Cause Based Marketing: Cause Based Marketing

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Cause Based Marketing Introduction: In ‘traditional marketing’ the marketers had much better control of both the market and the message. They could by deft manipulation of attributes such as price, place, promotions, packaging, etc. orient the customer to their products. In those times consumers could only see messages and hear noises in the market created by the company. That has, however, with the advent of the all pervading internet and social media (popularly known as Web 2.0) changed. In the contemporary market where the din of user generated content overshadows everything else, companies have realized that what customers hear can no longer be controlled. In fact the tables have turned and it is the customers who are more in control.…show more content…
To put it succinctly, Cause Based Marketing is basically a marketing program that attempts to achieve two objectives. It strives to improve corporate performance and at the same time aid worthy causes by linking fund raising for the benefit of a cause to the purchase of the company’s products and services. That portion of the marketing budget that would normally have been spent for advertising and sales promotion is instead set aside for contribution to a cause on behalf of those customers who engage in revenue-producing transactions. This can be within a specified time period (Unilever India ran a campaign for building toilets in rural areas to prevent open defecation. The company advertised that it would contribute Rupees Five for every click it received on its DTA website. This website softly promoted its toilet cleaning liquid – Domex. This was time bound campaign) or can be an ongoing activity (Support the Girl Child Education Programme launched by P&G where it contributes Rupee One for the cause on purchase of its Women’s Sanitary Products by consumers). American Express Company was the first corporate to launch such a program. In 1983 a campaign was launched by them to renovate the Statue of Liberty. It would be interesting to note that the term ‘cause-related marketing’ has been copyrighted by the Travel-Related Services, a unit of the American Express…show more content…
It improves social welfare (image), creates a well differentiated brand positioning, builds extremely strong consumer bonds (especially when it resonates with highly opinionated target audiences), enhances company’s public image, creates a reservoir of goodwill among its many stake holders such as customers, government, share holders etc; boosts internal employee morale & galvanizes them, drive sales and increases the company’s market

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