CDK's purchase of Auto/Mate may create a major disruption in the dealer management system (DMS) industry. Here is our take. DOWNLOAD
Sean Buda@ caffeineforclosers.com
Social responsibility and ethical business practices reveal actions taken by organizations to promote positive behavior. Taking social responsibility seriously sends a positive marketing communication to consumers, shareholders, and employees. Not only is social responsibility is the right thing to do, but it is a pivotal element in creating brand equity. Because brand equity develops and evolves overtime, companies must recognize the importance of their strategy; keeping social responsibility at the forefront of their campaigns and initiatives is important in successful branding.
Sending positive marketing communications help inform and remind consumers and the public about the products and services the company represents. When a company engages in social responsibility, the company shares many benefits. Doing the right thing and supporting ethical practices can provide marketing communications that incur no cost. Free PR from advertising channels, provides an excellent way to reach target markets with a positive message and keep a business front of mind. Even if the ethical practices do not lead to free publicity, the acts do not go unnoticed because of word-of-mouth marketing and personal selling. When employees and individuals in the community talk about experiences they have been involved with or are proud to represent, the company is capturing an emotional appeal and personal selling. This personal interaction is priceless and most importantly social responsibility is the right thing to do. Satisfying brand awareness, brand attitude, and creating a purchase intention are categorical successes that can be the result of social responsibility within a community.
Social responsibility also represents the respect that a company has for its environment. The term environment in this instance really represents a company’s community, global or local, internal or external. Engaging in the company’s environment provides an opportunity to enhance reputations, break down barriers, and impact lives.
The increased amount of consumers researching companies, products, and services via the internet continually has companies in a fishbowl. Engaging in social responsibility and publishing it is very important. A positive channel to communicating and publishing their engagements is the internet. With most search engines having a rating and testimonial selection, there is nothing more positive than individuals talking about the good deed done or having a published article regarding that social responsibility high on the search engine results. When publishing good deeds and positive behavior, the companies engage consumers and their community. Blogs and tweets online also represent word-of-mouth marketing and can be used to promote positive behavior. These channels of word-of-mouth sources come with creditability, a sense of expertise, trustworthiness, and likeability that is hard to achieve using other marketing channels.
Social responsible companies enhance their brand equity though the positive messages they send by making good decisions. Brand equity is commonly considered important when dealing with consumers; however, brand equity is even more important for the internal employees of a company. When attracting new talent to an organization, it is critical for a company to share or already be recognized as a leader with strong brand equity. Brand equity is more than just the name of the product offering, it is the whole company and everything the company represents. Increasing brand equity in a brand is pivotal to expanding market share in an environment of fierce competition. Coordinating media to build brand equity is successful when a clear message is communicated.
Encouraging environmental advancement can be done for free creating awareness and promoting initiatives. Best practices in multiple industries include using the internet and social media to create awareness of what companies are doing or supporting. Regardless of the level of a company’s involvement, many companies have an opportunity to promote community initiatives though their complex customer relationship manager (CRM), email blasts, tweets, social media postings, and banners on their websites. For example, if there is a fundraising campaign to support clean water in third world countries, all a company needs to do is indicate and communicate to their customers an awareness. Without directly contributing dollars to the cause, the company creates awareness that they support social responsible events. These friendly communications from the company to customer are a great way to keep the company’s name in front of the customers.
Social responsibility has a direct correlation to brand equity and representation. Revealing a company’s values, promotes positive relationships with consumers, shareholders and employees. Branding overtime will always be an evolving element that companies must recognize. Keeping social responsibility at the forefront of their campaigns and initiatives is important in successful branding. Social responsibility represents the respect that a company has for its internal and external community. Multiple media channels can be used to promote engagements that a company is involved with. Communicating this information and participating in ethical business practices has many moral benefits, financial benefits, and morale advantages. Reputation though repetition of a company’s actions establishes their image and branding. Social responsible activities are not only the right thing to do; but, it is a wonderful way to establish brand equity.