Once a philanthropic tactic practiced by billion dollar mega-brands, cause marketing has grown to be a key element in the marketing mix for companies and brands of all types and sizes. Download a free copy here: http://www.modernmarketingpartners.com/Download-Whitepaper-Cause-Marketing.cfm
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Cause Marketing
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How Brands Can Use Cause
Marketing for Results
Once a philanthropic tactic practiced by billion dollar mega-brands,
cause marketing has grown to be a key element in the marketing
mix for companies and brands of all types and sizes. Research
shows 75% of consumers believe companies should support
charities and nonprofits with financial donations, while 61% say
they will buy a new brand if it supports a cause they care about1
.
This whitepaper will help you to understand what cause marketing
is, why it’s good for your business or brand, and how you can implement
it effectively. We’ll also share some case studies, and an infographic
presenting the latest trends in cause marketing.
WHAT IS CAUSE MARKETING?
Cause marketing allows companies the opportunity to succeed
financially while simultaneously doing something good for the
community. Sometimes referred to as cause-related marketing,
the Cause Marketing Forum defines cause marketing as “a strategic
marketing partnership that pairs a company or brand with a
social cause or cause-related organization for mutual benefit2
.”
The benefits of these strategic partnerships are varied and include
increased sales and customer engagement, as well as brand
differentiation in what are often over-crowded markets. 95 percent
of college students reported they were less likely to ignore an ad
that promotes a brand’s partnership with a cause3
.
Compared to other forms of marketing, cause marketing is a
relatively cost-effective way for a company to generate positive
media coverage. Because cause marketing leverages the assets of
two brands (yours and the nonprofit’s), you increase your resources
to create shareholder value and broaden your constituency.
Cause
Marketing
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Cause Marketing
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Transactional campaigns are when a portion of the consumer’s
purchase goes towards a selected charity. Consumers may also
be asked for an extra donation after the transaction.
Events are probably the most recognizable of cause marketing
campaigns. Companies partner with a nonprofit to raise money
or supplies for runs, benefit concerts, clothing drives, etc.
They also aim to increase awareness and participation.
Code/coupon redemption requires consumers to either clip
coupons from sponsoring products or go online to enter in
verification codes to trigger the donation.
Pledge Drives ask consumers to publicly support a specific cause
or nonprofit organization. They’ll often be asked to sign a pledge
and list themselves as a public supporter.
Consumer Engagement gives consumers the ability to create
“mini-campaigns” where they nominate and vote for causes
they believe should be supported by the company.
1. Transactional Campaigns
2. Events
3. Code/coupon redemption
4. Pledge Drives
5. Consumer Bngagement
TYPES OF CAUSE MARKETING
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6 Tips for Effective Cause Marketing:
1.) Pick your nonprofit partner wisely
It’s crucial to partner with a nonprofit that understands the
strategic nature behind your partnership. There needs to be the
understanding that a successful cause marketing campaign should
ensure the mutual benefit of both sides. Your company is more
than simply a source of funding and the nonprofit is more than
just a way to boost your image. If you both happen to share the
same target audience, that will go a long way towards forming a
meaningful collaboration.
2.) Integrate the cause into your company culture
The cause you’re supporting should tie in seamlessly with your
company’s overall mission and values. Consumers are not naïve
enough to simply buy into your cause marketing campaign without
asking how the cause relates to your product or service. Authenticity
and a high level of commitment from the top down are key so
talk to your team and find a cause that everyone can feel truly
happy about supporting. If stakeholders see that you have fully
integrated the values of that cause into your company culture,
you have a much higher chance of increasing returns related to
your company’s goals.
3.) Give more than just money
As mentioned previously, your company can and should give more
than just dollars. Think about what your company can offer in addition
to financial support. Donating relevant products or services will
strengthen the association between your brand and the cause.
Another option is to offer a corporate volunteering program. These
programs allow employees to volunteer while on the company’s
time and have been shown to dramatically improve both employee
engagement and satisfaction.
