Submit :
News                      Photos                     Just In                     Debate Topic                     Latest News                    Articles                    Local News                    Blog Posts                     Pictures                    Reviews                    Recipes                    
  
Philanthropy: A source of competitive advantage
Philanthropy means the spirit of well being for others, to be helpful to others. Philanthropy means do well and forget. From this point of view philanthropy appear as a useless for a business firm which has the motive of profit earning.
THERE ARE some moral values like honesty, truth, sincerity, to help others and welfare of humanity. Humans are divided in many categories according their race, religion, community caste and so on. But after all these, there is one thing and that brings them together to think about their earth, their environment and for peace of world and that thing is philanthropy.
 
What is philanthropy?
 
Philanthropy means the spirit of well being for others, to be helpful to others. Philanthropy means do well and forget. From this point of view philanthropy appear as a useless for a business firm which has the motive of profit earning. The concept of philanthropy looks so odd in marketing but let us see how it works in business and marketing.
 
Philanthropy as marketing strategy

In this era of competition every business firm want to defeat others, not for winning but for self-survival. Philanthropy can be a good marketing strategy and it also can be a competitive advantage for the business firm which adopts it. Competitive advantage is a unique feature of one that competitor can never imitate and philanthropy is that one. It is not very easy to follow this strategy because it needs huge time and resources. Philanthropy gives a unique advantage that the competitors can never acquire or imitate. However, the pre-requisite is that the firm or the business man should be determined and should be able to wait for long terms because philanthropy works slowly, but soundly. In long term, philanthropy builds a strong customer loyalty, because customer feels an emotional attachment with philanthropist company. It is so, because everybody likes a noble and honest image that philanthropy gives to the follower. Now, the main question is how to use philanthropy as marketing strategy.
 
Framework to use philanthropy as marketing strategy
 
Frame-work to use philanthropy as marketing strategy can be divided in two parts; in the first part the short time period is assumed. In this duration the firm will earn very less profit, just as much as required for its survival, but invest a huge amount on the public utilities. It will make publicity for the firm as a philanthropist in the market. In second part, which is assumed as long run, the firm will have a good and fair image in the market and great customer loyalty. It will give it additional profit as well as great market share. It would be possible only when the firm will keep a reasonable price with splendid quality of products.
 
Who used philanthropy and its out-comes

Newly launched small car
Nano achieved a great publicity and appreciation in market, especially in Indian market. According to an Indian news channel Aaj-Tak, Nano is the first car of the world which got such a huge crowd in its launching ceremony as well as TV spectators. I deeply thought on that and after much analysis, I reached on a conclusion that was the philanthropic message given by Ratan Tata, the president of Tata Group. He once said in a public conference, “I want to develop such a car that should be very cheap and fall in the affordance of Indian middle class family which moves on two-wheelers.” It was an emotional and heart touching message. Tata’s sacrificed their short run profit and made true their famous catch line ‘A car in lakh rupees’. Nano earn a great publicity due to its philanthropy promotional strategy.

Philanthropic marketing strategy (PMS) takes a long time and a huge investment, but it gives great return to the follower, ie, additional market security in strongly competitive market. In the age of competition it is very tough to build new customers as compared to retain old customers. PMS provides a fair image, as well as sympathetic value in customer’s mind for the company.

COMMENTS (0)
Guest
Name
Email Id
Verification Code
Email me on reply to my comment
Email me when other CJs comment on this article
}
Sign in to set your preference
Advertisement
merinews for RTI activists
In This Article
ratan tata
(155 Articles)


Advertisement
Not finding what you are looking for? Search here.