The Use of Cause Related Marketing

ABSTRACT

Today it is popular and even trendy for companies to get involved in and support charity efforts or charitable organizations. Companies today use cause related marketing not only to increase their sales but also to improve their image and reputation on the market and to win the consumers hearts in their decision of which company to support. The relationship between the company and the charity organization can be described as a ‘‘marriage'' and these two have to work effectively with each other in order to create a successful cause related marketing campaign. The purpose of this study is to provide a deeper understanding about the use of cause related marketing. In order to reach this objective, research questions focussing on the objectives strived for in cause related marketing and the strategies used by companies in this area to reach those objectives were developed. Following these research questions, a review of the relevant literature was conducted, resulting in a conceptual framework used to guide this study's data collection. A qualitative, single case study methodology will be used using personal interviews with two respondents at Zambia's leading food retail chains.

1.0 INTRODUCTION

This chapter will present a background of the intended research area. Starting with a broad overview of the topic and important aspects connected to it. Definitions to of key concepts will be described. The last part of the chapter will introduce the problem discussion which the purpose and research questions will be based on.

1.1 Background

According to Fellman (1999) today's product and service quality is not the only factor that plays a significant role when customers are choosing between two products. Customers are interested about finding out what the brand stands for and companies that take in consideration factors such as environmental and social have an impact in customers' decision. If price and quality are equal 75 percent of consumers are willing to abandon the brands they are currently using and choose to rather purchase products from brands that supports a charitable cause(Lorge,1998).In a consumer survey that was conducted by Cone Inc.(2004)80 percent of the consumers preferred businesses that support a charitable cause and that it creates a better trust.86 percent said that if price and quality were equal in a product they would rather switch and buy a cause - supporting product. Another 85 percent thought that social cause also matters when it comes to deciding who to do businesses with in the local community. Mason (1993) claims that businesses that support charity and care about social factors get a better image on the market which leads to a better reputation and higher sales.

The research concerning consumers and their attitudes towards companies who are acting socially responsible all seem to be positive, but why do people care so much about these ethical matters nowadays? Pringle and Thompson (1999) claim that in order to understand the consumer behaviour one must look closer on Maslow's hierarchy of needs theory (see figure 1:1).

Figure 1:1. Maslow's Hierarchy of Needs

Source: Pringle & Thompson (1999), p.27

Maslow's theory provides a good base for understanding the human behaviour. Bernstein, Penner and Clarke-Stewart(2003,p 409-410) explain theory as follows; human needs at the lowest level of the pyramid have to be satisfied at least partially in order to yearn for the satisfaction of needs ranked higher. Robbins (2003, p156) states that ‘‘there is a hierarchy of five needs-physiological, safety, social, esteem and self-actualisation: as each need is substantially satisfied, the next need becomes dominant. ''

Pringle and Thompson (1999,p26-28) claim that the decreased material gap between white and blue collar workers in Europe and the USA combined with an increased comparative material wealth among low income homes provide good evidence for that the people are climbing up Maslow's hierarchy of needs pyramid towards the actualisation step. According to Berstein et al.(2003, p410) the peak of the hierarchy of needs, which is self-actualisation have the characteristics of a person trying to reach one's fullest potential. Relationship building, interests connected to intrinsic pleasure rather than money and status and an interest concerning other people than just themselves are important features of people situated at the top of the hierarchy.

One approach when being