Posts con el tag ‘Positive Marketing’

From Goodvertising to Meaningful Brands

It’s a fact: people value brands less and less. Ninety-one percent of Spaniards say that they could do without brands altogether. The Meaningful Brands study, conducted since 2008 by the Havas Group, shows that a majority of consumers wouldn’t mind if practically all brands disappeared.

One proposed solution is to create “advertising for people”, as argued by Thomas Kolster, who coined the term goodvertising. This is the concept of sustainable communication, which proposes that advertising should be used to improve the planet and educate society.

Just advertising? Communication as a transformative element, as we saw in the last Super Bowl, where ten spots were clearly oriented toward the social value of brands? Or communication as the tip of the marketing iceberg? Let’s review the question of whether brands need more than advertising. Here are two examples I love (two steps forward):

-          Mattel’s iconic Barbie doll is now available in three more realistic body types – tall, curvy and petite – and seven different skin tones. It’s an attempt to make the doll relevant and beloved again. More dolls, more ways for girls to use their imagination with a Barbie. Doing good and making a positive change in people’s lives.

 

-          Pontevedra has been recognised by numerous international bodies – the Urban Institute of Beijing, the prestigious Centre for Active Design, the UN Habitat programme, etc. – for a mobility design that increases the livability of this small Spanish city. The main marketing contribution is Metrominuto, a pedestrian map that indicates walking distances, which has now been introduced in more than 30 cities around the world.

In the words of Miguel Anxo Fernández Lores, the mayor of Pontevedra: “Sometimes I feel like a preacher.” Or, as implied by the Soul Marketing concept, when managers embrace their role as citizen-consumers, learn to grasp contradictions and understand the need to enhance positive effects on society, they can create projects that end up generating solutions and advertising that is valuable to people.

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Cause Marketing: Love it or Hate it

Causegood.com estimates that cause marketing has grown in the past 15 years from $700 million to $2 billion. Cause marketing is growing rapidly and for a good reason: it simply works. It is a business strategy – not just an evolution of philanthropy – that strongly influences purchasing decisions.

It works by providing a growing funding stream for NGOs, reaching $1.9 billion in funds in 2015 in North America and developing a new donor base of millennials who want to support causes through the brands they patronise.

It works, evolves and innovates, as seen in some 2015-2016 cases:

-       Toms Shoes evolved from the “one-for-one concept” to “One Day Without Shoes”: using the Instagram platform where for every photo of bare feet that was tagged they gave a new pair of shoes to a child in need.

-       Doritos with the “It Gets Better” project: For every $10 donated, donors received a bag of rainbow chips. This is a new development called causejacking: when a brand rides the wave of a cause’s popularity.

-       Partnership between Subway and Coca-Cola: For every bottle of Dasani water sold in 2,200 participating US Subways, Coca-Cola donates 30 cents. A total of $125,000 has been donated to World Vision, the NGO that is the largest non-governmental supplier of clean water around the world.

-       Nivea India’s “Mom’s Touch” partnered with Aseema Charitable Trust, an organisation dedicated to providing quality education to children from marginalised communities.

-       Budweiser’s “Give a Damn”, broadcasted during the 2016 Super Bowl. Helen Mirren addressed drunk driving in a wonderfully witty spot in which the only commercial reference was a bottle and a mention of its cold temperature.

Meanwhile, tons of difficulties have been foretold from the NGO sector. A false solidarity in which the real winner is the for-profit company. An unhealthy lifelong dependence for these campaigns. A consumer who likes to maintain this altruistic vein through consumption practices. Consumers’ scepticism towards these campaigns. And thousands of ethical and mental barriers.

Now that Marmite suffers the consequences of the Brexit, let’s benchmark their claim. Cause marketing: do you love it or hate it?

 

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Purpose brands: standing for something

In subjects like Business in Society, we think about what the truth is and the interrelationships between – and the future of – concepts such as CSR and social marketing. The eternal debate about the virtue of sales gains from CSR. Until once again managers find an alternative route to avoid arguing about organisations with a soul (it’s marketing that has a soul!). Let’s give the consumer a more credible value: brands have a soul; brands are becoming purpose-oriented.

When many companies have to fight to turn a profit while competing in price, new leaders emerge, such as Indra Nooyi of PepsiCo, the guest speaker at the recent ESADE Alumni Annual Conference. When digital media generate real-time conversations about companies’ activities and new ways for consumers to access information, consumers expect transparency, authenticity and higher standards of ethical conduct.

