| Analyzing the Marketing Environment 85
Chapter 3 | Analyzing the Marketing Environment 85
million worth of shoes. Retailers such as Nord-
pany will inspire people to think differently stroms, Urban Outfitters, and even Whole
found that 71 percent of consumers said that
about business. “My thinking was that Foods Market are now offering TOMS in more
despite the recession they had given just as
TOMS would show that entrepreneurs no than 400 U.S. outlets. In fact, Whole Foods
much time and money to causes they deemed
longer had to choose between earning Market is the company’s biggest customer.
worthy. Fifty-five percent of respondents also
money or making a difference in the world,” TOMS’ rapid growth is the result of pur-
indicated they would pay more for a brand if it
he says. “Business and charity or public ser- chases by caring customers who then tell the
supported a good cause.
vice don’t have to be mutually exclusive. In TOMS story to their friends. Whereas the typi-
TOMS Shoes is a great example of
fact, when they come together, they can be cal shoe company spends about 20 percent of
cause-related marketing—of “doing well by
doing good.” Mycoskie hopes that his com-
very powerful.”
sales on traditional advertising and promotion, TOMS hasn’t spent a single dollar on it. It hasn’t had to. “Ultimately, it is our customers
Sources: Quotes and other information from Tamara Schweitzer, “The Way I Work,” Inc., June 2010, pp. 112–116;
who drive our success,” says Mycoskie. “Giv-
Stacy Perman, “Making a Do-Gooder’s Business Model Work,” BusinessWeek, January 26, 2009, accessed at www
ing not only makes you feel good, but it actu-
.businessweek.com/smallbiz/content/jan2009/sb20090123_264702.htm; Blake Mycoskie, “Shoes for a Better
ally is a very good business strategy, especially Tomorrow,” presentation made March 13, 2009, accessed at www.clintonschoolspeakers.com/lecture/view/toms-
shoes-better-tomorrow; Michael Bush, “Consumers Continue to Stand by Their Causes During Downturn,” Advertising
in this day and age. Your customers become
Age, November 17, 2008, p. 4; Jessica Sambora, “How TOMS Shoes Founder Blake Mycoskie Got Started,” Fortune,
your marketers.”
March 16, 2010, accessed at http://money.cnn.com/2010/03/16/smallbusiness/toms_shoes_blake_mycoskie.fortune/
Moreover, as TOMS’ success shows, con-
index.htm; Christina Binkley, “Style—On Style: Charity Gives Shoe Brand Extra Shine,” Wall Street Journal, April 1,
sumers like to feel good. A recent global study
2010, p. D7; and information found at www.toms.com and http://friendsoftoms.org, accessed November 2010.
Cause-related marketing has become a primary form of corpo- rate giving. It lets companies “do well by doing good” by linking purchases of the company’s products or services with fund-raising for worthwhile causes or charitable organizations. Companies now sponsor dozens of cause-related marketing campaigns each year. Many are backed by large budgets and a full complement of mar- keting activities. For example, PepsiCo’s year-long Pepsi Refresh Project is awarding $20 million in grants to fund hundreds of worthwhile ideas by individuals and communities that will “re- fresh the world.” “What do you care about?” asks one Pepsi Refresh
ad. “Maybe it’s green spaces. Or educational comics. Maybe it’s teaching kids to rock out.” PepsiCo is spending millions of dollars on a full-blown multimedia campaign promoting the cause-related marketing program. 45
Cause-related marketing has stirred some controversy. Crit- ics worry that cause-related marketing is more a strategy for sell- ing than a strategy for giving—that “cause-related” marketing is really “cause-exploitative” marketing. Thus, companies using cause-related marketing might find themselves walking a fine line between increased sales and an improved image and facing charges of exploitation.
However, if handled well, cause-related marketing can greatly benefit both the company and the cause. The company gains an effective marketing tool while building a more positive public image. The charitable organization or cause gains greater visibility and important new sources of funding and support.
Cause-related marketing: The Pepsi Refresh Project is awarding
Spending on cause-related marketing in the United States sky-
$20 million in grants to fund hundreds of worthwhile ideas by
rocketed from only $120 million in 1990 to more than $1.6 billion
individuals and communities that will “refresh the world.”
