Opinion: Cause-related marketing leverages nonprofit money

In tough economic times, donations drop, government budgets tighten, and grants become more competitive. Service and awareness must remain high to make nonprofits viable; the priority is always the service.

Finding the balance between service and awareness is difficult, but the concept of cause-related marketing shows a balance can be found.

Cause-related marketing unites for-profit business with the cause of services provided by nonprofits. High-profile partnerships, such as The Lance Armstrong Foundation and Nike, American Cancer Society’s Relay for Life and McAlister’s Deli, and Avon’s crusade for breast cancer research and awareness show how cause-related marketing works.

For instance, Nike has developed the 10/2 cycling apparel line, named after the month and day in 1996 Armstrong was diagnosed with cancer. For each 10/2 product sold – the most popular item is the yellow LIVESTRONG bracelet – Nike donates $1 to Armstrong’s foundation to support those living with cancer.

Similarly, Avon has raised and donated more than $400 million since 1992 to fight breast cancer.

A ton of work goes into bringing these partnerships to life, but service remains high and awareness is even higher.

Celina Shands Gradijan of Full Capacity Marketing spent time with the Missouri Association of Workforce Development during the annual conference April 3–5 at Lodge of the Four Seasons on Lake of the Ozarks. She discussed the value of these partnerships by asking three questions: What is in it for the business? What is in it for nonprofits? And, why is involvement crucial?

What is in it for the business?

Eighty-three percent of Americans have a more positive image of companies who support a cause that they individually think is important. Sixty-six percent of those surveyed have more trust in companies associated with issues of social concern. When price and quality are equal, nearly two thirds of the general public said that they would switch to a brand associated with a good cause.

Consumers expect businesses to commit to moral causes and believe it is good business practice to participate in cause-related marketing. These statistics show a business can increase its profitability, improve its productivity, and raise its perceived value.

What is in it for the nonprofit?

The answer to this question is clear: the nonprofit increases its market awareness, raises its market penetration rates and leverages a higher return on investment with little or no money spent. The nonprofit is responsible for maintaining a clear and open relationship with its partner businesses earning the opportunity to carry out its objectives, focusing its scarce resources on the services associated with its cause.

Why is involvement crucial?

Resources are limited, and effective partnerships extend resources allowing the partners to get the most bang for their buck. Businesses are short on manpower, and nonprofits are short on money.

Effective partnering creates a win-win situation. For both sides of the partnership, important questions need to be asked:

• Who are you trying to reach and why?

• Who are potential partners, sponsors or community groups, and what would they contribute?

• How would this project idea benefit everyone involved?

• What are the roles for each partner?

• What is the budget for this project?

Addressing these questions will allow you to see who would be effective partners. Shands said, “Remember, you have to get enough people on board to move the train.”

At the Missouri Career Center, we’re trying to model this partnering method.

We are working with Missouri’s Statewide Marketing Taskforce, chartered to improve the image of the public work force system. This team of marketing practitioners from all the regions from Missouri and the state work force agencies, meets quarterly to develop marketing guidelines, training/desk aids and marketing campaign best-practices. Shands met with this team at the conference as an information share/strategic planning discussion.

We anticipate increased awareness of the services that the public work force system can provide; helping businesses decrease human resource costs by brokering qualified applicants to job needs; and helping businesses access skills development and tax credit opportunities.

In our industry, we talk about “being the best-kept secret” by becoming a catalyst of change. This allows both the nonprofit and the business to gain more visibility.

Is your business a best-kept secret, too? Small businesses don’t always know what avenues to take or what service opportunities are available to them.

How do you plan to build your business’ future? Do you need to take a look at cause-related marketing opportunities in your local region and not only get on board the train but become the engineer? Do you have a ticket to ride? All aboard!

Josh Brown and Holly Cuoco are work force development specialists for the city of Springfield. They work at the Missouri Career Center and can be reached at jbrown@jcocmis.org and hcuoco@jcocmis.org, respectively.