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Cause-Related Marketing

Relevance and Application in British Cancer Charities - A Case Study Approach

©2002 Diplomarbeit 62 Seiten

Zusammenfassung

Inhaltsangabe:Abstract:
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.

Inhaltsverzeichnis:Table of Contents:
1.Introduction5
1.1Scope and Objectives of the Paper5
1.2Structure of the Study6
2.Methodology7
2.1Secondary Research7
2.2Primary Research8
2.3Case Study Approach8
PART I - CAUSE-RELATED MARKETING AS A MARKETING TOOL9
3.Background and Implications of Cause-related Marketing10
3.1The Rise of Corporate Social Responsibility10
3.2The History and Development of Cause-related Marketing12
3.3The Definition of Cause-related Marketing13
3.4Different Types of CRM Activities14
3.4.1Product Endorsement14
3.4.2Non-sales Orientated CRM14
3.4.3CRM Advertising and Sponsorship14
3.4.4CRM Community Partnerships14
4.Cause-related Marketing and Consumer Behaviour15
4.1Maslow’s Hierarchy of Needs and the […]

Leseprobe

Inhaltsverzeichnis


ID 6511
Graff, Jenny: Cause-Related Marketing - Relevance and Application in British Cancer
Charities - A Case Study Approach
Hamburg: Diplomica GmbH, 2003
Zugl.: Cambridge, Hochschule, Diplomarbeit, 2002
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Abstract
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.

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Table of Content
1. Introduction... 5
1.1 Scope and Objectives of the Paper ... 5
1.2 Structure of the Study... 6
2. Methodology... 7
2.1 Secondary Research ... 7
2.2 Primary Research... 8
2.3 Case Study Approach... 8
PART I - CAUSE-RELATED MARKETING AS A MARKETING TOOL ... 9
3. Background and Implications of Cause-related Marketing ... 10
3.1 The Rise of Corporate Social Responsibility ... 10
3.2 The History and Development of Cause-related Marketing ... 12
3.3 The Definition of Cause-related Marketing ... 13
3.4 Different Types of CRM Activities... 14
3.4.1 Product Endorsement... 14
3.4.2 Non-sales Orientated CRM ... 14
3.4.3 CRM Advertising and Sponsorship... 14
3.4.4 CRM Community Partnerships ... 14
4. Cause-related Marketing and Consumer Behaviour... 15
4.1 Maslow's Hierarchy of Needs and the Evolution of Branding ... 15
4.2 Motivations and Barriers to Charitable Giving ... 16
4.3 Charitable Giving and Cognitive Dissonance ... 17
4.4 The Relevance of Cause-related Marketing ... 18
5. Conclusion Part I ... 20
PART II - UK CANCER CHARITIES AND CHARITY MARKETING ... 21
6. Cancer Charities in Britain ­ A General Overview... 22
6.1 The Concept of Charity... 22
6.2 Cancer Charities in Context... 23
6.3 Cancer Research UK... 24
7. Charity Marketing ... 25
7.1 Objectives and Issues in Charity Marketing... 25
7.2 The Charity Marketing Mix... 26
7.2.1 An Overview ... 26
7.2.2 Promotional Tools... 27
7.3 The Increasing Competition in Charity Marketing... 28
7.3.1 Reasons for Increasing Competition in Charity Marketing... 28
7.3.2 Areas of Competition ... 28
7.4 Developments in Charity Marketing... 30
7.4.1 More Sophisticated Marketing ... 30
7.4.2 Changes in Marketing and Fundraising Techniques... 31
8. Conclusion Part II ... 33

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PART III - THE APPLICATION OF CAUSE-RELATED MARKETING... 34
9. Benefits and Problems for Charities ... 35
9.1 Benefits ... 35
9.1.1 Increase in Charity Funds... 35
9.1.2 Publicity and Awareness ... 35
9.1.3 The Wide Scope of Cause-related Marketing... 36
9.2. Potential Problems ... 36
9.2.1 Loss of Independence and Reputation ... 36
9.2.2 Exploiting Beneficiary's Dignity... 37
9.2.3 Problems in the Partnership with Companies... 37
9.3 Overcoming Problems ... 38
9.3.1 Improving the Partnership with Companies ... 38
9.3.2 Addressing Other Problems ... 39
10. Case Studies ... 40
10.1 Cancer Research UK... 40
10.2 Examples of Other Cancer Charities ... 41
11. Summary and Recommendations ... 43
11.1 Conclusion... 43
11.2 Recommendations... 43
12. Future Outlook... 45
12.1 Further Research... 45
12.2 The Future of Cause-related Marketing... 45
13. Bibliography... 47
13.1 Books ... 47
13.2 Newspapers and Journals ... 48
13.3 Reports and Corporate Material ... 49
13.4 Interviewee ... 49
13.5 Internet Resources ... 49
14. Appendices... 50
Appendix I ­ Business in the Community Involvement... 51
Appendix II ­ Maslow's Hierarchy of Needs ... 52
Appendix III ­ Raw Data for Diagrams ... 53
Appendix IV ­ Interview Transcript... 54

