To keep up with the escalating competition and the demand for product and brand distinctiveness, business organisations are developing cutting-edge marketing strategies. Cause-related marketing is one such strategy that first appeared in the 1980s. This marketing strategy's success inspired numerous new business ventures, and its adoption rate rose significantly over time, notably in more recent years. Corporate Social Responsibility (CSR) is the root of cause-related marketing (CRM). The idea of corporate social responsibility (CSR) has been extensively established and discussed. While CSR stresses on altruistic function of a corporate enterprise, CRM demonstrates a means to turn that compassion into a successful investment. The goal of the current study was to provide a conceptual basis of the concept of CRM, as well as information on its evolution, growth, advantages, and significant implementation-related issues. To make this concept clearer, data was gathered from several secondary sources. In an effort to make it more successful and productive, the researcher has offered advice and suggested actions.

1. https://iaeme.com/Home/journal/IJM 265 editor@iaeme.com
International Journal of Management (IJM)
Volume 10, Issue 4, July-August 2019, pp.265-270, Article ID: IJM_10_04_025
Available online at https://iaeme.com/Home/issue/IJM?Volume=10&Issue=4
ISSN Print: 0976-6502 and ISSN Online: 0976-6510
© IAEME Publication Scopus Indexed
A STUDY ON THE GROWTH, EVOLUTION,
BENEFITS AND KEY CHALLENGES OF CAUSE
RELATED MARKETING
Dr. K. Kalaichelvi
Assistant Professor and Head, P.G. & Research Department of Commerce,
Government Arts and Science College for Women, Orathanadu, Tamilnadu, India
ABSTRACT
To keep up with the escalating competition and the demand for product and brand
distinctiveness, business organisations are developing cutting-edge marketing
strategies. Cause-related marketing is one such strategy that first appeared in the
1980s. This marketing strategy's success inspired numerous new business ventures, and
its adoption rate rose significantly over time, notably in more recent years. Corporate
Social Responsibility (CSR) is the root of cause-related marketing (CRM). The idea of
corporate social responsibility (CSR) has been extensively established and discussed.
While CSR stresses on altruistic function of a corporate enterprise, CRM demonstrates
a means to turn that compassion into a successful investment. The goal of the current
study was to provide a conceptual basis of the concept of CRM, as well as information
on its evolution, growth, advantages, and significant implementation-related issues. To
make this concept clearer, data was gathered from several secondary sources. In an
effort to make it more successful and productive, the researcher has offered advice and
suggested actions.
Key words: Cause-related Marketing, Benefits, Issues, CSR, CRM, Corporate Social
Responsibility.
Cite this Article: K. Kalaichelvi, A Study on the Growth, Evolution, Benefits and Key
Challenges of Cause Related Marketing, International Journal of Management (IJM),
10(4), 2019, pp. 265-270
https://iaeme.com/Home/issue/IJM?Volume=10&Issue=4
1. INTRODUCTION
In recent years, cause-related marketing has gained popularity as a marketing tactic. Cause-
related marketing is a concept that grew out of corporate social responsibility. Corporate social
responsibility places a focus on a company's duties to the community. A businessman's many
responsibilities to society were outlined in Howard R. Bowen's foundational book, "Social
Responsibilities of the Businessman," published in 1953. Carroll B. Archie later developed the
idea in 1979, presenting a CSR pyramid made up of economic, legal, ethical, and philanthropic
duties. It made it simple for corporate firms to comprehend and use CSR. Businesses found it
difficult to adopt CSR due to the rising demands of society, and there was a misconception that

