Services Marketing

MBS Marketing Class, 2004

Cause Related Marketing: Applying the Services

Marketing Triangle
Submitted by:
Meaghan Daly
Denise Gallagher
Louise Gallagher
Kai F. Mahnert
Date of Submission: 29th March 2004
Submitted to: Aidan Daly,
Department of Marketing, National University of Ireland, Galway

1.

Introduction

Service marketing literature concentrates on the differences between products and services
marketing (Brown, Fisk and Bitner, 1993; Lovelock, Vandermerwe and Lewis, 1999;
Shostack, 1997). While this distinction may have been useful in the early developmental
stages of service marketing literature, such a differentiation provides little future direction for
research.

It is imperative that academics and practitioners concentrate on solving or

attempting to solve the issues that arise in service marketing practice. Such issues are
external marketing, internal marketing, and interactive marketing. This paper proposes to
demonstrate that cause related marketing serves as a useful tool to resolve the problems that
are found in services marketing. To this end, the service marketing triangle will be examined
to establish the unique issues arising in service marketing. The application of cause related
marketing as a tool for meeting these challenges will be discussed. The paper will conclude
with a discussion of the findings and directions for further research arising from the findings.

1.1

Objectives and Methodology

The nature of the concept discussed in the paper is entirely exploratory, with the goal of
establishing a framework for future research. The primary objective of the paper is to apply
two previously unrelated areas, cause related marketing and service marketing. Following
from this, the paper aims to assess the applicability of cause related marketing to three key
areas of service marketing: internal marketing, external marketing, and interactive marketing.

Primary research, such as qualitative interviews or quantitative data surveys were not
considered suitable methods of research, due to the time constraints of the study.
Additionally, a principal motivation of this paper is to express the authors interest in a
specialised area of service marketing. To facilitate this, it was agreed to base the paper solely
1

on the existing literature in the fields concerned, with the aim of producing a framework with
which to link three distinct areas of marketing literature.

While this paper is based on the results of secondary research only, the compromises of such a
method can be minimised. It was intended to restrict the study to existing literature, which
covers varying industry sectors and country boundaries. In this way, the occurrence of
industry or country bias would be eliminated (Pracejus, Olsen & Brown, 2003). The literature
from which the paper is drawn consisted of seminal readings across three areas of research:
services marketing, internal marketing and cause related marketing. As the articles were
accessed in peer-reviewed publications, the level of validity and reliability of the information
was increased by using these publications as external auditors (Drumwright, 1996).

2.

The Service Marketing Triangle

The Service Marketing Triangle

Company
Internal Marketing

Employees

External Marketing

Customers
Interactive Marketing

For the purposes of this paper, the services marketing triangle (Kasper, Heldsingen and de
Vries, 2000; Zeithamel and Bitner, 2001) will be used as a framework for examining service
marketing. The triangle is a concept that links the three elements of service marketing:
organisation, employees, and customers. Three levels of marketing are deducted from this
framework:

Internal marketing from the organisation to the employees

External marketing from the organisation to the customer

Interactive marketing that occurs between the employee and the customer during
service consumption

The service marketing triangle does offer limitations and assumptions, such as the lack of
consideration of customer interaction and the equal importance of each of the elements
(Lovelock, 1996). It is, however, an important tool in understanding service marketing. The
implications of the service marketing triangle are varied, and a limited number of these
implications can be discussed in this paper. The importance of the service employee in
service delivery is a key implication, due to the nature of interactive marketing. The concept
of internal marketing as a method of communicating to and motivating service employees is
highlighted by the theory.

The method in which the organisation presents itself to its

customers in its marketing communication activities is key to ensuring success of the service
organisation.

2.1

Interactive Marketing

2.1.1 The Importance of the Service Employee

The current service marketing literature emphasises a number of issues arising from the
practice of service marketing.

The characteristics of services enable marketers to

conceptualise these issues into meaningful classifications.

Services by their nature are

consumed at the time of purchase. Such an intricate relationship between the customer and
the service has led many authors to emphasise the importance of the service employee in
service delivery (Heskett et al., 1994).

