Canvas- Edition 3
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1) The document discusses cause marketing and how it benefits both non-profit organizations and corporations. Cause marketing involves collaborations where assets from corporations and non-profits are combined to create social and shareholder value. 2) It provides examples of successful cause marketing campaigns and outlines five steps for effective cause marketing mastery: choosing a related cause, contributing more than money, formalizing the affiliation, and mounting a dedicated marketing campaign. 3) The emergence of cause marketing reflects consumers' growing expectations for companies to play a role in social issues. As cause marketing evolves, connecting a business' purpose to social causes will become increasingly important for engaging customers.
Canvas- Edition 3
- 1. MARQUE! 20 NOVEMBER 2011 CANVAS Cause Marketing The art of Giving...and Winning... A cold in the head causes less suffering than an idea. - Jules Renard Sneak Peak • Where Philanthropy Ends... - Bharadwaj Battaram • Cause Marketing: What it is and what it will be - Team Megarth • Just do it for the cause! - Harsh Gupta • Is it the Answer? - Kushal Lokhande ! PAGE 1
- 2. MARQUE! 20 NOVEMBER 2011 WHERE PHILANTHROPY ENDS... Consumers’ growing expectations of companies make corporate philanthropy more important than ever. Corporate philanthropy can be an effective tool for companies that are trying to meet consumers’ rising expectations of the role businesses should play in society, say respondents to a McKinsey global survey. Corporate philanthropy or corporate giving is the act of corporations donating some of their profits, or their resources, to nonprofit organizations. But it should not be mistaken for Cause related Marketing. They are distinct in that the corporate dollars involved in Cause Marketing are not outright gifts to a nonprofit organization, so they are not treated as tax-deductible charitable contributions. Nonprofits potentially benefit from increased fundraising and exposure. Likewise, corporations that are socially involved potentially benefit from increased brand loyalty and employee morale. According to cause marketing consultant Jocelyn Daw, cause related marketing is a mutually beneficial collaboration between a corporation and a nonprofit in which their respective assets are combined to: • create shareholder and social value • connect with a range of constituents (be they consumers, employees, or suppliers) • communicate the shared values of both organizations In this new era of social responsibility, what a corporation doesn't do can cost it. "Cause marketing" is now the norm, and customers who visit the website and see the advertising want to know that the company shares their desire to make the world a better place by supporting an important cause. Kim T Gordon lists five important steps necessary in the mastery of this marketing challenge: 1. Give from the heart Cause marketing works best when the company and the employees feel great about the help they are providing to a nonprofit group. What matters most to the company, the team and the customers? Everyone works hard to make a difference when they give from the heart. 2. Choose a related cause A solid cause-marketing campaign often starts with the right affiliation. So while going through the nonprofit selection process, look for a cause that relates to the company or its products. 3. Contribute more than dollars For many types of businesses, cause marketing involves donating products or services and not simply writing a check. This can help form even stronger consumer associations between what is offered and the good work done. 4. Formalize your affiliation To make the affiliation a win-win for everyone, the company must work with the nonprofit to define how it will help the business increase its visibility, brand or company awareness. 5. Mount a marketing campaign Success in cause marketing often means motivating an audience to take action, such as making a donation or participating in an event.. Using a dedicated marketing campaign, one can reach and persuade the target group while also raising awareness for the business and its commitment to social responsibility. Like Wade Boggs once said, we live in a world where a positive attitude causes a chain reaction of positive thoughts, events and results. It is a catalyst and sparks extraordinary results. - Bharadwaj Battaram Canvas - Editor IIM Rohtak ! PAGE 2
- 3. MARQUE! 20 NOVEMBER 2011 CAUSE MARKETING - WHAT IT IS AND WHAT IT WILL BE People, not customers or consumers but people bottom-line and community impacts, paving the are what Marketing is all about. What they like way for businesses to create blended value. doing, what they don’t and more importantly why Though it is a well established concept in the they choose what they choose? What is it that developed world, it still has to find a decent footing people base their choices on? in the developing world. For many years in India, Be it Apple’s, “Think Different” campaign or community development goals were philanthropic Audi’s, “Never Follow” ad series, the power behind activities that were seen as separate from business some of the world’s most recognized brands has objectives, not fundamental to them. Times are been the bond that businesses establish with changing fast. people – bond not of a promise or a product but of active participation, of collective purpose. Purpose is what drives people, engages them and ultimately transforms their lives. People seek meaning. People recognize businesses that resonate with their values, start responding in little ways and soon these little ways turn into big ways – meanings become movements, businesses become brands. Tata Tea experienced a phenomenal growth in its market share from 19.1% to 23.5% after