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Table of Figures and Diagrams
Figures*
Figure 1. Maslow's Hierarchy of Needs and the Evolution of Marketing... 16
Figure 2. Cognitive Dissonance in Motivation for Charitable Giving ... 18
Figure 3. CRM ­ A Win-Win-Win Situation ... 19
Figure 4. Cancer Research UK Logo ... 24
Figure 5. The Charity Marketing Mix ... 26
Figure 6. Increasing Competition in Charity Marketing... 29
Figure 7. Five Ps Model of Business in the Community ... 51
Figure 8. Maslow's Hierarchy of Needs... 52
Diagrams
Diagram 1. UK Charities by Type ... 23
Diagram 2. Attitudes towards Charities and Donations ... 31
*NB. All figures except Figure 8 designed by the author.

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1. Introduction
On April 19
th
2002, Lloyd Scott completed the London Marathon after five days and eight
hours. He was walking the 26.2 miles in a 120lb sea-diving suit to raise £100,000 for the
charity Cancer and Leukaemia in Childhood. (see BBC News, 19/04/02)
1.1 Scope and Objectives of the Paper
Cause-related marketing (CRM) has become an increasingly popular technique, mirrored
in extensive discussions in specialised literature as well as in the growing number of CRM
campaigns. Usually, this topic is examined from the company's point of view.
In this paper, on the contrary, the subject of cause-related marketing shall be analysed
from the perspective of charities. To focus the research subject more precisely, the author
will concentrate on examining the case of British cancer charities, reflecting her personal
interest in cancer research.
As the main objective, this study seeks to answer the following questions:
1. In which context has cause-related marketing developed and can it be regarded as a
relevant marketing tool?
2. How are CRM techniques employed by British cancer charities in the light of current
marketing issue?
3. Which suggestions and future prospects can be given for CRM application in British
cancer charities?
In the course of investigation, past developments and current discussions will be
explained. Where necessary, theoretical models will be employed as means of illustration,
validated by empirical data and relevant case examples.
This paper is of interest for a variety of readers and will be beneficial for individuals and
organisations alike. First and foremost, cancer charities can intensify and correlate their
knowledge about different aspects of cause-related marketing and its application. In
addition to using this study for reference when initiating CRM campaigns, they can apply it
as a basis for future research. Other charities will certainly notice interesting parallels to
their own organisation. Companies should find it favourable to scrutinise the subject from
the charities' viewpoint, which will lead to better mutual understanding and, consequently,
more successful partnerships between charities and businesses.

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Furthermore, this study can provide stimulating perspectives to marketing students and
lecturers by revealing ideas still rarely discussed in universities. Finally, the paper aims to
educate the public about the topic and, thereby, support the admirable work of charitable
organisations.
1.2 Structure of the Study
To answer the questions outlined above, the paper is divided into three main parts.
In the first part, the origin and development of cause-related marketing will be described,
leading to a definition of the term as such. In the following, the concept will be analysed in
the context of consumer behaviour to provide a stable basis for subsequent practical
application.
The second section will examine issues and trends in charity marketing, concentrating on
examples in cancer charities. In particular, the increasing competition in this sector and
resulting effects are considered in some detail.
In the final part, the focus is laid on cause-related marketing techniques and their
application by charities. Advantages and drawbacks are clarified, and various case
examples presented. In conclusion, the findings will critically be assessed and
recommendations shall be given in the last section of this study.

