* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download Present Situation and Strategies of Public Welfare Marketing in
Bayesian inference in marketing wikipedia , lookup
Social media marketing wikipedia , lookup
Food marketing wikipedia , lookup
Neuromarketing wikipedia , lookup
Affiliate marketing wikipedia , lookup
Marketing communications wikipedia , lookup
Marketing channel wikipedia , lookup
Target audience wikipedia , lookup
Marketing research wikipedia , lookup
Sports marketing wikipedia , lookup
Target market wikipedia , lookup
Digital marketing wikipedia , lookup
Ambush marketing wikipedia , lookup
Multi-level marketing wikipedia , lookup
Integrated marketing communications wikipedia , lookup
Youth marketing wikipedia , lookup
Guerrilla marketing wikipedia , lookup
Marketing strategy wikipedia , lookup
Viral marketing wikipedia , lookup
Advertising campaign wikipedia , lookup
Sensory branding wikipedia , lookup
Direct marketing wikipedia , lookup
Marketing plan wikipedia , lookup
Multicultural marketing wikipedia , lookup
Marketing mix modeling wikipedia , lookup
Global marketing wikipedia , lookup
Present Situation and Strategies of Public Welfare Marketing in Chinese Private Enterprises: A Case Study of R Enterprise ZHOU Hongyong1, RUAN Jiachun, QIU Junjie2 1 School of Business and Management, Shaoxing University, Zhejiang, P.R.China, 312000 2 school of finance, shanghai University of Finance and Economics, P.R.China, 200433 Abstract: According to the existing problems of R enterprise in public welfare marketing operation, this paper analyzes the causes for immature operations of public welfare marketing in Chinese private enterprises, and puts forward four suggestions including building a scientific concept of establishing public welfare marketing, producing public welfare marketing strategies, establishing a complete system of public welfare marketing and utilizing feasible form for public welfare marketing, in order to enable enterprises to effectively carry out public welfare marketing. Keywords: private enterprises, public welfare marketing, problems, strategy 1 Introduction With the rapid development of science and technology, China’s economy has entered the phase of global competition. So enterprises must try their best to get rid of their traditional practice of marketing for the sake of marketing and at the same time shoulder their social responsibilities by implementing “public welfare marketing” that conforms to social ethics and morals. Public welfare marketing refers to marketing strategies that the enterprises employ to enable consumers to cultivate their preferences for the products and primarily choose their products as their purchase decisions, by starting from the point of human development and social progress, communicating with the consumers through public welfare activities to establish good company image. In recent years, public welfare marketing has already received more and more attention as a powerful and influential marketing method. However, because this is a newly introduced practice and also because the enterprises are strongly influenced by the traditional Chinese culture, Chinese enterprises always face many problems and traps in the actual implementation process of public welfare marketing and cannot give full play to the function of this type of marketing. Based on the problems of R enterprises in operation of public welfare marketing, this paper analyzes the causes for their immature operation of public welfare marketing in Chinese private enterprises, and brings up some relevant countermeasures and suggestions in tackling these problems in the hope of enabling enterprises to effectively implement public welfare marketing strategically. 2 Problems of Public Welfare Marketing in R Company Table1 Main Methods of Public Welfare Activities and Investment of R company Unit: 10,000 Yuan Year 2006 2007 2008 Project Charity 3600 300 400 Social Culture 100 200 0 Educational Development Internal Culture Sum 400 60 4160 1000 25 1525 68 0 468 As a big enterprise engaged in producing and managing dying materials, R company enjoys the reputation of a national key high-tech enterprise belonging to the national top-500 companies, one of the big international production bases, and a representative Chinese private enterprise. R Company puts 365 great emphasis on public welfare activities: sponsoring education and road-building that benefited local people as well as the society. In total, R Company has invested more than 60 million Yuan RMB in the activities mentioned above. These activities mainly include charity work, social culture, educational development, internal enterprise culture and etc. (as shown in Table1), for which the company has gained many philanthropic awards. However, subjected to traditional Chinese concepts of doing good deeds without pursuing honorable titles, the development of public welfare sales activities of R Company still remains in the primary stage, with most of their activities limited to donations, which indicate that there is still a long way to go to reach the standards of public welfare marketing. In its true sense this situation is not equal to the public welfare responsibilities the company has already shouldered. 