Transcript Corporate Social Marketing

Specialised & Cause Related
Marketing (SCM812S)
UNIT 2
SOCIAL MARKETING
SCM812S - Unit 2 - Efigenia Semente PON, Source (Adkins &
Peattie, Kottler, Lee, COLL Guide, Simataa E.) 2015
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Unit Objectives
At the end of this unit you should be able to:
 Identify social marketing, corporate social responsibility
and cause related marketing
 differentiate between social marketing and commercial
marketing
 discuss the nature and scope of social marketing
 apply marketing mix concepts to social marketing
 define competition in social marketing
 evaluate the ethical consideration in social marketing
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2.1 Introduction
According to Smith (2013), aspects of public relations,
advertising, and marketing are being jointly applied to
many social issues and causes under the banner of Social
Marketing, sometimes called Cause Marketing. This is a
planned process to influence change via communication
and relationships. It is a conscious attempt to integrate
strategic communication processes and tools to promote
ideas, issues, and concerns, in much the same way that
organisations traditionally have promoted products and
services. There is, however, differences between social
marketing, corporate social responsibility and cause related
marketing as will be shown in the sections below.
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2.2 Social Marketing Defined
Kotler and Zaltman (2011, p. 12) coined the term social
marketing and defined it as “the use of marketing
principles and techniques to advance a social cause,
idea or behaviour”. Social Marketing is a process that
uses marketing principles and techniques to influence
target audience behaviours that will benefit society, as
well as the individual. This strategically oriented
discipline relies on creating, communicating, delivering,
and exchanging offerings that have positive value for
individuals, clients, partners, and society at large.
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Cont’d
Social marketing seeks to develop and integrate marketing
concepts with other approaches to influence behaviours that
benefit individuals and communities for the greater social
good. It seeks to integrate research, best practice, theory,
audience and partnership insight, to inform the delivery of
competition sensitive and segmented social change
programs that are effective, efficient, equitable and
sustainable.
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Cont’d
Although social marketing is sometimes seen only as using
standard commercial marketing practices to achieve noncommercial goals, this is an oversimplification. The primary
aim of social marketing is social good, while in commercial
marketing the aim is primarily financial.
In developing countries, the use of social marketing
expanded to HIV prevention, control of childhood
diarrhoea (through the use of oral re-hydration therapies),
malaria control and treatment, point-of-use water
sanitation methods and the provision of basic health
services.
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Cont’d
In Namibia, the field has rapidly expanded to include active living
communities, disaster preparedness and response, ecosystem and
species conservation, and environmental issues. We’ve also seen
social marketing in financial literacy, government corruption,
improving the quality of health care, injury prevention, landowner
education, marine conservation and ocean sustainability, reducing
health disparities, sanitation demand, sustainable consumption,
water treatment systems and gambling problems, among other
social needs.
Not all social marketing campaigns are effective everywhere. For
example, anti-smoking campaigns such as World No Tobacco Day
while registering some success, have not really curbed the demand
for tobacco products in Namibia.
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Reflection
Is Social Marketing only restricted to government and
non-profit charitable organisations? Explain using
examples.
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2.3 Social Marketing Principles shared
with other disciplines
Many of social marketing’s key characteristics have been
widely adopted by other fields, and in turn social marketing
has integrated practices developed elsewhere. According
to Social Marketing Quarterly (SMQ, 2014), among the
important characteristics it shares with others are:
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Cont’d… Shared Principles
Audience Orientation
Social marketers view their audience as decision-makers with
choices, rather than students to be educated, or incorrigibles to be
regulated. Social Marketing begins with a bottom-up versus a topdown perspective, and therefore rejects the paternalist notion that
“experts know what is best and will tell people how to behave for
their own good” in favour of an audience-centred approach which
seeks to understand what people want and provides them support
in acquiring it.
Segmentation
In order to enhance efficiency and effectiveness, subsets of
populations are selected, evaluated, and then prioritised as targets
based on useful aggregation variables. The segments selected are
those most likely to adopt the intended behaviour or most
important to the organisation’s goals, and to provide value in
yielding societal benefit. Even among difficult to reach populations,
strategies are developed that appeal to those within the chosen
population that are the “most ready for action.”
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Cont’d…Shared Principles
Behaviour focus
Behaviour is defined as an individual’s observable action or lack of
action. Social marketing is interested in behaviour that results in
societal benefit. Many marketing strategies also have intermediate
responses, but Social Marketing success is ultimately measured on
whether the desired behaviour was adopted. It is not sufficient to
merely change awareness, knowledge, attitudes, or behavioural
intentions.
Evaluation
Efforts are evaluated, focusing on ongoing measurement of
outcomes (levels of target audience behaviour change), and the
intended impact this has had on societal benefits. Social Marketing
is a continuous process in which evaluation and monitoring provide
data on the audience’s preferences and the environmental changes
necessary to maintain and expand the impact of programs
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Cont’d…Shared Principles
Consideration of upstream and midstream
target audiences
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Efforts to influence individuals
downstream are often enhanced by also
targeting those who are upstream (policy
makers, corporations), and/or those who
are
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2.4 Unique Principles of Social
Marketing
While social marketing integrates many characteristics
common to other forms of behaviour change, four core
principles remain truly unique to social marketing as
follows:
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Cont’d… Unique Principles
Value exchange
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Social Marketing is unique with respect to
other behaviour change tools in that the
offer that is made is based on an
understanding of the target audience's
perceived self-interest that will be
rewarded for performing the desired
behaviour. The concept of value exchange
states that consumers will choose
behaviour in exchange for receiving
benefits they consider valuable and/or
reducing barriers that they consider to be
important. An exchange may result when
the marketer has created a program that is
perceived by each side to provide value.
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Cont’d… Unique Principles
Recognition of competition
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In a free-choice society there are always
alternative options available.
Competition can be described in terms of
choice offerings available in the
environment that lead to alternative
behaviours. Social Marketing strategies
lead to a unique exchange offering that
is perceived by the audience to have
greater value than that of any other
available option.
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Cont’d… Unique Principles
The 4Ps of marketing
The 4Ps of marketing: Product, Place, Price
and Promotion represent the fundamental
building blocks of Social Marketing
interventions. These tools are used to
reduce the barriers that make it difficult for
people to behave as desired, and to increase
the benefits that induce people to be more
likely to behave. The tools are used in order
to develop a favourably perceived
relationship that is more appealing than all
alternate choices. Social marketers assess
and then balance the need for, and use of,
these four elements to influence optimal
change.
Sustainability
Sustainability results from continuous
program monitoring and subsequent
adjustment to changes occurring in the
audience and environmental condition. This
is necessary to achieve long run behaviour.
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2.5 Social marketing and commercial
marketing
There are a few important differences between social marketing
and commercial marketing. In the commercial sector, the
primary aim is selling goods and services that will produce a
financial gain for the corporation (Kotler & Lee, 2005).
In social marketing, the primary aim is influencing behaviours
that will contribute to societal gain. Given their focus on financial
gain, commercial marketers often favour choosing primary
target audience segments that will provide the greatest volume
of profitable sales. In social marketing, segments are selected
based on a different set of criteria, including prevalence of the
social problem, ability to reach the audience, readiness for
change, and others. In both cases, however, marketers seek to
gain the greatest returns on their investment of resources.
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Cont’d…
Although both social and commercial marketers recognise the need to
identify and position their offering relative to the competition, their
competitors are very different in nature. Because, as stated earlier, the
commercial marketer most often focuses on selling goods and
services, the competition is often identified as other organisations
offering similar goods and services. In social marketing, the
competition is most often the current or preferred behaviour of the
target audience and the perceived benefits associated with that
behaviour, including the status quo.
