Cause-Related Marketing

Cause-related marketing (CRM) is defined as the public association of a for-profit company with a nonprofit organization, intended to raise mutual awareness and benefit. This may involve donating a percentage of revenues to a specific cause based on the revenue from a specific time period. McDonald's earmarking $1 for the Muscular Dystrophy Association from the sale of every large order of fries is a good example of this practice. Companies use CRM in order to enhance their corporate reputation, raise brand awareness, increase customer loyalty, build sales, and overall improve their brand image. CRM is considered to be distinct from corporate philanthropy, since the former term is a marketing relationship and not a donation—the money is not an outright gift to the not-for-profit organization and ...