CSR & MARKETING

“ Is CSR used as just a marketing tool or as a genuine responsibility towards

TOPICS COVERED

“ Is CSR used as just a marketing tool or as a genuine responsibility towards society? ”

•Marketing of CSR : Evolution and strategy

•PR and CSR, Similarities.

•Brand image

MARKETING

� Definition : “Marketing is human activity directed at satisfying needs and wants through exchange processes” (Kotler1991)The objective of strategic marketing competitive advantages is to � The objective of strategic marketing competitive advantages is to achieve sustainable competitive advantage” (Porter 1985)

� Whether CSR used as a marketing tool depends on who is interpreting CSR

� Ethical Corporation (2005):� marketing can seem like nothing more than just empty promises

and PR spin, to CSR professionals. and PR spin, to CSR professionals. � To marketing professionals, CSR is considered to incorporate

duty and responsibility.

STRATEGY AND MARKETING

� Strategic marketing: an introduction :

The corporate mission and objectives, which will � The corporate mission and objectives, which will determine which particular markets are of interest;

� External Data such as market research

� Internal Data which flow from ongoing operations

� Eg: Marketing mix and value chain� Eg: Marketing mix and value chain

� Lead to Competitive advantage

MARKETING AUDIT AND CSR

� Definition: “A marketing audit is a systematic appraisal of all the external and internal factors appraisal of all the external and internal factors that have affected a company’s commercial performance over a defined period” (Baker 2003)

� The marketing audit can make CSR a core value in its marketing planning system.in its marketing planning system.

CAUSE-RELATED MARKETING (IS NOT PHILANTROPY!)

� Definition: “A commercial activity by which businesses and charities or good cause form a partnership with each other to market an image, product or service for mutual benefit” (Business in the Community cited in Baker 2003, pp 670).for mutual benefit” (Business in the Community cited in Baker 2003, pp 670).

� Cause related marketing in context � Business context� Globalised economy� Legislation� Social context, csr� Connect to different Stakeholders groups:(

Consumers,NGO’S,Government,Suppliers and distributors,Wider Community )> core to marketing)> core to marketing

� Key Principle: Integrity, Transparency, Sincerity, Mutual Respect,Mutualbenefit

� Targets : People, supply chain and organisational network, partnership :This shows that there is great economic and social potential of CSR in the use of marketing.

SOCIAL MARKETING

� CSR and marketing: A social marketing adds additional consideration to the marketing concept: additional consideration to the marketing concept: the impact of a firm’s activities on society

� Marketing can be interlinked with accommodating the needs of society. A strategic marketing strategy is one that can actively support the cause strategy is one that can actively support the cause of CSR.

GREEN MARKETING

� Ecological issues: signifiant external influences : Similar to social marketing.Similar to social marketing.

� Differences: � Physical sustainability� Interdependant view of relationship between society,

economy and environment. � Green premium.� Niche opportunities and new market segment.� Niche opportunities and new market segment.� Can be seen as cynicism, not really efficient or

sufficient : eg: greenwashing.

Product

Firm

Environmental Concern

Society and business part of environment

Increasing sophisticationf strategic challenges

Increasing breathof strategic vision

Customers

Competitors

Industry structure

Economy

Society

Society :

Local communities

social issues

Caused-related :

concentrate on an single caused or NGO

Related to the Business

Charity and Philantropy

Global socio-economic system

Global physical environment

Charity and Philantropy

The physical environment as the foundation of the marketing environment

Adapted from Peattie K and Charter M (2003)

Evolution of marketing related to CSR

PUBLIC RELATIONS

� Publication relations are about reputation : the result of what you do,whatyou say, and what result of what you do,whatyou say, and what others say about you.

� It is Beneficial for both general public and organisation.

� Bridge-builder� Bridge-builder

� Representative and advocate, advisor (proactive and reactive) : relationship management.

PUBLIC RELATION AND MARKETING

� Link with marketing : � Often seen as adversarial� Often seen as adversarial� PR : changing attitudes less promoting products.� Marketing (create exchange with customers ) VS PR

(sustain mutually beneficial relations with publics).� Consumer PR : 70% of PR spent to marketing: safety ,

choice , educate consumers.� Marketing PR : management of perception and

communicationMarketing PR : management of perception and communication

� Integrated marketing communications : synchronised multi-channel communication strategy.

PUBLIC RELATION AND CSR

� Appears at the same time : 20C : new concern for corporation image� Deal with issues, e.g. : tensions between business and society ( Rights,

regulations, activism ). However CSR will develop guidelines and regulations, activism ). However CSR will develop guidelines and takes actions in the organisation.