Due to the fact that most services are consumed or used at the moment of production, the
services industry relies heavily on hiring and training its people to create an experience
instead of a product, an experience in the view of the customer or often while interacting with
them (Ford, Heaton and Brown, 2001). Hence, employees not only need the skills to do the
job, but also the skills to manage the customers at moments of truth. The term refers to the
multiple contacts that the customer has with the organisation and its employees regardless of
how remote, but where the consumer can form an impression on the incident (Carlzon, 1987).
The term is relevant to all firms, both product and services, in describing the importance of
every contact or encounter the customer has with the organisation and its employees any one
of which can make or break the relationship.

The services industry realizes that its people must perform their jobs with a smile and a
friendly facade. This is especially true if they are in customer-contact jobs. This means that
happy consumers are, the majority of the time, directly related to content employees. Thus,
the industry spends considerable time and energy making sure that its employees are pleased
in their jobs so that they can spread their sense of enjoyment to the customers (Swell and

Brown, 1990). However, even employees behind the scenes can negatively influence overall
customer satisfaction if they are not cheerful and not supporting a customer-oriented culture
(Zeithaml and Bitner, 2001).

2.1.2

Managing the Service Employee The Use of Company Culture

The company culture within the services sector must be carefully planned and communicated
to all employees. The more intangible the offering to the customer, the stronger the cultural
values, beliefs, and norms must be in that particular service organisation. As a result of this
idea, good managers know that the values, beliefs, and norms of the behaviours taught to
employees by the company culture become critical in ensuring that each front-line employee
does what the organization wants done in unanticipated situations (Ford, Heaton and Brown,
2001). When the company culture is well communicated a feeling of dedication to the
companies norms becomes stronger. Culture can be taught or conveyed in a number of
interrelated ways. It can be inspired via formal training programs, modelled by managers and
other employees, and story telling (Freiberg and Freiberg, 1996).

A strong culture also gives meaning to employee jobs. All employees want to feel important
and that his or her work contributes to something greater than what they can do by themselves
(Kouzes and Posner, 1995).

For example at Disney, Disney employees learn that their

mission is to create happiness.

Disney advertisements, the community programs they

sponsor, and the organization's training and reward systems all teach and reinforce this value.
Their job is no longer to merely give directions, load rides, or sweep streets. It is now to be
part of a greater cause of providing happiness (Ford, Heaton and Brown, 2001).

With an organized company culture and employee commitment there is more overall
effectiveness within the service sector.

There is considerable research that tiesan

5

organizations financial performance with the perceived quality of its services (Luthans, 1988).
Moments of truth with customers where perceived quality is formed are the interactions
customers have with front line employees.

These are caused by the organizational

performance and culture of the company. Bergstrom, Blumenthal & Crothers (2002) suggest
that commitment is best stimulated through an appropriate culture.

However, the

establishment of a particular culture is complex and time-consuming (Brink, 1991).

Furthermore, while culture has a strong influence on employee behaviour, it may not suffice
as the singular tool for the communication of appropriate behaviour. Thus, a more planned
approach must be taken. It has been suggested in the literature, that one such approach may
be the practice of internal marketing (Berry, 1981; Grnroos, 1981; Tansuhaj, Randall &
McCullough, 1988; Piercy & Morgan, 1991; Joseph, 1996; Hogg, Carter & Dunne, 1998;
Rafiq & Ahmed, 2000).

2.2

Internal Marketing

Recent developments in the literature and empirical research in the field of service quality
have yielded findings suggesting a significant correlation between the degree of commitment
to the organisation among employees, and the quality, consistency and coherence of the
service experience (Burghausen & Fan, 2002). Thus, it would seem that the achievement of
commitment to the organisation among employees is a worthwhile endeavour.

