marketing
1) According to Starbucks Chairman Howard Schultz, "Consumers now commonly engage in a cultural audit of [product and service] providers. People want to know your value and ethics demonstrated by how you treat employees, the community in which you operate." Discuss the concept of social responsibility marketing and how it impacts both companies and consumers.
Cause Related Marketing is defined as “a commercial activity by which business and charities or causes form a partnership with each other to market an image, product or service for mutual benefit.”
The main reason for getting involved in Cause Related Marketing is not philanthropy. On the contrary, business gets benefited by linking with charities, at the same time that those charities are benefited as well and so is the consumer. We are talking about a scenario in which everyone wins.
Studies show conclusively that CRM campaigns do work – they have an impact on brand affinity and in turn brand equity, as well as consumer perception, loyalty and actual buying behavior. Also, CRM campaigns can have a greater impact on loyal customer spend than more conventional point-of sale promotions.
HERE ARE SOME OF THE ADVANTAGES OF CAUSE RELATED MARKETING:
• CRM builds Brand Affinity, that’s to say, positive attitudes of the consumer towards the brand that help them make buying decisions.
• CRM increases Brand Equity, by building a well-known brand name it helps getting more money than less renamed name, as it makes consumers think that products sold by a “good brand name” company is better than the same product if sold by an unknown brand. 1
• CRM is respected and accepted business practice.
• CRM heightens Customer loyalty.
• CRM boosts company's public image and helps distinguish it from the competition.
• CRM can help build employee morale, loyalty, productivity, skills and teamwork.
• CRM also can be a way to get rid of overstocks without running a full-fledged discount campaign.
BIBLIOGRAPHY:
Cause Related Marketing is defined as “a commercial activity by which business and charities or causes form a partnership with each other to market an image, product or service for mutual benefit.”
The main reason for getting involved in Cause Related Marketing is not philanthropy. On the contrary, business gets benefited by linking with charities, at the same time that those charities are benefited as well and so is the consumer. We are talking about a scenario in which everyone wins.
Studies show conclusively that CRM campaigns do work – they have an impact on brand affinity and in turn brand equity, as well as consumer perception, loyalty and actual buying behavior. Also, CRM campaigns can have a greater impact on loyal customer spend than more conventional point-of sale promotions.
HERE ARE SOME OF THE ADVANTAGES OF CAUSE RELATED MARKETING:
• CRM builds Brand Affinity, that’s to say, positive attitudes of the consumer towards the brand that help them make buying decisions.
• CRM increases Brand Equity, by building a well-known brand name it helps getting more money than less renamed name, as it makes consumers think that products sold by a “good brand name” company is better than the same product if sold by an unknown brand. 1
• CRM is respected and accepted business practice.
• CRM heightens Customer loyalty.
• CRM boosts company's public image and helps distinguish it from the competition.
• CRM can help build employee morale, loyalty, productivity, skills and teamwork.
• CRM also can be a way to get rid of overstocks without running a full-fledged discount campaign.
BIBLIOGRAPHY: