Marketing

"Cause-Related Marketing": Why Social Change and Corporate Profits Don’t Mix

In the 1980s, a new form of marketing was born: Cause-Related Marketing (CRM), a hybrid of product advertising and corporate public relations. CRM aims to link corporate identities with nonprofit organizations and good causes. As a tax-deductible expense for business, this form of brand leveraging seeks to connect with the consuming public beyond the traditional point of purchase and to form long-lasting and emotional ties with consumers. However, what might seem like a fair exchange between corporations in search of goodwill and non-profits in search of funds also raises a range of troubling social, political and ethical questions.

CRM is, first and foremost, a market-driven system. Therefore, a non-profit organization's chance of obtaining CRM funding hinges on its ability to complement sales messages. However, it is often the case that vital social issues are only -- or are best -- addressed by "edgy" groups or by using controversial tactics.

The ABCs of Adult Marketing to Children

"Adult shopping decisions might be affected by a sociological change called 'age compression'--the idea that kids may be getting older younger and demanding adult products," reports Andrea Canning. By ABC's count, kids are demanding cell phones, iPods, and may even want Japan's nonalcoholic "Kids'Beer." The story twice quotes Paul Kurnit, president of KidsShop Youth Marketing Company: "There is focus on a more savvy, more informed, more inclusive kid today," he notes.

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Blogging for Dollars (Again)

"Media today is so cynical that you have to come out and say that shilling without disclosure is a bad idea," writes BusinessWeek's Jon Fine. Fine reports on product placement on web logs or blogs. Ted Murphy of the Tampa, Florida ad agency MindComet launched the BlogStar Network in 2004, which paid $5 to $10 per post. He said "a couple thousand" bloggers had cashed in, via the network.

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Wal-Mart's New Targets

Latinos, African-Americans, baby boomers, high-income and rural shoppers -- Wal-Mart wants you. Those are the key communities identified in a six-page document that outlines Wal-Mart's future marketing plans. The giant retailer is reviewing its marketing strategy, due to slow growth. The document asks advertising agencies to describe how they would handle Wal-Mart's $570 million account.

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Free Trip Drug Zones: Paris and Budapest

The world's third largest drug company, Sanofi-Aventis, sponsored a tour to Budapest and Paris for a "parliamentary and stakeholder working group" including representatives from British patient groups. The tour included "optional attendance" at lectures at the European Association of Cancer Research conference in Budapest and a presentation in Paris on cancer drugs used in France but not yet approved in Britain.

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A Real Life Advertising Creep

"Reality-based product placement" is here. The car maker Jaguar's new marketing strategy is to give "its high-end cars to jet-setters" in major cities, for free. In Manhattan, Nico Bossi and his Jaguar XK "show up at all the right places, such as ... hangouts in New York's trendy meatpacking district." According to the Wall Street Journal, "Many people ask about the car, but Mr. Bossi doesn't reveal his Jaguar deal. ...

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Media Wars: Advertising for the U.S. Military

The first spots produced by the U.S. Army's new ad agency, McCann Erickson, aim "to recruit Arabic-speaking translators," reports Advertising Age. The Arabic-language spots are running in heavy rotation during World Cup coverage on the Arab Radio & Television Network in Canada and the United States. In one ad, a soldier says, "I am a bridge between two cultures. ... I make the children smile because I can speak with them," followed by "a mention of a $10,000 reward for joining the Army and the possibility of expedited U.S.

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