“Cause marketing” is a formal term for the concept of giving a percentage of a sale to a non-profit organization.  While doing good pays a moral reward in itself, the idea of marketing the fact that you are supporting a good cause — as with this eye-catching display at Kohl’s — is a valuable promotional tool.

 Shoppers are reluctant to go out and spend in this troubled economy, and by showing that you are using some of the income you receive from them to support health, education or the arts, you make them feel good about their purchase.

 One way to do this is to sell merchandise that includes a donation to a charity, for example Greenpeace calendars or UNICEF cards.  Another way is to designate a portion of a product of your own choice to go to a non-profit.  If you can find an item that is available to you at a discounted price, you may be able to make the donation without sacrificing your margin.

Don’t forget the “marketing” component. Use signage in your store, articles in your e-mail newsletters, and notices to the supporters of the charity of your choice to let them know that you are committed to giving back to your community. 

 

Happy Retailing,

Carol “Orange” Schroeder