2. A Study on the Growth, Evolution, Benefits and Key Challenges of Cause Related Marketing
https://iaeme.com/Home/journal/IJM 266 editor@iaeme.com
doing good for the community meant sacrificing profits. When Peter F. Drucker wrote an article
in 1984 titled "Converting Social Problems into Business Opportunities: The New Meaning of
Corporate Social Responsibility," this viewpoint was altered. In his article, he made it
abundantly evident that organisations can make more money if they can use societal issues as
possibilities for growth. Businesses can build a positive reputation and win the public's favour
by supporting social causes. To reap the benefits of CSR, however, their good activities must
first be shared with the community. Therefore, a technology that can fill the gap between an
organization's investment and advertising was needed. At this point, a brand-new marketing
strategy known as cause-related marketing emerged.
2. OBJECTIVES OF THE STUDY
1. To investigate the development and expansion of cause-related marketing
2. To emphasise the advantages of using cause-related marketing and to point out the main
problems.
3. To offer solutions to the problems found.
3. RESEARCH METHODOLOGY
In nature, the current investigation is an observatory. Data were gathered by the researcher from
a variety of secondary sources, including books, research articles, newspapers, the internet, and
other published works.
3.1. Cause-related Marketing: The Evolution and Growth
The AMERICAN EXPRESS COMPANY was the first company to formally employ cause-
related marketing in 1983. The business declared that it would give the Ellis Island Foundation
$1 for each new card purchased and a penny for each card used to the restoration of the Statue
of Liberty. A spectacular 28 percent increase in charge card usage and a respectable increase in
new card purchases followed the announcement. This incident inspired several businesses to
use this tactic because it increased their sales while also enhancing their brand. The ground-
breaking study "Cause-related marketing: A coalignment of marketing strategy and corporate
philanthropy" by Varadarajan & Menon was released in 1988. According to the researchers'
definition in their publication, "Cause-related Marketing is the process of formulating and
implementing marketing activities that are distinguished by an offer from the firm to contribute
a specified amount to a designated cause when Consumers engage in revenue-providing
exchanges that satisfy organisation and individual objectives." To put it another way, cause-
related marketing refers to a collaboration between a business organisation and a Non-profit
organisation (NPO) in which the business organisation pledges to donate a certain sum to the
NPO or a cause from the sales of the company's goods or services. Cause-related marketing
was simply defined by Marconi (2002). According to him, "Cause marketing is the action
through which a business, a non-profit organisation, or a comparable entity markets an image,
a product, a service, or a message for mutual benefit." The researcher clarifies why the Cause-
related Marketing approach was used to promote a good or service or a point of view for the
benefit of all stakeholders. Cause-related marketing has gone under many labels since it was
first popularised. The notable ones are corporate philanthropy, social marketing, and cause
marketing. The term "Cause" in this context refers to all just causes, from human-centered to
environmental, animal welfare, and the advancement of the arts and education.
3.2. Forms of Cause-related Marketing
There are several ways to practise cause-related marketing. The approach is chosen based on
the specifics of the agreement between the business organisation and the non-profit

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organisation. The following are the most well-known strategies to put the Cause-related
Marketing strategy into practise.
Transaction-based promotions - With this strategy, the corporate organization's contribution
is based on customer purchases of goods or services that are connected to a cause.
Joint-issue promotions– In this approach, the commercial organisation and the non-point
organisation work together to create campaigns to spread awareness of a social issue or cause.
Licensing – Using the non-profit organization's name, logo, emblem, and other elements,
corporate organisations market and sell their goods or services under its auspices.
3.3. The Benefits of Cause-related Marketing
Although there are numerous well-established marketing tactics, cause-related marketing has
become more popular due to its benefits. The three main participants in cause-related marketing
are business organisations, non-profit organisations, and consumers. According to claims made,
each of these parties profits significantly from cause-related marketing. Below, there is a
detailed discussion of the advantages of each of these three parties.
To the Business Organisation (for Profit organisation)
• Increases Employee Morale and Loyalty - When employees are aware of an
organization's commitment to a cause, they grow to respect and value it, and this will
show in their job output.
• Adoption of cause-related marketing tools to highlight the company's contributions to
society improves corporate image. which in turn contributes to defining or enhancing
the company's current corporate image.
• The company's brand value is increased as a result of the social commitment being
shown, which satisfies customer expectations of business enterprises.
• Enhances Corporate Credibility and Reputation - Because one's actions disclose their
actual values and views, consumers trust and grow loyal to businesses that behave with
social responsiveness.
• Increases Sales and Revenue - A better working relationship with both employees and
customers boosts sales and revenue for the company. Additionally, it helps the business
establish a crucial connection with each of its stakeholders.
To the Non-Profit Organisation (NPO)
• Financial Resources - The main benefit of forming a relationship with a commercial
organisation is that it gives a NPO financial support. Joining forces with a company that
supports the interests of the organisation can help an organisation working for a good
cause meet its financial needs for a variety of purposes.
• Exposure and awareness — Cause-related marketing initiatives serve as a cost-free
publicity tool for both the nonprofit organisation and the cause. As a result, it assists in
raising public awareness of the subject with little effort.
• More volunteers: As people become more conscious of the society's growing demands
and worries, many may express a desire to contribute to the solution. As a result, the
NPO receives more volunteer assistance.
A business enterprise offers its aid in the management, technical, professional, and physical
aspects of the NPO for the development of the NPO as a whole. Financial assistance may help
the NPO to satisfy its financial demands.

