Meaningful and Uncommon Cause Marketing Presented by Matt Scelza Director, Incite Los Angeles
Today’s Agenda1. Cause Marketing2. Your Nonprofit
Today’s QuestionHow are youmeaningful anduncommon?
Definition of Cause Marketing Partnership between a for-profit and a non-profit for mutual benefit
Definition of Cause Marketing Marketing is about consumer engagement. Causes engage consumers in meaningful and uncommon ways.
Definition of Cause Marketing 20% of consumers will pay more for a cause-related product. 61% will try a new product because of a cause. 80% of consumers will switch to a brand that supports a cause when price and quality are equal. Source: Cone Evolution Study 2010
The Price Premium of Engagement Brands that engage people emotionally can command prices as much as 20 to 200 percent higher than competitors
The Evidence for Cause Marketing Consumer Expect Marketing with Purpose Globally – Eighty-six percent of consumers around the world believe that business needs to place at least equal weight on societal interests as on business interests. 2010 Edelman goodpurpose Marketing Experts Agree - Two-thirds of brands now engage in cause marketing (up from 58% in 2009) and 97% of marketing executives believe it is a valid business strategy. 2010 PRWeek/Barkley PR Cause Survey Communication is Key - 90% of consumers want companies to tell them the ways they are supporting causes. Nearly two-thirds (61%) don’t think companies are giving them enough details about their efforts, including the amounts donated and the length of the promotions. 2010 Cone Cause Evolution Study Hispanics and African Americans Respond to CM - One-third of Hispanic and African American consumers report that they almost always choose brands that support causes they believe in, compared to just one in five Non-Hispanic Whites. Yankelovich MONITOR Multicultural Study 2010
Not Cause Marketing Donations Grants Sometimes: • Event Sponsorships • Cause-Created Companies
Cause-Centered Companies A partnership between a for-profit and a non-profit Is it cause marketing if mutual benefit for a company is created specifically to support a nonprofit?
Early Cause Marketing Efforts 1983 A partnership between a for-profit and Express American for a non-profit Statue of Liberty for mutual benefit
Cause Marketing Goes Mainstream in ’80s and ’90s Who knows who these two women are?
Cause Marketing Done Wrong A partnership between a for-profit and a non-profit for mutual benefit
Best Practices for Transparent Cause MarketingFrom the NY State Attorney General,spurred by some murky ads.1. Clearly Describe the Cause Marketing Promotion2. Allow Consumers to Easily Determine DonationAmount3. Be Transparent About What is Not Apparent4. Ensure Transparency in Social Media5. Tell the Public How Much Was RaisedPurposefully flexible to accommodate theevolutionary nature of our industry.
Two thoughts on the Best PracticesMake sure consumers caneasily answer the question- “If I take this action, howmuch will go to charity?”Corporations need to beclear about what theymean when they say “Weare a proud sponsor of…”
Top Cause Marketing Issues The Big 3 1. Education 2. Environment 3.A partnership Health between The Otherfor-profit and a 3 4. Disaster Relief a non-profit 5. Economic Development (Jobs) for mutual benefit 6. Hunger Relief
How Nonprofits Benefit Increases revenue, visibility and volunteers Gives you access to new audiences, including the corporation’s employees, suppliers, distributors, and customers
Seven Types of Cause Marketing Campaigns Action-Triggered When a consumer makes a A partnership between purchase, part of the money made from that a for-profit and purchase goes to the a non-profit nonprofit for mutual benefit Source: SelfishGiving.com
Action-Triggered Example: Bon-Ton and Goodwill IndustriesConsumers either donated their used clothes at Bon-Ton stores to benefit Goodwill or donated to Goodwill and A partnership between then registered with BonTon.com. a for-profit and orAll donors receive discounts at any of Bon-Ton’s stores online, along with a chance a win $25 and $50 gift cards to non-profit instantly and be entered into the Grand Prize for mutual benefit sweepstakes for a $1,000 Shopping Spree.
Seven Types of Cause Marketing Campaigns Point of Sale Cashier asks if you want to donate, or a sign displayed at the register encourages a donation
Point of Sale Example: MDA and Menchie’s A partnership between a for-profit and a non-profit Using a “pin-up” available for $1, for mutual benefit MDA raises revenue and Menchie’s gains wall art that displays community involvement.
Important Lesson from Menchie’s: Think About Your PartnerFrom Joe Waters’ blog:Menchies pinup program is packedwith heart, but [CEO Amit] Kleinbergerused his head when he chose MDA.Menchies senior management teamdidnt have a personal connection withmuscular dystrophy. No one had astricken daughter or son, or an ailing spouse or parent with Lou Gehrigs A partnership betweenDisease -- perhaps the most well known form of muscular dystrophy. a for-profit andWith no clear choice, Kleinberger treated the processlike a hiring and interviewed three charities. a non-profit for mutual benefit"MDA was very professional," he said. "They understood our businessand what we were trying to accomplish. After meeting with them, we allbelieved that MDA had tremendous potential to do good in the world."
