Cause Marketing

What is Cause Marketing?
•“A commercial activity by which businesses and charities or causes form a partnership with each other to market an image, product or service for mutual benefit.” Business in the Community, the leading British corporate social responsibility organization
•“A strategic positioning and marketing tool that links a company or brand to a relevant social cause or issue, for mutual benefit.”
Cause Marketing is Not:
•“Social marketing,” the use by nonprofit and public organizations of marketing techniques to impact societal behavior (e.g. stop smoking, don’t pollute, don’t use drugs, don’t drive drunk.)
Nor is it:
•“Corporate Philanthropy,” the giving (without expectation of direct corporate gain) of charitable financial and in-kind grants by companies or their corporate foundations.

History of Cause Marketing
One of the first "cause marketing" campaigns occurred in 1976 through a partnership between Marriott Corporation and the March of Dimes. Marriott’s objective was to generate highly cost-effective public relations and media coverage for the opening of their 200-acre family entertainment center, Marriott’s Great America in Santa Clara, CA. The March of Dimes' objective was to greatly increase fundraising while motivating the collection of pledges by the program’s deadline. The promotion was conducted simultaneously in 67 cities throughout the Western United States. It exceeded all goals to become the most successful promotion in the history of Chapters West of the March of Dimes, while providing hundreds of thousands of dollars in free publicity and stimulated the record-breaking opening of the Marriott entertainment complex.
The program was conceived and directed by Bruce Burtch, who went on to become a nationally-recognized catalyst for cause marketing programs. Indeed, Bruce is credited with coining the phrase, "Do Well by Doing Good", which was his answer to the CEO of a major corporate foundation when asked what his goal in life was...in 1977.
Another of the first examples of a "cause-related marketing" campaign was initiated in 1979 by Rosica, Mulhern & Associates for Famous Amos cookies . In this campaign, Wally Amos become the National Spokesperson for the Literacy Volunteers of America. According to the organization, Wally has alerted more people to the illiteracy problem than any other person in history. This strategic cause-marketing tie-in helped to tell the Famous Amos Cookie story while maintaining visibility and is responsible for many new and expanded literacy programs. This case study is now used in university classrooms nationwide as an example of successful "cause-related marketing".
The creation of the term "cause-related marketing" is attributed to American Express, and it was coined to describe efforts to support locally based charitable causes in a way that also promoted business. The term was then used to describe the marketing campaign led by American Express in 1983 for the Statue of Liberty Restoration project. A penny for each use of the American Express card, and a dollar for each new card issued was given to the Statue of Liberty renovation program. Over a four-month period, $2 million was raised for Lady Liberty, transaction activity jumped 28 percent and the concept that doing good was good for business, was born. The terms "cause-related marketing" and "cause marketing" continued to grow in usage since that time. In more recent years the term has come to describe a wider variety of marketing initiatives based on the cooperative efforts of business and charitable causes.


There are six business benefits to cause marketing:
1.Cause-related marketing can directly enhance sponsor sales and brand.
2.Cause-related marketing is respected and accepted business practice.
3.Cause-related marketing can heighten customer loyalty.
4.Cause-related marketing can boost a company's public image and helps distinguish it from the competition. I would add that it can also give corporate PR officers a new story to tell.
5.Cause-related marketing can help build employee morale and loyalty.
6.Cause-related marketing can improve employee productivity, skills and teamwork
Types of Cause marketing
Cause marketing can take on many forms, including:
•Product, service, or transaction specific
•Promotion of a common message
•Product licensing, endorsements, and certifications
•Local partnerships
•Employee service programs

CAUSE MARKETING TOOLS

There are 7P’s Cause Marketing Practises

Cause-marketing 7 P’s follow into three major categories: products, promotions, and programs

Products Cause-marketing products are sales driven and transactional based. This form of cause marketing is linked to sales of product and generates revenue and awareness for a non-profit and its cause. The products can be directly tied to a non-profit’s brand through a percentage of sales going to a cause or by facilitating giving at point of sale.
•Product Purchases: Doing Good by Buying Goods
•Purchase Plus: Facilitating Giving
•Products License: Using Non-profit logos, Brand Identities and Assets
Promotions Cause marketing issue promotions involve businesses supporting a non-profit cause by using their brand, marketing, and promotional resources to actively engage in raising awareness of a non-profit cause.
•Promotions: Co-branding through issue promotion and awareness
•Promotional Events: Co-branding for active engagement and awareness
Programs This area of cause-marketing practices is one of the deepest forms of support. A specific program or cause message aimed at having an impact on or changing behavior and attitude is the focus of this cause-marketing support.
•Program: Co-branding to create awareness and change attitudes through program collaborations
•Public/Social Marketing: Encourage attitude and behavioural change