the Jaago Re campaign. The campaign touched people and mobilized them to cast their votes, Recently, Pfizer and Times of India launched an establishing Tata Tea as a brand working towards initiative on the World Diabetes Day in 60 the cause of democracy – a people’s purpose. different cities across India. Walkathons, street plays, nutrition camps and several other events were organized with experts advising people to maintain an active lifestyle to avoid diabetes and other diseases. Around 50 top monuments and buildings across the country were lit up blue under the Abbott Diabetes Blue Footprint – 2011 Initiative. Internationally, marketers see cause marketing as the concept that builds brands by promoting their affiliation to social causes people care about. Increasing social awareness and the urge to be a part of social change motivates people to identify themselves with businesses that advocate social causes. Cause Marketing has established that community development and support could be positioned at the intersection of business objectives and societal needs with significant ! PAGE 3
- 4. MARQUE! 20 NOVEMBER 2011 The Standard Chartered Marathon held At Megarth, we create opportunities for annually in Mumbai helps nonprofits to not only businesses and nonprofits, we create opportunities create awareness about their particular cause but for people to seek meaning, to define a purpose in also raise money through the effort. life and to invite more people into active Aircel recently launched the Save Our Tigers participation. We create action zones aimed at campaign, which is aimed to encourage people to serving the needs of people. We call this People’s blog about the decreasing tiger population and stay Marketing. up-to-date with tiger facts. People can also donate There is no turning back now. As Cause money to nonprofits working for the cause. Marketing continues to evolve, “why do you exist – Businesses have started realizing that it is no your purpose in life?” will become one of the most longer about being loosely associated with a cause commonly asked questions by people across the or partnering with nonprofits – it is now about world leading to a global phenomenon – People’s integrating the concern and commitment for a Marketing. cause into business strategy. This shift can be seen as a step towards creating value based businesses that lay emphasis on investing in initiatives directed towards pressing social issues. Founded in August 2010, Megarth stands at the doorsteps of change with a belief in people, purpose, creating actions and transforming lives. Our beliefs represent everything that Megarth is. - Team Megarth http://www.megarth.com/ http://www.disha.ktj.in/ http://www.facebook.com/Megarthdotcom To avail avenues for Community Investment and Cause Marketing contact - Pushkina Nautiyal pushkina.nautiyal@megarth.com ! PAGE 4
- 5. MARQUE! 20 NOVEMBER 2011 JUST DO IT FOR THE CAUSE! Cause related marketing basically revolves 100 percent of the proceeds from Nike's entire around the good we can do for the society and get Livestrong collection go to the Lance Armstrong some good back. It makes it possible for a brand to Foundation and this association is growing emotionally connect with the people because we all stronger year by year! want to do good in our own way and if someone Social cause marketing helps a company create else is doing that we want to be part of that and a differentiated brand positioning, develop a cause marketing makes that happen. stronger customer bond, goodwill, drive sales, It’s possible to run a one-off cause marketing increase market value and enhance brand image in campaign, but companies need to be clear with the market. What else does a brand need? So, Just what their goal is: To make a difference in the Do It!! world? To sell more product? To improve their brand image? Businesses love cause marketing, and the belief is that supporting a good cause translates into stronger sales. Social-Cause Marketing is, no doubt a very powerful communication tool for the brands to stand out in the clutter. The partnerships between brands and charities can increase customer loyalty and help the brands stay in consumer’s minds. It is a way of communicating company’s Corporate Social Responsibility through marketing communications. One crucial point to note is that in any cause marketing campaign, it’s not enough to say that your actions have triggered a donation “to help a hungry child”. Which hungry child? Where? How will this donation help, specifically? This typically comes down to providing compelling stories. Coincidentally, these stories are the ones that take hold and can spark the coveted sharing aspect. And Nike is probably one of the few companies in the international arena which have carried this style of marketing in a nearly flawless way. They have been able to create a ‘larger than life’ image of their brand ‘LIVESTRONG’. Nike's LIVESTRONG is association between Nike and Lance Armstrong Foundation, ‘LiveStrong’. This collection is to increase the partnership’s innovative efforts to raise awareness for the cancer fight globally and expand sales internationally. It started with the iconic yellow rubber bracelets, which since 2004 have generated more than $80 million for the Lance Armstrong Foundation. An example being set by Nike is that - Harsh Gupta IIM Rohtak ! PAGE 5