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2. Methodology
To accomplish the objectives of this paper, comprehensive secondary research was
conducted and complemented with primary data. Reflecting the controversial and
subjective nature of the topic, the main research of this study is qualitative, emphasised
by some quantitative data.
The following paragraphs give a brief overview about the methodological approach
employed in this study.
2.1 Secondary Research
The study of secondary sources included published material, such as books, articles and
reports, as well as extensive Internet research. Most of the literature used was published
from end-1990s onwards to reflect the topical significance of cause-related marketing.
The literature review comprised the APU University Library, the British Library and other
sources. The range of books covered not only cause-related marketing itself, but also
relevant subjects like charities and charity marketing, relationship marketing and branding.
For the theoretical background, literature on consumer behaviour was examined and
applied to the argument.
Articles from journals, magazines and newspapers served as another fundamental source
of information. These involved both American and British publications in marketing,
business press and other relevant areas. Additionally, the investigation included business
reports and corporate material to gain an overview about cancer charities in the UK.
Two Mintel reports, highly relevant to the topic, were analysed and incorporated with other
research findings. Statistical data of the Mintel surveys supplied the basis of the diagrams
illustrating important points within the discussion.
The Internet was utilised as an important point of reference in order to observe the latest
developments within the subject area. Besides company and other organisational
websites, the search contained the latest articles and reports .
In order to portray and summarise important points of discussion, the author developed a
number of original illustrations not used by other writers before.

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2.2 Primary Research
In compliance with the objectives, an interview was conducted to complement the findings
of secondary sources and to introduce a more realistic perspective on the discussion.
Details of the interview are given in Appendix IV.
The author carried out a semi-structured interview with open-end questions, as the main
purpose of this conversation was to understand the interviewee's experience and opinion
about the subject matter. Although semi-structured interviews are associated with
potential problems of analysing relevant data, this approach was preferred because
interesting issues could be explored in more depth (see Hussey and Hussey, 1997:156f).
2.3 Case Study Approach
To illustrate fundamental points made about cause-related marketing, the example of
British cancer charities was employed. Cancer Research UK was used as the primary
case, since it is the largest cancer research organisation world-wide.
Rather than attempting statistical generalisations, the cases aim to present descriptive
and explanatory examples by indicating how the findings apply to real-life situations.
Information for the case studies was gathered from both primary and secondary sources.
(For details about case study approaches, see Yin, 1994:3ff and Hussey and Hussey,
1997:65ff)
Through the wide extent of research conducted in the light of the underlying objectives,
the author compiled a variety of opinions, information and evidence. Thus, a sound basis
for this study is supplied, serving as an original foundation for conclusions and future
suggestions.

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"In cause-related marketing,
capitalism has actually become a philanthropic tool"
(Steckel, R. and Simons, R., cited in Clutterbuck and Dearlove, 1996:120)

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3. Background and Implications of Cause-related Marketing
3.1 The Rise of Corporate Social Responsibility
Corporate social responsibility (CSR), or corporate citizenship, refers to the obligation
companies have to a wide range of stakeholders, including customers, employees, the
broader community as well as the environment (see Adkins, 2000:17).
In the last decade, companies began to realise their impact not only on their direct
stakeholders, but on society as such. This influence springs from the ever-growing
economic power of global firms, some of which make revenues far exceeding the Gross
Domestic Product of many countries. For instance, in 1997 the sales revenue of General
Motors was approximately equal to the combined GDP of Tanzania, Ethiopia, Nepal,
Nigeria, Kenya and Pakistan (see Adkins, 2000:17f). The power of companies and their
brands is impressively illustrated in the results of a survey, where "more people trusted
Kellogg's to be honest and fair than trusted the Church" (The Henley Centre, cited in Lury,
1998:20).
However, this business influence is coupled with rising concern about social and ethical
issues. Consumers have become greatly aware of business practices and, nowadays, are
much more willing to take action against companies than ten years ago, which is also
reason for the rise of organisations like The Consumers' Association. (see Mintel, 2000)
As a consequence, consumers today expect more than value-for-money; they scrutinise
firms on the way they do business and demand socially responsible behaviour. Empirical
surveys verify that many consumers take ethical issues into consideration when making a
purchase decision (see Business and Society, 2001:4).
Besides the above-mentioned growing expectations of customers and other stakeholders,
key drivers towards increasing corporate social responsibility include
Revolution of communications, especially the Internet, turning reputation and public
standing into crucial factors of a company's success;
Greater labour mobility, demanding social commitment to employees in order to retain
qualified workforce;
Dynamic markets and fierce competition, resulting in businesses' increasing
dependency on their environment.
(see Mintel, 2000; Business and Society, 2001:5)