2.2.1

Functions of Internal Marketing

Internal marketing was originally proposed as a means of employee motivation through

tailoring job products to employees needs (Berry, Burke & Hensel, 1976). According to the
theory, staff would then be more willing as well as more capable to deliver superior service
and consequently increase customer satisfaction. A second paradigm in the internal marketing
literature concerned the notion of internal markets, with internal suppliers and internal
customers (Barnes & Morris, 2000). According to this orientation within internal marketing,
an internal approach to quality exchanges similar to the principles of Total Quality
Management would serve in increasing internal efficiency and effectiveness, motivate staff
through better relationships and ultimately result in a better product or service offering.

Grnroos (1981) sees the ultimate goal of internal marketing in the communication of
organisational values and objectives to employees in order to stimulate organisational
commitment. The author differentiates between internal marketing at a strategic and a tactical
level. The former refers to the creation of an internal environment bolstering customer
consciousness, while the latter refers to the internal promotion of particular marketing
activities to employees (Grnroos, 1981). Thus, internal marketing fulfils both the function of
establishing a fertile culture for the stimulation of commitment as well as facilitating
commitment through the communication of organisational goals and objectives.

The three functions of internal marketing outlined above can be sequentially linked.

The attraction and retention of suitable employees to the organisation

The communication of organisational goals and objectives to these employees

Facilitation of the establishment of efficient and effective internal supplier-customer

relationships aimed at the ultimate target of increasing customer satisfaction.

2.2.2

Benefits of Internal Marketing

The result of such an integrative approach to internal marketing is motivated, committed and
empowered employees capable of translating organisational targets into suitable behavioural
patterns. Given the need for consistency, coherence, integrity and the reduction of the gap
between image and perception (de Chernatony, 1999) in services marketing, internal
marketing offers a considerable benefit to service organisations (Turpin, 2003).

2.2.3

Issues in Internal Marketing

According to Shipley (1994), resistance can occur in internal marketing. Before internal
marketing can be considered, the necessary environment has to be created in which internal
marketing is more likely to be fruitful. This notion is consistent with Grnroos (1981)
concept of internal marketing at a strategic level.

The issue of service quality measurement in internal marketing is commented on by Reynoso

& Moores (1995) in the context of the internal market suppliers and customers paradigm,
however the authors criticism is applicable to at least some aspects in all of the major
orientations of internal marketing. According to the authors, service quality measurement
frameworks such as SERVQUAL (Parasuraman, Zeithaml & Berry, 1988) are too stringent in
their identification of relevant dimensions, thus reducing their transferability of such generic
criteria across different sectors. Furthermore, the authors argue the mere adaptation of such
models, as proposed by, for example, Frost & Kumar (2000) or Straughan & Cooper (2002),
to be insufficient on the grounds of a lack of research supporting such a claim. Thus, an
individual approach in each case may be more useful, as shown by Bruhn (2003, p. 1187) in
his development of an internal service barometer for Novartis.

A crucial element of internal marketing is the type, content and context of the message being
conveyed (Goetting, 2000). Not only does the message need to be internally consistent, a
match needs to be made between internal and external messages communicated by the
organisation. Furthermore, to create enthusiasm among both employees as well as consumers,
an engaging, uniting, underlying principle needs to be established to tie all communication
together (Sonnenberg, 1991).

2.3

External Marketing

Internal and interactive marketing can be considered more recent paradigms in marketing
thought. However, external marketing is a more established theory within marketing, and
therefore within services marketing.

External marketing involves all aspects of

communication between a firm and its external publics. The service marketing triangle
identifies external marketing as an essential tool in an integrated marketing communications
campaign.

2.3.1

Objective of External Marketing

A service firm uses external marketing to communicate its offerings to customers. External
marketing represents a method by which firms may communicate their promises to their
publics. These publics consist of customers, shareholders, the general public, government,
and competitors (Pelsmacker, Geuens and Bergh, 2001). The promises communicated include
the benefits that the service will provide, the return on investment, policies on the
environment, and compliance to regulations and legislation (de Chernatony, 1999).

