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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”
                        Baked In by Alex Bogusky and John Winsor




 Adding some
   sheen?
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


                           the rules
                           the players
                           the platform



platform      rules     characters
what works has changed

                                                                Advertising
 In ads we trust                                                resistance



                         Belief
that
companies
generally
tell

                         the
truth
in
ads
has
fallen
down

                         from
13%
to
just
6%
2002
to
2006

                             The
brand
bubble
­
John
Gerzema
and
Ed
Lebar
“Advertising does not reflect my life nowadays”
                             % who agree / strongly agree, by age within country




Source: nVision Research
Base: 11,000 aged 15+ / 5,000 aged 16-64 (Nordics), 2006
what works has changed

                                                        Can’t get my
          Media                                        message across
         monopoly




                         TV
viewing
(UK.)

No
of
programmes
in

                         the
UK
that
reached
over
15
million?
                              1999
–
177
                              2006
–
2

                              2007
–
0
                              Barb
data

                                          Source: Jupiter/Merrill Lynch/Deloitte State of Media 2007, Big Six Study 2007 (US/Germany)
Simultaneous TV watching & internet use




Source: nVision research
Base: 9000 internet users aged 15+
what works has changed



    Trust and                                       Falling trust
    respect in                                      and respect
      brands
               Y&R
research
from

               2008
shows
a
50%

               drop
in
TRUST
in
the

               last
9
years





              The
Henley
centre
in
the
UK
has

              recorded
that
since
1999
the
17

              largest
iconic
brands
have
shown
a

              16%
decline
in
consumer
TRUST
Sustainability thinking can help...




Engagement
                        Trust
is
more
important
to
us
than
it
has
ever
been.

                                                                            

                                  Global
chief
marketing
ofSicer
McDonalds





                                                                                  From
loss
of
trust
to

Build trust and respect                                                         sustainability
champions




Behaviour - the company is
the message
what’s possible has changed




  Hide behind                     Digital
   the brand                  transparency
what’s
possible has
 changed




 Brand         People
directed       directed
 media          media
what’s possible has changed



           Product                                             Commoditisation
        di≠erentiation




                              Brand
differentiation
decline
­
40

                              out
of
46
categories
showed
a

                              decline
in
ability
to
differentiate

                              based
on
Copernicus
brand
metrics
Sustainability thinking can help...




Di≠erentiation


Reputation risk/
opportunity


Open dialogue
what people want has changed




      Inhuman                                                                      Human
     companies                                                                   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.
what people want has changed




         Brand                                      Authenticity
        identity                                     seeking



                         40%
of
Europeans
now
claim
that

                         they
actively
try
to
“support
small

                         brands
or
producers
whenever
I

                         can”
according
to
nVision
Research.
                         Aegis
Media
research

what people want has changed



 Meeting short                                                     Fitting with
  term needs                                                       long term
                                                                      Values
           The
brand
bubble
­
John
Gerze
                                        ma
and
Ed
Lebar
                                                                   “In
‘Built
To
Last’,
Jerry
Porras
and
Michael

                                                                   Collins
demonstrate
that
–
in
the
medium

                                                                   and
longer
term
–
purpose‐driven
businesses

                                                                   outperform
businesses
with
similar
asset

                                                                   bases,
from
similar
locaEons,
of
similar
age,

                                                                   etc.
by
a
large
margin.”
                                                                   Mark
Earls,
HERD

                                                          Vision



                                                                                       “The
market
for

                                                                                       something
to

                                                                                       believe
in
is
infinite”

                                                                                                             

                                                                                       Hugh
MacCleod
Sustainability thinking can help...



Relevance -
Empathy


Authenticity


Leadership
Using
sustainability to
answer the new
marketing
challenges
means re-thinking
corporate
structures
Inside out Outside in




                           Sustainability



                            Marketing



The lines become blurred
“Brand Ecosystem”

            Operations                          CSR                        Marketing




                               HR                            Product




           Suppliers                        Employees                         Customers




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 discussion
                              “   We 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?




“       To us, customer service
        isn't just a department --
        it is the entire company.


$2000 to quit

random acts of kindness

10 core values

employees in ads

$1.2 billion
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?




3-digit farm code

25+ farms

traceability

digital transparency


                          “    It's not enough for the
                               customer to love your
                               product. They have to love
                               your process as well.
                                           The Cluetrain Manifesto
News Corp – just corporate comms?




leadership on big issues
                                 “     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.

carbon neutral
                                                 Rupert Murdoch, CEO News Corp
educate and engage

drives a hybrid
Danone Grameen - just CSR?




                                “
new market
                                    A great opportunity to make
partnership                         progress and take another
                                    huge step towards fulfilling
multinational social business       our mission: to bring health
                                    through food to as many
6¢                                  people as possible.

1,600 new jobs
                                          Franck Riboud, CEO Groupe Danone
Pepsi Refresh – beyond brand communications?




