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What is cause marketing?

By - Apr. 2, 2023

Cause marketing is a type of marketing that involves the cooperative efforts of a for-profit business and a non-profit organization for mutual benefit. The business donates a portion of its profits or provides services to the organization, and in return the non-profit organization promotes the business by, for example, placing the company logo on its website or sending out promotional materials.

A famous cause marketing example can be seen in Uber's 'Move What Matters' campaign. The campaign urged customers to stay at home rather than use its service at the start of Covid-19 lockdowns. The company also pledged to provide 10 million rides and food deliveries to healthcare workers, seniors, and people in need for free during the pandemic. As part of the campaign, Uber created an ad in partnership with Wieden+Kennedy and Prettybird, which saw stuck-at-home filmmakers document their 'new normal' at home, as well as Uber thanking the public for staying at home on behalf of those who had to go out to work.

Other examples of cause marketing include companies donating a portion of profits to charity, holding fundraisers, sponsoring community events, and volunteering for charitable organizations. Cause marketing is important because it helps to raise awareness and funds for social, environmental, and other causes. It also helps to build a strong bond between businesses, non-profits, and their target audiences, which can help to create long-term customer loyalty.

Examples of types of cause marketing:

  • Transactional Campaigns: A corporate donation triggered by a consumer action (e.g. sharing a message on social media, making a purchase, etc.), and Non-Transactional Campaigns: A corporate donation to a cause that is not contingent on an explicit action of the consumer.

  • Point of Sale Campaigns: A donation solicited by a company at the point of sale but made by the consumer (e.g. consumers are asked to round up their purchase or donate a dollar when they check out online or in-stores).

  • Message-Focused Campaigns: Business resources are used to share a cause-focused message. For example, a campaign that encourages behavior change (e.g. don't text and drive), drives awareness about an important cause (e.g. talking with elderly parents about driving) or encourages consumer action (e.g. signing a petition to save whales from captivity).

  • Portion of Purchase: Businesses donate a portion of their sales to a nonprofit or cause.

  • Pin Ups: Primarily for in-house use. Customers will donate and fill out their name on a paper icon, which will then be hung up in the store.

  • Buy One Give One: Businesses will donate a product with comparable value to a designated product based on each sale of that product.

  • Volunteerism: Rather than asking for a donation, businesses will ask if customers will volunteer their time to a certain organization.

  • Digital Engagement: Businesses create a "digital experience" using social media and software engineers to spread awareness and raise funds for a cause or nonprofit.

What is cause marketing?

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