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Cause Marketing Basics
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Agenda
• What, Why, When, Who & How effective• Where to start• Case studies• Lesson learned• The devil is in the detail• Resources
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What, Why, When, Who, How
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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.
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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
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Why Cause Marketing? A For Profit Perspective
• Generates increased sales• Develops customer loyalty• Differentiates the brand
from its competitors• Enhances the corporations
image
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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
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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
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Why Cause Marketing? The Importance of Gen Y
Total Gen Y
Likely to switch brand with cause
79% 88%
Have purchased product or service associated with a cause (last 12 months)
38% 51 %
Want to see a percentage of purchase donated to a charity
28% 41%
Source: Cone Research
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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
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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.
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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%
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Questions
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Where to Start
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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?
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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
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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?
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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?
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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
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Questions
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Case Studies
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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%.
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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
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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
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Questions
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Lessons Learned
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Match Passions: Critical for Cause Marketing
Nonprofit
CorporationCause
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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
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The Devil Is in The Details
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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.
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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).
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Measurement: A Different Set of Metrics
Corporation• Sales• Brand awareness• Media impressions• Survey participants• Public opinion polls
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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
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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
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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
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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
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Resources
• Cause Marketing Forumhttp://www.causemarketingforum.com/
• Consumer Behavior Study Confirms Cause-Related Marketing Can Exponentially Increase Sales http://www.businesswire.com/portal/site/google/?ndmViewId=news_view&newsId=20081001005317&newsLang=en
• 12 steps to creating a cause marketing campaignhttp://blog.drakeco.com/2008_06_01_archive.html
• Standard 19 http://www.bbb.org/us/sitepage.aspx?id=ea10e84e-edc6-4b51-846c-92b29220113a
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Questions
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