Question

Topic: Advertising/PR

Effectiveness Of Sponsorship, Community Relations

Posted by Anonymous on 11/7/2004 at 2:05 AM ET 125 Points
We all hear that markets are increasingly cluttered and fragmented (whether they are or not is another story).

The subsequent shift away from radio, TV, newspaper has seen companies look at sponsorship and community relations as an important means to communicate.

1. Generally, I'm looking for different perspectives on sponsorship (i.e., of not-for-profits) and community relations. Do you think this is a growing area? Do you think this function has been used by brands to the point of overkill?

Flick through any magazine and you will likely see an ad for a that addresses a major community issue, followed by rundown of twenty or so sponsors.

2. How could this possibly be effective?

3. What does an organization need to keep in mind when considering cause marketing?

Conventional wisdom says to take on a cause that is relevant to eminent stakeholders.

But the irony of monoliths taking on a community project or sponsoring a cause - invariably followed by a conspicuous pat on the back - isn't lost on me.

Call me a cynic, but a multi-billion dollar brand spending millions on media spots to tell the world they do in fact care about the plight of the Cozumel Thrasher or Chinese River Dolphin in most cases comes across as insincere.

No doubt the Benneton springs to mind whose ads touched on AIDS and capital punishment. The Benneton family said, in response to claims their caring side was just a publicity stunt, said the free PR their ads garnered for causes the public usually decides to ignore was totally justified. Fair enough.

4. So, how is it possible to discriminate between hollow self-promotion and pure philanthropy?
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RESPONSES

  • Posted by SRyan ;] on 11/7/2004 at 7:59 AM Accepted
    I'll address your final question about self-promotion.

    Many corporations spend more money advertising their efforts than they do on the effort itself. The best example might be Chevron, which paid some of the highest environmental fines in the history of the U.S., yet invested heavily in their "People Do" ad campaign about how much they care for the planet.

    Actions speak louder than words.
  • Posted on 11/11/2004 at 1:39 AM Accepted
    "Generally, I'm looking for different perspectives on sponsorship (i.e., of not-for-profits) and community relations. Do you think this is a growing area?" - This is one of those "it depends" questions with an "it depends" answer. In general, no, I don't think it's a growing area. Budgets are increasingly tight for community relationships and philanthropy dollars. Corporations only account for about 10% of total philanthropy. However, that said, it also depends on the the cause of the day, what corp is currently in trouble and has to make nice with certain communities/regions, and what new product/market a company wants to sell/target.

    "Do you think this function has been used by brands to the
    point of overkill?" - No. There is always a new cause, a new nonprofit organization and never enough money.

    "Flick through any magazine and you will likely see an ad for a that
    addresses a major community issue, followed by rundown of twenty or so sponsors. How could this possibly be effective?" - For some companies they just want to be associated with a certain event/cause/issue. It shows the outside world, i.e. customers their "social responsibility" and it shows their inside world, i.e. employees that it's a company that they can be proud to work for.

    "What does an organization need to keep in mind when considering cause marketing?" - when I think of Cause Related Marketing, I think of American Express and Share Our Strength. Things to keep in mind are:
    1. Is there a fit between my organization and this company? Does it make sense for us to work together?
    2. Will a partnership ehnance or hurt my organization's credibility and/or perceptions about my organization?
    3. Does my organization have the capacity and resources to handle this kind of partnership.

    "So, how is it possible to discriminate between hollow self-promotion and pure philanthropy?" - You can't because most of it is in the fuzzy gray area. Sometimes it's not the company that seeks the self-promotion but it's the nonprofit providing it because it thinks that it is what a company wants. However, with that said, look at the range of causes/issues that a company supports. Does it support only organizations that can help the company in some specific way or does it support a range of organizations/causes/issues in based on a set of values as well as interest areas that the company and it's employees believe in, i.e. education, arts, community development, etc.
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