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A Research Report

On
“Cause-Related Marketing Practices of Some Selected
12/9/2013
Firms in Bangladesh and Their Effects on Target Market”

Supervised By
Barota Chakraborty
Lecturer, Department of
Marketing
Jahangirnagar University

Prepared By
Ashraful Islam Nishad
Class id: 1312
Exam id: 100123 Reg.
no: 29612 Course
code: Mkt-499
1st batch, Department of
Marketing Jahangirnagar
University

Date of Submission: 12th September, 2013


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Letter of Transmittal

12 September, 2013

To
Barorta Chakraborty
Department of Marketing
Jahangirnagar University
Savar, Dhaka-1342

Subject: Submission of research report

Dear Madam,

This is a great pleasure for me to submit this research report on “Cause-Related Marketing
Practices of Some Selected Firms and Their Effects on Target Market” before you as per
fulfillment of BBA program. This paper is prepared on the basis of both primary and
secondary data.

The report has been enlightening and worthwhile experience for me. It helped me a lot to learn
about how the things accomplished in practical world.

I hope that the report will satisfy the entire requirements. I would be gladly available if there
is any need for further enquiry.

Sincerely yours

----------------------
Ashraful Islam Nishad
Class id: 1312
Exam id: 100123 Reg.
no: 29612 Course
code: Mkt-499
1st batch, Department of Marketing
Jahangirnagar University

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Acknowledgement

At the very beginning I would like to express my deepest gratitude to the almighty Allah for
giving me the strength and the composure to finish the task within the scheduled time. Research/
Internship report is an essential part of BBA program. I have chosen research project for my
completion of BBA program. I have done research project on “Cause-Related Marketing
Practices of Some Selected Firms and Their Effects on Target Market”

I would like to pay my gratitude to my supervising teacher Barota Chakraborty, Lecturer,


Department of Marketing, Jahangirnagar University, who has instructed me in the right way and
given me proper guidelines for preparing this report.

So lastly I would again like to express my heartfelt thanks to my supervisor for providing the
theoretical and practical knowledge and also valuable guidelines related to my topic.

Ashraful Islam Nishad


Class id: 1312
Exam id: 100123 Reg.
no: 29612 Course
code: Mkt-499
1st batch, Department of Marketing
Jahangirnagar University

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TABLE OF CONTENTS
1 Executive summary ................................................................................................................. 7
2 Background of the Study ................................................................................................ ......... 8
2.1 Significance of the Study ................................................................................................. 8
2.2 Objective of the Research ................................................................................................ 9
Broad Objectives .................................................................................................................. 9
Specific Objectives .............................................................................................................. 9
2.3 Information need ............................................................................................................ 10
2.3.1 Secondary Information Needs................................................................................. 10
2.3.2 Primary Information Needs..................................................................................... 10
2.4 Research Methodology ................................................................................................... 10
2.5 Sources of Data: ............................................................................................................. 11
2.6 Method of Collecting Primary Data: .............................................................................. 11
2.7 Sampling Design ............................................................................................................ 11
2.7.1 Target Population .................................................................................................... 11
2.7.2 Sampling Technique ............................................................................................... 11
2.7.3 Sample Size ............................................................................................................. 11
2.8 Scope of the Research: ................................................................................................... 11
2.9 Method of Analysis ........................................................................................................ 12
2.10 Limitations of the research ............................................................................................. 12
3 Literature review .................................................................................................................... 13
3.1 Powerful marketing edge ............................................................................................... 13
3.2 Principles of cause-related marketing ............................................................................ 13
3.3 Some of the key issues to consider................................................................................. 14
3.3.1 Identifying the right issue or cause ......................................................................... 14
3.3.2 Selecting the right partner ....................................................................................... 14
3.3.3 Establishing the relationship ................................................................................... 14
4 Analysis ............................................................................................................................. .... 15
Marketer's perspective
4.1 Reasons for practicing cause-related marketing............................................................. 15
4.2 Cost benefit analysis....................................................................................................... 15
4.3 Cause related marketing practices in Bangladesh .......................................................... 15

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4.4 Cause Related Marketing policies of the organizations ................................................. 16
4.5 Contribution of Standard Chartered Bank ...................................................................... 17
4.5.1 Seeing is Believing ................................................................................................. 17
4.5.2 Friends for life......................................................................................................... 17
4.5.3 Dhaka Shishu Hospital ............................................................................................ 17
4.5.4 Visit to the orphans ................................................................................................. 17
4.5.5 Patenga Beach clean up .......................................................................................... 18
4.6 Contribution of dutch-bangla Bank limited ................................................................... 18
4.6.1 Education ................................................................................................................ 18
4.6.2 Health ...................................................................................................................... 19
4.6.3 Disaster ................................................................................................................... 20
4.6.4 Donation .................................................................................................................. 20
4.6.5 Vote for Cox’s Bazar-‘Jago Bangladesh’ ............................................................... 21
4.7 The benefits of cause-related marketing for nonprofit organizations and the associated
companies .................................................................................................................................. 21
4.8 The disadvantages of cause-related marketing for nonprofit organizations and
associated companies ................................................................................................................ 21
Customer's perspective
4.9 Customer awareness about cause-related marketing ...................................................... 22
4.9.1 Customer awareness in case of FMCG and Bank ................................................... 22
4.10 Medium of creating awareness to the customer ............................................................. 24
4.11 Acceptance level of the concept to the customer ........................................................... 25
4.12 Customer opinion on cause-related marketing ............................................................... 25
4.12.1 Customer opinion on cause-related marketing (banks) .......................................... 26
4.12.2 Customer opinion on cause-related marketing (fmcg products) ............................. 27
5 Findings ................................................................................................................................. 29
6 Recommendations ................................................................................................................. 31
7 Conclusion ............................................................................................................................. 33
8 References ............................................................................................................................. 34
9 Appendix ............................................................................................................................... 35
9.1 Questionnaire ................................................................................................................. 35
9.2 Research proposal ........................................................... Error! Bookmark not defined.

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List of Tables
Table 1: Major Associated Companies and their Non-Profit Organizations ................................ 16
Table 2: Major causes and Major supporters ................................................................................ 16
Table 3: companies contribution policies ..................................................................................... 17
Table 4: Total customer awareness about Cause related marketing ............................................. 22
Table 5: Total customer awareness about Cause related marketing (FMCG products) ............... 23
Table 6: Total customer awareness about Cause related marketing (Banks) ............................... 24
Table 7: Medium of creating awareness to the customer ............................................................. 25
Table 8: Customer opinion on cause-related marketing ............................................................... 26
Table 9: Customer opinion on cause-related marketing (Banks).................................................. 27
Table 10: Customer opinion on cause-related marketing (FMCG products) ............................... 28

List of Figures
Figure 1: Cause Related Marketing Spending of DBBL to Different Sectors (in 2012) .............. 18
Figure 2: Contribution to education sector in 2012 ...................................................................... 19
Figure 3: Contribution to education sector in 2012 ...................................................................... 19
Figure 4: Total customer awareness about Cause related marketing ............................................ 22
Figure 5: customer awareness about Cause related marketing (FMCG products) ....................... 23
Figure 6: customer awareness about Cause related marketing (Banks) ....................................... 24
Figure 7: Medium of creating awareness to the customer ............................................................ 25
Figure 8: Customer opinion on cause-related marketing .............................................................. 26
Figure 9: Customer opinion on cause-related marketing (Banks) ................................................ 27
Figure 10: Customer opinion on cause-related marketing (FMCG products) .............................. 28

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1 EXECUTIVE SUMMARY

The concept of cause related marketing is spreading rapidly in Bangladesh as well as all over the
world. It is almost a new concept in Bangladesh. A few companies in our countries are practicing
it. Cause-related marketing is defined as the public association of a for-profit company with a
non-profit organization, which affords an opportunity for for-profit companies to enhance their
corporate reputation, raise brand awareness, increase customer loyalty, build sales, and increase
press coverage as well as helps to raise money for the non-profit organization.

