In today's day and age, brands are under constant scrutiny. Corporate reputation management is bigger than ever. Because of this, companies need to be very careful about the way they operate. They have to make sure that the public has a positive opinion about the company. A company's branding and marketing strategies will directly impact its reputation. Let's find out why good cause branding can help a business improve its corporate reputation management.
Image has always been hugely important for companies. With the advent of social media, company image has become one of the most important factors not only in protecting corporate reputation but also in gaining new customers.
What is Cause Branding
Cause branding is a form of advertising that leverages a company's core competency to engage in cause marketing. Cause branding is a way for businesses to connect with consumers on an emotional and personal level, while also increasing brand awareness, loyalty, and ultimately sales.
Cause branding is an effective corporate reputation management tool because it makes the most of two of the most powerful forces in business: brand recognition and social responsibility. When you combine them into one strategy, you create an opportunity for your company to show potential consumers what you stand for on a deeper level.
What Are Cause Branding Companies?
The cause branding company is a company that specializes in helping your company connect with a social cause. This is important because it requires skill and expertise to do it right. Cause branding companies can help you find the right match for your company and target audience, while also making sure that your message comes across as authentic.
Importance of Cause Branding
Cause branding is important for corporate reputation management because it helps to create a positive brand identity that can create a positive impact on the strategic goals of the business. In this context, cause branding has been defined as “a branding activity where a company links its commercial brand with a non-profit cause.”
In recent years, several studies have shown that cause branding can be an effective strategy for building brand awareness and enhancing corporate reputation. A study by Millward Brown found that linking brands with causes is one of the most effective ways to increase sales and enhance brand value and that 90 percent of consumers buy products from companies that are associated with causes.
According to another study by Cone Communications, more than three-quarters of consumers believe that companies should support important causes and try to improve society, and 85 percent say they would prefer to purchase from a company supporting a cause.
How Cause Branding Helps Companies to Improve their Corporate Reputation
When companies support charitable causes, they can reach out to their customers in new and exciting ways. They can also benefit from increased awareness among the general public. Cause branding works best when it aligns with the values of your customers and employees as well as those of your organization as a whole.
Cause branding also helps companies who want to improve their corporate reputation. These organizations have often been criticized for their lack of social responsibility in the past, which has caused them to lose some of their business goodwill among stakeholders such as investors and customers alike.
Cause branding is a type of marketing that involves the strategic partnership of a for-profit business and a non-profit. The goal of cause branding is to increase sales and profits while also benefiting the non-profit. Cause branding can be used to improve corporate reputation, build brand equity and engage customers.
While some companies engage in cause marketing to help others and do good, it's not charity work. Businesses embark on cause branding for two reasons: to increase sales and to improve their brand image.
Cause marketing campaigns are designed around a specific theme, such as breast cancer awareness or support for the military. In many cases, a portion of proceeds from sales goes to the non-profit partner. For example, Yoplait donates 10 cents from each pink lid on its yogurt cups to breast cancer research.
The success of cause branding varies by company and campaign. Some initiatives meet with great success while others fail to meet goals. In general, however, companies that use cause branding realize several benefits including:
- Improved corporate reputation through philanthropy
- More customer engagement with customers who are enthusiastic about the cause
- An opportunity to have employees get involved in good causes.