Communicating in the New Normal World: The Importance of Brand Purpose

Communicating in the new NORMAL world THE IMPORTANCE OF BRAND PURPOSE © PENN, SCHOEN & BERLAND ASSOCIATES, LLC

We live in a world that is rapidly changing… Changing Political Trends Changing Technology Trends Changing Economic Trends Changing Stakeholder Trends

Changing Political Trends

Changing Economic Trends Increased Scrutiny of Corporations Economic Power – The Rise of Asia Global Recession

Changing Technology Trends More Social More Networked More Mobile

Changing Stakeholder Trends Stakeholders are now demanding more from corporations: More Transparency More Responsibility More Communication

Finding the New Normal in Communications: Building a Brand Purpose CHANGING CORPORATE EXPECTATIONS

In today ’s world, a corporation’s image and reputation is more than a function of its performance and citizenship Rather, it is a product of its larger purpose MARKET PERFORMANCE Good value Variety Convenience In touch with changing needs Is a leader CORP CITIZENSHIP Employs fair labor practices Is responsible Is trustworthy Markets carefully Environmentally conscious methods Helps local community Has integrity Corporate Citizenship = the interaction between the company and society Market Performance = the perceptions built as a result of delivering products and services BRAND PURPOSE

Having a purpose lifts a brand ’s meaning above the tangible benefits of any specific product or service. “ Every brand makes a promise. But in a marketplace in which consumer confidence is low and budgetary vigilance is high, it's not just making a promise that separates one brand from another, but having a defining purpose.” – Allen Adamson, Landor Associates

It is essential to align business strategy and communications across key stakeholders in order to have a strategic advantage in the marketplace Customers Employees Shareholders Brand Purpose Regulators Media

Companies that seek to build trust and engage honestly and transparently with all key stakeholders need to have a well defined Purpose – and to abide by it in everything they do Three key elements to enhancing brand purpose: Transparency Responsibility BRAND PURPOSE Communication

Defining a strong brand purpose has several implications:
Clarifies employees ’ intrinsic value to the company and its reputation as a brand
Rallies customers behind a force larger than a company ’s products or services and creates a greater understanding of what the brand stands for
Takes you into the heart of key audiences to foster a strong emotional connection , further integrating the brand into their every day lives
Creates a differentiated and stronger competitive position in the marketplace
1 2 3 4

Transparency: A company ’s brand purpose answers three key questions Who are we? What do we stand for? How is this evidenced in our behavior? 1 2 3

Responsibility: Linking CSR to Business Strategy Green Brands by Country 1 2 3 4 5 6 7 8 9 10

Communication: Engaging in a two way dialogue with stakeholders
“ Global companies are now demonstrating greater comfort with the interactive nature of social networks and are more willing to engage their stakeholders directly on these platforms”
– Mark Penn, CEO of Penn Schoen Berland
Digital isn ’t an option, it’s a requirement

A company that looks at its brand and asks:
What purpose does it serve to its customers and its shareholders?
How to bring this purpose to life through every customer experience?
Is the company most likely to beat its competition.
Business Impact of Brand Purpose ©Penn, schoen&berland associates, llc. Purpose

IBM – Smarter Planet
Company in service of improving the planet by making it “smarter”
Excellent communication of what the company is doing and stands for
Conclusions
Aligns brand and action; value and vision
Opportunity for engagement

The initiative is clearly defined, branded, and unites business and CR interests
They do not force all CR to fit, it leverages what works
Greenhouse gas emission reduced by 1.01 mn MTs
Energy reduced by 4.42 mn MM BTUs.
GE - Ecomagination

“ We meet everyday needs for nutrition, hygiene and personal care with brands that help people feel good, look good and get the most out of life.” Shakti Entrepreneur: Empowering women in poorest rural India – Direct-to-home distributors; 600-800 INR/month Shakti Vani: Spreading health and hygiene awareness – Brand advocates: 50 million touched by 2007 Unilever - Project Shakti

Communicating your Brand Purpose
The Opportunity:
Define your brand purpose
Communicate your brand purpose
Enlist customers in your movement
Grow
Source: Penn Schoen Berland – Landor Associates – Burson-Marsteller Corporate Social Responsibility Poll, 2010 In the last year, have you heard about social responsibility from any companies?

Thank You! Michael Berland [email_address]

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Communicating in the New Normal World: The Importance of Brand Purpose

by Penn Schoen Berland on Mar 18, 2011

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