2010 Cone Cause Evolution Study
EVEN AS CAUSE MARKETING GROWS, 83 PERCENT OF CONSUMERS STILL WANT TO SEE MORE
More than 9-in-10 moms want the opportunity to buy a product benefiting a cause
CONSUMER BEHAVIOR STUDY CONFIRMS CAUSE-RELATED MARKETING CAN EXPONENTIALLY INCREASE SALES
BOSTON (September 15, 2010) – Forty-one percent of Americans say they have purchased a product in the past year because it was associated with a social or environmental cause (41%), a two-fold increase since Cone first began measuring in 1993 (20%). But even as their purchasing power grows, consumer appetite for socially conscious shopping has yet to be satiated. A full 83 percent of consumers want more of the products, services and retailers they use to benefit causes, according to the new 2010 Cone Cause Evolution Study, the nation’s only 17-year benchmark of cause marketing attitudes and behaviors.
Recession Didn’t Alter Expectations
The nation’s ongoing economic woes have not deterred Americans’ social sentiment, nor their expectations that companies will benefit society. Eighty-one percent said companies should financially support causes at the same level or higher during an economic downturn. It appears business rose to this challenge – nearly two-thirds (64%) of consumers believe companies responded well to social and environmental issues during the recession.
Americans’ enthusiasm for cause marketing also emerged from the turmoil fully intact and continues to strongly influence their purchase decisions:
88% say it is acceptable for companies to involve a cause or issue in their marketing;
85% have a more positive image of a product or company when it supports a cause they care about; and,
80% are likely to switch brands, similar in price and quality, to one that supports a cause.
Not only are consumers willing to switch among similar brands, they are also willing to step outside their comfort zones. When it supports a cause:
61% of Americans say they would be willing to try a new brand or one unfamiliar to them;
46% would try a generic or private-label brand; and,
Nearly one-in-five consumers (19%) would be willing to purchase a more expensive brand.
“When price and quality are equal, we know most consumers will choose the product benefiting the cause,” explains Alison DaSilva, executive vice president at Cone. “But cause alignment can have an even bigger influence on consumer choice, pushing them to experiment with something different and unfamiliar. Cause branding is a prime opportunity for companies to extend beyond their traditional market and increase exposure to potential new consumers.”
Moms and Millennials: Most Cause-Conscious Consumers
By all measures, moms lead the way as the demographic most amenable to cause marketing. In fact, moms virtually demand the opportunity to shop with a cause in mind. A staggering 95 percent find cause marketing acceptable (vs. 88% average), and 92 percent want to buy a product supporting a cause (vs. 81% average). They are also more likely to switch brands (93% vs. 80% average), so it is hardly surprising that moms purchased more cause-related products in the past year than any other demographic (61% vs. 41% average).
Millennials (18-24 years old) are close on moms’ heels as they also shop with an eye toward the greater good. Ninety-four percent find cause marketing acceptable (vs. 88% average) and more than half (53%) have bought a product benefiting a cause this year (vs. 41% average).
A company’s support of social or environmental issues is also likely to influence this group’s decisions outside the store, including where to work (87% vs. 69% average) and where to invest (79% vs. 59% average).
Engage Consumers Beyond the Vote
At a time when consumer voting campaigns have emerged as the cause marketing tactic du jour, a majority (61%) of consumers say they would prefer to see a company make a long-term commitment to a focused issue rather than determining themselves which issue the company supports in the short-term. This does not suggest they do not want to be engaged, however. Buying a cause-related product (81%) continues to be the leading way consumers want to support a company’s efforts, but they also seek other higher-touch opportunities, such as lending their voices through ideas or feedback (75%) and volunteerism (72%).
“Putting the charitable dollars in the hands of consumers has, no doubt, been the standout cause strategy of the last two years. But although these campaigns are notable, they are not building long-lasting brand equity,” explains DaSilva. “They are big and bold today, but in one year, or five or 10, they won’t have clearly defined what the company stands for, and it may be hard to gauge social impact. This will require greater focus and more meaningful consumer engagement beyond the click of a button.”
Dual-Role of Employees
Consumers are the primary audience for most companies’ cause branding programs, but businesses should be wary of overlooking employees as a key participant in their efforts. Sixty-nine percent of Americans consider a company’s social and environmental commitments when deciding where to work. The correlation does not end once they are employed. Employees who are involved in their company’s cause efforts are much more likely to feel a sense of pride and loyalty toward their employer:
93% say they are proud of their company’s values (vs. 68% for those who are not involved); and,
92% say they feel a strong sense of loyalty to their company (vs. 61% for those who are not involved).
