Citizen Brand

Cause a Survivor

AdAge asked me to write a column about cause marketing and branding in a tough economy.  Here it is. Please join the discussion.

Marketing's True Survivor

Why Advertisers Should Turn to Cause Strategies When Times Are Tough

Posted by Mike Swenson on 07.29.09 @ 11:45 AM

       

Mike Swenson

When times are tough, cause marketing can make all the difference in a client's marketing strategy. Mike Swenson, exec VP-chief marketing officer of Kansas City, Mo.-based Barkley, tells why.

If you compare our current economic abyss to a game of "Survivor," with marketing programs vying to avoid being voted off the island, it appears we have a winner. Cause-related marketing might just be the true survivor in this economy.

Anecdotal evidence is everywhere. Entire ad campaigns by major brands range from simple hints about the good they are doing for society to entire campaigns centered on causes and giving back. At Barkley, we have two clients that made cuts in their marketing budgets but did not stop the development of cause programs set to launch later this year.

The primary reason is consumer demand. Giving back is part of the consumer mind-set now. A perfect example is a study from Opinion Research Corp. telling us that 76% of consumers are willing to pay more at the cash register for environmentally friendly products. This debunks the perception that consumers will buy green only if it doesn't cost them.

Our most recent Barkley cause survey, done in partnership with PR Week, brings consumer support for cause marketing into even sharper focus when you consider the female consumer. Since women are responsible for more than 80% of all spending, what women want matters to marketers. Two of three women have purchased a brand because it supports a cause they believe in, and three of four have recommended a brand to others for the same reason.

The headlines tell us that philanthropic giving is down during the economic slump. So why is cause marketing surviving? It's simple: As a person's disposable income drops, his or her ability to make philanthropic donations drops as well. Cause marketing provides outlets for consumers of all financial means to give back, since most programs carry a modest level of donation.

Simply stated, cause marketing is surviving in this economy because consumers not only want to give back but also can afford to do it through cause-marketing programs. And since we see the mountain of evidence telling us consumers will reward companies that offer cause-marketing programs, the reasons not to make cause a part of the marketing mix are dwindling.

The benefits are numerous for a brand that commits itself to cause marketing. One of the most important is the internal impact of support for a cause. When consumers put on their employee hats, they want to work for companies that care. Two out of three CMOs Barkley surveyed in late 2008 said their cause programs resulted in improved employee morale and retention. That was especially true for employees in their 20s and 30s.

A second benefit is directly linked to the troubled economy. We all know that value pricing has its limits. A competitor can always undercut a price point. Think of value a different way. A brand can hold steady on some prices when it adds value to the purchase, such as support for a cause. Consumers will be willing to pay a bit more if they know the product they purchased will support a good cause.

With consumers living their lives more and more online today, marketers can offer a year-round cause-marketing presence, thus reinforcing their status as brands that care. It also makes it easier for consumers to engage with the brand. Our client Lee Jeans has experienced this firsthand through Lee National Denim Day, which supports the fight against breast cancer. Denim Day began 14 years ago as a workplace program using traditional methods of marketing and communication to spread the word. Today, the entire program exists online atdenimday.com, where anyone can form a team, make donations and learn new ways to get engaged in this grass-roots cause program.

Finally, brands engaging in cause marketing can fill a big need in today's economy. Nonprofits are being hit hard right now, which means the people they serve are being hit harder. Nonprofits are being squeezed from all sides. They have less help from government, foundations, direct donations and volunteers.

Combine that with the fact that companies today are searching for any edge they can find to drive business and grow their brands, and it will bring you to a simple conclusion: Cause marketing will give a brand the edge it is looking for and will help the nonprofits collect much-needed dollars to support their missions.

Brand marketers need to ask themselves a question right now: If your best customer asks you what you stand for, do you have an answer? Cause marketing will help give you that answer.

Walter Cronkite

Walter Cronkite was more than just a news anchor. He was a guide for the country through some of our most historic events. He helped us understand the events that were shaping history. He was the model many of us who grew up with him wanted to follow into broadcasting. Walter Cronkite set the bar that all who have followed in broadcasting have yet to reach.

And he was from the heartland of America.

Zappos Review

The marketing community has been all abuzz about the review of agencies being conducted by Zappos. At first, Zappos was going to invite in a select number of agencies but when word got out they were looking, interest grew.  Zappos is a cool brand with great leadership and an even greater culture. And in this economy, winning business is critical.

Zappos received over 100 initial entries and paired it down to 20 or so for the presentations. Full disclosure now. Barkley was one of the finalists. Our team presented on Thursday.

The creative leader at agency Ignited, caused a few waves this week when he criticized Zappos in this AdAge article. All of us in the agency arena have opinions from time to time about all review processes. Some are tightly controlled by third party consultants preventing agencies and prospects from communicating with each other except under their watchful eye. Other reviews appear from the beginning to simply be a brand trying to light a fire under its current agency and then magically the current agency is retained.

Zappos was neither of these. Zappos had a wide open and transparent review process. Anyone could participate and we all knew the rules going in. The people at Zappos have been helpful and honest.

I defer now to one of my Barkley partners who was on our team in the room Thursday to add the postscript.

Toto, we're not in "Africa" anymore

No set up required. Thanks to my Barkley colleague, Robin, for suggesting this video from a jazz choir from Slovenia. Enjoy.

We are Family

My friend and Barkley colleague, Jeff Risley, his wife Amy and son Joe have been on a true life changing mission the past 30 days. You see, Jeff and Amy adopted Joe, now 7, in Guatemala a few years ago and on Monday, fulfill a two year odyssey to adopt siblings from Colombia. On Monday, they return to the USA with Joe, and his new sister and brother Mari and Alex.

Jeff and Amy are two amazing people for sure. We all have been taking the journey with them and I suggest you take a little time to do the same by visiting Jeff's blog, RisleyRanch. Take time to scroll down his blog and start from the beginning when Jeff, Amy and Joe left Lawrence, Kansas and headed to Cali, Colombia to meet the two new members of their family.

We missed you guys and can't wait to have you back home. Thanks for taking us with you!