For this research I have selected four firms. These are Standard Chartered Bank, Dutch-Bangla
Bank Limited, Bashundhara and Square. This research is undertaken on both sides; marketer’s
perspective and consumer’s perspective. Here research elements are four companies and fifty
customers and research extent is Dhaka city.

Through this research I have enabled to find out some findings. Today customers are more alert
about the company’s activities in the society. For this reason companies are trying to involve
themselves in the various social causes to increase their positive image in the society as ell a
consumer’s mind. Some contributes fixed amount and some other’s contributions are not fixed.
Cause-Related Marketing can positively differentiate the company from its competitors and delivers
other tangible benefits. It is beneficial for both non-profit organization and for-profit organization.
Still it is not widely familiar in Bangladesh but day by day its awareness is increasing.

Cause-Related Marketing should be handled in a way that can enhance company’s image.
Become a partner with the non-profit organization, the for-profit organization should keep in
mind that the cause that they want to contribute is apropos to the non-profit partner. Otherwise it
may hamper image of the company. Poorly executed Cause-Related Marketing campaign can
backfire and damage the reputation of both partners. So, both partners must be careful about the
proper execution of Cause-Related Marketing program. Companies should be responsible to the
society for their activities and owe to environment in which they operate. But it takes more than
supporting the most happening subject to get mileage.

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2 BACKGROUND OF THE STUDY
There has been significant growth and interest in Cause Related Marketing over the past few years.
An important element of Cause Related Marketing is the level of customer awareness and
involvement. Cause Related Marketing is simply marketing with a worthy cause. Together, these
powerful alliances (non-profit and for profit companies) can successfully work together with unique
marketing tools to influence change and create better solutions. Cause related marketing is a form of
marketing that uses various strategies, tools and traditional advertising methods to change attitudes,
perceptions and behaviors as they relate to social issues. Non-profit organizations and for profit
companies form alliances to market images, services and products. People have more favorable view
of a company that contributes or sponsors a cause that they think is worthy. For instance, people are
more likely to be interested in a company that is contributing to cancer research than one that is
contributing to insect research. Cause-Related Marketing is an exciting where both business and
charity can be benefited. It also attracts new sources of funds, resources and support. It is an
innovative and potentially powerful tool to improve the lives and well-being of individuals, create
environments that support social objectives, re-orient social services to be customer driven, develop
social capital, lead to improved public policies and ultimately achieve social goals. This research
paper focuses on the practices of case related marketing of some of the selected firms and how it
affects the consumer in our country as anew marketing policy.

2.1 SIGNIFICANCE OF THE STUDY


Cause related marketing is a new form of corporate promotion based on the rationale of profit-
motivated charitable contributions. Companies use cause related marketing as a way to motivate
socially aware consumers to buy their products; the cause becomes the peg to which a
promotional program is made. This form of marketing is known to increase sales and market
share, boost employee morale, enhance corporate and brand image, and generate goodwill and
positive publicity.

While some companies point proudly to their cause related marketing program as example of
corporate philanthropy, critics point out that the company often spend more in promoting this
programs (and thereby stimulating demand for the products) then they spend on actual
contributions to the associated cause. There are also concerns that the non-profit organizations;
social mission may become lost through the commercialization of their corporate fund-raising
affiliations, and the potential donors may feel that they and the affiliated charities are being
exploited. A study demands that when corporate donor donations were small, consumers felt that
the non-profit organization was being exploited. When corporate donations were high, they felt
that the cause related marketing tie-in was beneficial. It is revealing to not that corporate
contributions to a cause related marketing program usually come from the company’s
promotional budget rather than from its philanthropic budget. Cause-related marketing is
designed to promote goodwill and to increase sells and market share, the contribution to the
cause is simply the cost of obtaining these objectives.

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When for-profit organizations undertake social marketing, it is an expression of their company’s
sense of social responsibility toward the improvement of society. However, when such
organizations undertake cause-related marketing, they do so to achieve specific commercial
objectives. The opportunity to support a worthy cause indirectly is a strong incentive for many
consumers to select the cause-related product over competing brands. Thus, in cause related
marketing, it is the consumer who displays social responsibility, not the sponsoring company. As
pointed out earlier cause-related marketing is simply a hook on which to hang a promotional
program. Social marketing is done to enhance the welfare of individuals or society without direct
benefit to a firm. In contrasts, cause-related marketing is marketing with the goal of improving
sales and corporate image while providing benefits to the cause. Companies associate with cause
to create long term relationships with their customers, building corporate brand equity that
should eventually lead to increased sales.

The foundation of cause related marketing is marketing to consumer’s values and it is effective.
Cause related marketing is often effective because it is consistent with several strongly human
values. A common thing is most cause-related marketing programs are the presentation of
problem such as breast cancer, AIDS, or pollution and action that individuals can take to help
solve the problem. It is consistent with a focus on individualism cause-related marketing
programs tend to encourage individuals to take individual actions that can contribute directly to
the solution of the problem.

In the above context it would be very useful and relevant top conduct a research aimed to
identify the practices of cause-related marketing of some selected firms in Bangladesh and its
effect on target segment.

2.2 OBJECTIVE OF THE RESEARCH

  BROAD OBJECTIVES
Broadly, the objective of the research is to identify the practices of cause-related

 marketing of some selected firms in Bangladesh and their effects on the target market.
 
SPECIFIC OBJECTIVES
Specifically the objectives will be to identify

Marketer’s perspective
  
Underlying reasons for practicing cause-related marketing of the firms
  
Cost and profit issues regarding such policy
  
Contribution of the firms to the society by cause-related marketing


The benefits of cause-related marketing for non-profit organizations and the
associated companies

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Consumer perspective
  
Awareness of the consumers in this issue
  
Consumers view on cause-related marketing
 
 The consumer’s acceptance of cause-related product

2.3 INFORMATION NEED


This report is based on both primary and secondary data. The primary data has been collected
from the respondents within the study area by using questionnaire. Besides, various published
documents in the books, journals, newspapers and magazines, and web sites will be helpful for
drawing conclusion.

2.3.1 Secondary Information Needs


  
The system of cause-related marketing
  
Importance of issues
 
The present scenario of cause-related marketing in Bangladesh

2.3.2 Primary Information Needs


  
Current practices of cause related marketing in particular business firms
  
Cost-profit issues of the firms regarding such activities
  
Customer’s attitude towards cause-related marketing
 
Behavioral classification of the consumers

2.4 RESEARCH METHODOLOGY


The research is an exploratory one. Cause related marketing is a new concept in Bangladesh.
This research considers some selected firms in our country (standard Chartered Bank, Dutch-
Bangla Bank Ltd, Square, Bashundhara Group) for evaluating the cause related marketing
activities of them. In addition, consumer’s attitude toward cause related marketing has been
taken under consideration. Analysis of the findings helps to meet the objectives of this research.
The general concept of this research has been stated into two different groups; Marketer’s
perspective and Consumer’s perspective.

Marketer’s perspective

Element: companies those are practicing cause-related marketing (standard Chartered


Bank, Dutch-Bangla Bank Ltd, Square, Bashundhara Group)
Sampling unit: Selected organizations (Four)

Extent: Metropolitan Dhaka

Consumer’s perspective

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Element: All male and female consumers that go through the consumption process of
the products offered by those firms.
Sampling unit: House hold, college and universities
Extent: Metropolitan Dhaka

2.5 SOURCES OF DATA:


Both secondary and primary are necessary for the fulfilment of this research project. Secondary
data will be collected from various published documents in related books, journals, newspaper,
magazines and websites. For getting primary data, respective personnel of the selected
organizations and the customers will be interviewed personally.

2.6 METHOD OF COLLECTING PRIMARY DATA:


For collecting primary data, depth interview method will be undertaken using both closed ended
and open-ended structured questionnaire. The questionnaire will be administered in personal
interview with respective personnel of the organizations and the consumers.

