Cause Related Marketing Case Study

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Executive Summary
The objective of this report is to provide an evaluation of the concept of cause related marketing. This will be done by looking at three main issues. These include:
• The Effects of Cause Related Marketing
• Ethical Issues
• Legal Issues

Within this objective, there is also the intention to provide an in depth look at M.A.C. and their use of the concept.

From this report, the following conclusions were drawn:
• Cause related marketing has a number of effects on both businesses and non-profit organisations, including better reputations and financial benefits.
• If not approached correctly, there can be both ethical and legal issues with the concept.
• Cause related marketing could be the way of the future.

Based on …show more content…

Teaming up with a reputable business can have major benefits for charities such as raising awareness/funds and encouraging people to volunteer with the organisation.

1.2: Ethical Issues
There are those who argue that the concept of CRM is wrong. Milton Friedman, a US economist, is of the opinion that the mission of a business is to maximise profits and its return to owners and shareholders. (Fahy and Jobber, 2012).
The concept of CRM has been a controversial topic. According to Williams (1986), A major reason for CRM's vulnerability to criticism from a philanthropic perspective is its basic philosophy. It is a strategy for selling, not for making charitable contributions.
Like Friedman, there are those that look at CRM with quite a cynical view. However, despite this it could be a fair assumption that not all businesses involved in CRM are involved to be charitable, but to make a profit.
1.3: Legal Issues
As CRM activities increase, there are increased opportunities for state regulators to enforce laws that vary widely from state to state and do not necessarily contemplate the next biggest idea from a business’s marketing department. (Kohout and Werner,

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