MANAGEMENT ASSIGNMENT

Management Assignment

Management Assignment

This report is based on a case study involving a children's charity organization, which is planning to go for online marketing to sell her products for generating funds while attracting customers online for buying their products. As stated in the case, the Christmas season is on, therefore, the plan of going online needs urgent implementation.

1. Significant Risks to the charity

It is a fact that charity businesses have made their mark dramatically over the past decade. There are both risks and rewards associated with CRM programs for companies. Some rewards include low-cost exposure, increased ability to win customer support, and the ability to cut through the advertising and promotion clutter (Cunningham 2007). Yet, there is also a potential backlash if an initiative is perceived as an abused marketing tool, and firms are also likely to face financial risks for causes with little or no synergy.

There are several lessons that managers can use in developing CRM programs. First, it is important to note that not all customers react to CRM programs the same way. Marketers should do their homework and assess their target audiences' interests and match the CRM program with the needs of their customers. Second, in the short run, some campaigns may simply impact attitudes, not behavior. Managers may have to be patient to see the impact of the cause on the wallets of their customers. Third, not all causes may be a good fit for every company (Chiagouris 2007).

The advent and rapid growth of the Internet has had a substantial impact on international marketing. The Internet and Internet marketing strategy have both a direct effect and moderating effects on the impact of marketing mix decisions on firm performance.

Problems with Cause-Related Marketing Campaigns

Despite overall success of many programs, CRM campaigns have had some shortcomings. Often, there is a lack of transparency in how much is made and how much is spent on the causes. For example, in the “RED” initiative begun by Bono, neither the organization nor the firms marketing through them disclosed revenues or total contributions by company or product. Sometimes, CRM is associated with price increases. For example, in April 2008, Gap offered a cause-related shirt (Gap Red T-shirt) for $28, although the average Gap T-shirt was priced at $16.50, suggesting a direct linkage between price and CRM strategy. Interestingly, however, the Gap Red T-shirt was a bestseller for the company in 2007 (Barone 2007).

Other criticisms include that it undermines traditional corporate philanthropy, which typically involves noncontroversial giving. CRM programs are often aligned with contentious programs, hence raising the issue of ethics of association with partners of questionable reputations or conflicting interests. For example, Home Depot's alliance with the National Wildlife Federation, which involved offering products, information, and expertise to help consumers transform backyards and outdoor areas into wildlife and environmentally friendly areas, raised ethical issues because of conflicting interests between the two organizations (Baghi 2009). Last but not least, CRM campaigns can be used to cover up otherwise socially and ...