2.7 SAMPLING DESIGN


2.7.1 Target Population
All the firms practicing Cause Related Marketing program and current & potential consumers of
their offered goods are the target population. From the marketer’s perspective, the firms that
practice cause-related marketing are the sample elements and sampling unit is the firms selected
among them. On the other hand, male and female consumers that go through the consumption
process of the products offered by those firms are the sample element from the consumer’s
perspective.

2.7.2 Sampling Technique


The non-probability convenience sampling technique will be used for the sampling purpose of
consumers and non-probability judgmental sampling will be taken for the marketers.

2.7.3 Sample Size


Here for marketer’s perspective under non-probability judgmental sampling technique 4 (four)
firms will be taken, on the other hand, for consumer’s perspective under convenience sampling
technique conveniently 50 (fifty) consumers will be taken as sample size for all firms.

2.8 SCOPE OF THE RESEARCH:


The research work will be limited into identifying the practices of cause-related marketing of
some selected firms in Bangladesh and their effects on customers (in terms of their purchase).

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2.9 METHOD OF ANALYSIS
Collected data or information will be analyzed on the basis of the specific objectives. For this
criterion, analysis will be segmented into two parts as data analysis of the firms and data analysis
of the consumers and a conclusion will be drawn combining those two analysis. Data analysis of
the firms will comprise the cost and profit analysis, benefits, contribution to the society regarding
cause-related marketing. On the other hand, data analysis of the consumers will consist of
consumer’s awareness, reasons for purchasing and buying behavior regarding cause-related
marketing. This analysis technique will help to find out the practice of the cause-related
marketing of the firms and in addition, its effect on the consumer’s attitude, thinking and buying
behavior what is the major objective of this research.

2.10 LIMITATIONS OF THE RESEARCH



 Lack of comprehension of the respondents is a major limitation. As a very new concept  in
Bangladesh most of the respondents were needed to be informed of the situation first.

  on the overall business area of Bangladesh for which the scope
The research don’t focus
might seem to narrow.

  regarding their practice of cause-
Organization might provide with misleading information
related marketing practice for increasing their image.
 
Consumers also might provide with false information for legal and prestigious issues.
 
Time and budgetary constraints of the researcher is another major limitation of this research.

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3 LITERATURE REVIEW

3.1 POWERFUL MARKETING EDGE


Cause-related marketing refers to a commercial activity in which companies and nonprofit
organizations form alliances to market an image, product or service for mutual benefit (Kotler,
1999). Some companies also extend their relationship with an organization or a cause beyond
marketing and integrating it with other company activities; such as community involvement,
employee volunteerism or corporate philanthropy (Belal, 2000). Cause-related marketing
campaigns vary in their scope and design, the types of nonprofit partners, and the nature of the
relationships between companies and their marketing partners. In the most common type of
relationship, a company might donate a portion of each purchase made by its customers during a
specific period of time to the nonprofit entity. However, there are several variations on this
theme and not all cause-related marketing campaigns channel money to nonprofits; some engage
principally in educational or awareness-building activities.

Cause-related marketing can become a cornerstone of a company’s marketing plan. Cause-related


marketing activities should highlight the company’s reputation within its target market (Rana,
2012). Cause-related marketing can positively differentiate the company from its competitors
and provide an edge that delivers other tangible benefits, including:
  
Increased sales
  
Increased visibility
  
Increased customer loyalty
  
Enhanced company image
 
Positive media coverage

By choosing a cause consumers are passionate about, cause-related marketing is emotionally


fulfilling. It’s a way to merge the profit center with “passion center” and build a business that
mirrors the personal values, beliefs and integrity. If the cause also resonates with target market,
the activities will generate tremendous goodwill and media attention can be its side effect.

3.2 PRINCIPLES OF CAUSE-RELATED MARKETING


In general, cause-related marketing efforts are guided by the same ethical standards as all other
marketing and advertising activities. A standard of cause-related marketing was published in
1998 in England by Business in the community which is called the key principles of cause-
related marketing. The principles include:
 Integrity
 Transparency

 Sincerity

 
Mutual respect

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 Partnership
 
 Mutual benefit

3.3 SOME OF THE KEY ISSUES TO CONSIDER


Anderson, A., R. & Kotler, P. (2005) identified some key issues in the book of Strategic
Marketing for Nonprofit Organizations.

3.3.1 Identifying the right issue or cause


While any issue or cause may be suitable for establishing a cause-related marketing relationship,
many companies seek to find an issue that aligns with the company’s product or services, its market
(or potential market) or its geographic community. It also may be worth considering how a cause
or issue fits with a company’s strategic business goals.

3.3.2 Selecting the right partner


Selecting the appropriate nonprofit partner can be as critical to the success of a cause-related
marketing program as the marketing effort itself. It is important that both the company and the
nonprofit fully understand each other’s goals and objectives, as well as their mutual commitment
to the relationship.

3.3.3 Establishing the relationship


The company and the nonprofit organization have a clear understanding of the nature of the
relationship and the specifics of the marketing campaign.

While a good cause related marketing program can bring profit, image to a for-profit company at
the same time a poorly executed cause-related marketing program can jeopardize the work of the
charity and the reputations of all the partners. In order to be successful, cause-related marketing
programs require planning, preparation, commitment, monitoring and follow through.

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4 ANALYSIS
Marketer’s perspective

4.1 REASONS FOR PRACTICING CAUSE-RELATED MARKETING


Today business environment is much more competitive. Customers favor the company if company
favor the customers. Nonprofit organizations always face the need to raise revenue. The individual in
a society is constantly asked for donations to support a plethora of causes. Thus, this situation can in
turn lead to potential donors reducing their commitment to charitable causes. People feel that they
have given enough, or are just basically tired of the constant stream of requests to support a vast
range of causes. An individual can only make, in most cases, a small contribution to a cause. Yet, by
tying together the forces of business, selling on the back of a product that customers see as one that
they would buy, and the power of advertising, then each person’s small contribution can have a
major impact on the money that a charity can raise. Therefore, charities can benefit from these
liaisons with commercial interests. By purchasing the product several times consumer can donate on
more than one occasion. Thus, charities can get more by the contribution of each single
consumers/donors. And customers feel better by contributing this way.

4.2 COST BENEFIT ANALYSIS


Cause-related marketing can become a cornerstone of a company’s marketing plan. Cause
Related Marketing activities should highlight the company's reputation within its target market.
Cause-related marketing can positively differentiate the company from its competitors and
provide an edge that delivers other tangible benefits, including:
  Increased sales
  
Increased visibility
  
Increased customer loyalty
 
Enhanced company image

Cause-related marketing is the combinations of the above benefits. But our survey found that the
four companies do not agree with this definition. The organizations differ with the first benefit
that cause-related marketing increases sales. However, the organizations do agree with the rest of
the four benefits, e.g., increased visibility, increased customer loyalty, enhanced company image,
enhanced company image. So here the issues of profit become pale. The organizations are
practicing cause-related marketing because of the social responsibility. They are earning money
and feeling to contribute some of the money to the public.

