Cause-Related Marketing PR

While the term cawe-related markctinghas become synonymous with

any marketing tie-in with a good cause and is often used interchange-
ably with terms such as "social marketing," it origindly had a much
narrower definition based on a deceptively simple principle Brry a
company's product, and it will makc a donatiori on yoqr behalf to some r','crthy cause.
Sometimes the donation is based on label or cor.lpon redemption. Sometimes the pur-
chase of a specific item or a service transaction results in a contribution.
These sponsorships have not only raised countless millions for good causes over the
past thirty years, but they have also been good for business. When consumers become
aware of a companyt inrolvement, they are often more inclined to patronize its prod-
ucts and services. Hence, when American Express decided a few years ago to donate two
cents to homeless food kitchens for each credit card transaction made by its cardhold-
ers, it saw an 8.4 percent increase in its transactions.l The campaign was supported by
advertising, but it was a public relations aaivity to be sure. And it is not
just
the narrow
definition of cause-related marketing that can have this level of impact Firms such as
Ben &
]erry's
and The Body Shop have created legions of lopl customers by paying at-
tention to environmental issues and supporting worthy @uses, regardless of their con-
sumers'transactions. Recent research on corporate reputation might help qrplain why
cause-related activities are such an important part of marketing public relations.
Edelman Public Relations'2004 Annual Trust Barometer2 reported that 7l percent
of consumers in the US and 65 percent of consumers in Europe believe that'being ac-
tive in cause-related initiatives" are an important hctor in d*errnining a comparyt
reputation and in d.iriog trust in the firm. A 1999 Hill & KnowltonlYankelovich Part-
ners suryey of CEOs3 on the benefits of a strong corporate reputation found that 77
percent believed that a good reputation helps sell products and services, and 61 percent
believe that it makes it easier to attract top emplopes. Echoing this sentiment, Debra
Smith, Vice President of Communications for
]P
Morgan Chase Company receatly
said, "People wili gravitate to a name and brand they can trust They want to knot' they
are getting quality service."
$not"odd
Pitfalls for Social Marketing Campaigns
While there is strong evidence that tying marketing endearrois to good causes and good
works makes good business sense, effectively pulling it offis much harder than it seems
at first glance. Take the following examples. They all have the potential to bacldre if not
handled well or if treated as pure marketing activities:
.
A local convenience store runs a promotion announcing that ten cents from the
sale of every hot dog will go to 'Jerry's Kids," and sales of hot dogs go up by 20
percenl
.
A strip mining company sets aside a thousand acres of land as a nature presene
and gains favor with the local legislature that was about to pass a bill to restrict
mining activities.
.
A predominantlywhite-owned hair care products company that has decided to