Brings about the difference between cause related marketing and corporate philanthropy. CRM campaigns in India has been included to get better idea of the concept
2. 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.
3. 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.
4. 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
5. 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
6. 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.
7. 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
Corporate Philanthropy Cause Related Marketing
8. 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.
9. ADVANTAGES OF CAUSE RELATED
MARKETING
Cause-related marketing can directly enhance sponsor sales
and brand.
Cause-related marketing can heighten customer loyalty.
Cause-related marketing can boost a company's public image
and helps distinguish it from the competition.
Cause-related marketing can help build employee morale and
loyalty.
Cause-related marketing can improve employee productivity,
skills and teamwork.
10. 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.
11.
12. 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.
13. 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
14. 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.
15. 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.
16. 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.
17. '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.
18. 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.