Cause Related Marketing & CSR

A wise man once told "Selling any product or servicebusiness goals
is like marriage. If you can't get him by the heart-youStarting as a marketing initiative in the 80's CRM has
are DOOMED". True as the statement is, it is also verytravelled and evolved. One reason is that companies
relevant with the present scenario.are taking a more strategic approach to their
To elucidate our point, just by running the termcommunity-involvement efforts, seeking ways of
"Branding" on the internet, we are inundated by abenefiting community organizations while also furthering
plethora of theories, assumptions, models, case-studiescompanies' business goals. Effective cause programs
which all implicate the quintessential approach to thecan enhance a company's reputation and brand image
elusive topic. The mystification is even more enhancedand increase the credibility of its marketing effort while
when we believe that organizations relegate brandgiving customers a convenient way to contribute to
management to lower level functionaries and relies onnonprofit organizations through their purchasing
tangibles, more directly the bottom-line, as a measuredecisions.
of market viability. The strategic use of branding onlyOriginally, the principal business goal of a cause-related
surfaces when the organization experiences amarketing program has been to impact a company's
turbulent period in time and applies brand principles asbottom line through increased sales. Yet research has
their saviour. The fundamental problem with this view isshown that, for companies committed to corporate
that the company's cursory involvement implicates asocial responsibility, CRM programs can offer other,
tactical view and permeation throughout theoften unanticipated, benefits to a company as well.
organization will not congeal. The brand exists in theLong-term impacts are increased profitability or cost
murky shadows and becomes a vague reminder ofsavings are often attributed to the observed changes
the organization's identity. On the other hand, anresulting from effective CRM partnerships. While the
organization that embraces their brand as the strategicvalue realized by cause marketing programs will differ
cornerstone of the business and obtains culturalamong companies and industries, some of the potential
acceptance will emerge with a strong identity andbenefits include:o Attracting and Retaining Customers:
market position.Long-term efforts help attract and build long-term
The intent of this paper is to understand how brandsrelationships with customers. There are expectations
can innovate and come out of murky shadows offor companies to go beyond their call of duty.
competition, clutter and myopic thinking by effectivePropensity of consumers to switch is far higher when
use of cause-related marketing. Also this view is finallythey find that a company supports a social cause.o
linked to the social responsibility each and everyMarket Differentiation: CRM helps to create an
organization shares with the stakeholders, or morealternative and distinctive approach to brand
specifically, the community.advertising.o Outreach to Niche Markets: Partnering
Why do we need any innovative branding technique?with nonprofit organizations can help a company to
David Aaker had contended that a brand imageconnect with specific demographic or geographic
reflects the past and is passive in nature, whereas themarkets.o Motivated and Loyal Employees: Companies
brand identity is active and focuses on the future. Let'scan attract and retain quality employeeso Reinforced
briefly view how the brand identity gets smudged.Company Mission: CRM efforts can help communicate
1. Effect of intensified competition:to employees, customers, suppliers and other
The essence here is that every product is keen tostakeholders a company's commitment to corporate
occupy the single bit of mind space of the customer.social responsibility.
All competitors vie for the same space and allResearch findings
positioning platforms are already taken up. Now theWe, in order to quantify our beliefs ran a quick
challenge is to rise above the crowd and be heard.secondary research survey in our college and
Can cause-related marketing be a way or process togathered responses from 159 candidates.o 96.2% of
do so, is what we'll try to find an answer tothe respondents were aware of at least one
2. External Perspective Paradoxcause-related marketing program.o 59% of the
The common viewpoint of organizations is to maintainrespondents had participated in at least one cause
an external focus - how customers perceive therelated program and 89% i.e. 80 respondents reported
brand. Most organizations fail to internally communicateto have a positive impact on their perceptions towards
the vision and values of their brand. It's not only aboutthe companyo 49% of the respondents out of 80 who
whether the customers are able to relate, understandhad participated in any one CR program showed an
and finally appreciate the company's vision, but alsoactual change in behavior, saying that they switched
whether the employees are able to pass on thebrands, increased usage or tried or enquired about
company's culture to the customers.new products.o 71% of the respondents believe that
3. Product-Attribute Fixation Trapthe present number of organizations pursuing CRM is
The failure to distinguish between a product and alow and would love to see more organizations
brand is the essence of a product-attribute trap. Mostfollowing the practice.o Out of the respondents, 71
companies view product attributes as the basis forwere female and ALL of them were aware of CRM
purchasing decisions and competitive strength in theprograms, 86% had participated in at least one
marketplace. Ask someone what they drive? If theycause-related program and again, ALL of them had a
possess a sense of pride, they'll quickly respond withpositive impact towards the company.o Out of the
the brand name - not horsepower or torque ratios.female respondents, 69% told that they switched
Perspective linkages of CRM and CSRbrands, increased usage or tried or inquired about new
Apart from external communication to the consumerproducts.
and enhancing brand equity, Cause-related-marketingConsumers have a more favorable attitude toward a
does have an internal perspective. Internal marketing isCause Related Marketing program, and are more likely
as important as external marketing. Internal marketingto participate when there is clear affinity between the
takes into account communication and relationshipbrands, the company lives and breathes the
enhancement with the employee. Marketers mustrelationship, it is easy for consumers to participate in,
adapt an internal perspective to realize an importantand the program clearly communicates the company's
aspect- employees, to realize direct core brandcommitment. Also a key note is about the high affinity
deliverances to the customer. It helps to inform andof females towards Cause-related affinity may be the
inspire employees. We have to realize that one of thefuture.
most potent influences on brand perception is theModel for CRM initiatives
experience customers have with the companyThings that can be measured can be improved. Hence,
personnel.we try to incorporate a model that includes metrics to
CRM lends a holistic view point to marketing process,measure the effectiveness of the CRM event. The
ensuring that everyone in the organization embracesmodel has been broken up into three phases,
appropriate results delivered.Pre-event i.e. before the Cause-related marketing
It can be seen as a perfect opportunity to reinstateevent takes place, Event and Post Event. The metrics
the point that it is a definite opportunity to enhance anare developed to measure three major parameters
organization's corporate reputation, raise brandthat we believe are important and crucial for
awareness, increase customer loyalty, build sales, andmeasurement. They are Human capital factors,
even increase press coverage. Customers willOrganizational factors and Environmental factors. The
increasingly look for signs of good corporate citizenshipmodel also includes the must-do's in the CRM
and go beyond supplying rational and emotionalcampaign, that we thought were crucial for any
benefits.organization.
Concept of Brand EquityFinal Words
Brand equity refers to "set of assets and liabilitiesWe have to admit it that corporate houses have an
linked to a brand, its name and symbol that add to oreye at the bottom line, always. CRM will only lead
subtract from the value provided by a product orthem to work for a 'socially oriented capitalism' halo
service to a firm and or to that firm's competitors".around their customers. The profit motive will be
A brand's value is a function of the customer'sdeeply embedded within social motives. This is not a
perception, his/her attitude towards it, and thebad thing though as it not only increases NGO's direct
emotional value that the customer attaches to thefunding but also is a humane attempt towards making
brand.a better tomorrow. We all have to learn to give, and
Approaches of CRM: Benefiting communities, securingthis was the marketers turn.