 REG不錯 – good afternoon, and thank you for joining us either in the theatre here or online for our 9th lecture in the special 50th anniversary year inaugural lecture series. Our 50th anniversary year it's proving it's such a pleasant experience to think we might do it again next year. I am Nicholas Braithwaith, I am the Executive Dean of the STEM Faculty science, technology, engineering and mathematics here at the OU and it's my privilege today to be hosting this lecture, this celebration of our 50th anniversary and this is one of those events that we've got that showcases our research and relates it to our teaching and our knowledge exchange portfolios. Now each year the vice chancellor invites some of the newly appointed professors and promoted professors to give inaugural lectures and over the course of a year the series provides an opportunity to celebrate academic excellence with each lecture representing a significant milestone in an academic's career. This afternoon we're going to hear from Professor Gordon Lew, Professor of Marketing Strategy and he's in the Faculty of Business and Law. This is a good year for him to be delivering an inaugural at this 50th anniversary series because of the topic that he's chosen. There is a great a growing importance of social responsibility corporate social responsibility and his topic of cause related marketing is related to that but before we begin some details of how the event runs this lecture will be followed by a question and answer session and we'll be doing that from over there after Gordon has spoken and then we invite those who are physically present to join us downstairs afterwards for a celebration. Anyone in the audience here or online who wants to use Twitter please feel free to tweet using the hashtag which is displayed somewhere is there a hashtag displayed, hashtag OU talks and tagging the open university let the world know what's going on here this afternoon and for members of our audience joining us through the live stream please use the email address that's been provided keep your comments brief and questions brief and we'll try to fold them into the question and answer session. Now there are some health and safety details appearing on the screen now and I'm just remembering to turn my own phone to silent and turn it off that would be embarrassing. Let's go to Gordon. Gordon Lew is Professor of Marketing Strategy as I said in the OU's Faculty of Business and Law. He has a bachelor's degree from the University of Western Ontario and he has an MBA from Willamette University both of those two are in Northern America one Canada one USA and PhD from Royal Holloway that's in the University of London if nothing else he's well travelled he belongs to Editorial Review Board of Group and Organization Management and he's an editor for Cogent Business and Management in other words he's well connected to his sector. His research interests are at the intersection of marketing strategy and entrepreneurship with an interest in topics revolving around product innovation new product development strategic orientation and strategic capabilities and networks and strategic alliance. Now he's published very widely on all of these topics and I just checked to them earlier today to see how his career is progressive because you get to a professor you don't stop we expect you to carry on and in January he published on product innovation and information technology and just last month international cause related marketing which is very close to today's topic. So it now gives me great pleasure to introduce Professor Gordon Lew. Okay good afternoon thanks for coming my name is Gordon Lew I'm a Professor of Marketing Strategies at Open University Business School I was a point professor by the Open University in September 2017 it is my honor to give lectures at this 50th anniversary lecture annual series. The topic of my lecture is cost-related marketing this is a spatial research topic for me I have obtained my pitch deeds at Royal Holloway University of London in 2008. My thesis topic is cost-related marketing after obtaining my pitch deeds for a few years I realized that's written that's writing academic papers is in the same topic is not really exciting I know how many of you have read academic papers but it is not found to read and it is not found to write and even worse is to write about the same topic year after year so I decided to write something new over the past few years I have explored different research topics such as business strategies innovations human resource management and entrepreneurship however I will always revisit the topic of cost-related marketing from time to time especially when I get bored of all other topics I will write in few papers about cost-related marketing they move to other topics this afternoon I will tell you a little bit about cost-related marketing and what I've learned about these spatial marketing strategies over the past 15 years since my first day of my PhDs in 2004 so the overview of these afternoon lectures as following I will first explain what cost-related marketing is and discuss why company wants to engage in cost-related marketing or I refer as the driving force of cost-related marketing then I'm going to show you the different logics that company adopt to design their cost-related marketing strategies and the tactics they employ to launch their cost-related marketing campaigns afterward I will discuss a phenomenon called social alliances it's a cross-sector alliance forged between a company and the nonprofit organizations it's become a common approach to implement cost-related marketing finally I will talk about the