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To the Consumer
The consumer is a key player in cause-related marketing because the campaign's success rests
entirely on how consumers react to it. Numerous studies have shown that customers are
supportive of and willing to go the extra mile for cause-related marketing efforts. He has the
chance to work for a good cause when he participates in cause-related marketing efforts, and
occasionally these campaigns may directly or indirectly benefit him.
3.4. The Potential Key Issues of Cause-related Marketing
Although cause-related marketing has a history of success, there are still some difficulties with
it. Cause-related marketing can backfire and negatively affect both the corporate organisation
and the non-profit organisation it is working with if it is not executed carefully. Some of the
potential major problems with cause-related marketing are the ones listed below.
On the part of the Business Organisation
• Corporates may choose causes based on their potential for marketing rather than their
benefit to society. This is known as marketable philanthropy.
• Biased concern for causes - Corporations may choose causes that are well-liked and
uncontroversial while ignoring the real, covert, and less well-liked causes.
• The philanthropy budget may be steadily reduced by businesses when cause-related
marketing takes the place of traditional charitable donations.
On the part of the Non-profit Organisation
Change of Mission – In order to satisfy the expectations and demands of the business
enterprise, non-profit organisations may alter and change its mission and objectives.
Compromise Integrity – Non-profit organisations may compromise their integrity and attempt
to persuade its beneficiaries to buy from them in order to continue receiving support from the
business.
On the part of the Consumer
Unclear Understanding – Many customers are not familiar with the idea of cause-related
marketing. We distance ourselves when a proper comprehension is lacking.
Public Disapprove – If the cause is overly commercialised, it might not draw in the usual
supporters and result in the campaigns' failure.
Mis-perception – Consumers can believe that a nonprofit organisation (NPO) is owned by a
corporation and not even be aware that it is an independent organisation that relies on their
assistance.
“Let Business Do It” Attitude – When consumers adopt the mentality of "let the business it"
and disengage from charitable endeavours, they may be prone to abdicating their responsibility
to society.
3.5. Suggestions for implementing successful Cause-related Marketing
Campaigns
The following recommendations are put out in order to successfully adopt cause-related
marketing, based on prior studies and the major difficulties involved.
To the Business Organisation
• Organizations should prioritise the nature of the cause and its need in society when
choosing causes, as opposed to just its marketability.

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• Although the popularity of the cause may seem alluring, a business enterprise must
select a cause that complements its main missions and brand.
• The organisation needs to keep its marketing and philanthropy expenditures separate.
Cause-related While charitable activities should come from philanthropic funding,
marketing dollars should be distributed from the marketing budget.
• Organizations must work to offer the non-profit organisation all available forms of
support, including managerial, technical, and human aid, in addition to financial
support.
• A cause should be properly promoted; excessive publicity could convey the appearance
that a cause is being exploited rather than being uplifted.
• To prevent scepticism on the part of the consumer, steps should be taken to ensure that
they comprehend the concept of cause-related marketing.
To the Non-profit Organisation
• A non-profit organisation should clearly express its vision and mission before partnering
with a commercial concern and would not stray from these tenets in order to receive the
assistance of the corporate enterprise.
• Must collaborate with a commercial organisation that shares the NPO's mission and
guiding principles.
• Should make use of the chance to help the community and the cause.
• The distribution of monies should be documented separately and kept on file for future
use.
4. CONCLUSION
Despite being promoted as having a host of advantages, the effectiveness of cause-related
marketing ultimately rests on how consumers react to it. Furthermore, the business enterprise
and the non-profit organisation may not receive the expected return from the simple delivery of
funds. As a result, both parties should pay attention to how it is carried out. More focus should
be placed on the cause they select, and the public should be adequately aware of the agreement
between the business enterprise and the non-profit organisation. Because of this, they can help
the cause-related marketing efforts succeed.
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