Employees may translate their experiences and knowledge as participants to their role as front-line ambassadors for a company’s cause efforts. Seventy percent of consumers say a knowledgeable employee may drive their purchases or donations. And when consumers do not receive the details they need to make an informed cause-related purchase, whether through employees, on-pack messaging or other channels, 34 percent will either choose another brand or walk away.
Issues Stand Test of Time
Even as businesses face a set of complex new issues, consumers remain steadfast in their expectations of what companies should address. They continue to want companies to prioritize support of issues close to home, in local communities (46%) and in the U.S. (37%), but they are gradually recognizing the need for companies to address issues globally, as well (17%).
The leading causes consumers want companies to support include:
Economic development – 77%
Health and disease – 77%
Hunger – 76%
Education – 75%
Access to clean water – 74%
Disaster relief – 73%
Environment – 73%
Americans may feel some of these issues personally, but they also recognize the impact a company can have when it supports a business-aligned issue. They are equally likely to say that a company should consider supporting an issue that is important in the communities where it does business (91%), as well as one that is aligned with its business practices (91%).
“Cause branding is standing the test of time, but leadership companies must continue to innovate to ensure their programs offer an original consumer experience, tackle tough emerging issues and make bold new commitments,” says DaSilva. “Those that are most successful and meeting the competing needs of many stakeholders are aligning issues with the business for mutual benefit and integrating these efforts into a larger corporate responsibility strategy for maximum impact.”
http://www.coneinc.com/files/2010-Cone-Cause-Evolution-Study.pdf
Showing posts with label cause marketing. Show all posts
Showing posts with label cause marketing. Show all posts
Saturday, November 13, 2010
Thursday, July 16, 2009
Green Power: Buyer Beware
To Heck with Green
With consumers feeling blue, companies are dialing back on green marketing. In a survey of 72 companies by Duke University's Fuqua School of Business, chief marketing officers ranked environmental issues lowest on a list of five priorities over the coming 12 months. Even Wal-Mart (WMT), which has beaten the sustainability drum in recent years, is going easy. Green issues were mentioned in 12 of its press releases in the year through Sept. 11, compared with 29 during the same period last year. (Advertising Age)
—Edited by Harry Maurer & Cristina Linblad
http://www.businessweek.com/magazine/content/08_39/c4101newsyoun254243_page_2.htm
Green Power: Buyer Beware
Utilities are offering renewable options to customers for a fee—but most of the extra revenue is going to marketing
by Ben Elgin and Diana Holden
Business Week Online
Green Biz September 18, 2008, 5:00PM EST text size: TT
It's one of the latest ways big business claims to be curbing global warming: More than 750 utilities across the country now offer customers the chance to pay a premium on their electricity bills to generate "green power." But it turns out that, in many cases, most of the money goes for marketing costs, and little can be traced to the generation of additional renewable energy.
Lisa Baker of Atlanta jumped at the opportunity last summer to protect the environment when Georgia Power invited consumers to pay extra to "help bring more renewable power to Georgia." Paying the minimum annual premium of $54 "is equivalent to planting 125 trees or not driving 2,000 miles," the utility, a unit of giant Southern Co. (SO), boasts on its Web site. Baker, a 33-year-old freelance writer, joined more than 4,000 other customers who signed up for the Green Energy program. "I wanted [the utility] to know there's a market for renewable power," she says.
But public records show that more than 60% of the $239,000 spent during the second quarter of 2007, when Baker signed up, went to advertising and administration. "They are preying on people's good will," says Stephen Smith, executive director of the Southern Alliance for Clean Energy, an advocacy group in Knoxville.
Georgia Power says the 60% figure has now dropped to only 15% of overall costs. The company adds that much of the rest goes to purchases from a local landfill that generates methane from decomposing garbage.
But buying gas-powered electricity from the landfill doesn't appear to achieve any additional environmental benefit: The renewable gas-from-trash is now actually less expensive than conventional sources like coal. "Any utility would use the landfill gas [without customers' green premium]. It's a no-brainer," says Smith.
Georgia Power counters that electricity generated by landfill methane was more expensive than other power when the program began in 2006. In addition, the company says it aims to reduce the green premium by as much as 22%.
