cause related marketing by faraz

Cause related market 1

BCCA INSTITUTE OF MANAGEMENT

INTRODUCTION

Business organizations are a part of the society. Earlier it was assumed that the

company‘s accountability and responsibility was towards their shareholders but

now it is said that as these organizations take input from the society they should

also give something in return to the society. Now a day‘s companies are finding

new ways to discharge their corporate social responsibility and Cause-related

Marketing (CRM) is one of them. Cause related marketing is a communication tool

for increasing customer loyalty and building reputation. This paper focuses on the

benefits of CRM and how are the companies using marketing communication

activities to demonstrate CRM in the Indian scenario. The business world is getting

more competitive day by day. Companies are facing stiff competition from their

competitors. So they are finding new ways to counter competitors and prove their

superiority in the market.

The customers‘ expectations from the companies have also changed. They want

the companies from which they are purchasing products/services, to be more

socially-responsible rather than just being customer responsible. It is not so that

earlier the companies were not socially responsible but the thing is that they were

giving much preference to the needs and wants of the customers as compared to

the societal well-being. We can find many examples in the past where the

companies use to give big donations for supporting some social cause in order to

fulfill their social responsibility. With the development of the marketing world,

competition has increased and customers‘ expectation from the companies has also

changed. Big corporate houses are finding new ways to stood up to this expectation

level. One of the ways through which they are trying to present themselves as a

Socially-Responsible company is CAUSE RELATED MARKETING (CRM).

American Express first used the phrase "cause-related marketing" in 1983 to

describe its campaign to raise money for the Statue of Liberty‘s restoration.

American Express donated one cent to the restoration every time someone used its

charge card. As a result, the number of new cardholders grew by 45 percent, and

card usage increased by 28 percent.

Other examples of cause-related marketing programs include:

- Requests for small donations for children‘s charities at the supermarket checkout

- Public awareness campaigns for HIV/AIDS, breast cancer, and other causes

http://www.causemarketingforum.com/casestudies.asp



- Licensing of well-known charity trademarks and logos, like World Wildlife

Fund‘s panda

CRM is distinct from corporate philanthropy because the corporate dollars

involved in CRM are not outright gifts to a nonprofit organization, so they are not

treated as tax-deductible charitable contributions.

Nonprofits potentially benefit from increased fundraising and exposure. Likewise,

corporations that are socially involved potentially benefit from increased brand

loyalty and employee morale. Studies have shown that for products of similar

quality, consumers will consider the company‘s image and reputation when

choosing a brand.

To find and develop CRM opportunities, nonprofit organizations should expand

their research efforts beyond the traditional corporate giving directories and refer

to resources in the business departments of public and/or academic libraries.

http://www.worldwildlife.org/what/partners/corporate/marketingpartnerships.html





According to Journal of the Canadian Institute of Marketing, Volume 7, Issue 2 By Michael Skory and Shelley Repka, MCInst.M

―Cause Related Marketing is simply marketing with a worthy cause. Together,

these powerful alliances (not-for-profit organizations and companies) can

successfully work together with unique marketing tools to influence change and

create better solutions. CRM is a form of marketing that uses various strategies,

tools and traditional advertising methods to change attitudes, perceptions and

behaviors as they relate to social issues. Non-profit organizations and companies

form alliances to market images, services and products. Seventy-eight percent of

people have a more favorable view of a company that

Contributes or sponsors a cause that they think is worthy. For instance, people are

more likely to be interested in a company that is contributing to cancer research

than one that is contributing to bug research! Now who‘s to say that bug research

isn‘t worthy? People decide if it‘s a worthy cause. And if it doesn‘t affect the

―people‖, who‘s to say it‘s worthy? The Prince of Wales was once quoted as

saying;

―Business in partnership with charities and causes can play a vital role in the

regeneration of communities.‖ Cause Related Marketing is an exciting concept

where both business and charity (or good causes) can benefit. It also attracts new

sources of funds, resources and support.‖



History

One of the first "cause marketing" campaigns occurred in 1976 through a

partnership between Marriott Corporation and the March of Dimes. Marriott‘s

objective was to generate highly cost-effective public relations and media coverage

for the opening of their 200-acre family entertainment center, Marriott‘s Great

America in Santa Clara, CA. The March of Dimes' objective was to greatly

increase fundraising while motivating the collection of pledges by the program‘s

deadline. The promotion was conducted simultaneously in 67 cities throughout the

Western United States. It exceeded all goals to become the most successful

promotion in the history of Chapters West of the March of Dimes, while providing

hundreds of thousands of dollars in free publicity and stimulated the record-

breaking opening of the Marriott entertainment complex.

The program was conceived and directed by Bruce Burtch, who went on to become

a nationally-recognized catalyst for cause marketing programs. Burtch is credited

with coining the phrase, "Do Well by Doing Good", which was his answer to the

CEO of a major corporate foundation when asked what his goal in life was in

1977.

