Small Companies and
Cause-Related Marketing
It is an established fact that companies can enjoy many
privileges by adding a component cause-related marketing to their marketing
strategies. Those benefits include increased sales, loyal customers and also
increased customer base. Findings have yielded the result that customers can
switch their brands if they find another brand equivalent to their needs and
the other brand is a part of some cause that matters to them. Corporate sector
has invented corporate philanthropy and if small companies want to survive in
this competitive era then cause-related marketing is inevitable. But obtaining
maximum from minimum investment can be tough and even may seem impossible in
the beginning. Small companies with limited resources taking scarcity of funds
an issue should not overlook bundles of advantages that cause-related marketing
promises. With efficient management spending a small amount can earn small
profit that will substantially increase their funds and strengthen their
financial base.
How to turn
Cause-Related Marketing into Effective Cause-Related marketing
1)Cause Location:
A small Company first need to understand its value proposition and customers
like what it offers, why it offers and why customers are looking for the value
it is offering. Understanding the psyche of its customers will help company
define causes it can support that will compliment its own business. Failure to
exactly locate customer’s perception about cause can result in failure of
entire marketing efforts. So small company needs to look for a cause that is
easy to be marketed, doesn’t contradict masses views or is not controversial
and compliments its customer’s preferences and its own product.
2) Partner selection:
Then the next step is looking forward for a partner (not for profit
organization or a non-government organization) who is working for the cause
selected and is doing work effectively. Any question on partner’s work or
reputation can turn promised benefits into contingent lose. It’s not important
to partner with big names and big names may not be willing to partner with you
so looking for local but well known and trusted group is the better option.
3) Marketing Medium
and Budgeting: The toughest part is looking for medium for marketing. Most
suited and economical medium depends upon conditions prevalent, society it is
operating in and the cause it is working for. Presently social networking
sites, locally conferences arranged by international organizations are the most
suited and can be molded for one’s own cause.
Budgeting should be done after a careful analysis of return
on investment the cause can deliver and company’s own resources.
4) Contribution
Amount: The Company then needs to clearly state the amount it is
contributing. It should be unambiguous that how much will be the cause donation
from the sale of a single product
Examples:
For a
newly launched newspaper with small resource power it can be tough to bear
heavy promotional expense. So it can look for cause-related marketing. It can
effectively reach its customers by using the method that is collaboration with
organizations arranging conferences related to current conditions, awareness
campaigns e.t.c. as mainly the target audience of conferences is the group
bothered about their nation and world happenings. Having once exposed to such a
customized audience and making them know about your contributions, your future commitment
for such causes and more importantly your online presence; it can earn you
customers, their loyalty and increased sales.
