According to IEG Sponsorship Report, this category grew to $733 million in US in 2001. There are a number of reasons for that growth. A Cone Communications survey found that: - 80 percent of Americans have a more positive image of companies that support a cause they care about - nearly two-thirds of Americans say they would likely switch brands or retailers to one associated with a good cause - more than half said they would pay more for a cause marketer’s products or services - 87 percent of employees at organizations with a cause marketing program feel a strong sense of loyalty to their company as opposed to 67 percent of those at companies that do not support causes

As you can see, adopting good causes can be beneficial, but your company’s involvement should be planned just as you plan any other business activity. Here are five steps to developing an effective cause marketing program.

Choose Your Cause Strategically. Search for a single charitable cause that you and your employees can believe in, as well as one that helps advance your business objectives. For instance, a company may choose an educational cause to ensure it has a continuing pool of well-educated workers. Many companies seek issues that align with their products, services or geographic service area. Others look for issues that resonate with niche audiences or that differentiate them in marketplace. You may want to consider choosing an emerging issue. This way, your company will be a pioneer rather than just another in a list of companies.

What? You didn't know that? If you truly want to succeed in business, you need to learn and understand how using psychology can set you apart from rest of your competition and take your business to next level.

Psychology can be applied to all aspects of your sales and marketing efforts and will give you that all important "edge" over your competitors.

When you write an ad or sales letter, seek first to understand, then to be understood. In other words, first strive to understand what's going on in readers mind, and attempt to allay any fears or doubts.

When you do this, reader will have perception that you understand and care about him and he in turn will begin to care about and understand you--thus greatly increasing your chances for making sale.

People desperately want to feel cared for and understood more than anything else, and businesses that understand this vital pyschological factor will gain a major advantage over their competitors.

Also, when writing your marketing materials, bear in mind, people respond more to what they are going to lose than to what they are going to gain. It's called "fear of loss."

Ask yourself: What will my customers stand to lose if they do not buy my product or service?

In your sales letter, mention to your readers that it will only take a few minutes, to show them how they can benefit from what you're offering. This will mentally slow them down and partially alleviate any hesitation on their part.

In addition, reward them for taking time to read your letter. Offer to give them a free gift. For example: free reports or gift certificates work extremely well as freebies. Why? Because they're low-cost with a perceived high value--and perception is reality. Did you know you can increase your sales by using pictures of attractive people using your product or service? It's true.

Why is this? Well, first of all, it humanizes your product or service and prospects perceive you to be more professional and trustworthy. Again, perception is reality.

Secondly, people like looking at attractive people. Big business has known this for years. Just look at how attractive those people are in magazine ads and on television commercials.

You can also use this knowledge to your advantage on your business cards, brochures and website. This is especially true for small "mom and pop" businesses. If you're reasonably attractive, always include your photo on your website and marketing materials.

The reverse also holds true. If you're not attractive, you're better off not using a picture. You risk losing customers and turning people off. The same rule applies if you're a minority. You're better off not using your picture, regardless of how attractive you are.