potential opportunities and the threats about the use of cost-related marketing so begin of the lectures I want to show you some examples about cost-related marketing to give you some background ideas how many you have to recognize this in the package or if you've been to the grocery store you may recognize this packages so in 2011 the Acmeo launched a cost-related marketing campaigns for every package with this label prints on the package of the Acmeo drinking yogurt you have bought the company will donate five pieces to the well child children charities in the end the Acmeo donates around 60 000 pounds to the charities enough money to fund a four time nurse to care 50 families for the entire years okay how about another example anyone seen this okay this is actually one of my favorite cost-related marketing campaigns since 2006 Proto and Gamble has collaborated with UNICEF to protect mothers and babies worldwide from the danger of tetalus a deadly disease that cleans the lives of 10 000 newborn babies every years in this cost-related marketing Proto and Gamble will donate the cost of one life-saving vaccines that's equivalent to 4.4 pence to UNICEF when this spatial marked papers has been sold in the UK and other participate markets between october's and december's UNICEF can then use this monies to can use the donations either to pay for the vaccines or to promote or to deliver the vaccines to the children's in need in the 10 years this campaign has been running enough farm has been raised to provide 300 million vaccines more than that a positive image about the brand Pampas has reached more than 376 million people through the media coverage in 2014 alone there's another example how many of you have seen this kind of things okay amazon smile is a website that's operated by amazon's so it's the you have been to the amazon to buy the products amazon smile is the website with the same products the same price the same shopping features like amazon's the difference that's when you shop at amazon smile website the foundation will donate 0.5 of the purchase pricing of the products to the charities of your choices since the launch of these campaigns it has raised more than 100 million dollars in charitable donations so what is cost-effect marketing before i talk about this i want to tell you our stories it all starts in 1983 the american express corporation decided to give 1 cent for every critical transactions and $1 for every new account opens to the repair fund of statue of liberties ultimately the american express corporations raised total of 1.7 million dollars for the repair fund but more than that the marketing campaign has helped to increase the usage of american express critical by 28 percent and increase the new american express critical accounts opening by 17 percent so as you can see cost-effect marketing is not like the typical marketing campaigns you have seen the typical marketing is designed to try to sell companies capacities to deliver the products or service better qualities and the lower price but cost-effect marketing really focus on the social benefits of buying companies products or service a company can receive both financial and non-financial rewards after successful successful cost-effect marketing campaigns like other typical marketing campaigns however if you ask the practitioner or field experts about what is cost-effect marketing you may get different answers some experts suggest that's cost-effect marketing is a type of corporate social branding strategies that is the process of adding socially oriented qualities into companies brand to increase brand record others few cost-effect marketing is a type of corporate social marketing that can be seen as company display its relevant stance on particular issues like against smoking against drunken drive or cost-effect marketing some people say is a type of green marketing because if the company emphasise on the green issues like carbon footprints and they use this for marketing purposes they can be acting like a green marketing or cost-effect marketing can be a donation based self-promotions when companies contribute a specific amount of to a specific amount of charities as the percentage per transactions for people who made the purchases then the donations act as a discount so instead to give you discounts you can donate the same amount to the your favourite charities or some people think the cost-effect marketing is a strategic philanthropist it's where companies doing some charitable work also to support a company's business objective but doesn't matter how many people or what the field expert says they all agree on three principles first cost-effect marketing is a combination of marketing and the corporate social responsibilities second cost-effect marketing provide companies with opportunities to publicize and capitalize on its corporate social performance and the third cost-effect marketing strategies focus on how companies should design their corporate social responsibility activities and to communicate the associate corporate social response in the way that will enhance company's reputation to its key stakeholders thereby improve long-term probabilities and the stakeholder relationship so in other words cost-effect marketing is about using marketing techniques to promote companies image products surface in conjunction with its corporate social responsibility activities so now question comes into why company wants to engage in cost-effect marketing it's turns out there's a different kind of force that's motivated companies to do so a business operate the business operation relay drivers reflect a company's motive to improve business