Wednesday, February 11, 2009

Is cause marketing mainstream or not?


Cause-marketing is, to put it simply, when a non-profit organization and a business combine forces in a good cause. Usually non-profit organization provides PR and business provides ”resources”. A good worldwide example would be Product Red®. It was created to support The Global Fund to Fight AIDS, Tuberculosis & Malaria and includes companies such as Starbucks, Apple Computer, Motorola, Giorgio Armani, and The Gap as participants.

In Estonia some large corporations show their social responsibility mainly during Christmas time, where donations are collected for children, dogs and disabled people. In everyday advertising and PR noise cause-marketing messages do not make a relevant percentage, so they would be noticed enough.

While Estonian people seem to show some compassion only during Christmas or via shock advertising, then in US cause marketing seems to be getting mainstream. According to marketing survey by Cone, Inc. 89% of Americans (aged 13 to 25) would switch from one brand to another brand of a comparable product (and price) if the latter brand was associated with "good cause". The same study also indicated that a significant percentage surveyed would prefer to work for a company that was considered socially responsible. Asked if people hold a more positive image of companies that support causes, 92 percent said, “yes.”

A survey by Golin Harris showed that American consumers cared about:
1. Environment, Pollution

2. Education

3. Energy Conservation

4. Human Rights (e.g. - race, gender, lifestyle)

5. Consumer Rights

Estonian consumers have totally different priorities, which can be seen from the preferences made by corporations choosing partners for cooperation.

One very good and colourful example from cause-marketing in Estonia, in my opinion, would be Kaubamaja, a Department store.

Kaubamaja opened a newly renovated department for youth fashion. The colourful messages in the campaign spread the message of joie de vivre and all the profits from the badges sales go to social entrepreneurial program for youth called SINA. Not only is this campaign positive and full of life, it also carries a social message. People, who are not the target group, walking by and not getting very deep into the campaign, understand this just as a positive thought spread by Kaubamaja during hard times. This is like 2 in 1 campaign, which makes it even more genius, as it first seems.

As some parts of the world have discovered already the positive side of good causes and positive corporate image then let’s hope that in here more companies start to notice others around them also. I m not talking about the large corporations. They know already how to make it work for them. This could be a very good way to position themselves for a medium or small business and get the publicity and recognition needed. Only thing to remember is that the good thought could turn into bad publicity in a second, as consumers smell greediness. Sincerity sells.

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