Content

1. Introduction
2. Literature review
3. Rationale of Study
4. Objective of study
5. Research methodology
6. Data analysis and interpretation
7. Finding
8. Conclusion
9. Limitation
10.

Suggestions

11.

Reference

12.

Appendix
a. Questionnaire

INTRODUCTION

INTRODUCTION
Marketing
First, the word marketing means very different things to different people in different
industries. For example, a coal producer in Kentucky just needs to understand what price the
local buyer will be paying for the product and s/he can then plan to market (or just sell) the
coal produced to the local buyer. Second, think about how much different the above situation
is from another case in which marketing must be done. Lets say that you are a productmarketing engineer at Agilent Technologies and your Product Marketing Manager has
informed you that you will be responsible for marketing a new product that has been
conceptualized by engineers in the Research and Development (R&D) Department. Finally,
assume a good friend of yours who has invented a new way for people to wash their car. She
has asked you to market her product for her. In all three of these situations, the product has
already been conceptualized and produced. It wont help the individual marketer at all to
consider how the market will react to the product. In situation one, the coal miner must just
extract the coal from the ground and deliver it to a local coal broker for sale. In situation two,
the product manager at Agilent must first figure out what the new product will be good for
and who might want to buy it. Finally, in situation three, your friend has already invented the
product; it just remains for you to figure out who the people are who wash their own car and
how to reach them. In all three situations, the marketer is faced with coming up with a way
to sell what has already been produced. This definition of marketing, unfortunately, is how
most people would define marketing, that is, Marketing is how an organization or individual
sells its product or service. Thus in this definition, marketing is relegated to finding and
exploiting a market of buyers for the product or service.
But is that how marketing practitioners and people who teach marketing define it? Lets
review some alternate definitions of marketing from the business literature.
The American Marketing Associations definition. The American Marketing Association
(AMA) is the leading organization in the U.S. representing the academic side of marketing.
The organization is comprised of and primarily impacted by people who teach marketing at
the college level. In 1948, the AMA defined marketing as follows:

The performance of business activities directed toward, and incident to, the flow of
goods and services from producer to consumer or user.
(AMA, 1948).
Note that the definition above focuses on the DISTRIBUTION aspect of marketing and
doesnt really include the Four Ps: Product, price, promotion, place (distribution).

In 1985, the AMA definition was changed to the process of planning and executing the
conception, pricing, promotion, and distribution of ideas, goods, and services to create
exchanges that satisfy individual and organizational objectives. (AMA 1985)

Compare these two definitions: How are they similar and how do they differ?
Why do you think the AMA made the change in the definition of marketing?
The Seven Steps in the Marketing Process
It is natural that people in different situations define marketing differently. However, we will
approach the definition of marketing by first learning about the seven steps in the process of
marketing. While this process is not always followed, it is important that any student of
marketing understand what steps must be taken to be successful in a marketing effort. The
marketing process can be described in the following seven steps:
A. Understand the market wants/needs of interest
B. Based on relative size and needs of the market, select certain segments of the market that
are of the most interest to you and your organization
C. Thoroughly describe these segments based on their individual needs
D. Create a product or service that will meet the specific needs identified
E. Communicate the concept of the product or service to the targeted customer in a way
that makes sense to the customer
F. Deliver the product or service to the targeted customer in a way that will be convenient
to the customer

G. Solicit feedback from the customer about how your product or service could be improved
to meet the customers needs even better
This process is applicable to most situations encountered by those wanting to market a
product or service.

The process of marketing can be divided into upstream and

downstream activities. That is, steps A through D are all upstream activities that should be
performed before a product actually exists. Surely, there are many readers who will say,
Wait, this wont work for me, I am like those people who you described at first, I already
HAVE a product to sell, I just need to find somebody to BUY IT! As marketers, we
understand that many sellers dont have the option or input to create a new product or
service. However, this e-book is designed for people who want to do marketing the right
way. If you must pick up the process after steps A, B, and C have already been performed,
realize that some steps have already been done, and you should check to see if they have
been done correctly.
Also note that marketing research plays an integral role in each of these stages. That is, the
organization that is truly focused on customer needs must be driven by an active research
effort.
What is marketing management?
We will use the following definition of marketing management: Marketing management
is the process allocating the resources of the organization toward marketing activities. Thus,
a marketing manager is someone who is responsible for directing expenditures of marketing
funds.