4.3 CAUSE RELATED MARKETING PRACTICES IN BANGLADESH


Many different organizations are practicing Cause Related Marketing in our country. Among them
some major organizations like Standard Chartered Bank, Dutch-Bangla Bank Ltd., Bashundhara

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group, and square are elaborately practicing it and contributing big amount each and every
months for some reasonable causes. These companies started cause-related marketing practice a
few years ago. Bashundhara started it in the year 2000, Square started it in 2003. These
organizations do not take any third party advice. Among the four only Dutch-Bangla Bank Ltd.,
has its own foundation named “Dutch-Bangla Foundation”. By this foundation Dutch-Bangla
Bank Ltd. Donate money to the distress people. On the other hand the rest of the organizations
donate money by different non-profit organizations. For example-

Associated companies Non-profit organizations


Standard Chartered Bank SSI, Trust for Development, Vision 2020, Action Aid,
Ashar Alo
Dutch-Bangla Bank Ltd. Dutch-Bangla foundation
Square Acid Survivors Foundation (ASF)
Bashundhara Group Shandhani
Table 1: Major Associated Companies and their Non-Profit Organizations

The following table is showing the major cases and the major supporters companies in our country

Cause Supporting Companies


Acid survivors Dutch-Bangla Bank Ltd, Square
Remove avoidable blindness Standard Chartered Bank, Bashundhara Group
School cricket program Standard Chartered Bank
Student scholarship Standard Chartered Bank, Dutch-Bangla Bank
Ltd
AIDS/HIV awareness Standard Chartered Bank
Table 2: Major causes and Major supporters

4.4 CAUSE RELATED MARKETING POLICIES OF THE ORGANIZATIONS


Different organizations have different cause related marketing practice policies. Standard
Chartered Bank and Dutch-Bangla Bank Ltd contribute money from the part of their profit. This
is not fixed amount that has to be provided for each month or year. They contribute it based on
the situation. For Dutch-Bangla Bank Ltd they contribute it through their foundation and for
Standard Chartered Bank they contribute it through their different aligned organizations.
Different times’ different aligned organizations submit their estimation for helping the particular
distress people. More over Standard Chartered Bank has different programs through cause
related marketing which has performed in a planned and organized way. For the rest two FMCG
companies, Square contributes Taka 1 per pack of Senora sanitary napkin in different size and
price & Bashundhara contributes Taka 1 per box tissue in different size and price.

Companies Contributions
Standard Chartered Bank Not fixed

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Dutch-Bangla Bank Ltd Not fixed
Square Fixed Taka 1 per pack of senora sanitary
napkin
Bashundhara Fixed Taka 1 per box of tissue
Table 3: companies contribution policies

4.5 CONTRIBUTION OF STANDARD CHARTERED BANK


Standard Chartered Bank has a big contribution to the community of our country. They
contributed huge amount of money in our country up to 2012.

4.5.1 Seeing is Believing


Standard Chartered Bank has a project “Seeing is Believing”. Which is to remove avoidable
blindness. Under this project they have a target of restoring the sight for 28,000 people. They have a
standard chartered operating theatre and children’s ward at the Islamia Eye Hospital in Dhaka.

4.5.2 Friends for life


During community week, employees at Standard Chartered Bank Bangladesh held a series of
events to entertain children at the Young Learners’ Centre- a UK government initiative to help
children expand their horizons. Activities included storytelling, a drawing competition, essay
writing event, as well as learning about environment issues. The children were given the title
“Friends of the Green” and were each given a small plant amongst other gifts, before watching
films Stuart Little and George of the Jungle.

4.5.3 Dhaka Shishu Hospital


Dhaka Shishu Hospital is a Government aided private hospital for children. However, most of the
patients are unprivileged children, who are entitled to free medical care. Standard Chartered sponsors
10 beds at the hospital through SAARC Women’s association. During community week a team of 60
employees went to the hospital to decorate wards and corridors with balloons and ribbons. They also
distributed fruits, biscuits, toys and old clothes to the children. Dhaka Shishu Hospital is the only
hospital in Bangladesh for unprivileged children; so some patients come from far away. During the
visit, the hospital faced a difficult issue when it could not afford the cost of medicine to help a young
child with an infectious disease. Fortunately, the bank was able to cover the cost. At the end of the
program, the bank also donated some medical machinery. Employees in Bangladesh have also helped
out at other hospitals, including the Islamia Eye Hospital in Dhaka, Ma-O-Shishu Hospital in
Chittagong and Centre for the Rehabilitation of the Paralyzed.

4.5.4 Visit to the orphans


On 25 September 2003, a team of 25 employees went the Sir Salimullah Muslim orphanage to visit
some 400 childen, aged between 4 and 20. Staff planted trees and cleaned a number of rooms at the
orphanage. Employees also had lunch with the children, before presenting the orphanage with tree
sewing machines and a large amount of sports equipment. Bangladesh employees also

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visited a number of other orphanages, including Shishu Polli plus Orphanage in Sreepur, Kadam
Mubarrak Orphanage in Chittagong and Shishu Paribar Orphanage in Shylet.

4.5.5 Patenga Beach clean up


Staff from the Chittagong branch of Standard Chartered participated in a clean-up of Patenga
beach front. As a reminder to visitors, employees erected a banner reading: “Our responsibility-
let us keep it clean”

4.6 CONTRIBUTION OF DUTCH-BANGLA BANK LIMITED


Dutch-Bangla Bank now performs their cause related marketing in some selected sector. Its have
a separate foundation called Dutch-Bangla Bank foundation. The bank donates mainly towards
social awareness programs, medical and educational fields. DBBL also maintains the largest
scholarship program in Bangladesh whereby college/university education tuition and expenses
are fully paid for unconditionally by the bank. But they can expand their business and broaden
their sector of cause related marketing

Cause Related Marketing Spending of DBBL to Different Sectors (in 2012)

Contribution of DBBL to different sectors in


2012 ( Taka in million)
Miscellaneous
sector 24%
Education
40%
Culture and sports
4%
Disaster
10%
Health
22%
Education Health Disaster Culture and sports Miscellaneous sector

Figure 1: Cause Related Marketing Spending of DBBL to Different Sectors (in 2012)

4.6.1 Education
Education is a pre-requisite for the overall development of the country. Keeping this view in
mind, Dutch-Bangla Bank Limited has been giving priority to the education sector. Awarding
scholarship and fellowship to meritorious students, helping development of infrastructural
facilities, providing essential educational equipment etc. are some of the aspects included in the
program. In 2012 DBBL spends Tk. 50.16million in education sector.

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Contribution to Education sector in 2012
1%
1%
7%
27%

64%

Fellowship Education infrustructural development


providing educational equipment Ganit utshob
Others

Figure 2: Contribution to education sector in 2012

4.6.2 Health
Health is one of the prime parameters to achieve Millennium Development Goal (MDGH). Health
needs are increasing day by day due to rapid growth of population. Dutch Bangla Bank has identified
health care as a priority sector and Helps create better health care facilities at a cheaper cost for
disadvantaged Population. In 2012 DBBL spent Tk. 27.02 million in health sector. In this connection
Dutch Bangla Bank extended its support towards the following projects:

Contribution to Health sector in 2012

16% 10%
7%
4%

63%

Cleft lip operation Cataract operation


V.V.F operation Health infrustructure development
Donation for medical treatment

Figure 3: Contribution to education sector in 2012

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4.6.3 Disaster

4.6.3.1 Support Program to the Victim of Natural Calamities


Dutch-Bangla Bank Limited stands by the distressed people at the time when natural calamities
like cyclone, flood, tornado, landslide, river erosion, devastating fire etc. occur. DBBL provides
support to the affected people in cash and kind for their rehabilitation. In 2010 DBBL donate
Tk.12.5 million in this sector. The donation in kind includes food, medicine, water purifying
tablets, blankets, GCI sheets etc. contribution of DBBL in this sector given bellow:

4.6.4 Donation

4.6.4.1 Donation to Liberation War Museum


Liberation War Museum (Muktijuddha Jadughar) is an achievement of glorious liberation war.
The museum authority has taken a project to rebuild and modernize it with all latest
technological facilities for collecting, preserving and displaying the historical documents. DBBL
appreciates noble initiative and provided financial assistance Taka 5,000,000 (Taka five million)
“Muktijuddha Jadughar Nirman” project. Donation to the family person killed by Afghan terrorists
Donation Taka 5, 00,000 was made to the window of Kazi Altaf Hossain, a Bangladeshi engineer
who went to Afghanistan for earning his livelihood. He was abducted and gunned down by
Afghan terrorists in December 2010.

4.6.4.2 Donation to a family of a victim killed for resisting eve teasing


Donation Taka 10, 00,000 to the widow of Mizanur Rashid, a college teacher who was killed by
stalker for trying to resist eve teasing at Lokmanpur, Natore.