- 6. MARQUE! 20 NOVEMBER 2011 CAUSE MARKETING - IS IT THE ANSWER? We all are aware of the criticism that the environment, Cause Marketing is something which Capitalists of the world are being subjected to, is cutting through it and reaching its target after the 2008-09 screw-up of the world audience. economies. Critics argue that the corporate have But have we been successful in establishing changed paths and now are exercising profiteering. another channel of resource flow in the form of One can find out the difference between ‘Cause Marketing’ to develop our society? I see profiteering and profit making. In a capitalist another problem here that arises from the fact that world, profit-making is a factor of utmost the term ‘development of society’ is itself a term importance if the society is to be developed. encompassing a lot of things. There is a range of However, it needs to be understood that the things to be done in this society for its betterment concept of ‘Society’ is of aggregate nature here. or holistic development. Here again we face a The profit-making society will develop for sure but problem of scarcity; scarcity of funding from the the benefits generally get allocated profit-makers. Scarcity welcomes economic disproportionately. When we delve deeper into this principles with open hands and again establishes whole system of profit generation and the society laws of so called ‘best utility providing allocations’ benefitting from it, we find that the traditional which heavily depend on the resource master and channel of benefit transfer to the constituents of his/her perception of derived utility from that the society touches the few who may be termed as particular expenditure of resource. So if there are ‘best to get the benefits’. This system has a defect three causes which a company is considering to get that it goes on allocating the benefits to the ‘best’ involved with as a part of its CSR activity, which and gives little chance to other ‘not-so-best’ one would it choose? What will be the basis of constituents of the society and the society is weighing these causes? Will it seek the overall developed at a rate less than optimal and in a way society’s benefit or will it again get carried away by which cannot be termed to be holistic. the notion of getting most for itself out of this Cause marketing has turned out to be a activity? The answer is pretty straight considering channel connecting the profit-generator’s benefits the premise on which the capitalist world works. and the ‘not-so-best’ constituents of the society, An example of a non-deserving cause getting giving them a chance. The effectiveness of this funded at the expense of other important but less channel or link is still under question as there has interesting causes is the 1980’s money raising not been a major organized initiative in this sector. exercise of the Muscular Dystrophy Association. It From the business’ point of view, merely raised tens of millions of dollars despite it having donating funds to a cause through an NGO does lesser developmental chances as the muscular not ensure that they will register themselves with dystrophy is a genetic disorder. In such a situation their target customers. People are wise enough to again, the neediest charities don’t get the funds see through a ‘hey look at me’ campaign. Most of they deserve. Again a problem of channel touch. the campaigns, if you would see today, are subtle in The Solution? Introducing another their approach. But be too subtle and you will lose intermediary in the chain? Government money. This is how corporate views cause regulations? Government watchdog? Nobody in marketing. the capitalist world will work for anything else but It makes business sense for the corporate to get generating profits in whatever form they value: involved in Cause Marketing. Whirlpool and tangible or intangible. So does that mean no Habitat for Humanity’s initiative deserves a intermediary can tackle this problem? Has mention here. Whirlpool provided a refrigerator government intervention in certain sectors been for each Habitat home built in the US. It used this successful in bringing about desired results? as a major driver of brand loyalty with the Reba McEntire campaign. Corporate needs something to make people talk about its brands to increase something called as TOMA (top of mind awareness). In today’s cluttered communication ! PAGE 6
- 7. MARQUE! 20 NOVEMBER 2011 Resources abound, the issue boils down to population, a practice followed by every business, allocation, allocation which is done by valuing the common knowledge range is again drastically utility. Whether we can come up with a better reduced. The corporate again use the marketing allocation strategy will, in my opinion, decide the principles of getting involved with the causes that effectiveness of this new channel of benefit an average person in their target population is transfer, as in the existing channel of benefit aware of so that they can establish a better brand- distribution also, the so called ‘best’ is allocated the connect with their customers while spending as most. less as possible because educating the target Another major problem that I perceive with customer about a certain thing she doesn’t know the whole win-win concept of supporting the requires money and time. causes is of the person driving all these efforts. Cause Marketing, they say, is benefitting our Let’s take a look at the driver of these cause society in many ways. They say it is a channel of funding activities: the target customer. Is she aware resource flow to the real, meaningful societal of the cause she is supporting by buying an development. They say that people are happy that associated brand? How does a person find out by buying a particular brand associated with a which cause to support and which not to? An cause, they are doing their bit to develop their average human being does not even think while society. They say it is a win-win for the society and buying some brand supporting a cause X whether its major constituent, the corporate. I ask all such that cause deserves funding or not. He is limited by people, Is it so? his ken and when you form segments out of a - Kushal Lokhande IIM Rohtak ! PAGE 7
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