introduction for non profits to cause marketing

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2. Cause Marketing
Basics
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3. Agenda
• What, Why, When, Who & How effective
• Where to start
• Case studies
• Lesson learned
• The devil is in the detail
• Resources
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4. What, Why, When,
Who, How
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5. Cause Marketing vs Sponsorship
• Cause-related
sponsorship is a strategic
positioning and marketing
tool that links a company
or brand to a relevant
social cause or issue for
mutual benefit.
• According to IEG, $1.55
billion in 2009, a 2%
increase over 2008.
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6. Why Cause Marketing? A Nonprofit Perspective
• Generates unrestricted funding
for the organization
• Increases visibility of the cause
or nonprofit’s message
• In-kind donations
• Provides expertise in
marketing, strategy and other
experience
• Access to the corporation’s
network of employees as
volunteers
• Introduction to the
corporation’s suppliers,
distributors and other contacts
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7. Why Cause Marketing? A For Profit Perspective
• Generates increased sales
• Develops customer loyalty
• Differentiates the brand
from its competitors
• Enhances the corporations
image
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8. Why Cause Marketing? The Halo Effect
• 85% of Americans have a more
positive image of a product or
company when it supports a cause
• 79% would likely switch from one
brand to another if the other brand
is associated with a good cause
• 79% want to work for a company
that cares how it impacts a society
Source: Cone Research
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9. Why Cause Marketing? The Female Factor
• 81% of women are finding it more difficult
to give to causes in a worsening
economy.
• 69% of women look to companies to help
them DO GOOD in difficult times.
• 80% of women concerned companies will
cut back on their GOOD support.
Source: Self Magazine 2009
• 82% of women agree that “during a
recession it’s still important for brands
and companies to set aside money for a
good cause or purpose.”
• 72% agree that “if a company has to cut
back costs during a recession, it should
not stop giving to good causes.”
Source: Edelman GoodPurpose Report 2008
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10. Why Cause Marketing? The Importance of Gen Y
Total Gen Y
Likely to switch brand with 79% 88%
cause
Have purchased product or 38% 51 %
service associated with a
cause (last 12 months)
Want to see a percentage of 28% 41%
purchase donated to a
charity
Source: Cone Research
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11. When Did Cause Marketing Start?
• In 1983, each time the
American Express card was
used 1 penny donated to
renovate Statue of Liberty
$1.7 million raise, 28%
increase in card usage
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12. How Effective Is Cause Marketing?
• In 1997, Coca-Cola donated
15 cents to MADD for every
case of Coke bought in a 6-
week promotion in more
than 400 Wal-Mart stores.
Coke sales in these stores
increased 490% during the
promotion.
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13. How Effective Is Cause Marketing?
• The Calphalon Corporation
co-branded several of its
poorly-selling pans with the
Share Our Strength name
and logo and donated $5 to
the nonprofit for every such
pan sold.
Sales of these pans
increased 250%
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14. Questions
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15. Where to Start
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16. Assess Your Readiness
• Who is the internal team?
• How does the board need to be involved?
• Do you have a business friendly environment?
• What is the team’s knowledge level about cause marketing?
• Do you need training? Where will you get?
• What assets do you have?
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17. Know How and Why a Corporation Chooses a Cause
• Increase sales
• Increasing customer loyalty
• Differentiate the corporation/brand
• Increase access to markets
• Enhance corporate/brand reputation by
positioning it as a responsible, caring
company/brand
• Enhance employee recruitment and retention
• Expand opportunities for employees to practice
leadership and management
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18. Understand Your Value Proposition
• Determine which
assets/capabilities that may be of
value to corporations?
– Do you have an excellent
reputation and powerful
mission?
– Can you provide recognition,
endorsements or awards?
– Can you provide access to
prospective customers to the
corporation?
– Do you have access to
programs, projects and
organizational expertise?
– Can you distribute products,
such as books or pamphlets for
use as incentives or
giveaways?
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19. Getting Inside the Head of a Corporation
Remember its about them
• Who do they target?
• Are any products/services getting
a special marketing push?
• About what causes are they
passionate?
• Do they have a geographic focus?
• Do they have a preference in
terms of the size organization with
whom they work?