4.6.4.3 Donating pick up van for Police


DBBL donated a double cabin pick up van at cost of Taka 2, 00,000 to Dhaka Metropolitan
Police for improving its transport facilities in performing duties efficiently and serving the
people. Dutch-Bangla Bank Limited has donated a double cabin Pick-up Van to the DMP
commissioner to quick mobility in performing their work.

4.6.4.4 Dutch-Bangla Bank distributes blanket


Dutch-Bangla Bank Ltd. has taken up a program to distribute 20,000 blankets worth Tk. 44 lac
among the poor and needy villagers in Lalmonirhat, Gaibandha, Rangpur, Kurigram, Nilphamari
and Pabna districts.

4.6.4.5 Dutch-Bangla donation for Cancer Hospital


Dutch-Bangla donate for Cancer Hospital Tk. 4 corer. Dutch-Bangla Bank authorities decided to
donate Tk. 4 corer for construction of the first floor of the proposed Ahsania Mission Cancer
Hospital (AMCH) to be established by Dhaka Ahsania Mission at Uttara in the city.

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4.6.4.6 DBBL has donated two modern ambulances to Anjuman Mufidul Islam
Dutch-Bangla Bank Limited (DBBL) has donated two modern ambulances imported from Japan
to Anjuman Mufidul Islam.

4.6.5 Vote for Cox’s Bazar-‘Jago Bangladesh’


A two day Long campaign namely -‘Jago Bangladesh’ was hold during the 27-28 march, 2009
with a view to mobilizing vote for Cox’s Bazar sea beach to ascertain the position in the seven
wonders of the nature.

4.7 THE BENEFITS OF CAUSE-RELATED MARKETING FOR


NONPROFIT ORGANIZATIONS AND THE ASSOCIATED
COMPANIES
The important benefit for the non-profit organization is that they get the necessary financial
resources. . In some cases they may get the volunteers from the company for the cause.
Sometimes this association may bring substantial managerial assistance and new managerial
practices within the organization dedicated to the cause. This association may create a larger
presence in the market for the cause and thus be able to generate more consumer-based
donations. It may also create more awareness for the issue involved, which is especially
important in social marketing activities in which the nonprofit organizations are trying to
motivate individuals to modify their behavior like in case of cruelty against animals or some
environmental issues or something like this. This association also brings some benefit for the
companies as this creates more awareness about the company and obviously results in more sales
for the company. The change in image can also sometimes be used to counter negative publicity.
In comparison to normal advertising this type of publicity may create more loyal customers. This
association also results in higher employee morale as the employees also start identifying
themselves with the cause and take pride in the company’s policies.

4.8 THE DISADVANTAGES OF CAUSE-RELATED MARKETING FOR


NONPROFIT ORGANIZATIONS AND ASSOCIATED COMPANIES
The association between the Company and the non-profit organization may render the organization
dependent on the company. Cause-related marketing could also compromise the cause and exploit
the audience. Individual donors may perceive that some causes no longer need assistance because of
exaggerated corporate support and may shift their individual support to other worthy causes. This can
also lead to one more potential problem and that is shifting a cause’s activities and direction. It may
result in socially important issues being discounted or not considered if these issues cannot attract
funding. In case of some controversy, consumers may become skeptical of cause-related marketing
programs and might also believe that the cause was a willing participant, which would result in the
cause losing financial support from donors as well as damage its image. In case of the companies, the
negative publicity can also result in the loss of the consumers as they may think that the company is
trying to exploit the cause. To make cause-related marketing a

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success each partner should respect the other’s objectives and there should be some degree of
leveraging ability on both sides.

Customer’s perspective

4.9 CUSTOMER AWARENESS ABOUT CAUSE-RELATED


MARKETING
The survey has been conducted on four organizations Standard Chartered Bank, Dutch Bangla
Bank Ltd., Bashundhara Group, and Square respectively. The customer survey found that 60% of
total customers are aware about the cause-related marketing practices of the organizations on the
other hand 40% of the customers are not aware about the cause-related marketing practices. Not
too long cause-related marketing policy is practicing in our country. The data shows that people
are not that much conscious about the cause-related marketing. It can be said that the
organizations are practicing it very recently and it is confined in some big companies.

Total customer awerness

40%

60%

YES N0

Figure 4: Total customer awareness about Cause related marketing

Awareness about cause-related Number of respondents Total


marketing
Yes 30 50
No 20
Table 4: Total customer awareness about Cause related marketing

4.9.1 Customer awareness in case of FMCG and Bank

4.9.1.1 Customer awareness in case of FMCG product


The survey has been conducted on two FMCG production organization and two Banks. Here the
survey found that 65% of the customer of FMCG product consumer is not aware about the cause-

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related marketing activities of their particular product purchase. They came to know about the
company’s contribution to the particular causes after purchasing of that particular product. 35% of
the total customer is known about the cause-related marketing activates. Among them most of the
customers came to know about the activities by different medias such as Electronic media, friends
and very few customers are known by the company newsletter, Newspapers and magazines.

Customer awareness abot Cause -related


Marketing
(FMCG products)

35%

65%

Yes No

Figure 5: customer awareness about Cause related marketing (FMCG products)

Awareness about cause-related marketing Number of respondents Total


Yes 13 20
No 7

Table 5: Total customer awareness about Cause related marketing (FMCG products)

4.9.1.2 Customer awareness in case of Bank


Here for Banks ten (30) clients have been surveyed among the customers eight (17) of them said
“yes”. They are known about cause-related marketing operations of their Bank. The customers
were selected arbitrarily. So here 57% customers of Banks are known about the cause-related
marketing activities of the particular Bank. And rest of the 43% customers are not aware of the
cause related marketing.

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Customer awareness about Cause -related
Marketing (Banks)

43%

57%

Yes No

Awareness about cause-related marketing Number of respondents Total


Yes 17 30
No 13
Figure 6: customer awareness about Cause related marketing (Banks)

Table 6: Total customer awareness about Cause related marketing (Banks)

4.10 MEDIUM OF CREATING AWARENESS TO THE CUSTOMER


As cause-related marketing is very new in our country, it is interesting to know how customer
got known about cause-related marketing. The survey found that customer came to know about
the cause-related marketing by different media. Here the graph below shows that most of the
customer knows about the electronic media which is 38% of the total. Then comes the media of
friends which has been occurred by the word of mouth. This is interesting that a major part of the
customer knew about the cause-related marketing after purchasing the product; here form the
graph it is seen that 35% consumer knows about cause-related marketing by friends‟ media.
Then gradually 15% by Newspaper or magazine, 4% by company news latter and 8% by others.

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Medium of creating awareness to the customer
60%
48%
50%

40%

30% 26%

20%
12% 10%
10% 4%
0%
Electronic Media
Newspaper, Company
(TV, Radio, Friends Others
Magazine newsletter
Website)
Series 1 48% 26% 4% 12% 10%
Column1
Column2

Figure 7: Medium of creating awareness to the customer

Medium Number of Respondent Total


Electronic Media (TV, Radio, Website) 24
Newspaper, Magazine 13
Company newsletter 2 50
Friends 6
Others 5
Table 7: Medium of creating awareness to the customer

4.11 ACCEPTANCE LEVEL OF THE CONCEPT TO THE CUSTOMER


As a developing country Cause-related marketing is a new concept in our country. A major
portion of consumer in our country is not very much aware as the western consumers are. But
this scenario is changing day by day. Companies are showing variations of products and
consequently the question of quality is coming to the front. Consumes are getting conscious day
by day. Though consumers are not very much aware about cause-related marketing, survey
found that most of them are appreciating it as they are willing to or have a deep sense of helping
the distress people; suppose Acid burned or to blind people which are the major issues of the
cause-related marketing practicing companies in our country. So consumers are accepting lively
the cause-related marketing practices in our country. Companies are now very much interested
how to make customer aware about their cause-related marketing program.

