Print

Cause marketing is defined as alliances between for-profit and non-profit organizations where corporations promote their products and agree to donate a portion of sales to a charitable organization. According to the Foundation Center, American Express launched the first cause marketing program in 1983 to support efforts to restore New York's Statue of Liberty. Each time someone used their American Express Card, the company donated one-cent to the Statue.

Over the years, cause marketing campaigns have become a common promotional tactic for a range of companies and non-profits. For example, the Susan G. Komen Foundation and various corporations have launched some of the world's most recognizable and successful cause marketing campaigns. Companies generally agree to dedicate a portion of the proceeds generated from sales of their products (which display the pink ribbon symbol) to the Foundation.

Cause marketing campaigns have been shown to increase sales of products associated with charitable organizations and other non-profits. For example, the Foundation Center reports that the number of American Express "card holders . . . grew by 45%, and card usage increased by 28%" during the Statue of Liberty campaign.

In addition, Cone (a cause marketing agency) released a study in 2008 indicating that "cause-related marketing can exponentially increase sales, in one case as much as 74 percent, resulting in millions of dollars in potential revenue for brands."

Popular cause marketing campaigns include:

• Product Red
• MAC AIDs Fund
• Chillis and the St. Jude Children’s Research Hospital

Cause Marketing in Healthcare

A number of cause marketing campaigns are initiated to support health-related causes, including breast cancer research, HIV/AIDS and heart disease. A range of companies, including pharmaceutical firms and medical device companies, have initiated cause marketing-related programs.

Controversy Over Cause Marketing

Some have begun to question whether cause marketing is truly beneficial for charitable organizations. For example, according to Wikipedia, Product Red has "been criticized for not having an impact proportional to the advertising investment, for being much less efficient than direct charitable contribution and for having a lack of transparency with regards to the amount of money going to charity as a percentage of every purchase."

A number of organizations and individuals have launched efforts to curb the spread of cause marketing campaigns. In 2002, Breast Cancer Action created the Think Before You Pink initiative, which seeks to promote "transparency and accountability by companies that take part in breast cancer fundraising, and encourages consumers to ask critical questions about pink ribbon promotions."