Related to the term management is the term strategy.

Many words in the

vocabulary of business management were taken from the field of military science. For
example, the word strategy has been used in the military for many decades to indicate a
long-term commitment of resources toward accomplishing a certain goal. Thus it is often
said that management is responsible for conceptualizing strategies, and other employees are
responsible for implementing those strategies. The time-honored Management-by-Objectives
programs in which a supervisor will formulate strategies and other employees will choose the
method of reaching those objectives is an example of this relationship in action. As the
reader can see, a discussion of strategy, objectives, and goals can very quickly develop into
a miasma of terms and confusion. Thus, we will use the following definitions. First, we will
consider goals and objectives to be identical terms. Second, we will use the term objective

to refer to a broad-based design of where the organization would like to be at some point in
the future. For example, as an objective, the organization might decide to be the leader in
product quality as judged by customer surveys of our organization and our five leading
competitors. We will define the term strategy as a method used to reach an objective. For
example, to reach our product quality objective, our organization might decide to enroll in a
total quality program offered by most large consulting firms. Thus, strategy will have two
meanings. First, it is the overall orientation an organization choosing to allocate its resources,
and second, strategy is a specific action used to implement plans. Thus, there is a two-tiered
nature to strategy. One at the top, as a broad guide to preferred action, and one below helping
to implement objectives. Use strategy as a keyword search on the internet and see what you
find.
In marketing, we often use the four Ps to designate the areas of control a marketing
manager has at his/her command. The four Ps as you probably already know are: Product,
Price, Promotion, and Place. The four Ps represents a convenient way to summarize the
main factors involved in any marketing strategy. However, seen in a contemporary sense,
the four Ps may mistakenly be limited to downstream marketing activities only and as
Chapter One indicates, there are also upstream marketing activities that are related to the
marketing mix. If this does not make sense to you, please go back and review the terms used
in Chapter One.
The Marketing Management Cycle
The planning cycle is composed of five basic steps.

First, Planning is the process of

examining and understanding the surroundings within which the organization functions. For
example, environmental scanning is the process of studying and making sense of all the
things that might impact the firms operation that are external to the firm. This would include
studying and gaining an understanding of such things as: competition, legislation and
regulation, social and cultural trends, and technology. Both present and developing trends in
each of these areas must be identified and monitored.
Second, Implementation is the process of putting plans that have been made into action. It is
the transition from expected reality to existing reality.

Third, Monitoring is the process of tracking plans and identifying how plans map to changes
that take place during program operation when more information is acquired. Correction is
the stage in which we take action to return our plan to the desired state based on feedback
obtained in the monitoring stage. If we find that return to the planned state is not practicable,
we may adjust our planning outcomes. Thus, Monitoring and Correction may be considered
two stages because after plans are put into action, one must continually monitor performance
and make adjustments to the plan based on the feedback gathered through these monitoring
activities.

In summary, the marketing management cycle composed of planning,

implementing, monitoring, and correcting. We use the use the term PIMC as a device to
remember the stages.
Marketing is related to the exchange of goods and services. Through its medium the goods
and services are brought to the place of consumption. This satisfies the needs of the
customers. The following activities are undertaken in respect of the exchange of goods and
services:
1. Gathering and Analysing Market Information:
Gathering and analyzing market information is an important function of marketing. Under it,
an effort is made to understand the consumer thoroughly in the following ways:

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(a) What do the consumers want?
(b) In what quantity?
(c) At what price?
(d) When do they want (it)?
(e) What kind of advertisement do they like?
(f) Where do they want (it)?
What kind of distribution system do they like? All the relevant information about the
consumer is collected and analysed. On the basis of this analysis an effort is made to find out
as to which product has the best opportunities in the market.
2. Marketing Planning:

In order to achieve the objectives of an organisation with regard to its marketing, the
marketeer chalks out his marketing plan. For example, a company has a 25% market share of
a particular product.
The company wants to raise it to 40%. In order to achieve this objective the marketer has to
prepare a plan in respect of the level of production and promotion efforts. It will also be
decided as to who will do what, when and how. To do this is known as marketing planning.
3. Product Designing and Development:
Product designing plays an important role in product selling. The company whose product is
better and attractively designed sells more than the product of a company whose design
happens to be weak and unattractive.
In this way, it can be said that the possession of a special design affords a company to a
competitive advantage. It is important to remember that it is not sufficient to prepare a design
in respect of a product, but it is more important to develop it continuously.
4. Standardisation and Grading:
Standardisation refers to determining of standard regarding size, quality, design, weight,
colour, raw material to be used, etc., in respect of a particular product. By doing so, it is
ascertained that the given product will have some peculiarities.
This way, sale is made possible on the basis of samples. Mostly, it is the practice that the
traders look at the samples and place purchase order for a large quantity of the product
concerned. The basis of it is that goods supplied conform to the same standard as shown in
the sample.
Products having the same characteristics (or standard) are placed in a given category or
grade. This placing is called grading. For example, a company produces commodity X,
having three grades, namely A. B and C, representing three levels of quality; best,
medium and ordinary respectively.
Customers who want best quality will be shown A grade product. This way, the customer
will have no doubt in his mind that a low grade product has been palmed off to him. Grading,

therefore, makes sale-purchase easy. Grading process is mostly used in case of agricultural
products like food grains, cotton, tobacco, apples, mangoes, etc.
5. Packaging and Labelling:
Packaging aims at avoiding breakage, damage, destruction, etc., of the goods during transit
and storage. Packaging facilitates handling, lifting, conveying of the goods. Many a time,
customers demand goods in different quantities. It necessitates special packaging. Packing
material includes bottles, canister, plastic bags, tin or wooden boxes, jute bags etc.
Label is a slip which is found on the product itself or on the package providing all the
information regarding the product and its producer. This can either be in the form of a cover
or a seal.
For example, the name of the medicine on its bottle along with the manufacturers name, the
formula used for making the medicine, date of manufacturing, expiry date, batch no., price
etc., are printed on the slip thereby giving all the information regarding the medicine to the
consumer. The slip carrying all these is details called Label and the process of preparing it as
Labelling.
6. Branding:
Every producer/seller wants that his product should have special identity in the market. In
order to realise his wish he has to give a name to his product which has to be distinct from
other competitors.
Giving of distinct name to ones product is called branding. Thus, the objective of branding is
to show that the products of a given company are different from that of the competitors, so
that it has its own identity.
For instance, if a company wants to popularise its commodity X under the name of 777
(triple seven) then its brand will be called 777. It is possible that another company is selling
a similar commodity under AAA (Triple A) brand name.

Under these circumstances, both the companies will succeed in establishing a distinct identity
of their products in the market. When a brand is not registered under the trade Mark Act,
1999, it becomes a Trade Mark.
7. Customer Support Service:
Customer is the king of market. Therefore, it is one of the chief functions of marketer to offer
every possible help to the customers. A marketer offers primarily the following services to the
customers:
(i) After-sales-services
(ii) Handling customers complaints
(iii) Technical services
(iv) Credit facilities
(v) Maintenance services
Helping the customer in this way offers him satisfaction and in todays competitive age
customers satisfaction happens to be the top-most priority. This encourages a customers
attachment to a particular product and he starts buying that product time and again.
8. Pricing of Products:
It is the most important function of a marketing manager to fix price of a product. The price
of a product is affected by its cost, rate of profit, price of competing product, policy of the
government, etc. The price of a product should be fixed in a manner that it should not appear
to be too high and at the same time it should earn enough profit for the organisation.
9. Promotion:
Promotion means informing the consumers about the products of the company and
encouraging them to buy these products. There are four methods of promotion: (i)
Advertising, (ii) Personal selling, (iii) Sales promotion and (iv) Publicity. Every decision

