Marketing activities are performed by nonprofit organization

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Case Assignment: Lancome and St. Jude's Children’s Research Hospital

In most people’s minds, curing childhood cancer and beauty products aren’t linked, but maybe they should be. Since 2010, Lancome has partnered with St. Jude’s Children’s Research Hospital to help fund saving children and curing childhood cancer.

"The support of Lancome, its network of ambassadors and generous customers is making a significant difference in the lives of some of the world's sickest children," said Richard Shadyac Jr., president and CEO of ALSAC, the fundraising and awareness organization for St. Jude’s Children's Research Hospital. "By raising awareness and funds to support our lifesaving mission through charitable campaigns and providing makeovers for teen patients at events such as the St. Jude Teen formal, Lancôme has been a steadfast partner for seven years and has truly shown the beauty of philanthropy."

St. Jude’s Children’s Research Hospital is the only National Cancer Institute–designated Comprehensive Cancer Center dedicated exclusively to children. Research and treatment improvements achieved at St. Jude's have increased the overall childhood cancer survival rate from 20 percent to 80 percent in the 50 years since the hospital opened. They share the discoveries made there with doctors and scientists worldwide, hoping their efforts can be used to save children all over the world.

Families of St. Jude’s patients never receive a bill for treatment because St. Jude’s feels the last thing a family should worry about is money when their child is fighting for his/her life. The majority of funding for St. Jude’s comes from individual donations and through programs like their partnership with Lancome.

Lancôme, founded by Armand Petitjean in 1935, is the world’s leading luxury beauty brand, known for their timeless glamour with a French touch. Lancôme has a presence in 130 countries with over 20,000 beauty advisors. Some of Lancôme’s most iconic products include L'Absolu Rouge, Hypnose mascara, Dual Finish, Teint Idole, Advanced Genifique, Visionnaire, Absolu L'Extrait, Tresor, and La Vie Est Belle.

In 2015, Lancôme launched their “Moments of Happiness” campaign to support St. Jude's. For select days in October, Lancôme donated $1 directly to St. Jude's for every purchase of their Définicils Mascara, La Vie Est Belle fragrance, and Advanced Génifique Youth Activating Concentrate. They also donated an additional $1 to St. Jude's for every Instagram shot or Twitter post featuring a picture of the poster’s hands shaped like a heart and including the hashtag LancomeGivesBack posted during the campaign.

In honor of the seventh year of their partnership, Lancôme increased their fundraising efforts with their 2016 campaign. From October 16 to October 22, the brand donated $1 to St. Jude's for every transaction made at Lancome counters nationwide and on Lancome-usa.com. (The campaign was not limited to select products, as in previous years.)

Lancome also continued the Hand Heart Campaign from 2015. From September 29 to October 25, Lancôme made a $1 donation to St. Jude's (up to $10,000) for every tweet or Instagram picture featuring a hand/heart picture and the hashtag #LancomeLovesStJude.

"It's inspiring for our organization to be involved and contribute to such a miracle, and I'm humbled and proud of our partnership with St. Jude's," says Suriya Parksuwan, president of Lancôme USA. "Everything you hear and see at St. Jude's is truly filled with color, positivity and optimism. It's purely magical to see the work that the hospital does to make life for patients and their families feel more ordinary, while focusing on what's important: getting better and having moments of happiness."

Lancome also launched their “Always On” campaign to continue their support of St. Jude's throughout the year. When checking out products on Lancome-usa.com, all customers will have the option to make a donation to St. Jude's.

MULTIPLE CHOICE

1. Which of the following marketing activities are performed by nonprofit organizations?

a. develop, manage, and eliminate programs and services

b. decide on prices to charge (may be called fees, donation, tuition, fares, fines, or rates)

c. schedule events or programs and communicate their availability through brochures, signs, public service announcements, or advertisements

d. All of these

e. None of these

2. Which of the following issues relating to target markets is unique to nonprofit organizations?

a. apathetic or strongly opposed targets

b. pressure to adopt undifferentiated segmentation strategies

c. complementary positioning

d. All of these

e. None of these

3. The targets for the “Moments of Happiness” campaign are __________.

a. Lancome customers

b. families of sick children

c. Instagram and Twitter users

d. A and C

e. All of these

f. None of these

4. What is true about the benefit strength for the “Moments of Happiness” campaign?

a. Only St. Jude's benefits from the campaign in the form of $1 donations.

b. There are benefits for St. Jude's in the form of $1 donations and to the customer in the form of their purchase, but Lancôme receives no benefit from the campaign.

c. The campaign has financial benefits for both St. Jude's and Lancôme, and the customers benefit in the form of a desired purchase.

d. Only Lancôme benefits from the campaign in the form of increased purchases.

5. The “Moments of Happiness” campaign is using which special promotion resource offered to nonprofit organizations?

a. professional volunteers

b. sales promotion activities

c. public service advertising

d. All of these

e. None of these

Reference no: EM132239352

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