Chapter Reference

Chapter 17: Not-For-Profit and Social Marketing

Overview

This activity introduces you to understand about cause-related marketing.

Activity

The American Marketing Association defines cause-related marketing (also termed cause-marketing) as ‘Promotional strategy that links a company’s sales campaign directly to a non-profit organization. Generally includes an offer by the sponsor to make a donation to the cause with [the] purchase of its product or service. Unlike philanthropy, money spent on cause marketing is a business expense, not a donation, and is expected to show a return on investment’ (AMA, 2013). Companies differentiate themselves by sponsoring popular social causes to win the public’s favour. Cause-related marketing is a useful way of developing a positive brand image for the private company as it builds not only customer loyalty but also employee respect. The charity gains vital income from this partnership. Visit the following websites and review the cause-related marketing run by different companies and consider the following:

•         How well do you think their corporate responsibility initiatives fit their corporate strategy?

•         Do you think that companies spend enough resources on their corporate social responsibility initiatives? Why do you say this?

•         How important is it that a company promotes not just the cause-related marketing initiative but the fact that the company is undertaking the initiative in the first place?

Website

Kellog’s Providing Breakfast for Better Day: http://www.kelloggcompany.com/en_US/corporate-responsibility/breakfast-for-better-days.html

P&G Children’s Safe Drinking Water: https://www.pg.com/en_ANZ/sustainability/social-responsibility/children-safe-drinking-water.shtml