This also includes any organisations selling or promoting competing
behaviours (e.g. the tobacco industry). For a variety of reasons, social
marketers believe social marketing is more difficult than commercial
marketing. Consider the financial resources required to change
behaviour i.e. smoking, use of papers in offices, less use of fuel and
electricity, etc.
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Class Activity
What do you think will be
the challenges facing a
social marketer when trying
to influence people to do
any of the following and
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 Give up an addictive behaviour (e.g., stop
smoking,)
 Resist peer pressure (e.g., be sexually
abstinent)
 Establish new habits (e.g., exercise five
days a week)
 Spend more money (e.g., buy recycled
paper)
 Give up leisure time (e.g., volunteer)
 Reduce pleasure (e.g., take shorter
showers)
 Spend more time (e.g., flatten cardboard
boxes before putting them in recycling
bins)
 Remember something (e.g., take reusable
bags to the grocery store)
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2.6 Applying the marketing mix
concepts to social marketing
Product, Place, Price and Promotion represent the fundamental
building blocks of Social Marketing interventions. These tools
are used to reduce the barriers that make it difficult for people
to behave as desired, and to increase the benefits that induce
people to be more likely to behave. The tools are used in concert
to develop a favourably perceived relationship that is more
appealing than all alternate choices. Social marketers assess and
then balance the need for, and use of, these four elements to
influence optimal change. Social marketing also adds a few more
"P's" (Kotler & Lee, 2005).
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Product
The social marketing "product" is not necessarily a physical
offering. A continuum of products exists, ranging from
tangible, physical products (e.g. condoms), to services (e.g.
medical exams), practices (e.g. breastfeeding or eating a
heart-healthy diet) and finally, more intangible ideas (e.g.
environmental protection). In order to have a viable product,
people must first perceive that they have a genuine problem,
and that the product offering is a good solution for that
problem. The role of research here is to discover the
consumers' perceptions of the problem and the product, and
to determine how important they feel it is to take action
against the problem.
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Price
Price refers to what the consumer must do in order to obtain the social
marketing product. This cost may be monetary, or it may instead require
the consumer to give up intangibles, such as time or effort, or to risk
embarrassment and disapproval. If the costs outweigh the benefits for an
individual, the perceived value of the offering will be low and it will be
unlikely to be adopted. However, if the benefits are perceived as greater
than their costs, chances of trial and adoption of the product is much
greater. In setting the price, particularly for a physical product, such as
contraceptives, there are many issues to consider.
If the product is priced too low, or provided free of charge, the consumer
may perceive it as being low in quality. On the other hand, if the price is too
high, some will not be able to afford it. Social marketers must balance
these considerations, and often end up charging at least a nominal fee to
increase perceptions of quality and to confer a sense of "dignity" to the
transaction. These perceptions of costs and benefits can be determined
through research, and used in positioning the product.
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Place
Place describes the way that the product reaches the
consumer. For a tangible product, this refers to the
distribution system--including the warehouse, trucks, sales
force, retail outlets where it is sold, or places where it is given
out for free. For an intangible product, place is less clear-cut,
but refers to decisions about the channels through which
consumers are reached with information or training. This may
include doctors' offices, shopping malls, mass media vehicles
or in-home demonstrations. Another element of place is
deciding how to ensure accessibility of the offering and
quality of the service delivery. By determining the activities
and habits of the target audience, as well as their experience
and satisfaction with the existing delivery system researchers
can pinpoint the most ideal means of distribution for the
offering.
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Promotion
Finally, the last P is promotion. Because of its visibility, this
element is often mistakenly thought of as comprising the whole
of social marketing. However, as can be seen by the previous
discussion, it is only one piece. Promotion consists of the
integrated use of advertising, public relations, promotions,
media advocacy, personal selling and entertainment vehicles.
The focus is on creating and sustaining demand for the product.
