Conceptual Analysis of Cause Marketing in an Era of Unique Marketing Practices
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Mukt Shabd Journal ISSN NO : 2347-3150 Conceptual Analysis of Cause Marketing in an Era of Unique Marketing Practices Ashwini Manasa A. Research Scholar Department Of Studies & Research In Commerce Tumkur University, Tumkur-572 103 Mob no-9739626612; [email protected] Dr.Suresh B K Assistant Professor of Commerce University College Of Arts Tumkur University, Tumkur-572 103 Mob No- 9845142321 Abstract Many sales oriented companies have transformed themselves into a customer driven organization in last few decades. With a pressure to meet the demand of global competition, an effective utilization of strategies that can produce quality goods and services while cutting costs has become essential. The new marketing era doesn't only mean the death of traditional form of advertising and shift to digital marketing alone, but larger transformations of alternative methods to reach the consumers. Cause Marketing is all about being highly responsive to the needs of customers in an unique way by additionally being responsible to the society via customers. The growing concerns over social and environmental issues in public have given the way for corporations an idea to associate their products or services to popular causes of the region in which they operate. Demonstrating a company’s social commitment through partnership with a charity organization for raising money through customers for a cause had been and also is a trending strategy of marketing. This study attempts to conceptualize Cause Marketing which has stood unique from various other strategies of marketing. The study also throws a light on few cause marketing campaigns that created a huge impact and the application of cause marketing in marketing arena and its perspective which makes it different from other corporate social responsible activities. Keywords: Cause Related Marketing; Corporate Social Responsibility; Social Cause. Volume IX, Issue IV, APRIL/2020 Page No : 2692 Mukt Shabd Journal ISSN NO : 2347-3150 1. INTRODUCTION In present day scenario though hard to believe when compared to economics, production and operations, accounting and other business areas, marketing is relatively young discipline having emerged in the early 1900’s. Prior to this time most issues that are now commonly associated with marketing were either assumed to fall within basic concepts of economics like price setting viewed as a simple supply and demand issue, advertising or in most cases simply not explored like customer purchase behavior, importance of distribution partners, brand loyalty etc. The development of marketing was in large part motivated by the need to improve in greater detail relationships and behaviors that existed between sellers and buyers. In particular, the study of marketing led sellers to recognize that adopting certain strategies and tactics could significantly benefit the customers in particular and society at large. At the organizational level, marketing is a vital business function that is necessary in nearly all industries whether the organization operates as for - profit or as a not – for - profit. For a for–profit organization, marketing is responsible for most tasks that brings revenue to an organization. For the non-profit organization, marketing is responsible for attracting customers needed to support the non-profit organization’s mission, such as raising donations or supporting a cause. For both types of organizations it is unlikely that they can survive without a strong marketing effort. Many trends have emerged in the field of marketing. One such trend is Cause marketing or cause related marketing which means the company does marketing in a way that they will contribute to a cause aout of the price paid by the customers to their products or services. 2. LITERATURE REVIEW The study attempts to review few important works of various scholars related to cause marketing as under: Rizwan Shabir, Et al., (2017) in their article explored the role of market communication, product price and customer attitude in designing effective Cause Related Marketing strategies . With a collection of quantitative data from 210 product customers of some selected organisations that practices Cause Marketing , the researchers founded that both product price and market communications play a major role in influencing the consumer buying behaviour . In addition the study also founded out that consumers are more concerned about supporting local or national social Volume IX, Issue IV, APRIL/2020 Page No : 2693 Mukt Shabd Journal ISSN NO : 2347-3150 welfare societies other than international NGOs. On overall summary of the research they concluded that Cause Related Marketing Strategy is a most powerful tool for increasing the long term revenue and good will to the organization . Thamaraiselvan Natarajan, Et al., (2016) reviewed the various research papers to give an insight to the researchers into the various factors that influence on the success of Cause Marketing. The researchers stated that careful evaluation of the non-profit organizations is necessary considering both commercial feasibility and philanthropic policies to increase its sales revenue and image. Further they also stated that causes must be locally appealing to customers in broader context in campaigns followed by an effective communication to the customers to increase their participation. Sabrina Luckea, Et al., (2015) in their paper understood the effect on increase of sales if choice was provided to the underlying customer as regard to different causes of their wish to contribute, will be done on behalf of them if they buy the products of the company . The research showed the application of cause marketing to the product group of insurances. The study had found out that cause marketing was not a suitable tool for increasing the customers intention to purchase mobile insurance products. When applied to insurance products, there was no significant increase in the purchase of the insurance products even though there are donation linked. Pushpinder Singh Gill, Et al., (2015) emphasize on concept of societal marketing that evolved a concept of cause marketing in India where the companies are associating their products with one or the other cause. The researchers attempts to understand what made the marketers adopt the cause marketing strategy and to identify whether the customers are aware of the concept. The study was conducted on small segment of the market which they technically called it millennial generation in the state of Punjab. Two key points of study, brand awareness and purchase intention of the customers on products contributing to cause marketing had positive outcome Hassan Saberi , Et al.,(2014) in their article investigated on the kind of relationship between Cause Related Marketing campaigns and brand perceptions of customer purchase intentions in Iran. The empirical study proposed a hypothesis that cause marketing campaigns helped to enhance the brand awareness among the customers which influences their buying intentions. The hypothesis was proved to be true but the study further suggested though the cause marketing campaigns help for brand awareness , the selection of a non profit organization for cause matters Volume IX, Issue IV, APRIL/2020 Page No : 2694 Mukt Shabd Journal ISSN NO : 2347-3150 much. The researchers calls for further study in other developing countries where the data can be collected from many more customers who were aware of the cause marketing campaigns. Sonal Kureshi, Et al., (2014) mainly focused to provide insights about the nature and extent of Cause Related Marketing practices prevailing & established in India . The researchers examined the Cause Related Marketing initiatives announced during the period of 1999 to 2012 by visiting companies and partnering organizations and their websites . The research questions that were thrown light in the study included to identify the kinds of organizations who were doing these activities, the nature of the product and the type of social cause involved, the average duration of conducting these activities, the reach and the amount which was intended to be donated. Raheleh Okhli, Et al.,(2014) surveyed on the consumer perception of cause-related marketing and brand image. The study was conducted on all the customers of retail stores in Gorgan , Iran. With a applied research using probability sampling method and through descriptive and inferential statistics a hypothesis for co-relation between cause marketing and brand image was tested .The hypothesis was accepted to be true that there was a significant relationship with reputation of the companies producing products with cause marketing campaigns which was indicative of the fact that the growth of retail chain stores in Gorgan province of Iran. Vanhamme, J., Et al., (2012) has identified the significance to maintain the balance between the organization & the nature of cause that greatly influences corporate image as well as connection of influence between consumer preferences on brand choice , brand attitudes and the cause. The research was conducted as field experiment in Netherland which examined the influence of important three attributes namely cause type , cause scope and cause acuteness on the perception of consumers on corporate image. This study proved a hypothesis true that corporate image can be enhanced when consumer identifies the cause has mediating influence on it. 3. OBJECTIVES OF THE STUDY To conceptualize Cause Marketing. To study of evolution of Cause Marketing.