Cause marketing is a relationship between a for-profit and a nonprofit that brings in money and resources for the nonprofit, while providing credibility and goodwill for the business. According to the IEG Sponsorship Report, this category will grow to $1.5 billion in the US in 2008.
There are a number of reasons for that growth. A Cone survey found that:
- 85% of Americans say they have a more positive image of a product or company when it supports a cause they care about (remains unchanged from 1993)
- 85% feel it is acceptable for companies to involve a cause in their marketing (compared to 66% in 1993)
- 79% say they would be likely to switch from one brand to another, when price and quality are about equal, if the other brand is associated with a good cause (compared to 66% in 1993)
- 38% percent have bought a product associated with a cause in the last 12 months (compared to 20% in 1993)
As you can see, adopting good causes can be beneficial, but your company's involvement should be planned just as you plan any other business activity. Tomorrow, we'll look at five steps toward developing an effective cause marketing program.