Sunday, June 7, 2009

Cause Marketing

Cause Marketing: Examples, Discussion and Stats
August 26, 2008 at 6:14 pm ·

Haagan Dazs have created a cause marketing campaign to help endangered bees.

Bees are an endangered species and also a vital part of our ecology. Did you know that we rely on bees for one third of our food supply?

They have a pretty little micro-site up at promoting the fact that honey bees are in danger and that you can help them help the bees by buying their “Bee-Dependent” flavours.

Through purchasing one of their “Bee-Dependent” flavours Haagan Daaz will contribute funds to help save the bees! The site is fun to use and has a download-able lesson plan. I think this gives it some authenticity and extends the campaign further than it being just a branding exercise.

The site has a viral mechanism – send a bee – where you can design your own bee avatar and send an e-card with a message to a friend.

They also have a bee shop where you can purchase merchandise and a percentage goes towards helping the bees.

I have written a bit on this blog outlining the benefits of cause marketing for brands. You can find some more ranting about cause marketing here, and some other examples of campaigns here: Nokia’s N96 Campaign and Ben and Jerry’s Whirrld Peace Campiagn

According to research:

“KANSAS CITY (PR WEB) October 23, 2007 – The 2007 PR Week / Barkley Cause Survey reveals that philanthropic activities can drive business success. In fact, 72% of consumers say that they have purchased a brand because it supports a cause they believe in. Furthermore, corporate respondents say they see positive PR (65.3%), an increase in sales/retail traffic (26.7%) and an enhanced relationship with their target demographic (52%), as a result of their cause marketing efforts.”

Cause Marketing is not new. It began in the 1980’s when American Express kicked off a campaign whereby every time someone used one of their credit cards they would donate money to the Statue of Liberty fund (also their icon image – NB a well selected charity in line with their brand.)

Stats prove it…this is really where it’s at. Help the world – help your brand make money – and help consumers feel good about themselves. It really is a win – win!

Here is a list from 2004 listing many other examples of cause marketing and stats from as far back as the 80’s.

If you are interested in executing these types of campaigns for your business check out the Cause Marketing Forum, Market Watch also a very good post on the subject, and perhaps this article “Cause Marketing Tps: Boost Business by Giving Back” aimed at small businesses may help.

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Cause Partnerships
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Cause Marketing The New Corporate–Nonprofit Engagement

Corporations have long been involved in supporting community, but when
the first cause-marketing programs were successfully implemented, it signaled a
dramatic shift in nonprofit–for-profit relationships: one that recognized corporate
community support could be positioned at the intersection of business objectives
and societal needs.

Cause marketing was initiated over 25 years ago. At the time many nonprofit
professionals viewed it as a fledgling idea, one that should not be considered part
of any serious fund development or nonprofit program. As well-constructed programs reaped benefits for companies and nonprofits alike, the number of programs continued to grow. Now more than two decades later, cause marketing has evolved and developed into a firmly established practice, a new way for corporations and nonprofits to achieve significant bottom-line results and community impact.

Cause Marketing Emergedgtl
Did you know cause-related marketing promotions can increase your sales as much as 74%*? Nothing builds trust with your brand or service like a connection with worthy causes. You show you stand for more than profits, and the message resonates with your target audience.

We’re an interactive agency specializing in Cause Marketing using online social and viral media. Our cost-effective, innovative campaigns will connect you with non-profit charitable causes, encouraging your most valuable audiences to participate. Using the power of social media, we’ll help spread the word and show the impact of your campaign through the web.

Contact us to discuss ideas for your next Cause Marketing campaign, or to strategize on how to make Cause Marketing part of your online marketing plan.

*2008 study by Cone, Inc. and Duke University’s Fuqua School of Business.

Cause marketing: Altruism or greed?

June 4th, 2009
( -- Companies that join with social causes to sell products not only enhance their image but also improve their bottom line, say University of Michigan researchers.

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We bring your cause marketing campaigns to life.

"Cause marketing, in which firms donate part of the proceeds from sales of certain products to a specified cause, is now a strategy adopted by hundreds of firms to increase sales for a wide variety of products, from coffee to cars," said Aradhna Krishna, the Winkelman Professor of Retail Marketing at Michigan's Ross School of Business. "But it is often associated with price increases, as well."
A few well-known examples of cause marketing include Project Red, which encompasses several companies such as the Gap, Motorola, Apple, Converse, Dell, Microsoft, American Express and others to raise money for the Global Fund to fight AIDS, tuberculosis and malaria; 3M's Post-It Super Sticky Notes imprinted with pink ribbons to help fund cancer research and treatment; and Snapple's bottled water sales to help build playgrounds in poor communities.

In a new study forthcoming in Management Science, Krishna and Uday Rajan, an associate professor of finance at Ross, found that cause marketing can increase sales—but can also raise prices—of the cause-related product, as well as of other products that the company sells.

One underlying reason for the price increase that Krishna and Rajan identify is the additional benefit that consumers get from buying a cause-related product. Consumers feel good about the firm selling the product, and also about themselves when they purchase such a product. Further, consumers can even feel good about buying a different product from the firm, one that is not related to a cause.

It's this spillover effect to a company's other products that can make cause marketing worthwhile, the researchers say. In fact, even if a firm is unable to increase the price of a cause-related product enough to compensate for the donated money or if it simply ties a low-selling product to cause marketing, it can still increase its profits—as long as consumers feel good about buying the company's other products.

Moreover, firms that raise prices on both a cause-related product and other non-cause products earn higher profits than if they don't participate in cause marketing at all. In addition, companies will never place their entire portfolio or product line in a social cause campaign.

"Firms can use cause marketing to increase prices and profits, but should be aware of the implications of placing different products on cause marketing," Rajan said. "For public policy officials and consumers who may believe that cause-marketing firms are more caring firms and are genuinely interested in helping others, it may be insightful to understand that cause marketing also allows firms to increase their prices and profits."

Provided by University of Michigan

Cause Marketing - Moving to Win-Win-Win (NAMA 2009)

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