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Expensive Marketing Practices for a Good Cause

Tuesday 13th of March 2007 01:46:50 AM

Buying T-Shirts from companies that promise some or all of the proceeds will go to charity is enough to make many people spend their money. After all, who couldn’t use another t-shirt? But when companies like the Gap, who helped launch the (RED) campaign, which was created as a way to inform more people about the AIDS crisis in Africa, were asked how much money was actually donated for AIDS treatments and other items needed, the company refused to answer the question.

While people may have good intentions when they buy T-Shirts and other items for charity, much of the money is actually spent on marketing costs. “There's a wide variety of cause-related marketing out there, and ... consumers need to ask the tough questions. They have a right to know more of the details because the company is claiming an association with a cause,” said marketing consultant Mark Feldman.

The Gap, along with other companies, has partnered with The Global Fund, an organisation that uses money to help fight global diseases. “We hijacked marketing budgets that would normally have gone for good products, but now they're going for good products that will also bring money into Africa. There are 10 miles of Gap windows in the United States. And for many weeks [those displays] were talking about AIDS in Africa,” said Tamsin Smith, president of (RED).

But those who pay for T-Shirts and who believe their money is going to be used to help people expect a lot more than just making others aware that these health problems exist. This new practice, called Cause Marketing, is being watched carefully by consumer groups and others. While buying t-shirts and other items in the name of charity is a great idea, it is important that consumers know how much of the money will be donated to charity.

(c)Katie Waybill, www.sxc.hu