Cause Related Marketing: Good for the Community and the Bottom Line

By Heather C. Conover
Conover + Company Communications

"Men will work hard for money. They will work harder for other men. 
But men will work hardest of all when they are dedicated to a cause."

Harry Emerson Fosdick

Many companies believe in giving back to the community as evidenced by their charitable giving, sponsorship, and volunteer activities. While some give to charitable and civic organizations on an ad hoc basis, others have incorporated their charitable programs into their marketing program. This latter group sees a direct link between contributing to a worthwhile cause and positive visibility, an enhanced company image, access to new markets, increased customer loyalty, improved employee morale, and higher sales.

Does it work? Surveys have consistently shown that a majority of consumers not only have a more positive attitude towards a company doing something to better the world, but also believe that it's a good way to solve our social ills. Furthermore, most consumers indicate that they would switch to and stick with a brand if it is associated with a good cause, if the price and quality are equal to other products in the category.

In developing a cause related marketing program, a company must identify its overall goals for program. Once the broad purpose has been articulated, local, regional, national, and international charities-depending upon the company's market-should be researched to determine what cause(s) and charity(ies) will best help them accomplish their goals. This will enable a company to maximize its visibility and resources and ensure that the activities are relevant to the audiences it is targeting, the company, and employees.

After selecting a charitable partner, agreement must be reached with that partner on a variety of issues, including the goals that each wishes to attain and how they will be attained; the time period and geographic area of the program; how the program will be publicized; and how the company can use the charity's name, logo, and other materials. It's also important to determine the specific events in which the company will participate and its role in each. Charities often have existing events and promotions that are of major interest to a company, but may be closed to new participants or competitors of existing sponsors. If these are very high profile events, they may cost more money than a company can or wishes to spend.

Decisions must also be made regarding how much money or in-kind contributions will be given to the charity and systems put in place for accounting for and distributing contributions. Finally, once a program is in place, a company needs a tracking system to ascertain if it is accomplishing the goals set forth at the outset.


Spring 2002 - Volume 12, Number 2