Citizen Brand

Cause keeps on ticking

The 2009 edition of the PRWeek/Barkley Cause Survey released this week sends a clear message that cause branding programs work even in tough economic times.

That's good news for all of us who believe that cause programs are one of the single best ways for a brand to create permanent connections with their customers. And good for non-profits who are hit hard by the economy and need new, effective ways to gain dollars and volunteers for their missions.

You can download a copy of the 2009 survey at the Barkley website. We would love to hear your comments on the findings and the accompanying article featuring some of the most successful cause marketers today.

Denim and five bucks: a powerful duo

Friday, October 2 is Lee National Denim Day and registrations are pouring in from all over. If you haven't registered, you can do so right now at http://www.denimday.com

Register yourself, your company or organization or form your own team. It's easy to do. And you can see what your donation does in the fight against breast cancer here. 

And if you happen to be in the Kansas City area on Friday, October 2, head downtown to the KC Live venue in the Power & Light District and see our 2009 Ambassador, Christina Applegate. The public celebration starts at 3:30.

The power of denim and five bucks is a wonderful thing.

Doctors Without Borders

Doctors Without Borders is an incredible organization. The docs and nurses who volunteer their time and expertise go into the most deplorable and dangerous places in the world to help people in need of basic medical care.

Their new ad campaign may be as stark and real of a portrayal of what they experience as any of us will ever see. It has been running in theaters in the UK and has sparked much discussion. I say bravo for telling it like it is. See for yourself and let me know what you think.

Marketing spend on cause up!

In the midst of marketing budgets being slashed this year, we have incontrovertible evidence that cause branding is the go to strategy in this epic economic downturn. Aaron Baar tells us in this story on Mediapost.com.

The economy may be causing marketers to scale back on expensive, high-production efforts, but one area is still likely to see some growth this year: cause marketing.

According to IEG, North American companies will spend about $1.55 billion on cause marketing efforts in 2009, a roughly 2% increase over 2008. That is down from previous year-on-year increases in the cause marketing arena, but in the current economic climate, any increase in a marketing program is worth noting, says Dan Kowitz, vice president of IEG Sponsorship Consulting.

"As consumers, if there's anything we want to see a company spend money on, it's a cause that's important to us," Kowitz tellsMarketing Daily. "And marketers know that."

As evidence of consumer interest in sponsorship, Kowitz cited a Performance Research survey from February 2009 in which 41% of Americans said companies should increase their spending on cause marketing, compared with 13% who said they should increase spending on sports sponsorships and 20% who said they should increase sponsorship of cultural events.

Plus, cause marketing is generally cheaper than sports sponsorships, Kowitz says. Mott's, for instance, has said it will contribute up to $134,000 (the equivalent of feeding one million people through the Feeding America non-profit), which is much less expensive than the many millions it might cost to put a company's name on a sports arena.

"When you talk about subjects outside of sports, they come at a much more cost-effective price-point," Kowitz says.

Cause marketing, however, can be tricky, particularly among a public that has grown jaded and cynical, Kowitz says. The key for marketers boils down to one thing: authenticity."

"Companies have to do this in an authentic way," he says. "You can't claim to be a green sponsor just by putting your logo on a recycling bin."

And with consumers more empowered than ever to find and call out companies on how their business practices don't live up to their cause-marketing initiative, companies have to put a lot of time and effort into their chosen programs, Kowitz says. The good news is that many marketers have caught on and are living up to their promises.

"Companies have done a better job [with cause marketing] than in the past 12 months," Kowitz says. "What they could have gotten away with six years ago, for instance, was to throw money at something and say they're supporting it."

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.

Because it's the right thing to do

There has been a great debate raging across the 'sphere and Twitter today regarding cause marketing. It was instigated by a Stanford professor who wrote this piece suggesting that cause marketing should be renamed "consumption philanthropy." Here is one excerpt:

"I disagree with this assumption. Consumption philanthropy individualizes solutions to collective social problems, distracting our attention and resources away from the neediest causes, the most effective interventions, and the act of critical questioning itself. It devalues the moral core of philanthropy by making virtuous action easy and thoughtless. And it obscures the links between markets—their firms, products, and services—and the negative impacts they can have on human well-being. For these reasons, consumption philanthropy compromises the potential for charity to better society."

While the professor had much to say about cause marketing, this paragraph jumped out at me. Especially the notion that cause marketing devalues the moral core of philanthropy by making virtuous action easy and thoughtless. I take great exception to this.