� Both marked by concept of public consent for their operations.� some CSR functions are integrated to public relations department.� Bernays (1995) was quoted as saying simply, “Public relations is the

practice of social responsibility� Grunig and Hunt (1984) : public, or social, responsibility has become

a major reason for an organization to have a public relations functiona major reason for an organization to have a public relations function� Decision making tools and Two-way communications.

PUBLIC RELATION AND CSR.Environmental monitor

PR AuditCommunication Audit

Social Audit

ReactiveDefensiveResponsiveInteractive

Dependent uponCompany’s external affairs

Strategy and DesignSocial Audit Interactive

Fact-finding/ feedbackPlanning/ Program

Action Communication

Environmental AssesmentStakeholder Management

Issues Management

Strategy and Design

PR CSR

ResearchAction/PlanningCommunication

Evaluation

Awarness/RecognitionAnalysis/planningResponse/policyImplementation

Action CommunicationEvaluation

Issues Management

The similarities of Public Relations and CSR ProcessAdapted from Clark C E (2000)

LEARNING FROM PR

� Better dialogue with stakeholders : avoid conflict. Give access to the company and collaborate.Give access to the company and collaborate.

� understand stakeholders: manage vision and communication

� PR : maintain credibility, build solid internal and external relationships, effectively manage issuesexternal relationships, effectively manage issues

LEARNING FROM PR

Stakeholder Analysis

Step One :

Stakeholder Analysis

Internal-External AuditHistorical.social/political dimensions

Stakeholder Issues Profile

Step Two :

Step Three :Communication Analysis

Communication-Mngt ApproachInternal-External Audit

Historical.social/political dimensions

Communication Profile

Step Three :

The communication-Management ApproachAdapted from Clark C E (2000)

CASE STUDY: DOVE

� E Marketing : Everything with “E” means it uses electronic communications technologyelectronic communications technology

� Viral marketing : word of mouths.

� Dove “Onslaught” Campaign : "talk to your daughter before the beauty industry does" VS “talk to Dove before it's too late”“talk to Dove before it's too late”

BRAND IMAGE

� Strategic asset:

Helps to define company & products/ services � Helps to define company & products/ services from competitor.

� Competitive advantage.

BRAND IMAGE

� CSR advantages include:

“ enhanced brand value and reputation and the �“ enhanced brand value and reputation and the development of closer links with customers and greater awareness of their needs”.

Theses are typical of the benefits received from �Theses are typical of the benefits received from marketing, indicating the link between the two.

BRAND IMAGE

� With the threat of competition and changing attitudes, � With the threat of competition and changing attitudes, companies have to find new ways of promoting themselves.

� US study shows that when price and quality are perceived as equal, customers then choose products they consider socially responsible.they consider socially responsible.

� Many people have identified the benefit of marketing and CSR:

BRAND IMAGE

� Bronn& Vrioni (2001) “ having a pro – social � Bronn& Vrioni (2001) “ having a pro – social agenda means having a powerful marketing tool that can build brand image and brand equity sector”

Girod& Michael (2003) “ CSR can be a key tool � Girod& Michael (2003) “ CSR can be a key tool to create, develop and sustained differentiated brand names”.

COCA - COLA

� Claims of :

− Environmental abuse

− Child abuse

− Harassment

− Racial Discrimination

• Above claims have had a negative effect on the Coca – Cola brand.

• CSR activities:

– Bringing greater transparency to its global operations

– Working alongside 3rd parties, e.g. Greenpeace

– Investments, e.g. £9.65m into World Wildlife Fund for Nature (WWF)

COCA - COLA

� What are the real motives behind Coca – Cola’s CSR practices?practices?

� Are they a strategic marketing tool to dilute the company’s bad image?

� Efforts have been rewarded and recognised: E.g. USAID awarded Coca – Cola ‘Alliance of the year 2007’ award for their contribution to sustainable water 2007’ award for their contribution to sustainable water management.

� Help to increase the company’s CSR profile and brand image.

COCA - COLA

� Coca – Cola’s CSR practices have been criticiced, e.g. Reynolds (2007) as being nothing more than e.g. Reynolds (2007) as being nothing more than strategic motives to help offset the damaged caused to the brand.

� Klein and Dawar (2004), suggested adopting CSR practices can possibly help to dilute a company's negative image, however this should be done negative image, however this should be done carefully so that CSR is not seen as a superficial PR exercise.

CONCLUSION

� Csr as a marketing tool, does not only mean cynicism.cynicism.

