Cause-related MKT

Mind Map by kenniaslzr, updated more than 1 year ago
Created by kenniaslzr almost 6 years ago


Mapa Mental KSR

Resource summary

Cause-related MKT
  1. CRM practices
    1. Common Practices
      1. 1) Transactional programs: Classic exchange based donation. Contribution given to a social cause per sold unit.
        1. Example: Mars supporting Special Olympics
        2. 2) Message promotion programs: Monetary or non monetary transaction is given by the company to the cause promoted.
          1. Example: Barnes & Noble Anti-Defamation League “Close the book on hate”
          2. 3) Licensing programs: Licensing a non-profit organization’s logo for an imprantur in a certain product; a percentage of the transactions are given to said organization.
            1. Example: Visa and World Wide Fund
          3. Practices related with social responsibility
            1. 1) Issue focused programs: Businesses partner with non-profit groups affiliated with a selected issue, which supports the corporation’s image.
              1. Example: Liz Clairborne’s Family Violence Prevention Fund
              2. 2) Business activity programs: Building awareness of a corporation’s ethical practices.
                1. Examples: Kraft Foods’ “fair-trade” coffee brand
                2. 3) Target focused programs: Programs that aid a particular group, often the company’s core market segment.
                  1. Example: Taco Bell’s sponsorship of Boys and Girls clubs of America
              3. CRM benefits
                1. 1) Bottom line: Profitable well designed campaigns.
                  1. 2) Brand building: Selecting causes with the consumers’ affinity translates into brand memorability.
                    1. 3) Corporate reputation enhancement: Heightened respect for the company.
                      1. 4) Goodwill generation: Goodwill can prevente long-term damage.
                        1. 5) Employee morale improvement: Employees feel satistfaction and pride from helping a worthy cause.
                          1. 6) NPOs’ funding: Increased financial resources.
                            1. 7) NPOs’ exposure: Greater exposure than they would achieve on their own.
                              1. 8) Non-financial resources to NPOs: Marketing talent and Business acumen.
                              2. Ethical Issues
                                1. 1) Marriage of strange bedfellows: Public service for corporate benefit.
                                  1. 2) Walking the fine line: Advocacy or exploitation.
                                    1. 3) Transparency and honesty: Discussing openly all elements of this campaign.
                                      1. 4) Financial equity: Consumers overlooking financial equity.
                                      2. Social Implications
                                        1. Favorable implications
                                          1. For society: Consumers get to help the less fortunate in a convenient way. Consumers can be caring citizens in their ordinary routines. Elevation of consciousness about the needs of fellow humans. Injecting social and personal meaning into the marketplace. Increased awareness of social problems.
                                            1. For the company: CRM can contribute to a more compassionate marketplace. Humanizing a transaction. Encouraging social responsibility. Consumers reward corpotations that are ethical actors.
                                            2. Less favorable implications
                                              1. For society: CRM may distort the pattern of giving. Consumers get used to giving in exchange for something. Relieving givers of any true authorship for their conduct.
                                                1. For the company: Giving fatigue from the consumers. Cause selection may be selected over others, despite equal or greater need or merit.
                                              2. Suggestions
                                                1. 1) Involve top management: To ensure enduring commitment and culture transformation inside the company. 2) Carefully pair cause and company: Focus on target market to choose a cause. 3) Thoghtfully develop the creative execution: Achieving multiple objectives, genuine regard and authenticity. 4) Use a code of CRM ethics: Avoid abuse or misrepresentation.
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