Another of the first examples of a "cause-related marketing" campaign was

initiated in 1979 by Rosica, Mulhern & Associates for Famous Amos cookies. In

this campaign, Wally Amos became the National Spokesperson for the Literacy

Volunteers of America. According to the organization, Wally has alerted more

people to the illiteracy problem than any other person in history. This strategic

cause-marketing tie-in helped to tell the Famous Amos Cookie story while

maintaining visibility and is responsible for many new and expanded literacy

programs. This case study is now used in university classrooms nationwide as an

example of successful "cause-related marketing". In 1982 Nancy Brinker, founder

of Susan G. Komen for the Cure was a early pioneer of cause marketing, allowing

millions to participate in the fight against breast cancer through businesses that

share Komen's commitment to end the disease.

The creation of the term "cause-related marketing" is attributed to American

Express, and it was coined to describe efforts to support locally based charitable

causes in a way that also promoted business. The term was then used to describe

the marketing campaign led by American Express in 1983 for the Statue of

http://bruceburtch.com/casestudies.html

http://bruceburtch.com/

http://bruceburtch.com/aboutbruce.html

http://en.wikipedia.org/wiki/Famous_Amos

http://en.wikipedia.org/wiki/Wally_Amos

http://en.wikipedia.org/wiki/Famous_Amos

http://en.wikipedia.org/wiki/Nancy_Brinker

http://en.wikipedia.org/wiki/Susan_G._Komen_for_the_Cure

http://en.wikipedia.org/wiki/American_Express



http://en.wikipedia.org/wiki/Statue_of_Liberty

http://en.wikipedia.org/wiki/Statue_of_Liberty



Liberty Restoration project. A penny for each use of the American Express card,

and a dollar for each new card issued was given to the Statue of Liberty renovation

program. Over a four-month period, $2 million was raised for Lady Liberty,

transaction activity jumped 28 percent and the concept that doing good was good

for business, was born. The terms "cause-related marketing" and "cause marketing"

continued to grow in usage since that time. In more recent years the term has come

to describe a wider variety of marketing initiatives based on the cooperative efforts

of business and charitable causes.



Background

Cause-related marketing is a powerful marketing tool that business and nonprofit

organizations are increasingly leveraging. According to the Cone Millennial Cause

Study in 2006], 89% of Americans (aged 13 to 25) would switch from one brand to

another brand of a comparable product (and price) if the latter brand was

associated with "good cause". The same study also indicated that a significant

percentage surveyed would prefer to work for a company that was

considered socially responsible. This can be linked to the increase in workplace

giving programs. Earlier studies by Cone indicate an upward trend in the number

of Americans who associate their own buying habits with cause marketing as well

as an expectation that those companies to be "good corporate citizens". These

studies also show a substantial increase from just before to just after the September

11, 2001 attacks.

Numerous other studies have also been conducted to show that cause-related

marketing has helped to increase a company's profits. For example, in the cause

marketing campaign by American Express (to which the term "cause marketing" is

attributed), the company saw a 17% increase in new users and a 28% increase in

card usage.

According to a report published by on Philanthropy, cause

marketing sponsorship by American businesses is rising at a dramatic rate. Citing

an IEG, Inc. study, $1.11 billion was spent in 2005, an estimated $1.34 billion will

be spent in 2006, and the number is expected to rise further in 2007. As an update,

IEG reported that $1.44 billion was spent in 2007 and $1.52 billion in 2008. Due to

the recession, growth is expected to slow in 2009 with the projections being $1.57

billion total to be spent on cause marketing.

http://en.wikipedia.org/wiki/Cause_marketing#cite_note-9

http://en.wikipedia.org/wiki/Brand

http://en.wikipedia.org/wiki/Social_responsibility

http://en.wikipedia.org/wiki/September_11,_2001_attacks



http://en.wikipedia.org/wiki/Sponsor_(commercial)



Concept of Cause Related Marketing

Cause related marketing can be understood as a strategic positioning and marketing

tool which links a company or a brand to a relevant social cause or issue for mutual

benefit. It is the initiation and funding of deserving causes. Cause related

marketing is a strategic marketing activity a way for a company to do well by

doing good-distinct from sales promotion, corporate philanthropy, corporate

sponsorship, corporate Samaritan acts and public relations, though it is often an

amalgam of such activities. Nothing builds brand loyalty among today‘s

increasingly hard to please consumers like a company‘s proven commitment to a

worthy cause. Other things being equal many consumers would do business with a

company that stands for something beyond profits. In nutshell, cause related

marketing results in increased sales, visibility, and consumer loyalty and enhanced

company image along with positive media coverage.



Cause Related Marketing : A Brief Prologue

Cause marketing or cause-related marketing refers to a type of marketing which

involves the cooperative efforts of a ―for profit‖ business and a non-profit

organization for mutual benefit. The scope, design and the nature of association

between for-profit and non-profit organisation which are a part of the cause related

campaign may differ from campaign to campaign but in the most common type of

relationship, a company might donate a portion of each purchase made by its

customers during a specific period of time to the nonprofit entity. The term is

sometimes used more broadly to refer to any type of marketing effort for social and

other charitable causes, including in-house marketing efforts by non-profit

organizations. One of the first ―cause marketing‖ campaigns occurred in 1976

through a partnership between Marriott Corporation and the March of Dimes.