Philips has its own index to measure the number of lives the company improves each year, calculated using an algorithm that looks at demand for products directly related to health and how many people those products have affected. Today, Philips is a purpose brand: this KPI explains who they are as a company, their courage to stand for something. This is the only benefit they bring to the world, beyond the proposal of Milton Friedman. And like Philips, there are also the companies ranked by Radley Yeldar, for example.

These are brands that, without being perfect, bring out the enthusiasm in consumers and the talent of the millennial generation that they want to attract. Brands that offer to become part of the solution. When we talk about brands in the non-profit sector, we talk about advocacy or relief brands. But profit-oriented companies are starting to talk about creating movement brands.

Do they work? Take a look at the three following purposes. If you can identify the brands that have these purposes, you’ll know it works.

  • To empower creative exploration and self-expression.
  • To bring inspiration and innovation to every athlete in the world (everybody is an athlete).
  • To help women reconsider and redefine what beauty is.

Want more? Attend the ESADE Alumni conference on purpose brands in early 2017.

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Big food is the new bad underdog

I was invited by Fira de Barcelona to speak at the presentation of Alimentaria 2016 to the international media. In my talk, I described the consumers and the society that the food industry will be facing in the coming years. It’s no trivial matter: Europe has the world’s most highly developed food and agriculture industry. The nine largest companies in the sector move €227 billion each year and employ 750,000 workers.

These are great times to be in the food business, as the general manager of one such company told us at Desayunos ESADE. The future will be built on three main market segments:

-          Emerging countries, which are eager to consume calorie- and protein-rich diets

-          Aging baby boomers, who are looking for healthy foods associated with major changes in the way we produce food and beverages

-          Millennials, the new commanders of food, eager to discover new things

In all three cases, however, there’s a “big chill”: the unstoppable shift to fresh and refrigerated foods. Studies by Technomics and MSI have found that 87% of adults feel that fresh foods are healthier, 80% believe they are tastier, and 78% are making a strong effort to eat more fresh versus processed foods.

Fresh products versus processed food: that’s the challenge for big food producers in marketing terms. “How can we remake ourselves?” (Smuckers CEO); “Big has become bad” (ConAgra CEO); “We understand that increasing numbers of consumers are seeking authentic, genuine food experiences, and they are sceptical of the ability of large food companies to deliver them” (Campbell Soup CEO).

The idea of “processing” – from techniques of curing and salting to the modern arsenal of preservatives — arose to make sure the food we ate didn’t make us sick. Today, society fears that processed food itself is making us unhealthy.

This is a marketing challenge – “the most dynamic, disruptive and transformational time that I’ve seen in my career”, in the words of one marketing professional. Right in front of us.

 

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Messi vs. Cristiano: best poll ever

Persuasion vs. manipulation has been a hot topic in marketing for years. Persuasion is understood as a process that uses written or spoken words to change a person’s attitude or behaviour toward some event, idea, object or other person(s). Manipulation is understood as skilfully managing or influencing people, especially in an unfair manner. Between the two concepts lies a thin red line, which authors like Martin Lindstrom have used to produce bestsellers like Brandwashed: Tricks Companies Use to Manipulate Our Minds.

Our team at ESADE works with a different idea – market orientation – which involves organisations that make changes in products or services for particular purposes, both commercial and social. In essence, the idea is to serve the motto of George R.R. Martin: “When you know what a man wants you know who he is, and how to move him.” Let’s manipulate our solution to make it more attractive.

Hubbub is an organisation with no definitions or mottos: they just like good challenges. When they saw that traditional wellness programmes weren’t working, they challenged themselves to create a better solution. So they manipulated a bid to reduce litter on the streets of London: residents were encouraged to throw their cigarette butts into a special kind of bin – a fascinating and cleverly manipulated bin. Cigarette smokers outside Embankment station can use the new cigarette butt boxes to cast their vote on who they think is the world’s best football player: Cristiano Ronaldo or Lionel Messi.

This is a fun theory approach used in social marketing. More examples: the Peppermint Pointillist displays, also in central London. In this case, Hubbub had to solve a sticky issue: the average piece of chewing gum costs 3p to buy and £1.50 to remove. So a solution was
manipulated: stick your gum on a ‘x’ to reveal an image or fact.