operations use culturally relayed marketing the typical two one is the one is the enhanced purchase intention and improve organizational identifications enhanced customer purchase intentions is try to make customer want to buy company's products that's provide the motive for companies to engage in cost-effect marketing an organizational identification is how employees fuel the companies so this type of drivers focus internally the company wants to engage in cost-effect marketing because they want their employee to feel they are belong to this company to feel proud about their companies so that is a business operation relay drivers another type of drivers i call this a business society relay drivers that is about obtain license to operate and manage community relationship license to operate is a permission to undertake a trade or carry out business activities in the specific locations and this type of customer marketing used widely by international multinational organizations when they expand to other countries they will do some customer marketing to gain trust of the local stakeholder and local communities and imagine community relationship is where companies try to engage in cost-effect marketing try to build in the community relationship to have a strong tight with the local communities and of course this for driving force is not like mutually exclusive okay it's not like say every single cost-effect marketing campaigns will only have wide drivers in most cases a single cost-effect marketing campaigns will have multiple drivers so let's look at these examples in giving a child breakfast cost-effect marketing campaigns the calox companies is an american multinational food manufacturing companies donate over two million breakfasts to the school breakfast club across the UK so it's the multinational company wants to explain what's to explain in the UK so what's the driving force what's the motivation for company to engage in this kind of cost-effect marketing of course the company wants to enhance customer's purchase intentions they want to people know they are socially responsible company at the same time the company want to build the community relationship with the local communities in the UK because this is American companies so what does company do marketing research shows more than 50% of people think the calox brand is positive and the 40% people think about that i want to buy their products because of these culturally related marketing campaigns and the people's perceptions of calox care about the communities in the UK is increased by 3% okay so that is the power of cost-effect marketing so once the company has been motivated to engage in cost-effect marketing the next things is what companies try to do in designing cost-effect marketing based on my research the customer the company company design cost-effect marketing strategy is based on two primary logics the first one i call this instrumental logic the instrumental logic focus on designing campaign to direct the influence of customer's attitude to a buying a company's products this logic fuel cost-effect marketing is a type of commercial marketing strategies for example this kind this cost-effect marketing campaigns unfortunately in the UK we don't have we don't have Jay we don't have uh we don't have uh Jersey Mike's is American sub companies like um it's like subways in the UK so in this uh March is the month of giving campaign Jersey max were raised from in the restaurants for the charitable organizations during the entire march so in the march the entire march in this door they'll put the stands to raise funds for the charitable causes and on March 27 a specific date is they they call a days of gifts they will invite customers to store to buy the sub meals and then the company will donate 100% of these sales to the charities in the local areas so since 2010 Jersey max location throughout the countries has raised nearly 12 millions for the local costs and they distribute more than 1 million free submarine sandwiches to the peoples in need the second type of cost-effect marketing strategy design I call this relational logic the relational logic aims to demonstrate corporate citizenship to gain its stakeholders trust and to build reliable relationship with company stakeholders under this logic cost-effect marketing can be viewed as a type of stakeholder communication strategies for for example solar with readings campaigns is created to inspire and encourage children's imaginations JetBlue is the American budget airline donate money to provide books to children's in low-income neighbourhood since its inception JetBlue and their partners has donated over 2.7 million words of books to the kids in need of course this true logic is not like once again it's not mutually exclusive every cost-effect marketing it will be a mix of both but it will tend to lean to one logic over another next I want to talk about social alliances as you learn you have learned so far this afternoon you may have already have identified a lot of cost-effect marketing campaigns implement through the formation of a company and the nonprofit organizations I refer this type of cross-sector partnership as a social alliances the formation of social alliances allows the companies or nonprofit organizations to strengthen its resource profile by assessing the resource from their partners so let's see what companies say about social alliances this is a quote actually I collected this myself based on my research it's a quote from the from the marketing executive from the consumer finance firms the quote says it's about brand awareness charities provide service to different causes when