Sunday, May 3, 2009

Causal Marketing, It's not Corporate Social Responsibility

Causal marketing is a kind of marketing that used to promote products or services and cause together for benefit for community and corporation. Enterprises often use this kind of marketing to build long-term relationship between company and their markets and at the same time getting profits from sold products :). Famous pioneer in causal marketing is American Express. American Express charged 1 cent per card usage for restoring Statue of Liberty, and the result is beside the statue was restored American Express also had 45% growth of new cards and card usage was increase 28%.

In the other side Corporate Social Responsibility (CSR) is a form of company self-regulation integrated into its business model. CSR functions as mechanism whereby company monitor and ensure their adherence to ethical standards, law, and norms. By integrating CSR into business model, corporation encourages community growth and development and eliminating practices that harm the public environment. CSR policies shall not implemented for getting profits, but sometimes people in many corporations don't understand it, they think by implementing CSR then corporation will get increase in its profit directly, in fact corporation may be getting increase in its profit in the longer terms because of corporation's image increase and many other business entities would like to cooperate with corporation that cares and implements CSR.

Causal marketing programs' results are direct to profit, but CSR policies' results are indirect to profit. Causal marketing programs also can increase product's brand equity, CSR too. Because of the nature of causal marketing programs that getting profit and increase relationship with markets in the same time then as marketer i love causal marketing more than CSR!

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