What Works in a Downturn: Purpose-Branding or Cause-Marketing

Despite the downturn, there is evidence that consumers are interested in “purpose branding.”
That’s the spin from Procter & Gamble’s Jim Stengel who (surprise, surprise) is leaving P&G at the end of the month to join a “purpose branding” consultancy.
Back-up data: In a study released this month, 26% of consumers expect companies to give more support to causes and nonprofits in an economic downturn, while 52% expect companies to maintain existing programs. Another 79% of consumers said if price and quality were similar, they would switch to a brand associated with a good cause.
OK, I’ll buy it.
And if your company is looking to do some cause-related branding, here’s a cool green company you should team up with: The Solar Electric Light Fund >>

One Reply to “What Works in a Downturn: Purpose-Branding or Cause-Marketing”

  1. The cause-related marketing stuff is fine, but I have to disagree. What works best in a downturn is adding value to your product. Give consumers more, not less. That is what builds brand equity in lean times. I have tested this in my work over the past two downturns for several consumer groups.

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