Abstract
This chapter explores the concept of cause-related marketing from a modern perspective, briefly tracing its inception in the field of marketing since the Third Industrial Revolution, and discusses landmark marketing campaigns and their ramifications on the development of cause-related marketing. Closely tied with corporate social responsibility, the chapter identifies philosophical antecedents in cause-related marketing and presents the reader with a piecewise progression of thought, from the practical to the abstract as forces of digitalization, globalization, and commodification continually coalesce to form more effective marketing strategies. Notwithstanding, the chapter endeavors to show cause-related marketing in its own light, distinct from philanthropic gestures and sponsorship. Generational trends in cause-related marketing are highlighted through marketing research reports as well as the essential role of social media in disseminating causal sentiments, as companies are taking more planned and calculated steps in bringing developments in their community and society.
TopIntroduction
This chapter explores the concept of cause-related marketing from a modern perspective, briefly tracing its inception in the field of marketing since the Third Industrial Revolution and discusses landmark marketing campaigns and their ramifications on the development of cause-related marketing. Closely tied with corporate social responsibility, the chapter identifies philosophical antecedents in cause-related marketing and presents the reader with a piecewise progression of thought, from the practical to the abstract as forces of digitalization, globalization, and commodification continually coalesce to form more effective marketing strategies. Notwithstanding, the chapter endeavors to show cause-related marketing in its own light, distinct from philanthropic gestures and sponsorship. Generational trends in cause-related marketing are highlighted through marketing research reports as well as the essential role of social media in disseminating causal sentiments, as companies are taking more planned and calculated steps in bringing developments in their community and society. Particular attention is paid to the thematic rise of sustainability, green ethics, and social justice as catchall categories in promoting cause-related marketing campaigns to an increasingly homogenized consumer base. As a case study, benefit corporations are proposed as manifestations of consumer preferences for firms to incorporate more cause-related missions into their bottom line, as apart from increasing in sales it is an effective way to build their corporate image and differentiate their products. The chapter concludes with ethical implications, explaining how cause-related marketing can result in Greenwashing and the abstraction of moral behavior.
By the end of this lesson, students will be able to:
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Understand what ‘cause-related marketing’ is and how it has developed over the years.
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Understand the role of cause-related marketing in the context of Corporate Social Responsibility and Social Marketing.
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Understand the role of cause-related marketing in differentiating the product and increasing sales and customer loyalty.
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Know how effective and advantageous cause-related marketing can be in building a positive corporate image in the industry community and society.
Key Terms in this Chapter
Sponsorship-Linked CRM: It is the type of CRM in which companies do not directly involve customers as they sponsor any event and due to their sponsorship they get their brand and corporate image built in the minds of customers.
Transaction Based CRM: It is the type of CRM in which companies donate an amount or percentage of their sales to a particular cause. Here customers’ direct involvement is necessary.
Cause-Related Marketing: CRM is one of the philanthropic actions by profit oriented organizations to support non-profit organizations for a social cause with the fixed amount or percentage of sales generated through the involvement of customers.
Cause-Related “Experiential” Marketing: It is a type of CRM where companies actively involve customers so that they use any 1 or more sense(s) and experience the situation themselves to donate for the cause.
Corporate Image: the impression of the policies, personnel, and operations of a corporation that is imparted to its employees and the public.
Benefit Corporations: for-profit organizations with a commitment to public good as a core-operating component.
Cause-Related “Event” Marketing: As per this type of CRM, companies associate their campaign with an event like “world’s hungers day” and spend part of their sales for the improvement of the cause.