MKTG 360 1nd Edition Lecture 17 Outline of Last Lecture 1. Four elements of the promotion mix2. Integrated marketing communication3. Buzz marketingOutline of Current Lecture 1. Cause related marketing2. History of cause related marketing3. Corporate and marketing objectives4. Cause related marketing is unique5. Is cause related marketing all good?6. When is cause related marketing successful?Current Lecture1. Cause related marketinga. Cause-related marketing is the process of formulating and implementing marketing activities that are characterized by an offer from the firm to contributea specified amount to a designated cause when customer engage in revenue-providing exchanges that satisfy organizational and individual objectives2. History of Cause related marketinga. American Express 1983 joined the Statue of Liberty Restoration Fundb. 1¢ for each use of its charge cardc. $1 for each new card issuedd. 28% increase in card usage over the same time period in 1982e. $1.7 million contributed by American Express to the Statue of Liberty RestorationFund3. Corporate and marketing objectivesThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.a. Gaining National Visibilityb. Enhancing Corporate Imagec. Thwarting Negative Publicityd. Pacifying Customer Groupse. Generating Incremental Salesf. Promoting Repeat Purchasesg. Promoting Multiple Unit Purchasesh. Promoting More Varied Usagei. Increasing Brand Awarenessj. Increasing Brand Recognitionk. Enhancing Brand Imagel. Reinforcing Brand Imagem. Broadening Customer Basen. Reaching New Market Segmentso. Increasing Level of Merchandising Activity4. Cause related marketing is uniquea. CRMi. Contributions to charity from sales.ii. Offering economic incentives are NOT key characteristics of CRM (e.g., coupons, refund offers) but can be included.b. Corporate philanthropyi. Donations made on behalf of the company not necessarily based on sales. ii. Can include sponsorships.5. Is cause related marketing all good?a. Prosi. Increase salesii. Boost public imageiii. Pacify customersiv. Help good causesb. Consi. Possible exploitationii. Possible trust issuesiii. Customers may not agree with the cause being helpediv. Possible employee rifts6. When is Cause related marketing successful?a. When the consumers, employees, stakeholders are on board with helping the causeb. When the consumers perceive the company to have altruistic motivesc. When there is a high fit with the caused. When the company is involved in the cause for a longer period of timee. When the company is involved with the cause besides just donating