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Thursday, May 17, 2012

Cause Marketing, How to Choose a Non-profit Partner

Like philanthropy, cause marketing helps to support non-profit organizations. However, unlike philanthropy, cause marketing has a secondary purpose. Cause marketing helps you to promote your business. This should be a win-win relationship, but like other methods of marketing, it can fail if you don't plan carefully. Developing the right partnership is the first important step to a successful cause-related marketing campaign.

1. In the same way you consider what products or services to provide, it is important to consider your customers. Selecting a cause that is important to you customers not only makes for a logical marketing connection, it tells your consumers that you care about them and what is important to them. Here's an example:

General Mills, Box Tops for Education
A large percentage of General Mills customers are families with school age children.




2. If possible select a cause that relates to your product. For restaurants in Winston-Salem, NC. Supporting Crisis Control Ministry through Hope du Jour is a great choice. Crisis Control Ministry serves the emergency needs of those in Forsyth County, including providing food through their food pantry. Hope du Jour is a day when local restaurants donate a portion of that day's sales to Crisis Control. Probably the best example of a successful cause-related marketing campaign to do this is Dawn Saves Wildlife.

Dawn Saves Wildlife
This long lasting campaign has been running for over 30 years and we still remember, "Dawn Cuts Grease and is Gentle to Skin".







3. You want to choose a non-profit with which you can build a long term relationship. Like with any other marketing method, you need multiple exposures to see any results. You wouldn't expect to run an ad one time in one publication and expect results, so don't expect that one cause-related marketing campaign will be effective on its own.

4. Get to know the non-profit. Do your research. In the same way you would look at the readership of a publication before choosing to place an ad, learn exactly what the organization does, who they serve and more importantly, who supports their cause. Ask for a copy of their annual report, look at their 990s (these are generally available on their websites). Tour the facility. Look for them on Charity Navigator which evaluates non-profits. Check with the Better Business Bureau.

According to PR Week/Barkley Cause Survey, 74% of consumers stated that they purchase a brand because it supports a cause. Cause marketing is valued by consumers. It helps support non-profits and it helps you promote your business. Overall, cause related marketing is a win-win.

Wednesday, May 16, 2012

Cause Marketing to Promote Your Business

Today, more than ever before, consumers expect the companies from which they purchase products to be socially responsible. According to a survey by PR Week/Barkley Cause Survey, 74% of consumers surveyed say that they purchased a brand because it supported a cause and 64% would pay more for a brand they normally wouldn't purchase because it supported  a cause that was important to them. For full survey, visit: www.barkleyus.com

74% of consumers surveyed say they would purchase a brand because it supported a cause and  64% would pay more for a brand they normally wouldn't purchase because supported a cause that is important to them. 

According to the recent CultureQ 2012 study http://www.onesixtyfourth.com/thought-pieces , “Many companies believe they have a responsibility to ‘give back’ to society and to me this is wonderful - in the future....[businesses will] have to give to get.”


So what exactly is Cause Marketing?


There are some distinct differences in ways you can support a nonprofit:
1.    Donation/Philanthropic Giving. This is when the mission of the nonprofit is really close to your heart, so you give a monetary donation to the non-profit organization. You don’t expect anything in return except a thank-you note, of course, and a receipt for tax purposes. The nonprofit hasn’t made any commitment to do anything for your business in exchange for this donation. That’s an example of corporate philanthropy.
2.    Sponsorship. A non-profit organization is having an event or program, you give them a donation to help underwrite the cost. In exchange, you get recognition in return from the non-profit in accordance to the agreed upon corporate sponsorship giving level. That’s a sponsorship. It is not necessarily an act of charity because you expect some return on your investment. The sponsorship cannot be counted off of taxes as a charitable donation, it can however be deducted as a marketing/advertising expense. It is important to consider sponsorships in relationship to your overall marketing plan.
3.    Cause Marketing Campaign. This is more of a mutual partnership because not only will the charity promote you as a partner, you will promote the charity. Cause marketing has become such an important part of corporate marketing strategy that 97% of today’s corporate leaders believe cause marketing is a valid strategy to grow their business. 



History of Cause Marketing?


We may think of cause marketing as a relatively new concept, but it actually dates back to 1976 when the Marriott Corporation partnered with the March of Dimes to promote the grand opening of a 200-acre family entertainment center.  The Marriott’s objective was to generate cost-effective public relations and media coverage of their grand opening. The March of Dimes objective was to increase awareness of the March of Dimes and increase walk pledges.  It was highly successful for both partners.

In 1983 American Express coined the phraise “cause marketing” during its campaign to donate money to different arts organizations in San Francisco every time someone used their American Express card or opened a new account.  It was overwhelmingly successful for both the charities and American Express.


Cause Marketing, Creating Mutually Beneficial Relationships

Cause Marketing should be evaluated in the same way you evaluate other aspects of your marketing mix.  For example if you are trying to communicate to a target audience that listens to Country Music, you would most likely consider advertising on a radio station that plays Country music. Below you will find some examples of logical partnerships between brands and non-profits.

TIE THE PRODUCT FEATURES TO THE CAUSE BENEFITS

Dawn Saves Wildlife
This longstanding campaign is enough to make you believe in premonitions. Dawn was able to pull off a neat trick – parlay its product message into a cause slogan that has endured for over two decades. Many people may not remember the part Dawn played in the Exxon Valdez oil spill, but Dawn was on the spot once again during the BP disaster and people were reminded how Dawn soap is tough on grease (oil) but gentle on hands and wildlife.



TIE THE CAUSE BENEFITS TO THE INTERESTS OF YOUR TARGET AUDIENCE

EDUCATIONGeneral Mills Box Tops for Education and
Campbell’s Soups Labels for Education


A large part of both General Mills Products and Campbell’s Soups customer base are families with school age children. In addition to developing a program that benefits a large population of their customers, both companies teamed up with schools to create programs to promote the collection of these labels.


 


WOMEN’S HEALTH

Yoplait


A large part of Yoplait’s consumer base are health concious women. Partnering with Susan G Komen to support breast cancer research is a logical and profitable cause marketing partnership.