companies associate their brand with charities brand they also get associated with those causes that are represented by charities so what this means in this quotation the corporate executive suggests that's aligned with the nonprofit organizations is a direct way to establish companies association with the cost that's represented by the nonprofit organizations if the main objective of cost-effect marketing is to raise the public awareness of of particular costs which company have supports the easiest way the direct way to do this is to align to establish alliances with a particular nonprofit organizations who also advocate on the same causes so that's what company want to say so how about the nonprofit side this is the quotes from the fundraising managers the quote says associate with well-known and the well-respected companies can really bring up our organization startups where suddenly become more well-known at the same time we also receive quite sound of monies from the companies so from nonprofit organizations perspective align with companies allow nonprofit organization to receive financial resources from the companies for the more the establishments of social alliances can also help the nonprofit organization to enhance its brand awareness which intends to lead to the bigger donor bases so this is the social alliances so now the question comes to okay if social alliances is good okay company wanted to decide market strategy but how company or is there a specific way company to select which partners they want to collaborate with in the cosplay marketing campaigns so based on my research there are two ways to select partners one I call the commonalities another one is complementary so um okay okay put simply okay the commonalities is where companies choose a brand they represent the same associates the same brand associations and the common and the complementary realities is the way companies choose a cost with these similar associations with their corporate brands so that's um I'll give you an example here for commonalities the Ubi Parker is the American online retailer on prescription glasses and sunglasses partner with fishing spring a charity whose co-mission is to is to ensure affordable access to eyewear everywhere so for each pair of glasses they sell Ubi Parker will donate enough money to fishing spring to cover the cost of sourcing a pair of glasses for low income men and women so that's why this campaign called if you buy a pair from Ubi Parker Ubi Parker will donate a pair to the people that need glasses so you can see the association here Ubi Parker is a company who sell glasses and then fishing spring is the chair of organizations who advocates everyone should have prescription glasses if they need it so that is a closed association so I call these commonalities in terms of complementaries a good example is um this one is some fucker for dog peoples in this customer marketing campaigns Tito's handmade fucker begin partnership with emancipates animal charities to help care for dogs they together create a website raising money and awareness on this site supporters can buy a pet and human products with Tito's fucker's logo on them like Tito's teachers and then the night policy of the products will donate to these charities emancipates so why this is is some complementaries let's do a poll here how many of you like vodka's like drink vodka's please raise your hand raise high very high very high okay and keep your hands up okay how many of you are dog person like dogs more than cats well so how many of you like drink vodka's and also are dog people okay very few okay so as you can see the association between the vodka's and the dog or you like dog for dog charities is this similar okay and but why company want to do this we know like in complementary customer marketing campaigns people easy to remember okay when I'm I'm a company who sell glasses and I donate to glasses to fishing relay the causes people easy to to to remember okay easy to get the associates but why company want to complementaries complementarities the reason is because that creates a unique brand experiences okay so if you leave this room okay you may you may forget about all the examples but you will keep remember a fucker for dog people customer marketing campaigns because easy to remember that is very you that is very very unique so as we talk about all this customer marketing customer marketing strategies how to choose a cause but what's the opportunities for companies to engage in this kind of marketing strategies let's do another another gain here okay so how many of you like drink coke okay how many like how many of you see this um special can design coke bottles no happens okay okay okay in in this this is a customer marketing campaigns coke team up with world wildlife firms to raise monies for conservation efforts and re and the researchers so in this customer marketing campaigns a polar bear has always been co-colors an official mascot so basically coke tried to save environments so they donate money to the conservation re conservation work and the researchers okay now keep this in mind coke do this okay coke do this okay so now imagine okay in a hot summer afternoon of course not today today's kind code i give you a choices in defending machines you have a choices to buy i give you one pounds you have a choices to buy you can only buy either coke or Pepsi how many of you will prefer coke okay how many of you will prefer pepsis okay if if you and you don't have preferences on whether you like coke or pepsis if just about i want the soda drink i have two options okay and i can either go for coke and you go for pepsis