Impacts of Socially Responsible Marketing

Marketing
Name
Institutional Affiliation
Marketing
Socially Responsible Marketing
Socially responsible marketing refers to "the practices that some companies adopt to acknowledge the larger social and environmental impacts of their products” (both goods and services) (Jones, 2015, p. 1). The concept of social responsibility is one that is highly particularly, in corporate social responsibility. In this case, it coerces enterprises to be exceptional entities that balance their profit-making endeavors with activities ones that are equally important and beneficial to the society regardless of their geographical scale (local, national, or global). In this regard, social responsibility in marketing encapsulates efforts geared towards attracting clients willing to make a positive difference with their purchases. Socially responsible marketing (SRM) in itself is a marketing philosophy that posits companies ought to base their actions on what is best for the society both in the present and in the long-term. A company that adheres to this dimension of thought produces desirable products fervently.
SRM is important to businesses because it facilitates its growth as well as expansion. Smart business management acknowledges that SRM and the abiding philanthropic practices as great business tools. According to Forrester Research (2017), which focuses on market research and thus, advises their clients claimed that “Some 52% of United States consumers factor values into their purchase choices” in the quest to seek brands that “proactively promote beliefs and values aligned with their own.” Besides, Nielsen conducted a relatively similar survey, but on a greater geographical scale taking account of opinions from 30,000 consumers in 60 countries. The results from the report indicate that an astronomical 66% of consumers are keen on promoting brands that demonstrate social commitment (Nielsen, 2015). Third research that promotes these ideal claims that 87% of Americans are likely to purchase commodities from companies that exhibit a profound level of care and more so, to subjects they care about. In retrospect “76% will refuse to purchase a company’s products or services upon learning it supported an issue contrary to their beliefs” (Cone Communications, 2017). These surveys serve to highlight the importance of SRM as a business tool even though this could have never been the intended objective.
Beyond the application of SRM as a business tool, companies use the technique to spread awareness to the entire community of the societal issues and problems that are affecting the globe. Such companies will play their part in establishing recyclable measures in their packaging to act as role models to ensure that they are living by the same standards. Moreover, they will direct significant sums of their profits towards charitable groups to help in the course. An example of this strategy is a clothing company’s marketing team that initiates a campaign seeking customers to purchase a bundle of socks instead of a single pair. In return, the company donates a bundle of socks to the local homeless shelter or military personnel overseas for every bundle sold. Such donations present the company as one that is socially responsible and ethical. This notion aligns with most customers' ideology of an excellent company that is humane. Consequently, the company attracts several customers who even though have not participated in the campaign, are aware that some of these profits will be used in future social commitments.
The company solidifies its presence in the market because SRM demands the input of the corporate body of the company. These include the stakeholders, shareholders, executives, and administrators. These entities must consolidate their efforts and joins the community in promoting responsible marketing activities. Greenwashing, which is ardently recognized as putting on appearances hinges on the promotion of deceptive environmentally friendly commodities or processes. Eventually, customers will realize that the company's efforts are flawed and thus, lack a real commitment to social responsibility. This move would be a dangerous one for the company as it creates a significant backlash from customers. The public is very cognizant of efforts that are ineffectual or not genuine. The brand can be hurt significantly placing the entire company’s success at stake. In the same report from Cone Communications (2017), 65% expressed their in-depth focus and research on the company to ascertain whether it is authentic in its efforts to be socially responsible.
SRM at Tesla
SRM is an important part of the entire company. This perception arises regardless of the company being an online-oriented firm or one that centers its operations on physical stores. The fact that none of the established businesses owns the market implies that they have to differentiate themselves from the rest of the competitors. SRM is an essential selling point in the market and that is why in the discussion above, it was noted that the market is much more willing to pay for products that align with their values.
In contemporary society and this information age, customers are becoming highly empowered meaning that they can access information related to a company as fast as in the click of a button. This position allows them to reject corporate irresponsibility quickly. Millennials, in particular, and who are the major market today, are willing to go the extra mile and purchase sustainable products even at higher prices. Some critics consider it as a public relation taking into account the expensive campaigns and how highly publicized, they tend to be. They opt for these companies to contribute their funds directly to philanthropic causes or charities.
Company Profile
Tesla is the latest automobile company to be incorporated since Ford in 1956 (Sharma, Rana & Sage, 2018). Today, it is the largest car manufacturing firm globally concerning market valuation. Its unique proposition in the market is that it specializes in the production of electric cars as the primary product in the firm. In the year 2013, the company launched its first electric car, Model S, that was meant for the greater consumer albeit the Tesla Roadster. The company entered the automobile industry producing a price skimming strategy that allowed a few people to own the Tesla Roadster, mostly celebrities and high-net-worth individuals.
The capital gained was used to produce the subsequent models that were less expensive for the greater group of people. Many customers have been thrilled by the excellent design and performance of the vehicle. For instance, the vehicle can surge from a standstill position to a speed of 60 miles per hour in a mere 2.27 seconds (Koresec, 2017). Even exotic models such as Lamborghini have failed to hit these heights. This excellence is reminiscent of Model X and Model 3. The quality of the products is unrivaled. The high-speed cars are as a result of the lightweight fiber technology that the company employs (Yushkevich et al., 2016). Such innovations have played a fundamental role in helping the firm’s manufacturing division create effective electric cars.
Tesla, just like many other modern companies have employed the segmentation, targeting, and positioning marketing strategy to assert its authority over the market. This strategy has not only been fundamental in establishing a significant competitive advantage, but also in creating a head-start in the electric vehicle segment. Tesla is no longer a national brand in the U.S., but an international brand with its reach expanding to the European and Asian market. When it comes to SRM, Tesla has appeased the “environmentally-minded consumers, with his line of cutting-edge electric-powered cars and green automotive products” (Murphy, 2019). Thus, the company is community-oriented, which has translated to it having the upper hand in regards to competition. The firm’s involvement in environment-friendly quests has come in various dimensions.
SRM Practices
One of them is the reduction of waste. This principle of sustainable marketing is one that Tesla has applied in its operations to communicate to its customers its overall corporate social responsibility to attaining a better living environment around the globe (Lyyra & Koskinen, 2017). In the quest to reduce waste, the company aims to maintain the environmental sustainability. As mentioned earlier, the company's administrators have to be involved to convey a robust resolute towards this course. In this case, its chief technology officer (CTO), Mr. Jeffery Straubel has lauded the company’s efforts in embracing the circular economy concepts. The CTO claims that the company will recycle all of their spent cells, modules, and battery packs (Forfar, 2018). Most of the cars are yet to hit the end of their lifetime and thus, this will be a major move for the EV company. He invalidates the concerns that the company’s used...