Marketing_Management_14th_Edition-min

634 PART 8 CREATING SUCCESSFUL LONG-TERM GROWTH
innovation. Sales of products emphasizing sustainability remained strong through the recent
economic recession. 49
Socially Responsible Business Models
The future holds a wealth of opportunities, yet forces in the socioeconomic, cultural, and natural
environments will impose new limits on marketing and business practices. Companies that innovate
solutions and values in a socially responsible way are most likely to succeed. 50
Companies such as The Body Shop, Working Assets, and Smith & Hawken are giving social
responsibility a more prominent role. Late actor Paul Newman’s homemade salad dressing has grown
to a huge business. Newman’s Own brand also includes pasta sauce, salsa, popcorn, and lemonade
sold in 15 countries. The company has given away all its profits and royalties after tax—almost
$300 million so far—to educational and charitable programs such as the Hole in the Wall Gang
camps Newman created for children with serious illnesses. 51
Corporate philanthropy as a whole is on the rise: After years of steady growth, with $14.1 billion
in cash and in-kind support given in 2009, it held fairly steady even during a recession. 52 In addition
to these contributions, more firms are coming to believe corporate social responsibility in the
form of cause marketing and employee volunteerism programs are not just the “right thing” but
also the “smart thing to do.” 53
Cause-Related Marketing
Many firms blend corporate social responsibility initiatives with marketing activities. 54 Causerelated
marketing links the firm’s contributions to a designated cause to customers’ engaging directly
or indirectly in revenue-producing transactions with the firm. 55 Cause marketing is part of corporate
societal marketing (CSM), which Minette Drumwright and Patrick Murphy define as marketing
efforts “that have at least one noneconomic objective related to social welfare and use the resources
of the company and/or of its partners.” 56 Drumwright and Murphy also include traditional and
strategic philanthropy and volunteerism in CSM.
Table 22.4 summarizes three award-winning and highly successful cause marketing programs.
We next review pros and cons of such programs and some important guidelines.
TABLE 22.4
Three Classic Cause Marketing Programs
Tesco
Tesco, a leading UK retailer, has created a “Tesco for Schools and Clubs” program that dovetails well with its overall corporate brand positioning
of “Every Little Bit Helps.” Customers receive one voucher for every £10 spent, which they can donate to a school of their choice or any
registered amateur club for children under 18. In 2009, the company gave away 540,000 items worth £13.4 million. It also offers vouchers
for recycled inkjet cartridges and donated working phones.
Dawn
Procter & Gamble’s Dawn, the top dishwashing liquid in the United States, has long highlighted its unusual side benefit—it can clean birds
caught in oil spills. A report by the U.S. Fish and Wildlife Service called Dawn “the only bird-cleaning agent that is recommended because it
removes oil from feathers; is non-toxic; and does not leave a residue.” A Web site launched in 2006, www.DawnSavesWildlife.com, drew
130,000 people who formed virtual groups to encourage friends and others to stop gas and oil leaks from their cars. After the catastrophic
BP oil spill in 2010, P&G donated thousands of bottles as well as placing a code on bottles and donating $1 to Gulf wildlife causes for each
code customers activated, eventually totaling $500,000. The brand also drew massive publicity and visits to its Facebook site, which outlined
the environmental cleanup and relief effort.
British Airways
British Airways developed a cause-marketing campaign called “Change for Good” to encourage its passengers to help by donating the foreign
currency left over from their travels to UNICEF. The airline advertised its program during an in-flight video, on the backs of seat cards, and with
in-flight announcements. It also developed a television ad that featured a child thanking British Airways for its contribution to UNICEF. Because
Change for Good directly targeted passengers, it did not require extensive advertising or promotion and was highly cost-efficient. It produced
immediate results, and over a 15-year period from 1994 to 2009, it distributed almost $45 million around the world.
Sources: www.tescoforschoolsandclubs.co.uk; www.dawnsaveswildlife.com; www.britishairways.com; Jack Neff and Stephanie Thompson, “Eco-Marketing Has Staying Power This Time Around,”
Advertising Age, April 30, 2007, p. 55.