Cause Related Marketing
The Academy of National Economy under the Government of the Russian Federation
Department of Economic and Social Sciences
Cause-related marketing
Written by Tryashina Daria, 3rd year student
Date : May 20,2008.
Moscow
Introduction
Altruism. Corporate responsibility. Philanthropy. These words are often used to describe cause-related marketing, an activity in which businesses join with charities or causes to market an image, product, or service for mutual benefit. Embracing a cause makes good business sense. Nothing builds brand loyalty among today 's increasingly hard-to-please consumers like a company 's proven commitment to a worthy cause. Other things being equal, many consumers would rather do business with a company that stands for something beyond profits. Cause-related marketing can positively differentiate your company from your competitors and provide an edge that delivers other tangible benefits, including: Increased sales, increased visibility, increased customer loyalty, enhanced company image, positive media coverage etc.
These rationales have been strong enough to ensure a rapid growth of the practice, driven by willingness of consumers to reward socially responsible behavior and give preference, at least all else equal, to companies that contribute to various public goods.
In the growing literature on economics of philanthropy relatively little attention is paid to an increasingly popular business strategy, known as cause-related marketing (CRM), when commercial firms tie to their brands and products contributions to charitable causes.
At the beginning of my working on the course paper, CRM seemed something inadmissible to me. I could not accept mixing marketing and charity, lust for the profit and a helping hand. But after looking deeper in the problem, after studying the cases of cause-related marketing campaigns I made up my mind. If that is the most attractive way of helping the indigent, then why not
Department of Economic and Social Sciences
Cause-related marketing
Written by Tryashina Daria, 3rd year student
Date : May 20,2008.
Moscow
Introduction
Altruism. Corporate responsibility. Philanthropy. These words are often used to describe cause-related marketing, an activity in which businesses join with charities or causes to market an image, product, or service for mutual benefit. Embracing a cause makes good business sense. Nothing builds brand loyalty among today 's increasingly hard-to-please consumers like a company 's proven commitment to a worthy cause. Other things being equal, many consumers would rather do business with a company that stands for something beyond profits. Cause-related marketing can positively differentiate your company from your competitors and provide an edge that delivers other tangible benefits, including: Increased sales, increased visibility, increased customer loyalty, enhanced company image, positive media coverage etc.
These rationales have been strong enough to ensure a rapid growth of the practice, driven by willingness of consumers to reward socially responsible behavior and give preference, at least all else equal, to companies that contribute to various public goods.
In the growing literature on economics of philanthropy relatively little attention is paid to an increasingly popular business strategy, known as cause-related marketing (CRM), when commercial firms tie to their brands and products contributions to charitable causes.
At the beginning of my working on the course paper, CRM seemed something inadmissible to me. I could not accept mixing marketing and charity, lust for the profit and a helping hand. But after looking deeper in the problem, after studying the cases of cause-related marketing campaigns I made up my mind. If that is the most attractive way of helping the indigent, then why not
Bibliography: Jocelyne Daw, Cause Marketing for Nonprofits: Partner for Purpose, Passion, and Profits, John & Sons, Inc., Wiley, 2006. Marconi, Joe, Cause Marketing: Build Your Image through Socially Responsible Partnerships, Programs and Events, Dearborn Trade Publishing, 2002. Pringle, Harnish and Mariorie Thompson , Brand Spirit: How Cause Related Marketing Builds Brands, John & Sons, Inc., Wiley, 2001. Lovelock, Christopher H. and Charles B. Weinberg, Public and Non-profit Marketing, CA: Scientific Press, Redwood City, 1989. Kotler and Andreasen, Strategic Marketing for Non-Profit Organizations, CA; Sage Publishing, Thousand Oaks, 2008. www.stjude.org www.nonprofit.about.com www.causerelatedmarketing.blogspot.com ----------------------- [1] A “halo” effect is one where the perceived positive features of a particular item extend to a broader brand. For example, it has been used to describe how the iPod has had positive effects on perceptions of Apple 's other products.