Page 86 - Foundations of Marketing

The Marketing Environment, Social

Responsibility, and Ethics

O B J E C T I V E S

1. Recognize the impor-
tance of the marketing
environment.
2. Understand the concept
and dimensions of social
responsibility in marketing.

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M A R K E T I N G I N S I G H T S

Companies Win with Cause-Related Marketing

For many companies, linking their product to a social million in the education system, while its employees
cause is becoming not only a way to build rapport have volunteered 270,000 hours of mentoring for
with customers through support of a social cause, but students. These programs have bolstered employee
also a way to build upon the company’s core compe- satisfaction and job performance and have also
tencies and values. Effective cause-related marketing demonstrated how corporations can produce posi-
initiatives can create a positive image of a company tive results within their communities.
among consumers, particularly as consumers are Additionally, cause-related marketing has
increasingly expecting companies to support social enabled organizations to achieve strong linkages
or environmental causes. One study revealed that 85 between their support for causes and the products
percent of consumers view companies that engage in they offer. For instance, American Express created
cause-related marketing in a more positive light. a special edition United Way Gift Card in which the
While some firms make one-time donations or company donates the purchase fee for the card to
decide to temporarily adopt a community proj- support United Way’s work. American Express ben-
ect, others have successfully incorporated cause- efits from both the sale of the gift card as well as the
related marketing into their programs. For instance, positive perception it generates by aligning its prod-
IBM established a community service program, uct with a good cause. Aligning marketing activities
Corporate Service Corps, which allows more than with a social cause utilizing core competencies of
200 teams of twelve people to volunteer domestically the firm has proven to be an effective way of creating
1
and globally. AT&T has invested more than $ 100 strong associations between company and cause.

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