Public service announcements or paid ads are one way, but
there are other methods such as coupons, media events,
editorials, in-store displays. Research is crucial to determine the
most effective and efficient vehicles to reach the target
audience and increase demand. The primary research findings
themselves can also be used to gain publicity for the program at
media events and in news stories.
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Other P’s
Publics: Social marketers often have many different audiences
that their program has to address in order to be successful.
"Publics" refers to both the external and internal groups
involved in the program. External publics include the target
audience, secondary audiences, policymakers, and gatekeepers,
while the internal publics are those who are involved in some
way with either approval or implementation of the program.
Partnership: Social and health issues are often so complex that
one agency can't make a dent by itself. You need to team up with
other organisations in the community to really be effective. You
need to figure out which organisations have similar goals to
yours--not necessarily the same goals--and identify ways you can
work together.
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Other P’s Cont’d…
Policy: Social marketing programs can do well in motivating
individual behaviour change, but that is difficult to sustain
unless the environment they're in supports that change for
the long run. Often, policy change is needed, and media
advocacy programs can be an effective complement to a
social marketing program.
Purse strings: Most organisations that develop social
marketing programs operate through funds provided by
sources such as foundations, governmental grants or
donations. This adds another dimension to the strategy
development-namely, where will you get the money to
create your program?
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2.7 Competition in social marketing
In commercial marketing, the competition is often
identified as other organisations offering similar goods
and services. In social marketing, the competition is
most often the current or preferred behaviour of the
target audience and the perceived benefits associated
with that behaviour, including the status quo. This also
includes any organisation selling or promoting
competing behaviours(e.g. the tobacco industry)
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2.8 Not for Profit Marketing Defined
What is Not for Profit Marketing?
Not-for-profit marketing refers to the marketing of a product or
service in which the offer itself is not intended to make a monetary
profit for the marketer. Not-for-Profit marketing (sometimes called
non-business marketing) is defined quite simply as the application of
marketing concepts and management to not-for-profit organisations. In
other words, organisations use the tools of marketing managers such as
the marketing mix in order to meet those goals.
In the non-profit sector, marketing is more often used to support
utilisation of the organisation’s services (e.g. ticket sales), purchases of
ancillary products and services (e.g. at museum stores), volunteer
recruitment, advocacy efforts, and fundraising. In the public sector,
marketing activities are also used to support utilisation of
governmental agency products and services (e.g. the post office,
community clinics) and engender citizen support and compliance.
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2.9 Nature and Scope of Not for
Profit Marketing
Not-for-profit marketing involves the marketing of people (politicians and
entertainers), places (museums and operas), ideas (right to life, safe driving)
and organisations (Kotler & Lee, 2005). There are many different issues, for
example, drunk driving, mental health, suicide hot lines, and so forth, that
have been and continue to be marketed for non-profit objectives.
A non-profit organisation can approach marketing in the same way as a forprofit business. It should identify its target market (the one it wants to
reach), develop marketing materials to send to that target market, and
determine the objectives that a marketing campaign should meet. In this
sense, the non-profit organisation follows the four P's of marketing: product,
place, price and promotion.
Not-for profit marketing is built upon many of the traditional processes and
principles of commercial marketing, especially customer orientation,
exchange theory, competition, segmentation, the 4Ps, relationships, and a
service orientation.
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2.10Types of Exchanges in the Not for
Profit Setting
There are two basic requirements of exchange transactions (Kotler &
Lee, 2005). The first is that there be at least two parties involved. The
second is that each party involved has something of potential value to
the other(s). In some transactions, money is exchanged for products
(goods or services); in others, goods and money are exchanged for
good feelings and tax benefits; in still others, time and effort are
exchanged for money and feelings of comfort and/or responsibility.
Thus exchange is involved in a variety of transactions, many (or maybe
most) of which do not include commercial transactions. The concept of
exchange clearly is broader than the way in which we have defined
marketing previously; it goes beyond the exchange of money for goods
and services.
