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Marketing strategy with Social Responsibility 1

INTRODUCTION

Business and Society are interdependent. Society depends on


business for meeting its needs and welfare, whereas, Business depends on
society for its existence and growth.
Social responsibility is an ethical or ideological theory that an entity
whether it is a government, corporation, organization or individual has a
responsibility to society at large. This responsibility can be "negative", meaning
there is exemption from blame or liability, or it can be "positive," meaning there is
a responsibility to act beneficently.
“It is better to be proactive towards a problem rather than reactive to
a problem. One part of Social Responsibility is being responsible to people,
for the actions of people and for actions that affect people”
Marketing Strategy of corporate houses is witnessing a paradigm shift. It is
increasingly being realized that merely focusing on commercial objectives would
not sustain businesses as consumers now expect the companies to be more
socially responsible and responsive. Corporate Social Responsibility would
function as a built-in, self-regulating mechanism whereby business would monitor
and ensure their adherence to law, ethical standards, and international norms.
Business would embrace responsibility for the impact of their activities on the
environment, consumers, employees, communities, stockholders and all other
members of the public sphere
In today’s time, Marketing Strategies of Corporate Houses have started
putting emphasis on social responsibility both to enhance customer goodwill and
to boost corporate revenue. The new age customers have made corporate
houses pay attention to their social responsibility more effectively than age-old
beliefs of only generating revenue.
The corporate sector should undertake some social activity along with
their core commercial activities should not be viewed as an imposed liability, but
considered as an opportunity to improve the scope and space of their business,
that would ultimately provide increasing competitive strength to them.

B.R.C.M. College of Business Administration


Marketing strategy with Social Responsibility 2

Two Dimensions of Corporate Houses for Success

Social Commercial
objective objective

B.R.C.M. College of Business Administration


Marketing strategy with Social Responsibility 3

ENVIRONMENT AFFECTING SOCIAL RESPONSIBILITIES OF


CORPORATE HOUSES

ENVIRONMENT
INTERNAL CORPORATE EXTERNAL
ENVIRONMENT HOUSE
DECISION

[1] Internal Environment:-


There are number of social internal factors which influence the strategy
and other decisions of corporate houses which are as follows.

 Direction of development of corporate houses is guided by the mission


and objectives. To provide social responsibilities more effectively,
mission and objectives must be not to promote ‘customer advocacy,’ but
just to stress on ‘customer relationship’.

 Employee morale, motivation, skills, quality, commitment attitudes, etc are


to be increased by fulfilling their affiliation need by corporate houses.

 Internal power relationship between various stakeholders likes


customers, lower level employees, shareholders, etc. and top
management of corporate houses have an important influence in
increasing social responsibility.

 Value system can be shared by integrating commercial and social


objectives which will help to improve the public image of corporate houses
and help them to expand the markets for product and services.

B.R.C.M. College of Business Administration


Marketing strategy with Social Responsibility 4

[2] External Environment:-


Not only internal environment but also external environment shape
opportunities and pose threats to the corporate houses which are as follows.

(1) Socio-cultural Environment:-


 Marketing strategy of corporate houses have started emphasis on
providing services to customers to become imperative for them to re-
define their remarketing strategy and seek customer advocacy by
integrating social responsibilities with commercial objective.

 Corporate houses have an impact on consumer motivation with regard to


quality, price, delivery, conforming to social status and moorings of
customers to highlight their objectives both commercial and social that
would benefit all the stakeholders including society in general.

 It has become necessary to corporate houses to come forward with


special endowments and even charity funds to ensure basic amenities for
the poor to supplement the support services which will generate the value
of the corporate houses.

(2) Economic Environment:-


 It has become imperative for the corporate sector to firm up and integrate
their marketing strategy with social responsibilities to improve their
economic status particularly in the developing country not only to enhance
customer advocacy but also to mitigate social unrest and distress caused
by the increasing disparity of income between the masses.

B.R.C.M. College of Business Administration


Marketing strategy with Social Responsibility 5

(3) Political and Government Environment:-


 Corporate social responsibility is much more than just providing discount
on prices or trying to reach a large section of people by creating small size
packages of one’s products at lower prices along with regulations to
protect the purity of the environment and preserve the ecological balance.

