Cause Marketing vs Purpose Driven Marketing: Understanding the Key Differences

Their mission was clear from the beginning: to protect the environment while providing consumers with the best cup of coffee. They source beans from sustainable farms and use biodegradable packaging. But they wanted to do more than just sell coffee; they wanted to make a difference.

GreenBeans is one of those purpose-driven brands that have mastered the art of marketing their mission. But what is purpose-driven marketing, how is it related to mission-driven marketing, and how can you do them right?

This article will answer these and will also provide purpose-driven marketing examples to give you an idea of how other brands do it.

In today’s socially-conscious world consumers increasingly expect companies to stand for more than just profits. Giving back and driving social change have become pivotal for brand reputations. This massive shift has led to the rapid rise of cause marketing and purpose driven marketing. However while the two sound similar, they have distinct approaches. Understanding the nuances is crucial for companies seeking to make an impact.

In this comprehensive guide, we’ll examine cause marketing vs purpose driven marketing to uncover the pros, cons and best practices for each strategy

What is Cause Marketing?

Cause marketing refers to companies teaming up with charitable causes for mutual benefit Typically, this involves short-term campaigns where a percentage of sales is donated to a specific non-profit organization

The key hallmarks of cause marketing include:

Defined duration – Usually a seasonal campaign lasting weeks or months.
Transactional giving – Donations tied to purchases during the campaign period.
Specific charity focus – Spotlighting one or a small number of partner non-profits.
Business promo emphasis – Heavily branded campaigns aimed at driving sales.
Verifiable results – Clear metrics like total funds raised or items donated.

Popular examples include MAC Cosmetics’ Viva Glam campaign for HIV/AIDS or TOMS Shoes donating a pair of shoes for every one sold.

The Pros of Cause Marketing

Immediate impact – Delivers tangible resources to causes within a short time frame.
Light commitment – Easy for companies to implement without major investments.
Sales driver – Motivates socially-conscious purchases and boosts revenue.
PR and brand boost – Generates positive press and consumer perception.
Simple messaging – Clear call-to-action and impact metrics make campaigns easily understood.

For companies new to social initiatives, cause marketing offers low-risk, high-reward benefits.

The Cons of Cause Marketing

Superficial – Can seem like token PR gestures rather than substantial giving if not authentically communicated.
Short-term – Donations and involvement disappear once campaign ends. Provides minimal lasting impact.
Narrow focus – Spotlighting a single organization fails to address broader societal issues.
Metrics obsession – Heavy focus on quantifiable donations and sales metrics can overshadow social impact.
Message confusion – Consumers struggle to differentiate cause partnerships from overall company values and practices.

While delivering immediate resources, critics argue cause marketing fails to enact systemic change.

What is Purpose Driven Marketing?

Purpose driven marketing integrates social impact into a company’s core identity. Rather than limited campaigns, the company lives out its societal purpose daily through its brand, culture, operations and business model.

Purpose driven marketing involves:

Long-term view – Sustained, woven into the business versus limited campaigns.
Values-focused – Championing beliefs vs transactions and vanity metrics.
Broader focus – Tackling deeper issues and enacting systemic change.
Integrated approach – Social impact infused across all operations from supply chain to hiring.
Authentic communication – Transparently embedding mission into internal and external messaging.

Patagonia’s consistent environmental advocacy and Ben & Jerry’s progressive ethos exemplify purpose driven branding.

The Pros of Purpose Driven Marketing

Holistic impact – The approach produces far-reaching change across business ecosystems and society.
Employee motivation – Having a higher purpose energizes and engages workplace culture.
Consumer connection – Customers are drawn to brands with shared values and convictions.
Long-term gains – Developing goodwill, loyalty and authority as a steward of change.
Societal influence – The potential to inspire other companies and push markets in a more responsible direction.

Purpose driven marketing fosters change through visionary leadership versus reactive campaigns.

The Cons of Purpose Driven Marketing

Major investment – Requires substantial time and resources to integrate social impact throughout operations.
Risk – Taking value-driven stances on issues can alienate some consumers and stakeholders.
Difficult messaging – Communicating multifaceted impact and intent poses branding challenges.
Intangible results – Progress toward purpose can be difficult to quantify and convey externally.
Long runway – Shifting entirely to a purpose driven approach happens slowly over years.

With major commitments required, purpose driven marketing has hurdles for companies just starting their social impact journey.

Comparing Cause Marketing vs Purpose Driven Marketing

While both offer benefits, cause marketing and purpose driven marketing diverge in their approach:

Cause Marketing	Purpose Driven Marketing
Transactional	Values-based
Short-term	Long-term
Campaign focus	Strategy focus
marketing leveraged for donations	Donations leveraged for marketing
Brand first	Purpose first
Easy to deploy	Substantial commitment
Clear metrics	Intangible progress

The path a company chooses depends on current goals, resources and motivations. Purpose driven marketing offers greater potential impact but requires tremendous vision and investment.

