Essay About Cause Marketing And Corporate Social Responsibility

Do You Think Cause Marketing Actually Works?
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Do you think cause marketing actually works?
Yes, cause marketing is extremely effective for both companies and the foundations because it generates revenue, creates impactful relationships and educates its consumers. Companies experience extreme economic growth when engaging in cause marketing. Cause marketing is able to increase sales for the company through its association with the cause. In 2007, a survey for American consumers by Cone, Inc. shows that 87 percent of consumers were likely to switch from one product to another if the second product was associated with a good cause. Furthermore, in 2009 Fast Company reported that brands with corporate social responsibility could provide prices as much as 20 to 200 percent more than their competitors. Also when companies partner with a foundation it helps bring more publicity and interest to the company, consumers and employees. By standing for a social issue they are able to “build brand equity, cultivate trust, enhance reputation, improve society and positively influence stakeholder behaviour by maximizing and integrating community relations.” There are also mutual benefits for the foundations as well. Cause marketing brings awareness to the cause related foundations, generate revenue through sponsorships, as licensing fees to avoid pink-washing can have a minimum fee of $50,000. Foundations are able to gain internal resources they lack, such as staffing. Foundations are also able to generate revenue though sponsorships programs-(Canadian Breast Cancer Foundation CIBC run raised a record $28.5 million-53 percent of their funds in 2008). Lastly foundations are also able to benefit from cause marketing by bring more awareness to the world about their social issue.Both companies and foundations are able to Cause-marketing has long lasting and impressionable effects and for this reason it works.