cause marketing 101

DOING BUSINESS THAT DOES GOODDOING BUSINESS THAT DOES GOOD:HELPING MARKETERS FORGE PARTNERSHIPS OF PURPOSE

Stephanie Smirnov, PresidentD V i P bli R l ti

© DeVries Public Relations (April 2009)

DeVries Public Relations

Test Test your C I Q *Test your C.I.Q.

*Cause intelligence quotient*Cause intelligence quotient

h l h The effort or inclination to philanthropy The effort or inclination to increase the well-being of humankind, as by charitable aid or donations

A strategic positioning and cause

or donations

A strategic positioning and marketing tool that links a company or brand to a relevant social cause or issue,

cause marketing

for mutual benefit

corporate social responsibility ( )

How businesses align their values and behavior with the expectations and needs of stakeholders(CSR) and needs of stakeholders

FUN FACTS!

Source: Mintel Report on Cause Marketing, 2007; Cone (2007), IEG Sponsorship Report (2007); Edelman Goodpurpose (2008)

52%of consumers are more likely to52%of consumers are more likely to recommend a brand that supports a cause vs one that does nota cause vs one that does not

81%say when price/quality are

81%say when price/quality are equal, they’re likely to switch brands based on causebrands based on cause

68%of consumers would remain loyal68%of consumers would remain loyal to a brand if it supports a cause

…even in a recession

71%have either given the same71%have either given the same amount of (or more) time or money to good causesmoney to good causes

even in a recession…even in a recession

71%have either given the same71%have either given the same amount of (or more) time or money to good causesmoney to good causes

even in a recession…even in a recession

A l l k t A closer look at women…

Source: Mintel Report on Cause Marketing, 2007

Significantly more likely than men to agree that “sometimes a cause-related sponsorship will p paffect my purchase”

More likely to be philanthropically minded

More aware of CRM efforts than men

Most concerned about health issues, education, children’s welfare and povertyp y

spent on cause1.5 billionspent on cause marketing last year

1.4 millionnon-profit organizations in the U.S. alone

DOING GOOD & GIVING BACKDOING GOOD & GIVING BACKA BRIEF HISTORY

Early 1900sWealthy Family foundations

1910s

1950s-1960s 1970s-1980s 1990sD

RAIS

ING 1948

United Way formalized, 1,000 local chapters

1991 Evocative Icons:AIDS/HIV R d Ribb

2004Post-Tsunami Mobile Giving

2006

2000s - Venture

philanthropy- Micro-philanthropy

1980s Epic Relief USA for Africa, B d Aid

2000s1900-1940s

Community Chest

Late 1920sWalkathon

AN

TH

RO

PY/F

UN

D 1950s-1960s Civil Rights and Anti-war movement transform ideals in public life.

Red Ribbon

1996AIDS Quiltat the WDC Mall

2006Inconvenient Truth

2008Obama Campaign

2001Post-9/11 TV “roadblocks”

Band-Aid, Live Aid

TIED TO PRODUCT

PHIL

A

TRANSACTIONAL TRANSFORMATIVE

p g

1992

2004Nike. LAF and LIVE STRONG

2006- Pixel Donating- CRM spending +24% vs ’05G

TANGIBLE

1992Pink Ribbon (Lauder)1997Revlon

Run/Walk1998Avon Walkathon

2005Adventure Altruism

+24% vs 05

2007

USE M

ARKETIN

G

1983 AMEX & Statue of

SOCIAL AND ACTIVE

Avon Walkathon

CAU

MASS PRODUCED: CREATED FOR EVERYONE PRODUCED BY THE MASSES: CREATED BY EVERYONE

Statue of Liberty

1900s-1920s Local community & small town ideals

1930s Great Depression &

1960-1970s Epic concerts

Digital ExplosionOnline communities of shared interest

Celebrity CultureRise of the Uber-D

PO

P CU

LTU

RE

1970s-1980s Rise of ideals-driven enterprise: Ben & Jerry’s, Newman’s Own

Mid 1990s Ideals-driven start-up culture captures popular imagination

puprooting of local communities

Rise of the UberInfluencer

Social Media + Mobile CultureMutually assured connectivityM

ED

IA A

ND

1980s “Reagan Effect” ofcuts in gov’t funding

ENGAGING CONSUMERS

Transactional:Doing Good through PurchaseDoing Good through Purchase

Buys Consumer $$ Organizational yProduct

Consumer $$ Beneficiaries

Active Altruism:Doing Good Beyond PurchaseDoing Good Beyond Purchase

ConsumerParticipates

beyondPurchase

$$ or something of value

Organizational Beneficiaries

of value

Wired Giving:Doing Good DigitallyDoing Good Digitally

Engages$$

Organizational Consumer Digitally &

Socially $$ or Individual

Beneficiaries

Micro-philanthropy

Hack-a-thons

CAUSE DECISION MAKING CAUSE DECISION-MAKING A ROADMAP

LET THE PLANNING BEGIN!

Have you YESHave you

factored in d f

YES

Have you engaged all marketing

disciplines? NO

YES

aligned on successmeasures?

YES

NO STOP

needs of all stakeholders? NO STOP

p

STOP

Do you know what causes are

YESHave you donea landscape

YES

Is senior management aligned to the

project?

YES

NOimportant to your target?NOSTOP

passessment? NO

STOP

p j

STOP

Healthy ?

YES

Co ld ca se

Is your brand equity

or purpose l l d fi d?

YES

NO

Is it conducive to playing in cause space?

YES

NO

STOP

brand? NOCould cause

address a business challenge?

YES

NO

clearly defined? NO

STOP STOP

Information & Inspirationp

causemarketingforum.com KATYA’S NON-PROFIT MARKETING BLOGwww nonprofitmarketingblog com/www.nonprofitmarketingblog.com/

BETH’S BLOGbeth.typepad.com/beths_blog/

PR MAMAssmirnov.wordpress.com@ssmirnov@ss o

Thank You!

Stephanie Smirnov, PresidentD V i P bli R l ti

© DeVries Public Relations (April 2009)

DeVries Public Relations