CAUSE MARKETING WHAT IT IS. WHY IT WORKS.

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SOURCES FOR THIS PRESENTATION:

• 2009 PRWeek/Barley PR Cause Survey• IEG Sponsorship Report• 2008 Cone/Duke University Behavioral Cause Study• Past. Present. Future. The 25th Anniversary of Cause Marketing

by Cone Marketing.• 2010 PNC Wealth Survey

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WHAT IS CAUSE MARKETING?

• A partnership between a for-profit business and a non-profit charity or cause to market an image, product or service for mutual benefit.

• A strategic positioning and marketing tool that links a company or brand to a relevant social cause or issue, for mutual benefit.

 • An innovative way in which companies and nonprofits integrate

social and environmental issues into their brand’s DNA to generate bottom-line business and social benefits

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NEARLY 90% OF AMERICANS BELIEVE IT IS IMPORTANT FOR BUSINESS, GOVERNMENT AND NONPROFITS TO COLLABORATE TO SOLVE PRESSING SOCIAL AND ENVIRONMENTAL ISSUES.

CAUSE MARKETING BENEFITS BUSINESS.

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CAUSE MARKETING CREATES TRUSTED AND LASTING RELATIONSHIPS WITH DIVERSE STAKEHOLDERS THROUGH:

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•Grant making•Consumer and employee engagement•Operations•Policy •Marketing communications

IN A RECENT SURVEY, AMONG CORPORATE MARKETERS WITH CAUSE PROGRAMS:

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58% report an improvement in employee morale and retention as a result of these programs 72% report an enhanced brand reputation

IN 2009, 41% OF U.S. CONSUMERS BELIEVE COMPANIES CAN BEST IMPROVE BRAND PERCEPTIONS BY INCREASING THEIR CAUSE SPONSORSHIPS.

Surpassing sports and arts/cultural sponsorships as ways to boost consumer opinion for the first time ever

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CONSUMERS EXPECT IT …

In 2009, 91% of women polled said it was important for companies to support a cause, an increase from 86% in 2008 64% of consumers polled expected companies to align themselves with a cause

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• 74% of consumers say they purchased a brand because it supported a cause

• 75% of consumers would try a brand they normally wouldn’t because it supported a cause

 • 64% would pay more for a brand because it supports a

cause that is important to them.

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IN 2009 …

• 85% of consumers say it's acceptable for companies to involve a cause in their marketing, compared to 66% in 1983

• 79% of consumers would likely switch from one brand to another (of similar price and quality) if the other brand is associated with a good cause, compared to 66% in 1993.

• 38% of consumers have bought a product associated with a cause in the last 12 months compared to 20% in 1993.

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IN ADDITION:

• 72% have seen enhanced brand reputation• 70% have realized greater public relations results• 58% have seen improvement in employee morale and

retention• 52% have enhanced the relationship with target

demographics• 51% have seen an increase in donations/membership to the

nonprofit• 28% have realized an increase in sales/retail traffic to their

business

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MARKETERS AGREE. CAUSE WORKS.

“Corporations more and more want to align their philanthropy with their business model, with their core competencies. Companies want to be part of a solution. Corporate foundations are being more focused on giving that could potentially help the bottom line.”  Charles H. MooreExecutive Director Committee Encouraging Corporate Philanthropy 

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CAUSE MARKETING BENEFITS NONPROFITS.

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2010 TRENDS IN GIVING …

• 67% of people say the economy has impacted their involvement with charities

 • 37% of people say they have cut back on giving to all

charities

• 28% percent of wealthy Americans say the recession has caused them to cut back on the total amount of money they give to charity

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• While consumers struggle to maintain financial contributions to charities, corporate efforts can fill the gap

• Cause marketing crafts stories that inspire people to take action, presenting those stories in myriad forms and prompting people to take action in both store fronts and social fronts

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CAUSE MARKETING CAN FILL THE GAP …

• Easy ways for consumers to get involved• Separate from corporate foundations

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CAUSE MARKETING PROVIDES OUTLETS FOR CONSUMERS OF ALL FINANCIAL MEANS TO GIVE BACK.

“Companies that are just writing checks are withholding valuable participation from society.” Bob CorcoranPresident of the GE Foundation & Vice President, Corporate Citizenship at GE

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CAUSE MARKETING RESONATES WITH

MILLENNIALS.

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• 88% would be likely to switch from one brand to another (of similar price and quality) if the other brand is associated with a good cause

•  51% have bought a cause-related product or service in the last year

• 31% of corporate respondents with cause programs say leadership’s interest in an issue prompted the company to launch an effort

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MILLENNIALS, THOSE CURRENTLY BETWEEN THE AGES OF 18 AND 24, ARE THE MOST RECEPTIVE TO CAUSE MARKETING:

• 45% of millennials are more likely to donate money to the charity

• 36% of millennials are more likely to participate in the charity’s programs and events

• 32% of millennials are more likely to volunteer

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AFTER HEARING ABOUT CORPORATE-CHARITABLE PARTNERSHIPS:

EXAMPLES OF CAUSE MARKETING PROGRAMS.

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ABOUT SCHUMACHER CREATIVE:

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Based in St. Louis, Schumacher Creative is a boutique cause-marketing and public relations agency providing a range of creative marketing services for its clients. We help corporations and foundations craft their giving messages. We also assist non-profits with their strategic messaging and marketing campaigns.

•Brand marketing •Media relations •Special events•Internal communications •External communications •Strategic social media