By ELLEN READ
Small businesses may not see many advantages in forming a relationship with a non-profit organisation but a visiting United States expert believes they should think again.
Dr Richard Steckel is a world authority in cause-related marketing - charity and profit-making organisations aligning for mutual advantage.
The concept, also known
as public purpose marketing, allows non-profit organisations to develop long-term income earning strategies by aligning with for-profit organisations, enabling them to become less reliant on short-term donations.
The relationship also benefits the businesses, which can align themselves with causes they and their customers believe in. This social responsibility can become a significant factor in a company's bottom line by enhancing its corporate or brand image.
In New Zealand larger companies are more involved with cause-related marketing, but Dr Steckel predicts that in a few years there will be a surge in small and middle-sized businesses adopting the same practices.
Examples include a dry cleaner who offers to act as a drop-off point for clothing donations and cleans them before passing them on to a charity, or a florist who might give customers a discount and donate 10 per cent of profits to an animal charity for a special day.
Plans like these can help small businesses stand out and become recognisable.
"They create a personality for the store and give people a reason to seek them out," says Dr Steckel.
"It's good business, and good business and being a good person can go hand in hand. The topic is not going away worldwide. If anything it's increasing."
A word of caution, though - don't do it insincerely, he says. Do it because you believe in it or you'll be seen as a fraud.
Dr Steckel founded the AddVenture Network to promote and develop cause-related marketing strategies. He has since developed income strategies and services for more than 150 non-profit and for-profit organisations.
During his New Zealand visit he spoke at a breakfast meeting organised by businessman Dick Hubbard and presented a short course at the University of Auckland.
