Cause-related marketing (CRM) has become a widely discussed topic as well as an increasingly important marketing technique. In this paper, the subject is analysed not from the usual perspective of companies, but from the charities’ point of view, focusing on the example of British cancer charities.
The study shows that cause-related marketing has developed in context of a changing business environment and growing customer demand. Its relevance is highlighted with regard to consumer behaviour theories, introducing CRM as an innovative and promising marketing tool.
From the fierce competition in today’s market-place for charities and the changing attitude of donors, emerges the need for new charity marketing techniques. CRM is already widely used in the marketing of cancer-related organisations, as show various examples outlined in the text. However, the potential is not yet fully exploited and some substantial problems remain, especially in terms of company cooperation and missing empirical data.
As a result of the investigation, cancer charities are recommended to extend their CRM activities, to prepare for the arising tasks internally and to communicate their programmes openly to the public. Additionally, extensive future research is suggested to gain more knowledge about the effects of cause-related marketing.
This study comprises comprehensive material from secondary sources, such as books, articles and reports, along with extensive Internet research. Complementary, an in-depth interview provides insight into the work of Cancer Research UK.
The findings of this paper are of special interest for charities and companies alike, as well as for marketing students and lecturers.
Key words: cancer charities, cause-related marketing, charities, charity marketing, donations.
Table of Contents
1. Introduction
1.1 Scope and Objectives of the Paper
1.2 Structure of the Study
2. Methodology
2.1 Secondary Research
2.2 Primary Research
2.3 Case Study Approach
PART I - CAUSE-RELATED MARKETING AS A MARKETING TOOL
3. Background and Implications of Cause-related Marketing
3.1 The Rise of Corporate Social Responsibility
3.2 The History and Development of Cause-related Marketing
3.3 The Definition of Cause-related Marketing
3.4 Different Types of CRM Activities
3.4.1 Product Endorsement
3.4.2 Non-sales Orientated CRM
3.4.3 CRM Advertising and Sponsorship
3.4.4 CRM Community Partnerships
4. Cause-related Marketing and Consumer Behaviour
4.1 Maslow’s Hierarchy of Needs and the Evolution of Branding
4.2 Motivations and Barriers to Charitable Giving
4.3 Charitable Giving and Cognitive Dissonance
4.4 The Relevance of Cause-related Marketing
5. Conclusion Part I
PART II - UK CANCER CHARITIES AND CHARITY MARKETING
6. Cancer Charities in Britain – A General Overview
6.1 The Concept of Charity
6.2 Cancer Charities in Context
6.3 Cancer Research UK
7. Charity Marketing
7.1 Objectives and Issues in Charity Marketing
7.2 The Charity Marketing Mix
7.2.1 An Overview
7.2.2 Promotional Tools
7.3 The Increasing Competition in Charity Marketing
7.3.1 Reasons for Increasing Competition in Charity Marketing
7.3.2 Areas of Competition
7.4 Developments in Charity Marketing
7.4.1 More Sophisticated Marketing
7.4.2 Changes in Marketing and Fundraising Techniques
8. Conclusion Part II
PART III - THE APPLICATION OF CAUSE-RELATED MARKETING
9. Benefits and Problems for Charities
9.1 Benefits
9.1.1 Increase in Charity Funds
9.1.2 Publicity and Awareness
9.1.3 The Wide Scope of Cause-related Marketing
9.2 Potential Problems
9.2.1 Loss of Independence and Reputation
9.2.2 Exploiting Beneficiary’s Dignity
9.2.3 Problems in the Partnership with Companies
9.3 Overcoming Problems
9.3.1 Improving the Partnership with Companies
9.3.2 Addressing Other Problems
10. Case Studies
10.1 Cancer Research UK
10.2 Examples of Other Cancer Charities
11. Summary and Recommendations
11.1 Conclusion
11.2 Recommendations
12. Future Outlook
12.1 Further Research
12.2 The Future of Cause-related Marketing
Objectives and Core Topics
This dissertation analyzes the concept of cause-related marketing (CRM) from the perspective of charities, specifically focusing on British cancer charities. The primary research objective is to investigate the development and relevance of CRM as a marketing tool, assess how CRM techniques are currently employed by British cancer charities, and provide suggestions for future CRM applications in this sector to enhance partnerships and fundraising effectiveness.
- Evolution of cause-related marketing within the changing business environment.
- Consumer behavior theories and their relation to charitable giving and branding.
- Strategic assessment of charity marketing techniques and increasing competition.
- Benefits and challenges of implementing CRM within the cancer charity sector.
- Practical case study analysis of Cancer Research UK and other relevant charities.
Excerpt from the Book
3.3 The Definition of Cause-related Marketing
Despite its popularity, ‘cause-related marketing’ is a rather diffuse term and, since it has almost become a buzzword in recent years, it is difficult to precisely define its meaning.
Authors often refer to CRM as a company’s promotional activities undertaken to support a cause, or a licensing agreement with a non-profit organisation, such as use of logo or name (see Swaminathan and Reddy, 2000:387). Others concentrate on the charity’s perspective and stress the philanthropic image being associated with a product or service for financial return and publicity (see Allford, 1992:238).
