7 Keys to Marketing Genius: Cause Related Marketing
The following is an excerpt from The 7 Keys to Marketing Genius by Michael Daehn
A very effective sales promotion strategy is the use of cause related marketing in which organizations create or partner with other charitable organizations or causes. When teaching my Sales Promotion course at the university, I use a book I highly recommend reading called Brand Spirit.* Cause related marketing is a great concept, because it is a win/win/win/win for the company, its employees, the charity and consumers.
The company wins because they have an increase in the perceived value of the product since they are contributing to charity. They are better able to differentiate themselves from competitors. The employees of the company win because they are helping to contribute to society through their efforts. It can be difficult to find meaning in your work, particularly if you are making mundane consumer products. On the other hand, if your company contributes to a good cause, it brings meaning and purpose to your activities. Obviously this is a win for the charity since they are receiving needed funds. Lastly, cause related marketing is a win for the consumers since they are helping a worthy cause with their otherwise ambiguous consumer purchases.
When possible you should match the cause to the product. There are two ways to go about cause related marketing campaigns. Either start your own, or partner with an existing philanthropy. We spoke of the pros and cons of partnering earlier, and the same principles apply here. For those who have the resources, creating their own charity or foundation is a wise choice since they wholly own the entity and its image.
So if you wanted to promote your new dog food Fluffy Time, you could start the Fluffy Time Foundation to rescue fluffy dogs. Portions of the sales from Fluffy Time dog food go to support the foundation. The foundation directly correlates to the product and reinforces a positive image in the consumer’s mind. The foundation is a great way to achieve free publicity. The public would perceive you as a caring company thus increasing your perceived value. Besides differentiating yourself from the competition, studies have shown that people are willing to pay a premium to purchase products that help a cause. The employees of the company can feel good about helping these fluffy little creatures to live a long and healthy life. The Fluffy Time Foundation receives funding to help our fluffy friends in need. Consumers can buy your product with a smile, knowing they are helping others.
*Brand Spirit : How Cause Related Marketing Builds Brands by Hamish Pringle & Marjorie Thompson