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Types of Exchanges…Cont’d…
The willingness of one party to become involved in an exchange transaction with
another can be analysed through a cost-benefit analysis.’ The benefits or utilities can
be categorised into five groups (Kotler & Lee, 2005):
 Sensory benefits are derived from the senses of taste, smell, sound, feel,
appearance, and so on.
 Psychic benefits come from spiritual uplifting’s, a sense of accomplishment or
achievement, and so forth.
 Place benefits such things as convenience, comfort, and attractiveness.
 Time benefits include convenience and speed.
 Monetary benefits include actual or potential monetary gain.
These same five groups illustrate costs:





Sensory costs are negative sensory attributes.
Psychic costs include bad feelings, unhappiness, depression, and so on.
Place costs are inconvenient or unattractive locations.
Time costs represent effort.
Monetary costs are out-of-pocket outlays
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Type of exchanges in Non profit
marketing Cont’d…
Volunteers
Credit card donations
Moral support
Membership
Cash
Goods
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Lobbying
Grants
Private donations
Fundraising
Vouchers (charity
shopping)
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2.11 Corporate Social Marketing
Introduction
Corporate Social Marketing is a means whereby a corporation
supports the development and/or implementation of a behaviour
change campaign intended to improve public health, safety, the
environment, or community well-being. Behaviour change is
always the focus and the intended outcome (Kotler & Lee, 2005, p.
114).
Corporate Social Marketing is most similar to Cause Promotion
initiative, where the corporation is providing funds, in-kind
contributions, or other corporate resources to increase awareness
about a cause or to support fundraising or volunteer efforts for a
cause. When, however, campaign goals, objectives, messages, and
related activities are “selling” a particular desired behaviour, this is
categorised as a Corporate Social Marketing initiative and specific
program planning and implementation principles are
recommended.
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Definition of Corporate Social
Marketing
Kotler & Lee (2005) describe Corporate Social
Marketing as “ the use of marketing principles and
techniques to influence a target audience to
voluntarily accept, reject, modify, or abandon a
behaviour for the benefit of individuals, group, or
society as a whole”.
For example, the “Stop Cholera campaign” by the
Ministry of Health and Social Services which encourages
people to wash their hands with soap or ash and water.
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2.12 Corporate Social Responsibility
Introduction
It is a known fact that consumers today believe that
companies have obligations beyond making money for their
owners. In fact, it is getting more difficult for a company to
connect with customers and prosper if it doesn’t stand for
something more than its bottom line. Many firms are
beginning to realise that they are members of the wider
community and therefore must behave in an environmentally
responsible fashion. This translates into firms that believe
they must achieve environmental objectives as well as profit
related objectives. This results in environmental (including
socio-economic, community, etc.) issues being integrated
into the firm's corporate culture.
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What is Corporate Social
Responsibility?
According to Kotler & Lee (2005), Corporate Social
Responsibility is defined as:
“a commitment to improve community well-being
through discretionary business practices and
contributions of corporate resources”.
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Differences between Corporate Social
Marketing and corporate social responsibility
Corporate Social Marketing is a means whereby a
corporation supports the development and/or
implementation of a behaviour change campaign intended
to improve public health, safety, the environment, or
community well-being, while Corporate Social
Responsibility is a commitment to improve community
well-being through discretionary business practices and
contributions of corporate resources. Social marketers can
use corporate social marketing to create awareness of the
company’s corporate social responsibility. At the same
time Corporate Social Responsibility can be an integral
part of corporate social marketing (Kotler & Lee, 2005).
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Reflection
In your own opinion what are the differences between
Corporate Social Marketing and Corporate Social
Responsibility?
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Note!
As you have noticed, Corporate social marketing is
broad and incorporates corporate social responsibility.
