Cause marketing

Cause - Related Marketing ( CrM ) describes a type of marketing that represents the collaborative efforts of a company and a non-profit organization for mutual benefit in the center. The term is used sometimes very broad and general to any type of marketing effort for social and other charitable causes, including in-house marketing efforts by non-profit organizations. Cause marketing differs in that the power to the cooperating NPO rarely takes place in the context of a cause-related marketing relationship in the form of a donation from corporate giving ( philanthropy ) that has a specific, earmarked donation that is tax deductible provides.

History

One of the first cause-related marketing campaigns created in 1976 through a partnership between Marriott Corporation and the charity organization March of Dimes. Marriott's goal was to cost-effectively generate PR for the opening of its 200 -acre Marriott's Great America in Santa Clara, CA. March of Dimes on the other side saw a good opportunity to improve their own fundraising. The measure was carried out simultaneously in 67 cities in the western United States and evaluated as very successful.

The program was conceived by Bruce Burtch. Burtch deemed to be the author of the phrase " Do Well by Doing Good". This was in 1977, his response to the CEO of a large company on the question of how to define the goal and meaning of his life.

Another early form of a cause-related marketing campaign was initiated in 1979 by Rosica, Mulhern & Associates for Famous Amos cookies. In the framework of this campaign, Wally Amos became a national spokesperson for the Literacy Volunteers of America. According to the organization Wally sensitized more people to the illiteracy and its consequences as "any other person in history ." This strategic move was to a considerable extent help to spread the Famous Amos cookies and history to establish.

The coining of the term " cause marketing " is attributed to American Express. This referred to the publicity staged support a non-profit organization in certain regions. The term was used to describe a initiated by American Express in 1983 marketing campaign, the " Cause" was the renovation of the Statue of Liberty. For each account via an American Express card transaction, the credit card company donated a penny in favor of the project - the restoration of a national symbol of independence, the Statue of Liberty. Over a period of four months the project were provided U.S. $ 2 million available under the CrM campaign. The number of calls placed using credit card transactions increased during this period by 28%.

The importance of the concept of cause-related marketing has experienced a widening in the sequence, ie it refers today to a larger subset of social marketing. In recent years it has become cause-related marketing to the general term for common use of a company and a nonprofit organization to achieve a profit objective.

Background

According to a report published by onPhilanthropy, the market volume rose sharply in the areas of CrM and sponsorship in relation to the American companies in recent years, in 2008, the aggregated budget stood at 1.52 billion U.S. dollars.

Cause marketing is a powerful marketing tool that is increasingly used by both companies as well as nonprofit organizations, especially in the U.S. area. After Cone Millennial Cause driven research in 2006, 89 % of Americans would be willing to change (aged 13-25 ) from one brand to another brand of a comparable product, if this brand would be associated with a "good thing". The same study also showed that a significant percentage of the respondents would prefer to work for a company that takes social responsibility.

Benefit

Numerous other studies show that cause-related marketing has helped to increase the profits of companies. For example, had the American Express campaign a rise to the new customer registration by 17 % and a 28 % increase of the card usage result.

Benefits

The possible benefits of cause marketing for non-profit organizations includes better ways to promote the non-profit organization and their concerns about donations from the greater financial resources of a company and an increased range to the general public and other potential supporters about the customers to reach and employee base of the cooperating company -. The possible benefits of cause marketing for companies including positive public relations, improved customer loyalty and additional market opportunities.

Terms of Use

Even if a " donation " is mentioned, it usually is in the cause-related marketing is not for donations in the tax sense, but sponsorship or licensing agreements.

In Germany, the cause-related marketing was initially thus classified in several cases as a prohibited " emotional advertising" and as anti-competitive. The central argument for this was the lack of factual connection between the " good things end, " and the advertised product. With the judgment of the Federal Court in September 2005 was, however, clarified that a direct relationship between social engagement and advertised product is not required.

Online cause marketing

Although originally designed as an offline marketing strategy that works cause marketing in the last ten years more and more through online channels. This is partly due to the growing share of households with Internet connections. As with other types of marketing campaigns, companies can combine their online marketing channels along with other offline channels such as print media.