CAUSE RELATED MARKETING

DEFINITION

Cause marketing or cause-related marketing refers to a type of marketing involving the cooperative efforts of a "for profit" business and a non-profit organization for mutual benefit. It aims to link product or services of a company to a social cause.

HISTORY

The term ‘Cause Related Marketing’ was

actually coined during a 1983 campaign by American Express. In that campaign, every time an American Express Card was used anywhere by anyone, the company donated one cent to the Statue of Liberty Restoration Project. American Express saw a 17% increase in new users and a 28% increase in card use. The creation of the term is credited to American Express, who helped raise close to $2 million over a four-month period for the Statue of Liberty Restoration project.

CORPORATE SOCIAL RESPONSIBILITY

Corporate social responsibility and cause related marketing are more than buzz words today."Corporate social responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large

Corporate social responsibility is when the firm tries to give back to the society what it gains from it.

Cause related marketing is when it invests time and money towards a particular cause for earning profit.

Corporate Social Responsibility

Cause Related Marketing

CORPORATE PHILANTHROPY

Philanthropy derives from the Greek term Philanthropos, which means the "love of humanity“. Philanthropy broadly encompasses any altruistic activity intended to serve others, or the act of donating money, goods and services to support a socially beneficial or humanitarian cause, with no financial or material reward to the donor.

Primary focus-Organization

Time frame-Ongoing Goal-Improve and tie

organizational competencies to social cause

Outcomes-No key outcomes

Funding-Fixed

Product Traditionally of limited

duration Goal- Increase product

sales Outcomes-

Sales,Attitude, Intention

Funding- Variable

Cause related marketing Corporate Philanthropy

CAUSE RELATEDMARKETING OBJECTIVES:

Building corporate, brand and product awareness Increasing sales and income Developing trial and repeat purchases Promoting a new product Promoting differentiation Adding value.

ADVANTAGES OF CAUSE RELATED MARKETING

Cause-related marketing can directly enhance sponsor sales and brand.

Cause-related marketing is respected and accepted business practice.

Cause-related marketing can heighten customer loyalty.

Cause-related marketing can boost a company's public image and helps distinguish it from the competition. I would add that it can also give corporate PR officers a new story to tell.

Cause-related marketing can help build employee morale and loyalty.

Cause-related marketing can improve employee productivity, skills and teamwork.

CAUSE RELATED MARKETING BENEFITS

Attracting and Retaining Customers:  Market Differentiation:  Outreach to Niche Markets:  Motivated and Loyal Employees:  Reinforced Company Mission: 

CAUSE RELATED MARKETING & SALES

Cause related marketing is one of phenomenal tool of marketing practice, which has significance effect on sales of the companies. The potential consumers got positive effect on their purchase intention. Consequently rise in brand loyalty make consumer to purchase bulk quantities, re-purchase and they also help in creating positive words of mouth about brand and company that eventually increases sales of corporate sector.

INDIAN SCENARIO

Indian consumers find cause-related marketing campaigns more novel and attribute higher levels of altruistic motives for companies engaging in this tactic . Indian consumers are also more positive when campaigns are undertaken by an Indian company versus a multinational corporation.

CAMPAIGNS IN INDIA

Procter & Gamble (P&G) -Project Drishti, ‘Shiksha’

Fair & Lovely Foundation-'Project Saraswati'

Horlicks -Ahaar Abhiyan

Aircel- Save Our Tigers

Tata Tea- Jaago Re

PROJECT DRISHTI

Project Drishti was aimed to restore sight for nearly 250 blind girls across the country. It was the first ever sight restoration corporate project which was undertaken in association with the National Association for the Blind (NAB). As a part of this, for every pack of Whisper sold, Re 1 went for the project. 

SHIKSHA

Shiksha’ is a program by P&G, in association with Child Rights and You (CRY) and Sony Entertainment Television, which aims to support the education of children in India.

JAAGO RE

Tata Tea, one of India’s largest tea brands,

started Jaago Re. The Jaago Re One Billion Votes campaign, which was well-timed (in terms of launch) with the Indian elections, spread the message of the need to vote among citizens. It is estimated that over 6.5 lakh Indians used the platform to register as voters.

'PROJECT SARASWATI'

'Project Saraswati' undertaken by the Fair & Lovely Foundation, promoted economic empowerment of India’s young women. Under the project, scholarships of up to a lakh were awarded to young deserving girls from across the country to pursue their graduate and postgraduate course. 

AHAAR ABHIYAN

Horlicks Ahaar Abhiyan is an initiative that aims

to increase awareness among mothers, families and communities about the issue of malnutrition among children in the age group of 3 – 6 years. The initiative will be implemented in a phased manner beginning with a pilot project, in partnership with CARE India, in the state of West Bengal and with Save The Children, in the state of Tamil Nadu.

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