Implementing Cause-Related Marketing in Barnados Charity - Literature review Example

? Literature Review, Marketing Literature Review and Marketing Cause Related Marketing Marketing is the process of anticipating, identifying and providing satisfaction to customers. Marketing entails conducting a research to understand what the customer exactly wants and thereby providing goods and services with respect to the customer needs and demands. Marketing also involves the provision of the correct marketing mix which takes the right goods provided for the customers at the right time and the best places within a desirable promotional activity level. The modern market is concerned with satisfying wider needs for customers from different societies. In the social marketing, the management takes much consideration of the customers’ needs with much concern on the needs of the wider society. Cause Related Marketing is a significant ingredient of this marketing mix (Stein, 2009; pg. 56) Cause-Related Marketing is describe as a commercial activity through which businesses and charities form a partnership for the purpose of marketing a product, an image or a service for a shared benefit. It is a tool that addresses the current social issues by providing resources and funding. Additionally, this tool addresses important business objectives. The Cause Related Marketing began getting its full attention recently. It was not until the CRM was much steamed to the marketers by the American Express, which had devised a promotion which promoted donations of a cent to restore the funds for the Statute of Liberty at every single time a customer made use of the American Express card (Lindsey, 2003; pg.67).  The campaign also included other elements like a one dollar donation to fund every new American Express account that had been approved. A true corporate partnership establishes openings for every party to develop joint business opportunities. In an investigation, a link with Barnardo’s, which is one of the UK’s best known charity brands, is found to do that (Petticrew & Roberts, 2005; pg. 87). It is a well know children’s charity organization. There would be numerous benefits on establishing cause-related marketing in Barnardo’s as this would become a simple and an effective way of increasing sales and customer loyalty. This can also promote a positive PR coverage and provide an increasing significant link for ethical customers to align themselves with the charitable cause. Involvement with this charity would create opportunities for a great PR and marketing. The Barnardo’s charity can assist in the promotion for the partnership through their network of close to ten media and communication managers situated in London regional offices and headquarters. This is a prominent national charity that has excellent links to local and national radio and television stations, as well as, with national and regional media. Cause Related Marketing is found to influence customer perceptions and their buying habits. This makes it a vital weapon in the marketing strategy which enhances corporate reputation and increases loyalty. It can build sales and benefit the society thus, becoming an intrinsic tool of the marketing strategy. The Cause Related Marketing has its strength over the traditional forms of marketing as it can provide the emotional and the racial engagement of the consumers (Neyland, 2008; pg. 78). It also incorporates the customer’s heart and their mind thus, giving it the potential to build an enduring and stronger relationship. So many companies in the UK have recognized the potential in the holistic management and corporation of the relationship of all stakeholders that will support the development of successful companies. Cause Related Marketing provides a high profile and an effective way for brand owners to strengthen their relationships, not only with the customers but with all stakeholders including the employees, suppliers, distributers, shareholders, opinion formers as well as a broad relationship with the wider community. Due to the interdependence between the wider community and businesses, the weakness or strengths of either of the two affects the other. If the business lacks enough staff with sufficient skills and resources for the production of goods and services, or if the targeted market by the business is unable to purchase the product, the business market as well as the business eventually disappears (Towl and Needs, 2004; pg. 34) . Cause Related Marketing gives businesses a proactive mechanism to make investments in the communities they operate. Another importance of the Cause Related Marketing is the neat values fit. A business reputation and association with human and environmental abuse can seriously count against the future lives of a business. Marketing directors who do not put much consideration to the high consumer propensity for the support of products and services involved with good causes and charity should consider the fact that, a third of the population have demonstrated as a result of company’s products and its ethical grounds. These customers’ expectations and demands are not only peculiar to the UK but is a global trend.  The Cause Related Marketing is also very effective on the transparency of business’s donations. Customers are often sceptical of cause-related marketing campaigns (Jordan and Du?vell, 2002; pg. 99); especially since the donation sizes are ambiguously stated. All non-profit organizations must take into account the customers’ perception of the brand-cause fit and the product category. They should also consider the awareness of the cause and the transparency of the business donations. On considering all these, the cause related marketing becomes very successful for a business. Donation transparency is therefore very necessary for a continued consumer scepticism, which leads to the customer cynicism of all Cause Related Marketing campaigns. If the cause related marketing builds much trust to the customers, the associated business is likely to make more sales. Trust within the consumers on the specific donations increases their loyalty and trust on the products associated. They, therefore, embark on the purchase of the same products with much trust and enthusiasm (Munro, 2011; pg. 87). The Barnardo’s charity has proven a track record of developing a well-managed, and highly successful partnership with other wiling companies that have regularly exceeded their targets. Their past success with other partnerships acts as a driving force towards the implementation of a Cause Related Marketing in Barnardo’s. Impacts of the cause related marketing on the society has been realized upon the annual measurement of its impacts by the business in the community which found out that more money is raised, and given to good causes and charities through the cause related marketing programs (Burlingame, 2004; pg. 12). On analysing the effectiveness of these programs, the business in the community cause related marketing tracker found out that $60 million was raised for good causes, and charity by businesses through the cause related marketing programs. On an investigation on