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Companies and Causes: Social Media Jumpstart a Marketing Revolution

Posted: 04/06/11 03:51 PM ET

I was sitting in my hotel room the other night, savoring some Chivas whiskey. Not the actual whiskey, I'm more of an Earl Grey kinda gal. Instead, it was a commercial for Chivas that was giving me a bit of a buzz. It begins with somber piano music, and then a voice-over comes on: "Millions of people, everyone out for themselves... can this really be the only way?" No, the commercial goes on, "here's to honor... and to gallantry." We then see images of various people doing the right thing, helping someone push-start a broken down car, tired firefighters after fighting a blaze. "Here's to doing the right thing," the voice says, and to the "true meaning of wealth."

It's a striking ad. And it's part of the most important trend in marketing: the recognition by businesses that there's much to be said for appealing to consumers' better instincts, and engaging them with something other than materialism, sex, money, and self-interest. And it's not a coincidence that this trend is escalating at the same time social media have risen to the forefront in the worlds of both marketing and activism. It's all part of the changing zeitgeist and it's only natural that forward-thinking companies would want to tap into it.

Right now, we're in the transition phase -- the marketing world still looks like a split-screen, with most companies going about things in the traditional way, but with many pioneering ones breaking new ground by building their brands while trying to help make the world a better place.

Marketing is often a leading indicator of where a culture is at and, even more, of where it's heading. Marketing has always been most effective when it takes ideas that are in the air and crystallizes them, so that they resonate with us in ways often beyond our conscious understanding. This is what is so powerful about the combination of social media, marketing, and doing good.

The Cause Marketing Forum defines social marketing as a "commercial activity that aligns a company or brand with a cause to generate business and societal benefits." Of course, the idea of cause marketing is hardly new. As the Forum notes, a key moment in modern cause marketing came in 1976, when Marriott teamed up with the March of Dimes to boost contributions by 40 percent while producing a record-breaking opening day for Marriott's Great America theme park. The next large-scale use of social marketing was in 1983 when American Express took up the cause of helping restore the Statue of Liberty.

But it took the breakthrough of social media to really make cause marketing catch fire. The first ingredient, and no doubt the element that is now attracting any head of marketing worth his or her salt (or whiskey), is that social media allow like-minded people to coalesce. And, as Ashley Brown writes in Mashable, "messages are most successfully communicated to audiences that have already coalesced around common bonds." It's a lot easier to market your product to people who have already signaled that they like what your product is about than it is to cast a giant net to reel in potential customers.

That's why, according to Susan Gunelius of entrepreneur.com, one of the ten big marketing trends of 2011 is social media attracting more advertising and marketing dollars at the expense of traditional outlets like radio and print.

But here's the twist: while companies want to use social media because it does a lot of their outreach for them, it also requires something more of the companies that enter the social space. The hallmark of social media is authenticity. As a result, social media can give companies a real sense of who their would-be customers are, what they like, and what they value. But it's a two-way street -- they also shine a light on the authenticity and values of any company that wades in.

There's a much higher bar for engagement with social media and, once in, a company can no longer easily hide behind a glossy, expensively photographed ad campaign. Adam Bain, Twitter's brilliant president of global revenue, said on a panel we were both on at a Sony conference this week that the three best ways to monetize a product are: humor, huge deals and humanity. If focusing on humanity is now seen as not just good for humanity but also for the bottom line, that is a huge deal! And humor has always been a shortcut to our humanity.

Social media have increased the ability of a company to tap into their customers' humanity. But to do so they must show some in return. Derrick Daye, writing recently about marketing trends for 2011, calls this "ethosnomics." He writes:

Brands increasingly must stand for something beyond just rational items. Brands can't, however, just 'stand for' the cause du jour. Doing what others do, just because they're doing it, won't work very long or very effectively. Corporate social responsibility efforts will need to be believable, sustained, and engaging. Some of the strongest will come from those brands that connect the public and the personal in today's financially-strained world.

