Cause-Related PromotionsChapter 11.pptVIP

Cause-Related PromotionsChapter 11 Angelica Martinez Danielle Adler Edwina Morales Ernesto Salinas Introduction A cause-related promotion occurs when a portion of what a consumer pays for a product goes to a charitable cause Why do companies use cause-related promotions? Can be an effective and unique way for a brand to engage consumers, boost sales and enhance their image Why do consumers use this program? History: American Express in the early 1980s In 2003, it was estimated that cause-related promotion exceeded $945 million in North America Uses of Cause-Related Promotions Cause-Related A cause-related promotion program involves a partnership between a company and a charitable cause Example: A credit card company giving a portion of all transactions to feed the hungry Used to better the company’s image and brand loyalty by creating a positive feeling for consumers who use their products Offer funds to local causes Consumers feel optimistic about the purchase they have done Example: the campaign that “McDonald’s will donate 5 percent of all sales to the ‘Make a Wish Foundation’, or a minimum of $500,000” may sound more attractive than “Ten Cents off on all burgers!” (Schultz), little league teams, rebuilding neighborhoods Uses of Cause-Related Promotions Appeal to a brand’s target audience Consumer response is usually very large Young consumers respond more favorably Young consumers: 18-25 Examples: Ben Jerry’s- the environment MAC Cosmetics- AIDS awareness Tied to a brand benefit Reinstate the benefits of the brand This use is very common when a company is very conscious about the environment and society as a whole Examples: The Body Shop, Burt’s Bees Uses of Cause-Related Promotions Tied to a coupon usage After the cause-related promotion ends Once a consumer uses a coupon that benefits a specific cause, there is a high chance that this consumer will break into the habit of using other coupons from this particular company/name brand Comp