Social Cause Marketing - The Regis Group Inc
Social Cause Marketing - The Regis Group Inc
Social Cause Marketing - The Regis Group Inc
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etween the consumer and the brand<br />
might deepen. Businesses therefore began<br />
to strive for a marketing approach<br />
that would integrate branding with social<br />
issues of concern to their intended<br />
consumers. It is here that strategic philanthropy<br />
enters the scene.<br />
Defined as ìcorporate giving that<br />
serves a dual purpose of contributing<br />
needed funds to charitable causes<br />
while simultaneously benefiting the<br />
firmís financial bottom line and enhancing<br />
businessís political legitimacy,î<br />
strategic philanthropy offered<br />
businesses a new approach. It allowed<br />
them to tailor charitable donations to<br />
social issues and causes that complemented<br />
their own products while simultaneously<br />
deducting the donations<br />
from their taxes. Adding to the benefits<br />
was a chance for businesses to expand<br />
their markets, increase sales, and build<br />
public goodwill that might serve as a<br />
bulwark against government regulations.<br />
As such, it was considered ìa<br />
powerful tool to be used in a calculated<br />
program of public relations and longterm<br />
investing.î 3<br />
SEPTEMBER 2009<br />
<strong>Cause</strong> <strong>Marketing</strong>: A New<br />
Trend<br />
Strategic philanthropy comes in several<br />
forms. In what is known as ëinkind<br />
givingí, a company donates<br />
goods and services to organizations in<br />
need. Another way to contribute is by<br />
donating employee time (through a<br />
corporate employee volunteer program)<br />
and expertise (through a venture<br />
philanthropy program) to nonprofit<br />
or community organizations.<br />
<strong>The</strong> publicly most visible form is<br />
cause marketing, also called cause-related<br />
marketing or joint-venture marketing.<br />
Defined as ìa business strategy<br />
that integrates a social issue or cause<br />
into brand equity and organizational<br />
identity to gain significant bottom-line<br />
impacts,î cause marketing merges corporate<br />
identities with nonprofits, good<br />
causes, and significant social issues<br />
through cooperative marketing and<br />
fundraising programs. 4<br />
Facilitated giving is a popular form<br />
of cause marketing. This is where a<br />
business serves as an intermediary for<br />
customer donations to a charity (or to<br />
itself!). An ongoing effort by Illinois energy<br />
supplier AmerenIP exemplifies this<br />
strategy. Each monthly bill to customers<br />
includes a plea for donations to the<br />
companyís ëWarm Neighborsí program,<br />
established to help customers pay their<br />
utility bills and weatherize their homes.<br />
While AmerenIP itself contributes an<br />
unspecified amount, the program relies<br />
primarily on the generosity of its customers.<br />
Overlooked ñ or deliberately obscured<br />
ñ is the fact that those customers<br />
are helping other customers settle their<br />
debts to the company. 5<br />
<strong>The</strong> most common manifestation<br />
of cause marketing, however, is purchase-triggered<br />
donations ñ the practice<br />
pioneered by American Express<br />
in 1983, in which a company pledges<br />
to contribute a percentage or set<br />
amount of a productís price to a charitable<br />
cause or organization.<br />
Over time, the early practice of<br />
cause marketing arrangements between<br />
a single commercial interest<br />
and a single cause has given way to<br />
more elaborate schemes that feature<br />
prominent philanthropic causes and a<br />
host of major corporate players who<br />
are granted exclusive sponsoring<br />
rights in their respective service categories.<br />
Established in 1982 to ìeradicate<br />
breast cancer as a life-threatening<br />
disease,î the Susan G Komen Foundation<br />
has become one of the most visible<br />
fundraising organizations for cancer<br />
research, as well as a favorite charity<br />
for sponsors with an interest in<br />
cause marketing. Its annual ìRace for<br />
the Cureî ñ a five-kilometer run/walk ñ<br />
is the largest ongoing sports/<br />
Inger L Stole is an Associate Professor in the<br />
Department of Communication at the<br />
University of Illinois in Urbana-Champaign. Her<br />
research explores advertising-related issues<br />
from historical and contemporary<br />
perspectives. She is the author of Advertising<br />
on Trial: Consumer Activism and Corporate<br />
Public Relations in the 1930s (University of<br />
Illinois Press, 2006). She is currently<br />
researching the political and economic role of<br />
the American advertising industry during<br />
World War II and its post-war impact. Her<br />
articles have appeared in International Journal<br />
of Communication, Journal of American<br />
Culture Consumption, Markets, and Culture,<br />
Advertising and Society Review, and <strong>The</strong><br />
Communication Review.<br />
35<br />
<strong>Cause</strong> <strong>Marketing</strong><br />
fundraising event in the country. More<br />
than most nonprofits, the Komen Foundation<br />
is actively involved in marketing<br />
its event to companies in search of<br />
cause marketing ventures. In 2009,<br />
more than 20 large companies, including<br />
Kelloggís, Yoplait, Pier 1 Imports,<br />
Re/Max Real Estate, and American Airlines<br />
(which recently rolled out the last<br />
and largest of eight aircraft displaying<br />
the special co-branded pink-ribbon<br />
motif that signifies the global fight<br />
against breast cancer), are members of<br />
Komenís Million Dollar Council Elite.<br />
<strong>The</strong> entry fee for the right to serve as an<br />
official sponsor of the annual race is $1<br />
mn, and the companies also undertake<br />
separate efforts that showcase their<br />
connection to the cause. Yoplait, for example,<br />
donates 10 cents to the Komen<br />
Foundation for each yogurt lid it receives<br />
from customers, with a guaranteed<br />
donation of $500,000 and a cap of<br />
$1.5 mn. Not to be outdone, Wacoal, a<br />
maker of bras and shapewear for<br />
women, shares information about early<br />
detection techniques for breast cancer<br />
and donates $2 every time a woman is<br />
fitted for a bra during the companyís Fit<br />
for the Cure events, with a promised<br />
minimum donation of $250,000. In addition<br />
to enjoying excellent exposure to<br />
a key consumer base, these companies<br />
can bask in the glory of being associated<br />
with a worthy cause and obtain<br />
valuable demographic information in<br />
the process. 6<br />
Also partnering with Komen on<br />
the $1 mn level is BMW, which is donating<br />
80% of the proceeds from its<br />
ìPink Ribbon Collectionî of watches,<br />
T-shirts, bags, and notebooks to the<br />
Komen Foundation. Rounding out the<br />
Komen sponsor list are more than fifty<br />
other businesses that have each<br />
pledged $100,000 of financial support<br />
3<br />
R Phillips, ì<strong>The</strong> Corporate Community Builders:<br />
Using Corporate Strategic Philanthropy for<br />
Economic Development,î Economic Development<br />
Review, 2000, vol. 17(1), 1-7; J. Marconi,<br />
<strong>Cause</strong> <strong>Marketing</strong>: Build Your Image and Bottom<br />
Line through <strong>Social</strong>ly Responsible Partnerships,<br />
Programs, and Events (Chicago, 2002).<br />
4<br />
Cone/Roper, <strong>Cause</strong> Related <strong>Marketing</strong> Trend<br />
Report: <strong>The</strong> Evolution of <strong>Cause</strong>-Related Branding<br />
(New York, 1999), 18.<br />
5<br />
http://www.ameren.com/WARMNEIGHBORS/<br />
adc_WarmNeighborsHomePage.asp.<br />
6<br />
http://ww5.komen.org/partners/<br />
partnerssponsors.html.<br />
EFFECTIVE EXECUTIVE