Will Donating a Portion of Your Price Help You Increase Sales During the Holiday Season?

by: Nit Sujatanond
Fri, Sep 5 2008 9:30 AM

The success of the Avon-Breakthrough *** cancer campaign, alone, clearly demonstrates the marketing power of corporate charitable donations. Not only did the campaign help raise money for cancer research, it also helped Avon reach new markets, boost sales and receive good press. In addition, it motivated the rest of corporate America to embrace cause-related marketing partnerships and recognize the positive effects it can have on both consumer perception and sales.

Cause-Related Marketing & the Holiday Season

Recent studies have shown that the purchase decisions of many consumers can be affected by a business’s philanthropic involvement. So how does this trend in consumer behavior apply during the lucrative holiday shopping season?

Data from a December 2007 American Marketing Association (AMA) study stated that 35% of participants – U.S. Internet users ages 18 and above – were more likely to purchase a product or service during the holiday season if a portion of the price were donated to charity.

The study also went on to say that 53% of these participants were equally likely to make a purchase and 4% were less likely. About 8% of respondents claimed that they do not purchase products or services, and therefore are not influenced, in one way or another, by the mentioning of charitable donations.

These numbers indicate that while the majority of these holiday shoppers will buy a product or service they are interested in, regardless of the seller’s involvement or non-involvement in a cause-related marketing partnership, more than a third of the participants can be persuaded to purchase from a business that promises to donate a portion of its proceeds to a charity.

How to Apply a Cause-Related Marketing Campaign

Due to the growing popularity of cause-related marketing campaigns, most charitable organizations have developed programs for businesses that would like to get involved. It’s often a good idea to choose a charity that is relevant to your business. For instance, if you sell women’s apparel, perhaps negotiate a partnership with a nonprofit organization that fights against ovarian cancer, *** cancer or violence against women. Or, if your business targets parents, look for charities that support children’s hospitals, fight hunger or provide educational tools to underprivileged children. Whichever charity you choose, make sure you and your employees truly believe in it.

Once you have chosen an organization to partner with, determine how much you are willing to donate. A dollar figure (e.g. one cent, one dollar, five dollars, etc.) is often easier to keep track of than a percentage. Also, remember that you are in business to make money, so do not donate more than you can afford to forego.

The final step is to advertise, advertise and advertise some more. Alert your local media. Mention your campaign in your ads. Reserve a page on your business Web site to talk about your partnership. Without consumer recognition of your charitable involvement, your cause-related marketing campaign will not be effective.

Cause-related marketing is a great strategy for boosting sales and brand awareness during the holiday shopping season. Before taking part, perform some research. Your choice of charity, donation amount and marketing efforts can greatly affect the success of your campaign.



Comments

Daphne Christensen
Mon, Dec 29 2008 1:49 PM

As the founder of a non-profit organization, I truly appreciate this article and the author's time in writing about this topic.  Cause-related marketing is huge these days, and goes far beyond the cash register.  Thank you to all who make a sacrifice to share with others.

Daphne Christensen

www.dylanssmile.com

 

reom cheom
Fri, Jul 16 2010 6:40 AM


Interesting read - I think that you provide a good perspective on how people can view marketing in a variety of ways.
Hosting Packages