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Marketing Essentials

        WEEK 6
    Cause Marketing
Cause Marketing
Cause Marketing




Definition: Cause Marketing

A marketing partnership between a nonprofit
and for-profit organization where each party
receives benefit toward their individual
marketing objectives, while striving to create a
greater good through their combined resources.
Cause Marketing




Objectives?

In most cases, the nonprofit organization seeks
funding, greater public awareness and
expansion of their services & programs; the for-
profit business usually seeks increased brand
recognition, enhanced public relations value and
greater sales generation.
Cause Marketing




Cause Marketing is NOT the same as…

• Corporate Giving (Donations / Philanthropy)
• Corporate Social Responsibility (CSR)
• Volunteering
• Nonprofit Marketing / Cause Branding
Cause Marketing




Cause Marketing Vs. Philanthropy
 Cause marketing differs from Corporate Giving
(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.
Cause Marketing




Cause Marketing Vs. CSR

 Corporate Social Responsibility is operating a
business in a manner that accounts for its social
  and environmental impact, with the aim to
   embrace responsibility for its actions and
    encourage a positive impact through its
    activities on consumers, employees, the
 environment, local communities, stakeholders
      and all other members of the public.
Cause Marketing
Cause Marketing




Early Cause Marketing Campaign

American Express Statue of Liberty Restoration

One cent was donated to the Statue of Liberty Restoration
Fund every time a customer used an American Express
card and $1 was donated for every new American Express
account approved. (1983)
Cause Marketing




Did it work???

American Express Statue of Liberty Restoration

In 4 months, the campaign raised over $1.75 million for
the Restoration of the Statue of Liberty fund.


The payback for American Express? Credit card use rose
by 28%, new card applications increased by 45% and
new accounts by 17%.
Cause Marketing



Public Perception
• 88% of consumers say it is acceptable for
companies to involve a cause or issue in their
marketing.

• 85% of consumers have a more positive image
of a product or company when it supports a
cause they care about.

• 90% of consumers want companies to tell
them the ways they are supporting causes.



                              Cone Communications Cause Evolution Study 2010
Cause Marketing



Public Perception
80% of Americans are likely to switch brands,
about equal in price and quality, to one that
supports a cause.




                             Cone Communications Cause Evolution Study 2010
Cause Marketing



Public Perception
Cause also motivates many of these consumers
to step outside their comfort zone and try new,
generic or more expensive brands.




                             Cone Communications Cause Evolution Study 2010
Cause Marketing




Types of Campaigns
• Transactional
• Licensing
• Awareness / Activism / Volunteering
Cause Marketing




Campaigns: Transactional

When a consumer buys a product or service a
donation is made to a cause; can be a set
amount or a percentage of sales.
Cause Marketing



Campaigns: Transactional - Example
Yoplait’s Save Lids to Save Lives
For each pink lid received and each code redeemed online
General Mills will donate 10 cents to Susan G. Komen for
the Cure, up to $2,500,000.




 Since 1997, General Mills/Yoplait has donated more than $34m to the
cause through the Save Lids to Save Lives program and other initiatives.
Cause Marketing



Campaigns: Transactional
Sometimes instead of a purchase, a donation is
made when the consumer performs some type
of action…


  Macy’s donates $1 to the
 Make-a-Wish Foundation for
every letter to Santa dropped
into their special letter boxes
       at Macy’s stores.
Cause Marketing



Campaigns: Transactional
Sometimes instead of a purchase, a donation is
made when the consumer performs some type
of action…
Cause Marketing




Campaigns: Licensing

A company pays a fee to use a nonprofit’s brand
on its product. Licensing may include a
certification process by the nonprofit before the
company is allowed to use the logo.
Cause Marketing



Campaigns: Licensing - Example
Arctic Home: Coca-Cola & World Wildlife Fund
The “Arctic Home” campaign was created by WWF to
raise awareness of the polar bear’s plight and generate
public funding for its protection. Coca-Cola made an
initial $2m donation to the cause and agreed to match
consumer donations up to $1m through March 15, 2012.
Cause Marketing




Campaigns: Awareness
When a business puts its resources to work to
promote a cause-focused message or activity.
Cause Marketing



