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Cause marketing is
marketing Marketing is the process of intentionally stimulating demand for and purchases of goods and services; potentially including selection of a target audience; selection of certain attributes or themes to emphasize in advertising; operation of adv ...

marketing
done by a for-profit business that seeks to both increase profits and to better society in accordance with
corporate social responsibility Corporate social responsibility (CSR) is a form of international private business self-regulation which aims to contribute to societal goals of a philanthropic, activist, or charitable nature by engaging in or supporting volunteering or ethically- ...
, 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 A nonprofit organization (NPO), also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in contrast with an entity that o ...
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 Philanthropy consists of "private initiatives, for the public good, focusing on quality of life Quality of life (QOL) is defined by the World Health Organization The World Health Organization (WHO) is a list of specialized agencies of th ...

philanthropy
), as the latter generally involves a specific donation that is
tax-deductible Tax deduction is a reduction of income that is able to be taxed and is commonly a result of expenses, particularly those incurred to produce additional income. Tax deductions are a form of tax incentives A tax incentive is an aspect of a country ...
, while cause marketing is a promotional campaign not necessarily based on a donation.


History

''1973 -'' Congress passed the Endangered Species Act (ESA) on December 14, 1973. In response,
7-Eleven 7-Eleven, Inc. (stylized as 7ᴇʟᴇᴠᴇn) is an international chain of convenience store A convenience store, convenience shop, corner store, or corner shop is a small retail Retail is the sale of goods In economics Eco ...
sold Endangered Species Cups, with 1-cent from the sale of each cup donated to the
National Wildlife Federation The National Wildlife Federation (NWF) is the United States' largest private, nonprofit conservation education and advocacy organization, with over six million members and supporters, and 51 state and territorial affiliated organizations (including ...
. Donations from the program totaled $250,000, which the National Wildlife Federation used to purchase Bald Eagle habitat. The transfer of land to the U.S. Government and U.S. Fish and Wildlife Service took place on December 19, 1974 and came to be known as the Karl E. Mundt National Wildlife Refuge. In 1974, John T. Carr started and Founded The Charitable Giving Foundation, which is considered the first Cause-related Marketing organization in the United States. In July of 2009, he was informed that his Foundation had helped generate over $1Billion for various Charitable Causes and he is still active in this endeavor still today. Due to the present Pandemic, he is more active than ever and does Not receive Any of the Funds generated for the different Causes. In 1976, a cause marketing campaign was executed through a partnership between the
Marriott Corporation Marriott Corporation was a Hospitality industry, hospitality company that operated from 1927 until 1993, founded by J. Willard Marriott and Frank J. Kimball as Hot Shoppes, Inc. in 1957, Marriott Corporation opened its first hotel in Arlington C ...
and the
March of Dimes March of Dimes is a United States nonprofit organization A nonprofit organization (NPO), also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, ...
. Marriott's objective was to generate highly cost-effective public relations and media coverage for the opening of their family entertainment center, Marriott's Great America in
Santa Clara, California Santa Clara (; Spanish language, Spanish for "Clare of Assisi, Saint Clare") is a city in Santa Clara County, California, Santa Clara County, California. The city's population was 127,647 as of the 2020 United States Census, making it the List ...

Santa Clara, California
. The March of Dimes's objective was to greatly increase fundraising while motivating the collection of pledges by the program’s deadline. The promotion was conducted simultaneously in 67 cities throughout the western United States. This cause marketing campaign and partnership raised an unprecedented $2.4 million to become the most successful promotion in the history of Chapters West of the March of Dimes, while providing hundreds of thousands of dollars in free publicity and stimulating a 2.2 million person attendance, a regional theme park record, for the opening year of the Marriott entertainment complex. In 1979, in a Rosica, Mulhern & Associates campaign for
Famous Amos Famous Amos is a brand of cookies A cookie is a baked Baking is a method of preparing food that uses dry heat, typically in an oven, but can also be done in hot ashes, or on hot stones. The most common baked item is bread but many other ...
cookies,
Wally Amos Wallace "Wally" Amos, Jr. (born July 1, 1936) is an American TV personality, entrepreneur, and author from Tallahassee, Florida Tallahassee ( ) is the capital city of the U.S. state of . It is the and only incorporated municipality in . T ...
became the national spokesperson for the Literacy Volunteers of America. In 1982,
Nancy Brinker Nancy Goodman Brinker (born December 6, 1946) is the founder of The Promise Fundhttps://promisefundofflorida.org/ and Susan G. Komen, an organization named after her only sister, Susan, who died from breast cancer in 1980 aged 36. Brinker was a ...

