Managing a Holistic

Marketing Organization for the Long Run

Part 3

How can companies be responsible social marketers?

Businesses have not always believed in the value of social responsibility

I have never known much good done by those who profess to trade for the public

good – Adam Smith

Forces driving CSR

Rising customer expectations

Evolving employee goals and ambitions

Tighter Government legislations and pressure

Investor interest in Social Criteria

Media scrutiny

Changing Business Procurement practices

Socially responsible marketing calls for a 3 pronged attack

Legal Behaviour

Firm must ensure every employee knows and observes relevant laws

Hard to differentiate between what is ethical and unethical. Firms must adopt and disseminate a written code of ethics

Bribery, theft of trade secrets,

price fixing etc are unethical.

Social responsibility behaviour Communicating CSR is quite a challenge. Many a time, firms become a target of criticism when adopting sustainability and environmental initiatives.

How to blend CSR initiatives with marketing activities?

Cause related marketing Cause marketing refers to “marketing efforts that have at least one non economic objective related to social welfare and use the resources of the company and/or of its partners” – Minette Drumright and Patrick Murphy

Costs and Benefits

Could backfire if consumers question the link between the product and the cause or see the

firm as exploitative and inconsistent.

Increase firm’s market value

Drive sales Enhance firm’s public image

Differentiated brand positioning

Build strong consumer bonds

Improve social welfare

Social marketing: Carried out by non profit and government organizations to further a cause. They are quite complex and usually take time to take effect.

Recap:

Socially responsible Marketing: 3 pronged attack Legal behaviour Ethical behaviour Social responsibility behaviour Combining CSR initiatives with marketing practices.

Thank you