if you have this knowledge that's coke actually doing something good to the conservation efforts you have you are 80 percent more likely to buy coke over pepsis okay because research shows because oh sorry because research shows 80 percent of customers were likely to switch brands when they know they have knowledge that's one particular brand associated to uh corporate social responsibility of customer marketing related activities if the price and the qualities are similar that's what i say coke and pepsis are a good way to illustrate this because the price quality is similar if you have awareness if you don't have any preferences you're more likely to buy coke over pepsis so other than this what about other opportunities first according to marketing research 50 percent of customers globally willing to pay extra for the products and the service for the companies come in to provide social and environmental impact sub to 10 percent from 2011 so you're not willing you're not even willing to buy coke more than pepsis use the case you're actually willing to pay more for the coke than pepsis seconds brand that communicates their sustainability efforts generate five times the revenue of those who do not okay this according to marketing research 87 percent will purchase the products that companies advocate for the issue they care about so if you really care about the conservation efforts you have 87 percent more likely to buy a coke over pepsis because you support these specific causes and importantly 86 or 68 percent of millennia so young people's bought products with social or environmental benefits in the past 12 months this means majority of young people's believe the importance for companies to engage in sort of cultural marketing's of corporate social responsibilities so of course this is all good size of our cultural and marketing's how about the batch size okay let's do another exercise here let's assuming you open newspaper this afternoon and then you look this out okay and this after I think says if you buy if you 10 percent profit what donates if you buy this earphone and the price of this earphone is 20 pounds my question to you okay now is we are doing some math here my question to you is how much money the company will donate to the charitable causes okay how many people think it's two pounds please raise your hands very high okay the questions the answer of these questions is um I don't know or we don't know why is this okay because there's not enough information this advertising talk about how to allow us to calculate the amount of money the company will donate to the charities when we purchase these earphones because the profit is equal to selling price minus cost and in this we don't know the cost will you know the selling price will you know the donation percentage profit we don't know the cost so let's assume for 20 pounds earphone if the cost of the company is 15 pounds the company spent 50 pounds to buy the earphone and sell at 20 pounds the profit for the companies is five pounds so 10% of the profit is actually 50 piece is much less than two pounds if you originally thought if you think two pounds a quick reflection you should say two pounds I buy this earphone I donate two pounds actually the company only donate 50 pounds if the cost of the earphones is only 15 pounds okay so in other words the customer can be easily misled by the cost of the marketing campaigns and there are other threats here or not say threats but another kind of things that people criticize about cost of the marketing campaigns the first one is the the company become very objective okay it's overly commercialized or we call this a green wash whatever name you want to call this okay for example only people remember these campaigns Tesco's computer school in 1992 Tesco launched a unique sale promotion campaigns for their in-store items and the petrols for every 10 pounds being Tesco's store or petrol station in a single transactions Tesco offer computers to school vouchers to its customers customer can give these vouchers to their favorite schools school collect these vouchers and the exchange of these with computer equipment over 10 years Tesco say it's give over 100 million worth of computer equipment to school through the computer school programs however despite of this success this campaign also face some criticisms for example do you know in order for Tesco to donate a computer to school that's equivalent to 700 pounds okay the customer or parents need to spend around 379 000 pounds to buy a good of petrol in Tesco store or petrol stations in order for Tesco to donate a computer that's worth 700 pounds to school for the more the retail price of computer equipment have gradually reduced because of the improvements of technologies so this campaign has run for 10 years and 10 years they offer the same type of computer equipment so in other words there's less money go out from Tesco to actually buy the computer equipment because computer equipment is getting cheaper over the 10 years for the same type of computer equipment so this is one of the particular one of the criticism for customer marketing campaigns the second one is about customer donation incentives the challenge for the for customer marketing campaigns is make you feel that you have already made your contributions to the charitable cause or to the charitable organizations so like saying I don't know how many of you register here and you regularly or occasionally donate to charities okay many of you do okay but if you go into the store you buy a product or because of customer related marketing you buy a lot of products you may feel that's already done your