri, 1988, 266) have pointed that there are many companies considering the environmental face as a long-term strategy rather than as a way to gain the consumers confidence in the short term , also (Mckenna, 1991,67) said that in order to create a longterm relationships with the customers of Organization ,the marketing administration must make a link between the organization capabilities and customer needs , so that making it available for suitable solutions for environmental problems through development of ecofriendly and green products , processes and services, also the organizations working to create an incomes and profits through transactions which go agree with social and environmental objectives within it's marketing strategy that environmentally committed (Menon, 1997, 54), studies have confirmed that the adoption of green marketing strategy works to reduce the costs and reap the benefits and advantages , and if the company breached it's environmental obligations , it will pay an additional costs and fines by the law which reduces it's competitive ability (Porter & Van der Linde, 1995, 130), Green marketing may achieve many significant benefits and gains for organizations that adopt this concept , the most important are: A-Improving the organization reputation: The organization reputation is considered one of the developments which adopted by the group who deal with it, such as the owners, clients , suppliers, employees , banks, non-governmental organizations , consumers and government. . The adoption of the green marketing philosophy makes the organization close to its customers , particularly those who have an environmental concern , (Bakri,2007) sees that the organizations that adopt the green marketing philosophy have a very strong support from the community at all, because of the compatibility between its objectives and gain new customers in the future , (Miles and Cavin,2000) have pointed that the good reputation of the organization arise as a result of adopting to a set of principles in the implementation of its various activities such as :

-The principle of credibility with investors , clients and suppliers;

-The principle of trust between the organization, all of the employees, clients and the community. -The principle of dependency -The principle of environmental , social and financial responsibility When the Organization applying the green marketing concepts, dealing in high quality products ,using the honest advertising media , and dealing in socially and environmentally responsible way , it will have a good reputation in the market that help men marketing to make a good exploitation for available marketing opportunities and impact on the behavior of environmentally conscious consumer,that leading to increase the sales and rise in the market value of the shares , thereby maximizing its value and attract investors to invest in it. B-Achieve competitive advantage: It is expected that green marketing approach opens new prospects and attractive market opportunities for Organizations which practised it, so that allowing them to adopt the traditional competition, and thus achieve a competitive advantage . (Ottman, 1998) has pointed that green marketing helps to achieve competitive advantage through create a certain environmental values to the customers and then create eco-friendly market segments, this making it a forerunner organization over its competitors in the environmental term in market. C-Profits: The use of high -efficiency production methods, which rely on fewer raw materials or recycled ones.

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Or saving the energy that would achieve cost savings and thus more profits D-Increasing market share : In the light of increasing environmental problems, the consumers loyalty to the market brand will decline over time, and consumers will turn to buy an eco-friendly products and packaging, so there is an opportunity for organizations which adopt green marketing to increase its market share (Ottman,1998) E-achieving safety in the products providing and operations management : The adoption of green marketing by organizations would make it Always seek to provide what is the best for the green consumers, focusing on the production of safe and eco-friendly goods, through increasing its productivity operations efficiency, that means a reducing in the damage and environmental pollution levels which caused by production processes. . F-the sustainability of activities, through it the green organization can avoid the legal prosecution and gain the community support, because of the general acceptance of its goals and philosophy, and Continue to provide eco-friendly products. G-Personal motivations: green marketing offers opportunities and motivations for responsible managers in the organization to follow the modern and effective methods in providing eco-friendly products and this consider as personal contribution to the environment preserving.. also (Bakri,2006) added a number of benefits which resulting from green marketing practicing. H-satisfying the owner's needs: It is expected that green marketing approach opens up a new horizons and attractive marketing opportunities to those organizations which practiced, at sequence achieving a competitive superiority in the market, that lead the organization to gain higher profits as well as gain a good reputation in the community and meet the needs of the owners-Th-achieving safety in the products providing and operations management : , focusing on the production of safe and ecofriendly goods, through increasing its productivity operations efficiency, that means a reducing in the damage and environmental pollution which caused by these proccess , as well as avoiding the legal prosecution which leads to pay the compensation to the affected people and provoke the associations of environment and consumer protection.. I-achieving social acceptance for organization : organization's environmental commitment Helps to gain a social support to it, consolidate its relations with current customers and gain new customers in the future-J-the sustainability of activities,: when the green organization avoids the legal prosecution and gains the community support, because of the general acceptance of its goals and philosophy, that makes it able to Continue providing eco-friendly products,and supporting its operations and its business activities c) Second: the culture of the organization (Stadha,. 2009 ) has pointed that the culture of the organization has a great role in judging the behaviors and decisions and identifying the acceptable and non-acceptable ones across various levels within the organization , also it awards the organization its identity , in addition it affects the business performance way by influencing the employees behaviors and actions in line with the popular values and beliefs within the organization ( Abdullatif , jwdah.2010 , p 12)