And the trend is spreading. Western Union sponsored a documentary called To Catch a Dollar, which tells the story of Nobel Laureate Muhammad Yunus. His Grameen Bank, founded in Bangladesh, lifts people out of poverty with micro-loans. The film tells the story of how he is bringing his idea to the U.S. to help struggling American families. As part of its sponsorship, Western Union invited people to vote for which city should house the next Grameen branch. You can vote here.

Starbucks, to celebrate its 40th anniversary, is joining with non-profits to make April a month of service, focusing on programs serving the environment and young people. Their goal is 200,000 hours of service, which, according to the HandsOn Network, is worth over $4 million and is equal to 100 people working 40 hours a week for a year.

The software company Atlassian came up with a concept they call "Causium," a combination of "freemium" and cause marketing. "Freemium" is when companies offer a reduced version of their product for free or at a steep discount, hoping a customer will try it, like it, and buy the full version. Atlassian decided to offer ten starter versions of its product for $10, and pledged to donate the proceeds to Room to Read, an international group dedicated to increasing literacy and gender equality. Last month the company announced that it had already raised $1 million.

"We definitely felt like we kind of stumbled on a way to combine the same concepts of lowering the barriers to entry to your product and how to do that nobly," said Jon Silvers, director of Atlassian's Audience and Community. The company also grants five days of "foundation leave" to employees for local community service. This is also something we do on all our Patch sites, where employees each get five paid days off to volunteer at charities and non-profits in their communities.

And combining humor and humanity, BFFFSMs (Best Friends Forever For Six Months) Jimmy Fallon and Stephen Colbert raised over $50,000 in a few days for Donors Choose, an online charity connecting donors to needs in classrooms in underprivileged school districts around the country.

Cause marketing is even affecting the mechanics of how marketing gets done. The Chief Marketing Officer Council has come up with a program called "Pause to Support a Cause," in which participants in marketing surveys can donate part or all of the payment they receive to non-profits. Over 200 charities have already signed up, including the American Red Cross and the March of Dimes.

And this is only the beginning. Right now, it's just the pioneers, but as it becomes clear that doing good is good for business, more companies are sure to join. And then there will come a tipping point -- and I believe it will be sooner rather than later -- when companies can no longer afford not to have some element of cause marketing as a major part of their advertising and marketing budgets.

Social media are about doing, not watching. It's active, not passive. This goes for companies just as surely as it goes for consumers. What's especially exciting is that the tools that allow people to connect with each other, their communities, and the companies they want to patronize, are still in their infancy -- imagine the impact they'll have when they are all grown up.

 
 
 

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08:20 PM on 05/11/2011
We are now in a civic society where people are attracted to civic actions. It is good marketing and it gives you good image to the public. I guess this blogpost http://www.beneaththecover.com/2007/10/03/build-relationships-that-last/ can be considered related to this. I believe that effective marketing is building relationship and civic actions are good way to build relationships directly and indirectly. There may be a lot of ways to market your business but as this post says "it's the doing and not the watching" that matters.
07:31 AM on 04/13/2011
Nice post! We come at it from an entirely different angle as our demographic at Habbo is teens.
Check out our 3P's model on how we brings brands to life in the Social Gaming / Virtual World Space.

