Trends in Cause-Related Marketing

Cause-related marketing is a partnership between a non profitable organization and a business that raises money for the nonprofit by connecting a portion of the sales price of a product to a charitable donation. There are various versions of this type of arrangement. Some new trends are emerging that could potentially benefit global charities.

One example is the Red Campaign. Companies that manufacture consumer goods have branded certain products with the color red. Consumers know that when they purchase a red product, a portion of the sales price will be donated to a charity that is involved in preventing or curing AIDS. Another example is the company having a special promotion during which the total amount of the sales of a particular product is donated to a specific cause. A well-known hamburger chain has a day set aside when all the sales of a specific hamburger are donated to its charity of choice.

Cause-related marketing is popular because it accomplishes a number of objectives for both the charity and the business. The charity will receive needed funds and will also benefit from the increased exposure that corporate advertising can provide. Business can benefit from building positive associations with its brand, gaining share in niche markets and attracting new customers to its products.

A new trend that is emerging in cause-related marketing is the buy one, give one concept. The basic idea is that when a consumer buys a product, the company will donate the same product to a charity who will arrange for the product to be given to someone in need. As an example, a flashlight company that makes a rugged solar powered light gives one of these lights to a rural village without electricity somewhere in the developing world. The purchaser can choose where the light goes, such as, to a disaster relief situation or to a school. The same concept is being used by a variety of companies.

Another trend in cause-related marketing is similar to a contest. The company will make a certain amount of money, often substantial, available to a charity. Charities apply for the funds and earn them by having people vote on their behalf. In order to receive the money, the charity must get the endorsement of thousands of fans. Social media is used effectively to promote the charities. This form of cause-related marketing is not tied directly to product sales but rather general endorsement of consumers. The result is similar though, in that the charity and the sponsoring company receive exposure and an enhanced image in the marketplace.

New trends will emerge every day. Savvy marketers and fund development practitioners will do well if they can monitor and capitalize on these trends in cause-related marketing.

By Ron Strand