2012/11/29

Hot Topic: Cause Marketing


Hot Topic: Cause Marketing
What is cause marketing?

Cause marketing is type of marketing involving the cooperative efforts of a for profit business and a non-profit organization for mutual benefit.

 

Advantages

§   Increase the sales: according to the study by Cone’s 2010 cause evolution study, 61% of customers are willing to try the new brand which they never experience before if the company is associated with cause marketing. While cooperating with the positive image of nonprofit organization can boost the sales revenues and generate the public awareness. The word of mouth in these cases will be so strong that the companies will see a phenomenal growth in their sales turnover and net profits.

§   Building a positive company image: cause marketing campaigns can assist to build the public image to customers, which leads customers to viewing the companies into a more trustworthy, reliable, and charitable image.

§   High employee’s involvement into the cooperated non-profit organization: the cause marketing always requires the companies’ employees to get involved in all perspective of the campaign. It makes all employees bond together to be the volunteers to help each others. Additionally, the companies itself can benefit from a rise in the morale of their employees from tying up with the organization

 

Disadvantages

Companies’ mission statement and products doesn’t fit with the theme of the non-profit organization: too many companies are too profit-driving to cooperated organization. For example, in 2011, KFC has the cause marketing campaigns to support Juvenile Diabetes Research Foundation. It has caused a public confusion about the relation between the image of the Juvenile and the chicken. People and public confused about the purpose and relation of a fast food chain store with the non-profit organization

 

Recommendation

1.      Choose the right organization to fit: it is important for the companies to choose the right organization to fit with the mission statement and their own related products.

2.      High involvement in employees: make all the employees feel more value and engage in the activities with the non-profit organization.

3.      Company should be special and environmental stability: It is necessary for the employees to get involved in the activities who love doing the activities.

没有评论:

发表评论