Establishing new frontiers: Cause Related Marketing

Back on the issue of collaborations: NGOs and Corporate Organisations. l have been thinking about different ways value can really be created, especially within the Nigerian local environment. Whilst NGO credibility may be at an all time low, with the discovery of N74 billion fraud  grants processes, involving  some notable Nigerian organisations by the Global Fund on AIDS, Tuberculosis and Malaria, it is still very much possible to work with some credible non profit organisations in a way that is value adding to all and one way to do this is through Cause related Marketing (CRM).

Cause related Marketing is not new, however, just as the entire CSR terrain is still in its infancy in Nigeria, so is this form of marketing. Recently, Dr. Marinho of Educare has taken it upon himself to advocate for private organisations to get on board the Cause Marketing train and utilize their huge marketing budgets to raise awareness and funds for social issues; invariably 'doing well by doing good'. 


It's interesting to see a few organisations who have recently jumped on this band wagon, makers of Nunu milk and lifebuoy (Unilever) are one of such organisations, Interswitch also did something in this regard sometime ago. 


With a population and a country faced with immense social issues which does not seem to abate, Cause related Marketing is a highly strategic way of building Brands that drive sustainable development whislt making money. 


Looking at the postulations of the 'bottom of the pyramid', the benefits associated with CRM in a country such as Nigeria which has most of its consumers at the base can really have a much more long lasting impact on Brand value, loyalty, recognition and acceptance. Brands built in this way, if done very well and in a sustainable manner will remain embedded in our memories for a while, especially if its associations are things that endear it to one's heart.


The trick, however, is not to build superficial marketing strategies along these paths and what l mean by this is that intentions have to be really genuine, the Brands must be utilised to make real changes, have real impact else the PR aspect of whatever CRM is done is quickly detected and people see no sense in it. The loyalty that is meant to emanate from such marketing also will not be activated and the entire essense for the venture will quickly fizzle out. It is instructive to know that whilst the values upon which Brands are built on must be genuine at all times, so must the value upon which CRM is built. 

One question you need to ask yourself whilst designing your marketing strategy is whether raising funds through CRM is the most effective way to go in light of the low disposable income segments (this may be suited to particular market segments where the customer may be able to afford parting with some extra cash) or taking a certain % of the Brand's profit and donating it to a good cause. Care must also be taken not to pass the cost to the consumer but to depend on volume generated profits, this means that the strategy must be right to generate the margins needed, else profit is impacted and it becomes a failure. 


l do believe that the developing nations should be the next home for Cause related Marketing. l, like Dr. Marinho see the value in it, both for the cause, the non profit and the for profit organisation. 


http://en.wikipedia.org/wiki/Cause_marketing


Oluwasoromidayo George