In its report, Mintel describes cause-related marketing as “a situation in which a cause, which may or may not be connected to the work of a specific charity, can be used to increase the commercial potency of an existing company or brand” (Mintel, 2000).
The Cause-related Marketing Campaign of Business in the Community started in 1995, and “has helped CRM get off the ground in the UK” (Mintel, 2000). The development of their term definition during the last five years is subtle, yet significant.
In 1995, cause-related marketing was defined as “a commercial activity by which a business with a product, service or image to market builds a relationship with a cause or a number of causes for mutual benefit” (Adkins, 2000:11).
In contrast, the definition now used refers to CRM as “a commercial activity by which businesses and charities or causes form a partnership with each other to market an image, product or service for mutual benefit” (Adkins, 2000:11).
As can be seen from the differing definitions, cause-related marketing has moved towards a much stronger emphasis on mutuality. It is now understood as more than a marketing tool to boost short-term sales, reflected in the change of focus from ‘what the cause does for the brand’ to ‘what the brand can do for cause’ (see Mitchell, 2001:279).
Summary of Chapters
1. Introduction: This chapter introduces the topic of cause-related marketing, outlines the scope and objectives of the dissertation, and details the research approach.
2. Methodology: This section explains the qualitative and quantitative methods used, including extensive secondary research and an in-depth semi-structured interview with a charity fundraiser.
3. Background and Implications of Cause-related Marketing: This chapter discusses the origins of CRM, the rise of Corporate Social Responsibility, and provides a clear definition of CRM activities.
4. Cause-related Marketing and Consumer Behaviour: This section links consumer behavior theories, such as Maslow’s Hierarchy of Needs, to the development of emotional branding strategies in charitable giving.
5. Conclusion Part I: This chapter summarizes the findings regarding CRM as a marketing tool, emphasizing the transition toward emotional connections between companies and worthy causes.
6. Cancer Charities in Britain – A General Overview: This chapter provides context on the voluntary sector in the UK, with a specific focus on the role and competitive landscape of cancer charities.
7. Charity Marketing: This chapter explores the objectives of charity marketing, the application of the marketing mix in the non-profit sector, and the challenges posed by increased competition.
8. Conclusion Part II: This section synthesizes the challenges faced by cancer charities and highlights the growing necessity for more sophisticated, interactive fundraising approaches.
9. Benefits and Problems for Charities: This chapter provides a detailed analysis of the advantages of CRM, such as increased funding, alongside the risks, including loss of independence and the exploitation of beneficiaries.
10. Case Studies: This chapter presents practical real-world examples, primarily focusing on Cancer Research UK, to illustrate successful CRM implementations and partnerships.
11. Summary and Recommendations: This section concludes the study by offering strategic recommendations for charities regarding their CRM practices, internal preparation, and future partnership development.
12. Future Outlook: The final chapter discusses the necessity for further empirical research and assesses the future trajectory of CRM as a permanent element of the marketing mix.
Keywords
cancer charities, cause-related marketing, charities, charity marketing, donations, corporate social responsibility, branding, consumer behavior, fundraising, partnership, CRM activities, non-profit, competitive environment, emotional branding, marketing mix.
Frequently Asked Questions
What is the core focus of this research?
The dissertation examines cause-related marketing (CRM) specifically from the viewpoint of charities, rather than the traditional corporate perspective, using British cancer charities as a case study.
What are the primary themes discussed?
The paper covers the origins of CRM, the influence of consumer behavior on charitable giving, the competitive nature of the UK charity market, and the practical application of CRM campaigns.
What is the main research objective?
The objective is to determine the context in which CRM has developed, analyze how cancer charities employ CRM techniques amid modern marketing challenges, and provide future-oriented suggestions for CRM application.
Which scientific methods were applied in this study?
The research relies on comprehensive secondary sources, including books, journals, reports, and Internet research, supplemented by qualitative primary data from a semi-structured interview with a professional fundraiser.
What is covered in the main section of the paper?
The main sections analyze the definition and types of CRM, the psychological motives behind charitable giving, the competitive landscape of the UK cancer charity sector, and the benefits and drawbacks of forming CRM partnerships.
Which keywords characterize this work?
Key terms include cause-related marketing, cancer charities, fundraising, corporate social responsibility, and emotional branding.
How do cancer charities view the balance between fundraising and beneficiary dignity?
The study highlights that charities must maintain a "fine balance" by focusing on their true mission of support rather than just fundraising, ensuring that marketing imagery does not exploit the dignity of those they serve.
Why is the merger of cancer charities considered a significant case in this study?
The merger of the Imperial Cancer Research Fund and the Cancer Research Campaign is analyzed as a strategic move to share resources and experience, resulting in a more sophisticated and better-recognized "blue-chip" charity entity.
- Quote paper
- Jenny Walther (Author), 2002, Cause-related Marketing - Relevance and Application in British Cancer Charities, Munich, GRIN Verlag, https://www.grin.com/document/11330
