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Show me the New Money
Cause-related Marketing
Julie Irby
Marketing and Outreach Director
Arkansas Educational Television Network
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Definitions of Marketing
The following definitions were approved by the American Marketing
Association Board of Directors:
Marketing:
Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large. (Approved October
2007)
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Definitions of Marketing
Cause marketing or cause-related marketing:
refers to a type of marketing involving the cooperative efforts of a "for
profit" business and a non-profit organization for mutual benefit. The
term is sometimes used more broadly and generally to refer to any type
of marketing effort for social and other charitable causes, including inhouse marketing efforts by non-profit organizations. Cause marketing
differs from corporate giving (philanthropy) as the latter generally
involves a specific donation that is tax-deductible, while cause
marketing is a marketing relationship generally not based on a
donation.
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Different types of partnerships
Co-Branding – Determine the value of your brand and see what
partners you need and who might need you.
Want eyeballs/reach instead of money –same rules don’t apply
when asking for cash gift or underwriting.
Different cause marketing partnerships:
• Access to their audiences (eyeballs, reach)
• In-kind gifts
• Percentages of items sold (t-shirts, Red Cross/Maglite)
• Cash can be part of the deal
• Access to experts, etc.
• A mix of all of it
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Pros of using Cause-related Marketing
Can create new relationships or offer extra benefits to current
relationships (first right of refusal), especially in a struggling economy
Sometimes the dollars come from the marketing budget not the
charitable or other company line item
You work with the PR or marketing person at the company so you get
big bang for your buck (tag their currently running advertising, give you
their spots, their Web site real estate, etc.)
There is not a magic formula for these partnerships – can be flexible
with benefits and types of partnerships. May want to do a MOU.
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Watch out for:
As a state agency, we can’t look like we’re endorsing or pushing people
to ‘shop’ at their store or choosing one company over another
Make sure the company or organization isn’t being courted already and
if so, which sort of partnership works better – cash or cause marketing
There is not a magic formula for these partnerships – can be flexible
with benefits and types of partnerships. Negotiating may be difficult.
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Key Elements for Choosing
a Partner (try existing partners)
•
Review multi-platform strategies to
see how they could fit
•
Define what each partner is
looking to gain
•
Choose partners who have similar
target audiences
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AETN/Lewis & Clark Outfitters Cause-related Marketing
partnership
We needed: access to a particular audience
and a physical location
• Access to outdoor enthusiasts
• A physical location to host events, hand out passports
• In-kind gifts
They wanted:
• A presence on-air
• Statewide eyeballs as they are opening new stores
*Their recent research showed that the #1 thing their customers wanted from
them was information on where to go to do outdoor ‘stuff’. AETN=2 shows
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Getting Lewis & Clark Outfitters on Board
1.
Looked at our current partners, they were already an underwriter
2.
Underwriter set up a meeting with the owner and PR/Marketing peeps
(had proposal that included cash ask)
3.
Pitched our idea and followed up with a 2-page proposal
(after they said they could not do cash option)
Was very one-sided on our part: after they agreed to the
proposal, we kept in close communication as deadlines approached
and kept them well informed. Low maintenance.
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Elements of the Proposal – (see Proposal)
Partnership Objectives
Target Audiences
Partnership Outline –
how partnership will work
Benefits to our partner
Learning: Things we couldn’t do: t-shirt sales, have L&C
take money for memberships, push people to their store
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Outcomes
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Eyeballs: in-store, online, mailing
approx: 50,000+
In-kind gifts: kayak, bike, clothes
($2,500) – underwriting agmt.
Items for our exhibit (backpack, camp set,
tent, sleeping bags, etc.)
Prizes ($1,200)
Expert for our FB/Twitter chats, on-air,
at our events – 785 fans added in nine days
*(2,400 FB fans, 359 Twitter, 35 live chats)
Possible partnership with their school
education program
Partner did not ask for many of their benefits
in the end
Happy partner for the future!