Download docx Cause Related Marketing

Running head: Cause Related Marketing
1
Cause-Related Marketing
Name
Institution
Lecturer
Course
Date
Running head: Cause Related Marketing
2
Cause Related Marketing (CRM)
Introduction
Cause-related Marketing is a Commercial agreement based on a win-win circumstance for the
two parties involved: the firm and supported social causes, while customer gain is secondary.
However, consumer involvement is important to ensure a successful marketing strategy
connected to a cause and should be cultivated by majoring on the long-term benefits to
consumers via proper positioning and proper targeting of the audience. Cause-Related Marketing
classically incorporates the corporate donation to a cause being undetermined on consumer
purchase to some extent. It should be noted that the mandate for CRM activity is based on a
firm’s marketing function. The best form of CRM is the link between the buying of goods and
services and channeling of revenue to a particular charity or a cause (Dan Anghel, Florentina
Grigore and Roşca, 2016).
Concept
Cause-Related Marketing is a concept that gets deeper meaning in some parts of the
world, like Europe, where marketing analysts have concluded that supporting a cause is a chance
for enhancing corporate reputation, increase consumer loyalty, raise commodity awareness, and
build sales (Kotler and Lee, 2005; Siltaoja, 2006). CRM is taken as a communication channel
that emphasizes on the commodity equity (Hoeffler and Keller, 2002, Lewis, 2003). Among
other benefits, CRM help marketing analysts to stay connected with customer’s preferences and
moods as it uses very sensitive and relevant tools to society (Kotler and Keller, 2006).
Benefits of Cause-Related Marketing Campaign (Kotler and Lee, 2005):
i.
Attracting new customers
ii.
Reaching niche segments
iii.
Increasing sales of products and services
Running head: Cause Related Marketing
iv.
Creating a positive image of a commodity
v.
Raise funds for a social cause
3
Customers are not just satisfied to get a product or a service, but they expect a value that
is beyond quality, and this is making consumers move towards those companies that are engaged
in supporting a cause, while there are no changes in price and quality of commodities or services
(Cone 2007).
Influence on Consumers
The recent research carried out made under the effect of cause-related marketing
highlighted the following;
i.
Women are the most affected in their buying decision by cause-related
commodities.
ii.
Statistically, 52% of the people are always willing to pay more for a
product or service associated with a social cause.
iii.
91% of the consumers agree that cause-related marketing creates a
positive picture of the firm.
iv.
87% of the people feel that all organizations should frequently involve in
cause-related marketing programs.
In conclusion, the significance of social responsibility becomes evident. The most
competitive advantage a company has is its reputation. Organizations that enjoy a positive
picture will obtain higher costs for their commodities and will have the ability to transform
consumer-purchasing behavior (J et al., 2012).
Running head: Cause Related Marketing
4
Reference List
Dan Anghel, L., Florentina Grigore, G. and Roşca, M. (2016). CAUSE-RELATED MARKETING,
PART OF CORPORATE SOCIAL RESPONSIBILITY AND ITS INFLUENCE UPON
CONSUMERS’ ATTITUDE. [online] Available at:
https://core.ac.uk/download/pdf/6678277.pdf [Accessed 23 Sep. 2016].
J, V., A, L., J, R. and N. van, P. (2012). TO DO WELL BY DOING GOOD: IMPROVING
CORPORATE IMAGE THROUGH CAUSE-RELATED MARKETING. [Online] Available
at: http://orca.cf.ac.uk/22132/1/Article%2082.pdf [Accessed 23 Sep. 2016].