Charity link vital tool for good image

By SIMON HENDERY marketing writer

Businesses are building stronger relationships with charities and non-profit organisations - a trend which is being seen as a vital part of a company's marketing mix.

Enthusiasm for "cause-related marketing" has increased as businesses embrace triple bottom-line standards and put more effort into being good corporate citizens.

University of Auckland Business School marketing professor Rod Brodie says the increased corporate interest in taking into account not only the needs of their organisation and its consumers, but also the needs of society has led to more altruistic types of sponsorship activities, which helps build corporate reputation and improve a company's image.

"Most organisations - large or small - now regard sponsorship as a major part of what they might call their communication mix. On top of paid media communication, it is a wonderful vehicle to get through the clutter."

Brodie says debate continues over whether cause-related marketing improves a company's financial success. Nevertheless "there certainly is increasing evidence now that it does lead to better success in the broader sense".

That broader success involves the feel-good aspects of such relationships for staff - such as the social interaction and effect on company culture.

Brodie's involvement in international research has shown that about a third of companies have a broader base for understanding and measuring success than they did 20 years ago. Within that group, about a third have aligned themselves with a social or cause-related issue.

Denver-based Dr Richard Steckel, an internationally renowned consultant in cause-related marketing who has presented Auckland University Business School courses on the topic, says local involvement remains largely confined to larger companies. However, he predicts a surge in the number of small and medium-sized New Zealand businesses adopting cause-related marketing practices over the next few years.

Those practices do not have to involve a huge financial commitment.

When Steckel was in the country in July he cited examples of a dry cleaner who offers to act as a drop off point for clothing donations and cleans them before passing them on to a charity. Or a florist who gives customers a discount and donates 10 per cent of profits on a certain day to an animal charity.

That type of strategy can enable a small business to stand out and become recognisable, he said.

"They create a personality for the store and give people a reason to seek them out. Good business and being a good person can go hand in hand."

However, the concept needed to be embraced sincerely or not at all.

"Do it because you believe in it or you'll be seen as a fraud."

Companies and the organisations they are assisting need to have similar values and philosophies.

Gisborne-based produce company LeaderBrand signed up for a three-year sponsorship of the Breast Cancer Foundation this year, a relationship LeaderBrand president Murray McPhail said was a natural fit for the organisations.

The company has put the foundation's pink ribbon logo on its salads and vegetable packaging, a move McPhail said would help highlight the message that a healthy diet contributed to a healthy lifestyle.

"We are sensitive to just how contentious the claims are about diet and cancer, however, without exception cancer researchers agree on the benefits of a healthy diet," he said.