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Corporate Australia on Cause Related Marketing


Thursday, 8th November 2001 at 12:11 pm
Staff Reporter
Australian consumers are increasingly likely to be influenced in their purchasing decisions by a company’s association with a ‘cause’. And Corporate Australia is intending to practice and spend more on Cause Related Marketing.

Thursday, 8th November 2001
at 12:11 pm
Staff Reporter


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Corporate Australia on Cause Related Marketing
Thursday, 8th November 2001 at 12:11 pm

Australian consumers are increasingly likely to be influenced in their purchasing decisions by a company’s association with a ‘cause’. And Corporate Australia is intending to practice and spend more on Cause Related Marketing.

That’s the findings of research projects conducted by Worthington Di Marzio for CRM specialists Cavill + Co. The “Heart & Sold” survey is the first major study in four years into the attitudes of Australian consumers to Cause Related Marketing. The second study called “Cause & Effect” survey’s 197 marketing managers from to top 500 Australian companies.

The “Cause and Effect” survey found that corporate Australia is embracing CRM but is reserved when it comes to promoting or measuring it.

The research revealed that 42% of Australian corporates are currently involved in Cause Related Marketing and 21% of those not involved plan to invest in CRM in the future.

The Cavill + Co research found that 93% of companies cite helping the cause as the main objective of CRM, although enhancing corporate reputation came a close second at 85%.

The researchers say however that despite this, companies neglect to promote their activities with 53% relying on their cause partner.

On the consumer side of the equation, the “Heart & Sold” survey found that more than one third of consumers were influenced to buy a company’s products or services because of its association with a charitable or community cause.

It found that 54% would also switch from their normal brand when considering products in terms of price and quality.

Cavill+ Co’s Managing Director, Hailey Cavill says the consultancy finds that many companies are investing heavily in sporting sponsorships and unfortunately many are not measured so the return on the investment is not know.

Cavill says these findings show companies can have a greater influence on a consumer purchasing decision by supporting a cause but it is important that they promote the cause relationship.

As well it shows that a cause partnership can influence only if the basic elements of the marketing mix are in place – aligning with a cause will not make up for poor quality or overpriced products!

If you would like to purchase copies of the detailed findings of either the “Cause and Effect” or “Heart & Sold” research including a step by step Cause Related Marketing strategy e-mail us for an order form at corpnews@probonoaustralia.com.au.



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