Cause marketing is marketing done by a for-profit business that seeks to both increase profits and to better society in accordance with corporate social responsibility, such as by including activist messages in advertising.
A similar phrase, cause-related marketing, usually refers to a subset of cause marketing that involves the cooperative efforts of a for-profit business and a non-profit organization for mutual benefit. A high-profile form of cause-related marketing occurs at checkout counters when customers are asked to support a cause with a charitable donation. Cause marketing differs from corporate giving (philanthropy), as the latter generally involves a specific donation that is tax-deductible, while cause marketing is a promotional campaign not necessarily based on a donation.
This is a central aspect of cause related marketing, since it challenges the idea that cause marketing is efficient when there is an obvious fit between the for profit organization and the cause. Although it seems like a point on which researchers agree upon, some campaigns can actually perform very well without an obvious fit between the brand and the cause. Cause brand fit is a critical issue to address.
Secondary success factors in cause related marketing campaigns are examined with a particularly focus on gender and culture as major factors to take into account. The impact of cause marketing awareness in consumer behaviour and how brands should adjust their strategy belonging to the market will also be observed.
Cause-related advertising can have a powerful impact on customers’ purchasing behavior. Done well, this strategy can help brands:
- Stand out from the competition. Nearly 90% of Americans would switch to a cause-branded product, if pricing and quality were similar.
- Build goodwill and awareness. Seventy-seven percent of consumers feel more emotionally connected to and 70% are proud to be associated with a purpose-driven brand.
- Support the community. Nine in 10 Gen Zers feel companies need to address environmental and social issues.
Advantages
Cause marketing increases brand awareness and exposure for the nonprofit partner. Since non-profits typically have a limited budget for marketing, getting a small business or corporation to partner with them can help get information about their efforts and their cause out in front of consumers they might not otherwise reach. However, there are also huge benefits to the corporate partner.
- Improving their corporate image.
- Fulfilling the demand for corporate social responsibility.
- Increasing brand loyalty.
- Building a relationship with the community.
- Boosting employee morale.
- Standing out from the competition.
Cause Marketing Strategy
Choose a Cause that Aligns with Your Brand
Look for a cause that you and your employees believe in and that naturally fits with your brand identity and values. In other words, define cause-related marketing in your own terms.
Look Beyond Dollar Signs
Raising money is important, but so is offering time and expertise. In one survey, 64% of customers said giving money is not enough; brands should “integrate social good” into their business. Doing so raises awareness of both the cause and your brand. Find a non-financial strategy that ties in your brand’s concept of what cause-related marketing is.
Collaborate
If your definition of cause-related marketing includes supporting a nonprofit, work with that organization to create a mutually beneficial campaign.
Create a Call to Action
Successful cause marketing campaigns do more than showcase a brand’s commitment to social responsibility they inspire your audience to take action.
Use Multiple Media Channels
Dumb Ways to Die, a safety campaign from Metro Trains Melbourne, began with a funny, unforgettable song and added in social campaigns with video outtakes, dolls, and mobile games. User-generated content in the form of parodies took the message even further.
Types
Transactional Campaigns: A corporate donation triggered by a consumer action (e.g. sharing a message social media, making a purchase, etc.) and Non-Transactional Campaigns: A corporate donation to a cause such as in cause sponsorship is not contingent on an explicit action of the consumer.
Point of Sale Campaigns: A donation solicited by a company at the point of sale but made by the consumer (e.g. consumers are asked to round up their purchase or donate a dollar when they check out online or in-stores)
Message-Focused Campaigns: Business resources are used to share a cause-focused message. For example, a campaign that encourages behavior change (e.g. don’t text and drive), drives awareness about an important cause (e.g. talking with elderly parents about driving) or encourages consumer action (e.g. signing a petition to save whales from captivity).
Portion of Purchase: Businesses donate a portion of their sales to a nonprofit or cause.
Pin Ups: Primarily for in-house use. Customers will donate and fill their name on paper icon, which will then be hung up in the store.
Buy One Give One: Businesses will donate a product with comparable value to a designated product based on each sale of that product.
Volunteerism: Rather than asking for a donation, businesses will ask if customers will volunteer their time to a certain organization.
Digital Engagement: Businesses create a “digital experience” using social media and software engineers to spread awareness and raise funds for a cause or nonprofit.