| Greetings!
"Cause Marketing: Altruism or Greed" contends that linking purchases to donations can enable companies to raise prices and increase profits.
From my point of view, the study's findings are reason for optimism because it's a net positive that the marketplace rewards companies that support good causes. The authors emphasize, however, that the research should dissuade consumers and public officials from believing that companies that engage in cause marketing are any more caring than other firms. 
We approached the topic from such different perspectives that I'm afraid Aradhna Krishna, the Winkelman Professor of Retail Marketing at Michigan's Ross School of Business, interpreted some of my initial questions as attacks. Fortunately, we both worked hard to communicate and eventually came to better understand, if not agree with, each other's point of view.
Once again, I'm perplexed. With so many marketing dollars spent on campaigns that appeal to lust, greed or frivolity, why does cause marketing attract a disproportionate share of attention from social critics?
I'm the first to admit many CM programs are flawed in some way -- insufficient transparency being the most common offense. (That's why sharing best practices is a CMF priority.) But even with their imperfections, the overwhelming majority of CM initiatives yield more good for society than would occur if their funding were channeled into a movie tie-in, gift with purchase or other form of marketing.
If you believe that on balance CM is a force for progress, it is critical to learn to make the case for "doing well by doing good".
To start, I suggest you tune into the online dialogue provoked by publication of " The Hidden Costs of Cause Marketing" in the Stanford Social Innovation Review. In my opinion, Professor Jennifer Eikenberry attacks CM based more on her view of how the world should work than on marketplace realities. Our friend Joe Waters got the discussion rolling on his Selfish Giving blog. Check it out and let us know what you think via CMF's LinkedIn discussion area.
David Hessekiel
President
Cause Marketing Forum, Inc. |
| Takeaways from CMF7 |
 In spite of the economy, 300 cause marketers joined us in May for the seventh annual Cause Marketing Forum.
Among the many valuable nuggets of knowledge that I took away:
-- You can't just walk the walk. You've got to talk the talk as well. Timberland has been committed to corporate responsibility for decades, but until recently it was very reticent to trumpet its good works to customers. One factor that has made the company less "bashful": Market research showed that targeted consumers who had been exposed to Timberland's environmental initiatives were more than twice as likely to recommend the brand (20% vs 48%) as those who were not aware.
-- Be careful that celebrities don't attract too much attention. For years, Ford worked with noted designers to create scarves sold to raise money for Komen. Much to the company's surprise, research showed many consumers associated the cause marketing initiative with the designer, not Ford. Ford maintained the fundraising apparel idea, but successfully created its own line to eliminate such confusion.
-- Sometimes great cause marketing programs are hatched in unlikely places. OfficeMax CMO Bob Thacker shared that he and some colleagues cooked up the audacious, Halo Award-winning A Day Made Better program while walking on the beach during a company offsite.
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Cause Sponsorship Forecast Revised |
For the first time since it started issuing annual forecases on sponsorship spending, IEG has offered a mid-year update and, unfortunately, it's outlook is pessimistic.
Based on continuing economic challenges, IEG dropped its overall prediction for sponsorship growth from 2.2% to 1.1%. The company expects cause sponsorship to grow 2.2% instead of the 3.3% it had previously forecast. That would put 2009 corporate cause sponsorship at $1.55 billion. | |
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| Don't Miss |
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Every month we bring an outstanding presentation on doing well by doing good right to your office. Next month we are proud to present:
Wednesday, July 15:
The Power of Cause in a Reset World presented by Carol Cone, founder and chairman of Cone Inc.
Join us as "the mother of cause marketing" shares her views on the state of our field in light of today's challenging economy.
Learn about five critical trends (Value & Values, Core to Business, The New Currencies, Brand Meaning and New Media)that any cause marketer should consider when conceptualizing and implementing programs.
This one-hour session is only $99 (or FREE to members) and includes access to the class recording.
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