Mark Wilson

Why Cause Marketing is good?
Business
Improves reputation – differentiates brand
Stimulates brand loyalty and preference
Increase positive brand exposure to consumers – leads to favorable treatment from stakeholders and consumers
Increase bottom line
Consumers view brand more favorably if they are connected
Helps gain and retain more employees
Many companies take advantage of the halo effect

Charity – Non profit
Helps consumers gain awareness
Added publicity and advertising
76% of consumers believe cause marketing gives brand more positive image

Consumers
Easy access to support causes
Allows to contribute and engage through consumption
86% believe companies should be paired with cause marketing
66% want to invest in these companies

Benefits consumers AND the cause or community. Businesses also benefit from it being present.

Why Cause Marketing is BAD!
Has gone above corporations and companies getting together. Social media is a good way to raise money.
Cause clutter is now being created. People are just donating through buying, not donating alone.
Deaths caused by breast cancer have not gone down, despite all the money
When a company picks a charity to provide a donation – the managers pick it based on tax savings. 40-45% of writeoff from gift.
Lack of synergy
Retailers taking advantage of charities, no way of saying what percent are donated
Companies doing it for themselves, create profit, rather than awareness of the cause
100 Million spent on advertising a donation campaign, but only 18 Million went to charity, why not the entire 100
People forget about the cause, just buying
Disease rates have not changed, but cause marketing has grown exponentially
Just a marketing ploy to raise awareness FOR the company

The Results
It seemed like the results of the debate today were fairly one sided that cause marketing is GOOD. There were some good points raised on the negative side, but overall the discussion appeared to promote the benefits of cause marketing.

I found that while yes, maybe businesses are trying to benefit themselves as well, they are still contributing to a charity. Many people aren’t going to donate in the first place, so having them donate through a purchase is a smart way of promoting charities. This helps raise funds for charity, markets the involved business, and allows people to feel good about themselves, at times relieving some cognitive dissonance post-purchase.
Some individuals might have donated regardless of the incentive and given the charity 100% of each dollar, instead of (let’s say) 75%, but then some people would have never donated. The people that wouldn’t have donated sort of negates the dollars sacrificed by those getting something in return. Besides, those getting things in return can always donate more if they do so please.

Being that not only do the businesses gain, but so do the charities and the public, I believe that Cause Marketing is a great tactic that should be encouraged. However, this should be used wisely with authenticity. Because of the noise experienced from many companies jumping on the bandwagon of charity cause marketing, the public can usually see through the weak supporters. Having a strong drive to support the associated charity helps maintain an authentic concern for others. This can be a great marketing tactic and help a business thrive both in market awareness and ethical standards.