The NonProfit Times - Weekly

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CAUSE MARKETING:

  1. Consumers, donors want action
  2. Make sure the for-profit has a plan
  3. Protecting both brands, yours and theirs
  4. Cause marketing efforts bear scrutiny
  5. Cause-Related Marketing

NPT Weekly - Current Issue


1. Consumers, donors want action
Although cause marketing is a hot topic, a study released by Cone, a Boston-based consulting company that links corporations with social issues, has highlighted corporate citizenship as a primary concern in the coming years.

Cone defines corporate citizenship as a series of integral business practices that demonstrate the positive interaction between companies and their stakeholders, the environment and the communities in which they operate.

Among the findings of the Cone Corporate Citizenship Study:

  • Americans maintain high expectations of corporate citizenship. Americans’ desire for companies to help strengthen the nation’s communities remains as strong today as it was immediately following the September 11 attacks.
  • Americans react against negative corporate citizenship practices. The survey documents the intention of Americans to punish bad corporate citizens.
  • Cause branding positively influences American decisions. Americans will consider companies’ support of social issues when making community, employment, purchasing and investment choices.
  • Cause branding reinforces relationships with consumers. Cause efforts strengthen consumers’ relationships with brands, even beyond purchasing behavior.
  • Cause branding strengthens employee morale. More than half of today’s employees doubt that their employers are concerned with any interests but their own.

Noting that education now leads American priorities, the Cone study suggests several best practices in corporate citizenship the companies should employ:

  • Implement corporate citizenship policies across the board.
  • Build your values into corporate culture.
  • Develop a signature cause branding initiative to resonate with key stakeholders.
  • Do what you say, say what you do.


2.
Make sure the for-profit has a plan
Cause branding has emerged as a new marketing and philanthropy discipline that integrates social causes and commitments into a company's brand identity and personality to enhance business and social objectives. Polling agency Cone Roper has outlined five key principles for success in Cause Branding. It's important for the nonprofit to make sure that the for-profit has a series of goals in place. Such as:

  • Treating cause branding like any other strategic business investment. Put a formal process in place and begin by setting clear business and social objectives, identifying audiences to reach and affect and determining the criteria on which decisions will be based.
  • Commit to an issue first, then pick your partners. Focusing first on an issue allows a company to set its own course around a cause that it relevant to its long-term business objectives. Companies should then identify the strongest charitable partners to bring the program to life.
  • Engage employees' hearts and minds. Successful programs are inspired by leadership from the chief executive and driven by action from employees throughout the company. The power of thousands of employees passionate about a shared cause has an impact on the corporate culture and how the brand is viewed.
  • Make your current assets work harder. Whether it is human expertise, technical knowledge, communications vehicles, sponsorships or products, each company has a myriad of resources that can be used strategically to support its issue.
  • Earn the "accolades." Cause programs should accomplish real societal goals before they are communicated. Even if Americans want to know what companies are doing to address social issues, critics are still increasingly vocal and cynical.


3.
Protecting both brands, yours and theirs
Turning on a company, that is, successfully engaging it in a Cause-Related Marketing program, requires a nonprofit to communicate effectively "what is" and "what can be." This advice was offered by Stephen M. Adler, CEO of Charity Brands marketing, at a Cause Marketing Forum in New York City.

There are two main questions that Adler said must be answered: Why is this relationship ideal for the prospect? and What could this relationship look like? There are 10 ways to answer those questions.

  • Know thy target. Know how they do business, their best customers and their biggest competitors.
  • Practice the three Cs. Be clear, concise, compelling.
  • Talk the talk. Speak the language of marketing; support the prospect's quest for profitability.
  • Walk the walk. Showcase your relevance; define specific, feasible strategies.
  • Be positive. Develop a positive position to inspire customers.
  • Cover your assets. How many people can you deliver, what communications vehicles can you employ, can you leverage another corporate partner for a mutually beneficial initiative?
  • Show your staying power. What is the long-term growth potential, what could Phase 2 look like?
  • Reinforce their brand. Show how you can enhance their positioning in the media, in stores and on packaging.
  • Look ahead. What trends can a company leverage through a relationship with you?
  • Bring something new. Move the ball forward by adding a new idea or new information with each encounter.


4.
Cause marketing efforts bear scrutiny
Cause marketing has proven to be successful enough that it has drawn scrutiny from law enforcement quarters, concerned about ethical or legal concerns when commercial and nonprofit endeavors are mingled.

Legal requirements can vary with location and situation, but in general, there are six principles for consumers that are of interest to attorneys general and others concerned with nonprofit legal and financial issues:

  • Both the corporate sponsor and nonprofit must satisfy all applicable legal standards, including consumer-protection laws on false advertising, deceptive trade practices and consumer fraud.
  • Advertisements for commercial products must not misrepresent that a nonprofit has endorsed an advertised product. This may even include a requirement that the nonprofit disclose that it has not endorsed the product.
  • Advertisements for commercial products using the name or logo of a nonprofit must avoid express or implied claims that the product is superior, unless the claim is true and substantiated. The nonprofit may be required to disclose that is has not made such a determination.
  • Advertisements for products should disclose that the commercial sponsor has paid for the nonprofit's name.
  • Advertisements should not mislead the public about the effect of consumers' purchasing decisions on charitable contributions.
  • Nonprofits should avoid entering into exclusive arrangements with commercial sponsors for the marketing of commercial products. An exclusive arrangement should be made clear.


5.
Cause-Related Marketing
Cause-related marketing may be an attractive and ever-expanding idea, but it is not perfect or free of worries. With cause-related marketing a few simple steps may help to maximize results and minimize problems. Speaking at cause marketing forum, Margaret Bigley of Pathmark and Rob Lucas of the American Cancer Society offered a checklist for successful programs.

  • Keep it simple and flexible: Execute a single promotion; reduce the moving parts; let the retailer guide you; you provide the resources.
  • Keep it relevant to the business: It must fit the corporate culture; there must be senior management buy-in; it must enhance the marketing/business plan.
  • Plan and organize: Plan six months to a year in advance; develop a marketing plan; assign responsibilities (for both the nonprofit and the corporation); provide the necessary resources; meet frequently to review the plan.
  • Motivate the troops: Distribute details about your cause; use corporate newsletters, emails and meetings to keep people informed; set goals; publish results; remember that competition is a good thing.
  • Execute: Keep extra materials and resources available; provide daily communication to team captains; be flexible.
  • Evaluate: Meet within two weeks after the promotion; review and revise the original plans; thank the employees and customers.



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