2.3.2

Methods in External Marketing

The methods used in external marketing are wide ranging, and involve all of the tools in the
communications marketing mix. This includes sales promotion, advertising, personal selling
and corporate design (Lovelock, 1996). While it has been demonstrated that the employee
carries out marketing of the service firm, the importance of the more traditional methods of
marketing communications cannot be ignored. The balance of these varying elements is
crucial, with managers forced to allocate budgets and commitment to each depending on the
objectives of the campaign. Each of the individual elements involve a number of managerial
decisions; choosing agencies, setting objectives, selecting media and audiences (Wilson and
Gilligan, 2001).

2.3.3

Promise Management

A key issue in external marketing is managing the service promise to the customer (Farrell,
Souchon and Durden, 2001). Conflict may arise between what the customer has come to
expect from the service and that which is delivered by the service organisation. It is the role
of external marketing to ensure that operations and marketing are in agreement as to the
promise made and the service received. The literature identifies a number of methods by
which the service promise to the customer may be managed (Farrell, Souchon and Durden,
2001). Organisations must create effective services communications, ensuring that there is no
ambiguity in the message. In addition, promises made must accurately reflect the service that
will be delivered (Farrell, Souchon and Durden, 2001; Zeithamel, Berry and Parasuranam,
1988).

External communication must be organised such that it represents an accurate

reflection of the service organisation.

Realistic promises must be made based on the

capabilities of the organisation. Reassurance must be offered to the customer in the form of
service guarantees, such as money back or complaint resolution promises.

10

2.3.4

Service Branding

The argument has been made that services are intangible dominant (Shostack, 1977). The
challenge therefore for service managers is to tangibilise services (de Chernatony, 1999). A
method of tangibilising services is to build a service brand. In order to build and reinforce a
brand, a firm must concentrate on a number of external marketing activities. Such a branding
task involves assessing the position that a service holds in the competitive environment and
assessing consumer perception of the brand. In order to move the consumer perception of the
brand to the desired location, branding communications must be carried out (Keller, 2003;
Wilson and Gilligan, 2001). Such communications include endowing the service with a
personality, with characteristics such as caring, vibrant, mature.

This may be achieved

through the use of sales promotions or advertising.

Thus, external marketing plays a critical role in service marketing. It allows a firm to
communicate with its publics. It enables the firm to set promises and build expectations
regarding the service firm. It allows the firm to build a brand and communicate this brand to
the public.

3.

Application of Cause Related Marketing to the Services Marketing Triangle

This paper proposes that the practice of cause related marketing by the firm is an appropriate
tool in the context of service marketing. In order to accomplish this, the concept of cause
related marketing will be defined, and the key benefits of the practice will be discussed. It
will be demonstrated that the literature gives credence to the belief that a cause related
marketing campaign can motivate employees and improve the success of external marketing
communications of the service firm.

11

4.

Cause Related Marketing

4.1

Definition of Cause Related Marketing

There are many definitions of cause related marketing, and they range from specific, strict
definitions to much broader views (Webb & Mohr, 1998). For the purposes of this paper, an
adapted definition of cause related marketing as outlined by Mullen (1997) will be taken.
Cause related marketing is offered as a strategic marketing approach that corporations can
use to target non-profit organisations and create giving strategies that balance both
organizations' goals

This definition encompasses a broader range of activities that are considered as cause related
marketing. Such activities include donations of money, products or services, secondment of
staff and joint promotions of events or campaigns. The usefulness of the concept in service
marketing is thereby increased, as not all firms will carry out cause related marketing to the
strict sales-related definitions as outlined by other authors (Chaney and Dolli, 2000;
Varadarajan and Menon, 1988). Cause related marketing offers many key benefits to a firm,
the principle one being increased revenues and customers.

