In setting marketing strategy, we need to consider all effects of external forces surrounding industries. As a either direct or indirect result of these situations out there, business strategies are determined and modified to counteract them. One of notable upcoming issues is the environmental problem including water crisis and defrost. Since many raw materials are obtained from nature, the companies producing goods made from natural resources badly damaged by difficulties gaining raw materials as well as increasing responsibilities of reserving natural environment.
Accordingly beverage industry, in particular, is seriously affected by the shortage of water over the world. This is because producing beverage is virtually relying on water. In reality, people are getting more cautious about water crisis and miserable situation that 1 million people are unable to access clean water happening in another side on Earth. This undesirable situation has discouraged people to purchase bottled waters due to its harmful impacts on environment during producing process in recent years.
The income decrease of bottled water clearly reflects this situation. The two giant beverage companies, Coca Cola and Pepsi reported that sales and growth of bottled water have substantially dropped since 2003. Besides, there are even some protests of anti-bottled water. Current situation around bottled-water market is unwelcoming but challenging for these companies. It is also obviously blocking all probabilities to expand their businesses. To tackle tough situation they face, they came up with “charitable marketing strategy.”
Charitable Strategy
Charitable strategy is referred as ethical or responsible marketing in another word. It is basically including charitable ties with nonprofit organizations, green campaigns working with celebrities. Pepsi Corp has already set on a donation campaign with Matt Damon. They donated $2.5 million to his H20 Africa clean water initiative. Here is another example; Coca Cola are getting ready to launch its own ‘socially responsible water. There are a lot more instances to look at regarding this responsible marketing in the article on the following website: http://www.alternet.org/story/79741/
Tricking people as if they are doing right thing by purchase of products itself. The center idea of all cases above is encouraging consumers to buy their products by showing seemingly ethical and responsible events. They are using several ways to convince people that they are doing right tings to society as well as environment. However, we need to take closer look at their intentions behind. Apart from that, some bitterly criticized all kinds of campaigns and commercials talking about environment issues that “they all are interested in greenwashing public opinion and tricking people living in the city into thinking they are doing the correct thing by the environment by purchasing their product.”
Ethical marketing is different? =Marketing
Technically no matter what named marketing strategy is, ethical or responsible marketing is, just that, marketing. That means companies’ primary goal of marketing is to maximize profits, therefore, they are another means of marketing. Moreover, these type of marketing preys on the heart of the consumer by capitalizing on guilt and conscience. They are just clever marketing ideas.
In terms of ethical business, I chewed over what an ethical business really is. Many marketing strategies are employing human psychology to develop its ideas. Whereas less strategies really contributing to what they are saying they help are seen. What companies really should do is make contribution to environment by preventing pollution or damaging nature while they are producing products. It could be a fundamental solution to get credits about companies from customers in the long run. Plus, it is connected to long-term profit coming from good reputation. As a future business person, I might need to think over this particular issue, ethical business and how companies can coexist with surroundings as aiming at the most profit.
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