Cause Marketing: Forms, Significance, and Inspiring Examples

Have you ever been in a situation where you find yourself baffled by a misunderstanding until you discover that while the people around you are all using the same phrase or the same term, it means something very different to each of them? Such is the case with the term "cause marketing."

People tend to interpret this term differently. Everyone enjoys taking advantage of the "Buy One, Get One Free" promotion. But think: what if you buy a product and come to know that you also bought humanity into society for free? This is what cause marketing is!

In simple words, cause marketing is nothing but a marketing technique opted by the brand whereby it does well by doing well.

What is Cause Marketing?
Significance of Cause Marketing
Forms of Cause Marketing
Examples of Cause Marketing

What is Cause Marketing?

In simple terms, cause marketing is a kind of marketing where a for-profit organization does marketing in a way that contributes to its profits as well as helps in the betterment of society.

Cause marketing is corporate social responsibility (CSR) in nature because a company opts for a promotional campaign that fulfills more than one objective simultaneously. Some of the objectives include:

• Increasing profitability
• Bettering society
• Customer satisfaction

Cause marketing implies the existence of a partnership between a business and a non-profit organization, which is also called cause-related marketing.

It is a marketing strategy whereby the fundraising needs of a charitable cause are undertaken by a brand for the benefit of both parties.

Significance of Cause Marketing

Cause marketing is significant in increasing exposure and awareness for both for-profit and non-profit organizations. Some of the most important benefits of cause marketing include:

• Increased brand recognition
• Increased brand loyalty
• Increased revenue
• Improved social relations
• Increased customer satisfaction
• Betterment of society
• A boost in employee morale
• An edge over competitors
• Positive reviews of the company and press coverage

Cause marketing is regarded as a more favorable option for public reputation. Studies say that most consumers prefer to associate with brands that are linked to a good cause.

Non-profit organizations opt for cause-related marketing techniques as they have the chance to increase awareness of the cause, increase fundraising, and get public support.

Forms of Cause Marketing

The following are the most common forms of cause marketing that must be considered when the marketer is preparing a marketing strategy:

The "Proud Supporter" Method

In this method, the company or the brand gives a flat donation for a specified cause to a non-profit organization. This donation is not tied to the sales of the product.

Donation With Purchase

This approach is one of the most common ones. A donation is triggered in terms of a percentage for each package that is sold within a stipulated timeframe.

Coupon Redemption

A company or a brand donates the amount as per the mention on the code or label provided along with the purchase or which has been redeemed in-store or via any other means.

Donation With Consumer Action

This method does not involve a purchase action. Rather, the company donates a fixed amount of money when the consumer takes a particular action (e.g., sends a viral gift, hosts an event, designs the package, etc.).

Dual Incentive Method

This is a method of promotion in which a company provides an incentive to drive consumer donations (e.g., a donation match, a product coupon, or a discount).

Buy One, Give One (BOGO) Method

BOGO is incredibly popular as it has a greater social impact. In this method, a donation made by a company is measured in terms of comparable social impact.

For instance,

A piece of clothing bought = a piece of clothing donated.

Volunteerism Rally

This method provides an opportunity for both localization and personalization. Volunteerism encourages promotion among the consumers who devote their precious time to supporting some or other social cause for which they are also rewarded with complementary goods or services.

Example: Disney's "Give a Day, Get a Disney Day" campaign

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Examples of Cause Marketing

Some examples of cause marketing are:

Starbucks

Starbucks launched the #WhatsYourName campaign in early 2020, with the goal of depicting a transgender person's transition as they try on a new name. Starbucks is depicted in the commercial as a safe place to do so. Starbucks' partnership and collaboration with Mermaids, a nonprofit that assists young transgender and gender-diverse people, enabled the campaign to grow because it was well-informed.

Nihar Naturals Shanti Amla Hair Oil - Marico India

A famous television commercial casting Vidya Balan for Nihar Shanti Amla hair oil donates a fraction of the amount to promote the education of underprivileged children education. Nihar Shanti Amla has been successful throughout consistently by offering dual benefits of getting great-looking hair as well as doing good for society by promoting children's education.

P&G India

P&G India brought up a project called ‘Shiksha’ in partnership with CRY (Child Relief and You) and Sony Entertainment Television. This project has undertaken the tasks to educate underprivileged children. The campaign has focused working on building schools for easy access to education. Thus, has been consistently fulfilling the aim depicted by the tagline - “Padhega India toh Badhega India”. Every time you choose a P&G product, a part of the proceeds go towards educating underprivileged children.

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Conclusion

The above-stated examples depict that cause-based marketing campaigns are the perfect method for a business enterprise to flourish.

Customers often like to get an overview of the company or brand they choose to buy a product from. They get attracted to and choose such companies that are concerned about societal issues. They begin their buying journey by visiting the brand's website or watching its social media activities and stopping by if they find that the brand stands for certain principles. This makes the brand more approachable and preferable. Thus, cause marketing, when done right, proves to be one of the strongest factors in building a brand community.

FAQs

What is cause marketing?

In simple terms, cause marketing is a kind of marketing where a for-profit organization does marketing in a way that contributes to its profits as well as helps in the betterment of society.

What are the benefits of cause marketing?

Some of the most important benefits of cause marketing are increased revenue, improved social relations, increased customer satisfaction, increased brand recognition, the betterment of society, and more.

Why do non-profit organizations opt for cause marketing?

Non-profit organizations opt for cause-related marketing techniques as they have the chance to increase awareness of the cause, increase fundraising, and get public support.