Benefits of Cause Marketing
How Businesses Can Grow with Charitable Partnerships
In this partnership, both entities engage in joint-marketing efforts to increase awareness and raise money.
As consumers continue to favor companies that develop and promote charitable relationships, participation in cause marketing is expected to increase. In 2009, funding for cause marketing in the United States is predicted to grow 3.1 percent to $1.57 billion, according to the IEG Sponsorship Report.
The (Product) RED campaign, which kicked off in 2006, is among the most notable cause-marketing campaigns in the nation. Mega-corporations such as GAP, Motorola, Converse, Apple and Armani all created and marketed red products. Profits from these red products went toward programs that combated AIDS in Africa. This cause-related campaign greatly increased AIDS awareness and funding in third world countries, and the companies involved received public recognition for their charitable efforts as well as increased sales.
Win-win relationships like those developed in the (Product) RED Campaign can happen in a number of ways. Here are four of the top benefits for businesses that engage in cause marketing:
Cause Marketing Helps Businesses Become Community Partners
Many successful companies have developed mantras of “doing well by doing good.” These companies consider it a duty to give back to the community, and they do it willingly. Becoming a community partner is a respectful way to conduct business and admired by other companies, competitors, the public and employees.
Consumers Value Businesses with Charitable Partnerships
Consumers in the U.S. are attracted to brands and companies that are known for developing cause-related relationships, as shown in the 2007 Cone Case Evolution Study:
- 86 percent of survey respondents said they want to have businesses in their communities that are committed to social issues
- 66 percent want to invest in companies committed to social issues
- 30 percent have told a family member or friend about a product or company after hearing about a company’s commitment to social issues
Cause Marketing Builds Responsible Brands
Companies that align themselves with charities receive increased brand exposure that’s viewed positively by the public eye. Responsible brands can help small and large businesses create a competitive advantage through the community-centered image.
Employees Want to Work for Companies that Support Causes
Community support for charitable causes filters down to individual employees. The Cone survey reported that 72 percent of employees wish their employers would do more to support a cause. This is a 38 percent jump from a similar Cone study in 2004.
Cause marketing creates win-win relationships for businesses and charitable organizations. Results from recent studies reflect support from the public, clients and employees. Companies interested in learning more about cause marketing can visit, the Cause Marketing Forum for a list of resources, workshops and conferences.
Cause Marketing Creates Win-Win Relationships
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