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Commits to making a contribution or donating  a percentage of revenues  to a specific cause  based on product  sales  e.g. donate 10% of the price of  each product sold Philip Kotler and Nancy Lee, Corporate Social Responsibility, Wiley, 2007 Cause Related Marketing
Announced for a period of time, for a specific product, and for a specified charity.  In this scenario, a corporation is most often partnered with a nonprofit organization, creating a mutually beneficial relationship designed to increase sales of a particular product and to generate financial support for the charity  For example, Comcast donates $4.95 of installation fees for its high-speed Internet service to Ronald McDonald House Charities through the end of a given month.  Many think of this as a win-win-win, as it provides consumers an opportunity to contribute for free to their favorite charities as well. Philip Kotler and Nancy Lee, Corporate Social Responsibility, Wiley, 2007 Cause Related Marketing
  A specified dollar amount for each product sold (e.g., Yoplait's 2003 promotion that promised 10 cents to the Susan G. Komen Breast Cancer Foundation for each pink yogurt lid returned by December 31).   A specified dollar amount for every application or account opened (e.g., Wells Fargobranches in Arizona the summer of 2003 donating $10 to local schools for every consumer checking account opened with direct deposit).   A percentage of the sales of a product or transaction is pledged to the charity (e.g., 73percent of the purchase price of Avon's Crusade Candle is returned to breast cancer causes). Philip Kotler and Nancy Lee, Corporate Social Responsibility, Wiley, 2007 TYPICAL CORPORATE CAUSE-RELATED MARKETING INTIATIVES
A portion of the sale of an item, sometimes not visibly disclosed, will be donated to charity (e.g., Windermere Real Estate's commitment that every time a sales associate sells home, a portion of the commission goes to their foundation that benefits nonprofit agencies dedicated to the homeless3). The company matches consumer contributions related to product-related items (e.g., Northwest Airlines matches miles donated by passengers for children with medical needs for travel). A percentage of net profits from sales of a product or products is pledged (e.g., Paul Newman pledging 100 percent of all profits and royalties after taxes from Newman's Own products for educational and charitable purposes Philip Kotler and Nancy Lee, Corporate Social Responsibility, Wiley, 2007 TYPICAL CORPORATE CAUSE-RELATED MARKETING INTIATIVES
The offer may be for only a specific, designated product (e.g., $1 donated for every Big Mac sold) or it may be for several or all products(e.g., Avon's line of "pink ribbon" products). It may be for a specific time frame (e.g., for Big Macs sold on World Children's Day) or open-ended (e.g., an affinity credit card for Rotarians that makes ongoing contributions tothe International Foundation with every purchase). The corporation may decide to set a ceiling for their contribution from sales (e.g., Lysol contributing five cents for each product coupon redeemed, up to $225,000). Philip Kotler and Nancy Lee, Corporate Social Responsibility, Wiley, 2007 TYPICAL CORPORATE CAUSE-RELATED MARKETING INTIATIVES
Attracting New Customers Raising Funds for a Cause Reaching Niche markets Increasing product sales Building valuable partnership that support the effort Building Positive Brand Identity Philip Kotler and Nancy Lee, Corporate Social Responsibility, Wiley, 2007 POTENTIAL CORPORATE BENEFITS
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  • 1.
  • 2. Commits to making a contribution or donating a percentage of revenues to a specific cause based on product sales e.g. donate 10% of the price of each product sold Philip Kotler and Nancy Lee, Corporate Social Responsibility, Wiley, 2007 Cause Related Marketing
  • 3. Announced for a period of time, for a specific product, and for a specified charity. In this scenario, a corporation is most often partnered with a nonprofit organization, creating a mutually beneficial relationship designed to increase sales of a particular product and to generate financial support for the charity For example, Comcast donates $4.95 of installation fees for its high-speed Internet service to Ronald McDonald House Charities through the end of a given month. Many think of this as a win-win-win, as it provides consumers an opportunity to contribute for free to their favorite charities as well. Philip Kotler and Nancy Lee, Corporate Social Responsibility, Wiley, 2007 Cause Related Marketing
  • 4. A specified dollar amount for each product sold (e.g., Yoplait's 2003 promotion that promised 10 cents to the Susan G. Komen Breast Cancer Foundation for each pink yogurt lid returned by December 31). A specified dollar amount for every application or account opened (e.g., Wells Fargobranches in Arizona the summer of 2003 donating $10 to local schools for every consumer checking account opened with direct deposit). A percentage of the sales of a product or transaction is pledged to the charity (e.g., 73percent of the purchase price of Avon's Crusade Candle is returned to breast cancer causes). Philip Kotler and Nancy Lee, Corporate Social Responsibility, Wiley, 2007 TYPICAL CORPORATE CAUSE-RELATED MARKETING INTIATIVES
  • 5. A portion of the sale of an item, sometimes not visibly disclosed, will be donated to charity (e.g., Windermere Real Estate's commitment that every time a sales associate sells home, a portion of the commission goes to their foundation that benefits nonprofit agencies dedicated to the homeless3). The company matches consumer contributions related to product-related items (e.g., Northwest Airlines matches miles donated by passengers for children with medical needs for travel). A percentage of net profits from sales of a product or products is pledged (e.g., Paul Newman pledging 100 percent of all profits and royalties after taxes from Newman's Own products for educational and charitable purposes Philip Kotler and Nancy Lee, Corporate Social Responsibility, Wiley, 2007 TYPICAL CORPORATE CAUSE-RELATED MARKETING INTIATIVES
  • 6. The offer may be for only a specific, designated product (e.g., $1 donated for every Big Mac sold) or it may be for several or all products(e.g., Avon's line of "pink ribbon" products). It may be for a specific time frame (e.g., for Big Macs sold on World Children's Day) or open-ended (e.g., an affinity credit card for Rotarians that makes ongoing contributions tothe International Foundation with every purchase). The corporation may decide to set a ceiling for their contribution from sales (e.g., Lysol contributing five cents for each product coupon redeemed, up to $225,000). Philip Kotler and Nancy Lee, Corporate Social Responsibility, Wiley, 2007 TYPICAL CORPORATE CAUSE-RELATED MARKETING INTIATIVES
  • 7. Attracting New Customers Raising Funds for a Cause Reaching Niche markets Increasing product sales Building valuable partnership that support the effort Building Positive Brand Identity Philip Kotler and Nancy Lee, Corporate Social Responsibility, Wiley, 2007 POTENTIAL CORPORATE BENEFITS