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20. How to Find a Partner: Critical for Cause Marketing
• Passion alignment
• Match target markets
• Product service fits
• Geographic focus
• Organization size
• Research
– News
– Annual reports
– Company websites
– Lists of socially responsible
companies
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21. Questions
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22. Case Studies
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23. Global Public-Private Partnership for Handwashing With Soap
• Hispanics were an underserved
market by P&G
• Hispanic women are more likely to
die from breast cancer
• P&G brought screening to Texas
supermarkets
• Tie-ins with local hospitals assured
that women with suspicious films got
follow-up care
• Expanded to Florida, Los Angeles,
New York and Puerto Rico
• Exceeded P&G's payout goals by
20%.
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24. Dell and Goodwill Team Up on Computer Recycling
• Goodwill Industries of
Pittsburgh and Dell introduced
Reconnect Pittsburgh, a free
drop-off program for recycling
of unwanted computers
• Responsible recycling or reuse
of computer equipment
• The goal of the program is to
divert more than two million
pounds of used computers and
computer equipment from
landfills over one year
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25. Build-A-Bear Workshops and the World Wildlife Fund
• Build-A-Bear Workshop births a
co-branded giraffe with World
Wildlife Fund (WWF)
• It donates $1 to WWF for each
giraffe sold
• The weekend of its arrival Build a
Bear double the donation to WWF
from $1 to $2
• The giraffe is the sixth in a series
of stuffed animals that have helped
to support WWF
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26. Questions
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27. Lessons Learned
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28. Match Passions: Critical for Cause Marketing
Nonprofit
Cause Corporation
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29. Lessons Learned
• Match ideals and passions
• Make the program
meaningful
• Seek out non competing
partners
• Get to know each other
• Be transparent and
accountable
• Determine who does what
• Be flexible
• Celebrate success
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30. The Devil Is in
The Details
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31. Pick a Partner Wisely: Critical for Cause Marketing
• Does your mission match the
goals of the corporation?
• Does the corporation have a solid
reputation?
• Does the corporation have a
tradition of philanthropy or is this
their first initiative?
• Look beyond the obvious benefits
of money, business expertise and
volunteers.
• Acknowledge the importance of
chemistry.
• Do due diligence to find out about
the corporation’s goals and
reputation.
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32. The Fine Print
BBB Standard 19
• Clearly disclose how the charity
benefits from the sale of products or
services (i.e., cause-related marketing)
that state or imply that a charity will
benefit from a consumer sale or
transaction. Such promotions should
disclose, at the point of solicitation:
– the actual or anticipated portion of
the purchase price that will benefit
the charity (e.g., 5 cents will be
contributed to abc charity for
every xyz company product sold)
– the duration of the campaign (e.g.,
the month of October),
– any maximum or guaranteed
minimum contribution amount
(e.g., up to a maximum of
$200,000).
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33. Measurement: A Different Set of Metrics
Corporation
• Sales
• Brand awareness
• Media impressions
• Survey participants
• Public opinion polls
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34. Manage the Relationship and Expectations:
Critical for Cause Marketing
• Mutual respect
• Listen
• Honest and open exchange of
ideas and expectations
• Continually updating each
other
• Determine what the
relationship will look like
• Determine how the relationship
will run
• Determine what results will be
produced
• Get support from senior
management on both sides
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35. Develop a Game Plan: Critical for Cause Marketing
• Determine the scope of the
relationship (paid, in-kind,
volunteers)
• Determine who and how
marketing outreach is being
done
• Develop costs, timelines,
roles and responsibilities
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36. Get a Referral
• Having the door opened for you will save time and energy
• Use your Board, staff, friends, and volunteers
• Do cold calling as a last resort
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37. First Steps
• Who’s on your team?
• Who will do what?
– asset evaluation
– corporate research
– writing the pitch
– presents
– corporate liaison
– implementation team
– evaluation
– feedback
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38. Resources
• Cause Marketing Forum
http://www.causemarketingforum.com/
• Consumer Behavior Study Confirms Cause-Related Marketing
Can Exponentially Increase Sales
http://www.businesswire.com/portal/site/google/?ndmViewId=n
ews_view&newsId=20081001005317&newsLang=en
• 12 steps to creating a cause marketing campaign
http://blog.drakeco.com/2008_06_01_archive.html
• Standard 19
http://www.bbb.org/us/sitepage.aspx?id=ea10e84e-edc6-
4b51-846c-92b29220113a
•
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39. Questions
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