More than 600,000 U.S. households have signed up for utility-sponsored programs claiming that they reduce greenhouse gas emissions that contribute to climate change. That's nearly double the figure from 2004, according to the federally funded National Renewable Energy Laboratory in Golden, Colo.
But given their eagerness for environmental bragging rights, many of the power companies are strangely reluctant to explain with specificity how extra payments from consumers produce green energy that wouldn't be generated otherwise.
"ALL ABOUT PR"
In July the Florida Public Service Commission pulled the plug on Florida Power & Light's green energy program after an audit found that more than half of the premiums collected went to marketing and administration instead of renewable energy purchases. The program, known as Sunshine Energy, had more than 38,000 participants paying an additional $9.75 a month. In a regulatory hearing in July, Public Service Commissioner Nathan Skop described the program as "all about PR and of little substance."
Florida Power & Light staunchly defends the program, arguing that billboards, newspaper ads, and bill inserts were needed to alert consumers. The utility says that the rest of the money went to new solar-power installations and the purchase of renewable energy credits. RECs are certificates indicating that a green power developer, such as a wind farm, has generated environmentally friendly energy. Purchasers of RECs take credit for funding the clean power. Florida Power & Light won't disclose, however, most of the sources that supplied RECs to its Sunshine Energy program, citing confidentiality obligations.
Utilities devoting only a modest slice of voluntary green premiums to renewable power generators is something of a pattern. Duke Energy's (DUK) GoGreen Power program in Indiana has signed up more than 1,100 customers, who pay a premium of at least $5 per month. According to Duke's marketing literature: "Purchase of GoGreen power ensures that a specified amount of electricity is produced from renewable sources." But records for 2007 reveal less than 18% of the premiums, or about $15,800, went to brokers to buy RECs; 48%, or $42,950, went to marketing the program.
Duke says that while it has had to spend significant amounts to recover GoGreen's start-up costs, the program has nevertheless already contributed to protecting the environment.
Elgin is a correspondent in BusinessWeek's Silicon Valley bureau . Holden is an intern in BusinessWeek's Atlanta bureau.
http://www.businessweek.com/magazine/content/08_39/b4101068119568.htm?chan=magazine+channel_what%27s+next
With consumers feeling blue, companies are dialing back on green marketing. In a survey of 72 companies by Duke University's Fuqua School of Business, chief marketing officers ranked environmental issues lowest on a list of five priorities over the coming 12 months. Even Wal-Mart (WMT), which has beaten the sustainability drum in recent years, is going easy. Green issues were mentioned in 12 of its press releases in the year through Sept. 11, compared with 29 during the same period last year. (Advertising Age)
—Edited by Harry Maurer & Cristina Linblad
http://www.businessweek.com/magazine/content/08_39/c4101newsyoun254243_page_2.htm
Green Power: Buyer Beware
Utilities are offering renewable options to customers for a fee—but most of the extra revenue is going to marketing
by Ben Elgin and Diana Holden
Business Week Online
Green Biz September 18, 2008, 5:00PM EST text size: TT
It's one of the latest ways big business claims to be curbing global warming: More than 750 utilities across the country now offer customers the chance to pay a premium on their electricity bills to generate "green power." But it turns out that, in many cases, most of the money goes for marketing costs, and little can be traced to the generation of additional renewable energy.
Lisa Baker of Atlanta jumped at the opportunity last summer to protect the environment when Georgia Power invited consumers to pay extra to "help bring more renewable power to Georgia." Paying the minimum annual premium of $54 "is equivalent to planting 125 trees or not driving 2,000 miles," the utility, a unit of giant Southern Co. (SO), boasts on its Web site. Baker, a 33-year-old freelance writer, joined more than 4,000 other customers who signed up for the Green Energy program. "I wanted [the utility] to know there's a market for renewable power," she says.
But public records show that more than 60% of the $239,000 spent during the second quarter of 2007, when Baker signed up, went to advertising and administration. "They are preying on people's good will," says Stephen Smith, executive director of the Southern Alliance for Clean Energy, an advocacy group in Knoxville.
Georgia Power says the 60% figure has now dropped to only 15% of overall costs. The company adds that much of the rest goes to purchases from a local landfill that generates methane from decomposing garbage.
But buying gas-powered electricity from the landfill doesn't appear to achieve any additional environmental benefit: The renewable gas-from-trash is now actually less expensive than conventional sources like coal. "Any utility would use the landfill gas [without customers' green premium]. It's a no-brainer," says Smith.
