Cause related marketing is a marketing relationship that usually does not involve contribution. In this article, you will know the types of cause related marketing Programme. Cause related marketing (also known as cause marketing) includes coordinated efforts of a non-profit organization and a “for-profit” enterprise for mutual advantage. This term is also used widely for signifying any marketing effort for charitable and other social causes comprising of internal or international marketing efforts of non-profit organizations. Corporate giving (philanthropy) and cause related marketing are the same. In the former, there is a tax deduction on an individual donation, while on the other hand.
Types of Cause Related Marketing Programme
The types of cause related marketing programs are as follows:
1. Broad-based Programme
Broad-based program is one of the most straightforward programs as it targets both new and current customers, and companies donate a particular portion of the revenue earned from every sold product. The only activity in this program is the buyer purchasing process, and there are no boundations on the donation amount. Leveraging activities (such as advertising, packaging information. sales information) become useful when broad-based cause related marketing programs are used.
2. Limited Cause Related Marketing Programme
This program can be seen as a limited version of a broad-based program. Similar to a broad-based program, this program also targets all types of customers. However, in this program, companies donate a portion of the revenue earned from every sold product, which is limited to a maximum amount. In many circumstances, they often donate a minimum amount to increase reliability.
3. Market-Focused Programme
Unlike broad-based and limited programs, this program targets new customers only. Along with buying the product, a customer must submit coupons. A particular amount is donated to every product sale, and the monetary commitment can either be limited or unlimited
4. Replacement Programme
Ordinary sponsoring is replaced with sales-oriented giving under this program. This program targets all kinds of customers. Like a limited cause related marketing program, the monetary commitment is fixed, which means there is a foundation for the amount of money to be donated. Leverage activities are required by advertising and information on the package, i.e., a particular amount will be presented when buying a product. This program also makes use of additional sales promotions.
5. Multi-Phase Programme
This program also targets all types of customers. The customers under this program buy a product and must either submit a coupon or mail in a barcode. Only some customers will give this additional effort, yet the organization’s gain in customers’ trust will remain the same as if no other requirement was present. This serves as the most significant advantage of this program.