CAUSE MARKETING AND CAUSE RELATED MARKETING

By

G.Venkatachalam G.Venkatachalam M.Com, MBA, M.Phil, (Ph.D)M.Com, MBA, M.Phil, (Ph.D)

Associate Professor/MBAAssociate Professor/MBA

CAUSE MARKETING

Promoting social issues through

efforts such as Sponsorships, licensing

agreements And Advertising

Benefits of Cause marketing

Can improve social welfare Create differentiated brand positioning Build strong customer bonds Enhance the company’s public image Reservoir of goodwill Boost internal morale Drive sales Increase market value of firm

Effect on Branding Aspect

Cause marketing can:

Build brand awareness

Enhance brand image

Establish brand credibility

Evoke brand feelings

Create a sense of brand community

Elicit brand engagement

Branding Cause MarketingThree potential options:

Self branded: Create own cause program. Eg:Ronald

McDonald House charities, Friends for life, NGOs like

Thrani, NAACO.

Co branded: Link to Existing cause program.

eg: Reliance’s sponsorship with Help age India.

Jointly branded: Link to existing cause program.

Eg: conducting football match and cricket match by big

business groups for funding poor children, or natural

calamity.

Choosing a cause

Companies choose to focus on one or a few main causes.

eg: Mc Donald’s sponsorship of a guerilla at Sydney zoo

with an aim to protect the endangered species. Single cause- may limit the pool of consumers or stake

holders. eg: many companies have shown breast cancer as a cause.

Multi causes that fit their corporate image and brand image. eg: Tata steel, Gillette, Melinda gates foundation, Arvind eye care..

Friends for Life-Road safety campaign

CAUSE RELATED MARKETING

Donating a percentage of revenues to a specific cause based on the revenue occurring during the announced period of support.

Commercial activity in which companies and nonprofit organizations form alliances to market an image, product or service for mutual benefit.

It also sponsors non-profit organizations and charities Cause related marketing is practiced on the rationale that

consumers are human beings are kind hearted. The customer pay the amount with some satisfaction that the specific amount is to for  relevant social cause

Why Cause Related Marketing?

Seeking ways of benefiting community organizations while also furthering companies’ business goals.

Enhance a company’s reputation and brand image

Impact a company’s bottom line through increased sales

Attracting and Retaining Customers Market Differentiation Outreach to Niche Markets Motivated and Loyal Employees, Employee volunteering Reinforced Company Mission Contribution to society

Cause related marketing - Examples

BILT the notebook manufacturers concentrate on

providing education to drop out school children in rural and urban areas.

ITC has its motto itself as Enduring value. For every classmate notebook u buy, ITC contributes Rs.1 to its rural dev initiative that supports primary education in villages

Ford Division- Ford Division has been a leading partner of the Susan G. Komen Breast Cancer Foundation’s Race for the Cure events in the fight to raise awareness and the resources necessary to eradicate breast cancer.

Indian Examples

Tata Group: Run Endowment Schemes to provide

higher education for deserving Indians, presented the

first corporate sustainability report, social services—

the thrust area rural development, community health,

basic education and vocational training. It also spends

on basic infrastructure and disburses money through

various charitable trusts and relief and reconstruction

societies.

Infosys: Formed in 1981 by N R Narayana Murthy, Infosys follows a socially responsible and sustainable path in conducting business. The company believes in sharing the wealth with the community and its employees.Sudha moorthy foundation is into social services

A V Birla Group: The A V Birla group’s initiatives are channeled through The Aditya Birla Center for Community Initiatives and Rural Development spearheaded by Rajashree Birla (wife of Aditya Birla). All the Group companies are dedicated to social development. Hindalco an AVB grp company is the best example for cause related marketing.

HLL announced a contribution of Rs 0.50 on the sale of each of its brand of lifebuoy brand soap to a diarrhea project

Marketing in the 21st century/ Cause related

Marketing

Green marketing

It is a known fact that marketing strategies of various companies across the globe have been influenced by environmental issues.

Thus green marketing incorporates a broad range of activities, including product modification, changes to the production process, packaging changes, as well as modifying advertising.

For example: the cost of installing solar energy is an investment in future energy cost savings.

The 3 R s of Green Marketing

Reduce

Reuse and

Recycle.

De-marketing

De-marketing, the methods that have been used to

reduce market demand for a particular item or

product.

De-marketing usually involves the alterations of

marketing mix variable to affect lesser demand

when it is bigger than an organization can or able to

tackle the situation.

Oftentimes, de-marketing methods involve raising

prices, reducing advertising and promotion

expenditures, or deleting product benefits.

Viral marketing

Viral marketing is any marketing technique that induces

web sites or users to pass on a marketing message to

other sites or users, creating a potentially exponential

growth in the message’s visibility and effect.

Nowadays, it is practiced in such a way that there can be

more emails that are very attractive which immediately

gets the attention of the receiver and he/she in turn

passes this to many recipients who would also do so to

others there by creating a chain of action that will result

in the message being passed to many people which the

company normally may not be able to reach.

Guerrilla marketing

Guerrilla marketing is a form of unconventional

marketing intended to get maximum results from

minimal resources. It was coined by Jay Conrad

Levinson; guerilla marketing is more about matching

wits than matching budgets. Guerilla marketing can

be as different from traditional marketing as guerilla

warfare is from traditional warfare.