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Some of the Best CSR companies in
the World
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Why Corporate Social Responsibility
Participating in and implementing Corporate Social
Responsibility initiatives has many benefits. Some of
these benefits are:
Increased sales and market share
Strengthen brand position
Enhanced corporate image and clout
Increased ability to attract, motivate, and retain
employees
Decreased operating costs
Increased appeal to investors and financial analysts
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Corporate social Marketing
initiatives/options
Do you know that Corporate Social Marketing can be
undertaken through different initiatives. Let’s now see
what these initiatives are. According to Kotler and Lee
(Kotler & Lee, 2005, p. 23), major initiatives under which
most social responsibility-related activities fall are:
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Cont’d…
Cause Promotion: Can you think of an example of Cause
Promotion in Namibia? What about Bank Windhoek’s Cancer
Apple project. Cause Promotion is when a company provides
funds, in-kind contributions, or other corporate resources to
increase awareness and concern about a social cause or to
fundraising, participation, or volunteer recruitment for a cause.
The corporation may initiate and manage a cause on its own.
Cause Related Marketing: This is when a company commits to
making a contribution or donating a percentage of revenues to
a specific cause based on product sales. In this scenario, a
corporation is most often partnered with a non-profit
organisation, creating a mutually beneficial relationship
designed to increase sales of a particular product and to
generate financial support for the charity.
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Cont’d
Corporate Social Marketing: This is when a company
supports the development and/or implementation of a
behaviour change campaign intended to improve public
health, safety, the environment, or community wellbeing. The distinguishing feature is the behaviour
change focus, which differentiate it from cause
promotion that focus on supporting awareness
fundraising, and volunteer recruitment for a cause.
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Cont’d
Corporate Philanthropy: this is when a company makes a direct
contribution to a charity or cause, most often in the form of cash
grants, donations, and/or in-kind services. This is perhaps the most
traditional of all corporate social initiatives and for many decades
was approached in a responsive, even ad hoc manner.
Community Volunteering: This is when a company supports and
encourages employees, retail partners, and/or franchise members
to volunteer their time to support local community organisations
and causes.
Corporate Social Responsibility Business Practices: a company
adopts and conducts discretionary business practices and
investments that support social causes to improve community wellbeing and protect the environment.
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Corporate efforts that do not change
behaviour
Social Marketing or social change deals with behaviour (awareness,
acceptance, and action) for the purpose of social change. The ultimate
objective of Social Marketing is to affect behaviour (Kotler & Lee, 2005,
p. 114). Behaviour is defined as an individual’s observable action or lack of
action.
Social Marketing is interested in behaviour that results in societal benefit.
Many marketing strategies also have intermediate responses, but Social
Marketing success is ultimately measured on whether the desired
behaviour was adopted. It is not sufficient to merely change awareness,
knowledge, attitudes, or behavioural intentions.
Public sector bodies can use standard marketing approaches for example
to improve the promotion of their relevant services and organisational
aims. This can be very important but should not be confused with Social
Marketing where the focus is on achieving specific behavioural goals with
specific audiences in relation to topics relevant to social good (e.g.,
health, sustainability, recycling, etc.).
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Cont’d…
For example, a 3-month marketing campaign to encourage people to get a polio
vaccine is more tactical in nature and should not be considered Social Marketing. A
campaign that promotes and reminds people to get regular check-ups and all of their
vaccinations when they're supposed to, encourages a long-term behaviour change
that benefits society. It can therefore be considered Social Marketing.
Not all public sector and not-for-profit marketing is Social Marketing. It is sometimes
felt that Social Marketing is restricted to a particular spectrum of client—the nonprofit organisation, the health services group, the government agency. These often
are the clients of social marketing agencies, but the goal of inducing social change is
not restricted to governmental or non-profit charitable organisations; it may be
argued that corporate public relations efforts such as funding for the arts are an
example of social marketing.
