Cause-related marketing
Cause-Related Marketing (CrM) describes a type of marketing that focuses on the cooperative efforts of a company and a non-profit organization for mutual benefit. The term is sometimes very broadly and generally applied to any kind of marketing effort for social and other charitable purposes, including the in-house marketing efforts of non-profit organizations. Cause-related marketing differs from corporate giving (philanthropy), which provides for a specific, earmarked donation, which is tax deductible, in that the service to the cooperating NPO in the context of a cause-related marketing relationship is rarely in the form of a donation .
history
One of the first cause-related marketing campaigns came about in 1976 through a partnership between the Marriott Corporation and the March of Dimes charity . Marriott's goal was to generate cost-effective PR for the opening of their 200-acre Marriott's Great America in Santa Clara, CA. March of Dimes, on the other hand, saw a good opportunity to improve your own fundraising. The measure was carried out simultaneously in 67 cities in the western United States and was rated as extremely successful.
The program was designed by Bruce Burtch . Burtch is believed to be the originator of the phrase "Do Well by Doing Good". In 1977, this was his answer to the CEO of a large company when asked how he defined the purpose and purpose of his life.
Another early form of cause-related marketing campaign was launched in 1979 by Rosica, Mulhern & Associates for Famous Amos Biscuits. As part of this campaign, Wally Amos became the national spokesman for the Literacy Volunteers of America. According to the organization, Wally raised more people's awareness of illiteracy and its consequences than "any other person in history." This strategic measure made a significant contribution to spreading and establishing the Famous Amos Cookies story.
The coining of the term "cause-related marketing" is attributed to American Express . What was meant was the publicly staged support of a non-profit organization in certain regions. The term was used to describe a marketing campaign initiated by American Express in 1983, the "cause" of which was the renovation of the Statue of Liberty. For every transaction made with an American Express Card, the credit card company donated a penny to the project - the restoration of a national symbol of independence, the Statue of Liberty . Over a period of four months, the project received US $ 2 million as part of the CrM campaign. The number of credit card transactions increased by 28% during this time.
The meaning of the term cause-related marketing has subsequently been broadened, ie it now refers to a larger subset of social marketing . In recent years, cause-related marketing has become the umbrella term for the joint effort of a company and a non-profit organization to achieve a non-profit goal.
backgrounds
According to a report published by onPhilanthropy, the market volume in the areas of CrM and sponsorship in relation to American companies has increased sharply in recent years, in 2008 the aggregate budget was 1.52 billion US dollars.
Cause-related marketing is a powerful marketing tool, especially in the US, which is increasingly used by both companies and nonprofit organizations. According to Cone Millennial's 2006 root cause research, 89% of Americans (ages 13-25) would be willing to switch from one brand to another brand of a comparable product if that brand were associated with a "good cause". The same study also showed that a significant percentage of respondents would prefer to work for a company that takes social responsibility.
Use
Numerous other studies show that cause-related marketing has helped to increase the profits of companies. For example, the American Express campaign resulted in a 17% increase in new customer registrations and a 28% increase in card usage.
advantages
The potential benefits of cause-related marketing for non-profit organizations include better ways to promote the non-profit organization and its concerns through donations from a company's larger financial resources and increased reach to the general public and other possible supporters via customers - and to reach the employee base of the cooperating company. The potential benefits of cause-related marketing for companies include positive public relations , improved customer loyalty and additional market opportunities.
Legal
Even if there is talk of a "donation", cause-related marketing is usually not a donation in the sense of tax law, but a sponsorship or license agreement .
In Germany, cause-related marketing was initially classified in several cases as prohibited "emotional advertising" and thus as anti-competitive. The main argument for this was above all the lack of a factual connection between the “good cause” and the advertised product. With the judgment of the Federal Court of Justice of September 2005, however, it was made clear that a direct connection between social commitment and the advertised product is not necessary.
Online Cause Related Marketing
Although originally conceived as an offline marketing strategy, cause-related marketing has been working more and more via online channels in the last ten years. This is partly due to the increasing proportion of households with Internet connections. As with other types of marketing campaigns, companies can combine their online marketing channels along with other offline channels such as print media.
Individual evidence
- ↑ The Record article, "He spread word on literacy aid"
- ↑ http://www.aeispeakers.com/print.php?SpeakerID=24
- ↑ http://media.wiley.com/product_data/excerpt/09/04717175/0471717509.pdf
- ^ IEG Guide To Corporate / Nonprofit Relationships
- ↑ onPhilanthropy: Articles: SPECIAL REPORT: Consumer Philanthropy
- ↑ Civic-Minded Millennials Prepared to Reward or Punish Companies Based on Commitment to Social Causes
- ↑ Proving that Cause Marketing is a Win-Win - Cause Marketing Forum - Cause Related Marketing Source
- ^ BGH, judgment of September 22, 2005, Az. I ZR 55/02
- ↑ Felix Dresewski, Stephan C. Koch: Selling with a good cause: Case Related Marketing in Germany . In Mario F. Ruckh (Hrsg.), Christian Noll (Hrsg.), Martin Bornholdt (Hrsg.), Social Marketing as Stakeholder Management: Basics and Perspectives for a Relationship-Oriented Management of Nonprofit Organizations , Haupt Verlag, 2006, p. 195 ff., ISBN 978-3-258-07129-9 , p. 201