2.1 Lack of Strategic Orientation Instead of being simply composed of charity activities, public welfare marketing is an integral systematic project which runs through the whole marketing link. It not only demands a theme that agrees with the operational concept of the company to fulfill the company’s social responsibilities, but also carries out public welfare activities continuously under the guidance of the best public welfare strategies that can promote the development of core businesses of the company. The continuous public welfare activities can produce “1+1>2” effect, which can greatly facilitate the company’s development. Mainly concentrating on items such as charity, disaster relief, education and poverty alleviation, current public welfare behaviors of R Company are not integrated in its business strategy. Although the company has participated in a wide range of public welfare activities with great enthusiasm, especially in some disastrous accidents, these activities only show their Chinese philanthropic mind in business operations instead of fully interpreting and infusing the core business operational concepts in the activities, which led to a lack of values and guidelines in public welfare marketing, restricting its effectiveness. Besides raising the reputation and popularity of the company temporarily, these charity activities cannot fully encourage the society to better identify the core business concept of the company or even the company itself, which enormously limited the public welfare marketing effects of the company. 2.2 Lack of Professional Implementation Department Public welfare marketing is the common practice of multinational enterprises, and most organizational structures set up professional departments to take charge of these jobs. Usually, a certain amount of fund is taken out of the sales revenue at a fixed rate to be allocated to the public welfare business department of the company. The public welfare business department will select public welfare projects according to the products and marketing strategies in inspecting projects. In selecting public welfare projects, the department needs to take the company’s brand strategy into consideration. In other words, it should check whether the project is in agreement with the culture and values of the company, and closely combine the public welfare projects and products with services provided by the company together to its best ability. It’s quite another matter in R Company, as the R Company has no specific department to implement public welfare marketing, which makes the company seldom think about strategy establishment of public welfare marketing, let alone utilizing charity sponsors as a marketing strategy. The causes for the two problems are as follows: firstly, the ambiguity of the entrepreneur’s behaviors and the enterprise behaviors makes it hard to define the charity behaviors as individual behavior or collective enterprise behavior, leading to discounts in effects of public welfare marketing, which is not equivalent with the current public responsibilities shouldered by the company; secondly, restricted by outdated public interpersonal relationship and traditional methods, the company doesn’t know how to utilize charity activities to do marketing, and it is very likely to lose good opportunities in a confusing state, or may even create a bad public image of “eagerness for quick success and instant benefits” and “selfish and unjustified purpose” because of untimely over-publicizing and media hype, drawing public criticism and 366 becoming a bad example. 2.3 Lack of the Consciousness of Combining Public Welfare Marketing with End Marketing Activities The basis of public welfare marketing is charity activities, and charity activities in public welfare marketing are not purely philanthropic. Enterprises must combine charity with public welfare marketing, and increase popularity of the company through charity activities to cultivate consumers’ preferences for their products and services, maximize the enterprise profits and achieve win-win-win situation of the enterprise, public welfare organizations and specific groups. However, charity activities of R Company do not combine charity activities with enterprise marketing in many circumstances to cultivate consumers’ preferences for their products and services or increase popularity of the company through charity activities. Its understanding of charity activities only stays at the low level of paying back to society, which led to the low level of public welfare marketing whose purpose is only to blow out a slogan without substantial contents. Because of the lack of public welfare marketing consciousness, the company usually downplays the potential opportunities hidden in public welfare marketing. Many donating behaviors are blind or without plans, which will obviously significantly discount its influences and fall short of marketing performances. 3 Countermeasures for Private Enterprises to Enhance Public Welfare Marketing Performances With the progress of the times, advance of consumers’ consciousness and rising standards of the company’s self requirements, public welfare marketing will become more and more prevalent. In market competition, enterprises will develop itself while consciously shouldering their own social responsibilities through establishing a public welfare marketing system, and will gain a higher level of trust in the public, forming enormous intangible assets and making its products and services more attractive to consumers. 