taken by the marketer in this respect affects the sales. These decisions are taken keeping in
view the budget of the company.
10. Physical Distribution:
Under this function of marketing the decision about carrying things from the place of
production to the place of consumption is taken into account. To accomplish this task,
decision about four factors are taken. They are: (i) Transportation, (ii) Inventory, (iii)
Warehousing and (iv) Order Processing. Physical distribution, by taking things, at the right
place and at the right time creates time and place utility.
11. Transportation:
Production, sale and consumption-all the three activities need not be at one place. Had it been
so, transportation of goods for physical distribution would have become irrelevant. But
generally it is not possible. Production is carried out at one place, sale at another place and
consumption at yet another place.
Transport facility is needed for the produced goods to reach the hands of consumers. So the
enterprise must have an easy access to means of transportation.
Mostly we see on the road sides private vehicles belonging to Pepsi, Coca Cola, LML,
Britannia, etc. These private carriers are the living examples of transportation function of
marketing. Place utility is thus created by transportation activity.
12. Storage or Warehousing:
There is a time-lag between the purchase or production of goods and their sale. It is very
essential to store the goods at a safe place during this time-interval. Godowns are used for
this purpose. Keeping of goods in godowns till the same are sold is called storage.
For the marketing manager storage is an important function. Any negligence on his part may
damage the entire stock. Time utility is thus created by storage activity.

Social Cause
A social cause (additionally called a social issue or a social ailment) alludes to an issue that
impacts and is contradicted by an impressive number of people inside a general public. It is

frequently the result of variables broadening past an individual's control and local
geographical environment. Now and again, a social issue is the wellspring of a conflicting
opinion on the grounds of what is seen as an ethically just individual life or societal order.
Distinctive social orders have diverse discernments. Social issues are recognized from
economic issues; in any case, a few issues, (for example, immigration) have both social
and financial viewpoints. There are additionally issues that don't fall into either classification,
for example, wars. Examples of few social causes maybe, Social stratification, Economic
issues, Social disorganization, Age and the life course, Inequality, Education and public
schools, Work and occupations, Environmental racism, Abortion, etc.

Cause Related Marketing

Cause-related marketing has introduced in recent years even though it is a young concept
which many big organizations using for creating brand equity and for achieving a competitive
advantage. Cause marketing or cause-related marketing refers to that type of marketing which
involves the cooperative efforts of both profit as well as nonprofit organization for mutual
benefit. This type of term is sometimes used broadly as well as generally refers to any type
of marketing effort for social and other causes. It provides the emotional as well as the
rational engagement of the consumer with the brand. Cause - related marketing is different
from corporate giving as the corporate giving
generally involves some specific donation that is tax deductible, while cause related
marketing is a marketing which is based on marketing relation and not necessarily based on a
donation.

LITERATURE REVIEW

LITERATURE REVIEW
Introduction:
Cause-related marketing (CRM) is defined as the process of formulating and
implementing activities that are characterized by an offer from the firm to contribute a
specified amount to a designated cause when customers engage in revenue-providing
exchanges that satisfy organizational and individual objectives (Varadarajan and Menon,
1988). Cause-related marketing includes product sales, promotions and program-driven
collaborations between companies and nonprofit causes. There are seven main types of CRM
arrangements. The first five types relate to standard corporate practices, and these include
advertising, public relations, sponsorship, licensing and direct marketing. Facilitated giving
occurs when a business facilitates customer donations to the charity. The most widely used
CRM practice is purchase-triggered donations. This occurs when a company pledges to
contribute a percentage or set amount of a products price to a charitable cause or
organization. This thesis will concentrate on purchase-triggered donations to demonstrate
CRM relationships between profit maximizing organizations (PMOs) and nonprofit
organizations (NPOs).
Cause-related marketing was first launched by American Express in the early 1980s.
Jerry Welsh, the senior vice president at the time, believed that card members would be
encouraged to use their American Express cards for local purchases if they had a local cause
to support (Daw, 2006). In 1983 American Express expanded the program nationally because
of its early success. American Expresss new objective was to increase card use and new card
applications and at the same time support the nonprofit Restoration Fund. American Express
donated one cent for every card transaction and one dollar for every new card application to
the nonprofit Restoration Fund (Daw, 2006). In three months the Restoration Fund raised
over $1.7 million, and American Express card use rose 27 percent, while new card
applications increased by 45 percent compared to the previous year (Daw, 2006). This causerelated marketing program demonstrated that mutually beneficial relationships could be built
between nonprofit organizations and corporations. A 1988 study for Independent Sector
reported that cause-related marketing promotions are appropriate and useful, benefiting the
corporation, the nonprofit, and the consumer (Wagner and Thompson, 1994). As a result of its
apparent success, cause-related marketing grew in the United States from $120 million in
1990 to an estimated $1.08 billion in 2005 (Epstein, 2005). Many manufacturers and retail

