Monday, March 28, 2011

Cause Related Marketing Part II

Catch up on Part I here.         

          There are six main types of CRM arrangements, also referred to as “weaponry.” These options include: advertising, public relations, sponsorship, licensing and direct marketing, facilitated giving, as well as purchase-triggered donations. The one option that consumers see the most often are purchase-triggered donations. These can be found at various stores, more specifically, Gap which promotes the RED campaign that strives to end world hunger and find a cure for AIDS. Customers are asked if they would like to donate money to a specific cause, and if so, their bill or receipt will be x amount of dollars larger. I believe that this is not an effective way of communicating a message between the company, non-profit organization, and the consumer because there is no passion or outreach associated with the donation. Sure, it’s good for the cause, but I feel like there should be more interaction for the user. Overall, I think that public relations can be effective if used properly, but most people view it as a desperate cry for attention or viewage. Personally, I believe that sponsorships, facilitated giving, and direct marketing are the ones that prove to be most effective, simply due to the fact that the message or brand isn’t being shoved down your throat. Sure sponsorships can be overwhelming and direct marketing may seem too drastic, but many companies have teamed up with non-profits to increase awareness for both parties, in a respectful and peaceful way.

          The benefits of Cause Related Marketing are also discussed in the article. I think the most important ones discussed are community support, motivated and loyal employees, and reinforced company mission. The whole idea behind CRM is to better the place we live in. This should be the only benefit companies should worry about. I also think that motivated and loyal employees are a great benefit, because if people love where they work and what they do, then they themselves are happier people and will make the community a better place to be. Reinforcing the mission is another great benefit. If a company partners with a cause that correlates and integrates with their belief, purpose, and practices, the campaign has the potential to be extremely successful for everyone involved.

Cause Related Marketing Part 3 will be coming shortly!  





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