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In March 2000, a Minister for Corporate Social Responsibility was appointed, a fact that
reveals the importance government assigns to the issue. The government's role includes
raising awareness of CSR, promotion of ethical frameworks as well as provision of advice
along with fiscal incentives and co-funding. (see Business and Society, 2001:6) It also
encourages and supports promotion of causes, such as drink-driving campaigns (see
Richards, 1998).
Besides these issues, companies are faced with a growing pressure to distinguish
themselves from competitors offering similar goods or services. As brands are getting more
and more alike even in quality and price, and traditional marketing tools are becoming more
costly and ineffective, firms are searching for alternative strategies. (see Mintel, 2000) In
this context, a social image can support the unique identity of a company and its products.
Hence, today CSR is "a major component of company's intangible assets" (Business and
Society, 2001:1). There are a great number of examples proving that companies can truly
benefit from corporate social responsibility:
Asda supermarkets have built excellent reputation among customers, suppliers and staff by
establishing and maintaining social relationships with local communities.
The printing company Bovince Ltd differentiates itself by voluntarily reporting on environ-
mental performance, thus gaining competitive advantage and new business partners.
BT continues to benefit from positive PR and word-of-mouth through various community
activities, thereby achieving customer and staff loyalty built on trust.
(see Business and Society, 2001:14ff)
Appendix I summarises business involvement in the community.
An interesting proof of the rising importance of corporate social responsibility is the
existence of Business in the Community, an organisation of more than 700 UK companies
"committed to continually improving their positive impact on society" (Business in the
Community website, 2002).
Thus, emotional and social commitment have become a powerful means for companies to
differentiate themselves, gain customer and employee loyalty as well as maintain a good
reputation in the public (see Mitchell, 2001:276).
It is in this light of corporate social responsibility that cause-related marketing developed.

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3.2 The History and Development of Cause-related Marketing
Before defining cause-related marketing as a term, some insight into the history of the
concept shall give an overview of how it developed.
The phrase itself was coined by American Express in 1983, although the idea had been in
existence for much longer. In fact, features of cause-related marketing can be found in an
American gift scheme of the 1890s, where consumers could help charities win money by
sending tokens from Sunlight cartons. (see Adkins, 2000:11ff)
However, CRM itself became popular after a campaign linking American Express with a
project for restoration of the Statue of Liberty in 1983. During the three months of the
campaign, card use increased by 28% and $1.7 million were raised for the cause. In
addition, it attracted the interest of media, customers and businesses. (see Clutterbuck and
Dearlove, 1996:123)
In the United Kingdom, the concept took off much slower and only gained interest after
the mid-1990s. Nevertheless, innovative campaigns were launched much earlier. Pizza
Express is referred to as the "godfather of CRM in the UK" (Pringle and Thompson,
2001:4). Its appeal has been present for over 25 years and supports the Venice in Peril
Fund by donating 25p for each Venezian pizza sold. (see Pringle and Thompson, 2001:99)
The best-known cause-related marketing scheme in the UK is Tesco's `Computer for
Schools' campaign, launched in 1992, which gained awareness more than 50% among
adults. For a certain amount of money spent, shoppers receive vouchers which they donate
to a school of their choice. Schools can then exchange the vouchers for computers and
related equipment. (see Mintel, 2000; Pringle and Thompson, 2001:16ff)
Other successful CRM campaigns in the UK include, among many others, Cadbury's
partnership with Save the Children (see Adkins, 2000:144ff); Andrex's `Guide Dogs for The
Blind' (see Pringle and Thompson, 2001:53ff); and a number of companies working
together with NSPCC (National Society for the Prevention of Cruelty to Children), such as
Microsoft, Mars and The Early Learning Centre (see Gray, 2001).
Attention paid to cause-related marketing campaigns increased rapidly. In May 2001, the
Marketing magazine devoted a special report to this topic, responding to the great interest
and growing number of CRM programmes.

Details

Seiten
Erscheinungsform
Originalausgabe
Jahr
2002
ISBN (eBook)
9783832465117
ISBN (Paperback)
9783838665115
DOI
10.3239/9783832465117
Dateigröße
725 KB
Sprache
Englisch
Institution / Hochschule
Anglia Ruskin University – unbekannt
Erscheinungsdatum
2003 (März)
Note
1,0
Schlagworte
wohlfahrtsorganisationen organisationen sozialmarketing marketing engagement spenden spender spendenverhalten sponsoring soziale verantwortung unternehmens
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