At the same time some social marketing intervention such as cause related
marketing or cause promotion has their primary focus on efforts to raise awareness
and concern for a social issue (e.g. global warming, domestic violence) but typically
stop short of charging themselves with influencing specific behaviours. These efforts
are good but do not change behaviour and are not classified as Social Marketing.
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Cause Related Marketing
Introduction
Although the term “cause related marketing” has been in
existence for more than 25 years, and there are debates about
its specific meaning, in its purest form, it is an agreement
between a business entity and a non-profit that is designed to
raise money for a specified cause or charity (Kotler & Lee, 2005,
p. 114). Cause Related Marketing (sometimes also referred to as
cause promotion) primarily focus on efforts to raise awareness
and concern for a social issue (e.g. global warming, domestic
violence) but typically stop short of charging themselves with
influencing specific behaviours. Cause marketing can be
approached from two distinct perspectives. The company can
either select the designated charity; or allow consumers to
choose their preferred donation designees.
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Cont’d…
The concept of cause related marketing is very simple. A
business links up with a charity or cause for the benefit of
itself as well as addressing a particular social issue. Cause
Related Marketing has been referred to by many names.
These include social marketing or corporate citizenship,
charity marketing, corporate or strategic philanthropy, social
investment, responsible marketing, passion marketing,
affinity marketing, public purpose marketing, sponsorship,
cause branding, sales promotion, PR and indeed simply
marketing, to name but a few.
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What is 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 organisation for
mutual benefit. The term is sometimes used more
broadly and generally to refer to any type of marketing
effort for social and other charitable causes, including
in-house marketing efforts by non-profit organisations.
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Cont’d…
According to Cause Marketing consultant Jocelyn Daw (2007), Cause
Related marketing is:
“a mutually beneficial collaboration between a corporation and a nonprofit in which their respective assets are combined to create shareholder
and social value, connect with a range of constituents (be they consumers,
employees, or suppliers), and communicate the shared values of both
organisations”.
The Foundation Centre defines cause-related marketing as:
"the public association of a for-profit company with a non-profit
organisation, intended to promote the company's product or service and
to raise money for the non-profit."
According to Adkins (1999), Cause Related Marketing is about using
marketing money, techniques and strategies to support worthwhile
causes whilst at the same time building the business (Adkins, 1999).
A company promotes its image, product and services in conjunction with a
good cause, raining money for the cause whilst at the same time enhancing
its reputation, demonstrating its values, enlisting consumer loyalty and
purchase of its own products and services. A good example is the Sanlam
Cancer Golf Challenge which collects money for cancer.
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Difference between Cause Related Marketing,
corporate philanthropy and corporate
sponsorships?
Cause Related Marketing differs from Corporate Giving
(Philanthropy), as the latter generally involves a specific donation
that is tax deductible, while Cause Related Marketing is a
marketing relationship not necessarily based on a donation.
Corporate philanthropy takes place through direct monetary gifts
to a non-profit. It is often made through the corporation's own
foundation. These donations are usually for a particular program
that the non-profit will run and can be of short or long duration.
Corporate sponsorship is a bit closer to cause marketing since the
corporation gives the non-profit money to hold an event, run an art
exhibit, or other time-limited activity. The funds may come from
the community relations budget of the corporation or the
marketing budget and the corporation expects a certain amount of
publicity in the way of signage, promotional materials, etc.
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Advantages of Cause Related
Marketing
The possible benefits of Cause Marketing for non-profit
organisations include an increased ability to promote the nonprofit organisation's cause via the greater financial resources of a
business, and an increased ability to reach possible supporters
through a company's customer base (Adkins, 1999). For the nonprofit, the contributions from a cause-related marketing project
can be significant, and those funds are usually unrestricted so even
overhead costs can be supported by them. Besides actual
monetary benefit is the intangible value of the publicity and
advertising that usually accompanies a cause-related marketing
program, which is often done by the corporation's public relations
and marketing departments in tandem with the non-profit's own
marketing.