Marriott Corporation is in the hotel business whereas March of Dimes is a health

charity whose mission is to improve the health of babies by preventing birth

defects, premature birth, and infant mortality. The objective of Marriott by this

partnership was to generate cost-effective public relations and media coverage for

the opening of their Family Entertainment

Centre. On the other hand, the objective of March of Dimes was to increase fund-

raising while motivating the collection of pledges by the program‘s deadline. The

program was conceived and directed by Bruce Burtch who coined the phrase ―Do

Well by Doing Good‖ for this campaign. However, the creation of the term ‗cause

related marketing‘ is attributed to American Express and it was used to describe

efforts which support charitable causes in a way that is also helpful in the

promotion of the business. The term was then used to describe the marketing

campaign led by American Express in 1983 for the Statue of Liberty Restoration

project. The essence of this campaign was that, a penny for each use of the

American Express card, and a dollar for each new card issued were given to the

Statue of Liberty renovation program. $2 million was raised for Lady Liberty over

a four-month period and the business activity increased by 28 percent. The success

of this campaign gave birth to the concept that ‗doing good is good for business‘.

Since then onwards, the terms ―cause-related marketing‖ and ―cause marketing‖

continued to grow in usage. In more recent years the term has come to describe a

wider variety of marketing initiatives based on the cooperative efforts of business

and charitable causes.



Benefits of CRM

This concept is beneficial for both the parties. On the one hand, the campaign helps

the corporate houses (for profit organizations) in improving their company image,

building customer loyalty and increasing sales, whereas on the other hand, it

provides funds to the charity which is working to support a special cause. Cause

related marketing can be the pillar of the marketing plan. It can help the company

gain a competitive edge over its competitors by projecting a positive reputation in

the target market. Also it delivers other tangible benefits. To mention a few,

following is the list:

a. Good relations with the media

b. Better company image

c. Increased sales and

d. Additional customer loyalty

e. It helps in creating an alternative and different view point towards brand

advertising.

f. Certain markets (Niche) can be entered if they are partnered with non-profit

organizations.

g. Companies can attract and retain quality employees (2000 Cone/Roper

Executive Study).

h. CRM efforts communicate a company‘s commitment to CSR broadly by way of

communicating the same to its stakeholders including employees, customers and

suppliers. In a competitive market, ‗survival of the fittest‘ theory prevails and only

those organizations can survive long, that are able to build long-term relationships

with customers. Customers being a part of society expect companies to go beyond

their call of duty (Millenimu Poll on CSR, 1999).



Scope and Forms of Cause Related Marketing

in India

CRM is although a phenomenon that had its roots in the western countries, but it

has gained rapid acceptance in India in recent Years. According to Professor Alan

Andreasen, there can be

three forms of alliance between the ‗for-profit‘ and ‗nonprofit‘ organizations. They

are as follows:

1. Transaction-based promotions: Programs that elicit participation with an offer

to make a contribution to a designated cause based on consumer activity such as

buying a specific product, redeeming a coupon, registering at a website or

shopping at a particular retail chain.

2. Joint-Issue Promotions: Joint campaigns that raise awareness of a cause‘s

message (e.g. fight skin cancer) or participation in its programs (e.g. join us in a

coastal cleanup) while building a positive association with the corporate sponsor or

its brands.

3. Licensing: Independent Sector defines cause marketing licensing as ―An

agreement in which the nonprofit allows its information or knowledge to be used

for a fee or an agreement in which a nonprofit‘s name is attached to a product.

Typically, a nonprofit licenses a company to develop, produce, market and/or

distribute a mission-related product that is promoted either with the organization‘s

brand name or co-branded with both the company‘s and nonprofit‘s names.‖ This

form of alliance is not yet practiced in India. The above three forms covers a part

but not the whole gamut of CRM. Various forms of CRM are created or are

defined only by the limitations of one‘s imagination.CRM simply means marketing

related to a cause. The confine CRM to one, two or three types will be erroneous as

marketing is in its developing stage and with the development of marketing; we are

going to see other forms of CRM too. As we say that, Marketing-mix consists of

4P‘s i.e. product, price, place and promotion, CRM is a part of the last ‗P‘ i.e.

promotion. It can be demonstrated through advertising, sales promotion,

sponsorship, direct marketing, publicity, and many more aspects of marketing. The

list of promotion-mix is growing day by day and so is the scope of CRM. In the

following paragraph an attempt has been made to understand how in the Indian

market scenario, the marketer is using various communication tools to exhibit

CRM.



Cause related marketing: Tactic or Strategy?

For many years, community development goals were philanthropic activities that

were seen as separate from business objectives, not fundamental to them. ‗Doing

well‘ and ‗Doing good‘ were seen as separate pursuits. That is changing. Today,

the emergence of cause marketing programs, have heralded a dramatic shift in

nonprofit-for-profit relationships. It has established the concept that community

development and support could be positioned at the intersection of business

objectives (sales/profits) and societal needs. Supporting a specific cause and being

public about this support gives companies identifiable personalities, demonstrates

what they stand for, and helps them connect with customers, suppliers, investors,

employees, and the community. Cause marketing programs allow the consumers to

overtly and publicly express their belief in and support for, the causes that are most

important to them.