4.12 CUSTOMER OPINION ON CAUSE-RELATED MARKETING


Whether Cause-related marketing is good for customer or not is a controversial one. But through
our survey we have tried to find the actual thought of customers. Here on the perspective of view

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point the survey found that 70% of the customers are agree that cause-related marketing is a
good policy and by this policy they (customer) got the opportunities to help the distress people,
on the other hand 30% customer thought or feel doubt about the cause-related marketing. They
are not clear about the total policy or activities, they raise the question whether this is a good
policy or not. Companies could boost their sales by showing the image by taking brand loyalty of
the customer. Through the cause-related marketing companies are trying to create brand loyalty
but most of the cases this contribution is beneficial for the customer as well as the company.

Customer opinoion about Cause-related Marketing

30%

70%

Good policy Feel doubt

Figure 8: Customer opinion on cause-related marketing

Customer opinion Number of respondents Total


Good policy 35 50
Feel doubt 15

Table 8: Customer opinion on cause-related marketing

4.12.1 CUSTOMER OPINION ON CAUSE-RELATED MARKETING (BANKS)


Through our survey we have found that Cause-related Marketing is creating loyalty to the
customer. Customer who once comes to know about this operation is continuing their purchase
and is making word of mouth to others about the Cause-related Marketing operation. They are
feeling good and proud having the opportunities helping to the distress people. In our survey83%
of the Banks customer thinks that the organization is doing a good practice contributing a part of
their money to the distress people. And rest of the 17% customer feels doubt the Cause-related
Marketing practice of the organization.

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Customer opinion on Cause -related Marketin
(Banks)

17%

83%

Good policy Feel doubt

Figure 9: Customer opinion on cause-related marketing (Banks)

Customer opinion Number of respondents Total


Good policy 25 30
Feel doubt 5
Table 9: Customer opinion on cause-related marketing (Banks)

Companies have some major issues and under it they are operating some other operations which is
not visible to all kinds of people. The major cause-related marketing issue of Standard chartered
Bank in Bangladesh is to remove the blindness and they have different programs on “Seeing is
Believing” project which is elaborately visible, beside this they are contributing in different
sectors suppose, School cricket program, various cultural programs, scholarship for the
outstanding results, young learners association etc.

4.12.2 CUSTOMER OPINION ON CAUSE-RELATED MARKETING (FMCG Products)


In our survey we observed two FMCG products companies and we finds that 50% of FMCG
product consumers think that the activities of Cause-related Marketing is good and the
companies is are doing a good job contributing to the distress people. But rest of the 50%
customer think that it is not good for them at all. They tried to express their opinion in a way that
companies are making profit by showing philanthropy and attacking the customer’s sense of
helping the distress people in a way that make profit for the company.

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Customer's opinion on Cause -related Marketing
(FMCG products)

50% 50%

Good policy Feel doubt

Figure 10: Customer opinion on cause-related marketing (FMCG products)

Customer opinion Number of respondents Total


Good policy 10 20
Feel doubt 10
Table 10: Customer opinion on cause-related marketing (FMCG products)

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5 FINDINGS

Now customers are not only concentrate on product but also consider the company how
  to support various causes by accumulating
they treat with them. So, companies are trying
all donations from every single customer.

 Standard Chartered Bank, Dutch Bangla Bank Ltd., Square, Bashundhara started Cause-
 Related Marketing practice a few years ago. None of them don’t take any third party advice. 
Only Dutch-Bangla Bank has its own foundation and the other are associated with other

 non-profit organizations. Every organization is associated with different causes.



Different organizations have different Cause-Related Marketing policies. Standard
Chartered Bank and Dutch-Bangla Bank Ltd contribute money from their profit. This not
fixed. They contribute based on the situation. On the other hand, the other two
organizations are practicing the
fixed amount policy. They contribute a fixed amount of
money from every sale product.



Standard Chartered Bank is contributing various causes; such as- seeing is believing, friends
 for life, Dhaka shishu hospital, visit to the orphan, Patenga beach clean-up etc.



Dutch-Bangla Bank Ltd contributes various causes; such as- education, health, disaster,
donate to liberation war museum, donate to a family of a victim killed for resisting eve
teasing, donated money to buy pick up van for police. They also distribute blanket to the

poor, donate to the cancer hospital, two ambulance to Anjuman Mufidul Islam and
reaised vote Cox’s Bazar “Jago Bangladesh”.


Squaredonates 1 taka per pack of sanora sanitary napkin to the Acid Survivors Foundation
 (ASF).

 
Bashundhara donates 1 taka per box of tissue to the Shandhani.


Cause-Related Marketing can positively differentiate the company from its competitors
and provide an edge that delivers other tangible benefits; including increased sales,
increased visibility, increased customer loyalty,and enhanced company image. But some
firms are not agree to the increased sales issue.

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Cause-Related Marketing is beneficial to both non-profit organization and for-profit
organization. The former gets the financial resources and volunteers from the company &
the later gets the opportunity for creating more customer awareness about the company
that leads to increased sales.


To be more successful in Cause-Related Marketing both non-profit partner and for-profit
partner should respect  the others objectives and there should be some degree of
 leveraging on both sides.



Now a day’s most of the customer are aware about Cause-Related Marketing in
Bangladesh. Day by day it is increasing. Customers are getting aware about Cause-
Related Marketing by various media; such as- electronic media, magazines,  company
newsletter, friends etc. Among them electronic media has greater influence.


Though customers are not very much aware about the Cause-Related Marketing, through
our survey we found, they are willing  to or have a deep sense of helping the distress
 people and contribute any social causes.




Most of the customers (70%) are agree with that Cause-Related Marketing is a good policy.
The other raised the question whether it is good or bad.

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6 RECOMMENDATIONS

Cause-Related Marketing is initiated to increase brand loyalty, customer satisfaction
and for community involvement. So, it should be practiced in a way that don’t raise any
question to the customers mind.


If the underlying reason of Cause-Related Marketing is profit making, it may not be
successful. It should create a sense in the
customer’s mid that it is only for community
 support, otherwise it may not be fruitful.



There are many other causes in our society that should be contributed by the for-profit
organizations with the non-profit partner.


Become a partner with the non-profit organization, the for-profit organization should
keep in mind that the cause that they want to contribute is
apropos to the non-profit
 partner. Otherwise it may hamper image of the company.



Cause-Related Marketing practicing companies should give more effort to increase

awareness about Cause-Related Marketing among the customer, because still it is
not widely accepted.


All customers are not positive about Cause-Related Marketing. So, companies should
undertake some events to make it more positive. Such as- arranging seminars, telecast
advertisements, provide leaflet
 etc. that will increase customer’s acceptance of
 Cause-Related Marketing.



Poorly executed Cause-Related Marketing campaign can backfire and damage the
be careful about the proper
reputation of both partners. So, both partners must
execution of Cause-Related Marketing program.


Now a day’s consumers are very quick to identify any imbalance between the business  and
 the cause it supports. So. Both organizations should concentrate on customer issue.



Cause-Related Marketing is the issue of obligation and commitment to society beyond
business that has risen to prominence among management circles as well as the wider 
public; it is still a promising subject among stakeholder. So, companies need to be

31 | P a g e
responsible and accountable to the stakeholder in society; such as- their local
communities, their employees, or non-profit organization.


Companies should be responsible to the society for their activities and owe to
environment in which they operate.But it takes more than supporting the most
happening subject to get mileage.