Nancy Brinker
, founder of Susan G. Komen for the Cure was an early pioneer of cause marketing, allowing millions to participate in the fight against breast cancer through businesses that share Komen's commitment to end the disease. The recent interest in cause-related marketing is generally argued to stem from American Express, who apparently coined the phrase in 1983. Following various pilot schemes in 1981,
American Express The American Express Company (Amex) is a multinational Multinational may refer to: * Multinational corporation, a corporate organization operating in multiple countries * Multinational force, a military body from multiple countries * Multinat ...
developed a campaign which donated funds to a number of different
non-profit A nonprofit organization (NPO), also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in contrast with an entity that o ...
organizations as part of the San Francisco Arts Festival. Essentially every time someone used an American Express Card in the area, a 2-cent donation was triggered and each time new members applied for a card a larger contribution was made. The marketing goals that American Express had for this programme were apparently exceeded. Card usage was reported as having increased significantly and relationships between American Express and their merchants also improved as a result of the promotion. From the charity's point of view, despite being a short-term campaign, $108,000 was raised, making a significant contribution to their work. The terms "cause-related marketing" and "cause marketing" have continued to grow in usage since that time. In more recent years the term has come to describe a wider variety of marketing initiatives based on the cooperative efforts of business and charitable causes.


Background

According to a 2007 report published by ''onPhilanthropy'', cause marketing
sponsor Sponsor or sponsorship may refer to a person or organization with some role (especially one of responsibility) regarding another person or organisation: *Sponsor (commercial), supporter of an event, activity, or person *Sponsor (legislative), a pers ...
ship by American businesses is rising at a dramatic rate. Citing an IEG, Inc. study, $1.11 billion was spent in 2005, an estimated $1.34 billion was be spent in 2006, and the number has risen further in 2007. As an update, IEG reported that cause grew 3.9% to reach $1.85 billion in 2014. For 2015 they forecast 3.7% growth for cause to reach $1.92 billion. Cause-related marketing is a powerful marketing tool that business and nonprofit organizations are increasingly leveraging. According to the Cone Millennial Cause Study in 2006, 89% of Americans (aged 13 to 25) would switch from one
brand A brand is a name, term, design, symbol or any other feature that identifies one seller's good or service as distinct from those of other sellers. Brands are used in business Business is the activity of making one's living or making mon ...

brand
to another brand of a comparable product (and price) if the latter brand was associated with "good cause". The same study also indicated that a significant percentage surveyed would prefer to work for a company that was considered . This can be linked to the increase in workplace giving programs. Earlier studies by Cone indicate an upward trend in the number of Americans who associate their own buying habits with cause marketing as well as an expectation that those companies to be "good corporate citizens". These studies also show a substantial increase from just before to just after the
September 11, 2001 attacks The September 11 attacks, also commonly referred to as 9/11, were a series of four coordinated Terrorism, terrorist attacks by the militant Islamism, Islamist terrorist group al-Qaeda against the United States on the morning of Tuesday, S ...
. Numerous other studies have also been conducted to show that cause-related marketing has helped to increase a company's profits. For example, in the cause marketing campaign by American Express (to which the term "cause marketing" is attributed), the company saw a 17% increase in new users and a 28% increase in card usage. Evidence shows that CSR voluntarily initiated by firms will result in more opportunities for profit than CSR mandated by the government.


