Question

Explain the term "cause-oriented marketing" and give an example of this strategy from any campaign that we have discussed in class.

a) Cause-oriented marketing involves supporting social or environmental causes.
b) It's a marketing strategy that promotes profit above all else.
c) It focuses on misleading advertising.
d) There are no examples of cause-oriented marketing in PR.

Answer 1

Cause-oriented marketing involves a company supporting social or environmental causes, serving to enhance brand loyalty and customer engagement. The TOMS Shoes "One for One" campaign is an example, where consumer purchases directly contribute to a charitable cause. This strategy can also shift or steepen a company's demand curve, indicating increased demand or pricing power.

Step-by-step explanation:

Cause-oriented marketing is a strategy where a company supports social or environmental causes through its marketing efforts. This approach enables businesses to connect with consumers on shared values, often leading to enhanced brand loyalty and customer engagement.

Unlike traditional marketing strategies that focus primarily on profit maximization, cause-oriented marketing underlines a company's commitment to make a positive impact on society or the environment.

One example of cause-oriented marketing we discussed in class is the TOMS Shoes campaign. For every pair of shoes sold, TOMS donates a pair to a child in need, under the banner of their "One for One" campaign. This strategy not only promotes their product but also engages consumers by contributing to a social cause.

Another aspect we discussed is the impact of such marketing on the firm's perceived demand curve.

In monopolistic competition, advertising and cause-oriented marketing can cause the demand curve to become more inelastic or shift to the right—indicating an increase in demand or the ability to charge higher prices due to differentiated products.