Download Cause Related Marketing an essential tool for branding

Cause Related Marketing an essential
tool for branding
By : Swati Bisht
Associate Professor and Dean PGDM
Institute of Management Studies,
Makkawala Greens, Mussoorie Diversion Road,
Dehradun-248009-Uttarakhand
CK Prahalad once said
 “It is absolutely possible to do
well while doing good”
(Time, 2005).
The Presentation Highlights
 Introduction
 Objectives
 Cause Related Marketing (CRM)
 Proposed Model for CSR and Brand Building
 What makes a brand trustworthy?
 CSR and Celebrity Endorsement
 CSR and Brand Positioning
 Conclusion
 References
. No company would survive for
long if their customers
abandoned them in protest at
having been misled. Corporate
social responsibility, or CSR,
means companies aligning their
values with a greater good and
taking action to have a positive
effect.
Some Definitions
 CSR is about how companies manage the
business processes to produce an overall
positive impact on society.
 "Corporate Social Responsibility is the
continuing commitment by business to
behave ethically and contribute to
economic development while improving
the quality of life of the workforce and
their families as well as of the local
community and society at large"
Objective
The main objective of the paper is to
understand CSR’s contribution in
branding of the organization.
Companies need to answer to two
aspects of their operations
 The quality of their management -
both in terms of people and
processes (the inner circle). |
 The nature of, and quantity of their
impact on society in the various
areas.
Cause Related Marketing
Cause marketing or cause-related marketing
refers to a type of marketing involving the
cooperative efforts of a "for profit" business
and a non-profit organization for mutual
benefit.
From Wikipedia, the free encyclopedia
Cause Related Marketing
 Cause Related Marketing (CRM) can be
an integral part of the corporate social
responsibility strategy of an
organization.
 Cause Related Marketing adds another
dimension to the brand strength of a
brand. It provides the emotional as well
as the rational engagement of the
consumer with the brand.
CSR and Brand Building
86 percent of consumers said that they
would have a more positive opinion of a
company that is doing something to
make the world a better place,
regardless of the cause or issue
concerned
( International Research study in 1996 in the UK
of 1053 consumers done on behalf of Business in
the Community.
Proposed Model on CSR & Brand
Building
What makes Brands Trustworthy?
 Its value orientation in the words of the
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customer after experiencing it.
Consistency in delivery ability to give
satisfaction in every usage
Good Corporate Governance Standards
Contribution towards the universal good
through Corporate Social Responsibility
Endorsement by a Believable personality
Right Communication Strategies (a brand is
what is understood by the customer)
Production of high quality products and
services
It’s a Show Me Rather than Just Talk to
Me
Trust is built only after showing
and proving and correlates with
the saying Action speak louder
than words.
CSR & Celebrity Endorsements
A celebrity with a good past clean
record in life will have a better impact
on the mind of the customer than a
celebrity with a tarnished personal
image.
A popular celebrity icon when
promotes a cause makes a long lasting
impact on the mind of the stakeholders
as most people tend to clearly relate
the cause with the celebrity.
CSR and Brand Positioning
A company into corporate social
responsibility will:
 Attract more competent staff to work
for it
 Encourage more customers to use
the products / services of the
company.
Some Cos to name a few that have
taken nice CSR initiatives:
 Buckets for the Cure campaign by KFC
 Unilever’s Project Shakti
 Coca Cola purchasing its first renewable
energy certificates (RECs)
 Target’s Bullseye Gives program –Facebook
Conclusion
CSR is indeed the need of the hour
.If every company does its own bit,
the world surely will be a better
place to live in. CSR is not just cause
related initiatives but it also is
producing and marketing high quality
value oriented products and services
and also maintaining high corporate
governance standards
.
References
Books:
 Balu R. 2001. ‘Strategic innovation: Hindustan Lever
Ltd’. Fast Company, Issue 47, page 120.
 Hammond A, Prahalad CK. 2004. ‘Selling to the poor.’
Foreign Policy, May-June, 2004.
JOURNALS
 C.L. Cone, M.A. Feldman and A.T. DaSilva, “Causes
and Effects,” Harvard Business Review 81 (July
2003): 95-101.
CONFERENCE & SYMPOSIUM PAPERS / NEWSPAPERS
 Crook C. 2005. ‘The good company,’ The Economist,
20 January, 2005.
 Dussault AM. 2006. ‘Light headed,’ The Hindu, 24
February, 2006.
ONLINE RESOURCES
 Fitzgerald N. 2003. ‘CSR: Rebuilding Trust in Business.’
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Available at
http://www.unilever.com/Images/A%20Perspective%20on%
20Corporate%20Social%20Responsibility%20in%20the%202
1st%20Century_tcm13-5520.pdf [30 March 2007].
HLL. 2002. ‘Analysts Meeting. Results.’ Available at:
http://www.hll.com/investor/Quarterly%20Results/2002/Q1
ResultsPresentation02.pdf [30March 2007].
Chandran R. 2003. ‘All for self-control.’ Business Line, 24
April, 2003. Available at:
http://www.thehindubusinessline.com/catalyst/2003/04/24/s
tories/2003042400020100.htm [30 March 2007]
Marketing Practice. 2006. Available at:
http://marketingpractice.blogspot.com/2006_02_01_archive.
html [30 March 2007].
http://mashable.com/2010/02/18/corporate-social-goodcampaigns/
.
Thank You