Cause related marketing Essay

Nowadays, a lot of companies around the world consider that it is necessary to define their main role in prosperity of society and apply ethical and social responsibility standards to their brand strategy (Wymer and Sargeant",2006). Moreover, consumers are part of a community, and corporate social responsibility (CSR) is not an optional extra anymore; it has to be a strategic importance for companies (Adkins, 1999). Practice of Cause-Related Marketing (CRM) is one of the form of corporate social responsibility tools to answer the society’s question of how organizations making the world a better place. It is not only an essential part of CSR but in general of business ethics (Lichtenstein et, cited in Vanhamme et al., 2011). Cause-related marketing(CRM) represents a brand ethics orientation, and it is a significant tool to activate relationships among non-profit organizations, companies and consumers (Kotler and Lee",2005). Cause-Related Marketing is a marketing strategy that promises to contribute to the society by supporting worthy cause and at the same time achieve marketing objectives by linking purchase of company’s product or service to fund raising for welfare of a cause (Varadarajan and Menon, 1988). There is a tendency that CRM has become a major corporate philanthropic trend: a company donates money to a charity each time a consumer makes a purchase. Cause related marketing campaigns are used by different kind of corporation , for instance : KFC donated 50 cents for each bucket of chicken purchased to support the Susan G. Komen Breast Cancer Research Foundation; Partnership among Pampers and UNICEF – since 2003 300 million tetanus vaccines have been funded through the Pampers and UNICEF partnership. The main massage of that campaign was that 1 pack=1 vaccine .Moreover, professor from the University of Oxford , Linda Scott had written a case study about this case , and she found out that UNICEF’s brand name added substantially to the campaign’s power to build new business for Pampers and it was very beneficial for that company. Moreover, Starbucks was also involved in CRM campaign together with RED. This campaign was focused on fighting against AIDS and Starbucks donates 10 cents to the Global Fund to Fight AIDS for every made-to-order beverage they sell in stores on World AIDS Day. These funds are then sent to coffee growing communities in Africa to help with the treatment and prevention of AIDS. In the eight years of this partnership’s existence, Starbucks has donated more than $14 million. That is why we are interested in how such cause related marketing campaigns work in Georgian market, it has a negative or positive impact on consumers purchase intention and what is the role of the product type in this process. All of the reasons we want to identify:

• the main impact of CRM on consumer’s purchase intention (positive or negative)

• To identify importance of product type on CRM and it’s impact on purchase intention

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