� Marketing and PR can be an integrating tool for CSR ( more meaningful for business ) : better communication and relationships with stakeholders.

� The final meaning is always business interest � The final meaning is always business interest orientated: their interests linked to stakeholders interests.

RECOMMENDATIONS

� How CSR affects consumer behaviour as being an extension of brand image. CSR marketing an extension of brand image. CSR marketing affects consumer buying behaviour.

� PR and Marketing, helps to understand business' general environment. They should work together, learn from each other and work together, learn from each other and interact to be more efficient.

REFERENCES

� Baker J. (2005), The marketing book, 5ed., Publisher: Elsevier , Cornwall.� Bernays E L (1955), The Engineering of Consent ,Norman, OK: University of Okla-� homaPress.� homaPress.� Clark E C (2000), Differences Between Public Relations and Corporate Social

Responsibility: An Analysis, Public Relations Review, vol 26(3) pp363–380.� Ethical Corporation (2005), "How to communicate your corporate values to consumers",

available at: www.ethicalcorp.com/consumer. Cited in: Jones et al (2007), What’s in store? Retial marketing and corporate social responsibility. [WWW]. Emerald Group Ld. Available: http://www.emeraldinsight.com/Insight/viewPDF.jsp?Filename=html/Output/Published/EmeraldFullTextArticle/Pdf/0200250102.pdf [Accessed: 01/05/08].

� Girod, S. & Michael, B. (2003) Branding in European Retailing: A corporate social responsibility perspective. Cited in: Jones et al (2005), Corporate Social Responsibility as a Means of Marketing to and Communicating with Customers Within Stores: A Case Study of UK Food Retailers. [WWW] Emerlad Group Ltd. Available from: http://www.emeraldinsight.com/Insight/viewPDF.jsp?Filename=html/Output/Published/EmeraldFullTextArticle/Pdf/0210281003.pdf [Accessed: 01/05/08].

REFERENCES

� Grunig J E and Hunt T (1984), Managing Public Relations ,New York: Har- court Brace Jovanovich College Publishers. Jovanovich College Publishers.

� Klein, J & Dawar N. (2004) Corporate social responsibility and consumers’ at attributions and brand evaluations in a product-harm crisis. Cited in: Jones et al (2005), Corporate Social Responsibility as a Means of Marketing to and Communicating with Customers Within Stores: A Case Study of UK Food Retailers. [WWW] Emerlad Group Ltd. Available from: http://www.emeraldinsight.com/Insight/viewPDF.jsp?Filename=html/Output/Published/EmeraldFullTextArticle/Pdf/0210281003.pdf [Accessed: 01/05/08].

� Maignan, I.& Ferrell, O.C. (2001) Corporate citizenship as a marketing instrument. Cited in: Jones et al (2005), Corporate Social Responsibility as a Means of Marketing to and Communicating with Customers Within Stores: A Case Study of UK Food Retailers. Communicating with Customers Within Stores: A Case Study of UK Food Retailers. [WWW] Emerlad Group Ltd. Available from: http://www.emeraldinsight.com/Insight/viewPDF.jsp?Filename=html/Output/Published/EmeraldFullTextArticle/Pdf/0210281003.pdf [Accessed: 01/05/08].

REFERENCES

� Maignan, I.& Ferrell, O.C. (2004) , Corporate Social Responsibility and Marketing: An Integrative Framework, Journal of the Academy of Marketing Science , Volume 32, No. 1, pages 3-19 , Available from: Marketing Science , Volume 32, No. 1, pages 3-19 , Available from: http://jam.sagepub.com/cgi/content/abstract/32/1/3[Accessed: 04/05/08].

� Porter, M & Kramer, M (2002). The Competitve Advantage of Corporate Philanthropy. Harvard Business Review. Pp. 5-18

� Porter, M & Kramer, M. (2006), Strategy and Society: The link between competitive advantage and corporate social Responsibility. Harvard Business Review. Pp. 78-92

� Reynolds, J (2007), Coke’s CSR Focus: better late than never. [WWW] Business Source Premier. Available from: http://web.ebscohost.com/ehost/pdf?vid=5&hid=108&sid=4f037130-0523-Business Source Premier. Available from: http://web.ebscohost.com/ehost/pdf?vid=5&hid=108&sid=4f037130-0523-48ea-8a03-02faa3465d6b%40sessionmgr106 [Accessed: 02/05/08].

� Theaker A (2008), The Public Relations Handbook, 3rd ed, Routledge, editor : Goldsmiths College, University of London.