Cause Marketing
Pinkwashing is a subset of a much larger phenomenon known as cause-marketing. Existing research tends to define cause-marketing as “the process of formulating and implementing marketing activities that are characterized by an offer from the firm to contribute a specified amount to a designated cause when customers engage in revenue-providing exchanges that satisfy organizational and individual objectives” (Harvey, 27-28). That may sound complex, but cause-marketing is likely something you encounter every time you walk into Target or CVS. Cause-marketing involves a for-profit business (the firm) coming to an agreement with a non-profit group (the designated cause) to market a product as benefiting that cause. In other words, the two groups will reach an agreement that usually results in a certain percentage of sales from a product going to that cause. The hope is that the for-profit business will see increased sales and brand reputation since their product is linked to a charity, and the charity in turn gets a sizeable donation.
Cause-marketing extends far beyond just breast cancer- numerous other health based causes, as well as environmental, arts, and human rights organizations, all participate in cause-marketing, just to name a few. It’s also important to differentiate cause-marketing from non-profit marketing. Non-profit marketing only supports the non-profit- things like advertisements, events, direct mail, etc. all seek to raise money solely for the non-profit organization. This is an important distinction, as cause-marketing not only benefits the non-profit, but a money-making firm as well. Cause-marketing links donations to sales, so there is a clear mutual benefit there.
Anything that can be sold can be used for cause-marketing, but some products are particularly successful. “Products that are consumed publicly, such as t-shirts or bracelets, are likely to be more of a hit with consumers than items that are consumed privately (Harvey, 30). The heart of cause-marketing lies in the difference between public and private donations. Businesses and non-profits that engage in cause-marketing are banking on the fact that people want other people to know when they have done a good deed. As one study found, “part of the benefit to consumers of purchasing products linked to charity is getting to communicate their allegiance to the cause to others who see them proudly displaying the logo” (Harvey, 30). If someone simply were to write a check to an organization, presumably no one would know they have done such a thing, unless that person tells them. No matter what reasons someone has for supporting a cause, they also probably like when other people know they support that cause- being known as philanthropic is rarely seen as a bad thing.