4.) Be transparent, demonstrate impact
So the consumer has purchased your product and a portion of the
proceeds have gone to your nonprofit partner. Is your interaction
with that consumer done? Definitely not. Savvy consumers want
to know what you’ve done with their generous donation and whom
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you’ve impacted. Avoid jargon that sounds like feel-good nonsense
and be as transparent as possible with your results (it’s great PR).
Keeping a counter on your website to track funds raised is a good
option but you can also get more creative by sharing stories about
the campaign’s impact on the community.
5.) Leverage free PR
Make sure you’re strategic communications focus more on the
cause you’re supporting than your company. If you’ve created a
strong connection between the two, this should be enough to
generate some fantastic PR. Because you’re associated with a
nonprofit, much of the PR you generate will be organic (free) and
this buzz will add authenticity and credibility to your campaign.
We suggest first making good use of this free publicity but there
are also wire distribution sites that will send out your press releases
for a fee. PRWeb is a popular general distribution site while others
such as CSRwire and 3BLMedia focus exclusively on cause marketing
news. Fees range depending on the services you select.
6.) Harness the power of social media
Whether you’re just starting your cause marketing campaign or
celebrating its success, let the public know about it! Social media
is ideal for promoting cause marketing because it gives you the
opportunity to connect with those passionate about what you’re
doing. Twitter, Facebook, and YouTube are just a few fantastic
platforms to reach your audience rather than wait for them to come
to you. Create videos that highlight your team’s quality work. Find
prominent bloggers who are already talking about this cause and
would be excited to hear (and possibly write) about your campaign.
Also, don’t forget to connect with the nonprofit as well as their staff
and volunteers.
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Case Studies
Below are some case studies of both successful, and unsuccessful
cause marketing campaigns.
JoinFITE - Kiva and Dermalogica
In 2011, a California skin-care producer called Dermalogica
partnered with Kiva, a nonprofit connecting donors with microfinance
institutions in developing countries to help alleviate poverty.
Dermalogica’s founder, Jane Wurwand, created the joinFITE
(Financial Independence Through Entrepreneurship) campaign to
provide micro loans to women entrepreneurs in low-income areas
all over the world. The cause was close to her heart as she dedicated
much of her life to creating products to better the lives of her
clients - almost exclusively women.
Dermalogica worked with Kiva to develop the joinFITE website
prompting consumers to enter a code printed on some of
Dermalogica’s top-selling products with Dermalogica pledging to
donate $1 for every code entered. Dermalogica strengthened the
association by branding the products with the joinFITE campaign
colors and logo.
To date, the campaign has provided microfinance loans to nearly
30,000 female entrepreneurs all around the globe.
For more information about joinFITE, visit www.joinFITE.org
Lowe’s Toolbox for Education - Lowe’s Charitable and
Educational Foundation
Lowe’s Toolbox for Education is an initiative that provides grants for
K-12 public educational projects in the communities where their
stores are located. Funded projects include library renovations,
safety improvements, playgrounds, and other outdoor facilities.
Lowe’s chose not to partner with a single nonprofit but instead
formed the Lowe’s Charitable and Educational Foundation to
partner with several nonprofits including Habitat for Humanity,
Rebuilding Together and the American Red Cross.
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Forming a foundation is an option for larger companies who have the
time and resources to manage the funds in addition to raising them.
Toolbox for Education has been successful in donating more than
$34 million in grants since its inception in 2006. The campaign
fits well with Lowe’s overall corporate mission of “being a good
neighbor” and bettering the communities it serves.
For more information about Lowe’s Toolbox for Education, visit
http://www.toolboxforeducation.com/.
Buckets for the Cure - KFC and Susan G. Komen for the Cure
In 2010, Kentucky Fried Chicken partnered with the Susan G.
Komen for the Cure, a nonprofit organization focused on funding
community initiatives and research for breast cancer. “Buckets
for the Cure” pledged to donate 50 cents for every pink bucket of
chicken sold in the US with the ultimate goal of reaching $8 million.
