What is cause marketing and why is it important?

With easy access to the internet and information, businesses are forced to be more transparent than ever, at least about their finances. The customer who has access to a lot of information and a lot of options drives the market. Customers are more favorably attracted to companies that carry out social responsibilities ; Therefore, more and more companies are looking for ways to increase their credibility at the same time. In this article, we will discuss how businesses can collaborate with non-profit organizations, which is called cause marketing.

What is cause marketing?

Sponsorship marketing or cause marketing, also known as cause-based marketing, is a type of marketing in which for-profit businesses strive to support a social cause while increasing profits.

Cause-oriented marketing can also refer to a partnership between a company and a non-profit organization, in which the non-profit organization benefits from awareness and, if it chooses, a portion of the company's revenue, which results from the sale of a specific product or sales during a specific time period. is, receives.

The company also benefits from this contract with its profit and increasing its reputation. Basically, when large companies partner with non-profit organizations or decide to support a cause, it is referred to as corporate " social responsibility " and can take the form of monetary benefits, awareness, volunteer work, and marketing . This creates a positive public perception of the business, and the partnership typically includes a tax-deductible financial contribution.

InCause, North America's largest marketing conference and expo, will be held November 5-7, 2016 at the New York Hilton Midtown in New York City. The conference will focus on how companies can harness the power of the cause to build brand loyalty, increase revenue and improve employee engagement.

There are three basic elements to cause marketing :

1. Choose a reason : Choose the appropriate reason for support

2. Cause Messages : Create a relevant and motivating message for potential supporters

3. Why : Plan and implement an effective cause campaign

How to best use Cause Marketing

Exploiting the advantages offered by Cause Marketing is not easy for a company, both because it is a particularly slippery terrain and because consumers today are increasingly aware and savvy, as well as ready to immediately and loudly point out any behavior that is not exactly transparent. The risk of a boomerang effect is high: the company could find itself having to manage a crisis situation if it does not demonstrate that it is capable of dealing with these issues with due caution.

A brand , specifically, must be fully in line with the noble cause it decides to espouse and must do something concrete to change society and the fate of the planet, without showing discrepancies between its intentions (although noble on paper) and the its concrete actions (not always coherent and effective). Above all, a brand must not address delicate issues such as ethics, sustainability or responsibility with superficiality and without real adherence to these values, with the risk of diminishing the importance of the causes supported.

The practice of appropriating ethical values only as a form of marketing and market strategy to increase profits, taking advantage of current trends, without a concrete civic commitment, is called Woke Washing . The risk of falling into it and, therefore, becoming the victim of a social protest campaign is, as already mentioned, high.

If you intend to test the effectiveness of Cause Marketing but don't want to risk making missteps and finding yourself the victim of a protest campaign due to the aforementioned Woke Washing, you can request advice from professionals in the sector.

Benefits of cause marketing

Advantages of Purpose Related Marketing are:

1. Brand image: Cause-related marketing helps the brand promote its social responsibility and community goals. This ensures that customers have a positive view of the brand and enhances the brand's image.

2. Customer loyalty: Cause-related marketing increases customers' loyalty to the brand. Customers may become more loyal to the brand by caring that the brand contributes to social responsibility and social causes.

3. Positive image in society: Cause-related marketing helps the brand create a positive image in society. The brand's involvement in social problems and providing solutions creates a positive opinion in society.

4. Market separation: Cause-related marketing can create unique market separation for brands. Supporting a specific social cause makes the brand stand out from other brands.

5. Reduced marketing costs: Cause-related marketing can be done at a lower cost than other marketing methods. Brands can engage in low-cost marketing by organizing a campaign to support a specific social cause.

6. Promoting social responsibility: Cause-related marketing helps brands promote social responsibility. Brands can be accountable to society's needs by organizing a campaign to support a specific social cause.

Disadvantages of Cause Related Marketing are:

1. Loss of credibility: If brands tie supporting social causes primarily to their marketing purposes, this may reduce customers' trust in brands.

2. Exaggerated advertising: Exaggerated presentation of cause-related marketing campaigns can alienate customers from brands.

3. Inappropriate purposes: Brands must choose the right purpose when marketing for a purpose. The wrong choice of purpose can cause customers to react negatively to brands.

4. Decreased content quality: When doing cause-related marketing, the quality of marketing messages may decrease from time to time. Brands should also consider the quality of their marketing messages when marketing with cause.

5. Necessity of market research: When marketing for a purpose, brands need to conduct market research. Incomplete market research can cause a cause marketing campaign to fail.

6. Likely to be costly: Cause-related marketing campaigns can be more costly than other forms of marketing. Brands should also consider costs when marketing for cause.

Examples of cause marketing strategy

Cause marketing can be done in many ways, depending on the industry, brand, budget, or location. Read on for some great examples of cause marketing.

Point of Sale

This type of campaign involves collecting donations at the cash register or even at the entrance of a store. A fundraiser or campaign representative asks each customer if they would like to donate to the cause being supported. They may even offer small tokens in return, such as candy, stickers, or Mail a Thank-You Card. Many organizations have partnered with a company to run a successful fundraising campaign simply by asking customers to donate during checkout.

Active donation

Donations set up for purchases reserve a certain percentage of the purchase price of a product and donate it to a specific cause. For example, a diner purchases a meal at a sponsoring restaurant, and although the price remains the same for the consumer, the venue donates a predetermined amount of the purchase to a cause of their choice.

Issuing Permit

The campaign raises funds through a partner company that pays to use the nonprofit's brand on its products. When a branded product is purchased, a donation is made to the non-profit organization. For example, a credit card company adopts a logo for a specific reason to display on its cards. When the card is used to purchase items at certain stores, a percentage of the purchase is donated by the credit card company to the target.

