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Sunday, March 25, 2012

Cause Marketing

Definition:

Any type of marketing effort for social and other charitable causes, including internal marketing efforts by non-profit organizations. Participating in these campaigns, allows for companies to become more and more socially responsible. Different types of Cause Marketing include product specific, promotion of a common message, product licensing, local partnerships, and employee service programs. Cause Marketing differs from corporate giving, or philanthropy, as the latter generally involves a specific donation that is tax deductible, while cause marketing is a marketing relationship not necessarily based on a donation.


Key Statistics:


Since 2009, cause-related marketing has increased 58% according to PRWeekBarkely. What is contributing to this change? Well, 86% of consumers believe that business needs to place at least equal weight on societal interests as on business interests (2010 Edelman goodpurpose). Also, according to a 2010 Cone Case Evolution Study, 90% of consumers want companies to tell them the specific ways they are supporting causes.


Here is quick example to illustrate how Yoplait is partnering with a charitable organization to promote social change through their products.




Demographics:

  • Millennial's 
    • Born between 1979 and 2001, termed the eco-boomers or Facebook generation. There are 78 million millennial in the U.S. Some common characteristics between this generation are they're well-educated, open-minded, socially aware and extremely brand loyal. 37% of Millennial's report being drawn to products co-branded with cause campaigns
  • Generation X
    • Born between 1966 and 1978. They are the cautious, self-relient, generation of advancement, technology, medicine and war on drugs generation. Common characteristics they share are divorce rates, the fact that they were the hardest hit by the recession, and the AIDS epidemic.
    • Here is an example of a company trying to connect with Generation X on a social issue 


Procter & Gamble:

P&G are the recipients of Cause Marketing Forum's 2012 Golden Halo Award. Every year, the Cause Marketing Forum recognizes businesses and nonprofits that lead the pack in creating programs that produce financial and social dividends, they are "doing well by doing good". Some campaigns that Procter & Gamble have started include Pampers 1 pack=1 vaccine program, protecting 100 million women and their babies against maternal and neonatal tetanus since 2006. Tide Loads of Hope is another campaign they launched in which a mobile laundromats were sent to disaster-stricken areas to wash, dry and fold clothing for free. Another example is Dawn's Everyday Wildlife Champions that donates products and funds to help clean wildlife affected by oil spills.




How Can These Tactics be Implemented in a Small business?

1. Give from the Heart - Work with an organization that you and your employees believe in, whether it's supporting a fight on a national health issue or rescuing homeless pets. Decide what matters most to you, your team, and your customers and you'll work harder to make a difference.
2. Choose a Related Cause - When looking for an organization, look for a cause that relates to your company or its products.
3. Contribute More than Dollars - Become more involved by donating products or services rather than just simply writing a check.
4. Formalize your affiliation - Work with the non-profit  to define how it will help your business increase its visibility, brand or company awareness. If the organization has a newsletter or some form of communication, negotiate for opportunities to do joint promotions.
5. Mount a Marketing Campaign - Be creative in trying to motivate your audience into taking action by planning events or by participating in other events. Cone Communications, a public relations and marketing agency, helps companies develop a marketing strategies and campaigns in order to have a significant and sustainable impact on society.


What Role will Cause Marketing Play in the Future?
  • More Cause Marketing Activations on Packaging - Having Cause Marketing activations on the packages of the products helps consumers see the contrast between competitors. Ex. Tide laundry detergent
  • Deeper Connections Between Employees and the Cause - Make sure the relationship between the cause and the company is more than just a simple transaction. 
  • More Cause Marketing Activations that Lead with Thanks - Include a report to customers about how the effrt is going or how it went, be sure to thank them for their role and support as well.

Questions:

1. What are some experiences that you have had with cause marketing, business-related or personal?
2. Do you think Cause Marketing will continue to grow internationally?
3. Are you willing to pay more for a similar product if you know they support a specific cause?
4. If an airline asked you to pay $5 more in order to offset your carbon footprint, would you donate?


Resources:





1 comment:

Anonymous said...

Yes, I do think Cause Marketing will continue to grow internationally. With so many third world countries there will always be a need for Cause Marketing to help those unfortunate people world wide. I think Cause Marketing definitely reaches the heart of people when they least expect it (i.e. commercials) therefore it is easier to get their participation.