Within days of launching, the campaign received criticism for
creating an association between breast cancer research and
something as unhealthy as fried chicken. Many argued that
maintaining a healthy diet was crucial for those battling cancer
and the campaign was sending a mixed message to consumers.
Termed “pinkwashing”, KFC was accused of trying to slap a pink
ribbon on something unhealthy to increase sales.
In the end, KFC donated millions to Susan G. Komen for the Cure
but both brands had damage done to their reputations. Rather than
focusing on the purpose of the campaign, KFC spent more time
defending their menu of high-calorie fried foods while Komen was
viewed as failing to partner with an organization that complemented
their overall mission.
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Cause Marketing 101
Transactional Events Code/Coupon Redemption
Cause sponsorship is predicted to reach
Corporate Social Responsiblity
the importance of
of corporations recognize
95%
of Americans say they would
consumers think companies should address
be willing to try a new brand or
one unfamiliar to them when it
supports a cause61%
would try a generic
private-label brand46%
would be willing to purchase
a more expensive brand20%
>80%
A projected increase of
Consumer EngagementPledge Drives
Types of Cause Marketing
By The Numbers
05
$1.78 billion in 2013
4.8% over 2012
278 MillionAmericans want to know what a
company is doing to benefit a cause.
Who is using?
Influencing Purchasing Behavior
The Leading Issues
MMP’s 6 Tips For Effective Cause Marketing
on their websites.
address cause marketing
of Fortune 500 companies
41%of Americans say they have purchased a
product in the past year because it was associated
with a social or environmental cause.
85%have a more positive image of a product
or company when it supports a cause
they care about.
80%are likely to switch brands, similar in price
and quality, to one that supports a cause.
88%say it is acceptable for companies to involve
a cause or issue in their marketing.
Equal rights/Diversity
Access to Clean Water Education Diversity
Pick your nonprofit partner wisely
Integrate the cause into your company culture
Give more than just money
Be transparent, demonstrate impact
Leverage free publicity
Harness the power of social media
http://www.causemarketingforum.com/site/c.bkLUKcOTLkK4E/b.6448131/
Sources:
www.ModernMarketingPartners.com
Copyright 2013
http://www.camden.rutgers.edu/pdf/marketing.pdf <http://www.camden.rutgers.edu/pdf/marketing.pdf>
http://www.csrwire.com/press_releases/30556-Even-as-Cause-Marketing-Grows-83-Percent-of-Consumers-Still-Want-to-See-More-
http://blog.firespring.com/wp-content/uploads/2011/05/The-Importance-of-Cause-Marketing-to-Your-Business.jpg
Hunger Economic Development/
Health & Disease
Crime/Violence Homelessness/Housing Environment/Disaster Relief
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(Zoom - In to enlarge)
The Infographic to the right
presents the latest trends
in cause marketing including
what issues consumers
think companies should
address, and the percentage
of companies that are
partaking in cause marketing.
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Cause Marketing
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Modern Marketing Partners is a full service
marketing and communications agency
based in the Chicago region. MMP supports
several nonprofits and associations and
implements cause marketing campaigns for
clients. To request a complimentary Cause
Marketing Analysis, contact Neil Brown
at 630-868-5061, or visit our website
www.ModernMarketingPartners.com
A Bright Future
Cause marketing is arguably a growth market of great potential,
with even small and midsize businesses embracing it. Now that
you have been supplied with information on what cause marketing
is, how to manage it effectively, and what it can do for your business,
it’s important to note that cause marketing is not an option for
every company. It should certainly never be used as a “last resort”
for a company struggling with poor brand image. If stakeholders
don’t believe your company is truly committed to the cause you’re
supporting, it can actually harm your reputation more than help
it. Authenticity is the key here and without it, a cause marketing
campaign is ineffective.
Additional Resources:
1
Do Well Do Good
2
Cause Marketing Forum
3
Alloy Media + Marketing