GWU - NFP & Cause Branding

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    NOT-FOR-PROFIT &CAUSE BRANDING

    Professor Kevin Lane KellerTuck School of Business

    Dartmouth College

    George Washington UniversityMay 1, 2009

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    Social MarketingIssues & Objectives

    Marketing for Non-Profits Address causeSustain businessSatisfy constituents

    Marketing with Non-Profits (CauseMarketing)

    Support causeBuild brand equityDevelop stronger customer loyalty

    Energize employees

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    Non-Profit Branding

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    Nonprofit Branding IssuesMust apply branding concepts justlike any business

    Brand strategy and planningBrand programs and activitiesBrand performance measurement andassessment

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    Four Key

    Nonprofit Branding IssuesIdentification of clear, relevantpositioningUse of all available brand-buildingtools and activitiesEstablishment of appropriateconstituent relationships

    Assessment of brand strength andmarketing effectiveness

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    PositioningMust identify clear, relevantpositioningBrand salience is criticalfoundation

    Depth & breadth of brand awareness

    Need to establish distinct,compelling points-of-parity &points-of-difference

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    Brand-BuildingMust use all available brand-building tools and activities

    Short-cuts are especially criticalBrand elements (brand names, logos,slogans, etc.)

    Secondary associations (other people,places, things, etc.)Power of online & off-line PR &word-of-mouth

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    Constituent RelationshipsEstablishment of appropriateconstituent relationships

    Understand the proper nature of therelationship

    Adopt optimal frequency, content, and

    manner of contacts

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    Self-AssessmentMust assess brand strength andmarketing effectivenessConduct formal or informalmarketing researchRespect and adopt as much aspossible best practice branding &marketing

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    Cause Marketing

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    Cause Marketing The process of formulating andimplementing marketing activities

    that are characterized by an offer fromthe firm to contribute a specifiedamount to a designated cause when customers engage in revenue-

    providing exchanges that satisfyorganizational and individualobjectives ."

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    Benefits of Cause MarketingImproving social welfare ( win-win )Creating differentiated brand positionsBuilding strong bonds with consumersEnhancing company s public imageCreating reservoir of goodwill

    Boosting employee moraleDriving sales

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    Five Examples of

    Notable Cause ProgramsThe Avon Breast Cancer Crusade

    Ronald McDonald House CharitiesTesco - Computers for SchoolsBritish Airways - Change For Good

    (Product) Red

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    The Avon Breast Cancer

    CrusadeFounded in 1993 , the Avon Breast Cancer Crusade is a U .S.initiative of Avon Products, Inc.Its mission has been to provide women, particularly those who

    are medically underserved, with direct access to breast cancereducation and early detection screening services : mammogramsand clinical breast exams.In the U .S., Avon is the largest corporate supporter of thebreast cancer cause with some $ 100 million generated since1993 .The Crusade raises funds to accomplish this mission in twoways :

    Through the sale of special Crusade fundraising (pink ribbon)products by Avon's nearly 500 ,000 Independent SalesRepresentativesThrough the Avon Breast Cancer 3- days, a series of three -day, 6 0 mile fundraising walks

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    Ronald McDonald House Charities

    Ronald McDonald House Charities provides comfort and care to children and their families by supporting

    Ronald McDonald Houses in communities around theworld and by making grants to other not -for-profit organizations whose programs help children in need.Ronald McDonald House Charities has a network of over 174 Local Charities serving in 3 2 countries.McDonald's Corporation is committed to givingsomething back to the community by supportingRMHC initiatives