Cause marketing has been with since the local shops and restaurants set up

collection boxes for donations to local causes (more often, orphanages) near their

cash counters. It was American Express that first coined the term ―Cause-related

marketing‖ in 1983. That year they launched a three-month marketing program

around the Statue of Liberty Restoration Project.

The objective: To increase card use and new card applications and at the same time

raise money, awareness and support for the nonprofit Restoration Fund. American

Express donated one cent for every card transaction and one dollar for every

new card application. It backed the program with a $4 million advertising

campaign aimed at reaching existing customers and drawing new ones. The results

were impressive. In just three months, the Restoration Fund raised over $1.7

million. American Express Card usage rose 27% and new card applications rose by

45% compared to the previous year. A fitting outcome to a well planned strategic

effort. A clear demonstration that caus marketing could achieve strategic goals by

linking a for-profit organization to a cause and enabling its consumers to

financially support the cause by doing business with the for-profit organization.

From that initial entry into the consumer mind space, and into marketing strategic

space, cause marketing programs have evolved into a firmly established practice to

be adopted by marketers.

The compulsions to use cause marketing have been brought into sharp focus by the

studies done by Cone Inc., a marketing communications agency that has been

tracking American attitudes towards corporate support of social issues for more

than a decade. According to the 2004 Cone Corporate Citizenship Study, 8 in 10



Americans say that corporate support of causes wins their trust in that company, a

21% increase since 1997. A more significant finding of the report is the response to

the statement, ―I am likely to switch from one brand to another that is about the

same in price and quality, if the other brand is associated with a cause‖. A

staggering 86% confirmed that they would do so, a rise from 81% in October 2001.

‗Cause‘, has therefore become an important differentiator, a means to promote

products and enhance bottom lines for marketers today. According to the IEG

Sponsorship Report, Chicago, US spending on Cause Marketing will hit $1.34

billion in 2006. Back in 1990 cause marketing spending was only $120 million.

Cause marketing allows a company to put its brand, marketing might and people

behind a nonprofit cause that can provide mutual benefits to the company and the

nonprofit entity. The cause marketing campaigns can vary in their scope and

design, the types of nonprofit partners and the nature of the relationships among

the companies and their nonprofit partners. In the most common type of

relationship, for each purchase made by its customers during a specified period of

time, a portion of it is donated to the nonprofit entity. It is a win-win situation all

around.

Companies increase their sales, nonprofits get more funds and the consumer

benefits because he feels a part of his purchase is going for a good cause.

There could be two forms of associations in terms of the time dimension.



Types of cause marketing

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

Examples

One example of cause-marketing would be the partnership of Yoplait's

"Save Lids to Save Lives" campaign in support of the Susan G. Komen for the

Cure. The company packages specific products with a pink lid that consumers

turn in, and in turn Yoplait donates 10 cents for each lid.

An example of a nonprofit certification of a product (business) includes

the American Heart Association's stamp of approval on Cheerios, the popular

breakfast cereal. The American Heart food certification program grants use of

its "Heart Check" icon and name to dozens of cereals and juices meaning that

that product meets the Associations' low-fat, low-cholesterol standard

Launched in 2007 Singapore Airlines launched a cause marketing campaign

attracting over 35 million unique visitors across 23 countries to bring awareness

to Doctors Without Borders. With the launch of the world's first A380

Singapore airlines with the assistance of Vonality Inc launched an online

auction for all seats on the historic first flight all in support of charity.

Launched in early 2006, Product Red is an example of one the largest cause-

related marketing campaigns to date given the number of companies and

organizations involved as participants as well as its reach worldwide. It is also

an example of a cause marketing campaign that is also a brand on its own.

Product Red was created to support The Global Fund to Fight AIDS,

http://en.wikipedia.org/wiki/Yoplait




http://en.wikipedia.org/wiki/American_Heart_Association

http://en.wikipedia.org/wiki/Cheerios

http://en.wikipedia.org/wiki/The_Global_Fund_to_Fight_AIDS,_Tuberculosis_%26_Malaria

http://en.wikipedia.org/wiki/The_Global_Fund_to_Fight_AIDS,_Tuberculosis_%26_Malaria



Tuberculosis & Malaria (aka "The Global Fund") and includes companies such

as Apple Computer, Motorola, Giorgio Armani, and The Gap as participants.

Wired Italia, US and UK in November '09 launched a campaign in order to

nominate the Internet for the 2010 Nobel Prize

Powerful marketing edge

Cause-related marketing can become a cornerstone of your marketing plan.

Your cause-related marketing activities should highlight your company's

reputation within your target market. Cause-related marketing can positively

differentiate your company from your competitors and provide an edge that

delivers other tangible benefits, including:

Increased sales

Increased visibility

Increased customer loyalty

Enhanced company image

Positive media coverage

By choosing a cause you are passionate about, cause-related marketing is

emotionally fulfilling. It's a way to merge your profit center with your "passion

center" and build a business that mirrors your personal values, beliefs and

integrity. If your cause also resonates with your target market, your activities

will generate tremendous goodwill and media attention can be its side effect.

http://en.wikipedia.org/wiki/Apple_Computer

http://en.wikipedia.org/wiki/Motorola

http://en.wikipedia.org/wiki/Giorgio_Armani

http://en.wikipedia.org/wiki/Gap_(clothing_retailer)



Indian Scenario cause related marketing

Cause related marketing and its impact on organizational selling and brand loyalty.