4.2

Key Benefit of Cause Related Marketing

A cause related campaign can be expected to bring a broader customer base to a firm (Chaney
and Dolli, 2000; Barnes & Fitzgibbon, 1991; Sen & Bhattacharya, 2001). Hurd (2003) points
out that a cause related marketing campaign can introduce new users, and build loyalty with
existing users. A survey carried out by Cone/Roper in 2002 discovered that, price and quality
being equal, a consumer would switch to a brand that promotes a cause in 81% of cases
(Higgins, 2002), while Lachowetz and Irwin (2002) demonstrate that price elasticity exists in
12

cause related marketing campaigns. Williams in Navitel and Noya (2003) claims that those
firms who refer to environmental and social issues will display more positive financial results
than those who do not. Strahilevitz and Myers (1995) found that firms that provide luxury
goods are more likely to experience such increases, as the purchase acts as a guilt reliever.
Additionally, these authors claim that customers have demonstrated a preference for a
donation to a charity rather than a reduction in the price of the product. Customer behaviour
therefore changes in the context of cause related marketing activities. Service firms will have
the opportunity to adapt external marketing communications to take advantage of these
behavioural changes.

4.3

Cause Related Marketing and Employee Motivation for Interactive Marketing

While interactive marketing involves the interactions between the employee and the customer
in the service location, this paper will concentrate on employee motivation as a method of
increasing quality in interactive marketing and internal marketing. The goal is to demonstrate
that employees will become more motivated through their participation in cause related
marketing campaigns, and this will positively impact interactive and internal marketing
activities.

4.3.1

Methods of Employee Participation

Cause related marketing offers many opportunities for employee participation (Bruce, 1994;
Lewis, 2001; Smith, 1994). Knox and Ashworth (1985) specify that firms can create and
allow access to a skills bank. This is particularly relevant to professional service firms, for
example consulting firms and accounting firms.

Employees can develop their skills,

particularly in entry-level positions, by working with charities, who are not necessarily key
customers of the firm.

13

Firms may also encourage employee participation in a cause related marketing campaign.
Firms may support their employees in voluntary activities and secondments. This can also
take the form of employee payroll deductions, which can be distributed through a special trust
fund or community trust. In addition, employees can actively participate in the non-profit
organisation, both formally and informally. (Ettorre, 1995; McKaughran, 1997;Young, in
Noya and Navitel, 2003)

Informal support can involve employer support of an employees volunteering for a non-profit
organisation (Norton, 1984). This can also include former workers, now retired, working for
a charity. While not being paid directly by a firm, the volunteer is in receipt of a company
pension, and is thus being compensated by the firm.

Formal employee participation is

included in the job description of the employee, and may be assessed through employee
appraisals.

This classification may also include secondment of staff to a non-profit

organisation. Knox and Ashworth (1985) identify three employee career stages that may
benefit from such secondment: practical experience for newly appointed managers, a
challenge for existing managers and a method of facilitating employee exit from a firm, for
example retirement. Such a view is echoed by Norton (1984), who also adds part-time
secondment, where specific employee skills are matched to a charity.

Mullen (1997)

highlights the participation of staff in a corporate giving programme as a method of employee

participation.

14

4.3.2

Benefits of Employee Participation

A number of benefits exist for all parties involved in secondment of staff, as outlined in the
table below:
Employee
Development of new and existing
skills

Seconding Company
Broadened experience of employees,
often cheaper than professional seminars
(Philips, 2000)

Development of an interest in social

problems and solutions

HRM issues: retirement, redundancies

made more manageable

Learning new concepts, cultures, values Opportunity to influence community life

(Knox and Ashworth, 1985; Mullen,
1997)
Developing community values and
culture
Employee motivation and positive
impact on recruiting new employees
(Ettorre, 1995)
Adapted from Norton, 1984

Thus, it is clear from the table that many benefits are gained from employee participation in
cause related marketing. One of the key benefits of cause related marketing as outlined in the
literature is the increase in employee morale during and following a cause related marketing
campaign. (Chaney and Dolli, 2000; Kotler and Andreasen, 1996; Lorge & Brewer, 1998;
Warren, 2003) Hurd (2003) develops this point further, stating that workers who have little
direct contact with customers, for example in an ecommerce firm, can gain personal
satisfaction from a cause related marketing venture.