Campaigns: Awareness - Example
Tide Loads of Hope
A mobile laundromat sent to disaster-stricken areas to
wash, dry & fold clothing for free; created in the wake of
Hurricane Katrina and has cleaned more than 30,000
loads of laundry in disaster sites around the U.S.
Cause Marketing




Creating Your Campaign - Key Steps
• Authenticity

Identify a CAUSE - not a Nonprofit org - that fits
with your business, your brand and your
customers OR that resonates with you as the
business owner
Cause Marketing




Creating Your Campaign - Key Steps
• Authenticity
Cause Marketing




Creating Your Campaign - Key Steps
• Research

Do your homework before you approach a
Nonprofit org or cause-related partner.
-   What’s their reputation?
-   Where do they run their programs?
-   Have they participated in cause campaigns?
-   Are they media/marketing savvy?
Cause Marketing




Creating Your Campaign - Key Steps
• Goal Setting

What do you want to accomplish:
Increased sales? Brand awareness?
New customers? Launching a new product?

What does the Nonprofit want to accomplish:
Funding? Awareness? Brand Association/Status?
Cause Marketing




Creating Your Campaign - Key Steps
• Use your Marketing Tools

Build a comprehensive campaign with your
resources AND the Nonprofits’ resources;
activate across all appropriate channels.

• Earned Media - Public Relations
• Owned Media - Social Media/Blog/Website/Newsletter
• Paid Media - Advertising/Direct Marketing/Events
Cause Marketing




Creating Your Campaign - Key Steps
• Track / Measure / Evaluate

Did we hit our goals?
Did we hit the Nonprofit’s goals?
What went right/wrong?
Cause Marketing
Cause Marketing




Avoiding “Cause-Washing”

Best Practices (NY State Attorney General)
• Clearly describe the promotion
• Allow consumers to easily the determine
donation amount
• Be transparent about what is not apparent
• Ensure transparency in social media
• Tell the public how much money was raised
Cause Marketing



Resources

Selfishgiving.com
CauseMarketingForum.com
CauseMarketing.biz
Cone Communications    http://www.coneinc.com

Guidestar.com
CharityNavigator.com
GreatNonprofits.com
SportsandSocialChange.org

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Marketing Essentials: Cause Marketing

