Today's consumers often want more than just quality, price and service in their purchases; they want to do business with companies that are socially responsible. Hence, companies are partnering with non-profit organization in Cause-related Marketing (CRM) strategies. CRM not only satisfies the consumers, but can also differentiate the company from its competitors and also provide other tangible benefits, like increased sales, visibility, customer loyalty, enhanced company image, etc.

Words like altruism, corporate responsibility and philanthropy are used by business houses to spell out their proven commitment to a worthy cause. In this regard, corporate houses are joining with charities or causes to market an image, product or service for mutual benefit. Embracing a good cause, not only builds brand loyalty among hard-to-please consumers, but also stands for something beyond merely profits. Cause-Related Marketing (CRM) can positively distinguish a company from its competitors and provide a marketing edge and other benefits, like increased sales, customer loyalty and improved company image.

In this crowded market, where the price and quality of goods are more or less comparable, companies are competing to gain customer attention and loyalty. Besides advertising, public relations and CSR activities, business houses are adopting a marketing strategy called `Cause-Related Marketing' to enhance their brand image and boost sales. It was Jerry Welsh in 1983, then with the American Express, who first coined the term "Cause-Related Marketing". Welsh designed a three-month marketing program around the Statue of Liberty Restoration Project, with the objective to increase the American Express Card usage and new card applications and at the same time raising money, awareness and support for the non-profit Restoration Fund. American Express donated one cent for every card transaction and one dollar for every new card application and backed the program with a $4 mn advertising campaign aimed at reaching existing customers and drawing new ones. In just three months, the Restoration Fund raised over $1.7 mn with American Express Card usage increasing 27% and new card applications increasing by 45%, compared to the previous year.

This transaction-based philanthropy creates a differentiating platform for the corporates in a marketplace, where all of them are trying to push their own products. Cause-related marketing is a strategic positioning and marketing tool that links a company or a brand to a relevant social cause or issue, for mutual benefit. The objective of this business strategy is to contribute to the bottom line through strategic philanthropy. There are two modes for contributing to the bottom-line. The first is corporate philanthropy, in which business houses make all possible efforts to improve the infrastructure and raise the quality and availability of basic needs to the people below the poverty line.

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