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7 CONCLUSION
In recent times, cause-related marketing has gained lot of importance among companies because of
its long-term benefits. It is already gaining wide acceptance with businesses, consumers, charities
and causes. This enthusiasm is easy to understand. Cause Related Marketing is a two way street, both
sides, business and the community, contribute and both sides benefit. Cause Related Marketing has
enormous potential to make a significant difference; this potential is currently underestimated. Well-
implemented and communicated Cause Related Marketing programs have the potential to bring
enormous rewards to all parties in the partnership. A poorly executed CRM campaign can backfire
and damage the reputation of the partner organizations and can harm the work of the charity or cause
involved. This is in no one’s interest. Consumers are quick to identify any imbalance between the
business and the cause it supports. Cause-related marketing is the issue of obligation and
commitment to society beyond business that has risen to prominence among management circles as
well as the wider public; it is still a promising subject among stakeholders. Companies need to be
responsible and accountable to other stakeholders in society such as their local communities, their
employees, or nonprofit organizations. The term corporate social responsibility or cause related
marketing is generally used to express the idea that companies have obligations that extend beyond
shareholders. Companies should be responsible to the society for their activities and owe to
environment in which they operate. But it takes more than supporting the most happening subject to
get mileage. Identifying the right cause based on inner values and common goals can bring about the
best results both internally with employees and also externally with stakeholders. Creating brand
equity is the most powerful weapon in a company’s armor to beat the competition. In the fiercely
competitive market place of today where customer and social expectations are changing rapidly
requiring constant innovation of new ideas, products and services, strategy and social responsibility
provide the shortest route to an organization’s success.

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8 REFERENCES

Andreasen, A. R., & Kotler, P. (2005). Strategic Marketing for Nonpropfit Organizations. New
Delhi:
Prentice Hall of India.
Schiffman, L. G., & Kanuk, L. L. (2007). Consumer Behavior. New Delhi: Pearson
Prentice Hall.
Bovee, C.L., & Thill, J.V. (1992). Marketing. New Delhi: McGraw-Hill Inc.
Kotler, P. (1999). Marketing Management. New Delhi: Millennium Edition.
Malhotra, N. K., & Dash, S. (2010). Marketing Research (An Applied Orientation). New Delhi:
Dorling Kindersley.
Rana, M. M., Kalam, A., & Halimuzzaman, M. (2012). Corporate Social Responsibility
of Dutch-Bangla
Bank Limited: A Case Study. Bangladesh Research Publications Journal, 241-247.
Belal, A. T. (2001). A Study of Corporate Social Disclosers in Bangladesh. Management
Auditing Journal, 274-289.
Blowfield, M., Frynas, J, G. (2005). Setting New Agenda: Critical Perspective on Corporate
Social Responsibility in the Developing Country. International Affairs, 499-513.
Friedman, M. (1970). The Social Responsibility of Business to Increase Its Profit. The New
York Times Magazine, 122-126

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9 APPENDIX

9.1 QUESTIONNAIRE
Questionnaire for companies
“Cause-Related Marketing Practices of some selected firms in Bangladesh
and their effects on target market”
Serial No……
Dear Sir/Madam
I’m a student of department of marketing, Jahangirnagar University, conducting a survey on the
following issue: “Cause Related Marketing practices of some selected firms in Bangladesh and
their effects on target segments”. Your valuable response will help me in pursuing my research. I
hereby ensure you that all the information will be kept confidential and will be used for academic
purpose only.
N.B Please put a tick mark (√) before your answer(s)
1. Name: …………………………………………………………………………………………
2. Gender:
Male Female

3. Company Name:
Standard Chartered Bank Bashundhara Group
Dutch-Bangla Bank Ltd. Square
4. Designation: ……………………………………………………………………………………
5. Do you have any cause-related marketing program in your organization?
Yes No

If “yes”, then what is/are cause/s. please identify


………………………………………………………………………………………………………
6. What type of cause-related marketing program do you have? Please specify
………………………………………………………………………………………………………
7. Why do you think cause-related marketing is so important? Please briefly describe
………………………………………………………………………………………………………

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8. When have you launched cause-related program in your organization?
………………………………………………………………………………………………………
9. Tell us briefly about the cause-related marketing policies in your organization.
………………………………………………………………………………………………………
………………………………………………………………………………………………………

10. Please identify the names of your cause-related marketing partners.


I. ……………………………………
II.……………………………………
III.……………………………………
11. do you think stakeholders should be informed the amounts of donation and cause-related
partners?
Yes No

If “No” then why? Please describe


………………………………………………………………………………………………………
12. Whether the “annual report” of your organization reflects the cause-related marketing?
Yes No

If “Yes” then please write down the statement as stated in the annual report.
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………

13. Does your organization seek any 3rd party cause-related marketing advice?
Yes No

If “yes” then from where? Please specify


………………………………………………………………………………………………………
14. Do you have any cause-related marketing educational program for the employees?
Yes No

If “Yes” then please specify the program name


………………………………………………………………………………………………………

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15. Do you have any cause-related marketing website, cause-related marketing newsletter
or specification of Cause-related marketing activities in any of your promotional materials?
Yes No

16. What type of benefits/values cause-related marketing added to the company? Please put
tick mark
Increased sales Increased customer loyalty
Increased visibility Increased corporate image
Increased visibility Positive media coverage
17. Please tell us about the sales figure whether it increased or not in the cause-related marketing
program launching year.
………………………………………………………………………………………………………

18. Do you think whether cause-related marketing programs help in brand advertising?
Yes No

If “Yes” then how?


………………………………………………………………………………………………………
……………………………................................................................................................................

19. Do you face any sort of “agency problem” for undertaking cause-related marketing
activities?
Yes No

If “Yes” then how you manage the problem? Please briefly describe
………………………………………………………………………………………………………
……….……………………………………………………………………………………………

Thank you for your cooperation

37 | P a g e
Questionnaire for customer
“Cause-Related Marketing Practices of some selected firms in Bangladesh
and their effects on target market”
Serial No……
Dear Sir/Madam:
I’m a student of department of marketing, Jahangirnagar University, conducting a survey on the
following issue: “Cause Related Marketing practices of some selected firms in Bangladesh and
their effects on target segments”. Your valuable response will help me in pursuing my research. I
hereby ensure you that all the information will be kept confidential and will be used for academic
purpose only.
N.B Please put a tick mark (√) before your answer(s)
1. Name:
……………………………………………………………………………………………………
2. Gender:
Male Female

3. Age:
Below 16 24-30 38-45
17-23 31-37 Above 45
4. Profession:
Student Business
Service holder Others
5. Are you aware of cause-related marketing of-
Standard Chartered Bank/ Dutch-Bangla Bank Ltd/ Square/ Bashundhara Group
Yes No

If “Yes” then how do you come to know about the program?


Electronic media (TV, Radio, Newspaper, Magazine
Website) Company newsletter
Friends Others
6. Whether cause-related marketing program has any influence on selecting a particular brand?
Yes No

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If “Yes” then how? Please briefly describe
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
7. Have you increased your consumption due to cause-related marketing program?
Yes No

8. Do you recommend others to purchase the product?


Yes No

9. Do you think cause-related marketing is a good policy for social welfare?


Yes No

If “No” then please describe the ways that cause-related marketing can be fruitful
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………

Thank you for your cooperation.

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9.2 RESEARCH PROPOSAL
Introduction
The concept of cause related marketing is spreading rapidly in Bangladesh as well as all over the
world. It is almost a new concept in Bangladesh. A few companies in our countries are practicing
it. Cause-related marketing is defined as the public association of a for-profit company with a
non-profit organization, which affords an opportunity for for-profit companies to enhance their
corporate reputation, raise brand awareness, increase customer loyalty, build sales, and increase
press coverage as well as helps to raise money for the non-profit organization.
The phrase “cause related marketing” was first used by American Express in 1983 to describe its
campaign to raise money for the restoration of the statue of liberty. American Express made a
one-cent donation to the statue of liberty every time someone used its charge card. More recently
it has been adopted by a broad range of companies throughout the world. One reason is that
companies are taking a more strategic approach to their community-involvement efforts, seeking
ways of benefiting community organizations while also furthering company’s business goals.
Another reason for Cause Related Marketing’s growth is that public-opinion research has shown
that effective cause programs can enhance a company’s reputation, brand image and increase the
credibility of its marketing effort while giving customer a convenient way to contribute to non-
profit organizations through their purchasing decisions.

