Cause Marketing: Boost Business By Giving Back
10/29/07
Krista Robertson, VP, Marketing Services

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With social responsibility on an upward trend, consumers often consider a company's commitment to social issues when making buying decisions. Research shows that consumers are more likely to buy a product that supports a charity. Because of this trend, companies are experiencing the lack of a brand loyalty and are looking for ways to make an emotional connection with the consumer. One way many companies are making that emotional connection is through cause marketing.

Over the last two decades, companies have been moving toward this type of marketing strategy. Cause marketing is a marketing strategy involving a mutually beneficial collaboration between a "for profit" business and a nonprofit organization and typically includes three partners: a corporate partner, nonprofit partner, and a consumer partner.

This partnership allows "for profit" organizations to utilize the equity of a nonprofit's brand to create a link between the company and the cause. The "for profit" entity seeks to leverage the brand equity of the nonprofit into rewards such as increased sales and brand awareness as well as gaining a reputation as a "good corporate citizen."

In turn, a nonprofit often receives placement on products, support in marketing and advertising, cash donations and increased volunteerism.

When considering a cause marketing strategy, develop market offerings that will meet both parties' objectives. The strategy should allow the parties to share brand equity and leadership while making a social impact. Meeting each other's objectives will make for a lasting partnership.

Benefits to the "For Profit:"

• Creates an emotional connection with new and existing costumers
• Expands revenue streams
• Helps to advance corporate objectives
• Allows company to leverage nonprofit's marketing efforts
• Enhances company's reputation

Benefits to the Nonprofit:

• Increases volunteerism
• Increases awareness of cause
• Increases donations
• Provides marketing and advertising support
• Can provide additional revenue by sales of products

Great examples of cause marketing at work:

• The American Heart Association's Go Red Campaign
  Companies such as Kellogg's, Flooring America, Hanes, Target, Macy's and many others have joined forces with AHA.
  www.goredforwomen.org/
  www.shopgored.com/

• Susan G. Komen for the Cure
  Companies such as Ford, Yoplait, BMW, KitchenAid and many others have joined forces with Komen.
  

For more information on Cause Marketing visit:
http://www.causemarketingforum.com/
http://www.psaresearch.com/bibcause.html