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Running head: Cause Related Marketing 1 Cause-Related Marketing Name Institution Lecturer Course Date Running head: Cause Related Marketing 2 Cause Related Marketing (CRM) Introduction Cause-related Marketing is a Commercial agreement based on a win-win circumstance for the two parties involved: the firm and supported social causes, while customer gain is secondary. However, consumer involvement is important to ensure a successful marketing strategy connected to a cause and should be cultivated by majoring on the long-term benefits to consumers via proper positioning and proper targeting of the audience. Cause-Related Marketing classically incorporates the corporate donation to a cause being undetermined on consumer purchase to some extent. It should be noted that the mandate for CRM activity is based on a firm’s marketing function. The best form of CRM is the link between the buying of goods and services and channeling of revenue to a particular charity or a cause (Dan Anghel, Florentina Grigore and Roşca, 2016). Concept Cause-Related Marketing is a concept that gets deeper meaning in some parts of the world, like Europe, where marketing analysts have concluded that supporting a cause is a chance for enhancing corporate reputation, increase consumer loyalty, raise commodity awareness, and build sales (Kotler and Lee, 2005; Siltaoja, 2006). CRM is taken as a communication channel that emphasizes on the commodity equity (Hoeffler and Keller, 2002, Lewis, 2003). Among other benefits, CRM help marketing analysts to stay connected with customer’s preferences and moods as it uses very sensitive and relevant tools to society (Kotler and Keller, 2006). Benefits of Cause-Related Marketing Campaign (Kotler and Lee, 2005): i. Attracting new customers ii. Reaching niche segments iii. Increasing sales of products and services Running head: Cause Related Marketing iv. Creating a positive image of a commodity v. Raise funds for a social cause 3 Customers are not just satisfied to get a product or a service, but they expect a value that is beyond quality, and this is making consumers move towards those companies that are engaged in supporting a cause, while there are no changes in price and quality of commodities or services (Cone 2007). Influence on Consumers The recent research carried out made under the effect of cause-related marketing highlighted the following; i. Women are the most affected in their buying decision by cause-related commodities. ii. Statistically, 52% of the people are always willing to pay more for a product or service associated with a social cause. iii. 91% of the consumers agree that cause-related marketing creates a positive picture of the firm. iv. 87% of the people feel that all organizations should frequently involve in cause-related marketing programs. In conclusion, the significance of social responsibility becomes evident. The most competitive advantage a company has is its reputation. Organizations that enjoy a positive picture will obtain higher costs for their commodities and will have the ability to transform consumer-purchasing behavior (J et al., 2012). Running head: Cause Related Marketing 4 Reference List Dan Anghel, L., Florentina Grigore, G. and Roşca, M. (2016). CAUSE-RELATED MARKETING, PART OF CORPORATE SOCIAL RESPONSIBILITY AND ITS INFLUENCE UPON CONSUMERS’ ATTITUDE. [online] Available at: https://core.ac.uk/download/pdf/6678277.pdf [Accessed 23 Sep. 2016]. J, V., A, L., J, R. and N. van, P. (2012). TO DO WELL BY DOING GOOD: IMPROVING CORPORATE IMAGE THROUGH CAUSE-RELATED MARKETING. [Online] Available at: http://orca.cf.ac.uk/22132/1/Article%2082.pdf [Accessed 23 Sep. 2016].