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CAUSE MARKETING - US - AUGUST 2018

Published By :

Mintel

Published Date : Aug 2018

Category :

Lifestyle

No. of Pages : N/A

As Americans express frustration in government institutions’ ability to take action quickly, citizens are increasingly turning to charitable organizations to facilitate aid for those in need. This creates an environment in which corporations can use their cause marketing initiatives to build affinity with a consumer base that has a predilection for charitable support. However, companies need to be smart about what causes they support and how they execute their charitable initiatives. Cause marketing should be treated like any other kind of marketing – different demographic and consumer segments have different opinions and priorities, and concerns about controversy can be managed with intelligent cause marketing strategy.

Table of contents
OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
The issues
Consumers have high expectations of companies
Figure 1: Consumer expectations of companies, April 2018
Three quarters of Americans donate to charitable causes
Figure 2: Consumer charitable giving, net any support, April 2018
Americans vary in their preferred cause
Figure 3: Consumer donation and support of causes, net donation and support, April 2018
The opportunities
Consumers don’t shun controversy
Figure 4: Sentiment around controversial causes, any agree, April 2018
Younger consumers gravitate toward compatible beliefs
Figure 5: Support for companies with compatible causes, by generation, April 2018
Social media outreach most popular among iGens
Figure 6: Sources of information about corporate charitable efforts, by generation, April 2018
What it means
CAUSE MARKETING LANDSCAPE – WHAT YOU NEED TO KNOW
Charitable donations continue to rise, though corps lag
Corporate donations will increase if individual donations rise
Corporations are the fastest-growing donor segment
Most companies are giving more
Higher DPI underscores need for cause marketing
MARKET SIZE
Total charitable giving hit $410 billion in 2017
Figure 7: Total 2017 charitable contributions by source, 2017
Corporate donations follow individual donations
Figure 8: Change in annual charitable giving over the previous year, 2001-17
MARKET BREAKDOWN
Charitable giving is on the rise
Figure 9: Increases in YOY charitable giving, by source, 2017
Charitable foundations see a huge increase
Figure 10: Change in YOY charitable giving in inflation-adjusted dollars, by sector, 2016-17
Corporate giving increasing
Figure 11: Distribution of companies increasing/decreasing charitable giving, 2015-17
MARKET FACTORS
Higher DPI means more ethically conscious decisions
Figure 12: Disposable personal income change from previous period, January 2007-April 2018
High corporate profits enable increase in donations
Figure 13: Total annual corporate after-tax profits, in billions of dollars, 2000-17
CAUSE MARKETING INITIATIVES – WHAT YOU NEED TO KNOW
Companies move to charitable partnerships
Charity campaigns need to make sense
Expectations are high for brands to have a stance
WHAT’S NEW?
TOMS evolves their charity with response
Allstate’s Purple Purse represents modern cause marketing
Figure 14: Allstate’s Purple Purse mural, before and after Instagram filter
Domino’s delivers help locally
Publicizing charitable works increases affinity
MasterCard registers nil with their World Cup pitch
WHAT’S NEXT?
Disaster relief will see an increase in donations
iGens will look to brands for activism
Social platforms more instrumental to individual donation
THE CONSUMER – WHAT YOU NEED TO KNOW
Charitable efforts are a purchase consideration
iGens and Millennials are cause-conscious groups
Environmental concerns on the rise
No single cause reigns
Leeway exists for controversy
Television is popular, but giving way to social
IMPORTANCE OF CAUSE MARKETING
Consumers want their companies to be charitable
Figure 15: Opinions of companies supporting charitable causes, April 2018
Millennials, middle- and top-earners do their homework
Figure 16: Consumers who place importance on corporate charity efforts and consider charitable efforts when purchasing, by generation and income, April 2018
Consumer support is more carrot than stick
Figure 17: Consumer actions regarding corporate stances, net agree, April 2018
iGens and Millennials do their research…
Figure 18: Share of consumers who research brand ethics, by generation, April 2018
…and are most likely to be swayed to act
Figure 19: Support for companies with compatible causes, by generation, April 2018
CAUSES CONSUMERS SUPPORT
Religious causes are personal
Figure 20: Consumer donation and support of causes, April 2018
Religion garners more individual support
Figure 21: Donation and support of religious causes, by area, generation, and income, April 2018
Disaster relief has the most overall support
Figure 22: Consumer donation and support of causes, net donation and support, April 2018
CAUSES COMPANIES SHOULD CONSIDER
Little consumer consensus of causes companies should support
Figure 23: Opinions of what causes companies should support, any rank, April 2018
Donors feel corporations have more obligation to be charitable
Figure 24: Opinions of whether companies should support their cause, donor vs non-donor supporters, April 2018
CONSUMER EXPECTATIONS OF COMPANIES
Companies should have a viewpoint, but specifics are hazy
Figure 25: Consumer expectations of companies, April 2018
iGens and Baby Boomers are the most opinionated
Figure 26: Expectations of companies, iGens vs Baby Boomers, April 2018
Green can attract more than red, white, and blue
Figure 27: TURF analysis – Brand expectations, April 2018
TAKING ACTION
Consumers want corporations to make a meaningful contribution
Figure 28: Opinions of charitable support by companies, any agree, April 2018
Navigating controversy
Figure 29: Sentiment around controversial causes, any agree, April 2018
iGens and women less shy about controversy
Figure 30: Opinions on controversial causes, net agree/disagree, by generation, by gender, April 2018
Black adults more tolerant of controversy, Hispanic adults play it safe
Figure 31: Opinions on controversial causes, net agree/disagree, by race and Hispanic origin, April 2018
COMMUNICATING CHARITABLE EFFORTS
TV and websites have the largest reach
Figure 32: Sources of information about corporate charitable efforts, April 2018
Social media is a significant information platform
Figure 33: Sources of information about corporate charitable efforts, by generation, April 2018
Youngest consumers influenced by online personalities
Figure 34: Effectiveness of online personalities relating cause marketing, by generation, April 2018
Older generations harder to reach
Figure 35: Sources of cause marketing information – “none of the above,” by generation, April 2018
Respect doesn’t equal loyalty
Figure 36: Opinions of companies that support causes, any agree, April 2018
The authenticity gap
Figure 37: Opinions of companies that support causes, any agree, by generation, April 2018
Young generations hold conflicting opinions on corporate charity
Figure 38: Belief in intentions behind corporate charity, by generation, April 2018
CAUSE MARKETING SEGMENTATION
Consumers split on involvement, corporate roles
Figure 39: Cause Marketing Segments, April 2018
Charity Cheerleaders (24%)
Who are they?
How do you reach them?
Figure 40: Profile of Charity Cheerleaders, April 2018
Casual Charity Fans (29%)
Who are they?
How do you reach them?
Figure 41: Profile of Casual Charity Fans, April 2018
Charity DIYers (22%)
Who are they?
How do you reach them?
Figure 42: Profile of Charity DIYers, April 2018
Idle Cynics (25%)
Who are they?
How do you reach them?
Figure 43: Profile of Idle Cynics, April 2018
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Methodology
Consumer qualitative research
Direct marketing creative
Abbreviations and terms
Abbreviations
Terms
APPENDIX – THE CONSUMER
Figure 44: Attitudes toward cause marketing, by cause marketing segment, April 2018

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