While interaction between service

employees and customers has been highlighted as a key issue in service marketing, back
office staff can also contribute to service delivery. In addition, it can also vary the marketing
task and functions, allowing for a greater variation of work, to stimulate employees.

15

Mullen (1997) argues that employee productivity and allegiance will be increased following
firm participation in a cause related marketing campaign. Programmes such as Volunteer of
the Month can be used to champion employees involved in volunteerism. Roper Center
surveys have shown that 38% of employees will declare themselves proud of their
organisations if they are conducting a CRM campaign (Higgins, 2002), a view echoed by
Norton (1984).

4.4

Cause Related Marketing and Internal Marketing

Young (in Noya and Navitel, 2003) argue that involvement in cause-related marketing can be
a method for firms to access potential staff with specific skills, for example event
management, in addition to boosting the morale of existing staff, a view echoed in Ettorre
(1995).

This view concurs with service marketing literature on the subject of service

employee recruitment and selection. Brennan (2000) claims that the retention of quality
employees can maintain a competitive edge. Drumwright (1996) also found that firms were
using social advertising campaigns to communicate the mission of the firm.

It follows, therefore, that there is a reciprocal impact of the two concepts of cause-related
marketing and internal marketing on one another. Cause related marketing may serve as an
organisational principle to unite internal and external communication and activities. Internal
marketing also reinforces business practice aligned with the concepts of cause related
marketing. With both concepts becoming firmly embedded in organisational culture through
reinforcing internal marketing programmes, a consistent, coherent and credible reflection of
the service organisation is communicated internally and externally. Consequently, favourable
imagery is created in consumer minds, which is manifested in reality through the aligned

16

behavioural patterns of committed employees, thus reducing variability in the service

encounter.

4.5

Cause Related Marketing and External Marketing

Cause related marketing campaigns impact on the external marketing activities of a service
firm by transference of brand values and positive media attention.

4.5.1

Transfer of Brand Values

If building a trusted brand is your desired result then cause-related marketing should be a
part of the mix.
Hurd, 2003 p 19

Service firms engage in brand building activities through communications with their external
publics (de Chernatony and Segal-Horn, 2001). Cause related marketing campaigns have
been shown to aid firms in their development of brands. Positive attributes of a charitys
brand can be transferred to a firm during a cause related marketing campaign (Andreasen,
1996; Kotler and Andreasen, 1995). Hurd (2003) argues that a cause related marketing
campaign can endow a brand with values such as quality, fun and humanity. American
Express is generally accepted to have gained the brand values of public responsibility and
patriotism. (Barnes & Fitzgibbon, 1991; Josephenson, 1984) This form of promotion can
also be used to transfer new values to an existing brand in a more subtle way (Kotler and
Andreasen, 1996; Simcic, 2001). Cause related marketing can be used to build a brand with
suppliers, retailers and other business partners. (Drumwright 1996; Kotler and Andreasen,
1996). Mullen (1997) points out that firms who place profits ahead of community and
employee values will be criticised by the public. Till and Nowak outline that a cause related

17

marketing campaign can help a firm to communicate cognitive information about a brand, and
that this is best done over time. However, Sen & Bhattacharya (2001) argue that further
research is needed into the relationship a firm has with its customers, based on more than the
brands that they offer.

4.5.2

Positive Media Attention

According to the service marketing triangle, services firms engage in communications with
their many publics. This paper argues that a cause related marketing campaign can allow a
firm to benefit from positive publicity, particularly with press already associated with a
charity. (Fernstrom, 1983; Hayes, 1999; Hurd, 2003) Barnes & Fitzgibbons (1991) discuss
that such a campaign can bring a locally recognised firm or cause to national attention. This
can save on advertising and other promotional costs (Andreasen, 1996). Additionally, it is
argued that a firm can use cause related marketing to break through advertising clutter
(Drumwright, 1996; Irwin et al., 2003, Lachowetz and Irwin, 2002). Firms that require
positive public relations in a time of crisis, for example an oil company after a spill, can use
cause related marketing to gain public support (Kotler and Andreasen, 1996; Fitzgerald, 2001;
Mullen, 1997; Webb & Mohr, 1998; Varadarajan and Menon, 1988). In addition, firms give
to create goodwill, and to be viewed as a good corporate citizen by the public (Norton, 1984).
However, caveats must be employed. Till and Nowak (2000) caution firms that have a
negative image that involvement in a CRM campaign may experience negative rather than
positive publicity.

