The Effectiveness of Cause-related Marketing in Building Brand

Image and Consumer Loyalty

ABSTRACT
Cause-associated marketing (CRM) is a strategic method followed with the aid of using
companies to set up a together useful partnership among organisation and a social or
environmental cause. This abstract aims to explore the key concepts and interrelationships
between cause-related marketing (CRM), brand image perception, price, sponsorship, sales
promotion, brand awareness, experimentation, customer loyalty, customer retention, and
customer value. Cause-related marketing has gained significant attention in the surroundings
as a strategic approach for businesses to align themselves with social causes while
enhancing their brand image perception. Studies have shown that consumers perceive
brands engaged in CRM initiatives more favourably, leading to increased brand loyalty and
positive brand associations.
Price is a crucial factor influencing consumer behaviour and purchase decisions. While CRM
initiatives may increase consumer willingness to pay a premium price for products
associated with a cause, it is essential to strike a balance between the cause and price to
ensure customer satisfaction. Sponsorship, both through sports events or charitable
organizations, can further enhance a brand's image perception and create positive
associations. Such associations can positively impact brand awareness, leading to increased
customer recognition and consideration.
Sales promotion techniques, such as discounts, coupons, or freebies, can effectively
complement CRM strategies to drive consumer engagement and encourage trial. By
leveraging CRM in sales promotions, companies can enhance brand visibility, generate buzz,
and stimulate purchase behaviour. Experimentation with various CRM tactics allows
companies to identify the most effective approaches in engaging customers, reinforcing
brand loyalty, and maximizing customer value.
Customer loyalty is a vital outcome of successful CRM campaigns, as it signifies customers'
emotional attachment and commitment to a brand. By supporting a cause, companies can
build an emotional connection with consumers, leading to higher levels of loyalty. Moreover,
CRM initiatives can play a pivotal role in customer retention by fostering long-term
relationships and reducing customer churn.
Customer value is a multifaceted concept that encompasses both economic and
psychological benefits customers derive from a product or service. CRM initiatives can
contribute to customer value by addressing customers' social and environmental concerns,
enhancing their overall satisfaction, and providing a sense of purpose in their purchase
decisions. Customers who perceive higher value are more likely to remain loyal, repurchase,
and advocate for the brand.
In conclusion, cause-related marketing offers businesses a powerful tool to enhance brand
image perception, increase brand awareness, and stimulate customer loyalty. By strategically
aligning with social causes, companies can differentiate themselves from competitors,
attract socially conscious consumers, and create positive brand associations. However, it is
crucial to consider pricing strategies, sponsorship opportunities, and sales promotion
techniques in conjunction with CRM initiatives to ensure optimal customer engagement and
value. Through experimentation and continuous assessment, companies can refine their
CRM strategies, strengthen customer relationships, and drive long-term success. Cause-
related marketing can help the Brand and the company to grow their profits at higher level
and also get to know about the loyalty of customers towards the company.