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Cause Marketing!

The world has shrunk as a result of technology and globalization and contrarily the magnitude of problems faced by people have become highlighted. Today there is more concern and awareness about every issue affecting humanity as a whole, countries, communities, families or individuals. People are aware. People are vocal, verbose even. There’s dissatisfaction and a willingness to change.

A marketer, when recognizes this need and initiates to help a cause and facilitate his profit motives simultaneously, treads the waters of cause marketing. Kotler describes Cause Related Marketing (CRMk) connects a company’s contributions to a certain cause, in order to incite customers, directly or indirectly, to participate in profit-driven transactions. The motive behind a purchase for the customer then fulfils a more private need and satisfaction. In an article published in Stanford Social Innovation Review (Summer 2009), entitled The Hidden Costs of Cause Marketing, the authors propagate the term
Consumption Philanthropy as a synonym for cause related marketing (Eikenberry, 2009, p.52). Consumption philanthropy relates the purchase of a product or service with the satisfaction of having contributed to a social cause.

Types of Cause Marketing
1. Transactional –
    The most widespread and commonly used model, it involves a certain amount of proceeds from
    each unit of product or service being contributed towards a social cause.
2. Promotion Based –
     Companies promote a cause and make contributions to associated organizations in monetary or non-     monetary terms.
3. Licensing – In this case, a charity licenses its name and logo to an organization. In return, some percentage of
     every sale made by the company the company related to/ in lieu of this charity is donated to them.
Cause Marketing
Cause Marketing
As a result of increasing awareness and sensitization amongst the consumers, they believe any company that is responsible enough to contribute towards a social cause is more deserving than the one that’s not.
However, it has also faced criticism for being a marketing gimmick and a pretense to hoard more profits.
Benefits of Cause Marketing
Penetrates market at micro level – Social causes address every level
Brand Visibility – It increases brand visibility, press coverage
Customer Loyalty
Cost Effective

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