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    Tesco - Computers for SchoolsBritish supermarket chain Tesco s Computers for Schools program,started in 199 2, is the best -known cause related marketing campaignin the U .K., with aided awareness levels near 50 percent.Customers receive vouchers from Tesco for every 10 spent, which

    they can donate to the school of their choosing. The chosen schoolexchanges the vouchers for new computer equipment. Parent -teacher associations and school governors joined together tomaximize voucher collection, which further enhances the communityinvolvement in the program.To strengthen the connection between the Computers for Schoolsprogram and the Tesco brand, the company integrated the programinto advertising for its in -store Every little helps campaign , whichsought to enhance the customer experience with such improvementsas wider aisles, baby changing facilities, and shorter checkout lines.Tesco capitalized on the link between its brand and the Computersfor Schools program in 1998 , when the company began sellingcomputer hardware. Since the program began, Tesco Computers forSchools has delivered almost $ 90 million worth of computerequipment to schools in the U .K

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    British Airways - Change For GoodBritish Airways partnered with UN ICEF and developed a causemarketing campaign called Change For Good, where travelers onBritish Airways flights are encouraged to donate leftover foreigncurrency from their travels. Since coins in particular are difficult toexchange at banks and currency exchanges, the program targets thisloose change.The scheme is simple: passengers deposit their surplus currency inenvelopes provided by British Airways, which collects the deposits anddonates them directly to UN ICEF .British Airways advertises its program during and in - flight video, on the

    backs of seat cards, and with in - flight announcements.The company also developed a television advertisement that featured achild thanking British Airways for its contribution to UN ICEF works.Since Change for Good can be directly targeted to passengers and canproduce immediate results, it does not require extensive advertising orpromotion and therefore is a highly cost -efficient cause marketingcampaigns .

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    What Transfers from the Cause?:

    Three Factor Model Awareness & Knowledge of theCause

    Any associated non -profit organization?

    Relevance & Meaningfulness ofCause

    Need for local community activities?

    Transferability of the CauseRewards to improve affinity or fit to brand?

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    How Should You

    Brand Cause Activities?Self-brand (create own cause)

    Ronald McDonald House Charities

    LensCrafters The Gift of SightWal Mart Good. Works.

    Co-brand (link to existingcause)

    Avon Breast Cancer CrusadeImportant Factors

    Goals

    Resource Commitment and Focus

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    What Transfers from the Cause?:Brand Resonance Model

    Model is based on the premise that The power of the brand is in the minds of

    customersCustomers must have the right experiences tocreate the right brand knowledge

    Building a strong brand involves aseries of steps as part of a brandingladder

    A strong brand is also characterized bya logically constructed set of brand

    building blocks.

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    BRAND RESONANCE PYRAMID

    RELATIONSHIPS:What about you & me?

    RESPONSE:What about you?

    MEANING:What are you?

    IDENTITY:Who are you?

    Intense, Active Loyalty

    Positive, AccessibleReactions

    Points-of-Parity& Difference

    Deep, BroadBrand

    Awareness

    Resonance

    Judgments Feelings

    Performance Imagery

    Salience

    Stages of BrandDevelopment

    BrandingObjective atEach Stage

    1

    2

    3

    4

    Building Blocks

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    Applying the CBBE

    Resonance Model to CausesBrand Imagery

    User ProfilesPersonality and Values

    Brand FeelingsSelf -Respect

    Social ApprovalBrand Resonance

    Community or Social Affiliation Active Engagement

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    Cause Marketing Effects on Resonance

    LOYALTYATTACHMENTCOMMUNITYENGAGEMENT

    QUALITYCREDIBILITYCONSIDERATIONSUPERIORITY

    WARMTH

    FUNEXCITEMENTSECURITYSOCIAL APPROVALSELF-RESPECT

    CATEGORY IDENTIFICATIONNEEDS SATISFIED

    PRIMARY CHARACTERISTICS &SECONDARY FEATURES

    PRODUCT RELIABILITY,DURABILITY & SERVICEABILITYSERVICE EFFECTIVENESS,

    EFFICIENCY, & EMPATHYSTYLE AND DESIGNPRICE

    USER PROFILESPURCHASE & USAGE

    SITUATIONSPERSONALITY &

    VALUESHISTORY, HERITAGE,

    & EXPERIENCES

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    SummaryNon-profit branding and causemarketing are areas of increasedimportance

    Applying modern branding andmarketing concepts, models andtools can help pursuits in bothareas