Cause related marketing. How for-profit and not-for-profit brand managers can work together for the benefit of stakeholders.

Abstract

This research investigates the attitudes and beliefs of marketing managers in For Profit Organisations (FPOs) and Not For Profit Organisations (NFPOs) towards and about each other in order to find what factors influence how productive any joint marketing relationship between them might be. The potential value of this research increased in the first decade of the 21st century as public trust of business declined and FPOs sought to improve their image by being seen as good citizens. Associating their brands with respected NFPO brands through activity such as Cause Related Marketing (CRM), or simply assisting NFPOs as a means of demonstrating Corporate Social Responsibility (CSR), is a growing feature of marketing activity by FPOs.

A literature review summarises the key differences between FPOs and NFPOs. The literature on brands and the differences between the brands of the two types of organisation are reviewed with particular reference to those situations where brands might work together, such as is the case with CRM. Past research has shown there to be an imbalance of power between the two organisations in such activity. The primary qualitative research reported here shows how the balance of power has changed in recent years and what factors may contribute to any imbalances and influence the way that FP and NFP managers will manage their brands in a CRM context.

The findings show that historically there has been an imbalance of power based on four key factors: Firstly that NFPOs generally focus on their need to raise funds and do not push potential FPO partners hard enough; secondly that NFPOs fail to realise the full benefits that association with their brand might bring to a FPO brand; thirdly that FPO managers are seen by both FPO and NFPO managers as being superior to NFPO managers and lastly: the two organisations usually have quite different management styles which can lead to conflicts between the two.

This thesis provides a view of the world in which managers from the two types of organisation can work together and advances new theories as to how the effectiveness of both can be improved for the benefit of all concerned: FPOs, NFPOs and stakeholders including customers, beneficiaries and society in general.