Message promotion

In this type of targeted campaign , a company devotes its resources to raising awareness. The company simply spreads and reinforces the cause's message through advertising, promotional materials, or other attention-grabbing tactics.

Job commitment

This strategy uses other resources of the company, i.e. its employees, to provide voluntary services to a social cause. Many companies give employees paid days off to dedicate their time to whatever cause they work to support.

Cause-Related Marketing Examples

Cause-related marketing can be applied to many different industries and used for many different purposes. These may include:

1. Social responsibility: Brands can organize cause-related marketing campaigns for the protection of society and nature.

2. Health: Purpose-oriented marketing campaigns can be organized to promote healthy living and disease prevention.

3. Education: Purpose-oriented marketing campaigns can be organized on education and access to information.

4. No boundaries: Purpose-oriented marketing campaigns can be organized to overcome differences between different cultures, ethnic groups and genders.

5. Profit purpose of businesses: Businesses can organize purpose-oriented marketing campaigns to increase customer loyalty and improve brand awareness.

These are just a few examples, and the number of cause-related marketing applications is endless. Brands can organize purpose-oriented marketing campaigns by choosing the most appropriate purpose for their target audience and determining a correct marketing strategy.

How to create an advocacy or cause marketing campaign?

Cause marketing is a balanced proposition in which a for-profit company balances social responsibility with its benefits to business. Achieving the right balance requires skilled marketing and a strong team. Follow the steps below to learn how to get started in advocacy marketing.

1. Go for a cause you believe in

When employees believe in the marketing cause or purpose, a powerful campaign is created. People in this campaign are likely to put in more effort, take up their personal time to advocate for the cause, and even be encouraged to do volunteer work. This campaign works best if your team members feel good about "helping."

2. Partner with a cause related to your trade

Contributions that are relevant to each party make the most sense. When your company aligns itself with a worthwhile cause, it makes people associate your brand with long-term contributions long after the campaign is over.

For example, if your company manufactures and sells hair care products, you might consider partnering with an organization that provides hats made from donated hair to people who have lost their hair due to cancer treatment. This campaign could be aimed at raising awareness about caps in hair donation programs.

3. Donate your valuable time, services or assets

Although donations are beneficial to all organizations, many companies do sponsorship or cause marketing by taking action that directly helps the organization rather than writing a check. These actions can be donating products or services of the organization. Donating your time or services gives your company a positive image and can create powerful associations between your products and your charitable giving.

4. In sponsorship or cause marketing, treat the partnership like a business deal

In order for your partnership to be mutually beneficial, work with members of the non-profit organization to determine the interests of each party. Another thing to consider is how the campaign will increase the visibility of your brand.

To help with this, the organization may agree to mention your contribution in an email marketing event, on social media or on its website. They might offer to feature your logo as a top sponsor on campaign materials, or you might work together to come up with creative ideas that work for both parties. Then, work together to figure out how you will use the organization's branding in your cause-oriented marketing campaign and how you can create messaging that connects the two entities.

5. Organize a marketing campaign

Your campaign should motivate your audience to take positive action such as donating, volunteering, or simply making a lifestyle change . By devoting your entire marketing effort to the cause, while raising awareness and focusing on your business's contribution to it, you can increase your reach and motivate your audience.

Trends in marketing

Because marketing has been around for some time, but it has seen a resurgence in recent years as companies have become aware of its potential. There are a number of reasons for the resurgence, but some of the main reasons include:

1. People are increasingly looking for ways to connect with their customer base on a personal level. This is especially true for millennials, who are more likely than any other generation to care about social and environmental issues.

2. Companies are beginning to see the value in aligning their business goals with those of their customers and society. This creates a stronger relationship between a company and its customers and can lead to increased sales and customer loyalty.

3. Because marketing allows companies to benefit from society's sense of social responsibility and philanthropy. By supporting causes that matter to people, companies can build goodwill and create a bond of positive social impact.

There are a number of different types of causes that businesses can get involved in, and the options are almost unlimited. Some of the most common reasons include education, health and wellness, animal rights, and environmental protection.

There are a number of different ways businesses can start marketing campaigns. Some of the most common methods include:

1. Sponsor a charity or fundraising event.

2. Donate money or product to a specific cause or organization.

3. Create awareness of a particular issue through social media or public relations campaigns.

4. Support local causes through donations or volunteer work.

5. Work with grassroots organizations to promote important issues.

There is no one-size-fits-all approach to cause marketing, and the best campaigns vary depending on the company's goals and audience. However, there are some general guidelines that should be followed in order to increase the impact of your cause marketing campaign:

1. Make sure your campaign is well planned and executed. Prioritize your search and plan your marketing strategy well in advance in order to make the most impactful impression.

2. Be creative and innovative with your advertising and public relations strategies. Make sure you take advantage of new technologies and platforms to reach more people with your message.

3. Make sure to focus on the emotional side of your customers' lives. Tailor your marketing messages to fit people's sense of pride, altruism, or community compassion.

4. Make sure you measure the success of your campaign objectively and update stakeholders regularly on how things are going. This will help you stay focused on what's most important - making a difference in the lives of your customers and community members.

Things to Consider When Doing Purpose-Related Marketing

There are many points that brands should pay attention to when doing cause marketing work. Points to Consider When Purpose-Oriented Marketing always allows you to strengthen the corporate reputation of your brand and increases the trust in your brand. For this reason, while brands develop their cause marketing strategy;

By paying attention to these factors, you can carry out purpose-oriented marketing activities and increase the reputation of your brand while also creating public trust in your brand.