Cause Related Marketing Works

Businesses and brands constantly search for the most effective means by which to market their products. What messaging should be employed? How can you leverage the position of an influential messenger, such as an athlete, into something even more powerful and effectual? One way is cause-related marketing—the best example of which in the sports world has to be Lance Armstrong. As a recent study carried out jointly by Cone and the Duke University Fuqua School of Business verified, cause-related marketing has the power to increase sales significantly.

The study involved 182 participants and evaluated their experiences reading a regional magazine in which they were exposed to either a generic or cause-related corporate advertisement for several focus brands. The participants were then taken to a simulated convenience store which “sold” various products, including the four focus brands. With real money in hand, the study’s authors tracked the purchasing behavior of the participants.

The results revealed:

· 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 (64% of participants who saw the cause message chose the target brand vs. 50% who viewed the generic corporate advertisement)

The study found, through the participants’ qualitative responses, that the type of issue, the type of non-profit backing the issue, as well as the type of product affected the decisions of the participants. Results of the study also found that 84% want to select their own cause, 83% say personal relevance is critical, 80% think the specific nonprofit associated with the campaign matters, and 77% say practical incentives for involvement, such as saving money or time, are important.

Though this study dealt with the marketing of consumer staples, there no reason why this would not apply to sports marketing. The best and most persuadable campaigns should focus on causes that are generally universally relevant, such as illnesses like cancer or issues of education. They should also have a legitimate and trustworthy non-profit backing them and should give incentives to the customer.