Thursday, December 18, 2008

Cause-Related Marketing

Did you know that you can help to the save the environment, find a cure for breast cancer, and feed the hungry without contacting a single charity?

Welcome to the era of Cause-Related Marketing. This increasingly popular method involves the cooperative efforts of a for-profit business and a nonprofit organization, for the mutual benefit of getting consumers to make purchases and give to various causes.

Buying a product with the added benefit of helping a social cause is not a new phenomenon, and has actually existed in one form or another for decades. Silent auctions, bake sales and church raffles are prime examples of non-profit organizations selling goods to raise funds.

However the term “Cause-Related Marketing” has probably existed in earnest for about 25 years. According to a recent consumer behavior study conducted by
Cone & Duke University, Cause-Related Marketing can increase sales. In fact this study indicates that a shampoo brand experienced a 74% increase in purchases, when this brand was associated with a cause. Cone & Roper first completed a study about Cause-Related Marketing in 1993, which acknowledged consumer enthusiasm for this growing trend. And organizations like Ben & Jerry’s and The Body Shop have been trailblazers in this arena with their socially conscious brands and publicly recognized commitments to donate percentages of their profits to save the rainforest, decrease homelessness, and help local community improvement groups grow and thrive.

Ben Cohen, Jerry Greenfield and Anita Roddick all experienced extraordinary success by allowing their businesses to reflect their own socially conscious values, and by openly supporting and partnering with organizations that share their goals to make the world a better place.

Now it seems that many consumer goods giants are taking notice of this marketing trend, and making sure that they too stand for something other than just profits.

As for marketers who haven’t started exploring this trend, you may want to look for opportunities to align your brand with a complimentary cause. Give consumers a reason to be proud of your brand, and provide them with an opportunity to give back to their communities through your organization.
Being socially and environmentally responsible can translate into a more loyal consumer base and big profits. Just ask Ben & Jerry!

By Keri Glover



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