Meaningful and Uncommon
         Cause Marketing

       Presented by Matt Scelza
      Director, Incite Los Angeles
Today’s Agenda




1.   Cause
     Marketing
2.   Your Nonprofit
Today’s Question




How are you
meaningful and
uncommon?
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 Marketing


From the NY State Attorney General,
spurred by some murky ads.
1. Clearly Describe the Cause Marketing Promotion
2. Allow Consumers to Easily Determine Donation
Amount
3. Be Transparent About What is Not Apparent
4. Ensure Transparency in Social Media
5. Tell the Public How Much Was Raised

Purposefully flexible to accommodate the
evolutionary nature of our industry.
Two thoughts on the Best Practices


Make sure consumers can
easily answer the question
- “If I take this action, how
much will go to charity?”


Corporations need to be
clear about what they
mean when they say “We
are 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
Why This Matters to Nonprofits
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 Industries




Consumers 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 or
All 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 Partner

From Joe Waters’ blog:
Menchie's pinup program is packed
with heart, but [CEO Amit] Kleinberger
used his head when he chose MDA.
Menchie's senior management team
didn't have a personal connection with
muscular dystrophy. No one had a
stricken daughter or son, or an ailing spouse or parent with Lou Gehrig's
                               A partnership between
Disease -- perhaps the most well known form of muscular dystrophy.

                                 a for-profit and
With no clear choice, Kleinberger treated the process
like a hiring and interviewed three charities.
                                 a non-profit
                                 for mutual benefit
"MDA was very professional," he said. "They understood our business
and what we were trying to accomplish. After meeting with them, we all
believed 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 Mutual




To 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-profit
Some 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 Partnership



1. Reciprocal

Smart cause
marketing efforts
have the same
target audience
Characteristics of a Successful Partnership


 2. Communication

 Regular, effective
  and meaningful
Characteristics of a Successful Partnership



3. Measurement

   Quantitative
   and
   Qualitative
The Key Question




                    A partnership between
                     a for-profit and
What do you offer
                     a non-profit
a cause marketing    for mutual benefit
  partner?
Three Good Answers




1. Your Brand        A partnership between
                      a for-profit and
2. Your Audience      a non-profit
                      for mutual benefit
3. Your Access
Your Brand



Refers 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 or
prospects have
about you.
Your Brand




             Do you feel
             the same about
             these two
             companies?
Your Brand
Your Brand


  Worksheet #1

  15 minutes in pairs
Your Audience



Worksheet #2

15 minutes
in pairs
Your Access




 Worksheet #3

 Quick quiz
The Second Key Question




    What do you want from a
     for-profit partner?
Good Answers




               1. Money

               2. Volunteers

               3. Visibility
The Best Answer




                  What the
                  for-profit
                  can offer
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
                  mscelza@inciteimpact.com