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Cont’d..
The possible benefits of cause marketing for business
include positive public relations, improved customer
relations, additional marketing opportunities, and
making more money. Cause-related marketing proves
that it is socially responsible and provides great public
awareness of its values and willingness to support good
causes.
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Disadvantages of Cause Related
Marketing
Unfortunately there are also disadvantages of Cause Related
Marketing. There is always the possibility that one of the
entities involved (non-profit or corporation) will do
something that hurts its reputation. In that case, the other
party may be perceived negatively as well. For that reason,
corporations and non-profits should choose their partners
wisely.
In addition, there has been considerable concern about nonprofits lending their good names to for-profit activities.
Hence the following questions arise:
Does it weaken the trustworthiness of a non-profit? Could a
non-profit "sell out" by lending its support to products that
are less than benign for the public?
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Reflection
In your opinion what should companies take into
consideration when choosing a cause to align with?
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Public Policy and Ethics in Marketing
Introduction
Social marketers interfere with people’s lives, so ethical
considerations abound (Lee & Kotler, 2011). Social marketers
decides what their target audiences should do, devise
strategies to encourage them to do it, choose who should
get the benefits of their efforts (and who should not),
criticise other people’s campaigns and conduct endless
research. All of these steps present moral issues that have to
be acknowledged and addressed. In this section we discuss
why ethics are so important in corporate social responsibility
and examine the principal dilemmas faced.
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Why ethics in Corporate Social
Marketing
Ethical dilemmas arise because social marketers deal with
people and try to change what they do: the target clients,
stakeholders, competition and wider society are all impacted by
their efforts.
Furthermore they focus on behaviours that are illegal, taboo or
culturally sensitive. Social marketing solutions often require
difficult and stressful behaviour-change options. For example,
giving up smoking addictive carries severe physiological and
psychological repercussions, while encouraging increased fruit
and vegetables consumption can have implications for the cost
of a family’s monthly shopping basket and for family
relationship, particularly with fussy children.
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Cont’d…
Since social marketing is in one sense merely a
technology to be employed by those who wish to achieve
social good. As such, it can be used by anyone who claims
(or believes) that it is being used for such an end.
The determination of what is social good is entirely in the
hands of the would-be social marketer. This means that,
inevitably, social marketing technologies will be applied
by partisans promoting their own particular visions of
social welfare, which can differ significantly from those
held by the general society. Thus, social marketing could
be used by both pro-life and pro-choice forces.
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Cont’d
This possibility raises a critical ethical issue: How to
ensure that this exciting new technology is used for
"good" ends? Those who wish to promote the use of
social marketing are faced with two challenges. First,
how to ensure that the characteristics of good social
marketing enunciated previously are adhered to—that
is, to teach and advise others in the very best social
marketing practice. Second, making personal ethical
judgments about the kinds of organisations and
individuals to whom to offer social marketing services.
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Cont’d
The lesson to social marketers is that they must devote their
energies to building the best technology, but also owe it to
themselves and their communities to see that it is used for,
what the targeted community/individuals agrees is its own
social good. Ethical issues should be considered when setting
objectives and target goals. They should also be considered
when selecting target audiences, researching the target
audience, marketing planning, in promotion and selecting of
communication channels, in establishing funding, when
implementing plans and projects, in selecting distribution
channels, related to creating product platforms, in pricing
strategies, when deciding on message, message and creative
strategies, and when developing a positioning statement.
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Class Discussion
You are a social marketer who has been commissioned
to undertake and evaluate an initiative on teenage
sexual health in Windhoek. You already know that there
are above average levels of teenage pregnancy and
sexually transmitted infections among 14- to 16-year
olds in the area.
What ethical dilemmas will you face with this project?
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Namibian Case Studies of Social
Marketing
NaSOMA
Bank Windhoek
Ministry of Health,
SOS Children’s village
SPCA & etc..
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END
Of Unit 2
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