job then you will not make the contribution to the private charities to the charitable organization that you normally do privately as we can see the company actually donates it's not much of money to the charitable organizations through the customer marketing campaigns but because you buy the products you may feel that's already done your job so privately you will donate less to the charitable organizations third criticism is about corporate selection bias what I learned so far while I study cultural marketing for the past 15 years large non-profit organizations are more likely to be chosen as alliance partners for the cultural marketing campaigns of course okay if you're large non-profit organization you're well known the company will choose you because your brand is also well known so a company don't have to spend a lot of time to promote these cultural marketing campaigns it's easy to justify uncooperate with a well known national charities then finding a small charities which is not well known I need to spend a lot of advertising money to do so and then there are certain causes are more favored by the companies like the company like to donate to animal causes the cause for helping children's the cause for help natural disasters but there's all other causes that is least favorable by the companies to choose so that is the third criticism the last one is the non-profit over dependency I know how people see this kind the discussion marketing campaign before okay in 2010 kfc decided to partner with Susan G Coleman for the cure is a breast cancer advocate group to launch cultural marketing campaigns buckets for the cure for each pink bucket you buy in kfc actually in us now here for each pink buckets of chicken purchased in kfc kfc will donate 50 cents to the Coleman care foundations from the perspective of running cultural marketing campaigns this is a very successful campaigns because in the end kfc donated 4.2 million to Coleman's the single largest donations in Coleman's history and this campaigns are ready to raise two million dollars in the first week of runnings so for a marketing perspective this is a very very successful marketing campaigns however the the challenges either kfc or Coleman receive positive PR response this because the obesity is the primary risk factors for the breast cancers and eat too much eat too much fried chickens could contribute to obesity so the campaign leads to massive credits a question Coleman's motive to join kfc's for these campaigns in most of cultural marketing campaigns non-profit partners can receive richer financial contributions from the corporations of course i'm not sure what's happening in these campaigns the bucket of cultural marketing campaigns i don't know what's the Coleman's role here okay but i'll just say the research shows when financial incentive is really big in marketing campaigns like the cultural marketing campaigns non-profit organisation non-profit organisers tended to be over dependency under financial contributions by the companies as a result they may lose some flexibilities once the non-profit organisation lose flexibility about companies requests it may force to undertake certain activities that they don't they are not in the best of its interest so in the end of course when launch a cultural marketing campaigns there always be an ethical concerns but i think if we are aware of these concerns we can design a better cultural marketing campaigns that is not only able to achieve companies marketing objective but it's also the something good for societies and that's all my presentations thank you very much thank you very much Gordon so now it's time to hear from you if you have any questions and comments that have been raised by that presentation and i should point out that any similarity between the chair and the kfc logo there is purely coincidental will you come and join me gordon over here with the increased social responsibility that the customer has do you think there will be a demand in the market that this should become normal rather than exceptional corporate social responsibilities um it's become more popular company wants to do corporate social responsibilities to to sort of communicate to the stakeholders or to communicate to customers one of the stakeholders and cultural marketing is simply just a tool to help companies to communicate their corporate social responsibility efforts so when there's more corporate social responsibilities of course i can see there's more cultural marketing will happen because a corporate or company want people know what they have done and even for individuals when you donate to the charities i have more more to do so if people know you make donations to the charity or i say there will be more cultural marketing. Yes we have a question here at the back hi i'm laura from marketing at the open university um i wondered if you had any opinion on whether there is any truth that companies take part in cause related marketing in an attempt to offset corporation tax might be a uk thing i okay because i'm studied the cultural marketing strategies i'm not study whether company use this and to avoid tax or not so if there's another financial path want to do lecture lectures you may want to direct your questions to him thank you okay it's an interesting additional motivation though i agree with you yes we have a question over there and the yes that corner go yes Duncan Banks from stem yeah um i've got a question regarding Ammonson smile and this is sort of a recent development by Amazon it doesn't seem to fit either of the categories very well because it's not identifying with a specific company or charity it's