“Cause for Marketing or Marketing for Cause?” Prashant Kumar, author of this article, addresses Cause Related Marketing (CRM). CRM can be defined as a hybrid type of marketing that companies implement to try to connect their corporate identity to a positive cause or nonprofit organization. In recent years CRM is becoming more prevalent for a widespread number of companies.
These organizations are realizing that they need to have a perceptible sense of social responsibility in their practices, sales, operations, and all communities affected by these things. Another reason for CRM’s growth is that public-opinion research has become that effective cause programs can enhance a company’s reputation and brand image and increase the credibility of its marketing effort while giving customers a convenient way to contribute to nonprofit organizations through their purchasing decisions.”These increasing involvement of companies in cause related actions have led to the growth of CRM. The article looks at one success story about American Express and their campaign to raise money for the restoration of the Statue of Liberty. American Express was pledged to donate one dollar with the issue of every new card and one cent when card holders made a purchase. The results were staggering; $1.7 million dollars were donated towards the cause. The Statue of Liberty was not the only satisfied part. American Express card usage increased by a confounding 28%, along with an increase of 45% of new cardholders. This was one of the very first successful cause related marketing efforts that helped all parties involved: the cause at hand, the company supporting the cause, and the consumers giving to the cause.
Please keep a lookout for Cause Related Marketing Part 2 and 3 coming soon!
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