FACTOID # 30: If Alaska were its own country, it would be the 26th largest in total area, slightly larger than Iran.
 
 Home   Encyclopedia   Statistics   States A-Z   Flags   Maps   FAQ   About 
   
 
WHAT'S NEW
 

SEARCH ALL

FACTS & STATISTICS    Advanced view

Search encyclopedia, statistics and forums:

 

 

(* = Graphable)

 

 


Encyclopedia > Cause marketing

Cause marketing or cause-related marketing refers to a type of marketing involving the cooperative efforts of a "for profit" business and a non-profit organization for mutual benefit. The term is sometimes also used to refer to the marketing efforts of social and other charitable causes generally. Cause marketing differs from corporate giving (philanthropy) as the latter generally involves a specific donation that is tax deductible, while cause marketing is a marketing relationship generally not based on a donation. Wikibooks has more about this subject: Marketing Look up marketing in Wiktionary, the free dictionary. ... A nonprofit organization (abbreviated NPO, or non-profit or not-for-profit) is an organization whose primary objective is to support an issue or matter of private interest or public concern for non-commercial purposes. ... Philanthropy is the act of donating money, goods, time, or effort to support a charitable cause, usually over an extended period of time and in regard to a defined objective. ... A tax deduction or a tax-deductible expense, is an item which is subtracted from gross income in order to arrive at the taxable income. ...

Contents

History

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 Liberty Restoration project.[1] 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. American Express (NYSE: AXP), sometimes known as Amex is a diversified global financial services company, headquartered in New York City. ... For other freedom monuments, see Monument of Liberty. ...


Background

According to a report published by onPhilanthropy[2], 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. To sponsor something is to support an event, activity, person, or organization financially or through the provision of products or services. ...


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[3], 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 companies to be "good corporate citizens"[4]. These studies also show a substantial increase from just before to just after the September 11, 2001 attacks. Wikibooks has more about this subject: Marketing A brand is a collection of images and ideas representing an economic producer; more specifically, it refers to the concrete symbols such as a name, logo, slogan, and design scheme. ... Social responsibility is a doctrine that claims that an entity whether it is state, government, corporation, organization or individual has a responsibility to society. ... A sequential look at United Flight 175 crashing into the south tower of the World Trade Center The September 11, 2001 attacks (often referred to as 9/11—pronounced nine eleven or nine one one) consisted of a series of coordinated terrorist[1] suicide attacks upon the United States, predominantly...


Numerous other studies[5] 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.


Benefits

The possible benefits of cause marketing for nonprofit organizations include an increased ability to promote the nonprofit organization's cause via the greater financial resources of a business, and an increased ability to reach possible supporters through a company's customer base. The possible benefits of cause marketing for business include positive public relations, improved customer relations, and additional marketing opportunities. Public relations (PR) is the business, organizational, philanthropic, or social function of managing communication between an organization and its audiences. ... Customer relationship management (CRM) is a broad term that covers concepts used by companies to manage their relationships with customers, including the capture, storage and analysis of customer information. ...


Online Cause Marketing

Overview

Although originally a marketing strategy that occurred offline, cause marketing has been conducted more and more through online channels in the last decade. This is due in part to the increasing percentage of households with internet connections. As with other types of marketing campaigns, companies can leverage online marketing channels along with other offline channels such as print and media. (Sometimes referred to as integrated marketing). Integrated Marketing Communications (IMC) A management concept that is designed to make all aspects of marketing communication such as advertising, sales promotion, public relations, and direct marketing work together as a unified force, rather than permitting each to work in isolation. ...


Online Charity Auctions

In recent years, online auctions have been used in cause marketing strategies using a number of different online auction platforms. eBay provides a dedicated charity program, eBay Giving Works, that allows online auction sellers to donate a percentage of their sales to a nonprofit orgranization. Businesses and nonprofit organizations can also use the program for cause marketing and nonprofit fundraising programs. This and other online auction platforms like, cMarkets, have been used to conduct a wide range of cause marketing campaigns, like the auctioning of the celebrity-autographed Harley by Jay Leno in 2005.[6][7] eBay is one of the most widely known online auction websites The online auction business model is one in which participants bid for products and services over the Internet. ... eBay headquarters in San Jose eBay North First Street satellite office campus (home to PayPal) eBay Inc. ... Megastar redirects here. ... Jay Leno (born James Douglas Muir-Leno April 28, 1950) is an Emmy-winning American comedian who is best known as the current host of NBC televisions long-running variety and talk program The Tonight Show. ...