Seven Types of Cause Marketing Campaigns Digital Use websites, social media sites, and cell phones to collect donations or help increase the visibility of the cause
Digital Example : charity: water Rubicon Property, a real estate brokerage firm, hosted a cause marketing campaign called “Get Dirty” in celebration of World Water Day on March 22nd. Rubicon asked participants to take a picture of dirty water in a glass or bottle and share it via social A partnership between media in exchange for a $1 a for-profit and donation to charity: water up to a maximum of $5,000. All images a non-profit appeared on the firm’s ‘Get Dirty’ Pinterest Board. for mutual benefit
Seven Types of Cause Marketing Campaigns Message Focused Use business resources to share a specific cause-focused message rather than collecting donations
Message Focused Example: Liberty MutualTo encourage families to have conversations about A partnership between driving for seniors, Liberty Mutual partnered with a for-profit and iTNAmerica to create the National Conversation a non-profit Drive, which included opportunities for people to drive while wearing the Senior Simulator Suit. for mutual benefit
Seven Types of Cause Marketing Campaigns Licensing Company pays a fee to use the nonprofit’s brand on its’ products or advertising
Licensing Example: Yoplait’s Pink Lids For over a decade, Yoplait has used the “Save Lids Save Lives” campaign to drive revenue and goodwill. A partnership between Annual donation of $1.5 million and numerous a for-profit and accolades, including a non-profit copycat Dannon’s effort. for mutual benefit
Seven Types of Cause Marketing Campaigns Employee Engagement Employees donate time or money
Employee Engagement Example: Home Depot and KaBoom A partnership between a for-profit and Partnered on 1,000 Playgrounds in a non-profit which 1,000 Days, for mutualnearly 100,000 involved benefit Home Depot volunteers.
Seven Types of Cause Marketing Campaigns Events Collect donations or raise awareness through walks, Galas, etc.
Events Example: Revlon Run/Walk For Women A partnership between a for-profit and a non-profitSome events are so clearly associated with a particular company that they fit the cause for mutual benefit marketing definition. Revlon has raised more than $65 million to fight women’s cancers through the Run/Walk for Women.
Characteristics of a Successful Partnership1. ReciprocalSmart causemarketing effortshave the sametarget audience
Characteristics of a Successful Partnership 2. Communication Regular, effective and meaningful
Characteristics of a Successful Partnership3. Measurement Quantitative and Qualitative
The Key Question A partnership between a for-profit andWhat do you offer a non-profita cause marketing for mutual benefit partner?
Three Good Answers1. Your Brand A partnership between a for-profit and2. Your Audience a non-profit for mutual benefit3. Your Access
Your BrandRefers all the way back to differentiating among cattle.Now “brands” have value and equity of their own.Most succinct definition:The perception(s)that customers orprospects haveabout you.
Your Brand Do you feel the same about these two companies?
Finding Cause Marketing Partners 4 Steps 1. Identify Potential Partners 2. Research 3. Conduct an Initial Meeting 4. Propose
Identify Potential Partners Start with who you know already. Focus on companies that: 1. Sell a product you use 2. Think like you do; Similar cultures 3. Have been involved with a philanthropic cause before 4. Are local
Identify Potential Partners Focus on a category… • Who are the key players in the “green” category? • Who are the key players in the “animal welfare” category? Listen and look for nonprofits… What nonprofits are you seeing on TV, hearing on other radio, seeing in print?
Quick Note about Community Relations Directors Community Relations Directors may or may not have any interaction with the sales and/or marketing departments. A partnership between aDon’t assume their they will think for-profit and ‘marketing’ that community a non-profit is a good thing. involvement for mutual benefit
Questions for the 1st Corporate Meeting Handout #5 10 questions you can adapt to use in the first meeting
How nonprofits need to present themselves A partnership between a for-profit and MDA and non-profit a Menchie’s for mutual benefit A professional decision made with the head, not the heart.
Elements of a Proposal 1. The Fit between your organization and the business 2. A specific business goal that your organization is uniquely positioned to help the business accomplish 3. What your organization gives to the partnership, including key team members 4. What the business gives, including desired team members 5. Tactics and Timeline 6. Metrics
If They Say… We do not mix our charitable activities with marketing. Your Response: Cause marketing campaigns will help us in multiple ways, including freeing up staff time to focus on other important mission- related work.
If They Say… That sounds great, but how does this benefit my corporation? Your Response: 1. Lots of nonprofit examples. General Mills/Box Tops for Education. 19% growth annually for 15 years. Now a $1 billion+ campaign annually. 2. For media campaigns, Incite has completed more than 1,000 campaigns over the last decade. We have dozens of case studies in different categories available (Education, Environment, Health).
Incite Full service marketing firm specializing in cause, behavior change, and nonprofit marketing National scope, with offices in Los Angeles, New York, St. Louis, Austin, and Indianapolis
A few recommendations 1. Cause Marketing Forum; best overall site for information and resources 2. Edelman annual surveys 3. Joe Waters, whose blog is SelfishGiving.com and who is the author of Cause Marketing for Dummies.
Thank You Matt Scelza Director, Incite Los Angeles 818.238.6646 @CausesLA A partnership between firstname.lastname@example.org a for-profit and a non-profit for mutual benefit