1. The HLL announced a contribution of fifty paisa to a diarrhea project on sale of

each of its LIFEBUOY brand soap. It helped to improve market share for

‗lifebuoy‘

2. OBEROI Hotels had specially designed and printed envelopes placed in all

Oberoi properties where in the guest could contribute to CRY, a non government

organization and collected more than Rs. 6.50 lakhs in 18 months. CRY is a NGO

whose role is that of an enabler a catalyst between two groups of people (a)

development organization and individuals working at grass root level with

marginalized children, their families and communities and people from all walks of

life who believe in the rights of children.

3. In India ‗whisper‘ a brand in the sanitary nappies market where the materialistic

difference is minimal announced a contribution of Re 1 on every pack of its sales

for blind relief society. It helped to improve market share for ‗Whisper‘

4. The HLL announced a Rs. 5/- contribution to SOS children‘s village, a social

service organization working for educating every little heart by inserting coupons

in its Brook bond Taj Mahal tea powder packs. The customer has to tell the coupon

number to the company through a toll free telephone number.



Advertising and CRM

Use of advertising in Cause related marketing means advertising of a particular

cause where the ‗for-profit‘ or a business organization lines-up itself with a

particular cause and then uses its advertising to commune the cause message. The

organization‘s objective besides raising awareness of the particular cause can range

anything from building brand image to encouraging relationships and loyalty

between the Product, charity, cause or company.

Tata tea has taken the concept of using television channels in promoting a cause

message in one of their advertisement (jaago re commercial) in which they are

trying to persuade the youth to cast their vote in the general elections (election ke

din agar aap vote nahi kar rahey ho to aap so rahey ho). Even in one of their

other commercial they addressed the issue of corruption by saying “ab khilaana

band aur pilaana shuru.” Star care, under the Heroes project, launched an

humorous court-room commercial to create awareness about AIDS. In each of the

case referred, TV advertisement has added value not only to the business

organization but also to the cause.



Sales Promotion and CRM

Cause-Related marketing is normally demonstrated with Sales promotion.

Donation to causes is generated by purchases. More the sales more will be the

donations to the cause. Some of the examples in Indian context are as follows:

1) Tata Salt, in its „DESH KO ARPAN‟ programme contributed 10 paise for

every kilo of Tata Salt,

sold during specific periods, to the education of underprivileged children. Child

Relief and You

(CRY) was their partner in this programme.

2) Procter and Gamble, in partnership with Child Relief and You (CRY) launched

a project in the name of „SHIKSHA‟ (special program to support education of

underprivileged children across India). According to this project a part of the

proceeds generated by the sale of large pack of Tide, Ariel, Pantene, Head &

Shoulders, Rejoice, Vicks VapoRub and Pampers will be donated to support the

cause.

3) Novartis India Ltd., in a cause-related marketing scheme, donated 2% of the

value of sales of

Ovaltine Plus towards CRY‟s Gujarat rehabilitation operations. The total

amount raised was approximately Rs. 40, 00,000.



Sponsorship and Cause Related Marketing

Sponsorship is the financial or in-kind support of an activity, used primarily to

reach specified business goals. We can find numerous examples were the

companies‘ have sponsored various sporting events like cricket or football matches

or have organized dance and song shows were famous sportsperson and the

bollywood celebrities respectively performs. These events are organized especially

to support a cause and the proceeds generated from these events are used to fight

for that cause.

Publicity and CRM Credibility of cause is crucial for the success of cause marketing. Credibility will

be low if a company offers a meager amount of money for the cause. If the whole

company i.e the employees as well as the top, middle and first-level of

management are involved in cause marketing, customers treat the company as a

more reliable entity in the society. And, if a company as a whole (like Aravind Eye

Care hospital) is involved in cause marketing, the credibility is very high. Aravind

hospital is connected with the cause of serving the poor and it is integrated with the

marketing strategy of the organization. The credibility of the hospital is so high

that the hospital gets huge word of mouth publicity and so it doesn‘t have to

indulge into any other form of promotion activities.