the Cause Related Marketing in Barnardo’s charity in the UK, it is found that, in 1999, the Barnardo’s child charity hit the headlines with its series of controversial adverts. Their adverts depicted children in their adult situations. The campaign consisted of seven adverts that featured strange images of babies (Steckstor, 2012; pg. 90). Such images like, babies injecting themselves with heroin and others preparing to commit suicide were featured in the adverts. Another advert featured babies clutching bottles of whisky. These adverts aimed to show the potentially disastrous adulthoods that awaits numerous vulnerable children that the charity works with. This advert was designed with an aim to attract a younger subscriber base, and it won numerous new donors and built more engagement of the existing donors to increase their regular support base. The campaign was not aimed at causing offense or distress to people but was indented to show that, by means of intervention from organizations like the Barnardo’s, change could be obtained (European Conference On Management, Leadership And Governance, & Remenyi, 2007; pg. 8).  This Cause related Marketing campaigns were very effective and led to a high contribution to the charity fundraising income with a large increment of donors. Other donors were found to make some one-off donations plus the media coverage of the campaign that had a PR value of above one million pounds (List, 2010; pg. 65). Comparing the Cause related Marketing to the e-Marketing E-marketing refers to the application of the marketing techniques and principles through the media. E-marketing mostly relies on the use of internet whereby, marketers connect with consumers through such social networks like emails. While cause marketing can be conducted online, it is found to have more advantages over the e-market (Heath, 2005; pg. 34). Unlike online marketing, cause related marketing may build the customers positive attitude towards the business organization. This is because it serves to portray a smart picture of the business company to its customers in a more personalized manner. While the e-marketing may not be much effective in touching the attitudes of the customers, cause related marketing does. With the increasing percentage of homesteads with internet connections, cause marketing has been conducted through online channels. The online cause marketing allows many consumers to take an active role in the program. It gives priority to the customers rather than the companies. The company’s loyalty program members are allowed to convert more rewards into cash donations on the consumer choices. An online platform is important to connect consumers to a large charity selection (Lepak, 2001; pg. 77). Over the years, online transactions have been used in the cause related marketing programs with the use of different online platforms. Companies create the program to assist sellers and corporations in donating a percentage of their sales to a non-profit organization via the use of auctions. The emergence of the internet and non-profit organizations has found new opportunities to reach new volunteers and donors (Taylor, 2010; pg. 43). Moreover, the same has been accelerated by the interest in cause related marketing on both consumers and business firms. The cause related marketing programs are also facilitated through the use of internet.  Prior to the introduction of the internet, companies could reach a limited number of consumers. Such Medias like radio and televisions were used for marketing. Non-profit organizations could not obtain enough donors as compared to the current internet era. Offline marketing campaigns are found to be less effective compared to the on-line campaigns whereby, marketers can reach many people at different location and in a short period of time (Thomas, 2008; pg. 31).  Cause related marketing is based on integrity, ethics, mutual respect, openness, transparency, sincerity, partnership, and mutual benefits. The program provides huge rewards upon adequate planning, communication and implementation. If poorly planned, communicated and implemented, cause related marketing becomes a real risk of running the potential opportunity that it has to address (Lindstro?m and Seybold, 2007; pg. 52). The television advertising can be integrated to the cause related marketing program. It is used as a media for communication by partners in a non-profit organization who seek to obtain more donors. Television adverts are effective in passing information to people from different areas of the world. However, compared to the demands of the cause related marketing programs, television adverts are found to have minimum effectiveness towards charity programs. Adverts may reach people within a specific region while a large number of donors are locked out from viewing the advert. For instance, the establishment of BBC channel in the UK aided communication, which was greatly used by organizations for advertisements. Numerous TV channels have emerged since then. While these channels are locally established, they are only accessible within specific geographical areas. This would not impose an effective measure for charity facilitation (Bischoff, 2013; pg. 22). Barnardo’s children charity has demonstrated much success through their established partnerships. An example is the BAM Construction Company, which supported them for a period of two years with worker fundraising and volunteering activities. The organization also received a two year support from the KPMG whereby, they obtained $1.3 million for their work. In addition to that, The Royal Mail Group engaged its global workforce in different fundraising activities during their three year partnership with Barnardo’s. The Barnardo’s charity has its current partners who provide much support for the generation of funds for their programs. Such partners include AF International, an electronic manufacturer, which supports them through cause-related marketing. The Balfour construction company provides its support through employee fundraising at occasions when the Barnardo’s partnership launches. The cause-related marketing creates victorious situations for every individual involved in the campaign. Business entities also stand to benefit through the immense publicity and the enhanced brand images and their positioning. They may also gain through the direct boosts to sales that are achieved through public motivation for the cause (Preston, 2012; pg. 13).  While the business consolidates its corporate image as an organization with much social responsibility, the non-profit organization also stands for a gain in equal proportion since it gets a share of the achieved sales by the business entity. Bibliography ANHEIER, H. K., TOEPLER, S., & LIST, R. (2010). International encyclopedia of civil society. New York, Springer. BISCHOFF, A. L. (2013). Cause related marketing. [S.l.], Grin Verlag. BURLINGAME, D. (2004). Philanthropy in America: a comprehensive historical encyclopedia. Santa Barbara, Calif, ABC-CLIO. EUROPEAN CONFERENCE ON MANAGEMENT, LEADERSHIP AND GOVERNANCE, & REMENYI, D. 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