Managing Marketing: Cause-Related Marketing (CRM)

Business and Marketing
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Business and Marketing
Question 1
Cause-Related Marketing (CRM)
According to Ferraris et al. (2020), Cause-Related Marketing (CRM) is the partnership between nonprofit design and the organization that is mutually beneficial to both the organization and the society. The method promotes the former's sales and the latter's cause. CRM allows the organization to show social responsibility and promote awareness by aligning with the community's social issues and beliefs. The essay analyses the increasing use of CRM among organizations. It also comes up with a worthwhile cause that can help in the CRM's introduction in Tesla.
The expansion of Cause-Related Marketing has been evident over the years. The increased popularity is due to various reasons. First, it creates a connection between the customers and the organization. Christofi et al. (2020) assert that the continuous interactions between the company and the customers build a bridge between the company's raising money reasons and the target market. The introduction of different causes to the community assures them that the company's profits are beneficial to their personals need. The belief convinces them to trust the cooperation. The trust leads to loyalty, making them the first choice in whatever they manufacture.
Moreover, CRM supports the existing program. A successful Cause-Related Marketing captures both the cause and the company's current products and services (Ferraris et al., 2020). For instance, a company that sells detergent may offer $2 per sale as a food donation to underprivileged communities during the COVID 19 season. The customers need to participate in the program to convince them to buy the products, and the needy people get to have their daily meal. The project ends up mutually supportive to both the needy and the company.
Finally, Cause-Related Marketing appeals to customer's emotions. The success of CRM depends on the cause's ability to capture the feelings of the target market. The campaign must target the client's heart using emotional words that prompt the donor to spend on the project (Christofi et al., 2020). For example, a company that sells female products can partner with a breast cancer crusade. The campaign captures a woman's emotions because it places her in the shoes of a fellow woman who has cancer. They thought they would also be able to motivate them to buy the product and even donate more.
Cause-Related Marketing can be vital in the creation of awareness in Tesla Inc. Company. For any automotive company, safety is a priority. The desire of any driver to feel safe while using the roads creates the right motive. Tesla Inc. can use the inspiration to start a nationwide campaign to train people on safe driving skills and the importance. They can dedicate 5% of their sales to support the cause. The program can mainly target the young adults in college that dominates the list of reckless drivers. The project is worthwhile because it captures the emotions of any vehicle user. The hope that they would trust fellow road users to care about their wellbeing triggers them to purchase the product. Besides the community's benefit, Tesla will also partake of the results of the campaign. The need to donate will increase the sales hence more profit to the company.
In conclusion, Cause-Related Marketing combines the community and the company's needs to develop one solution that caters to both. CRM saves the most organization the time and resources of creating product awareness. The marketing strategy captures the target market's emotions, causing a connection between the company and the clients. The desire to support the specific projects inspires them to spend even when it was not in their initial plans.
Question 2
Product Life Cycle
Each product has a natural life process that is to follow before reaching full market acceptance. According to Bin and Huang (2019), the Product Life Cycle (PLC) describes the course of a product's life from the time it is introduced to the market till its decline. The good follow different phases that demand several skills and entails various professional disciplines. The time the process takes depends on the type of the product and its value. Some products take more time to decline while others decline faster. The paper describes the stages that product followers from its introduction to fall. It also uses a Smartphone example to illustrate the steps and increase the market longevity of the project.
The Product Life Cycle follows four stages before its extension. The first stage is the introduction phase. In this stage, the product gets to the market for the first time. Ma and Harstved (2018) argue that the time the product takes before capturing the targeting market depends on the marketing strategy or the brand that introduces the product. Most companies invest in promotion and marketing to ensure the products get to the hands of the clients. Moreover, a risk-taking attitude is the only way to serve the stage. It is not a guarantee that the product's sales will pay the investment and be profitable despite the high prices.
The growth phase is the second level of the Product Life Cycle. Increasing the number of consumers starts in the stage. The popularity of the product expands, disturbing competitive companies (Bin & Huang, 2019). Competition levels determine the need for a company's investment in promotions to defeat the competitors. Additionally, the company starts to improve the features of the product to attract customers. The prices begin to lower as the competition grows.
Third, the products get to the maturity stage. Reduction of sales starts at the level. The deals can drop entirely to the stop. The pressure from competitive companies signals values is shrinking; thus, prices start falling due to the shared bargaining power (Ma &Harstvedt, 2018). Marketing concentrates on discarding competition, hence altering and developing new products to entice a diverse market. A product that has a lower market share quickly gets out of the market.
Finally, the declining state completes the Product Life Cycle. Most companies are at the place of trying to prolong the life of the product. Besides lengthening the time for the product, the stage is inevitable. The increasing competition and loss of more market share deteriorate sales. The item depends on the loyal customers only. At this moment, the products are prone to retire unless they are redesigned to maintain relevance.
Just like any other product, Smartphones undergo the four stages of the product life cycle. For instance, the Apple iPhone 7 has been moving through the different stages of PLC since it innovated in 2017. The product prices have reduced from $ 874 in the introduction stage to as low as $ 217. The product is currently in the maturity stage, and it has been at it for a long time. Despite the introduction of many other products by Apple, iPhone 7 remains relevant because of the water-resistance feature and the new Touch ID home button pad that lacks moving parts (Ma &Harstvedt, 2018). The best marketing strategy for the product is through redesigning it to fit the current technology. The additional features can easily convince customers to try out the products hence pushing them back to the beginning of the cycle.
In conclusion, each PLC stage of the product is essential in ensuring the company breaks even. Understanding the product's phase allows the company to prepare for the challenges in the stage. A well-prepared company...