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Cause Related Marketing More Buck than Bang?. Presented by: Cut Dewi Kurnia Ammann Deependra Pandey Fatemeh Ghodrati Juri Geils-Lindemann. Agenda. Caused Related Marketing: What is it? CRM: More buck than bang? The types of CRM CRM Benefits – Both Sides Ethical vs. Social Issues
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Cause Related Marketing More Buck than Bang? Presented by: Cut Dewi Kurnia Ammann Deependra Pandey Fatemeh Ghodrati Juri Geils-Lindemann University of Berne 2010
Agenda • Caused Related Marketing: What is it? • CRM: More buck than bang? • The types of CRM • CRM Benefits – Both Sides • Ethical vs. Social Issues • Conclusion and Suggestions University of Berne 2010
Cause Related Marketing: What is it? A mutually beneficial collaboration between corporation and a non profit in which their respective assets are combined to: • Create shareholder and social value • Communicate a share values for both organisation *Similar to: corporate societal marketing, corporate issue promotions, corporate social marketing, social issues marketing, pro-social marketing and passsion branding * Different to:social marketing • American Express first introduced the phrase „cause-related marketing“ • Described its campaign to raise money for the statue of Liberty‘s restoration • Donated one cent for each used of its charge card. • New cardholders grew by 17% • Card usage increased by 28% University of Berne 2010
CRM: More buck than bang? Is CRM a clever manipulation to enrich a corporation‘s offers (generating a buck)… …or it is a sincere way of assisting a charity (creating a bang or social impact)? University of Berne 2010
The types of CRM Common practices • Transactional programs • Message promotion programs • Licensing programs Broader corporate social responsibility practices • Issue focused programs • Business activity programs • Target focused programs University of Berne 2010
Benefits for corporations It helps the bottom line It builds the brand It enhances the corporate reputation It generates goodwill It improves employee morale and retention Benefits for NPOs It increases funding for NPOs It heightens NPOs exposure and message efficacy It provides non-financial resources to NPOs CRM Benefits - Both Sides University of Berne 2010
Ethical Issues Marriage of strange bedfellows Walking the fine line Transparency and honesty Social Issues Favorable implications Gives consumer a chance to help the less fortunate Encourage corporate ctizenship and social responsibility among businesses Less favorable implications Distort the pattern of giving, disadvantaging less attractive but nonetheless worthy causes May diminish the compunction of individuals to act magnanimously toward others without expectation of return Ethical vs. Social Issues University of Berne 2010
Conclusion and Suggestions Conclusion • CRM is not a neutral instrument • It raises social and ethical issues, and offers clear benefits to NPOs and businesses Suggestions • Involve top management • Carefully pair cause and company • Thoughful develop the creative execution • Develop and use a code of CRM ethics University of Berne 2010