Types of cause marketing

Cause Related marketing can take on four forms, including:

  • Event Sponsorship (including all kind of non-profit sponsorships)
  • Transactions Base (corporate donation based on business transactions such as sales)
  • Joint-Promotions (such as advertising, licensing and public relations)
  • In-Kind Contribution (including all non-cash related donation such as donation on clothes)

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 Breast Cancer Foundation. The company packages specific products with a pink lid that consumers turn in, and in turn Yoplait donates 10 cents for each lid.
  • In 1979, Wally Amos become 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.[citation needed]

This article or section does not cite its references or sources. ... The Susan G. Komen Breast Cancer Foundation is a foundation created to support breast cancer research. ... Wallace Wally Amos Jr. ... The American Heart Association (AHA) is a non-profit organization in the United States that fosters appropriate cardiac care in an effort to reduce disability and deaths caused by cardiovascular disease and stroke. ... A box of Honey Nut Cheerios breakfast cereal brand. ... Product Red (styled (PRODUCT)RED) is an initiative begun by U2s frontman, Bono and Bobby Shriver of Debt AIDS Trade in Africa (DATA) to raise money for the Global Fund to Fight AIDS, Tuberculosis and Malaria. ... The Global Fund to Fight AIDS, Tuberculosis & Malaria was established in 2002 to dramatically upscale global financing of interventions against the three pandemics. ... Apple Inc. ... Motorola (NYSE: MOT) is an American multinational communications company based in Schaumburg, Illinois, a Chicago suburb. ... It has been suggested that Giorgio Armani S.p. ... Gap, Incorporated (NYSE: GPS) is an American clothing and accessories retailer based in San Francisco, California and founded in 1969 by Donald Fisher and Doris Fisher. ...

See also

A corporate image refers to how a corporation is perceived. ... A Foundation is a type of philanthropic organization set up by either individuals or institutions as a legal entity (either as a corporation or trust) with the purpose of distributing grants to support causes in line with the goals of the foundation. ... This is a list of over 200 articles on marketing topics. ... Wikibooks has more about this subject: Marketing Look up marketing in Wiktionary, the free dictionary. ... A nonprofit organization (abbreviated NPO, or non-profit or not-for-profit) is an organization whose primary objective is to support an issue or matter of private interest or public concern for non-commercial purposes. ... Philanthropy is the act of donating money, goods, time, or effort to support a charitable cause, usually over an extended period of time and in regard to a defined objective. ... Public relations (PR) is the business, organizational, philanthropic, or social function of managing communication between an organization and its audiences. ...

References

  1. ^ http://media.wiley.com/product_data/excerpt/09/04717175/0471717509.pdf
  2. ^ http://www.onphilanthropy.com/site/News2?page=NewsArticle&id=6863
  3. ^ http://www.csrwire.com/PressRelease.php?id=6641
  4. ^ http://www.thinkbeforeyoupink.org/PDF/ConeCorpCitizen.pdf
  5. ^ http://www.causemarketingforum.com/page.asp?ID=345
  6. ^ http://www.causemarketingforum.com/directory_detail.asp?ID=76
  7. ^ http://www.auctionbytes.com/cab/abu/y205/m11/abu0154/s05
  8. ^ http://www.joinred.com/default.asp

External links


 
 

COMMENTARY     


Share your thoughts, questions and commentary here
Your name
Your comments

Want to know more?
Search encyclopedia, statistics and forums:

 


Press Releases |  Feeds | Contact
The Wikipedia article included on this page is licensed under the GFDL.
Images may be subject to relevant owners' copyright.
All other elements are (c) copyright NationMaster.com 2003-5. All Rights Reserved.
Usage implies agreement with terms, 1022, m