What is Cause-Related Marketing?

Whether you're a marketing student or you already have a career in the field, you may have heard the term 'cause-related marketing' before. But perhaps you're not sure exactly what it means.

Cause-related marketing, also known as cause marketing, is a marketing strategy in which a business aims to improve its reputation by promoting a cause that is important to consumers. These initiatives often involve collaborations with nonprofit organizations.

Read on for more information.

What Is a Cause-Related Marketing Campaign?

Cause-related marketing (CRM) is a type of marketing strategy that draws awareness to both a for-profit business and the causes or values that the business stands for. Studies have shown that the majority of consumers prefer to buy from companies that care about social causes and are willing to do something about issues such as climate change and sustainability.

Businesses can improve their brand image and customer loyalty through cause-related campaigns. These campaigns also allow them to reach new customers. Cause-related marketing campaigns usually involve collaborations between businesses and nonprofit organizations. These collaborations provide mutual benefits for both organizations.

The nonprofit partner receives awareness and (sometimes) financial support, while the business enjoys an improved reputation and increased sales by aligning itself with a good cause.

What Are Some Examples of Cause-Related Marketing?

There are many examples of cause-related marketing in the world today. Some, like the collaboration between Nike and Colin Kaepernick, spent a lot of time in the spotlight. Others are less talked about but still well-known.

Some top cause-related marketing campaigns include:

• Yoplait's Save Lids to Save Lives: This campaign raises money to fight breast cancer; proceeds go to the Susan G. Komen Foundation.
• Box Tops for Education: This campaign was started by General Mills to help students raise money for their schools.
• Warby Parker's Buy a Pair, Give a Pair: This campaign gives glasses to those who need them free of charge. The company partners with various medical organizations and businesses to provide this service.

What Are the Benefits of Cause-Related Marketing?

As noted above, cause-related marketing campaigns benefit both businesses and nonprofit organizations. Let's take a closer look at how each organization benefits from these campaigns.

For-Profit Businesses

Businesses understand that strong brand awareness is important, and one of the best ways to increase brand awareness is through an impactful cause marketing strategy. Some of the benefits of these campaigns include:

• meeting strong demands for corporate social responsibility (CSR)
• building relationships within the community
• improving public image and brand loyalty
• improving employee morale
• setting themselves apart from competing businesses

Ultimately, businesses that participate in cause-related marketing campaigns improve their bottom line by drawing positive attention to their products or services, reaching more of their target audience in the process.

Nonprofit Organizations

Nonprofit organizations are not out to make money, but there are a lot of costs involved in running a nonprofit. Cause-related marketing benefits these charitable organizations by raising awareness, which in turn brings in more funding.

Some specific ways nonprofits benefit from cause-related marketing campaigns include:

• increased exposure and brand awareness
• increased funds to help cover operational costs
• increased resources

Nonprofit organizations that collaborate with businesses generally experience greater levels of success. This is because they have the potential to reach more supporters than they would be able to do on their own.