Georgia Power counters that electricity generated by landfill methane was more expensive than other power when the program began in 2006. In addition, the company says it aims to reduce the green premium by as much as 22%.
More than 600,000 U.S. households have signed up for utility-sponsored programs claiming that they reduce greenhouse gas emissions that contribute to climate change. That's nearly double the figure from 2004, according to the federally funded National Renewable Energy Laboratory in Golden, Colo.
But given their eagerness for environmental bragging rights, many of the power companies are strangely reluctant to explain with specificity how extra payments from consumers produce green energy that wouldn't be generated otherwise.
"ALL ABOUT PR"
In July the Florida Public Service Commission pulled the plug on Florida Power & Light's green energy program after an audit found that more than half of the premiums collected went to marketing and administration instead of renewable energy purchases. The program, known as Sunshine Energy, had more than 38,000 participants paying an additional $9.75 a month. In a regulatory hearing in July, Public Service Commissioner Nathan Skop described the program as "all about PR and of little substance."
Florida Power & Light staunchly defends the program, arguing that billboards, newspaper ads, and bill inserts were needed to alert consumers. The utility says that the rest of the money went to new solar-power installations and the purchase of renewable energy credits. RECs are certificates indicating that a green power developer, such as a wind farm, has generated environmentally friendly energy. Purchasers of RECs take credit for funding the clean power. Florida Power & Light won't disclose, however, most of the sources that supplied RECs to its Sunshine Energy program, citing confidentiality obligations.
Utilities devoting only a modest slice of voluntary green premiums to renewable power generators is something of a pattern. Duke Energy's (DUK) GoGreen Power program in Indiana has signed up more than 1,100 customers, who pay a premium of at least $5 per month. According to Duke's marketing literature: "Purchase of GoGreen power ensures that a specified amount of electricity is produced from renewable sources." But records for 2007 reveal less than 18% of the premiums, or about $15,800, went to brokers to buy RECs; 48%, or $42,950, went to marketing the program.
Duke says that while it has had to spend significant amounts to recover GoGreen's start-up costs, the program has nevertheless already contributed to protecting the environment.
Elgin is a correspondent in BusinessWeek's Silicon Valley bureau . Holden is an intern in BusinessWeek's Atlanta bureau.
http://www.businessweek.com/magazine/content/08_39/b4101068119568.htm?chan=magazine+channel_what%27s+next
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 http://helpthehoneybees.com/ 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.
Distribute Press Releases
Send PR to 100,000 Global Contacts. Free Account - No Contracts/Fees!
www.PRWeb.com
Green Branding
Brand innovation for the new consumer.
www.bbmg.com
Cause Partnerships
Customers Buy from Caring Companies cause + business = abundance
www.tlnpartnerships.com
http://jaxinteractive.com/2008/08/26/cause-marketing-example-hd-loves-hb/
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.
http://media.wiley.com/product_data/excerpt/09/04717175/0471717509.pdf
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.
http://cause.emergedgtl.com/?gclid=CMzA1IbA-JoCFRKAxgodCjYgdg
Cause marketing: Altruism or greed?
June 4th, 2009
(PhysOrg.com) -- 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.
Build Trust, Do Good. - cause.emergedgtl.com
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)
http://www.slideshare.net/DrakeCo/cause-marketing-moving-to-winwinwin-nama-2009
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 http://helpthehoneybees.com/ 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.
Distribute Press Releases
Send PR to 100,000 Global Contacts. Free Account - No Contracts/Fees!
www.PRWeb.com
Green Branding
Brand innovation for the new consumer.
www.bbmg.com
Cause Partnerships
Customers Buy from Caring Companies cause + business = abundance
www.tlnpartnerships.com
http://jaxinteractive.com/2008/08/26/cause-marketing-example-hd-loves-hb/
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.
http://media.wiley.com/product_data/excerpt/09/04717175/0471717509.pdf
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.
http://cause.emergedgtl.com/?gclid=CMzA1IbA-JoCFRKAxgodCjYgdg
Cause marketing: Altruism or greed?
June 4th, 2009
(PhysOrg.com) -- 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.
Build Trust, Do Good. - cause.emergedgtl.com
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)
Cause Marketing - Moving to Win-Win-Win (NAMA 2009)
View more OpenOffice presentations from Steve Drake.
http://www.slideshare.net/DrakeCo/cause-marketing-moving-to-winwinwin-nama-2009
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