Cause marketing is an increasingly important marketing tool for businesses
A company’s brand and reputation influences customer perception and there is a growing link between social impact and financial performance. Consequently, companies must take a more strategic approach to securing their bottom-line benefits by aligning their marketing goals with their social objectives to meet the growing demands of consumers, communities and society at-large.
According to the 2012 Edelman Good Purpose study, over 64% of global consumers believed that it was no longer enough for corporations to give money and that good causes must be integrated into their business operations. Six years later, another study by Edelman (2018 Earned Brand study) revealed that the same percentage (64%) will buy or boycott a brand because of its position on a social or political issue. This shows that consumers are no longer buying based on their wallets but on their social values as well.
While businesses traditionally give back to society through various philanthropic activities that is often demand-driven and focused on building brand awareness, this is no longer sufficient. Consumers are demanding that businesses do more than give charitable donations, provide sponsorship, engage in employee volunteering and contribute to nonprofits. Consumers are also looking closely at how a business impacts society and our planet. They want to know what know what the business stands for and they are engaged in responsible business practices.
Businesses acknowledge that they can no longer support social and environmental issues based on personal relationships and preferences of senior management or causes that are not associated with their core business products for fear of being perceived as self-serving. They are now under pressure to take a more strategic approach to corporate giving which is embedded in their corporate strategic and identity.
Cause marketing, also known as cause-related marketing is an effective marketing tool that provides a company with an appropriate tool to align…