Study On The Relationship Between Donation And Profitability Based On Public Welfare Marketing

As a new kind of marketing strategy which can not only reflect the socialresponsibility of consumers, but also maintain and improve the relationship betweenenterprises and consumers, public welfare marketing is increasingly concerned bydomestic and foreign managers and research scholars. In2002, LU Taihong and LIRongwu introduced the concept of public welfare marketing into China for the firsttime, but were not taken seriously by Chinese scholars. The development of publicwelfare marketing in theory is not mature enough, and has not yet formed a relativelycomplete theoretical system. Chinese enterprises and their managers have made anearly strike in the ideology and practice of public welfare marketing. Many Chineseforward-looking enterprises have realized the value of public welfare marketing, andbegan their exploration in practice. Based on public welfare marketing, this paperconsiders donation as one means of public welfare marketing. Based on getting rid oftwo Chinese traditional concepts, means charity is public welfare to charity anddonation doesn’t belong to marketing, this paper uses Chinese listed companies’ truefinancial date to preliminary analysis the quantitative relationship between donationand profitability. This paper hopes to be able to enrich the theory of public welfaremarketing, and promote the improvement and innovation of our public marketingtheory and practice.Based on the perspective of public welfare marketing, we empirically analyze therelationship between donation and profitability. To begin with, in order to examine thetrend of donation and profitability for Chinese listed corporations, this paper uses thedata of Chinese356listed corporations over the period from2009to2011as researchsample and makes a descriptive statistical analysis for donation and profitability. Then,this paper uses donation as independent variable and profitability as dependentvariable, and analyzes the relation between public welfare marketing and profitabilitywith the usage of OLS model, fixed effects model and random effective model.Furthermore, using the results of multiple linear regression and F-test, Hausman test,LM test, this paper get the conclusion that there is simultaneous causality betweendonation and profitability. Finally, this paper gives seven steps for the effectiveconduct of public welfare, it concludes that anglicizing the environment of publicwelfare marketing; making plan for public welfare marketing; finding beneficialpartnership; establishing managing team for public welfare marketing; carrying out effective communication; controlling and evaluating.