One of the definitions of the organization's culture is " a pattern of beliefs and expectations which shared by members of the organization , and these beliefs and expectations create the criterions and shape the individuals and groups behavior in the organization ( Lok, Peter & Crawford ,John,2003) also ( Alter, 2002: p76) has gone to define the culture of the organization as common understanding about the relationships and practices which determine the behaviors of employees in the organization and the way of achieving works, it is a mixture of written and unwritten promises. (Johns & Saks 2005, p256) has explained that the culture of the organization include a set of values, beliefs and assumptions that shared between Organization's members

The Culture of organization includes the following:

1. Organizational culture: it is a set of values, beliefs, concepts and thinking ways which shared between management and employees in the organization, may be it is unwritten, but it is a cognitive ,and all members involves in its composition ( Abu Bakr, 2002, p 406 ), (Johns & Saks , 2005, p265) has indicated that the organizational culture determines the lifestyle for workers in the organization, and includes the values that describe the life of the organization, so they would be more easily to understand by employees 2. The organizational values , ( Dosari, 2007 ) has identified the organizational values as the common and agreed rules between the workers in the organization which work to determine the behavior of workers in the work environment , such as respect others, as well as the commitment with organization's regulations and laws , the respect of environment and it's all components is considered as apart of organizational values which the organization seeks to be included in the behavior of its employees 3. Organizational beliefs : they are the shared ideas among the employees in the organization which we determine through them the nature of work and social life in the work environment as well as determine how the job is done and divided among workers (Qawi , 2003) also the functional tasks, and the importance of involving employees in decisionmaking (al-Omian , 2010). 4. Organisational trends : ( Jawad , 2010 ) has pointed that it is the positive or negative response of the individual towards things, events or activities, according to what he learned from the rules and laws which used by the organization , also (Qaryouti,2000) has noted that the organisational trends and their role in guiding the individual to act in a certain way it come as a result of his acquisition to them during years of his growth and these trends are influenced by the reference group from his family and friends, etc. either ( Jawad, 2010 ) has defined it as the individual's response to the surrounding environment whether individuals, groups or materials, and it depends on what he learned from the rules, laws and theories so in the end it forms his trends, whether they are positive or negative .

d) The marketing performance The concept of marketing performance

The marketing performance , (Ambler, 2005) has defined it as the level of company's achievement to its objectives which set in the marketing plan , (Gharbaoui ,2007 )has indicates that marketing performance is " the marketing outputs or results , which marketing function seeks to achieve it during a particular period of time , while (Asiggbu, awa, & Ogbonna, 2011)have identified it as " the contribution of the marketing function to achieve the objectives of the organization , also it is the relationship between marketing activities and business performance (Clark & Ambler, 2001).

We can conclude from these definitions that marketing performance reflects the level of organization's success or failure, through its quest to achieve the objectives which illustrated in continuing and adapting the ever changing external environment, the fact that business organizations have become facing a rapidly changing environment in its resources, size of the demand and intense competition in the market, that making them seek to develop a new technologies to enable them to respond to the different variables and achieve thier aims, through using an objective and effective marketing performance standards .

