Cause-Related Marketing

Cause-related marketing links a product or a company to a charitable cause. The funds that are donated to the charitable cause usually come from a portion of the sales of the product. For example, when a person buys cosmetics from Avon, a portion of the sales profit is donated by Avon to support the breast cancer research cause. In this way, causerelated marketing is an indirect form of corporate sponsorship. It is often used as part of an integrated marketing campaign since it relies on advertising as well as public relations.

The concept of cause-related marketing was first pioneered in the early 1980s. One of the first companies to use it was American Express when the company linked its marketing campaign to the refurbishing of the Statue of Liberty. A portion of profits from credit card use was donated to the Statue of Liberty Fund. Use of the credit cards increased because customers felt they were making a contribution to the cause.

The purposes of cause-related marketing are twofold, and the two purposes must be balanced for [Page 119]the marketing effort to be effective. The first purpose, of course, is to increase sales. The second purpose should be a socially responsible effort on the part of the company to support a cause and to be a good corporate citizen. When the second purpose is sincere, the first—sales—is better served.

If cause-related marketing is done strategically, it can be an effective marketing tool that can increase media exposure, help a product cut through media clutter, increase sales by adding an additional benefit to the purchase of a product, and increase the chance of reaching specific audiences. A survey of 2,000 adults in the United States by Cone-Roper found that 78 percent said they would be more likely to buy a product that supported a cause in which they believed. A little more than half (54 percent) said they would pay more for a product that supported a cause they cared about, and 66 percent said they would switch brands to support a cause.

To use cause-related marketing strategically, a company must understand what charitable causes will appeal to the customers the company is trying to attract and, at the same time, find a cause that is a good fit for the company and the product. There must be a logical connection between the cause and the target market for the product, and the cause must be relevant to the consumers. But as important, there also should be a logical and strategic connection between the vision and values of the company and the cause. And finally, the relationship needs to show long-term commitment to the cause.

An example of a company that has used causerelated marketing effectively is Avon. Avon's “cause,” breast cancer research and related support efforts, is a good fit for the company, the product, and the consumers. Part of Avon's mission statement reads “Our dedication to supporting women touches not only beauty, but health, fitness, selfempowerment, and financial independence” (http://www.avon.com). The Avon Breast Cancer Crusade matches the vision and values of the company. It also has an identifiable link to the product—cosmetics—that makes women feel good about themselves. Additionally, the company has shown long-term and genuine commitment to the cause. The Avon Foundation was established in 1955, and in the last 10 years has raised more than $250 million for breast cancer research, education, early detection programs, and clinical care and support services for women. The Breast Cancer Crusade is clearly identified and associated with Avon and Avon cosmetics.

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