(4)Technological Environment:-
 It is necessary for corporate houses to lend their expertise, resources and
time to reach out to people, to help them over come to their present
difficulties to visualize innovative services and products for neglected
sections of society.

 There are so many tools and methodologies available to measure the


direct benefits which are still imperfect and can assess only some
indicating trends. So corporate houses must adopt a policy of judgmental
assessment of benefits rather than any conclusive analysis.

(5)International Environment:-
 There is growing consciousness among most of the corporate houses in
international market as expected by the government to undertake some
social activity along with their core commercial activities to increase
opportunities to improve the scope and space of the business that would
ultimately provide increasing competitive strength to them.

B.R.C.M. College of Business Administration


Marketing strategy with Social Responsibility 6

MARKETING STRATEGY ADOPTED FOR SOCIAL


RESPOSIBILITY BY CORPORATE HOUSES

(1)Business level Strategy:-


Business strategies are the course of actions adopted by corporate
houses to serve identified customers groups and provide value to the customer
to satisfy their social needs. Strategy adopted by corporate houses is as follows:

a) Cost leadership Strategy:-


 As corporate houses has started emphasis on providing services to
customers by creating products at lower prices which would ultimately
satisfy social needs of developing country. So, In today’s time, the
corporate houses are not only generator of revenue but also a consumer
of revenue.

 One of the important benefits of holding cost leadership with social


responsibility is possibly best insurance against industry competition.

 Cost advantage with social responsibility can easily be duplicated by


competitors. So, it is not a long term approach.

b) Differentiation Strategy:-
 Corporate houses have started differentiating their strategies by
integrating commercial activity with social activity in order to better serve
their customers.

 Corporate houses has also added differentiation in providing special


endowments and charity funds to ensure basic needs for the poor to
supplement social responsibility along with products and services.

B.R.C.M. College of Business Administration


Marketing strategy with Social Responsibility 7

 Corporate houses differentiated its services along with social responsibility


including consumer motivation, empathy to society, charitable activities,
building customer goodwill, innovative products and services to
customers, communication to change the present notion of customers.

 Because of social activities, corporate houses can gain unique brand


loyalty which differentiates it from others.

 In providing affiliation need, corporate hoses act as an entry barrier


against substitute products and services.

 Differentiation fails to work if customers do not value the social services


which are provided by the corporate houses.

(2) Corporate Strategy:-


 Due to awareness among people and high level education has changed
the mind set of consumer towards social activity along with products and
services. So, corporate houses have diversified their commercial activity
into social activity.

 Corporate houses are expanding their businesses by lending their


expertise, resources and time to reach out to people, to help them
overcome their present difficulties by providing innovative products and
services.

 Corporate houses has emphasized on building customer goodwill and


advocacy, rather than working for customer relationship management with
commercial objective. So, it would be a great advantage for corporate
houses to improve their organic growth but it is a time-consuming and
expensive.

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Marketing strategy with Social Responsibility 8

SUGGESTIONS AND CONCLUSION

Suggestions:-
 Corporate Houses should focus on niche target customer to provide
social responsibility with value added products and services.

 Rather than expanding by organic growth as it would be a time consuming


process, corporate hoses should adopt inorganic growth strategies.

 Corporate Houses should make an agreement with Non Profit


Organization for mutual benefits by offering them high amount of charity
to satisfy the social need in general.

 Corporate Houses should make a joint venture with government for


getting the benefits of subsidies and other incentives so as to provide the
product at low prices to the nation.

 Corporate Houses should undertake socio-cultural programs to give


an opportunity to society to show their talents.

Conclusion:-
 It would be universally acknowledged that long term success in corporate
houses depends not only on the quality of their products and services or
even on the financial results, but also on the extent of the improvement
the society is able to achieve by providing social responsibility.

 Such an approach would also provide greater visibility to corporate houses


to sustain its presence during the current recessionary period.

B.R.C.M. College of Business Administration

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