Value of Cause Marketing

Cause-marketing support has grown enormously in the last two decades as

companies, nonprofits, and constituents from employees and suppliers to retailers

and consumers continue to react positively to the outcomes and benefits of joint

business collaboration. The result: companies continue to find more money and

resources in their budgets. The numbers tell the real story. Putting a true cash

dollar value on cause marketing is a challenge. However, the International Events

Group (IEG) began estimating spending in 1990. IEG, established to make

sponsorship the fourth arm of marketing, alongside advertising, promotion, and

public relations, provides services, research, and advocacy for the profession. They

estimate spending only ―on payments by corporations to nonprofit sponsors in

unrestricted fees in exchange for a marketing affiliation or relationship.‖ As they

themselves note, many cause-marketing initiatives combine contributions from

philanthropic, advertising, and other company budgets.‖ However, by looking at

the IEG numbers, it is clear to see the growth in cause

marketing. In 1990 IEG estimated that $125 million was being spent. In 1998, it

had jumped 400% to $545 million, and by 2003 cause-marketing spending had

almost doubled to $922 million. This rapid growth continues, and in 2004 cause

marketing spending grew by 7.5% to just under $1 billion; by 2005 it rose to $1.08

billion, a 9% growth. In addition, IEG projects the value of additional in-kind

marketing benefits, including advertising and media exposure, which extends

messaging and builds brand awareness for the nonprofit recipients, to be

approximately three times the amount of the cause-marketing fees themselves. Add

in the value of cause relationships helping achieve mission, gaining corporate

expertise, and assistance, and the contributions to nonprofit organizations increase

significantly. As outlined earlier, not only do companies make contributions to

support their chosen cause, but the programs also themselves frequently trigger

additional donations and support from employees, consumers, and other company

constituents.



Cause-Related Marketing Internationally

Cause marketing is not restricted to North America. It is now a global

phenomenon. Campaigns are prominent throughout Britain, Europe, and Australia.

Jerry Welsh, the originator of the concept of cause-related marketing, has

established programs in China.

UNICEF

Although there are a few nonprofit organizations that generate the majority

of their support from cause-marketing relationships, organizations like

UNICEF are more typical of the financial benefit of cause marketing. In 2004,

they generated $65 million in corporate gifts. And although the majority of

that support comes from philanthropic gifts, the fastest growing area is from

Cause-marketing programs.

The UK in particular has put muscle behind a national campaign to encourage

cause-marketing programs. In 1995, the UK national organization Business in the

Community launched an initiative to develop a center of knowledge, information,

and best practices to promote cause-related marketing (now called Cause Related

Business Campaign) as a means of making a positive impact on key social issues.

In the UK, Business in the Community‘s Cause-Related Marketing Tracker 2003

presented the amount raised for charities and good causes. Pegged at £58.2 million

or over $90 million U.S. contributed through cause-related marketing programs,

this is an increase of over 15% from 2002. Of this, £24 million or $37.2 million

U.S. dollars were funds leveraged through staff, customer, and supplier

fundraising. This amount focuses on the dollars raised in 2003 and does not

include the other benefits associated with cause marketing. During this year 67

businesses and 64 charitable causes collaborated and undertook 82 cause-related

marketing programs.



Cause related marketing of child labour

McCann Exposes The Truth Of Child Labour

By: Erica Ng, India

Published: Jul 02, 2010

CAMPAIGN MCCANN ERICKSON NGO

Mumbai – To encourage stricter laws against child labour, non-government

organization Bachpan bachaao Andolan has launched a campaign delivering

crafts with images of working children to Indian ministers.

Developed by McCann Erickson India, the campaign consists of two parts – the

first is an outdoor campaign to spread awareness on child trafficking for labour,

and the second is an arts and crafts exhibition featuring handcrafts with images of

child labour enbedded into them.

Prasoon Joshi, executive chairman of McCann Worldgroup India and regional

creative director of McCann WorldGroup Asia Pacific, explained that child labour

is a big problem in India with figures showing millions of children working in

horrifying conditions in India's arts, crafts and carpet industries.

―The creative idea was to get crafts designed so that if one looks close enough they

will actually see images of children working,‖ Joshi said.

―The idea was designed to shock the buyers and discourage them from

purchasing.‖

Print and online ads with Bollywood celebrities who support this campaign are

also running.

Some handcrafts were hand-delivered by school children to the key members of

the parliament, along with petition letters.



According to the agency, all the ministers who received the items have signed the

petition and sworn on camera to take the issue up in the Halls of Democracy.

Almost 40,000 petitioners have joined the movement online since the campaign

started in February.



CRY - A Profile

CRY is a registered Indian trust working towards building a people‘s movement to

restore to India‘s underprivileged children their most basic rights. CRY harnesses

the money, time and skills of thousands of individuals and organizations to partner

163 child- development initiatives across India. CRY is governed by values of

respect for human dignity, transparency, accountability, secularism, non-violence

and the spirit of innovation Tata Salt, the pioneers and undisputed leaders in the

packaged and iodized Salt Category, reiterated its commitment to the cause of

educating underprivileged children and announced its Desh Ko Arpan

Programme. The Desh Ko Arpan Programme, Tata Chemicals Limited

Contributes 10 paise for every kilo of Tata Salt, sold during specific periods, to the

education of underprivileged children. Child Relief and You (CRY) has been

chosen as partners. The money raised was Rs 33 lakhs in a period of one month.