you're leaving it up to the individual but i suppose there is a possibility of that connection being abused in the future by people marketing on social media the fact is that go on to amazon smile click on this link to us our company and therefore we will benefit ourselves well um what i say every single marketing because like i said cultural marketing is a tool is to help the company to communicate to what they have done in contributing to society their corporate citizenship and of course individual can always manipulate in all kind of marketing strategies so i think it's all left to amazon to manage how the selectable how the charitable organizations use this for either for their own benefits or even the organization is a charitable organization or not i think it has to be managed by amazon the companies who create the website okay next question a bit further along and then we'll come to you at the front good afternoon melvin hurley my question relates to the marketing budgets prior and post crm do you have any evidence that would indicate whether companies are spending less with crm than they were previously when they were making standard donations my suspicion is that with crm they've reduced the amount that they were giving in charity giving and increased their sales through crm without sharing the profit back to the charities that they would have done previously is there any evidence for that okay um i can't give you a specific figures but some research says companies spend more money to marketing the corporate responsibilities than actually doing the corporate social responsibilities but what i feel this from another side is um the companies whether they will do a charitable work is like individual whether they want to charitable work is all depends on the companies if there's a program give company an incentive to do more charitable work then company can find in benefits from it i think in general from economics perspective these are good things but of course like i said there's some research shows you may call this unethical because they may spend more on marketing the CSR than actually doing the CSR but that's this ethical debate and i can really comment on that okay down here second row we have a lady could you with a pink microphone please come to the second row thank you hi i'm Emma Germain from the Children's Cancer Charity Super Shoes based here in Milton Keynes i was very interested to hear in your lecture that you're saying the threat to smaller charities is is how they break into benefiting from CRM and obviously many most of the examples you gave were of large companies and large charities and i wondered from your research what experience you'd had of of smaller charities that have successfully broken into the CRM field and how you found that was how was it made possible for them based on my research because there's another my research topic is about social enterprise for the traditional and powerful organization i think probably your organization is usually they need to play more active role to seek corporate support probably not a large companies but local companies and at the same time it's also need the traditional and powerful organization sort of like transform itself to become more like an enterprise i'm not saying you do business making profits but be operate like a business more efficiently operate but definitely my research shows the the traditional and powerful organization it's very smaller one needed to play more active role instead to waiting for corporate sponsor to find you you may need to lobby to find corporate sponsorship yourself and i think in most of the charitable organization i know they already start this trend to seek actively seeking corporate sponsorship okay i think we have a question from online we could have a microphone down here and get to come to us away thanks Gordon um this is from Ruth on Facebook so it's a bit of an anecdote about her experience with amazon smile and then ends with a question or discussion point so she says recently amazon has allowed customers to see how much has been donated through their amazon smile purchases and over 29 amazon smile orders averaging about 20 pounds the website says that she's donated £1.98 which is much less than expected so she says with such a small amount of donations is it really genuine cause related marketing or just a gimmick that might actually stop people donating to charities well is um what i say is our cost of marketing because it's a marketing strategy for for amazon's what they have to do is they try to create websites and then if you purchase the product from these websites you will they will donate certain amounts to the charitable organization like the examples i gave to you how much to donate it depends on the companies so whether you are the customers you feel this you trust because you do you think whether this donation is because let's say this kind of cost of marketing is more like a price discount if you think the discount is bigger enough for you to purchase the products the same thing you can use up to customer to judge whether the donation amount is big enough for customer to make the purchase of the product but like i said the customer can be misled so needed to make sure they know exactly how much company is donating for the charitable organizations okay i have another question in the middle here the microphone's coming from your right hand side hi there um i'm Lydia from WWF the world wildlife fund um love seeing the coke example up there obviously um i'm really interested because lots of the examples you gave were from the states and it sounds from what i've heard about that the