Tweet

Ten Tips to a Mutually-Beneficial Cause Marketing Program

Guest post by: Geri Stengel

Article Overview: Learn how your business have a positive social impact while differentiating itself from the competition through a mutually-beneficial cause marketing program.

Ten Tips to a Mutually-Beneficial Cause Marketing Program

Cause-related sponsorship is a strategic positioning and marketing tool that links a company or brand to a relevant social cause or issue for mutual benefit. According to the International Events Group (IEG), spending on cause marketing is projected to increase 7.5% in 2004 to $991 million. Nonprofits benefit from cause marketing because they get needed financial help, technical assistance and volunteers, among other things. For corporations, supporting a cause can influence consumer buying behavior and loyalty and is a way to differentiate a company or a brand by taking on a social issue.

1) Assess Your Readiness: Determine if you are business-friendly. The cultures of nonprofits and corporations are vastly different. To prepare your organization to work with corporations, you may need to add business people to your Board, invest in training for staff or create procedures for fast-tracking decisions.

2) Understand Your Value Proposition: Determine which assets/capabilities that may be of value to corporations:

• having an excellent reputation and powerful mission, so that the corporation enhances its creditability by virtue of affiliation
• providing recognition, endorsements or awards
• gaining access to prospective customers of the company
• having access to programs, projects and organizational expertise
• distributing products, such as books or pamphlets for use as incentives or giveaways

3) Know How and Why a Corporation Chooses a Cause: Consider what types of companies would be most likely to benefit from associations with your organization and respond to your value proposition. Corporations seek to address an issue that will be of particular concern to their core constituency. The more money a company ponies up, the more likely they will want a proprietary stake in their investment. Frequently, corporations seek visibility though the media, so the cause needs to address a newsworthy issue capable of generating adequate coverage. When dollars come from a marketing budget, as opposed to a public or community relation, it is likely that the corporation will want the cause to help them reach specific corporate objectives such as increasing brand loyalty or sales. Other benefits companies may seek include:

• Enhance corporate/brand reputation by positioning it as a responsible, caring company/brand
• Differentiate the corporation/brand
• Enhance employee recruitment and retention
• Expand opportunities for employees to practice leadership and management
• Increase access to markets

4) Pick a Partner Wisely: Does your mission match the goals of the corporation? The relationship must be mutually beneficial. Does the corporation have a solid reputation? The relationship must generate positive impact for you as well as them. Does the corporation have a tradition of philanthropy or is this their first initiative? Look beyond the obvious benefits of money, business expertise and volunteers. Corporations can often provide introductions to other businesses, marketing outreach and in-kind services (product, services, facilities, etc.) that are free or discounted. And of course, is the timing right? Acknowledge the importance of chemistry.

Do due diligence to find out about the corporation's goals and reputation. Review annual reports, financial statements and press clippings to ensure that the corporation is ethical and reputable.

5) Identify Critical Issues: Recognize that nonprofits tend to move slower, need to build consensus and are tighter with a dollar. Their bottom line is social return. Corporations want financial results. Meshing the two can be difficult.

6) Manage the Relationship and Expectations: Nonprofits and corporations have different cultures and don't always "speak the same language." Respect each other's culture. Listening to each other, having an open and honest exchange of ideas and expectations and continually updating each other is critical. Explore what the relationship will look like, how it will run and what results it will produce. It is important to educate corporate partners that it is not always about driving sales in the short term - it is about building relationships for the long term. Get support from senior management on both sides.

7) Develop a Game Plan: Determine the scope of the relationship (paid, in-kind, volunteers, marketing outreach, introductions, etc.) and develop costs, timelines, roles and responsibilities.

8) Measure Results: Jointly establish objectives. Measure performance against those objectives by determining the performance metrics that will help the corporation demonstrate success and encourage continued commitment.

9) Develop Marketing Materials: Cover the topics of how you do business, who supports you, how you are governed and the results you've achieved. Be informative but don't overload the client with details about your organization. Invite potential partners to see you in action.

10) Get a Referral: Having the door opened for you will save time and energy. Scour your networks to identify people who can introduce you to targeted companies. Your network includes your Board, staff, friends, friends of friends and volunteers. Do cold calling as a last resort.

Related Articles
  Tips For Building A Profitable Affiliate Marketing Business
  5 Affiliate Marketing Tips To Stick By To The End
  Are you a Guerrilla
  How to Make Money Selling Other People’s Stuff
  An Unparalleled Internet Marketing Program

Article Tags: cause marketing, entrepreneurship, nonprofit, small business advice



Related Forum Posts
Business Tips - How about: Tips for managers to handle employees more effectively? Tips on how to deal with difficult customers? Tips on how to deal more effectively with suppliers? The only three I have in mind right now, but will try to come up with something else. Chris
Re: How to develop sales contacts? - Everyone has the right idea here. Depending on your business, there are different techniques that you could use. For consultants and sales heavy businesses, there are three tactics that I have found especially useful in my business: 1. Attend Networking Events 2. Cold Calling 3. Referral Program 4. Affiliate Program (most successful) The affiliate program was successful for me, as I hooked up with a franchise consultant, and he gave multiple unit businesses that needed my credit card processing services. I highly suggest you hook up with a sales partner, and give him a cut of the monthly revenue.
Ryerson or McMaster? - It's true McMaster probably does have a better reputation than Ryerson but after you graduate I don't think when you go to an interview the deciding factor will ever be the university you went to. At least that was true in my case. I went to Ryerson and did their Technology/Business Program. I was employed the very next day after graduation not because of my grades (though that helps during co-op) or the fact that I went to Ryerson but because of what I brought to the table in terms of experience (part-time jobs I held while in school), social skills (verbal and written) and my goals. Since 2003 I've worked in Marketing, Content Management and Consulting. The Marketing program at Ryerson has some good classes and topics within it but entreprenuer on your resume if you plan on getting a job after graduation is going to be a tough one. BUT you can get around it by focusing on the classes you've taken and how you can apply them to any business. I believe true Entreprenuership can't be learnt in a classroom by a Professor who's never been an entreprenuer (not saying the profs at Ryerson were never an entrepreneurs - some of mine were). It has to be learnt in the field. If your move to Ryerson means you will be out of school faster, can take a 3 month vacation (which I missed out on but am planning for next summer) and then get a job or start your own thing then it sounds like a good deal to me BUT you need to decide.
Re: What is your Business? - We are running a Online Marketing Firm and we have some good clients to which we are offering a complete Digital Marketing strategy like Search, Mobile Marketing, Branding and Design. I think in Online Marketing company online presence can be a wining factor for the success of the company.
Re: Let’s talk about the ways of marketing your products, servic - I agree with some of the others who responded it depends on what your selling... but to answer your questions here are some of the methods I use. Forum Marketing Yahoo Answers (I need to use more of) SEO (Search Engine Optimization) Bum Marketing or Article marketing P-P-C (Pay Per Click) Marketing Online Directories Hope this helps.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Sales Flubs

How to develop the best lateral thinking skills

Remind Me...

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.