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CAUSE-RELATED MARKETING GOES MAINSTREAM

Peter James MacCracken, APR

Hamburger chains scramble to adopt enviro-safe packaging. Business-supported tree-plantings are ubiquitous. Ads tout bank officers' community volunteerism. Recycled paper is absolutely everywhere. Public-private partnerships are bettering education.

The Age of Aquarius has hit the boardroom … and we're promoting it in artful advertising.

Cause-related marketing (or, more simply, cause marketing) is the outcome of several intersecting trends. One thing it is not is new; it turned 10 years old last year. As a marketing advantage, it is and it isn't. Cause marketing has evolved from a brave new concept to consumer backlash, to a way of (business) life. Knowing that is the key to doing it right.

The Causes of Cause Marketing

Cause marketing originated at American Express in 1981. In 983, American Express went national with every card transaction resulting in a donation to the Statue of Liberty fund. It was so big that AmEx trademarked the phrase "cause-related marketing."

Cause marketing means highlighting corporate support of a social cause to help promote it (or its products). The most popular causes are social; (e.g., hunger, education) and environmental.

Business has suddenly developed a conscience. Why? Because of who is now in the boardroom. Yesterday's flower children are today's CEOs. Women in management bring a new sensitivity into play. Japanese management devotees understand the long view.

Another reason is the people who are now buying. Yesterday's flower children are today's well-heeled consumers … activist consumers (provided they don't have to go far out of their way).

Finally, in crisis is action, and environmental/social activism has become a personal and corporate business imperative because of the desperate shape our society and planet are in.

From American Express to Amazon Rain Forest

American Express was right - consumers support companies that support causes and are socially and environmentally sensitive.

Then every company in sight got on the bandwagon. But the wildfire spread of cause marketing left people skeptical. After all, buying hair spray with chlorofluorocarbons to save the Amazon Rain forest (a fictitious example … I hope) is an obvious problem.

Minute Maid ran afoul of consumer backlash by promoting tree planting when the product was packaged in throwaway paper-product containers. That looks either cynical or stupid.

Burger King looked opportunistic when it promised part of its sales to earthquake relief in San Francisco. In contrast, McDonald's had been supporting Ronald McDonald houses for years.

Philip Morris took some heat for supporting the 200th anniversary of the Bill of rights because some people thought it was about the right to smoke. It didn't look very altruistic.

As soon as marketing precedes cause, you lose. In cause marketing, the cause comes first.

Why Cause Marketing Is and Isn't a Good Idea

The good news is that cause marketing is a marketing advantage; it helps round out your other promotions by making people "feel good" about your company.

The bad news is that cause marketing is not a marketing advantage; it's old and everyone is doing it. Many, as noted above, are doing it badly.

The starting point is that social/environmental responsibility is a corporate imperative. The very least a company can be, and survive, is socially and environmentally benign. It's a long-term investment. Supporting the community (local and/or global) that supports the corporation is just common sense. And people support companies that support the community.

To be effective, cause marketing needs to be:
  • Genuine; it has to come from a corporate operating philosophy and include real actions;
  • Congruent; it has to logically fit the company's business;
  • Impactful, it has to have a tangible effect; preferably on the local level;
  • Relevant to your constituencies; if your customers don't care, it won't do a great deal;
  • Comprehensive; it doesn't mean planting trees while wasting paper and cardboard;
  • Cooperative; it should support existing programs and maybe unify participants or causes;

If your cause marketing meets the criteria given above (and any others you deem appropriate), then do it … just do it. Do it for the greater good even if it doesn't bring you traffic the next day.

One of the best examples in San Diego is KGTV-TV Channel 10. Committed to community relations, it has a full-time community affairs director. The station creates programs to meet needs and only then seeks co-sponsors. Working with KGTV, it is possible to support a cause (such as education), link up with a major TV station and obtain exposure to a huge audience. That's powerful, as Arnold's Home Furnishings found out with "The Business of Education."

Why? Because, That's Why

Candace Bergen said it best for SPRINT; who cares why they do it, as long as they do. But if good comes first and promotional value is secondary, why do it at all?

Do it because even corporations have to live with the laws of Karma. Actions come back. Just ask companies being bankrupted by toxic waste clean-up costs.

Do it because its best in the long-term and businesses will only make money over the long-term. This is a newly restructured world we're entering. Quick profits are dead. Five-, 10- and 100-year plans will become more attractive outside of Japan. The long-term is the only term.

Do it because if you don't, you'll fail (and deserve to). If you aren't at least as socially and environmentally responsible as your competition, the consumers will kill you with indifference.

Do it to survive. Do good and you'll do better. That can only make business more popular.

First published in SAMM, April 1992.

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