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How Charities can Help You with Your Marketing
It’s called ‘cause related
marketing’ in popular parlance today but it actually began in 1982, with
an American Express campaign that helped restore the Statue of Liberty.
The campaign raised $1.7 million in funds and fuelled a 27 percent
increase in card usage.
With that level of success, there’s little wonder that marketing people
everywhere took note.
Since that time there have been many companies large and small that have
gained benefit from aligning themselves with a worthwhile cause.
Due, at least in part, to the overwhelming success of that American
Express campaign, the buzz surrounding cause related marketing has only
grown over the last two decades.
Time magazine called it ‘the fastest growing advertising trend’
with 85 percent of corporations and 65 percent of not-for-profit
organizations participating in cause related marketing, in one way or
another, during 1999.
Many pieces of research are indicating that a major shift from
traditional philanthropy to cause related marketing is in process
Just as importantly, there have been numerous reports indicating that
consumers are influenced positively towards purchasing products and
services due to a company’s alignment with a cause.
Research by consultants, Cavill & Co, indicates that values, ethics and
contribution to causes can influence consumer purchases. (Although,
clearly, the basic elements of the marketing mix must be in place, too).
Of course, this positive influence only occurs where people are aware of
your values, ethics and contribution to causes. So if you are
contributing right now, it’s best that you start telling people.
The research indicates that the most important influences on consumer
purchasing above all else, are good value for money, customer service,
personal recommendations and domestic ownership.
However, contributing to charitable or community causes, and the
company's values and ethics, are now rated as being of similar influence
to ready availability and decidedly more important than:
the size and success of the company,
media advertising,
loyalty/reward programs, and
sponsorship of major sporting events.
As with the American Express/Statue of Liberty partnership,
well-implemented and communicated cause related marketing programs have
the potential to bring enormous rewards to all parties.
Equally, a poorly executed campaign can backfire and damage the
reputation of the partner organizations and can harm the work of the
charity or cause involved.
Consumers are quick to identify any imbalance between the business and
the cause it supports. To get it right, there are probably five critical
success factors in a successful cause related marketing partnership,
namely:
planning and preparation: this covers the process of finding a
like-minded suitable partner, defining the scope of the partnership and
gaining commitment,
negotiating the partnership: this includes matching the aims and
objectives, auditing assets, defining the nature of the activity,
valuing the opportunity and assessing the risks,
the formal agreement: this covers some of the legal requirements and
codes and the responsibilities and liabilities for both parties,
managing the program: as with any marketing initiative, project
management aspects can be the make or break point, and
communicating the program: which includes getting the delicate
balance right between too much ‘hard sell’ and not enough ‘soft sell’
that is so important.
As the global marketplace becomes more competitive, companies must turn
to cause related marketing to build a long-lasting connection with
consumers.
In the past, price and quality were not always equal.
Today, fewer competitive differentiators distinguish products, and
consumers need to have an emotional connection with a brand in order to
remain loyal.
By associating your company with a relevant cause, you can allow
consumers to connect with your brand's ‘soul’ while working together to
create positive community change.
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