Cause related marketing is a joint funding and promotional strategy in which a firm’s sales are linked to a charity or other public causes(WebFinance 2015). Cause related marketing is an important part in a market, where businesses form a partnership with non-profit organizations to uphold attributes.
Anon, (2017). [image] Available at: https://youtu.be/jugd-_XOPpw [Accessed 17 Jun. 2017].
The psychology of how consumers think, feel, reason and select between different alternatives like brands, products and retailers is called Consumer Behavior. Firms and organizations can improve their strategies by understanding the consumers behavior. Therefore, when the company wants to develop a strategic relationship with the social which will benefit both of the parties, Cause related marketing occurs.
It is an effective way to make profit because it creates a good impact on the society as well as the product. By having the logo of the charity displayed on the brand or a supermarkets, not only that charity can largely benefit from it, also the consumer brand can be more effective as it will raise the awareness of the people.It is a win-win-win situation because it doesn’t only benefits the company and the charity but also the consumers. Companies will advantage; developing goodwill, Increasing reputation, Differentiating from the competition, boosting organizational morale, Increasing brand awareness, Increasing customers loyalty and Developing good public relations. On the other hand, social cause also benefits increase in funds and donations through great exposure, and greater public awareness.
For example, The Body Shop. It started since 1986 with “save the whale“ and many others environmental and human rights campaigns every year till now. One of the activities is that in 2003, The body shop collaborated with Women’s Aid. In order to raise the domestic violence awareness Women’s Aid cooperating with the body shop fundraised a campaign. The mint Lip balm by The body shop was a main cause marketing product which had a slogan ‘Stop Violence in the Home’. They also gave the ‘Survivors Handbook’ to those who donate 1.50 pounds from the lip balm or other of their products.
Anon, (2017). [image] Available at: https://youtu.be/zAXR9aQNj48?list=PLE86F7D046F188810 [Accessed 17 Jun. 2017].
Does cause-related marketing really effect the consumers?
By consumer surveys we could find out whether the product has a increase in sales, gain company’s reputation, increase brand awareness, customers loyalty and public relations. Companies and marketers must also make sure that the activities are processed ethically and appeal to customer’s perspectives. Studies show that consumer associations worldwide,pay more attention to human rights, environmental issues, social inequality, people are willingly to buy products from the brand that cooperate with non-profit organizations than low-involvement product. Due to the survey, majority of the consumers think that partnering with the non-profit organizations benefits and raises awareness to the public. According to the researchers, it shows that 78% of the customers understand the collaboration of profit and non-profit organizations is effective for non-profit organizations. They should receive financial assistance from corporations. We can conclude that Cause-Related marketing is effective in enriching the reputation of the brand ,increase sales by supporting the needs. There is likely a lesser chance of customers not supporting the campaign.
Referencing:
BusinessDictionary.com. (2017). What is cause related marketing? definition and meaning. [online] Available at: http://www.businessdictionary.com/definition/cause-related-marketing.html [Accessed 17 Jun. 2017].
Consumerpsychologist.com. (2017). Consumer Behavior: The Psychology of Marketing. [online] Available at: https://www.consumerpsychologist.com [Accessed 17 Jun. 2017].
Farache, F., Perks, K., Wanderley, L. and Sousa Filho, J. (2017). Cause related marketing: consumers’ perceptions and benefits for profit and non-profits organisations.
Institute ofFundraising. (2017). Great Examples of Cause Related Marketing. [online] Available at: http://www.institute-of-fundraising.org.uk/blog/great-examples-of-cause-related-marketing/ [Accessed 17 Jun. 2017].
Thebodyshop.com. (2017). Campaigns | Our Commitment | The Body Shop. [online] Available at: https://www.thebodyshop.com/en-gb/commitment/campaigns [Accessed 17 Jun. 2017].
Consumer behavior 