Drumwright (1996) argues that a firm can also experience negative

publicity due to a social advertising campaign.

18

5.

Summary of Findings

Service marketing literature has shown that there are three key elements in service marketing:
employees, customers, and the firm. These elements interact in three ways: internal
marketing, external marketing, and interactive marketing. This paper aimed to
assess cause related marketing from the viewpoint of the services marketing
triangle. The triangle has been adapted to reflect the application of cause related
marketing to the service marketing process, as below.

Fehler! Keine gltige Verknpfung.

Thus, cause related marketing as a strategic marketing tool offers much to a service marketing
firm. Internal marketing benefits from the improvements in attraction and retention of service
employees. In order to engender belief in the goals of a cause related marketing campaign,
firms must develop a method of communicating these aims through the organisation to
employees. This can be achieved through developing a competence in internal marketing.
Interactive marketing will benefit from employee participation in cause related marketing
activities. A unique company culture will be developed. This will in turn increase motivation
of employees in their roles, which has the result of improving the quality of service delivery.
External marketing will be affected by the ease of transfer of brand values of the service
organisation. In addition to this, a cause related marketing campaign offers service firms an
opportunity to utilise the positive publicity to realise savings in marketing costs, and build the
firms image and mission.

Implications of Findings and Directions for Further Research

19

This paper offers many implications for service marketers, and additionally points to areas
that are ready for further research.

Service marketing students can now broaden their

understanding of cause related marketing. The concept has thus far been discussed at a
general level, with no clear emphasis given to its usefulness in service firms.

Service

marketing practitioners can view this paper as evidence that cause related marketing
campaigns have much to offer any firm. In addition, cause related marketing can be viewed
as a solution to many of the problems cited by service managers, such as employee motivation
and retention (Brennan, 2000).

In terms of academic research, a number of key issues must be highlighted. As the findings
contained in the paper are based solely on secondary research, it is exploratory in nature.
Empirical work is needed to assess the applicability of the findings in practice. The authors
wish to suggest several research propositions that may be useful to guide future research in
the area of applying cause related marketing to service marketing (Webb & Mohr, 1997).
While not an exhaustive list of areas that would benefit from research, this offers a starting
point to those researchers who have developed an interest in the application of cause related
marketing to the marketing strategy of a service firm.

Cause related marketing can influence customers expectations of service quality in a

participating firm.

Service firms have much to offer non-profit firms due to their ability to donate
employee time and services. They are inherently better placed to participate than are
product firms.

Cause related marketing can aid a service firm to brand the service, in particular to
prepare a service firms entry into a global market.

20

6.

Conclusion

This paper had the primary objective of assessing the applicability of cause related marketing
to the service marketing literature. To achieve this, service marketing was analysed using the
services marketing triangle, using the three processes of internal marketing, external
marketing and interactive marketing. Each of these was defined and the relevant issues were
discussed. A definition of cause related marketing - interactions between a firm and a nonprofit organisation to achieve organisational goals of the firm was offered. The key tangible
benefit of a campaign, an increase in business activity, was outlined. Following this, the
benefits of employee participation and motivation in a cause related marketing campaign was
outlined, and applied to interactive and internal marketing. In addition, the benefits of
transfer of brand values and positive publicity resulting from a cause related marketing
campaign were assessed in the context of external marketing in the service firm. To conclude,
the authors offer implications of the findings and guidelines for further research. It is hoped
that this paper serves to highlight an expanding area of marketing, cause related marketing,
and stimulates interest in its applicability to service marketing. Such improved interest can
only lead to a greater knowledge and understanding of an area of marketing that shows great
potential for the future.

21

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