MAL 11/16 | Page 22

CAUSE MARKETING CAUSE RELATED MARKETING: Does It Pay To “Do Good”? By Spencer Okach A few months ago, YouTube was awash with leading personalities across the globe performing the Ice Bucket Challenge in support of the ALS Foundation. Thousands of programs designed to do well by doing good have been launched by both commercial businesses and not for profit organizations over the years. Many have been short-term and pedestrian, while others have been inspiring and impactful. Some notable ones are: Equity Bank’s “Wings to Fly” program, Safaricom did “Bring Zack Home”, Kenya Reinsurance had “Niko Fiti” campaign, Nation Media Group did the “KiliClimb”, Standard Group championed “Transform Kenya Awards”. So much is Cause Marketing a buzz that we have seen corporates forget their differences (as competitors) and rally together with assets like “Kenyans-For-Kenya”, “Save-A-Life” and many more initiatives having been jointly rolled out. Does it really matter? Does it affect the bottom-line? Or is it a route to escape the theory of “the business of business is business”? As years pass on, it is clear that the integration of social issues and business practices is not a passing fad of the yester centuries, but rather the beginning of a fundamental shift in how the world’s leading companies will use cause associations to position their organizations and brands for the future. ‘‘As years pass on, it is clear that the integration of social issues and business practices is not a passing fad of the yester centuries, but rather the beginning of a fundamental shift in how the world’s leading companies.’’ 20 MAL 11/16 ISSUE Just as companies are finding it harder to “out innovate” or “out advertise” their competitors in a marketplace increasingly saturated with new brands, non-profit organizations too are competing with rival organizations for corporate support and public awareness. Strategic cause programs provide companies and nonprofits with valuable leadership and differentiation strategies as well as enhanced brand equity and credibility, greater reach and significant resources and relationships. Now, more than ever, corporations and nonprofits are realizing the power of aligning companies and causes. What is Cause Related Marketing (CRM)? In summary, CRM is a marketing activity, a way for a company to do well by doing good, distinct from sales promotion, corporate philanthropy, corporate sponsorship, corporate good samaritan acts, and public relations, though it is often an amalgam of such activities. In the absence of a formal definition