http://pixelproof.wordpress.com/the-3-ps/

This is also our new blog too :)
shylove2
warfare state is pathological
07:51 PM on 04/10/2011
Kind of like marketing our humanitarian insterst in Libya along side our predator drones dishing ouit instant judgement of unknown people on the ground in Pakistan and anyone nearby based on intelligence about the same as our war in Iraq was based on... on the other hand if our intelligence is so good then it must have been just as good leading up to 9/11 and Iraq... either way dosen't look very good... marketing humanitarianism with the profit motive as the prime directive kinds spoils the view and the motivation behind it too.
12:30 PM on 04/10/2011
With all the negative hype of possible "reality" in 2012, this idea of "doing the right thing" promises a clean view of personal ethics. It's certainly time for looking "newly" at our culture. My experiences with a narcissistic spouse and his family set my world out-of-sync with a black hole that syphoned energy and funds. The crisis of faith that struck from this episode has begun to right itself and my personal passion is the Head Start Program in my small community.
The question of the Head Start goal isn't so much to answer what we want to do in this nation, but through choice, what kind of people do we want to be. No matter the environment of financial times, differing attitudes, or hierarchy of accomplishment, we want to be the very highest level of person in each situation with the skills we each possess. Within the performance of Head Start, there lies a system for achieving a sense of well being for our young people involved and the awareness of others, rights, privileges, boundaries, teamwork, and the bolstering of character. To make a difference as a unit of people, we are called to meet standards of conduct in living and to offer avenues for personal creativity, guidance, and freedom over time. We must aggressively become accountable for the choices of today which mold the fabric of tomorrow. Only when there is health, optimism, safety, and education can a society not only survive, but thrive.
07:49 AM on 04/10/2011
I think this article has a good definition about social media marketing: http://video-commerce.org/2011/04/social-video-marketing/

“Social media marketing” is a campaign that appeals to the need to socialize,
which co-creates value between the brand (producer) and consumer... IDEALLY, consumers are encouraged and empowered to interact with the brand as equals, and with fellow consumers, in this co-creation of value."

“Social” speaks to the need for relationships with other human beings.

The “social” also speaks to co-existence, plus individual and community growth. Some people are naturally more social than others, or have the opportunity and/or willingness to develop the behavioral skills suitable for their social relationships.

For marketers, the “social” tends to be about building relationships for the purpose of doing business with each other.
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LiberalBuzz
Voting republican is voting against America.
07:28 AM on 04/10/2011
I don't believe for a single moment that 99 percent of these companies care about anything. Serious I do not.  Their only care is the bottom line. IF they can get people to give to a cause while using their product you can bet there are a ton of tax loopholes making it even more profitable for them.

It's nice they raise money for causes but really just how many drops in a bucket are they. I do believe there are those who actually do give a good gosh darn, but they are few and far between. Far too many companies and corporations use the those ideas for no other reason than to boost their bottom line while trying to look like good guys at the same time.

I can think of a ton of ways they could do better. Ways that would actually mean something.
09:29 AM on 04/10/2011
Agree, international companies wouldn't be there with US$ 421.849 billion (like Walmart) if they care about anything but profit. Or bank of America with Total assets of US$ 2.264 trillion (2010).

Inter. companies became sovereign states, and they create our way of living as never before. We depend on them, but we don't have a vote, or election to say, "hey, you tricked me with high prices, no medical care of firing with no reason. What you do is crime but there is no laws in free market ideology to stop you from what you are doing globally".

That is just sick and twisted.
07:44 PM on 05/17/2011
I also agree with you. It's just that sometimes you don't know anymore if they are sincere or not. In the end it will all be about profit and marketing has ride on the civic mentality of people to attract people to them. Sad but true isn't it?