To the contrary, cause marketing adds great value to the moral core of philanthropy because it can make it easier for anyone to take a virtuous action and support a cause that is important to them. And it certainly is unfair to call a person's engagement with a cause program thoughtless. I think of the hundreds of thousands of people who put on a pair of jeans in October and give five dollars to fight breast cancer as part of Lee National Denim Day. Their simple act of wearing jeans is not thoughtless. In fact, it turns the simple and frequent act of wearing jeans into a truly virtuous act that for one day is made something very meaningful.

I also respectfully take issue with Professor Eikenberry when she says cause marketing compromises the potential for charity to better society. Just the opposite, the power of a brand and a nonprofit teaming up to shine a bright light on important causes can do more to raise people's awareness of the needs around them. With greater awareness comes the potential for greater financial support for the cause and the betterment of society.

What I want to thank the Professor for is sparking interest in cause today. I appreciate her perspective and want her to know that those of us in the cause arena work diligently every day to make sure the programs we develop and execute are working to make the world a better place. 

Denim Day kickoff

The new and improved Lee National Denim Day website launched in the wee small hours this morning. A big thanks goes out to many of our partners at Barkley for burning the midnight oil to make our kickoff deadline.

For our clients, Lee Jeans and the Entertainment Industry Foundation , this is an important launch. This is year 14 of the program and in a troubled economy, Denim Day is the kind of grassroots program that anyone can participate in. Wear your jeans on Friday, October 2 and pay five dollars to help support specific research being done by the best researchers in the world.

We have a very special ambassador this year. It is our first Denim Day alum to do a return engagement for us. Christina Applegate helped us with Denim Day the first time in honor of her mother's fight against breast cancer. This year, Christina is doing it for herself as she battles back from her own bout with the disease. And she is representing survivors everywhere, as you will experience when you visit DenimDay.com.

Now is the perfect time to sign up your company, civic group, Scout troop, religious group, school or start your own team of family, friends and neighbors. Five dollars can make a difference.

Does your cause program have a "tree seedling?"

I had the honor of being asked to do a column for PRWeek's edition this week. I thought I would share it here for people who aren't subscribers to the magazine. I would love to hear your thoughts on what I discuss.

-------------------------------------------

Will the economic downturn stem the rising tide of cause branding? We hear that question a lot these days. The answer is no. Cause branding, in fact, is growing as more and more companies realize the benefits that doing good can bring to their business. However, the downturn has caused more consumer skepticism about business in general. Although cause continues to grow, this skepticism could slow it down if cause programs are not authentic and transparent.

Every community in America has a critical universe of philanthropic families that provide financial support for the unique causes that form the social and cultural foundation of that community. In Kansas City for example, we have the Kaufmanns, the Helzbergs and the Halls among others. Each of these families is frequently called upon to provide their financial support and personal endorsement for our city’s most important causes. They do not make their decisions hastily. They give their support only after fully understanding what the specific impact of their donation will be.

While cause branding programs do not replace the work of the great philanthropists among us, there are important lessons to be learned from the careful approach they take before making decisions. Corporations involved in cause branding today and those contemplating it in the future should consider the same approach in developing and executing their programs. In particular, companies need to make sure their cause branding programs clearly and specifically communicate what the money being raised is going to accomplish.

It is critical today that each time a company asks a consumer to either purchase a product with proceeds going to a cause or make a straight donation to the cause, the consumer knows what their money will do. The more specific, the better it is for the company, the consumer and the success of the program. Now we know there is a slight difference in the amount of donation being made by our civic philanthropist and our consumer engaged by a cause branding program. But why should there be any difference in making the consumer feel as good about their donation as the philanthropist? That’s a trick question of course. There should be no difference.

Consider this partnership announced recently between Coca-Cola and Stater Bros. Supermarkets in southern California. The two companies, neither of which are a Barkley client, are combining efforts to plant up to 1 million tree seedlings in two California state parks. It is part of an overall effort by the California State Parks department called “Reforest California” to replant thousands of acres burned by wildfires in recent years.

The campaign runs through May at all 166 Stater Bros. stores. Money will flow from two sources. Customers will be asked at the checkout counter if they want to contribute and Coca-Cola will donate $1 for every $10 of purchases of its products sold at Stater Bros. stores. This is a simple and direct approach. Every customer knows their checkout donation or their purchase of Coke products will plant a tree in one of two state parks in their area.

Companies and nonprofits need to use this program as a guidepost. When you ask your customers to get engaged in your cause program, can you tell them exactly what their donation will do? If not, you need to stop and ask a simple question. What is our “tree seedling?”

 

Thanks Nicole

KaBOOM looking for play spaces

What a cool idea that helps many good causes. KaBOOM is looking for 100,000 play spaces in the next 100 days. And if you identify one, you can help a cause of your choice too.  Check it out here.

Thanks to my Barkley colleague, Celeste, for the tip.