I love these guys: manipulating objects for social good.

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Better to be feared than loved

Machiavelli used both concepts, to be feared and to be loved, as alternative strategies to succeed. Nearly 500 years later, Joseph Nye coined the term soft power to reflect the loved option. And today it’s a marketing strategy.

Soft power is a term coined by Joseph Nye in 2004. The origin of the word was the concern that Nye, former US Under-Secretary of Defense, had with ways in which nations could exert power other than by coercion through force. Soft power was seen as diplomacy aimed at attracting support, creating benevolent disposition, using the power of attraction, subtle persuasion, seduction. “In individuals, soft power rests on the skills of emotional intelligence, vision and communication; in nations it rests upon culture, values and policies.”

Soft power is now a market orientation concept: it is the ability to get what you want by attracting and persuading others to adopt your goals. Heed Nye’s warning: “Soft power is a dance requiring partners.”

Given that we as a human brand, our company as a competitor, will hardly have hard power to succeed (formulas, new raw materials, better technical quality), we focus on our potential soft skills. Or maybe we could apply psychologist Peter Cooper’s statement: “a brand as being like an egg – a hard shell outside, and a soft yolk inside.” Let’s see some cases.

-       Innocent drinks are one of the best embodiments of soft power in a brand: an amiable approach, sponsoring for instance “the big knit” by paying 35 p. to Help the Aged for every woolly hat knitted for its smoothies.

-       Toyota chairman, forced to recall a staggering 8.5 million cars, apologized with “I myself, as well as Toyota, am not perfect.”

-       South Korea has increased its popularity since the ’90s thanks to the Hallyu phenomenon, “the Korean Wave”: K-pop, intense use of YouTube, and efforts to become a centre of excellence in design.

-       Barcelona competing with Rome or Paris as a tourist destination, through soft skills: people, weather, food, shopping…

So let’s think about Machiavelli advice; do you prefer to be feared or loved? Although we must acknowledge the whole quotation: “It is better to be feared than loved, if you cannot be both.” Let’s give to Caesar what is Caesar’s.

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Big players, big marketing

Is social marketing for real? We often get this question during Q&A after our sessions at ESADE, in both the BBA and Executive Education programmes. Social marketing sounds appealing – especially to managers – but is it for real?

Let’s take a look at some big players recently mentioned by Knowledge@Wharton:

-          Amy Chen wanted to put PepsiCo on the cutting edge of figuring out new business models that generate revenue while also having a social impact. She developed a plan for a social business incubator and was given one hour to pitch it to PepsiCo CEO Indra Nooyi. Thus was born Food for Good, an initiative whose mission is “to make healthy food physically and financially accessible for low-income families through sustainable, business-driven solutions”. It’s a fascinating social approach. In marketing terms, as Amy noted, “The task of selling oatmeal to someone is a lot harder than getting them to eat a bag of Doritos.”

-          On March 16, Howard Schultz launched Starbucks’s “Race Together” campaign: the company’s baristas were asked to write the words “Race Together” on customers’ cups as a way to stimulate conversations on race issues. The final result: customers were skeptical, thinking there was an ulterior motive. But, as Prof. Kenneth Shropshire said, “Starbucks is the kind of enterprise that can really have an impact in the long run.” Schultz has no intention of giving up, and will keep trying to stimulate conversations and empathy.

-          Under new CEO Steve Easterbrook, McDonald’s recently announced that its US locations would stop selling chicken raised with antibiotics, in an effort to provide safe and healthy food. Difficulties are expected; McDonald’s is still expected to be the fastest and the cheapest. But Steve Easterbrook thinks of himself as an “internal activist”, eager to change the way his company is perceived through a strategic move that has been described as smart marketing that is also beneficial to customers’ health.

As leaders and internal activists, these three CEOs are surfing the markets, thinking ahead to understand what the market wants, and not being cocky by going into a wave that could crush them. Big players, big marketing, real impact.

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Care as the best marketing strategy

We are launching a new section on this blog: the Student Series. After five years of teaching subjects on the social effects of marketing, we thought it was vital to offer different students a space to share their thoughts on the topic.

Sonia Glushkovsky is a student in the International Bachelor of Business Administration (iBBA) programme at the Schulich School of Business in Toronto, Canada, specialising in Marketing and Operations Management. She is currently studying at the ESADE Business School in Barcelona, Spain, as part of an exchange programme.