in 2010. 46
Parts
» | Marketing: Creating and Capturing Customer Value 3
» | Marketing: Creating and Capturing Customer Value 11
» | Marketing: Creating and Capturing Customer Value 13
» | Marketing: Creating and Capturing Customer Value 25
» | Marketing: Creating and Capturing Customer Value 29
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 37
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 41
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 43
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 51
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 55
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 57
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 63
» | Analyzing the Marketing Environment 65
» | Analyzing the Marketing Environment 71
» | Analyzing the Marketing Environment 73
» | Analyzing the Marketing Environment 77
» | Analyzing the Marketing Environment 79
» | Analyzing the Marketing Environment 81
» | Analyzing the Marketing Environment 85
» | Analyzing the Marketing Environment 87
» | Analyzing the Marketing Environment 89
» | Managing Marketing Information to Gain Customer Insights 97
» | Managing Marketing Information to Gain Customer Insights 99
» | Managing Marketing Information to Gain Customer Insights 103
» | Managing Marketing Information to Gain Customer Insights 109
» | Managing Marketing Information to Gain Customer Insights 111
» | Managing Marketing Information to Gain Customer Insights 113
» | Managing Marketing Information to Gain Customer Insights 115
» | Managing Marketing Information to Gain Customer Insights 127
» | Managing Marketing Information to Gain Customer Insights 131
» | Consumer Markets and Consumer Buyer Behavior 133
» | Consumer Markets and Consumer Buyer Behavior 137
» | Consumer Markets and Consumer Buyer Behavior 141
» | Consumer Markets and Consumer Buyer Behavior 143
» | Consumer Markets and Consumer Buyer Behavior 159
» | Consumer Markets and Consumer Buyer Behavior 163
» | Business Markets and Business Buyer Behavior 165
» | Business Markets and Business Buyer Behavior 175
» | Business Markets and Business Buyer Behavior 179
» What is Eaton’s value proposition?
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 189
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 193
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 197
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 203
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 205
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 207
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 209
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 211
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 213
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 219
» | Products, Services, and Brands: Building Customer Value 223
» | Products, Services, and Brands: Building Customer Value 225
» | Products, Services, and Brands: Building Customer Value 229
» | Products, Services, and Brands: Building Customer Value 237
» | Products, Services, and Brands: Building Customer Value 245
» | Products, Services, and Brands: Building Customer Value 247
» | Products, Services, and Brands: Building Customer Value 249
» | Products, Services, and Brands: Building Customer Value 251
» | Products, Services, and Brands: Building Customer Value 257
» | New Product Development and Product Life-Cycle Strategies 259
» | New Product Development and Product Life-Cycle Strategies 271
» | New Product Development and Product Life-Cycle Strategies 273
» | New Product Development and Product Life-Cycle Strategies 279
» | New Product Development and Product Life-Cycle Strategies 281
» | Pricing: Understanding and Capturing Customer Value 289
» | Pricing: Understanding and Capturing Customer Value 291
» | Pricing: Understanding and Capturing Customer Value 295
» | Pricing: Understanding and Capturing Customer Value 299
» | Pricing: Understanding and Capturing Customer Value 305
» | Pricing: Understanding and Capturing Customer Value 307
» | Marketing Channels: Delivering Customer Value 339
» | Marketing Channels: Delivering Customer Value 347
» | Marketing Channels: Delivering Customer Value 351
» | Marketing Channels: Delivering Customer Value 367
» | Retailing and Wholesaling 373
» | Retailing and Wholesaling 377
» | Retailing and Wholesaling 379
» | Retailing and Wholesaling 393
» | Retailing and Wholesaling 395
» | Retailing and Wholesaling 397
» | Retailing and Wholesaling 401
» | Retailing and Wholesaling 405
» | Communicating Customer Value: Integrated Marketing Communications Strategy 407
» | Communicating Customer Value: Integrated Marketing Communications Strategy 411
» | Communicating Customer Value: Integrated Marketing Communications Strategy 413
» | Communicating Customer Value: Integrated Marketing Communications Strategy 415
» | Communicating Customer Value: Integrated Marketing Communications Strategy 429
» | Communicating Customer Value: Integrated Marketing Communications Strategy 433
» | Advertising and Public Relations 435
» | Advertising and Public Relations 439
» | Advertising and Public Relations 441
» | Advertising and Public Relations 443
» | Advertising and Public Relations 445
» | Advertising and Public Relations 447
» | Advertising and Public Relations 449
» | Advertising and Public Relations 453
» | Personal Selling and Sales Promotion 463
» | Personal Selling and Sales Promotion 469
» | Personal Selling and Sales Promotion 471
» | Personal Selling and Sales Promotion 481
» How is the sales force at Nestlé Waters structured? outsells its top competitors.
» | Direct and Online Marketing: Building Direct Customer Relationships 495
» | Direct and Online Marketing: Building Direct Customer Relationships 499
» | Direct and Online Marketing: Building Direct Customer Relationships 507
» | Direct and Online Marketing: Building Direct Customer Relationships 509
» | Direct and Online Marketing: Building Direct Customer Relationships 515
» | Direct and Online Marketing: Building Direct Customer Relationships 525
» | Creating Competitive Advantage 527
» | Creating Competitive Advantage 529
» | Creating Competitive Advantage 537
» | Creating Competitive Advantage 549
» | The Global Marketplace 551
» | The Global Marketplace 553
» | The Global Marketplace 561
» | The Global Marketplace 573
» | Sustainable Marketing: Social Responsibility and Ethics 581
» | Sustainable Marketing: Social Responsibility and Ethics 583
» | Sustainable Marketing: Social Responsibility and Ethics 587
» | Sustainable Marketing: Social Responsibility and Ethics 595
» | Sustainable Marketing: Social Responsibility and Ethics 603
» | Sustainable Marketing: Social Responsibility and Ethics 605
» | Marketing by the Numbers A21
» | Marketing by the Numbers A27
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