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05/06/2006: "Cause marketing is a way to increase sales and be of service to your favorite causes as well."

Cause marketing is a marketing strategy linking purchases of a product with fundraising for a worthwhile charity, project, or cause. Cause related marketing creates a mutually profitable outcome for the business and the charity. Cause marketing can be a highly effective advertising method that contributes to building a positive image for the business while helping a charity gain much needed visibility.

The integration of social issues and business practices is a great way of marketing and one that's being adopted by almost all major businesses. It's a marketing practice that small businesses would be well to emulate and use in their own enterprises.

Businesses are turning a concern for causes into long-term brand equity. At companies such as Avon, The Home Depot, Target, Timberland and ConAgra, comprehensive social commitments have become a major way to conduct business and a key component of their reputation, their brand and their organizational identity.

This is good news for corporations and nonprofits alike. Businesses are finding it harder and harder to out advertise each other. That's why cause marketing is so successful. Strategic cause programs provide companies and nonprofits with valuable leadership and differentiation strategies as well as enhanced brand equity and credibility. It gives them greater reach and better resources and relationships. Now, more than ever, corporations and nonprofits are realizing the power of aligning companies and causes.

It's not altruistic to use a cause to market. It's very capitalistic. It's using a cause to better your business. And that's always a good thing.

But there are things to consider.

An article written by Martin Cohen, a lawyer specializing in promotion law titled:"Partner With Charities, But Follow the Rules, points out some of the pitfalls of cause marketing.

"As with any advertising promotion, the commercial business (corporate sponsor) must comply with a variety of state laws. The mere act of associating with a charity will not result in an exemption of accommodation for the for-profit entity," Cohen said. "In many states, undertaking a commercial co-venture exposes the corporation to additional legal requirements."

And, Mr. Cohen went on to say, "what makes cause marketing arrangements even more complex is these laws vary by jurisdiction; there is no single policy to guide commercial ventures that is subscribed to by all states."

Still another problem is presented among government entities which are aggregately involved in dozens of social issues marketing programs on subjects ranging from health to taxes. Legally, it is difficult if not impossible for most government agencies to enter into cause marketing relationships that could give exclusive arrangements to a corporate sponsor. Thus, many government agencies with an important story to tell about many social issues may not be able to communicate as effectively as those in the private sector with access to corporate funds.

Give cause marketing a try. You might find it will increase your bottom line and make you look like a really good guy.