Gary Vaynerchuk once noted, ‘The best marketing strategy ever? Care.’ The Oxford Dictionary defines the verb ‘to care’ as ‘Feel concern or interest; attach importance to something’. Therefore, businesses need to be interested in ‘something’, but what? Profit?  Themselves? The answer is society, an important stakeholder for any caring business anywhere in the world.

 Of course, that ‘care’ needs to be authentic and genuine, and not simply a hollow message communicated in a marketing campaign. To achieve a win-win situation, efforts must focus on areas that are aligned with the corporate strategy. A company’s internal corporate culture (values) and daily business operations shape its image and can alter profits dramatically. Many companies have corporate social responsibility programmes and focus on ethical issues such as environmental stewardship, providing safe and equal working conditions, and supporting local charities and communities. Even Henry Ford once said, ‘A business that makes nothing but money is a poor business.’

 Not only does caring make you feel like a good citizen, it boosts your company’s image, reputation, and brand in the eyes of both your customers and the public at large. Partnering with local charities that support your values is a prime example. The intangible and tangible benefits to be gained from social marketing are unlimited, from empowering your employees in order to increase productivity and loyalty to generating free publicity in the media.

 Many companies use social marketing to differentiate themselves in the market. Coca-Cola, for instance, has partnered with the World Wildlife Fund’s campaign to protect polar bears. For animal lovers and conscientious soft-drink consumers around the world, the polar bear effort is a decisive factor when choosing between Coke and Pepsi. 

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Change thyself

“Everyone thinks of changing the world, but no one thinks of changing himself.” This Leo Tolstoy quote was used in a recent McKinsey Quarterly article suggestively titled “Change leader, change thyself”.

Management scholars are forever researching companies that are changing the world or leading change towards a better world. Porter’s shared value strategies, JWT’s circular economy, Kotler’s marketing 3.0, Fordham University’s positive marketing…

On this topic, Prof. Mònica Casabayó and I have shared many experiences, cases and concerns. We have very different viewpoints, as is fitting for a plural school like ESADE. But in our research we have studied whether managers are generating change simply because they wish to change themselves. Business professionals are the same people who buy things, who have a family and a home, and who are concerned about the degeneration of our model and about unsustainability.

All this is covered in the new book Soul Marketing. We have asked various professionals who collaborate with ESADE to tell us about cases of business leaders who are changing the world by first changing themselves. They’re doing this by appealing to their stakeholders and creating value for them. Danone, Ecoembes, Roll’eat and Casa Camper are just some of the cases in which we have seen this sort of change.

Drops fill the ocean. We hope that the book presentation on 4th December, hosted by the ESADE Alumni Marketing Club, will generate minor impacts that help to bring about many individual minor changes.

 

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Learning marketing through service

“What a fascinating time I’ve just had in the classroom: one of the best professional, educational and personal experiences of my career.” When you hear this from a visiting executive who was formerly VP of Marketing at one of the largest FMCG multinationals in the US, you know something interesting happened in that classroom: the first session of the new Social Marketing subject of the ESADE BBA, which uses the Service Learning methodology.

ESADE has developed a programme that uses the Service Learning methodology in several BBA subjects. In case you are unfamiliar with this methodology, it can be summed up as pure experiential marketing. Service learning is a powerful educational experience where interests mesh with information, values and beliefs are formed, and action results.

The students get a lot out of this experience. Let’s summarise: they explore careers; build their resumes; gain valuable work experience; learn new skills; learn things that will benefit them for the rest of their lives; improve their self-esteem; develop a sense of personal satisfaction, initiative, independent reasoning and independent learning; enhance skills learned from experience (observing, asking questions, applying knowledge); develop social responsibility and concern for the welfare of others; as well as a list of benefits analysed in depth by Genie Black.

What’s more, we will help to increase the blood reserves at Catalonia’s blood bank, assist with the Arrels Foundation’s collection of blankets and winter trousers for the homeless, strengthen the knowledge and prospects of the DID-Áctica project for young people with minor disabilities, and participate in a bone marrow donor registration drive with the Josep Carreras Foundation.

The students will do marketing – lots of very good marketing. Although the main objective for the students is reflective observation – watching, listening, recording, discussing and elaborating on the experience – we will also achieve real marketing results. Marketing that has a direct impact on society.

The donation week will be at ESADE Sant Cugat the week of 21st November. Don’t miss out!

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