Cause marketing as an advertising tool

Cause marketing or affiliate marketing are seen almost every time we enter a grocery store. We are inundated with pink packages and little cut-out sneakers on our weekly shopping trips.  But, what does it all really mean. In a nut shell, a company is pairing up with a charity or other not-for-profit organization to help promote the organization’s cause.

But, let’s break that down and delve a little deeper.

The good

A lot of not-for-profits, or organizations in general, do not have the means to do a mass campaign to fundraise or raise awareness. So when given the opportunity that another company is willing to spread the word and spend the money, who would say no?

The organization gets a helping-hand to raise awareness or funds – the prime objectives – without having to dip into its own budget.

Why do companies do this, though?

Well, that’s easy:

1. To make a profit
2. To look good

It’s kind of a “well, yeah!” answer. But it’s true. The cynical goal of business is to bring in the moo-la. So, if by pairing up with a charity a company can make consumers pick its brand over another, then that company is going to try to make it happen.

The second reason is mostly for association. Like it or not, when we see a company team up with a charity (especially one that holds a personal connection) we instantly like that company. It’s spontaneous. We have that little glimmer in our head, for however brief a moment, that this company is doing something good. Only later, for some, do we question, why is this company doing this?

How can you resist that penguin?!

And for the same price, wouldn’t you rather buy Dawn’s dish soap that will help save the penguins versus buying Palmolive that will clean your dishes just the same but without the extra reward?

In relation to “lookin’ good.” Cause marketing is the same as a first date.

Why on a date do you dress up? Well, you want to automatically appeal to your date the second he/she sees you. Well, a company wants to do the same with its potential consumer. Does it work? In both cases, yes.

My little Dawn bottle to the right  proves just that.

The bad

The main reason it works is because the company appeals to the consumer’s emotion. How often do those little tuxedo penguins, the eye’s of the starving children in Africa or the ever-exotic, but diminishing rainforest tug at out heartstrings?

According to a Stanford Review article, those images and messages are only a short-term fix for the big problems at hand. This consumption philanthropy that consumers practice when they buy products to go to charities is just reallocating resources (money) that could be put to better use.

The ugly

Cause marketing can “deceive” the consumer. If a $10 item says “Part of the proceed will be donated to _____.” And then you come to find out only two cents was donated, would this knowledge have swayed your buying decision? Would you have gone with a different brand?

Sometimes when companies are using affiliate marketing, they can forget that transparency is still key.

The result

We may end up as philanthropic consumers helping change the world one Yoplait lid at a time or we may be having the wool pulled over our eyes, so to speak.

But either way, some lose and some win.

The winners:

• The charity: promotion and funds
• The company: makes more of a profit and increases its view as a socially responsible corporation
• The consumers: feel as if they are helping to save the world

The (potential) losers:

• The consumers: might pay more for a brand just because of the cause and really isn’t donating too much to the charity

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Moral of the story? Whether a cause marketing campaign falls into the good, the bad or the ugly differs all the time. If you want to make sure your eyes stay wool-free, read the label carefully before you buy it to see exactly how much of your money is going into the pockets of the charity and not the company.

Cause marketing can legitimately impact the world sometimes but there is no rule saying how much of an impact it has to have. Some companies give back more than others. You just never know until you delve a little deeper.

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