How to Improve Customer Trust in a Cause Related Marketing?
Table of Contents
2. Why is cause related marketing significant?
3. The transportation issue
4. How a company deal with transportation issue?
5. The consumption philanthropy concern
6. How to prevent the consumption philanthropy concern?
7. What might be unexpected advantages?
8. What could be the negative effect?
Cause related marketing, also called cause marketing, is given a definition by Online Cambridge Business Dictionary (2011) as "a method of marketing products or services in which a company aims not only to make a profit but also to help an organization (NPO) such as charity". Cause related marketing drives the sales just like any other marketing campaign, and creates considerable benefit for a company, NPO partner and customer; even if current campaign appears simply to raise awareness unlike previous one, where a purchase contributes donation to a charity.
However, with the prosperity of cause related marketing, customer trust has been considered as an issue. Therefore, a straightforward approach emphasizing honesty should be applied as the primary solution to improve customer trust. This essay will first discuss the cost-effectiveness and challenge of cause related marketing, then conduct solutions with evaluating both the advantages and disadvantages.
Why is cause related marketing significant?Ã¢ÂÂ¨Evidence shows the high tendency of customer support: 80% of Americans are likely to switch the brand to support a cause marketing campaign; 60% of American will even try a new brand for it ("2010 Cone Cause Evolution Study," 2010). Therefore, even under a recession and tight budget, a company would not cease expenditure on a cause related marketing campaign. A report indicates that 64% of Americans acknowledge company contribution to the social and environmental issues that emerged during the...