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Cause Marketing Basics

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Peggy Bronn
Peggy Bronn
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Cause Marketing Basics

  1. 1. 1
  2. 2. Cause Marketing Basics 2
  3. 3. Agenda • What, Why, When, Who & How effective • Where to start • Case studies • Lesson learned • The devil is in the detail • Resources 3
  4. 4. What, Why, When, Who, How 4
  5. 5. Cause Marketing vs Sponsorship • Cause-related sponsorship is a strategic positioning and marketing tool that links a company or brand to a relevant social cause or issue for mutual benefit. • According to IEG, $1.55 billion in 2009, a 2% increase over 2008. 5
  6. 6. Why Cause Marketing? A Nonprofit Perspective • Generates unrestricted funding for the organization • Increases visibility of the cause or nonprofit’s message • In-kind donations • Provides expertise in marketing, strategy and other experience • Access to the corporation’s network of employees as volunteers • Introduction to the corporation’s suppliers, distributors and other contacts 6
  7. 7. Why Cause Marketing? A For Profit Perspective • Generates increased sales • Develops customer loyalty • Differentiates the brand from its competitors • Enhances the corporations image 7
  8. 8. Why Cause Marketing? The Halo Effect • 85% of Americans have a more positive image of a product or company when it supports a cause • 79% would likely switch from one brand to another if the other brand is associated with a good cause • 79% want to work for a company that cares how it impacts a society Source: Cone Research 8
  9. 9. Why Cause Marketing? The Female Factor • 81% of women are finding it more difficult to give to causes in a worsening economy. • 69% of women look to companies to help them DO GOOD in difficult times. • 80% of women concerned companies will cut back on their GOOD support. Source: Self Magazine 2009 • 82% of women agree that “during a recession it’s still important for brands and companies to set aside money for a good cause or purpose.” • 72% agree that “if a company has to cut back costs during a recession, it should not stop giving to good causes.” Source: Edelman GoodPurpose Report 2008 9
  10. 10. Why Cause Marketing? The Importance of Gen Y Total Gen Y Likely to switch brand with 79% 88% cause Have purchased product or 38% 51 % service associated with a cause (last 12 months) Want to see a percentage of 28% 41% purchase donated to a charity Source: Cone Research 10
  11. 11. When Did Cause Marketing Start? • In 1983, each time the American Express card was used 1 penny donated to renovate Statue of Liberty $1.7 million raise, 28% increase in card usage 11
  12. 12. How Effective Is Cause Marketing? • In 1997, Coca-Cola donated 15 cents to MADD for every case of Coke bought in a 6- week promotion in more than 400 Wal-Mart stores. Coke sales in these stores increased 490% during the promotion. 12
  13. 13. How Effective Is Cause Marketing? • The Calphalon Corporation co-branded several of its poorly-selling pans with the Share Our Strength name and logo and donated $5 to the nonprofit for every such pan sold. Sales of these pans increased 250% 13
  14. 14. Questions 14
  15. 15. Where to Start 15
  16. 16. Assess Your Readiness • Who is the internal team? • How does the board need to be involved? • Do you have a business friendly environment? • What is the team’s knowledge level about cause marketing? • Do you need training? Where will you get? • What assets do you have? 16
  17. 17. Know How and Why a Corporation Chooses a Cause • Increase sales • Increasing customer loyalty • Differentiate the corporation/brand • Increase access to markets • Enhance corporate/brand reputation by positioning it as a responsible, caring company/brand • Enhance employee recruitment and retention • Expand opportunities for employees to practice leadership and management 17
  18. 18. Understand Your Value Proposition • Determine which assets/capabilities that may be of value to corporations? – Do you have an excellent reputation and powerful mission? – Can you provide recognition, endorsements or awards? – Can you provide access to prospective customers to the corporation? – Do you have access to programs, projects and organizational expertise? – Can you distribute products, such as books or pamphlets for use as incentives or giveaways? 18
  19. 19. Getting Inside the Head of a Corporation Remember its about them • Who do they target? • Are any products/services getting a special marketing push? • About what causes are they passionate? • Do they have a geographic focus? • Do they have a preference in terms of the size organization with whom they work? 19
