Magazine article Marketing

ANALYSIS: Pay-Off Is Clear for Cause Related Activity

Magazine article Marketing

ANALYSIS: Pay-Off Is Clear for Cause Related Activity

Article excerpt

New BitC research shows that backing a cause can be a shrewd strategy for brands.

Speak to anyone in the charity sector and they will be only too glad to tell you how invaluable cause related marketing is when it comes to raising funds and awareness. And while there are some high-profile examples of successful cause related marketing programmes, putting an actual figure on the worth of this marketing activity has so far proved elusive.

That is why Business in the Community started its CRM Tracker survey in March 2002 to look at its impact and investment. It found that more than pounds 33m was raised in cash in 2001. The CRM Tracker looks at 60 cause related marketing programmes, carried out by more than 50 companies, covering more than 45 charities in six key cause impact areas.

Almost half the total was raised by just three programmes: Walkers Books for Schools, Tesco's Computers for Schools and Sainsbury's Comic Relief and Equipment for Schools tie-ups.

On top of the pounds 33m raised, with the help of Initiative Media, BitC calculates there was a further pounds 3m worth generated from the likes of on-pack placements.

This does not include above-the-line advertising.

As Sue Adkins, director of BitC, explained at its annual conference held in London last week, the CRM Tracker will continue to quantify the value of this marketing activity.

BitC has carried out various research programmes to look at the impact and influence of cause-related marketing from the business, charity and consumer perspective. Colin Buckingham, chairman and chief executive of Research International, which carries out research for the organisation, highlighted the compelling arguments this research has provided.

Seventy per cent of chief executives see corporate social responsibility as essential to their business, while 77% of chief executives and marketing directors think cause related marketing can enhance corporate or brand reputation. …

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