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Working With The Private Sector

Working With The Private Sector. Chapter 9: Part 1 Tammie Gentry PADM 7040 Dr. Gerald Merwin. Cause-Related Marketing. “Private marketers participating in nonprofit marketing activities for the private sector gain” Risky due to long-term goals of nonprofit and private sector differing

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Working With The Private Sector

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  1. Working With The Private Sector Chapter 9: Part 1 Tammie Gentry PADM 7040 Dr. Gerald Merwin

  2. Cause-Related Marketing • “Private marketers participating in nonprofit marketing activities for the private sector gain” • Risky due to long-term goals of nonprofit and private sector differing • Wrong partnership can diminish nonprofits reputation • Will new marketing alienate, employees, board members, and traditional sources of support (Andreasen and Kotler, 240)

  3. Advertising Agency Partnerships Why They Contribute • “Volunteer campaign opportunity for business contacts • Good-will obtained by public spiritedness • Agency executives and staff can achieve personal benefits from working on social issues • Opportunities for individual/agency creativity more so than with a paying client and chance for public impression with innovative campaign • Give experience to junior staff when major client not at risk” (Andreasen and Kotler, 241)

  4. Risks of Partnership • If campaign costly, agency may skimp on production values • If assign junior staff, may not be of highest quality • If agency focus more on making a creative impact, may loose sight of nonprofit’s goals (Andreasen and Kotler, 241)

  5. Advertising Council • Founded in 1942, after Japanese bombed Pearl Harbor, (war bonds, victory gardens) • Challenge to promote war-related programs • Deeply involved in American life • Funded through donations from industry and assessments from sponsors of its causes • One-third of all public service announcement from the Ad Council • In 2000, value of donated media was $1.5 billion, which would place in top 10 advertising spenders (Andreasen and Kotler, 241-245)

  6. Changes in the Ad Council • Practices careful segmentation • Increasing focused on poor and African American communities • New media such as internet and Web and interactive television • In 1990s, developed strategic plan that increased focus on children • Realized reliance on volunteer time as space has shunted impact, so now conduct carefully designed research studies (Andreasen and Kotler, 246)

  7. Familiar Ad Council Slogans • “Only you can prevent forest fires” • “A mind is a terrible thing to waste” • “Help take a bite out of crime” • “Pollution: It’s a crying shame” • “You could learn a lot from a dummy” (Andreasen and Kotler, 241)

  8. Social Alliances • “Any formal or informal agreement between a nonprofit organization and one or more for-profit organizations to carry out a marketing program or activity over a significant period of time” (Drumwright, 247)

  9. Results • “Both parties expect the outcome to advance their organizations’ mission” • “The corporation is not fully compensated for their participation” • “There is a general social benefit expected” (Andreasen and Kotler, 247)

  10. Examples • American Express donating one cent for every card transaction and $1 for each new card member to the renovation of Ellis Island and the Statue of Liberty • Coca-Cola invests $60 million, staff time for over 10 years to help increase membership to the Boys and Girls Club of America (Andreasen and Kotler, 247)

  11. Cause Related Marketing • “Any effort by a corporation to increase its own sales in both the short and long run by contributing to the objectives of one or more nonprofit organizations” (Andreasen and Kotler, 249)

  12. Positives/Negatives • Increased by a shift in corporate attitudes towards social involvement • Put nonprofits in position for partnering rather than begging • Corporation’s ulterior motives are transparent and backlash created • Can offend the nonprofits, public, and its grantees (Andreasen and Kotler, 249)

  13. Corporate Issue Promotion • Corporation promotes a socially desirable behavior without the involvement of a nonprofit • Anheuser-Busch and its promotion of responsible drinking and designated drivers while promoting its product as one being consumed by responsible, mature adults (Andreasen and Kotler, 250)

  14. Joint Issue Promotion • “A corporation in conjunction with a nonprofit or government entity pays for and/or designs a campaign to urge certain behaviors without expecting anything in return” • Glamour Magazine, Hanes Hosiery, the National Cancer Institute, American College of Obstetricians and Gynecologists, and the American Health Foundations come together to promote breast-health education (Andreasen and Kotler, 250)

  15. Sales-Related Fundraising • “A corporation agrees to donate funds or equipment to a nonprofit or other charitable organization in proportion to the number of sales or other customer transaction that are made” • Paul Newman uses Newman’s Own products and its profits as a way of contributing to charities in the United States • American Express in its “Charge Against Hunger” campaign • Campbell’s Soup and its donations to schools (Andreasen and Kotler, 250-251)

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