Background of the Study


There has been significant growth and interest in Cause Related Marketing over the past few
years. An important element of Cause Related Marketing is the level of customer awareness and
involvement. Cause Related Marketing is simply marketing with a worthy cause. Together, these
powerful alliances (non-profit and for profit companies) can successfully work together with
unique marketing tools to influence change and create better solutions. Cause related marketing
is a form of marketing that uses various strategies, tools and traditional advertising methods to
change attitudes, perceptions and behaviours as they relate to social issues. Non-profit
organizations and for profit companies form alliances to market images, services and products.
People have more favourable view of a company that contributes or sponsors a cause that they
think is worthy. For instance, people are more likely to be interested in a company that is
contributing to cancer research than one that is contributing to insect research. Cause-Related
Marketing is an exciting where both business and charity can be benefited. It also attracts new
sources of funds, resources and support. It is an innovative and potentially powerful tool to
improve the lives and well-being of individuals, create environments that support social
objectives, re-orient social services to be customer driven, develop social capital, lead to
improved public policies and ultimately achieve social goals. This research paper focuses on the
practices of case related marketing of some of the selected firms and how it affects the consumer
in our country as anew marketing policy.

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Significance of the Study
Cause related marketing is a new form of corporate promotion based on the rationale of profit-
motivated charitable contributions. Companies use cause related marketing as a way to motivate
socially aware consumers to buy their products; the cause becomes the peg to which a
promotional program is made. This form of marketing is known to increase sales and market
share, boost employee morale, enhance corporate and brand image, and generate goodwill and
positive publicity.

While some companies point proudly to their cause related marketing program as example of
corporate philanthropy, critics point out that the company often spend more in promoting this
programs (and thereby stimulating demand for the products) then they spend on actual
contributions to the associated cause. There are also concerns that the non-profit organizations;
social mission may become lost through the commercialization of their corporate fund-raising
affiliations, and the potential donors may feel that they and the affiliated charities are being
exploited. A study demands that when corporate donor donations were small, consumers felt that
the non-profit organization was being exploited. When corporate donations were high, they felt
that the cause related marketing tie-in was beneficial. It is revealing to not that corporate
contributions to a cause related marketing program usually come from the company’s
promotional budget rather than from its philanthropic budget. Cause-related marketing is
designed to promote goodwill and to increase sells and market share, the contribution to the
cause is simply the cost of obtaining these objectives.

When for-profit organizations undertake social marketing, it is an expression of their company’s


sense of social responsibility toward the improvement of society. However, when such
organizations undertake cause-related marketing, they do so to achieve specific commercial
objectives. The opportunity to support a worthy cause indirectly is a strong incentive for many
consumers to select the cause-related product over competing brands. Thus, in cause related
marketing, it is the consumer who displays social responsibility, not the sponsoring company. As
pointed out earlier cause-related marketing is simply a hook on which to hang a promotional
program. Social marketing is done to enhance the welfare of individuals or society without direct
benefit to a firm. In contrasts, cause-related marketing is marketing with the goal of improving
sales and corporate image while providing benefits to the cause. Companies associate with cause
to create long term relationships with their customers, building corporate brand equity that
should eventually lead to increased sales.
The foundation of cause related marketing is marketing to consumer’s values and it is effective.
Cause related marketing is often effective because it is consistent with several strongly human
values. A common thing is most cause-related marketing programs are the presentation of
problem such as breast cancer, AIDS, or pollution and action that individuals can take to help
solve the problem. It is consistent with a focus on individualism cause-related marketing
programs tend to encourage individuals to take individual actions that can contribute directly to
the solution of the problem.

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In the above context it would be very useful and relevant top conduct a research aimed to
identify the practices of cause-related marketing of some selected firms in Bangladesh and its
effect on target segment.

Objective of the Research


Broad Objectives
Broadly, the objective of the research is to identify the practices of cause-related
marketing of some selected firms in Bangladesh and their effects on the target segments.
Specific Objectives
Specifically the objectives will be to identify
Marketer’s perspective
  
Underlying reasons for practicing cause-related marketing of the firms
  
Cost and profit issues regarding such policy
  
Contribution of the firms to the society by cause-related marketing

of cause-related marketing for non-profit organizations and the associated
The benefits
companies

Consumer perspective
  
Awareness of the consumers in this issue
  
Consumers view on cause-related marketing
 
The consumer’s acceptance of cause-related product

Information need
This report is based on both primary and secondary data. The primary data has been collected
from the respondents within the study area by using questionnaire. Besides, various published
documents in the books, journals, newspapers and magazines, and web sites will be helpful for
drawing conclusion.
Secondary Information Needs
  
The system of cause-related marketing
 
Importance of issues

The present scenario of cause-related marketing in

Bangladesh Primary Information Needs
  Current practices of cause related marketing in particular business firms

  
Cost-profit issues of the firms regarding such activities
  
Customer’s attitude towards cause-related marketing
 
Behavioral classification of the consumers

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Research Methodology
The research is an exploratory one. Cause related marketing is a new concept in Bangladesh.
This research considers some selected firms in our country (standard Chartered Bank, Dutch-
Bangla Bank Ltd, Square, Bashundhara Group) for evaluating the cause related marketing
activities of them. In addition, consumer’s attitude toward cause related marketing has been
taken under consideration. Analysis of the findings helps to meet the objectives of this research.
The general concept of this research has been stated into two different groups; Marketer’s
perspective and Consumer’s perspective.
Marketer’s perspective
Element: companies those are practicing cause-related marketing (standard Chartered
Bank, Dutch-Bangla Bank Ltd, Square, Bashundhara Group)
Sampling unit: Selected organizations (Four)
Extent: Metropolitan Dhaka
Consumer’s perspective
Element: All male and female consumers that go through the consumption process of
the products offered by those firms.
Sampling unit: House hold, college and universities
Extent: Metropolitan Dhaka

Sources of Data:
Both secondary and primary are necessary for the fulfilment of this research project. Secondary
data will be collected from various published documents in related books, journals, newspaper,
magazines and websites. For getting primary data, respective personnel of the selected
organizations and the customers will be interviewed personally.

Method of Collecting Primary Data:


For collecting primary data, depth interview method will be undertaken using both closed ended
and open-ended structured questionnaire. The questionnaire will be administered in personal
interview with respective personnel of the organizations and the consumers.

Sampling Design:
Target Population
All the firms practicing Cause Related Marketing program and current & potential consumers of
their offered goods are the target population. From the marketer’s perspective, the firms that
practice cause-related marketing are the sample elements and sampling unit is the firms selected
among them. On the other hand, male and female consumers that go through the consumption

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process of the products offered by those firms are the sample element from the consumer’s
perspective.
Sampling Technique:
The non-probability convenience sampling technique will be used for the sampling purpose of
consumers and non-probability judgmental sampling will be taken for the marketers.
Sample Size:
Here for marketer’s perspective under non-probability judgmental sampling technique 4 (four)
firms will be taken, on the other hand, for consumer’s perspective under convenience sampling
technique conveniently 50 (fifty) consumers will be taken as sample size for all firms.

Scope of the Research:


The research work will be limited into identifying the practices of cause-related marketing of
some selected firms in Bangladesh and their effects on customers (in terms of their purchase).

Method of Analysis
Collected data or information will be analyzed on the basis of the specific objectives. For this
criterion, analysis will be segmented into two parts as data analysis of the firms and data analysis
of the consumers and a conclusion will be drawn combining those two analysis. Data analysis of
the firms will comprise the cost and profit analysis, benefits, contribution to the society regarding
cause-related marketing. On the other hand, data analysis of the consumers will consist of
consumer’s awareness, reasons for purchasing and buying behavior regarding cause-related
marketing. This analysis technique will help to find out the practice of the cause-related
marketing of the firms and in addition, its effect on the consumer’s attitude, thinking and buying
behavior what is the major objective of this research.

Reporting
A final report will be submitted to the supervisor in due date after completion of the research in a
way mentioned in this proposal.

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