Discussion 10 : Marketing Management
TonKung
MarketM10.docRead the What Is Cause Marketing? and Why Cause Marketing Is Important and answer the following questions:
- Cause marketing or as sometimes called, cause-related marketing, covers a wide variety of commercial activities that aligns a company or a brand with a good cause. The goal of cause marketing is to generate both business and social outcomes. Now people sometimes confuse cause marketing with corporate social responsibility and corporate philanthropy. Let me explain the difference. Corporate social responsibility is when a company acts and behavesas you would expect your friends and neighbors to do.
For example, the company practices recycling, it avoids polluting the environment, it's law abiding. In other words, the company acts like any other good citizen in the community. I look at corporate social responsibility, or CSR for short, as a generalized form of cause marketingbecause they both aim to do good in the world. For me, though, CSR is an expectation we should have for all companies. Now corporate philanthropy is simply donating money to non-profit organizations or other good causes.
It's writing a check. Now don't get me wrong. I think philanthropy is both important and very generous, but what it often lacks is a specific business objective. Like CSR, philanthropy is more of a feel good approach to enhance the company's reputation. The difference between these two initiatives and cause marketing is all about that last word, marketing. As the famous marketing professor Dr. Philip Kotler puts it, "Social marketing is the use of marketing principles "and techniques to influence a target audience "to voluntarily accept, reject, modify,"or abandon a behavior for the benefit of individuals, "groups, or society as a whole." Think about it, your marketing department is staffed with talented people who understand commercialization of your products and services.
They understand strategy, segmentation, targeting. Well you get the idea. It's a special collection of talent that can be leveraged to create great cause marketing outcomes while at the same time enhancing your market position. What could be better than that? Now there's no doubt that cause marketing, corporate social responsibility, and philanthropy are closely related, and the best companies practice a mix of all three. So take a look at your company's programs, CSR, philanthropic, and cause marketing.
Make sure you understand which ones are which. Cause marketing, or sometimes calledcause-related marketing, covers a wide variety of commercial activities that aligns a company or a brand with a good cause. The goal of cause marketing is to generate both business and social outcomes.
Why Cause Marketing Is Important
- A well designed cause marketing program has many benefits. First is financial. As with any marketing campaign, cause marketing will boost the bottom line. Consider one of the first cause marketing programs ever, the American Express campaign to restore the Statue of Liberty. Because of that campaign, the company saw the use of their credit card increase by 28%. New applications for the American Express card rose by 17%.
This generated millions of dollars of new revenue which more than offset the cost of the campaign. Cause marketing is an effective way to build a brand. Numerous studies have shown that consumers have more favorable attitudes towards those brands that are tied to a cause than those that are not. One of my favorite brands is Ben and Jerry's ice cream. Of course it tastes great, but I've always appreciated the fact that it's a socially sensitive brand that donates to good causes.
I like that. Cause marketing marketing also enhances a company's reputation. Take Johnson & Johnson, for example. It's one of the most respected companies in the world. In 2002, it started the Johnson & Johnson Campaign for Nursing's Future. It was designed to address a critical shortage of nurses in the United States by raising awareness and attracting young people to the profession. Boy did it work. Nursing applications increased 62% over the next 10 years.
The CEO of the National League of Nursing said, "Johnson & Johnson's campaign did something for nursing "that nursing could not do for itself." Now that's how you build a great reputation. Cause marketing makes people feel good, and that generates goodwill. Look at Macy's, for example. Since 1924, the company sponsors the annual Macy's Thanksgiving Day Parade in New York City. It's the world's largest parade, and it's broadcast all over the world.
I never miss it. Whether you shop at Macy's or not, this event just builds a sense of goodness and fun for everyone. And guess who else benefits for your cause marketing? Your own employees. Studies show that more than 75% of employees consider a company's commitment to social issues when deciding where to work. A great cause marketing program attracts top talent and it helps you retain that talent. Employees feel proud and are more motivated when they work for a company that supports a good cause.
Of course, the final reason cause marketing is important is this. The cause itself. A well executed cause marketing campaign is a great to make the world a better place with so many other benefits along the way for you and your team.
Question One
Let's create a cause marketing campaign for your million-dollar idea that you have already discussed in week six. What is the marketing reason for implementing this campaign? Are you trying to keep existing customers, steal from your competitors, or make your employees feel good about working for you?
Question Two
Select the cause you want to support and provide the rationale for that choice. Identify a specific organization that you would like to partner with.
Question Three
How will you structure and promote this campaign to achieve your results? Provide an example to illustrate your point. Provide your rationale.
Respond to Peer(s)
Read and respond to at least two of your classmates' posts.
Respond to Peer 1 : James Booker
Cause Marketing is a type of corporate social responsibility, in which a company’s promotional campaign has the dual purpose of increasing profitability while bettering society. My million-dollar idea from week 6 is a robotic self-propelled suitcase. The cause marketing for this product will be centered on having a working relationship with the American Association of People with Disabilities. The primary purpose of this association is to further the implementation of the provisions of the American with Disabilities Act. The main cause will to be an advocacy company that will push airlines, airports, and cruise lines to provide the needed handicap accessories so handicap people are able to use their services without having to struggle. This may include lobbying so laws are changed that force companies to have handicap assailable products, building, planes and cruise ships. Funding will be done by a percentage of sales being donated to this cause.
The marketing reason for this campaign is to gain new customer and have employees feel good for working for the company. Disable people make up a very large consumer buying base. This particular market contains members from all faiths, racial groups, genders, socioeconomic statuses, and sexual orientations. In order to execute an inclusive marketing campaign, disabled people must be included. Also when employees feel pride in what they do and look forward to coming to work they are more productive. This is a good recipe for increasing profit and making the world a better place.
Along with adding this campaign to product advertising a message will be put right on the product. This message will say that profits from the purchase of this suitcase have helped make the world easier for handicap people. These suitcase are going to be seen in airports, on plains, and on cruise ships. Thousands of people will see these message that travel using these methods. Kiosks will be in airports that will sell the product.
Respond to Peer 2 : Shannon Maxwell
The company that I mentioned before was a food delivery service that offered one set delivery price versus the outlandish costs of some of the other competitors. The marketing reason for implementing this campaign is to create a scenario in which my business trumps the competitors so that we have the upperhand and I always want my employers to feel good about working for my company; if your staff isn't happy, you've got nothing.
A specific organization that I'd like to partner with is Meals on Wheels which delivers meals to elderly individuals that are unable to make or go get their own meals; quite a few of my family members have been recipients of this service and they've loved being able to have someone come in and sit with them for a little bit during their day.
I will structure and promote this campaign by allowing my users to donate to the cause through the app my business will utilize.