                a for-profit and
                a non-profit
                for mutual benefit

Meaningful and Uncommon Cause Marketing

  • 1.
    Meaningful and Uncommon Cause Marketing Presented by Matt Scelza Director, Incite Los Angeles
  • 2.
    Today’s Agenda 1. Cause Marketing 2. Your Nonprofit
  • 3.
    Today’s Question How areyou meaningful and uncommon?
  • 4.
    Definition of CauseMarketing Partnership between a for-profit and a non-profit for mutual benefit
  • 5.
    Definition of CauseMarketing Marketing is about consumer engagement. Causes engage consumers in meaningful and uncommon ways.
  • 6.
    Definition of CauseMarketing 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
  • 7.
    The Price Premiumof Engagement Brands that engage people emotionally can command prices as much as 20 to 200 percent higher than competitors
  • 8.
    The Evidence forCause 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
  • 9.
    Not Cause Marketing Donations Grants Sometimes: • Event Sponsorships • Cause-Created Companies
  • 10.
    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?
  • 11.
    Early Cause MarketingEfforts 1983 A partnership between a for-profit and Express American for a non-profit Statue of Liberty for mutual benefit
  • 12.
    Cause Marketing GoesMainstream in ’80s and ’90s Who knows who these two women are?
  • 13.
    Cause Marketing DoneWrong A partnership between a for-profit and a non-profit for mutual benefit
  • 14.
    Best Practices forTransparent Cause Marketing From the NY State Attorney General, spurred by some murky ads. 1. Clearly Describe the Cause Marketing Promotion 2. Allow Consumers to Easily Determine Donation Amount 3. Be Transparent About What is Not Apparent 4. Ensure Transparency in Social Media 5. Tell the Public How Much Was Raised Purposefully flexible to accommodate the evolutionary nature of our industry.
  • 15.
    Two thoughts onthe Best Practices Make sure consumers can easily answer the question - “If I take this action, how much will go to charity?” Corporations need to be clear about what they mean when they say “We are a proud sponsor of…”
  • 16.
    Top Cause MarketingIssues 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
  • 17.
    Why This Mattersto Nonprofits
  • 18.
    How Nonprofits Benefit Increases revenue, visibility and volunteers Gives you access to new audiences, including the corporation’s employees, suppliers, distributors, and customers
  • 19.
    Seven Types ofCause 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
  • 20.
    Action-Triggered Example: Bon-Tonand Goodwill Industries Consumers 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 or All 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.
  • 21.
    Seven Types ofCause Marketing Campaigns Point of Sale Cashier asks if you want to donate, or a sign displayed at the register encourages a donation
  • 22.
    Point of SaleExample: 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.
  • 23.
    Important Lesson fromMenchie’s: Think About Your Partner From Joe Waters’ blog: Menchie's pinup program is packed with heart, but [CEO Amit] Kleinberger used his head when he chose MDA. Menchie's senior management team didn't have a personal connection with muscular dystrophy. No one had a stricken daughter or son, or an ailing spouse or parent with Lou Gehrig's A partnership between Disease -- perhaps the most well known form of muscular dystrophy. a for-profit and With no clear choice, Kleinberger treated the process like a hiring and interviewed three charities. a non-profit for mutual benefit "MDA was very professional," he said. "They understood our business and what we were trying to accomplish. After meeting with them, we all believed that MDA had tremendous potential to do good in the world."
  • 24.
    Seven Types ofCause Marketing Campaigns Digital Use websites, social media sites, and cell phones to collect donations or help increase the visibility of the cause
  • 25.
    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
  • 26.
    Seven Types ofCause Marketing Campaigns Message Focused Use business resources to share a specific cause-focused message rather than collecting donations
  • 27.
    Message Focused Example:Liberty Mutual To 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
  • 28.
    Seven Types ofCause Marketing Campaigns Licensing Company pays a fee to use the nonprofit’s brand on its’ products or advertising
  • 29.
    Licensing Example: Yoplait’sPink 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
  • 30.
    Seven Types ofCause Marketing Campaigns Employee Engagement Employees donate time or money
  • 31.
    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.
  • 32.
    Seven Types ofCause Marketing Campaigns Events Collect donations or raise awareness through walks, Galas, etc.
  • 33.
    Events Example: RevlonRun/Walk For Women A partnership between a for-profit and a non-profit Some 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.
  • 34.
    Characteristics of aSuccessful Partnership 1. Reciprocal Smart cause marketing efforts have the same target audience
  • 35.
    Characteristics of aSuccessful Partnership 2. Communication Regular, effective and meaningful
  • 36.
    Characteristics of aSuccessful Partnership 3. Measurement Quantitative and Qualitative
  • 37.
    The Key Question A partnership between a for-profit and What do you offer a non-profit a cause marketing for mutual benefit partner?
  • 38.
    Three Good Answers 1.Your Brand A partnership between a for-profit and 2. Your Audience a non-profit for mutual benefit 3. Your Access
  • 39.
    Your Brand Refers allthe way back to differentiating among cattle. Now “brands” have value and equity of their own. Most succinct definition: The perception(s) that customers or prospects have about you.
  • 40.
    Your Brand Do you feel the same about these two companies?
  • 41.
  • 42.
    Your Brand Worksheet #1 15 minutes in pairs
  • 43.
  • 44.
    Your Access Worksheet#3 Quick quiz
  • 45.
    The Second KeyQuestion What do you want from a for-profit partner?
  • 46.
    Good Answers 1. Money 2. Volunteers 3. Visibility
  • 47.
    The Best Answer What the for-profit can offer
  • 48.
    Finding Cause MarketingPartners 4 Steps 1. Identify Potential Partners 2. Research 3. Conduct an Initial Meeting 4. Propose
  • 49.
    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
  • 50.
    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?
  • 51.
    Quick Note aboutCommunity 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
  • 52.
    Questions for the1st Corporate Meeting Handout #5 10 questions you can adapt to use in the first meeting
  • 53.
    How nonprofits needto 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.
  • 54.
    Elements of aProposal 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
  • 55.
    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.
  • 56.
    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).
  • 57.
    Incite Full servicemarketing firm specializing in cause, behavior change, and nonprofit marketing National scope, with offices in Los Angeles, New York, St. Louis, Austin, and Indianapolis
  • 58.
    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.
  • 59.
    Thank You Matt Scelza Director, Incite Los Angeles 818.238.6646 @CausesLA A partnership between mscelza@inciteimpact.com a for-profit and a non-profit for mutual benefit