23. VIII. Test Hypotheses of the Study a) The first Main hypothesis

Table (1) explains the following results: A-All sub-hypotheses are accepted, as well as the first main hypothesis because the corporeal significance of all hypotheses came less than a statistical significance (? ? 0.05) . B-There is a significant statistical relationship at the level of (? ? 0.05) between the green marketing criteria(in compination) and marketing performance variables ( customer satisfaction, positive impression, the organization's reputation, profitability). C-on the other hand, through the results of study hypotheses test, a discrepancy in the correlation coefficient values is found between green marketing criteria (in compination) and each a variable of marketing performance, and this Indicates that there is a discrepancy of green marketing criteria's impact on each of them , and the range of this effect as follows: -impact is Strong and there are correlation coefficients:( 0.914 ) ( 0.953 ) ( 0.899 ) ( 0.921 ), for each of the ( customer satisfaction , positive impression , reputation of the organization).

weak impact and there is correlation coefficient ( 0.415 ) for the profitability variable.

b) The second Main hypothesis table (2) explains that the simple regression test of the study variables has a corporeal significance at the level of statistical significance (? ? 0.05), and the value of (F calculated) is ( 37.336 ) , while (R²) was reached ( 0.257) that means that the impact factors explains (26 % ) of marketing performance changes in the Refining and Petrochemical Company (Petro Rabigh)., if one unit of green marketing criteria increases, the marketing performance will also increase at a rate of (48,5% ), and the value of (T calculated) is (6.271), it is a corporeal at a significance level of (? ? 0.05) so there is a corporeal effect of green marketing criteria on the marketing performance. through these results, we can test the Sub hypotheses which derived from the second main one, and Table (3) explains the results of subhypotheses Test.

Table (3) explains all the results of simple regression , which represent the relationship between each criterion of Green marketing on one hand and marketing performance on the other hand, have an effect relation, based on the values of F-test which its corporeal significance levels to each of them are less than statistical significance level (? ? 0.05) . social responsibility criterion explains the highest rate (32.3%) , while services criterion explains the lowest percentages (10.9 %). That means social responsibility criterion has the most important effect on marketing performance from other criteria.)

Therefore, the final result indicates that the four alternative sub-hypotheses are accepted , which states (There is a significant statistical effect between green marketing criteria ( social responsibility, business ethics, environmental damage and services ) and marketing performance at the level of statistical significance (? ? 0.05).

24. c) The third Main hypothesis

In order to exmine the validity of this hypothesis; (One way anova) was used to test the effect of study variables.

Table (4) explains There are No significant statistical differences between green marketing criteria in combination and marketing performance , there are attributed to the organization's culture , it does not have corporeal significance based on the value of statistical significance) Sig = 0.301( and its bigger than statistical significance (? ? 0.05) , so that the alternative hypothesis is rejected and the null hypothesis is accepted .

in addition, The results of (Levene) test indicate that there is homogeneity for the effect variance of the green marketing criteria on the marketing performance due to the organization's culture , the following table shows the result.

table (5) explains that there is homogeneity for the effect variance of the green marketing criteria on the marketing performance due to the variables of organization's culture (organizational culture, organizational values, organizational beliefs, Organizational trends) based on the value of statistical significance (Sig = 0.501), and its bigger than statistical significance (? ? 0.05).

25. IX. Findings

-There is a strong correlation between each of the green marketing's criteria in combination and marketing performance variables (customer satisfaction , positive impression . The reputation of organization), in Refining and Petrochemical Company (Petro Rabigh).

-There is a weak correlation between each of the green marketing's criteria in combination and marketing performance variable (profitability) In Refining and Petrochemical Company (Petro Rabigh). -There is a significant statistical reference between green marketing standards and marketing performance, and the impact of these standards was disparate as follows:

A-The standard of social responsibility explains a higher rate than the rest of the criteria which influence on the marketing performance values, it represented (32.3%), and thus the standard of social responsibility has the largest impact on the marketing performance of the other criteria. B-The lowest interpretation percentage was the standard of services; it represented (10.9%). -There are no significant statistical differences for green marketing standards in combination on marketing performance due to the culture of organization ( organizational culture , organizational values , organizational beliefs , organizational trends ) , and that the impact of green marketing standards on the marketing performance for the four variables of organization's culture is homogeneous .

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Appendix A

Appendix A.1 Appendix

Tabel (1) Test relationship between green marketing criteria in combination and marketing performance Variabels. Sig

Appendix B

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Notes
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Date: 2015-03-15