Download - Cause Marketing
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.