A widely used marketing strategy that many companies turn to nowadays is to link themselves to non-profit organizations or philanthropic causes, publicizing their support for a good cause. A couple examples include M.A.C cosmetics’ AIDS campaign where 100%  of the purchases of their VIVA GLAM lipstick and lipglass will go towards the M.A.C AIDS fund, Dairy Queen’s annual Miracle Treat Day campaign contributing to the Children’s Miracle Network, and KFC’s Bucket for the Cure for breast cancer.

In Jessica’s post on cause related marketing, (https://blogs.ubc.ca/hyj1216/2011/09/26/cause-related-marketing/) she finds cause related marketing to “bring companies (sellers) and charitable organizations a win-win situation”. However, with more and more companies campaigning for all these different causes, trying to differentiate themselves from market competitors and add value attachment to their brand, they could be seeing the complete opposite and less favorable effect of ‘another company partnering up with another charity’.

While it’s great that important issues and causes are being recognized by larger corporations (whether it is being done out of genuine concern is a different story), it’s beginning to get repetitive. As a consumer, I’ll possibly be slightly more inclined to purchase that product that donates some small portion to a some charity, but it’s not likely change my attraction to that brand or product. Because there lacks an attachment or involvement with with these charitable organizations, cause related marketing makes little effective difference.

Cause-related marketing has only begun to trend within the last couple of decades and is now a prevalent strategy in the marketing sector. With such extreme competitive markets out there, companies need to again, be innovative with how they take their marketing strategy one step further in order for effective brand differentiation.

American Express, the company to have coined the term “cause related marketing” in 1983 tries to get ahead of the game by taking this strategy to another level. The company’s contribution to the community is delivered through their online initiative, “Member’s Project” where cardholders are able to get involved and play an active part in philanthropy. Amex not only supports the causes that are important to their cardholders (through project submissions and a voting for the various projects), but they also offer the opportunity for members to volunteer and share stories. Instead of simply having a non-profit/charitable organization to illuminate their reputation, Amex tries to reach out further to its customers through the bridging of collective corporate and consumer efforts together to make a difference.

http://www.facebook.com/membersproject?sk=app_144974848867080

Sources:
http://about.americanexpress.com/news/pr/2010/mp10.aspx