Nearly nine in ten consumers (86%) say they are more likely to buy a product associated with a cause, when price and quality are equal, and seven in ten (73%) will switch brands. Six in ten (61%) say they will even change retail outlet if it is associated with a good cause. The findings come in new research on consumer attitudes, published on November 12 by Business in the Community. The survey was conducted among a nationally representative sample in July by BMRB with Research International and also sought to test the realism of these claims: the numbers dropped to one in three who had actually bought a product or service in the previous year because of a cause association. Just under two thirds (64%) of consumers say they will pay a little more if they care about the cause, with one fifth willing to pay 10% or more.
In testing public attitudes to corporate social involvement generally, Business in the Community found that large companies were rated third behind central and local government in having responsibility for helping solve society’s problems, but above charities, local community groups, individuals and churches. Within companies, utilities are given most responsibility, followed by financial institutions, professional groups and manufacturers. The full findings are published as The Winning Game, price ?145, with a video and survey of attitudes in companies also available. Contact Amanda Tudge, BITC, on 0171 224 1600
MISSED MARKET OPPORTUNITIES
Companies are losing sales and well-qualified job applicants because of poor product marketing and exclusive corporate images. While high street stores like Boots, Marks & Spencer and Littlewoods have done best to engender positive attitudes among minority ethnic communities, some marketing campaigns have been misinterpreted, with the Halifax, Guinness, First Direct and Persil specifically cited.
These findings come in research funded by the Midland Bank, British Airways, BT and Lloyds/TSB and published in November on the first anniversary of Business in the Community’s Race for Opportunity campaign. The study showed a spread of attitudes, with age, education and family history often more important than ethnic origin alone, so companies need a discerning, not stereo-typical, approach. Contact Nancy Haque, BITC, on 0171 224 1600
CREDIT TO THE CAUSE
The last two years have seen a resurgence in interest in charity affinity card schemes, as a result of increasing competition in the credit card market, according to a study by Stafford University Business School of 30 leading schemes. Around 5% of the 30 million cards issued in the UK have an affinity link, with Bank of Scotland as market leader. Four schemes have already raised more than ?1 million, with terms typically ?5 when the card is issued plus 25p per ?100 spent thereafter. The majority have fewer than 5,000 participants. Contact Steve Worthingotn, SUBS, on 01782 294144
SPONSORED RUN
The 1996 Flora London Marathon raised £726,000 for the British Heart Foundation from runners and other activity, including a national on-pack sales promotion by Flora, official sponsors of the event, which generated £290,000. The campaign included TV advertising and a 10 million leaflet drop. It was announced on October 24 that the partnership will continue for the 1997 Marathon. Contact Rosie Launder, BHF, on 0171 935 0185
OLD SOLES WANTED
Nearly two million pairs of shoes are thrown away every week in the UK, but disposing of them through one of 500 Mister Minit or Gullivers shoe repair shops can raise money for the British Red Cross. Over the last two years, the charity has received £100,000 from the company out of recycling income and on November 1 it was announced that the scheme is being extended, with the offer of a half-price shoe repair when an old pair is brought in for recycling. Contact Joan Jenkins, Mister Minit, on 0114 254 1555
A WILL TO MARKET
Over 2,000 firms of solicitors took part in the biennial Will Aid campaign during November in which they offer to draft wills for free in return for a donation to the organising charities, ActionAid, CAFOD, Christian Aid, Oxfam, Save the Children and SCIAF (Scotland). Contact Ken Hulme, Will Aid, on 0171 716 2169
COMPETITION FROM FAIR TRADE
The international anti-poverty charity, Oxfam has set up the Oxfam FairTrade Company both to market branded goods and to set up retail outlets separate from the existing Oxfam charity shops. Goods include crafts and foods produced in partnership between leading UK designers and overseas suppliers, all on fair trade terms. Three shops are now open and a national network is planned. Contact Patricia O’Rourke, Oxfam, on 01865 312498
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How sceptical should we be of claims by consumers that they will switch to a brand associated with a cause? After all, it is hard to say to a pollster you will not, when price and quality are equal. So asking whether you will pay more or whether you already do buy such products are surer tests. Marketing campaigns are won or lost on the ability to gain just fractional percentage gains in market share. So no marketing department can ignore this strong evidence.
The growing number of such schemes confirms this, as do charities like Oxfam rapidly expanding their own sales using their responsible brand image. With business now viewed as the most important group, after government, in tackling social ills, companies who wish to maintain their reputations can leave no stone unturned. Cause marketing can help.
But enormous care and preparation is needed. Making a clear commercial link with a cause invites scrutiny of other business practices – and the charge of hypocrisy. A good place to start is the marketing department itself, asking how responsible is all advertising. This is not about including a few black people or a man doing the washing-up. Effective advertising fully understands and reaches all consumers in the target group. Responsible advertising does not alienate minority groups in society. It also sells more products.
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