chains such as Avon, Cadbury, The Home Depot, Target, Timberland, McDonalds and
ConAgra all practice CRM. The types of nonprofit organizations that team up with firms are
the so-called public benefit organizations. Public benefit organizations are those that serve a
scientific, literary, education, artistic, environmental or charitable purpose that benefits the
public. In the nonprofit world these are known as 501(c)(3)s.
Literature Review:
Benefits Associated With A Cause-Related Marketing Relationship
Many nonprofit organizations face financial pressure as a result of the increasing
needs of society. In order to satisfy the social needs of society and produce public goods,
nonprofit organizations need to increase their revenue sources. NPOs can either increase
private donations from individuals or increase proceeds from a corporations sale of goods or
services that are linked to the name of the nonprofit organization. Increasing donations from
individuals is often difficult to do. Weisbrod (1998) states that individual giving has remained
at around 1.9 percent of personal income for over two decades. Between 1973 and 1994, it
has ranged between 1.77 percent and 2.00 percent (Weisbrod, 1998). Weisbrod (1998) argues
that there is little reason to expect that donations can be increased significantly unless tax
laws are substantially changed. Therefore, commercial activities, such as cause-related
marketing, are immediate ways for NPOs to generate additional revenue.
Nonprofit organizations are able to secure a fair share of increased revenues derived
from cause-related marketing with a PMO. Drumwright (2000) reports that the Girl Scouts of
America has an arrangement with Dryers ice cream such that 10 percent of the profits for the
ice cream that displays the youth organizations name and logos goes to the Girl Scouts.
According to Drumwright (2000) this agreement corresponds with standard business practice
in which licensing fees average five to ten percent of net gain. Polonsky and Wood (2001)
point out that increased financial resources that result from this type of partnership enable
nonprofit organizations to expand their services and at the same time increase their profile.
Establishing a cause-related marketing partnership enables a non-profit organization
to access a wider and a more diverse audience. For example, Susan G. Komen Foundation
has developed a relationship with Ford Credit, a subsidiary of Ford Motor Company, and
NASCAR Race Events (Daw, 2006). As a result, the Susan G. Komen Foundation is gaining

marketing exposure at no direct cost. Polonsky and Wood (2001) argue that this extensive
publicity may enable a nonprofit organization to gain a greater presence in the market.
Cause-related marketing decreases a NPOs transactions costs because NPOs do not
have to directly approach consumers for a donation. Costumers indirectly donate to a cause
through their purchases. Therefore, NPOs do not have to spend additional resources asking
the public for direct donations. Polonsky and Wood (2001) mention that consumers may feel
that they are doing something good for society without it costing them any additional cost
when they buy a product linked to a cause. Customers purchase at their discretion and
essentially donate on more than one occasion through the continued use of a certain product.
Furthermore, earned-income generating activities are viewed as more reliable funding
sources than donations and grants (Dees, 1998). According to Dees (1998) self-funding is the
new mantra since dependency on individual donors is now being seen as a weakness (Dees,
1998).