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Marketing is a sector that is facing huge disruption and change. In the new marketing environment many, if not most of the old approaches do not work. Sustainability thinking offers many solutions to help marketers be successful in this new landscape. This presentation explains how brands can become better marketers through sustainability, and references many examples where it is already happening. It also explains how corporate structures need to transform in order to take advantage.
Citation preview
Can sustainability be a route to becoming a
better marketer?
What is the job of marketing?
“Marketing people like to say that a product is more than a physical object. There is a story a promise - that’s what the brand represents.
Sometimes this story is true and sometimes unfortunately it is not. The process of marketing is to uncover and coax out a story that is buried inside the product.
What happens next is a battery of focus groups, ethnographies and brainscans to uncover what the consumer wishes the product really was.Then the marketing budget is spent telling lies about the product”
Adding some sheen?
Baked In by Alex Bogusky and John Winsor
What is the job of sustainable
marketing?
Adding some green
sheen?
Green sheen is definitely not the answer!
An evolutionary perspective on the new challenges of
marketing...
and how sustainability thinking can
overcome these challenges
what works - has changed
what is possible - has changed
what people want - has changed
platform rules characters
the rulesthe playersthe platform
In ads we trust
what works has changed
Beliefthatcompaniesgenerallytellthetruthinadshasfallendownfrom13%tojust6%2002to2006
Advertising resistance
ThebrandbubbleJohnGerzemaandEdLebar
Source: nVision ResearchBase: 11,000 aged 15+ / 5,000 aged 16-64 (Nordics), 2006
“Advertising does not reflect my life nowadays”% who agree / strongly agree, by age within country
Media monopoly
Can’t get my message across
what works has changed
Source: Jupiter/Merrill Lynch/Deloitte State of Media 2007, Big Six Study 2007 (US/Germany)
TVviewing(UK.)NoofprogrammesintheUKthatreachedover15million?
1999–1772006–22007–0Barbdata
Source: nVision researchBase: 9000 internet users aged 15+
Simultaneous TV watching & internet use
Trust and respect in
brands
Falling trust and respect
what works has changed
TheHenleycentreintheUKhasrecordedthatsince1999the17largesticonicbrandshaveshowna16%declineinconsumerTRUST
Y&Rresearchfrom2008showsa50%dropinTRUSTinthelast9years
Engagement
Build trust and respect
Behaviour - the company is the message
Fromlossoftrusttosustainabilitychampions
Trustismoreimportanttousthanithaseverbeen.GlobalchiefmarketingofSicerMcDonalds
Sustainability thinking can help...
Digital transparency
Hide behind the brand
what’s possible has changed
what’s possible has
changed
Brand directed media
People directed media
what’s possible has changed
Product di≠erentiation
Commoditisation
Branddifferentiationdecline40outof46categoriesshowedadeclineinabilitytodifferentiatebasedonCopernicusbrandmetrics
Di≠erentiation
Reputation risk/opportunity
Open dialogue
Sustainability thinking can help...
what people want has changed
Inhumancompanies
Human companies
“A business has a voice. You can usually hear it -- authentic or unauthentic -- most obviously and transparently, on its Web site. Even before the last graphic finishes downloading, you can usually tell if the company speaks with passion, if it’s lost or uninterested.
The Cluetrain Manifesto - Rick Levine, Christopher Locke, Doc Searls, and David Weinberger.
Authenticity seeking
Brand identity
what people want has changed
40%ofEuropeansnowclaimthattheyactivelytryto“supportsmallbrandsorproducerswheneverIcan”accordingtonVisionResearch.
AegisMediaresearch
Vision
Meeting short term needs
Fitting with long term
Values
what people want has changed
“In‘BuiltToLast’,JerryPorrasandMichaelCollinsdemonstratethat–inthemediumandlongerterm–purpose‐drivenbusinessesoutperformbusinesseswithsimilarassetbases,fromsimilarlocaEons,ofsimilarage,etc.byalargemargin.”MarkEarls,HERD
“Themarketforsomethingtobelieveinisinfinite”HughMacCleod
ThebrandbubbleJohnGerzemaandEdLebar
Relevance - Empathy
Authenticity
Leadership
Sustainability thinking can help...
Using sustainability to answer the new marketing challenges means re-thinking corporate structures
Marketing
Sustainability
Inside out Outside in
The lines become blurred
“Brand Ecosystem”
EmployeesSuppliers Customers
MarketingOperations
ProductHR
CSR
Every part of your business is under scrutiny
But when imbued with sustainability thinking, every part can be brand building
Patagonia - just logistics?
Digital transparency
16 products
Interactive
Open discussionWe believe it’s important for our customers to know the true environmental and social impact of a garment they purchase.
“Casey Sheahan, CEO, Patagonia
Zappos – just human resources?
$2000 to quit
random acts of kindness
To us, customer service isn't just a department -- it is the entire company.
10 core values
$1.2 billion
employees in ads
“
Nike greenxchange – just product development?
open-source
collaborative
400 patents shared
innovation communities
Our hope is this will unleash new innovation to help solve current obstacles to sustainability issues“
Mark Parker, Nike CEO
Dole - just supply chain management?
traceability
digital transparency
3-digit farm code
It's not enough for the customer to love your product. They have to love your process as well.“
The Cluetrain Manifesto
25+ farms
carbon neutral
educate and engage
leadership on big issues
News Corp – just corporate comms?
drives a hybrid
Imagine if we succeed in inspiring our audiences to reduce their own impacts on climate change by just 1 per cent. That would be like turning the state of California off for almost two months.
“Rupert Murdoch, CEO News Corp
Danone Grameen - just CSR?
6 ¢
multinational social business
partnership
1,600 new jobs
new marketA great opportunity to make progress and take another huge step towards fulfilling our mission: to bring health through food to as many people as possible.
“Franck Riboud, CEO Groupe Danone
Pepsi Refresh – beyond brand communications?
1155 ideas this month
6 categories
$5,000 - $250,000
$25 million
We decided that this year it was time for the brand to actually go within culture and actually move something forward, so that it was actually getting engaged with consumers.
Frank Cooper, CCEO, PepsiCo
“
“Brand Ecosystem”
EmployeesSuppliers Customers
MarketingOperations
ProductHR
CSR
Every part of your business is under scrutiny
But when imbued with sustainability thinking, every part can be brand building
The future belongs to a very different kind of person with a very different kind of mind – creators and empathizers, pattern recognizers and meaning makers.
“
Daniel H. Pink