Corporate Sponsorships and the New Consumer

A recent webcast titled “How Sponsorships Add True Purpose to Marketing Efforts” delved into the future of Cause/Non-Profit Marketing and its implications for traditional business models. The webcast, hosted by Dan Kowitz of IEG Sponsorship Consulting provided an interesting look at developing consumer trends and opinions.

For instance, 90% of Americans surveyed want companies to increase sponsorship for cause-sensitive campaigns or organizations. Furthermore, more than two-thirds of those surveyed globally said they would switch brands if the makers of a similar product supported social causes or nonprofit organizations.

What does this mean for businesses?

• Consumers are becoming more market-savvy and, consequently, independent. We now have an abundance of resources at our fingertips – message boards, blogs and watchdog sites, to name a few – and consumers use these to learn about the companies, share opinions and develop their brand recognition independent of traditional advertising.

• Consumers are socially aware. They support – and applaud – corporations who take an active interest in social change and cause-related marketing. Conversely, the new consumer can sniff out insincere marketing tactics or less than authentic concern from corporate social marketing efforts

Businesses that are authentic in their corporate sponsorship of and participation in cause marketing campaigns receive a generous bump in brand recognition and sales. As an example, in the five years since YoPlait began its ‘Save Lids to Save Lives' partnership with Susan G. Komen for the Cure, the company’s sales have steadily increased and even developed previously nonexistent seasonal sales spikes. Yoplait embraced the cause and, in turn, consumers embraced Yoplait.

Pepsi is hitting the ground running with this new aspect of the marketing mix. By declining to participate in the annual Super Bowl ad wars, and instead instituting its 'Pepsi Refresh Project' to fund cause-related, community-building campaigns and organizations, Pepsi has recognized that it may have more to gain in today’s consumer-savvy, cause-aware world by building a socially responsible brand.

Contributed by Kevin Barbeau