  • 1. Marketing Essentials WEEK 6 Cause Marketing
  • 3. Cause Marketing Definition: Cause Marketing A marketing partnership between a nonprofit and for-profit organization where each party receives benefit toward their individual marketing objectives, while striving to create a greater good through their combined resources.
  • 4. Cause Marketing Objectives? In most cases, the nonprofit organization seeks funding, greater public awareness and expansion of their services & programs; the for- profit business usually seeks increased brand recognition, enhanced public relations value and greater sales generation.
  • 5. Cause Marketing Cause Marketing is NOT the same as… • Corporate Giving (Donations / Philanthropy) • Corporate Social Responsibility (CSR) • Volunteering • Nonprofit Marketing / Cause Branding
  • 6. Cause Marketing Cause Marketing Vs. Philanthropy Cause marketing differs from Corporate Giving (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.
  • 7. Cause Marketing Cause Marketing Vs. CSR Corporate Social Responsibility is operating a business in a manner that accounts for its social and environmental impact, with the aim to embrace responsibility for its actions and encourage a positive impact through its activities on consumers, employees, the environment, local communities, stakeholders and all other members of the public.
  • 9. Cause Marketing Early Cause Marketing Campaign American Express Statue of Liberty Restoration One cent was donated to the Statue of Liberty Restoration Fund every time a customer used an American Express card and $1 was donated for every new American Express account approved. (1983)
  • 10. Cause Marketing Did it work??? American Express Statue of Liberty Restoration In 4 months, the campaign raised over $1.75 million for the Restoration of the Statue of Liberty fund. The payback for American Express? Credit card use rose by 28%, new card applications increased by 45% and new accounts by 17%.
  • 11. Cause Marketing Public Perception • 88% of consumers say it is acceptable for companies to involve a cause or issue in their marketing. • 85% of consumers have a more positive image of a product or company when it supports a cause they care about. • 90% of consumers want companies to tell them the ways they are supporting causes. Cone Communications Cause Evolution Study 2010
  • 12. Cause Marketing Public Perception 80% of Americans are likely to switch brands, about equal in price and quality, to one that supports a cause. Cone Communications Cause Evolution Study 2010
  • 13. Cause Marketing Public Perception Cause also motivates many of these consumers to step outside their comfort zone and try new, generic or more expensive brands. Cone Communications Cause Evolution Study 2010
  • 14. Cause Marketing Types of Campaigns • Transactional • Licensing • Awareness / Activism / Volunteering
  • 15. Cause Marketing Campaigns: Transactional When a consumer buys a product or service a donation is made to a cause; can be a set amount or a percentage of sales.
  • 16. Cause Marketing Campaigns: Transactional - Example Yoplait’s Save Lids to Save Lives For each pink lid received and each code redeemed online General Mills will donate 10 cents to Susan G. Komen for the Cure, up to $2,500,000. Since 1997, General Mills/Yoplait has donated more than $34m to the cause through the Save Lids to Save Lives program and other initiatives.
  • 17. Cause Marketing Campaigns: Transactional Sometimes instead of a purchase, a donation is made when the consumer performs some type of action… Macy’s donates $1 to the Make-a-Wish Foundation for every letter to Santa dropped into their special letter boxes at Macy’s stores.
  • 18. Cause Marketing Campaigns: Transactional Sometimes instead of a purchase, a donation is made when the consumer performs some type of action…
  • 19. Cause Marketing Campaigns: Licensing A company pays a fee to use a nonprofit’s brand on its product. Licensing may include a certification process by the nonprofit before the company is allowed to use the logo.
  • 20. Cause Marketing Campaigns: Licensing - Example Arctic Home: Coca-Cola & World Wildlife Fund The “Arctic Home” campaign was created by WWF to raise awareness of the polar bear’s plight and generate public funding for its protection. Coca-Cola made an initial $2m donation to the cause and agreed to match consumer donations up to $1m through March 15, 2012.
  • 21. Cause Marketing Campaigns: Awareness When a business puts its resources to work to promote a cause-focused message or activity.
  • 22. Cause Marketing Campaigns: Awareness - Example Tide Loads of Hope A mobile laundromat sent to disaster-stricken areas to wash, dry & fold clothing for free; created in the wake of Hurricane Katrina and has cleaned more than 30,000 loads of laundry in disaster sites around the U.S.
  • 23. Cause Marketing Creating Your Campaign - Key Steps • Authenticity Identify a CAUSE - not a Nonprofit org - that fits with your business, your brand and your customers OR that resonates with you as the business owner
  • 24. Cause Marketing Creating Your Campaign - Key Steps • Authenticity
  • 25. Cause Marketing Creating Your Campaign - Key Steps • Research Do your homework before you approach a Nonprofit org or cause-related partner. - What’s their reputation? - Where do they run their programs? - Have they participated in cause campaigns? - Are they media/marketing savvy?
  • 26. Cause Marketing Creating Your Campaign - Key Steps • Goal Setting What do you want to accomplish: Increased sales? Brand awareness? New customers? Launching a new product? What does the Nonprofit want to accomplish: Funding? Awareness? Brand Association/Status?
  • 27. Cause Marketing Creating Your Campaign - Key Steps • Use your Marketing Tools Build a comprehensive campaign with your resources AND the Nonprofits’ resources; activate across all appropriate channels. • Earned Media - Public Relations • Owned Media - Social Media/Blog/Website/Newsletter • Paid Media - Advertising/Direct Marketing/Events
  • 28. Cause Marketing Creating Your Campaign - Key Steps • Track / Measure / Evaluate Did we hit our goals? Did we hit the Nonprofit’s goals? What went right/wrong?
  • 30. Cause Marketing Avoiding “Cause-Washing” Best Practices (NY State Attorney General) • Clearly describe the promotion • Allow consumers to easily the determine donation amount • Be transparent about what is not apparent • Ensure transparency in social media • Tell the public how much money was raised
  • 31. Cause Marketing Resources Selfishgiving.com CauseMarketingForum.com CauseMarketing.biz Cone Communications http://www.coneinc.com Guidestar.com CharityNavigator.com GreatNonprofits.com SportsandSocialChange.org