“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
                                               $25 million

                                         $5,000 - $250,000
 getting engaged with
 consumers.                                  6 categories
 Frank Cooper, CCEO, PepsiCo
                                     1155 ideas this month
“Brand Ecosystem”

            Operations                          CSR                        Marketing




                               HR                            Product




           Suppliers                        Employees                         Customers




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

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Can sustainability thinking help you be a better marketer

  • 1. Can sustainability be a route to becoming a better marketer?
  • 2. 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” Baked In by Alex Bogusky and John Winsor Adding some sheen?
  • 3. What is the job of sustainable marketing? Adding some green sheen?
  • 4. Green sheen is definitely not the answer!
  • 5. An evolutionary perspective on the new challenges of marketing... and how sustainability thinking can overcome these challenges
  • 6. what works - has changed what is possible - has changed what people want - has changed the rules the players the platform platform rules characters
  • 7. what works has changed Advertising In ads we trust resistance Belief
that
companies
generally
tell
 the
truth
in
ads
has
fallen
down
 from
13%
to
just
6%
2002
to
2006 The
brand
bubble
­
John
Gerzema
and
Ed
Lebar
  • 8. “Advertising does not reflect my life nowadays” % who agree / strongly agree, by age within country Source: nVision Research Base: 11,000 aged 15+ / 5,000 aged 16-64 (Nordics), 2006
  • 9. what works has changed Can’t get my Media message across monopoly TV
viewing
(UK.)

No
of
programmes
in
 the
UK
that
reached
over
15
million? 1999
–
177 2006
–
2
 2007
–
0 Barb
data Source: Jupiter/Merrill Lynch/Deloitte State of Media 2007, Big Six Study 2007 (US/Germany)
  • 10. Simultaneous TV watching & internet use Source: nVision research Base: 9000 internet users aged 15+
  • 11. what works has changed Trust and Falling trust respect in and respect brands Y&R
research
from
 2008
shows
a
50%
 drop
in
TRUST
in
the
 last
9
years
 The
Henley
centre
in
the
UK
has
 recorded
that
since
1999
the
17
 largest
iconic
brands
have
shown
a
 16%
decline
in
consumer
TRUST
  • 12. Sustainability thinking can help... Engagement Trust
is
more
important
to
us
than
it
has
ever
been.
 
 Global
chief
marketing
ofSicer
McDonalds
 From
loss
of
trust
to
 Build trust and respect sustainability
champions Behaviour - the company is the message
  • 13. what’s possible has changed Hide behind Digital the brand transparency
  • 14. what’s possible has changed Brand People directed directed media media
  • 15. what’s possible has changed Product Commoditisation di≠erentiation Brand
differentiation
decline
­
40
 out
of
46
categories
showed
a
 decline
in
ability
to
differentiate
 based
on
Copernicus
brand
metrics
  • 16. Sustainability thinking can help... Di≠erentiation Reputation risk/ opportunity Open dialogue
  • 17. what people want has changed Inhuman Human companies 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.
  • 18. what people want has changed Brand Authenticity identity seeking 40%
of
Europeans
now
claim
that
 they
actively
try
to
“support
small
 brands
or
producers
whenever
I
 can”
according
to
nVision
Research. Aegis
Media
research

  • 19.
  • 20. what people want has changed Meeting short Fitting with term needs long term Values The
brand
bubble
­
John
Gerze ma
and
Ed
Lebar “In
‘Built
To
Last’,
Jerry
Porras
and
Michael
 Collins
demonstrate
that
–
in
the
medium
 and
longer
term
–
purpose‐driven
businesses
 outperform
businesses
with
similar
asset
 bases,
from
similar
locaEons,
of
similar
age,
 etc.
by
a
large
margin.” Mark
Earls,
HERD Vision “The
market
for
 something
to
 believe
in
is
infinite”
 
 Hugh
MacCleod
  • 21. Sustainability thinking can help... Relevance - Empathy Authenticity Leadership
  • 22. Using sustainability to answer the new marketing challenges means re-thinking corporate structures
  • 23. Inside out Outside in Sustainability Marketing The lines become blurred
  • 24. “Brand Ecosystem” Operations CSR Marketing HR Product Suppliers Employees Customers Every part of your business is under scrutiny But when imbued with sustainability thinking, every part can be brand building
  • 25. Patagonia - just logistics? Digital transparency 16 products Interactive Open discussion “ We believe it’s important for our customers to know the true environmental and social impact of a garment they purchase. Casey Sheahan, CEO, Patagonia
  • 26. Zappos – just human resources? “ To us, customer service isn't just a department -- it is the entire company. $2000 to quit random acts of kindness 10 core values employees in ads $1.2 billion
  • 27. 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
  • 28. Dole - just supply chain management? 3-digit farm code 25+ farms traceability digital transparency “ It's not enough for the customer to love your product. They have to love your process as well. The Cluetrain Manifesto
  • 29. News Corp – just corporate comms? leadership on big issues “ 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. carbon neutral Rupert Murdoch, CEO News Corp educate and engage drives a hybrid
  • 30. Danone Grameen - just CSR? “ new market A great opportunity to make partnership progress and take another huge step towards fulfilling multinational social business our mission: to bring health through food to as many 6¢ people as possible. 1,600 new jobs Franck Riboud, CEO Groupe Danone
  • 31. Pepsi Refresh – beyond brand communications? “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 $25 million $5,000 - $250,000 getting engaged with consumers. 6 categories Frank Cooper, CCEO, PepsiCo 1155 ideas this month
  • 32. “Brand Ecosystem” Operations CSR Marketing HR Product Suppliers Employees Customers Every part of your business is under scrutiny But when imbued with sustainability thinking, every part can be brand building
  • 33. 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