The money raised will support six child – development initiatives across the

country, namely:

1. Lok Shakti Vikas Sansthan, Barmer, Rajasthan

2. Jabala, Kolkata, West Bengal

3. The Good Shepherd Society, Chennai, Tamil Nadu

4. Gramya, Nalgonda, Andhra Pradesh

5. The community Services Guild, Namakkal, Tamilnadu

6. Rachana Society for Social Reconstruction, Pune Maharashtra.



Ogilvy Outreach upbeat on vision

KOLKATA, Sept. 18

OGILVY Outreach, the specialist unit of Ogilvy & Mather that was launched in

1998 to reach out to "low-income groups in media-dark markets through

communication" is bullish about its prospects in the years ahead.

Over the last four years, the outfit has roped in about 70 clients, including big

players such as Hindustan Lever Ltd, ITC, Bharat Petroleum Corporation Ltd,

Asian Paints, Eveready Industries and the TTK group, among others.

Stating this during an interface with newspersons here, Mr Dalveer Singh, Country

Manager, Ogilvy Outreach, said the organisation was focussed on reaching out to

the estimated 240 million people in rural India who had no access to mass media.

In the last four years, the organisation has built a communication network across

1.5 lakh villages and 4,000 small towns in 13 states. A force of 300 supervisors

and 15,000 field operators supports this network.

"Most of our operational models veer round corporates' social responsibility and

cause-related marketing. We focus on communicating with our constituents rather

that talking to them," Mr Singh said, even as he cited instances of such "cause-

related'' marketing involving FMCG and lubricants companies.

Mr Singh declined to divulge details of billings, but confirmed that the

organisation was looking at a 50 per cent growth over last year. "The scope for

addressing media-dark markets in India is immense and we are confident of

retaining our position as market leader in this segment," he said.



Real-World Success Story

Cosmetic dentist Mark McMahon made himself a media mini-celebrity with

a thriving practice due in part to his high-profile pro bono work in his

community, a strategy that landed him radio and TV appearances in areas

where he worked.

McMahon established partnerships with local charities, including a homeless

shelter and a shelter for battered women, and offered free dental services to

their members. Before each event, he contacted local media and let them

know what he was up to. Several TV crews showed up, filmed him treating

patients, and later aired the segments on the evening news.

"These events were surprisingly easy to arrange, and every year, they'd help

us get press simply by doing these charitable promotions," McMahon says.

"Local television news stations loved the emotional element. And it was

obviously rewarding to see patients after we'd treated them who'd been in

pain for months talking about how glad they were to be relieved of their

toothaches."

Another project involved the Delancey Street Foundation, a residential

education center for former substance abusers and ex-convicts. "I agreed to

treat some of their members' acute dental needs," McMahon says. "I quickly

appreciated the media appeal of transforming the appearance of these rough-

looking guys with terrible smiles."

McMahon captured the event with before and after photos. "These guys had

missing teeth and terrible smiles," he says. "So I had a professional

photographer capture before pictures of these guys in street clothes with

their snarling faces. After I fixed their teeth, we took more pictures, but this

time dressed the guys in suits and ties, now looking like lawyers and

accountants, with me sitting right in the middle. The media loved it, and it

was great seeing these men looking like new."

McMahon's TV appearances created name recognition. "After I did the story

on a local television show, I was recognized in my gym by a masseuse who

had seen the show," McMahon recalls. "She said, 'I was thinking about you

this morning while I was flossing my teeth.' She became a great source of

referrals."

(Excerpted from the book Get Slightly Famous: Become a Celebrity in Your

Field and Attract More Business with Less Effort, by Steven Van Yoder)



Somerset House, DG&A launch cause-related marketing program -

news - Somerset House Publishing, DG and A Advertising

Communications - Brief Article

Art Business News, Sept, 2002,www. .bnet.com

WASHINGTON, D.C.--Somerset House Publishing and DG&A have launched

PACT, a new cause-related marketing program. PACT's first project is an original

art poster by Kathryn Andrews Fincher. Thirty percent of the proceeds from the

sale of "Waiting for You" will be donated to MENTOR/The National Mentoring

Partnership and its mentoring partnerships nationwide.

PACT is a cause-related, Web-based fundraising program designed to increase

public awareness about the value of mentoring, encourage volunteerism and raise

revenue to advance mentoring programs. It is a marketing program that builds on a

10-year partnership between and Somerset House Publishing, a leading publisher

of fine art prints, and DG&A (Diane Gingold & Associates), a Washington, D.C.,

consulting firm specializing in corporate-nonprofit partnership.

"Our initiative with the National Mentoring Partnership is designed to benefit state

and local mentoring programs," said Larry Smith, president of Somerset House.

"The Internet allows us to visually deliver `Waiting for You' to audiences in every

community in America and help deliver the message of mentoring to adults who

can help reach the nearly 15.7 million kids who need or want a mentor. When a

poster is purchased, we hope that the buyer combines his financial contribution

with a personal commitment to mentor a child or young person."

