Posted in Marketing and Strategy Terms, Total Reads: 828
Definition: Cause Related Marketing
Cause Related Marketing is mutually beneficial marketing strategy adopted by a company, where is works for a cause or the underprivileged. It is a process where a business organization works along with a non-profitable venture or NGO by using their own expenses.
The benefits of cause related marketing for non for profit organizations include an increased ability to promote the NGO’s s cause through the revenue of a business, and ability to reach volunteers/donators/supporters through the company’s customers. The other benefits include positive public relations, improved customer relations, satisfied employees, additional marketing opportunities, and more sales
Cause marketing can take on many forms, including:
• Product, service, or transaction specific
But the problem is company can not include the money spent on cause related marketing in CSR and they have to show return for this investment. This is not philanthropy. The companies will engage in co branding and conducting events along with NGO.
Eg. In Europe Cadbury collaborated with Save the children . These collaborations is a win-win situation for both. NGOs get support and the company’s brand image increases along with many other advantages