What is cause-related marketing?

According to cause-marketing consultant Jocelyn Daw, cause-related marketing (CRM) is a

mutually beneIicial collaboration between a corporation and a nonproIit in which their respective
assets are combined to:
O create shareholder and social value
O connect with a range oI constituents (be they consumers, employees, or suppliers)
O communicate the shared values oI both organizations
American Express Iirst used the phrase "cause-related marketing" in 1983 to describe its
campaign to raise money Ior the Statue oI Liberty`s restoration. American Express donated one
cent to the restoration every time someone used its charge card. As a result, the number oI new
cardholders grew by 45 percent, and card usage increased by 28 percent.
Cause marketing or cause-related marketing reIers to a type oI marketing involving the
cooperative eIIorts oI a "Ior proIit" business and a non-proIit organization Ior mutual beneIit.
The term is sometimes used more broadly and generally to reIer to any type oI marketing eIIort
Ior social and other charitable causes, including in-house marketing eIIorts by non-proIit
organizations. Cause marketing diIIers Irom corporate giving (philanthropy) as the latter
generally involves a speciIic donation that is tax deductible, while cause marketing is a
marketing relationship not necessarily based on a donation.
Cause-related marketing can become a cornerstone oI your marketing plan. Your cause-related
marketing activities should highlight your company's reputation within your target market.
Cause-related marketing can positively diIIerentiate your company Irom your competitors and
provide an edge that delivers other tangible beneIits, including:
O ncreased sales
O ncreased visibility
O ncreased customer loyalty
O Enhanced company image
O !ositive media coverage
By choosing a cause you are passionate about, cause-related marketing is emotionally IulIilling.
t's a way to merge your proIit center with your "passion center" and build a business that mirrors
your personal values, belieIs and integrity. I your cause also resonates with your target market,
your activities will generate tremendous goodwill and media attention can be its side eIIect.

#eal-World Cause-#elated Marketing Success
Cosmetic dentist Mark McMahon made himselI a media mini-celebrity with a thriving practice
due in part to his high-proIile pro bono work in his community, a strategy that landed him radio
and TV appearances in areas where he worked.
McMahon established partnerships with local charities, including a homeless shelter and a
shelter Ior battered women, and oIIered Iree dental services to their members. BeIore each event,
he contacted local media and let them know what he was up to. Several TV crews showed up,
Iilmed him treating patients, and later aired the segments on the evening news.
"These events were surprisingly easy to arrange, and every year, they'd help us get press simply
by doing these charitable promotions," McMahon says. "Local television news stations loved the
emotional element. And it was obviously rewarding to see patients aIter we'd treated them who'd
been in pain Ior months talking about how glad they were to be relieved oI their toothaches."
Another project involved the Delancey Street Foundation, a residential education center Ior
Iormer substance abusers and ex-convicts. " agreed to treat some oI their members' acute dental
needs," McMahon says. " quickly appreciated the media appeal oI transIorming the appearance
oI these rough-looking guys with terrible smiles."
McMahon captured the event with beIore and aIter photos. "These guys had missing teeth and
terrible smiles," he says. "So had a proIessional photographer capture beIore pictures oI these
guys in street clothes with their snarling Iaces. AIter Iixed their teeth, we took more pictures,
but this time dressed the guys in suits and ties, now looking like lawyers and accountants, with
me sitting right in the middle. The media loved it, and it was great seeing these men looking like
new."
McMahon's TV appearances created name recognition. "AIter did the story on a local television
show, was recognized in my gym by a masseuse who had seen the show," McMahon recalls.
"She said, ' was thinking about you this morning while was Ilossing my teeth.' She became a
great source oI reIerrals."(Excerpted Irom the book et Slightly Famous. Become a Celebrity in
Your Field and Attract More Business with Less Effort, by Steven Van Yoder.)

Cause-related Marketing is type oI marketing involving the cooperative eIIorts oI a "Ior proIit"
business and a non-proIit organization Ior mutual beneIit. Also reIerred to as cause marketing, it
diIIers Irom corporate giving because the relationship between the two companies is not based
around a speciIic donation.
What is "Cause #elated Marketing"?
t is a marketing partnership linking your company`s products to the MSF cause Ior mutual
beneIit.

The most common are the sales oI products Ior which a Iixed portion oI the proceeds are donated
to MSF. This is especially popular during Iestive seasons or to celebrate special days & events.
What are the advantages?
According to industry experts, "Cause Related Marketing campaigns do work - they have an
impact on brand equity, as well as consumer perception and loyalty"
Cause-#elated Initiative Example:
Magrudy's, the largest book retailer network in the United Arab Emirates, generously supports
MSF with its core business: by designing, printing, packaging and retailing MSF branded
postcards and books, Magrudy`s has considerably contributed to help communities aIIected by
emergencies.