Green Options

This column highlights the top economic stories of the week.

One way in which today’s corporation is becoming enlightened to the fact that green manufacturing CAN equal more profitable manufacturing is through a new concept called “lean manufacturing“.   In the 1980’s, JIT, or just-in-time techniques became all the rage in management circles as they shaved costs from production by eliminating the need for high levels of inventories by focusing [...]

One thing I didn’t cover last year when I wrote “How to do Cause Marketing Well” is whether cause marketing should even be done at all. But I found that a very interesting question to consider when reading “The Hidden Costs of Cause Marketing” in the Summer issue of the Stanford Social Innovation Review. Angela M. Eikenberry argues that cause marketing is “consumption philanthropy,” connecting shopping with a social good, whereas high-levels of consumption in the developed world could be hurting philanthropists’ efforts to save rain forests, fisheries, etc. And it may be counterproductive in increasing empathy for people in need and a sense of responsibility to help.

Cause Marketing Generally Works for Marketers

I’ve been a fan of cause-related marketing programs (although I typically work with smaller entrepreneurial businesses and not the Project Red and Pink Ribbon campaigns in the market). It’s clear why those of us with a marketing perspective would find a lot to love. As MC Milker wrote in our Network, consumers are interested in products tied to a cause. Since consumers respond, corporations are getting involved. Eikenberry cites IEG Inc, reporting, “Cause marketing expenditures went from almost zero in 1983 to and estimated $1.3billion in 2006″.

But for a moment, let’s think about the perspective of nonprofit organizations and fundraisers (and maybe even philosophers). Eikenberry says cause marketing “devalues the moral code of philanthropy by making virtuous action easy and thoughtless”.

Can Philanthropy Leading to Social Change?

Eikenberry is skeptical of that consumers can right the world’s wrongs. When they are buying and fulfilling their material needs and desires, “they generally have little impetus to consider…’the public good’”. She sites two studies that show that when consumers have bought a cause-branded product they are less likely to make charitable contributions and feel they have “already done their philanthropic share”. So does cause-marketing decrease or increase the amount of money going to charity? ‘hard to know, but it is definitely shifting where the money goes.

Brands across categories, but particularly in the natural products industry are choosing charities with which to align themselves. In most cases this is an exercise in determining what the brand will stand for. The bigger the brand, the larger the charity and the more thought is given to this exercise as seen in the almost perfect launch last year of Clorox Greenworks brand.

…the Gates Foundation is set to expand its involvement and spend more money on influencing popular culture through a deal with Viacom, the parent company of MTV and its sister networks VH1, Nickelodeon and BET. It could be called “message placement”: the social or philanthropic corollary to product placement deals in which marketers pay to feature products in shows and movies. Instead of selling Coca-Cola or G.M. cars, they promote education and healthy living.

Raising a child is difficult enough without having to shoulder the load of school budget cuts or administration downsizing in equipping classrooms with the supplies they need.  Yet a staggering number of schools rely on donations from parents, contributors or out of their own teachers’ pockets to ensure that even the most basic items are in supply.

In an effort to bring this issue to the forefront and create a vehicle for parents, teachers and schools to work together in identifying and securing the contributions they need, WellGood LLC created ClassWish.org, a place where wishes come true everyday in the form of books to art supplies.  So, I reached out to Robert Tolmach, President, whom I’d also had the pleasure of interviewing over the holidays about their ChangingthePresent.org initiative, to learn more about ClassWish and how people can get involved to help advance this important cause.

Environmental Research reports that Cause Marketing can Make a Difference which is good news for social entrepreneurs. A recent survey conducted on consumer packaged goods found that, yes, consumers do prefer and purchase products associated with a charity or cause.

74% increase in actual purchase for a shampoo brand when associated with a cause

(47% of participants who saw the cause-related message chose the brand while only 27% of those who saw the generic corporate advertisement chose the brand)

28% increase in actual purchase for a toothpaste brand when associated with a cause

Triple bottom line entrepreneurs, of course, already know that, or at least have hoped that their efforts to give back will make a difference in sales. But, just giving back isn’t always enough.

Qualitative consumer responses showed that the issue, the nonprofit and the inherent nature of products were key factors in making cause-related purchasing decisions and helped explain why movement in (some) categories was not significant.

In other words, choose well and choose wisely, not only in the non-profit you plan to support, but in how you promote your connection and how you market your product.

Minneapolis-based MusicMatters is proof positive that “marketing” doesn’t have to be a dirty word, no matter how strongly you believe we should all be consuming less, not more.

The music-industry-focused marketing agency says its mission is “Effect Marketing™ (it’s what comes after Cause Marketing).” That means going beyond selling an idea that’s good for the environment or society, and getting people to actually do things that are good for the environment or society.