Speaker: Mark Heitmann University of Hamburg
Title: Cause-related Marketing as Sales Promotion
Abstract: Cause-related marketing promotions (CMPs) have ongoing momentum in marketing, especially in fast-moving consumer goods (FMCG). Prior work studied CMPs primarily in relatively simple experimental environments. FMCG market conditions include many more alternatives, more information, and other promotions. In these settings, CMPs risk remaining unnoticed. Based on 123 brands that executed 63 CMPs in 20 FMCG categories this paper studies the role of CMPs at the point of sale. On average, CMPs run for eleven weeks and donate 3.2 percent of product price. This results in an average weekly sales lift of 5.2 percent. Under optimal conditions, the impact can more than double. According to a hierarchical Bayesian model, market complexity and lack of brand prominence diminish CMP potential. On the other hand, concurrent price promotions (PP) can compensate for these disadvantages and make CMPs more effective. Collectively, these findings suggest that consideration likelihood is a relevant driver of the attainable CMP sales lift in FMCG markets.