Fincher, known for her portraits of children, created "Waiting for You" for the

exclusive use of MENTOR and its state and local Mentoring Partnerships." I was

particularly pleased to be asked to create this image for MENTOR because of my

own mentoring experience," noted Fincher. "My model was a young boy whom I

mentored in my church, and I saw how the mentoring process can transform a

youth in a short period of time. It is my privilege and pleasure to help others

through this work of art."

http://findarticles.com/p/articles/mi_m0HMU/

http://findarticles.com/p/articles/mi_m0HMU/is_9_29/



Conclusion

When cause marketing was launched over 25 years ago, it was viewed as a

fledgling idea. Today, cause marketing is a global phenomenon that has developed

into the new way for businesses and nonprofit causes to collaborate to achieve

mutual benefits. Cause-marketing partners a nonprofit cause‘s brand and assets

with the power of a corporation‘s brand, marketing, and people to achieve social

and shareholder value while communicating values. Cause marketing has come a

long way from its early days, has become increasingly sophisticated, and now

includes everything from one-off cause sale promotional activities to broader,

longer term marketing relationships to companies that make long-term

commitments to causes that eventually become part of their corporate identity,

culture, and corporate social responsibility palette.

Today, cause marketing can include product sales, promotions, and program-

driven collaborations between companies and nonprofit causes. Nonprofit

organizations have responded by proactively seeking cause partnerships and

recognizing the value of these corporate marketing relationships and the benefits

beyond traditional philanthropic contributions. Done right, cause marketing can

help achieve mission, generate additional revenue, extend reach, get out important

messages, change behaviors, and enhance awareness of a nonprofit and the cause.

Cause marketing is augmenting traditional corporate philanthropic support and

becoming the new way corporations and nonprofits organizations are working

together. Different from philanthropy or sponsorship, cause marketing combines

the two—the community benefit associated with philanthropy and the business

value tied to sponsorship—self-interest combined with altruism.

Cause marketing‘s time has come, and companies continue to find more money

and resources in their budgets for cause marketing. This segment of corporate

giving and corporate social responsibility is a growing phenomenon and an

important new marketing and corporate citizenship tool to create profitability and a

new fundraising and marketing tool for nonprofits to generate revenue and achieve

critical mission goals.

Cause related marketing found its roots and began as a commercial activity but

over timelines it has grown as a concept. It has gone beyond commercial activity

and become a community activity signifying collectivism and increased sense of

responsibility. Houses like Tata and concerns like Aravind Eye Care have

exhibited soft marketing in their application of strategies. They have become

proactive and don‘t wait for instances to occur to guide their actions. Rather a



paradigm shift is being experienced where companies work unconditionally for the

cause without expectations in return. The mixing of emotions in the right

proportion with the marketing initiatives should make organizations wary of the

fact that cause-related marketing is no joke and should not be treated lightly. Its

mere cause is just not to promote the sales of the organizations‘ products. With its

application becoming more sophisticated, it can survive as the sole strategy to

build relationships with the target consumers on an emotional platform. If

programmed and executed strategically, it can prove its mettle by differentiating its

product from its competitors, add value, command premium prices, enhance brand

loyalty and build a positive reputation of the corporate brand. It‘s a win-win

approach where the partnership of corporate strategy and good citizenship make

the organization‘s marketing program connect with its consumer, its cause thereby

making the consumer corporate win.



Bibliography

1. Adkins Sue, Cause-Related Models (1999), Cause Related Marketing Who

Cares Wins, Reed

Educational & Professional Publishing Limited, , pp. 113-34.

2. Garg Bhavet (2007), Cause Related Marketing and its Impact on Corporate

Brand Image and Sales, International Marketing Conference on Marketing

& Society, 8-10 April, 2007, IIMK

http://dspace.iimk.ac.in/bitstream/2259/366/1/219-221.pdf

3. P&G launches SHIKSHA‘08,

http://www.indiaprwire.com/pressrelease/education/ 200804148741.htm

4. Hyderabad, Andhra Pradesh, IND, 2008-04-1416:17:25 (IndiaPRwire.com)

5. Rajeswari S.P (2007), Cause Related Marketing A Conceptual Paradigm,

Social, Public Service & Cause Related Marketing International Marketing

Conference on Marketing & Society, 8-10 April,2007, IIMK.

http://dspace.iimk.ac.in/bitstream/2259/367/ 1/215-218.pdf

6. Sundar S. (2007), Cause related marketing: Tactic or Strategy?,

International Marketing Conference on Marketing & Society, 8-10 April,

2007, IIMK


Journals

P. Rajan Varadarajan & Anil Menon; ‗cause related marketing: A coalignment of

Marketing strategy and

corporate philanthropy‘: Journal of Marketing; Vol. 52; July 1988, pp 58-74

The Harvard Business Review, 1996 Wall, Wendy. L; Companies change the ways

they make charitable donations, wall street Journal, June 21, 1984

7. Verrghese Anish K., Partnerships and Cause Related Marketing: Building

brands for the future.




8. http://www.brandchannel.com/ papers_review.asp?sp_id=583

9. http://www.tata.co.in/company/releases/inside.aspx?artid=b6jZ8mM6ddU

10. www.cry.org

11. www.causemarketingforum.com

12. Sue Adkins, Cause Related Marketing, Who Cares Wins (Boston:

Butterworth-Heinemann,1999), pp. 14, 15

.

13. www.home3americanexpress.com/corp/latestnews/blue-music.asp, April 17,

2004.

http://www.causemarketingforum.com/

cause related marketing by faraz

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