How Charities can Help You with Your Marketing

It’s called ‘cause related marketing’ in popular parlance today but it actually began in 1982, with an American Express campaign that helped restore the Statue of Liberty. The campaign raised $1.7 million in funds and fuelled a 27 percent increase in card usage.

With that level of success, there’s little wonder that marketing people everywhere took note.

Since that time there have been many companies large and small that have gained benefit from aligning themselves with a worthwhile cause.

Due, at least in part, to the overwhelming success of that American Express campaign, the buzz surrounding cause related marketing has only grown over the last two decades. Time magazine called it ‘the fastest growing advertising trend’ with 85 percent of corporations and 65 percent of not-for-profit organizations participating in cause related marketing, in one way or another, during 1999.

Many pieces of research are indicating that a major shift from traditional philanthropy to cause related marketing is in process

Just as importantly, there have been numerous reports indicating that consumers are influenced positively towards purchasing products and services due to a company’s alignment with a cause.

Research by consultants, Cavill & Co, indicates that values, ethics and contribution to causes can influence consumer purchases. (Although, clearly, the basic elements of the marketing mix must be in place, too). Of course, this positive influence only occurs where people are aware of your values, ethics and contribution to causes. So if you are contributing right now, it’s best that you start telling people.

The research indicates that the most important influences on consumer purchasing above all else, are good value for money, customer service, personal recommendations and domestic ownership.

However, contributing to charitable or community causes, and the company’s values and ethics, are now rated as being of similar influence to ready availability and decidedly more important than:

the size and success of the company,
media advertising,
loyalty/reward programs, and
sponsorship of major sporting events.

As with the American Express/Statue of Liberty partnership, well-implemented and communicated cause related marketing programs have the potential to bring enormous rewards to all parties.

Equally, a poorly executed campaign can backfire and damage the reputation of the partner organizations and can harm the work of the charity or cause involved.

Consumers are quick to identify any imbalance between the business and the cause it supports. To get it right, there are probably five critical success factors in a successful cause related marketing partnership, namely:

Planning and preparation: this covers the process of finding a like-minded suitable partner, defining the scope of the partnership and gaining commitment,

Negotiating the partnership: this includes matching the aims and objectives, auditing assets, defining the nature of the activity, valuing the opportunity and assessing the risks,

The formal agreement: this covers some of the legal requirements and codes and the responsibilities and liabilities for both parties,

Managing the program: as with any marketing initiative, project management aspects can be the make or break point, and

Communicating the program: which includes getting the delicate balance right between too much ‘hard sell’ and not enough ‘soft sell’ that is so important.

As the global marketplace becomes more competitive, companies must turn to cause related marketing to build a long-lasting connection with consumers.

In the past, price and quality were not always equal. Today, fewer competitive differentiators distinguish products, and consumers need to have an emotional connection with a brand in order to remain loyal.

By associating your company with a relevant cause, you can allow consumers to connect with your brand’s ‘soul’ while working together to create positive community change.

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Copyright 2002, RAN ONE Inc. All rights reserved. Reprinted with permission from www.ranone.com.