Best Practices for Social Impact Marketing

For companies weighing their options, here are best practices to maximize benefits:

Cause Marketing

Choose charity partners strategically based on shared values and impact potential. Don’t default to the usual big names.
Design campaigns that allow substantive donations versus minimal proceeds from promotions. Don’t be cheap.
Add volunteering, awareness building and other support beyond just throwing money at non-profit partners.
Develop multi-year partnerships with charities instead of one-off campaigns to drive lasting change.

Purpose Driven Marketing

Define your purpose thoughtfully based on sincere social and environmental commitments versus chasing trends.
Make incremental changes over time allowing purpose to genuinely permeate operations instead of box-checking.
Communicate purpose consistently across messaging touchpoints but avoid overbearing platitudes. Demonstrate change through actions.
Leverage purpose as a compass for business decisions rather than allowing it to be sidelined by typical metrics like short-term profits.

The Purpose Spectrum

Rather than a binary choice between cause marketing and purpose driven marketing, companies can evolve across a purpose spectrum:

Transactional Cause Marketing – Initial corporate social responsibility efforts through limited campaigns.
Integrated Cause Marketing – Strategic, multiyear cause partnerships fully aligned with brand values.
Purpose Driven Marketing – Core social impact focus woven throughout all operations and culture.
Humanitarian Model – Like Patagonia, a self-sustaining company exists only to drive resources to environmental causes.

With each step, companies embed purpose deeper into their DNA. The journey requires vision, patience and commitment.

In closing, cause marketing and purpose driven marketing offer distinct benefits based on a company’s goals and resources. While purpose driven marketing drives transformational change, cause marketing provides a manageable entry point. However, smart cause marketing design can still deliver meaningful impact.

Ultimately, consumers support brands that genuinely work to leave the world better – whether through short-term campaigns or purpose-led business models. Any step on the purpose spectrum is progress. But an authentic, long-term commitment to driving change will attract today’s conscious consumers and top talent. Purpose is the business investment of the future.

Key Takeaways:

Cause marketing involves promotional campaigns supporting partner non-profits. Purpose driven marketing bakes social impact into the core business.
Cause marketing is transactional and short-term. Purpose driven marketing champions values and systemic change.
Cause marketing provides easy wins but superficial impact. Purpose driven marketing requires major investment but inspires societal transformation.
Companies can evolve across a purpose spectrum, embedding social impact deeper into operations over time.
Consumers support brands that genuinely use business as a force for good, whether through individual campaigns or purpose-led models.

cause marketing vs purpose driven marketing

Define Your Brand Purpose

This is the foundation of your strategy. Your purpose should go beyond making profits but also reflect what your company stands for and why it exists. Think about the change you want to see in the world or the impact you want to have.

An example is Google’s “To organize the world’s information and make it universally accessible and useful.” The company’s purpose is all about making information easily accessible to everyone.

Understand Your Audience

Knowing what matters to your audience is crucial. Conduct market research to understand their values, interests, and concerns. This will help you align your brand’s purpose with causes that resonate with them.

For instance, if you are targeting young adults, you should focus on environmental protection or social justice. Or, if you are targeting parents, you may want to focus on education or healthcare.

This is exactly how Spotify did. They analyzed the listening habits of their users to provide custom playlists, discover new music, and even host events that listeners might enjoy. Their “Wrapped” campaign, which provides users with a roundup of their listening statistics at the end of each year, has been widely popular.

This shows that Spotify understands what its audience values (personalization and discovery) and utilizes this understanding to enhance user engagement.

Purpose-Driven Marketing: Why You Need More Than Good Advertising

What is the difference between cause marketing and purpose marketing?

Cause marketing is, for the most part, against something. Purpose, on the other hand, tends to lean into support for something. Many brands are against environmental pollution, but Seventh Generation ’s purpose is to help people live a more natural and chemical-free life.

Why is cause marketing important?

Cause Marketing helps brands stand out in crowded markets. It attracts socially conscious consumers who support meaningful causes. Brands gain credibility and trust by showcasing their social responsibility. Cause Marketing builds emotional connections with customers, fostering loyalty.

Why are people responding more to purpose than cause marketing?

The reason for this is simple: People are increasingly responding more to purpose than cause. Cause marketing is, for the most part, against something. Purpose, on the other hand, tends to lean into support for something.

What are the benefits of a social cause marketing campaign?

Amplifies Brand Visibility: Cause Marketing campaigns often receive widespread media coverage, increasing brand visibility and exposure to a broader audience. Creates Positive Publicity: Media coverage of brands supporting social causes generates positive publicity, enhancing brand perception and public goodwill.