Question

Armani and Ralph Lauren have donated selected portions of their sales to AIDS research. Many beauty and cosmetics companies embarked on a portion of the price of their “pink - ribbon” products to breast cancer charities.

(a) Referring to the campaigns above that was run by companies, describe and explain what is cause-related marketing? Illustrate with examples. (5 marks)

(b) What impact does the choice of cause have on the effectiveness of the marketing campaign? Explain and illustrate using examples of cause-related marketing. (15 marks)

Answer 1

Answer:

A): A marketing strategy in which a company supports a cause and publicly identifies itself with such a cause is known as cause-related marketing. A marketing approach in which an organization supports a cause and publicly identifies itself with such cause is known as cause-related marketing. CSR is when the organization wants to give back what it receives from it to society, while it triggers similar publicity as it spends time and resources on a specific cause. Several times these groups end up endorsing an NGO that supports a specific cause. Armani and Ralph Lauren is a perfect example of cause-related marketing. In reality, if a company supports a cause all out, it will through awareness further increase its brand value. Therefore a marketer has to consider what value such marketing can bring to the company as well as to the customers before introducing it. It has also improved the brand image of the Armani and Ralph Lauren brands, as social issues such as AIDS awareness are a cause to which voice must be lifted. In reality, if a company supports a cause all out, it will through awareness further increase its brand value. Therefore a marketer has to consider what value such marketing can bring to the company as well as to the customers before introducing it. It has also improved the brand image of the Armani and Ralph Lauren brands, as social issues such as AIDS are a cause to which voice must be lifted. Major beauty brands attend the national level every year — Aveda, Clinique, Conair, and Estee Lauder. Many famous philanthropic activities include Hiv, autism, diabetes, and cancer awareness and education. National philanthropy can relate buying and advertising programs to key environmental concerns. Each manufacturer or cosmetics brand should partner with a cause to be a good corporate citizen whether it concerns health, social or environmental matters.Estee Lauder, a US-based cosmetics company, is engaged by "Pink Ribbons" in the women's breast cancer awareness movement and creates a special product range for this initiative (e.g. Pink Ribbon lip package collection). The benefits of their efforts include medical care to women with a breast cancer diagnosis and promote research for a cure. Although there are many brand benefits to marketing, there are also many benefits to the non-profit with which you want to partner. Because charities have a minimal marketing budget, collaborating with a small business or company will help to raise awareness of their activities and cause.

B): In an era in which accountability is essential to their bottom line, businesses understand that customers are worried about their effect on society. Customers want brands to be socially responsible.70 percent of customers want to learn how brands deal with social and environmental issues. Because marketing requires cooperation for a mutual purpose between a profit-making company and a nonprofit organization. Besides, marketing may also apply to social or charitable activities which are placed on by for-profit companies. Cause marketing is usually used to increase charity partner brand recognition and visibility. And this method has other benefits, such as:

• Meeting Corporate Social Responsibility Demand.
• Improving your reputation for the company.
• Creating a Group relationship.
• Raising loyalty to the brand.
• Strengthening morale for workers.
• Separating ourselves from the competition.

A good marketing campaign for the cause would represent your organization and customers' values. While there have been instances of spontaneous, productive collaborations, if the cause is linked to your brand somehow, marketing will come off as more real. Understanding your audience and creating a strategy around their beliefs would not only benefit the non-profit in which you are associated but may also benefit increasing your brand loyalty. Strategizing with your non-profit partner will help ensure you 're both getting the most out of the relationship. Marketing campaigns developed omnichannel marketing approaches to raise visibility and exposure in some of the most successful markets. Using marketing automation can help you strategize by freeing yourself from the boring tasks of posting or sending emails to social media. For example, the "Red movement" featured many fashion companies (e.g., NIKE, Gap, Converse) joining efforts to raise money to assist in Africa's initiatives for AIDS prevention. The patronization of a company that they believe has values aligned with their own, may increase customer satisfaction with that brand and its goods.

Also, customer engagement for CRM products can be another form of market differentiation. With corporations such as Chesebrough-Pond, Revlon, and Pharmacia, Elayne McClaine has identified and developed new domestic and global trends in hair care, skin care as well as other consumer segments. Her experience in hair, skin, and scalp treatments has contributed to the development of the Rogaine-sponsored Women's Institute for Fine and Thinning Hair. Created by Rogaine. The American Academy of Dermatologists has honored McClaine for marketing and advertising excellence. ESME Market Specialists, Who work with companies seeking expertise in product creation, international marketing, and account planning. Most businesses are kept accountable by their customers and want to engage in programs for corporate social responsibility. As technological advancements, people become more conscious of industry practices and think about improving those patterns. Through pursuing corporate social responsibility, companies will help make the planet a better place while keeping their business priorities in line.

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