Benefits and concerns

The possible benefits of cause marketing for nonprofit organizations include an increased ability to promote the nonprofit organization's cause via the greater financial resources of a business, and an increased ability to reach possible supporters through a company's customer base. The possible benefits of cause marketing for business include positive
public relations Public relations (PR) is the practice of managing and disseminating information from an individual or an organization An organization, or organisation (English in the Commonwealth of Nations, Commonwealth English; American and British ...
, improved
customer relations Customer relationship management (CRM) is a process in which a business or other organization administers its interactions with customers, typically using data analysis to study large amounts of information. CRM systems compile data from a rang ...
, additional marketing opportunities, and making more money. These benefits occur because this marketing model gives the consumer the feeling of being a philanthropist while doing something as simple as buying a pair of shoes. With that said, there are some concerns related to cause marketing. The issue of trust has emerged as central to the potential for the impact of cause marketing. Specifically, 78% of consumers reported that a partnership between a nonprofit and a company that they trust makes a cause stand out (2010, Cone Nonprofit Marketing Trend Tracker). If a consumer doesn't trust the business that is behind the cause marketing campaign, it can be seen as an insincere effort to attract more loyalty from consumers. For that reason, it is important that the cause marketing campaign be authentic to the brand image of the products which are running the marketing campaign. Another potential issue with cause marketing is the possible increase in the price of the cause-related products. In fact, only 19% of consumers would be willing to buy a more expensive brand if it supported a cause (Cone, 2010). Consumers are also not sure about how much money actually gets donated, according to Eikenberry (2009).


Online cause marketing


Overview

Although originally a marketing strategy that occurred offline, cause marketing has been conducted more and more through online channels in the last decade. This is due in part to the increasing percentage of households with internet connections. As with other types of marketing campaigns, companies can leverage online marketing channels along with other offline channels such as print and
media Media may refer to: Physical means Communication * Media (communication) In mass communication, media are the communication Communication (from Latin Latin (, or , ) is a classical language belonging to the Italic languages, It ...
. (Sometimes referred to as integrated marketing). The advent of online cause marketing has allowed consumers, for example, those who are loyalty program members, to take a far more active role in cause marketing. This is democratized transactional giving. It means consumers, rather than companies, decide which causes to support and advocate for. An example of how this works could be a company allowing its loyalty program members to convert unredeemed rewards, such as points or miles, into cash donations to causes of the customers' own choosing, rather than have the company select the charities. An online platform is necessary to connect the customers to a large-enough selection of charities.


Online charity auctions

In recent years, online auctions have been used in cause marketing strategies using a number of different
online auction An online auction (or also electronic auction or e-auction or eAuction) is an auction An auction is usually a process of buying and selling goods In economics Economics () is the social science that studies how people interact with v ...
platforms. Companies have created programs to help sellers and corporations donate a percentage of their sales to a nonprofit organization through the use of auctions. Businesses and nonprofit organizations can also use the program for cause marketing and nonprofit fundraising programs.Quinn, Laura S. (2011-07). "A Few Good Online Auction Tools". ideal-ware. Retrieved 2014-1-16.


Types

Cause marketing can take on many forms, including: 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 our 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.


See also

*
Corporate image A corporate identity or corporate image is the manner in which a corporation, firm or business enterprise presents itself to the public (such as customers and investors as well as employees). The corporate identity is typically visualized by ...
*
Foundation (charity) A foundation (also a charitable foundation) is a category of nonprofit organization or charitable trust that typically provides funding and support for other charitable organizations through grants, but may also engage directly in charitable acti ...
*
Greenwashing Greenwashing (a compound word In linguistics Linguistics is the scientific study of language, meaning that it is a comprehensive, systematic, objective, and precise study of language. Linguistics encompasses the analysis of every aspe ...

Greenwashing
*
List of marketing topics The following outline is provided as an overview of and topical guide to marketing: Marketing – social and managerial processes by which products, services, and value are exchanged in order to fulfill individuals' or groups' needs and wants ...
*
Public relations Public relations (PR) is the practice of managing and disseminating information from an individual or an organization An organization, or organisation (English in the Commonwealth of Nations, Commonwealth English; American and British ...


References


External links


List of Noted Organizations and Foundations promoting Business-Nonprofit Partnerships



Where Does Cause Marketing Go From Here - IEG Sponsorship Report Article
{{DEFAULTSORT:Cause Marketing Types of marketing Promotion and marketing communications Contexts_for_auctions