Nearly eight in ten Italian consumers (78%) consider it very or reasonably appropriate for companies to include a cause in their marketing. The findings come from a survey of 1,000 consumers, launched at a cause related marketing conference in Milan on November 17, held in association with Fleishman Hillard. Commissioned by Sodalitas and the EBNSC, the survey also found that three quarters will switch brands, where price and quality are similar, if one is associated with a good cause. Nearly two thirds (63%) would consider switching even if the price was slightly higher (1-5% more).
The findings show that Italian consumer attitudes are similar to those in the UK, where BITC research has found 86% being more likely to buy a product associated with a cause. Contact Ruggero Bodo, Sodalitas, on 00 39 02 58 37 02 93
AMERICAN CONSUMERS
Nearly nine out of ten white consumers (88%) and more than three quarters of black consumers (76%) in the United States say they take a company’s reputation for charitable involvement into account when making purchases, according to a survey published by Cone Communications in December. Based on telephone interviews with 1,000 consumers nationwide, six in ten people (63%) said that during the Christmas holiday period they would be buying at least one present to benefit a charitable cause, more than double the figure for the previous year. In the 25-34 age group, the proportion rose to nearly three quarters (72%). Contact Cone Communications on 00 1 617 227 2111 (www.conenet.com)
NATWEST COMMUNITY BOND LAUNCHED
NatWest is promoting a new Community Bond, allowing customers to opt for an interest rate lower than the market rate on their investments, so benefiting deprived communities. Launched on January 21, the interest rate differential is donated to a regional Community Finance Fund which then offers loans to economically-viable social enterprises. The boards of the Funds each have four senior NatWest regional representatives and three external community representatives. A customer opting for a 3% interest rate cut on a deposit of £5,000 will contribute £464 over three years. Contact Andrew Robinson, NatWest, on 0171 454 6915 (www.natwest.co.uk)
AFFINITY CARD FOR CITY CENTRE
Hereford has become the first city council to issue its own affinity credit card. Announced at the start of December, the funds raised will help improve shopping facilities and making the city centre more accessible to people with disabilities. Royalties from the Bank of Scotland Mastercard, promoted by the affinity card company, Transnational, will be channelled to projects chosen by the City Centre Forum – a partnership between the local council and businesses. Contact Susan Wilks, Trans National, on 0171 565 6640
SUIT EXCHANGE
Shelter expects to have raised ?40,000 from Austin Reed’s National Suit Exchange programme, which ran during the last few months of 1998. Customers received a discount on a new purchase when returning an old suit which Shelter then resold through its charity shops. More than 3,000 suits were collected and Austin Reed also donated £5 for each old suit received. One in seven customers during the promotional period took part in the offer.
During January, Shelter also benefited from a campaign by WH Smith Travel Retail which donated £1 for each Ruth Rendall and PD James book sold. Contact Clare Griffin, Shelter, on 0171 505 2162 (www.shelter.org.uk)
WWF PARTNERSHIP FUND
The conservation charity, WWF-UK, launched an ethical investment fund in partnership with investment group, NPI, on January 26. One third of the management fees will be donated to the charity, and the first product is the NPI/WWF Personal Equity Plan. Funds will only be placed in companies which are committed to technological investment and environmental responsibility. Contact WWF on 01483 426444 (www.wwf-uk.org)
ALL WIRED UP FOR SALES
Four US companies have introduced Web sites recently, allowing shoppers to donate a portion of purchases made on line to charity. Shoppers pick a non-profit organisation to support and then make a purchase through one of the retailers linked to the site. The sites share the commission paid by the retailers with the chosen charity. Visit:
Mobile phone company, Orange, and the New Covent Garden Soup company set up a soup kitchen in London’s Covent Garden during December, providing Christmas shoppers with hot soup and the opportunity to make a phone call, in return for a donation to the Big Issue Foundation. Contact Rachel Murray on 0181 237 4008
PROMOTING COMMUNICATION
Internet provider, AOL UK, and the Royal National Institute for Deaf People are together promoting internet technology to people who are deaf or hard of hearing. By December 4, jointly branded CD ROMS had been sent to 200,000 people identified as PC owners with some level of hearing loss. AOL is donating £5 to RNID for each signing-up and a further £5 if they stay on-line for at least 90 days. The initiative includes an on-line area for relevant news, information, message boards and a directory of other relevant Web sites. Contact Neal Weston, RNID, on 0171 296 8091 (www.rnid.org.uk)
BIG BUTTON PHONE
BT is donating £1.50 to the Royal National Institute for the Blind for every BT Big Button Phone sold or rented, up to a maximum of ?100,000. The Big Button Phone, which was launched by BT in January, helps people with sight, dexterity or hearing problems, featuring large buttons with big print, an inductive coupler, adjustable speech amplification, a call indicator light and an easy grip handset. Contact Ciara Smyth, RNIB, on 0171 391 2223
Comment
Cause-related marketing remains controversial, despite its rapid growth, with some warning that charities are selling themselves short. We don’t agree that is generally true. The scale of activity and the professionalism on both sides is now such that a real market is developing in charity tie-ups. If either side thinks it is not getting a fair deal, other options are often on offer.
But looking beyond the payment for endorsement – `cash for cachet’ – the true power of marketing as a force for social good is being underestimated. The potential lies in moving from simply selling more product to changing social behaviour.
Here’s an example. Hindustan Lever wants to sell more soap in India and encourage brand switching. It can advertise conventionally or it can offer a money-to-charity promotion. Provided both are effective, the latter has greater social benefit than the former. But what if, in the way soap is marketed, consumers understand the benefits of washing hands regularly to cut the incidence of killer diseases like diarrhoea and dysentery? The product is still sold but the long term social impact is huge.
Basic health is a no-brainer, but what about cars and safe driving? banks and prudent saving? Social responsibility in marketing is about more than cause-related campaigns. Social marketing is the future.
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