CMO conference 2010 - Justin Basini

Leadership in Marketing:
from shareholder to stakeholder value
Justin Basini
www.basini.comwww.conservation-economy.org
Founder, Basini & Company
Founder & CEO, Allow (www.i-allow.com)
1

No group hugs

You decide what to take back to your desks or throw away

?
HOW ARE YOU FEELING SO FAR?

REALITY, CONSUMPTION & SUSTAINABILITY
BUBBLES, OVER-CONSUMPTION & TRUST
MARKETING, HUMANITY & BUSINESS

TRUST, BUSINESS& BRANDS

We are at a fork in the road
Where are we going?
Where have we come from?

We are certainly gettingricher
We are certainly gettingolder
We are working more
We are getting fatter
More crime
We are voting less
1840
2008
2000
1950
1900

We are not however getting more satisfied
1840
2008
2000
1950
1900

CONSUMPTION ENGINEERING

Build trust

(WE) MARKETERS ARE THE ENGINEERS OF CONSUMPTION

CAN WE CONTINUE TO BE CONSUMPTION ENGINEERS?
?

THE BRAND ASSET BUBBLE
OVER-CONSUMPTION & THE EFFECTS
WE AREN’T TRUSTED ANYMORE TO DO THE RIGHT THING

Brand asset value is outstripping perceived customer value

Intangible assets are making up a larger proportion of enterprise value
% entreprise value
Source: BAV databases and Y&R historical research (Market Leader Sept 2009)

For strong brands, brand value as total of company value is greater still…
84%
Source: Brand Finance, Market Leader Sept 2009

The ‘valuation gap’ according to consumers
Reality (over last 10 years)
Less trusted than ever
50%
Less liked and respected
12%
Less salient than ever
20%
Quality perceptions decreasing
24%
Differentiation declined in 40/46 categories
Source: BAV 1993-2007 brand data. Copernicus, Jack Trout and Kevin Clancy (Market Leader Sept 2009)

Less than 40% of people know their neighbours
Fewer than 1 in 3 say they believe in God
Incidence of depression and breakdown has TRIPLED in past 20 years
Average age of “midlife” crisis now down to 30s
Number of people taking part in community activity half what it was 20 years ago

We’re consuming resources as though there are 3 planets, not 1
Sustainability isn’t compatible with consumerism in it’s current form
Source: WWF, One Planet Living 2009

CAN I
YOU?

Source: IPSOS MORI, around 2,000 British adults 15+ asked the question: “…would you tell me whether you generally trust them to tell the truth or not?”

TRUST IN BUSINESS DOWN TO 22% GLOBALLY, A DECREASE OF 25% OVER THE PAST DECADE
Source: Justin Basini analysis of World Values Survey data 1980-2001. Notes: Each wave of global research is completed in those countries from 1000s of interviews with a range of representative demographic segments

?
BUT ARE THESE ISSUES FOR US TO CLEAR UP? WHAT DO WE DO?

Rebuild trust

Macro-social trust
Context-dependent
(context specific) trust
A priori generalised trust
Psychosocial feeling
Auditing
Conceptual trust
Pre-conceptual trust
Social cohesion
Machiavellian strategies
In group solidarity
Co-operation
Local communities
Conceptual trust
Primary (taken for granted) trust
Reflective Trust
Conceptual trust
Third parties
Self-confidence / self-doubt
Emotional interdependence
Rebuild trust
Psychosocial feeling
Basic trust (ontological)
Inner dialogicality
Micro-social trust
Source: Trust and Distrust in Society, Markova, Linell, Gillespie (2008)

We all know what creates trust…now go do it!
A trustsB to do X
Engage & establish credibility
Set the right expectations
Active honesty & respect
Keep your commitments visibly & be consistent
Show you trust

Who’s doing it?
Idea
Why?
Build brands with massive premium
Takes more value out of revenue pool per transaction and generally increases length of ownership and resale value
Design products which last longer
Increases product life cycle, can be afforded by brand premium, helps resale/reuse
Create marketing which builds trust
Trust is social capital in a society, marketing can damage or build that trust e.g. using fear or over-promising

Who’s doing it?
Idea
Why?
Be responsible for insight into all stakeholders not just customers
All stakeholder groups are human – marketing has the competencies to understand all wants and needs
Change systems to surface tensions between different stakeholder groups and train people
The ethical responsibility of managers is to balance the needs of different groups – doing this in practise is hard needs to be in systems and training
Integration of sustainability & CSR with marketing
Todays radical transparency means that companies need to integrate all activities holistically, plus marketing budgets are bigger and therefore can have more impact

Leadership in Marketing:
from shareholder to stakeholder value
Justin Basini
www.basini.comwww.conservation-economy.org
Founder, Basini & Company
Founder & CEO, Allow (www.i-allow.com)
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CMO conference 2010 - Justin Basini

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