Cause Marketing

Cause Marketing

  • Submitted By: melina
  • Date Submitted: 02/18/2009 6:41 AM
  • Category: Business
  • Words: 6608
  • Page: 27
  • Views: 1

Strategic Management (1264)


Cause marketing or cause-related marketing is an umbrella term that covers a rich range of marketing activity. Cause Marketing refers to a type of marketing involving the cooperative efforts of a "for profit" business and a non-profit organization for mutual benefit. The term is sometimes used more broadly and generally to refer to any type of marketing effort for social and other charitable causes, including in-house marketing efforts by non-profit organizations. Cause marketing differs from corporate giving (philanthropy) as the latter generally involves a specific donation that is tax deductible, while cause marketing is a marketing relationship generally not based on a donation.

“you buy a pair of TOMS and I give a pair to a child on your behalf.”
Cause marketing can take on many forms, including:
• Product, service, or transaction specific
• Promotion of a common message
• Product licensing, endorsements, and certifications
• Local partnerships
• Employee service programs
Cause marketing is not:
• “Social Marketing,” the use by nonprofit and public organizations of marketing techniques to impact societal behavior (e.g. stop smoking, don’t pollute, don’t use drugs, don’t drive drunk.)
nor is it:
• “Corporate Philanthropy,” the giving (without expectation of direct corporate gain) of charitable financial and in-kind grants by companies or their corporate foundations.
Cause marketing is defined as the public association of a for-profit company with a nonprofit organization, intended to promote the company's product or service and to raise money for the nonprofit. It is generally considered to be distinct from corporate philanthropy because the corporate amount of money involved in CM are not outright gifts to a nonprofit organization, hence not tax-deductible.
The phrase "cause-related marketing" was first used by American Express in 1983 to describe...

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