states is so far advanced and cause related marketing and the UK maybe hasn't caught up yet um do you do you have any sense why or why in the UK we might be a little bit further behind the states or will we catch up but i would say the customer marketing starts from united states and of course maybe they have longer history than in the UK's for customer marketing or um there's another another research about not about marketing it's not about customer marketing it's about corporate social responsibilities um it says um this research talk about and in america is more profit enterprise so company individuals donate to the charitable organizations in the europe probably not UK anymore soon well but be more like government led so there's a lot of public fundings involved to to the charitable organizations to grant to other things so maybe because of this i don't know i don't have any evidence to give define is there a wider cultural dimension to this i mean does it go on in non-english speaking areas to the same extent it actually happens a lot of the cultural marketing is recently in Asia because i cannot show you the example because no one will understand in the audience but there's definitely a lot but but the the key for the customer marketing for any customer marketing campaigns is about legilimencies it's about whether this campaign is legit enough for the customer or for you to believe we want to purchase companies products or like this company because of the cultural marketing campaigns without establishing the legilimency doesn't matter how good the campaign is like the last example i give it will receive negative public people it will receive negative PR more than positive okay a couple more questions there's one right at the back there with the microphone right there and then back to you hello marco a business growth club i can detect an error of cynicism in a room um and i wonder whether you had an example of where a big company and a big charity really got it wrong and shouldn't have got together i can't remember which example i can give you exactly the examples because um like i said i researched these topics since it was PhDs but i moved away around different topics so i can't give you an example on top of my head but they did have some in academic publications did mention about like some companies they doing something wrong in cultural marketing but i cannot give you a specific one okay and our own marketing expert here could we have a microphone please back to sorry gordon just one more for me um i wanted to talk to you about transactional rounding or charity tipping which seems to be this thing that's coming about quite a lot now you go pay for petrol you order a pizza as they frequently do um and it will say do you want to round up your transaction to give the remaining amount in that round to charity is that something that's quite popular do you have any research on whether that's been successful well um i don't have any i don't have any research in this areas but like i said in this kind of transaction promotion type of cultural marketing um for marketing's perspective the donations will be more like a price discount it's like you're going to the discount store what what's the percentage if this company give you 10% off you like to buy it you like to buy the products but in cultural marketing instead give you 10% off i say i donate 10% to the charitable organizations and whether the customer will be be attract by this 10% either discounts or or or in terms of donations will let customers to decide which one which is which so there's no right formulas to say which way is better but of course i can expect there's more research going to coming out what kind of percentage donate what kind of way to friend the wording the amounts like the marketing discounts research that's a huge literature see marketing in in in marketing literature is to say in price discounts how to friend the price discounts will get will attract people to buy the products i suspect in the future we're more about the cultural marketing the way the individual friend or the company friend the the marketing campaigns okay and the final question if you could come back to this one tucked in the corner there please thank you melvin hurley i admitted to mention that i run a small micro charity helping people back into work but my question relates to the causes and the marketing budgets it is pretty easy to work out what your marketing spend is going to be your first example actimal they knew exactly how many products they were going to produce with that unpack branding that means that they knew from day one exactly what the cost was going to be and we also know about redemption rates if there's an associated task with the cause purchase my question is have you become aware of any cause related marketing that is not worked out on fixed budget in the same way for example that the Hoover fiasco took place with their promotion on flights to the united states that might be protecting through insurance any other forms of cause related marketing where the budget isn't prefixed yes unfortunately i don't have any knowledge about but it's an interesting point it's an interesting point okay i think we'll wind things up at that stage let me return to the podium for this bit i've got to thank gordon for his stimulating lecture he stimulated a good discussion there cynicism was mentioned but that cynicism doesn't come without some informed interest and i thank gordon for informing us to the point where we could probe like that so thank you very much thanks for anybody who's joined us online it's the time of day when we would say good afternoon