  20. 20. How to Find a Partner: Critical for Cause Marketing • Passion alignment • Match target markets • Product service fits • Geographic focus • Organization size • Research – News – Annual reports – Company websites – Lists of socially responsible companies 20
  21. 21. Questions 21
  22. 22. Case Studies 22
  23. 23. Global Public-Private Partnership for Handwashing With Soap • Hispanics were an underserved market by P&G • Hispanic women are more likely to die from breast cancer • P&G brought screening to Texas supermarkets • Tie-ins with local hospitals assured that women with suspicious films got follow-up care • Expanded to Florida, Los Angeles, New York and Puerto Rico • Exceeded P&G's payout goals by 20%. 23
  24. 24. Dell and Goodwill Team Up on Computer Recycling • Goodwill Industries of Pittsburgh and Dell introduced Reconnect Pittsburgh, a free drop-off program for recycling of unwanted computers • Responsible recycling or reuse of computer equipment • The goal of the program is to divert more than two million pounds of used computers and computer equipment from landfills over one year 24
  25. 25. Build-A-Bear Workshops and the World Wildlife Fund • Build-A-Bear Workshop births a co-branded giraffe with World Wildlife Fund (WWF) • It donates $1 to WWF for each giraffe sold • The weekend of its arrival Build a Bear double the donation to WWF from $1 to $2 • The giraffe is the sixth in a series of stuffed animals that have helped to support WWF 25
  26. 26. Questions 26
  27. 27. Lessons Learned 27
  28. 28. Match Passions: Critical for Cause Marketing Nonprofit Cause Corporation 28
  29. 29. Lessons Learned • Match ideals and passions • Make the program meaningful • Seek out non competing partners • Get to know each other • Be transparent and accountable • Determine who does what • Be flexible • Celebrate success 29
  30. 30. The Devil Is in The Details 30
  31. 31. Pick a Partner Wisely: Critical for Cause Marketing • Does your mission match the goals of the corporation? • Does the corporation have a solid reputation? • Does the corporation have a tradition of philanthropy or is this their first initiative? • Look beyond the obvious benefits of money, business expertise and volunteers. • Acknowledge the importance of chemistry. • Do due diligence to find out about the corporation’s goals and reputation. 31
  32. 32. The Fine Print BBB Standard 19 • Clearly disclose how the charity benefits from the sale of products or services (i.e., cause-related marketing) that state or imply that a charity will benefit from a consumer sale or transaction. Such promotions should disclose, at the point of solicitation: – the actual or anticipated portion of the purchase price that will benefit the charity (e.g., 5 cents will be contributed to abc charity for every xyz company product sold) – the duration of the campaign (e.g., the month of October), – any maximum or guaranteed minimum contribution amount (e.g., up to a maximum of $200,000). 32
  33. 33. Measurement: A Different Set of Metrics Corporation • Sales • Brand awareness • Media impressions • Survey participants • Public opinion polls 33
  34. 34. Manage the Relationship and Expectations: Critical for Cause Marketing • Mutual respect • Listen • Honest and open exchange of ideas and expectations • Continually updating each other • Determine what the relationship will look like • Determine how the relationship will run • Determine what results will be produced • Get support from senior management on both sides 34
  35. 35. Develop a Game Plan: Critical for Cause Marketing • Determine the scope of the relationship (paid, in-kind, volunteers) • Determine who and how marketing outreach is being done • Develop costs, timelines, roles and responsibilities 35
  36. 36. Get a Referral • Having the door opened for you will save time and energy • Use your Board, staff, friends, and volunteers • Do cold calling as a last resort 36
  37. 37. First Steps • Who’s on your team? • Who will do what? – asset evaluation – corporate research – writing the pitch – presents – corporate liaison – implementation team – evaluation – feedback 37
  38. 38. Resources • Cause Marketing Forum • Consumer Behavior Study Confirms Cause-Related Marketing Can Exponentially Increase Sales ews_view&newsId=20081001005317&newsLang=en • 12 steps to creating a cause marketing campaign • Standard 19 4b51-846c-92b29220113a • 38
  39. 39. Questions 39