The Growing Clout Of Cause Marketing

In case the plethora of pink ribbon T-shirts, water bottles, sweatpants, hats, key chains, scarves and socks available for sale online and in stores didn’t tip you off, October is National Breast Cancer Awareness Month.

Once on the periphery of public consciousness, the observance has become widely acknowledged in recent years, and this is, in part, due to the soaring popularity of cause marketing.

You’d be hard-pressed to find an industry that has not tapped into the breast cancer awareness marketing trend. The National Football League has even joined the ranks.

Companies have used the brand to sell all types of products, from food and drinks, cosmetics, stuffed animals, jewelry, phone cases and umbrellas, to power tools, handguns and lava lamps.

The “pinkwashing,” as it’s called, is not limited to the month of October. For example, Yoplait each year raises money for Susan G. Komen’s Race for the Cure through its Save Lids to Save Lives campaign.

And although breast cancer awareness is probably the most visible example of cause marketing in the United States, it is not the only initiative utilized by marketing strategists.

Countless other causes and companies have taken on symbiotic relationships in recent years, prompting cause-marketing sponsorship spending to skyrocket.

Experts predict sponsorship spending of this type will reach $1.78 billion this year, up $964 million since 2002, according to the annual IEG Sponsorship Report.

Only about $120 million was spent on cause marketing in 1990, according to the report.

There’s a good reason why this trend is exploding. It works.

A 2013 Corporate Social Responsibility Study conducted by Cone Communications shows 91 percent of U.S. consumers are likely to switch brands to one associated with a good cause, given comparable price and quality. 

According to 2013 Nielson survey results, 44 percent said they would be willing to reward companies that give back to society by paying more for their goods and services.

“The U.S. consumer appetite for corporate support of social and environmental issues appears insatiable,” according to a 2013 Cone Communications Social Impact Study.

Support of cause marketing endures despite the saturation of cause-related merchandise and promotions in the marketplace, and despite controversy surrounding some of the practices.

Critics say these campaigns often benefit the company involved more than the cause, and that some advertisements mislead consumers if they don’t read the proverbial fine print.

For example, a brightly colored label with large lettering might claim a portion of each purchase goes to an initiative. However, many times, the company will only donate a few cents per item bought, and only if the consumer clips the proof of purchase and mails it in.

This type of marketing might make it difficult for the consumer to differentiate between opportunistic corporations that use an initiative to peddle merchandise, and those truly interested in contributing to a cause.

In its Box Tops for Education program, General Mills makes no secret it donates 10 cents to schools for each purchase sent in.

And there’s no limit on the number it will accept.

The company collects twice a year and has given more than $500 million since 1996, said Jeremiah Palmer, marketing manager of the General Mills office in Rogers.

 “Obviously one motivation is to drive sales, but benefitting local schools is very important to us as a corporate team. It’s a win-win,” Palmer said.