Cause Related Marketing Flashcards, test questions and answers

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What is Cause Related Marketing?

Cause-related marketing (CRM) is a strategic business practice that involves forming a partnership between a corporation and a non-profit organization in order to promote goods and services while raising money for the non-profit. This type of marketing has become increasingly popular over the past few decades as companies have begun to recognize the potential benefits of associating their products with philanthropic causes. CRM is an effective way for companies to increase brand loyalty, improve customer perception, build relationships with consumers, and make a positive impact on society at large.The primary benefit of cause-related marketing is that it helps create positive associations between brands and social causes. By aligning their products with causes that are important to customers, companies can position themselves as socially responsible organizations and appeal to customers who are looking for ways to support charities or organizations that promote good causes. Additionally, by partnering with non-profits through CRM efforts, companies can demonstrate their commitment to giving back in meaningful ways. This commitment can help them stand out from competitors who may not be doing anything in terms of charitable giving or social responsibility initiatives.CRM also provides financial benefits to both parties involved in the partnership: while corporations make donations directly or fund campaigns related to charitable causes, they also benefit from increased sales resulting from increased awareness among target audiences thanks to their association with philanthropic activities. Likewise, non-profits receive more donations than they would have otherwise due to people being more aware of their work through partnerships with corporations. This additional funding allows them to further expand their programs and activities which will ultimately help them achieve even greater social change goals than before. Finally, cause-related marketing helps foster relationships between corporations and customers by providing an avenue for individuals to express their values through buying decisions something which can be incredibly powerful when it comes time for customers making purchase decisions among competitors’ offerings or even choosing one product over another from within the same company’s portfolio. Overall, cause related marketing is beneficial for both businesses and nonprofits alike as it provides financial resources for nonprofit organizations while allowing brands an opportunity to increase customer loyalty by demonstrating corporate responsibility initiatives rooted in doing good deeds rather than just selling products alone.