How Does Cause-Related Marketing Work?

Cause-related marketing is essentially collaboration between a business organization and a non-profit to promote a specific cause and raise funds for it. There are several versions of cause-related marketing to suit the needs of different businesses and non-profit organizations. The book “Cause Marketing for Nonprofits” by Jocelyn Daw describes some of the popular ways cause-related marketing can work: Product Sales Some companies like to bring out various products that highlight the cause, and sell them through various marketing and retail channels. It could be T-Shirts, Caps, Badges, Bags, Watches, and other such products that have mass selling potential. People like to associate themselves with the cause and make their own statement by buying and using those products. The non-profit organizations receives a portion of the sale proceeds generated through such sales campaign. Point of Purchase Schemes In this strategy, the non-profit partners with a renowned store chain to raise funds for a particular cause. The people who make purchases at the store are asked if they would like to add a certain percentage of their bill as a donation amount for the cause. The amount is kept low in order to generate maximum positive response from the people. The funds raised in this manner can add up to a substantive amount over a period of time. Licensing the Non-profit’s Brand Well-known non-profit organizations can leverage their own logo and brand power for raising funds. They may allow various gift and souvenir product manufacturers to use their logo or brand on their products. This promotes the non-profit’s cause, and generates funds for it at the same time. The manufacturer benefits from it because customers are willing to buy the product because of its association with the non-profit. Co-Branding The non-profit organization may engage in co-branded events and programs along with various corporate and other organizations and institutions. The ticket revenues and other funds generated from such events or programs contribute towards the causes promoted by the non-profit organization. Social Marketing Some corporate houses like to create marketing campaigns that promote a social cause in association with a non-profit organization. For instance, a pharmaceutical company may associate itself with a cancer research foundation to raise funds for the non-profit. It helps to promote the goals of both the business entity and the non-profit.


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