3.1 Establish Scientific Public Welfare Marketing Concept In a time of product homogenization, the power of brand mainly originates from customer relationships while consumers mainly acquaint themselves with products through enterprise recognition. Therefore, charity activities in public welfare marketing are not purely philanthropic, but designated marketing activities that enable consumers to feel the enterprise brands and touch the products, achieving the unification of interests of consumers and enterprises. Public welfare marketing is marketing behavior that brings “substantial results” to the enterprise by carrying out marketing activities “effective for a period of time” based on social hotspots. On the basis of public benefits, the company should find out the conjunction point of time and brand, establish the connection between brand and event, and publicize appropriately to realize the marketing behavior of the company by giving consideration to both public benefits and enterprise substantive results. Charity needs to be done while benefits should not be abandoned. Profits are the life of enterprises while collectivity and public benefits are emphasized in traditional Chinese culture. Therefore, public-benefits-before-profits in speaking and profits-before-public-benefits is absolutely not hypocrisy, but a public welfare marketing strategy fit for Chinese culture. 3.2 Draw Up Explicit Enterprise Public Welfare Marketing Strategy Domestic enterprises lack systematic and strategic planning in public welfare marketing. The understanding of public welfare marketing of some enterprises is taking out an amount of money to do charity work and a large amount of money to publicize it, which brings huge profits. Actually, this is a kind of event marketing whose purpose is to form and enlarge news exploding point through public welfare activities and events, but this cannot maximize the marketing performance. Therefore, 367 enterprises must draw up public welfare marketing strategies and planning, with a long-term view instead of current benefits. As the cycle of public welfare marketing input is relatively long, short-term investment cannot product obvious effects, and the eagerness for quick success and instant benefits needs to be overcome. Although Chinese private enterprises constitute the backbone of Chinese public welfare and charity enterprise from statistical results, people often feel that multinational tycoons donate in more projects and make a greater contribution to public welfare enterprises. The vast contrast between statistical figures and cognition indicated the lack of public welfare marketing strategies. Therefore, companies should have a strategic view for enterprise public welfare activities, bringing competitive edge to the company while solving social problems. Enterprises should select social problems that intersect with their own businesses to create shared values of enterprises and society. 3.3 Establish a Complete and Thorough Public Welfare Marketing System Although Chinese entrepreneurs, especially those of private enterprises, usually engage in public welfare activities individually, this kind of donation behaviors is charity behavior instead of public welfare marketing. In the long term, however, public welfare marketing will become an indispensable marketing tool and important means for companies to fulfill their social responsibilities while realizing self-value elevation. Development of public charity enterprises and government’s vigorous support will eventually make public welfare enterprises become common practice of companies. Therefore, Chinese enterprises should establish public welfare charity departments to consciously implement public welfare marketing as the necessary option of marketing innovation and fulfilling citizen obligations. Chinese enterprises should learn from the mature public welfare marketing system of foreign-funded multinational companies and determine the donation amount by the whole development strategy of enterprises. In the meantime, the enterprises should implement overall public relation publication strategy in all stages of charity behaviors to form a complete and rational public welfare marketing system. 3.4 Utilize Various Feasible Public Welfare Marketing Forms In selecting marketing forms, enterprises should opt for effective marketing behaviors according to production and operational development stages and specific circumstances. Against the same economic background, some enterprises need a kind of public welfare marketing with short-term effects, while others need long-term effects; some enterprises need public welfare marketing while others do not. So enterprises should determine whether they really need public welfare marketing through rational judgments according to different development stages. Further on, in cases that public welfare marketing is necessary, companies should determine which form of public welfare marketing should be adopted and how it can be organically combined with other forms of marketing in search of the most appropriate marketing mix for the companies. 4 Conclusions Influenced by traditional Chinese culture, Chinese enterprises face many problems and traps in the implementing process of public welfare marketing, and cannot give full play to its functions. Enterprises must establish scientific public welfare marketing concepts, set up explicit public welfare marketing strategies, build complete and thorough public welfare marketing system, and utilize feasible public welfare marketing forms, etc., so that public welfare marketing can be smoothly and effectively carried out. 368 References [1]. Cao Fengyue. Enterprise Business Ethics and Responsibilities---Harmony and Co-existence of Stakeholders and Enterprises [M]. Social Science Press. 2006. In Chinese [2]. Malcony. Public Welfare Marketing [M]. Mechanical Industry Press. 2007 [3]. Michael Porter et al. Strategy and Society: Relation between Competitive Edge and Social responsibilities of Enterprises [J]. Business Review. 2007 (11). [4]. Wang Yue, Huang Haoming. Multinational Companies and Public Welfare Enterprises [M]. Scientific Literature Press. 2005. In Chinese [5]. Wu Guanzhi. Non-profit Organization Marketing [M]. RUC (Renmin University of China) Press. 2003. In Chinese ( ( ) ( ) 369 )