Cause Marketing Basics

39
1

description

introduction for non profits to cause marketing

Transcript of Cause Marketing Basics

Page 1: Cause Marketing Basics

1

Page 2: Cause Marketing Basics

2

Cause Marketing Basics

Page 3: Cause Marketing Basics

3

Agenda

• What, Why, When, Who & How effective• Where to start• Case studies• Lesson learned• The devil is in the detail• Resources

Page 4: Cause Marketing Basics

4

What, Why, When, Who, How

Page 5: Cause Marketing Basics

5

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.

Page 6: Cause Marketing Basics

6

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

Page 7: Cause Marketing Basics

7

Why Cause Marketing? A For Profit Perspective

• Generates increased sales• Develops customer loyalty• Differentiates the brand

from its competitors• Enhances the corporations

image

Page 8: Cause Marketing Basics

8

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

Page 9: Cause Marketing Basics

9

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

Page 10: Cause Marketing Basics

10

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

Page 11: Cause Marketing Basics

11

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

Page 12: Cause Marketing Basics

12

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.

Page 13: Cause Marketing Basics

13

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%

Page 14: Cause Marketing Basics

14

Questions

Page 15: Cause Marketing Basics

15

Where to Start

Page 16: Cause Marketing Basics

16

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?

Page 17: Cause Marketing Basics

17

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

Page 18: Cause Marketing Basics

18

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?

Page 19: Cause Marketing Basics

19

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?

Page 20: Cause Marketing Basics

20

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

Page 21: Cause Marketing Basics

21

Questions

Page 22: Cause Marketing Basics

22

Case Studies

Page 23: Cause Marketing Basics

23

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%.

Page 24: Cause Marketing Basics

24

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

Page 25: Cause Marketing Basics

25

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

Page 26: Cause Marketing Basics

26

Questions

Page 27: Cause Marketing Basics

27

Lessons Learned

Page 28: Cause Marketing Basics

28

Match Passions: Critical for Cause Marketing

Nonprofit

CorporationCause

Page 29: Cause Marketing Basics

29

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

Page 30: Cause Marketing Basics

30

The Devil Is in The Details

Page 31: Cause Marketing Basics

31

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.

Page 32: Cause Marketing Basics

32

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).

Page 33: Cause Marketing Basics

33

Measurement: A Different Set of Metrics

Corporation• Sales• Brand awareness• Media impressions• Survey participants• Public opinion polls

Page 34: Cause Marketing Basics

34

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

Page 35: Cause Marketing Basics

35

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

Page 36: Cause Marketing Basics

36

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

Page 37: Cause Marketing Basics

37

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

Page 38: Cause Marketing Basics

38

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

Page 39: Cause Marketing Basics

39

Questions