http://dld.bz/aaxZe
01:49 AM on 04/10/2011
Marketing certainly has its challenges in a time when consumers are simply media and ad
maxed, have enough of both of them and simply kill the messenger altogether. Then consumers have made the experience of rather toxic advertising like that of banks and
financial services. Quite a lot of the old fashioned way of marketing was thus rather
totalitarian, not so different from propaganda of dictatorships and would makegood cases
for studies of what managers do who are at the notorious highest level of incompetence.
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Zaida Adams
01:14 AM on 04/10/2011
A company that cares and gives back to it's consumers is a highly-valued company that will seep the reward of consumer loyalty, much like Karma. You give some good, you see it return tri-fold.
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mjc
Avoid printing any..
02:18 PM on 04/09/2011
And it may just be that only the really rich or those on the brink of "richness" can afford Chivas or Mercedes Benz. Why waste a perfectly good advertising goal on the majority of Americans?
08:33 PM on 04/07/2011
Well-written overview of Cause Marketing and how it's been affected by social media. People are craving for authenticity--in short, people want the truth. This trend will grow, but at a certain point there could be a conflict between what the people want and what corporations offer. Why? If this trend is enduring, it indicates a deep desire among Americans to do good, to ascribe to a certain set of values. These values, whether perceived religious or secular, could challenge how companies not only market their products, but run their companies.
lightnessandjoy
Is micro-bio a new disease?
07:48 PM on 04/07/2011
I think the column heading should be "In Praise of Monetizing Goodness." It's no surprise that salesman would turn to extolling goodness to selling their products, but it's nothing more than another (rather cynical) way to turn a buck. If these folks want to do good, then do good, but praising them for commercializing good works to sell their products is a pat on the back for nothing..
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WFWS
Proud Liberal
06:14 PM on 04/10/2011
This is the thing, isn't it? Many of us have a reluctance to sell to friends, sensing that our relationships are in some sense set apart from commerce. That kernal is being tested by companies, who now are investigating ways of manipulating and re-defining relationships, even creating new ones. I'd say its dangerous, but I don't really know that. Some good will come of it, but I suspect in the end we'll all start sliding towards an internalized capitalism, where a good relationship is defined by its relationship to market values, and human values get parasited by corporate marketing schemes.
The big political danger I see, that makes my hackles go up, is that slowly we accept the idea that our power as a consumer is greater than our power as a citizen, that social movements thru Facebook can somehow supercede the right to vote. Its evolving, and people who love the Bill of Rights should hold fast to their role as voter and citizen. We have far less power as consumers.
04:46 PM on 04/07/2011
Indeed there ARE good news stories out there if you can recognize them; good catch. Is the pendulum starting to swing in the other direction he asked hopefully .......

Can you imagine the day when elected officials figure out the connection between good a deed and true success? Dare to dream ...
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04:39 PM on 04/07/2011
Ms. Arianna, I meant :)
04:36 PM on 04/07/2011
Given the lack of leadership in pricing carbon, companies are taking charge. A few months ago WalMart's announced sourcing local produce & Training small farmers.

The old story of vendors going to Bentonville and beat with rubber hoses for the lowest price has radically changed. Now the rubber hoses are used in the name of energy efficiency and full cradle to cradle life cycle analysis. Their Sustainability Indexing Program will now take that data to formulate true carbon foot print labels, empowering consumer's choice.
I have joked with their head of sustainability that WalChar would be the first with a carbon negative label.

Biochar systems for Biofuels and soil carbon sequestration are so basically conservative in nature it is a shame that republicans have not seized it as a central environmental policy plank as the conservatives in Australia have with their ; "Carbon sequestration without Taxes".

The Soil Carbon Standard committee's work with USDA, EPA and Congressional Ag committees offers real hope, with expansion to ISO status, the world can all be on the same soil carbon page.

My holy grail is the establishment of soil carbon as the universal measure of sustainability for all biofuel systems.
We can rectify the carbon cycle, and beyond that, biochar systems serve the same healing function for the Nitrogen & Phosphorous Cycles, Toxicity in Soils & Sediments and as a feed additive cut the carbon foot print of livestock by 50%.

2010 US BiocharConference
http://www.biorenew.iastate.edu/events/biochar2010/conference-agenda/agenda-overview.html
04:10 PM on 04/07/2011
The ease with which people join these cause marketing efforts tells me that people do really care. It may be good marketing but cause marketing is also organizing and giving voice to people’s innate desire to be part of something that matters. I am particularly intrigued by the Starbuck’s effort. That’s not slacktivism: people have to actually get out and work … and they seem to be willing to do so.