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HOW BRANDS & PEOPLE CREATEA VALUE EXCHANGE 
Presented by Edelman 
brandshareTM2014© Daniel J. Edelman, Inc.
A VALUE EXCHANGE STARTS WITH PEOPLE’S NEEDS 
CONSUMER 
NEEDS 
2 
People’s needs have changed 
due to an increasingly complex 
and interconnected world. 
brandshareTM 2014 © Daniel J. Edelman, Inc .
CONSUMER 
NEEDS 
MATCHED BY WAYS BRANDS CAN FULFILL THESE NEEDS 
3 
BRAND 
BEHAVIORS 
Actions brands can take 
to fulfill these new 
consumer needs. 
brandshareTM 2014 © Daniel J. Edelman, Inc .
AND THE DELIVERY OF MUTUAL BENEFIT 
BRAND 
BEHAVIORS 
CONSUMER 
NEEDS 
4 
VALUE 
Quantifiable value exchange EXCHANGE 
based on shared contribution 
and benefit. 
brandshareTM 2014 © Daniel J. Edelman, Inc .
5
WE COMPARED CONSUMER NEEDS… 
6 
I can count on the 
brand to deliver 
consistent products 
or services 
The brand 
delivers what 
I need from a 
product or 
service 
2 
I want to be 
associated with 
the brand 
The brand is an 
essential part of 
my life 
I respect the 
company’s 
leaders 
I feel good about 
this company’s 
commitment to its 
community 
I feel the brand 
cares about 
more than itself 
1 
3 
4 
5 
I feel good buying 
this company’s 
products or services 
6 
7 
I believe in the 
8 brand’s purpose 
9 
brandshareTM 2014 © Daniel J. Edelman, Inc .
TO WAYS BRANDS COULD FULFILL 
THESE NEEDS… 
Shares company history 
and heritage openly 
Openly shares its 
vision for the future 
Is open about company 
performance and holds 
leaders accessible 
Communicates 
transparently about how 
its products are sourced 
and manufactured 
Takes a stand on issues 
of importance to 
individual consumers 
Offers many ways for 
consumers to ask questions 
and share opinions 
Is quick to respond to 
people’s concerns and 
complaints 
Helps people achieve 
their personal goals 
Invites consumers to 
participate in events 
and live experiences 
Invites consumers to 
interact online 
Invites consumers to 
represent products and 
services to their social 
networks 
7 
Acts with a clear mission and 
1 purpose at its core 
2 
3 
4 
5 
6 
Invites consumer participation in 
product development 7 
8 
9 
14 
13 
Uses its resources to drive 
12 change in the world 
11 
10 
brandshareTM 2014 © Daniel J. Edelman, Inc .
AND EVALUATED HOW THEY COMBINE TO DELIVER BUSINESS OUTCOMES 
8 
Purchase 
Recommend 
Defend 
1 
2 
3 
Share Personal Information 
Share Brand Content 
4 
5 
brandshareTM2014© Daniel J. Edelman, Inc.
WE LEARNED THERE IS: 
Little value for the consumer 
in the current value exchange 
Meeting societal needs 
delivers real business value 
Emotional and rational needs 
are merging 
9 
brandshareTM 2014 © Daniel J. Edelman, Inc .
LITTLE VALUE FOR 
THE CONSUMER 
IN THE CURRENT 
VALUE EXCHANGE 
10 
brandshareTM 2014 © Daniel J. Edelman, Inc .
PEOPLE CONTRIBUTE. BRANDS BENEFIT. 
THERE IS LITTLE VALUE EXCHANGE. 
One-sided relationship Shared relationship 
66% 34% 
11 
Q24: Overall, would you say that brands that ask you to share with them (i.e. personal information, 
stories, etc.) successfully share with you in return, or is it more of a one sided relationship? 
Q25: Do you think brands are motivated to share with you because they have a sincere commitment 
to their customers, or because they have a self-centered desire to increase profits? 
Sincere commitment 
to their customers 
Brands have self-centered 
desire to increase profits 
70% 30% 
brandshareTM 2014 © Daniel J. Edelman, Inc .
PEOPLE WANT MORE VALUE FROM 
BRAND RELATIONSHIPS 
Want more meaningful 
relationships with brands 
87% 
17% 
Think brands deliver 
12 
Q9: You will be presented with things that a brand could do to build and maintain a connection with you or 
customers like you. For each one tell us if you feel that the brands that you like are currently doing each of 
these things too much, just right, or not enough? [% who selected JUST RIGHT or NOT ENOUGH] 
Q11: Please select the statements that you feel apply to [BRAND]. You may select as many or as few as you 
feel apply. [Average % who stated sharing statements applied to [BRAND]} 
brandshareTM 2014 © Daniel J. Edelman, Inc .
Q5: You will be presented with things that a brand can do to build and maintain a connection with you or customers like you. Thinking about brands that you like, how important is each of the following to you? [5-Point Scale, Top 2 Box] Q11: Please select the statements that you feel apply to [BRAND]. You may select as many or as few as you feel apply. [Average % who stated sharing statements applied to [BRAND] 
PEOPLE DEMAND GREATER RESPONSIVENESS… 
78% 
17% 
HOW THEY THINK BRANDS PERFORM 
GAP 
-61 
PEOPLE SAY IT IS IMPORTANT 
59% 
18% 
-41 
Gives many ways to ask questions and give opinions 
Respond quickly to people’s concerns and complaints 
GAP 
13 
brandshareTM2014© Daniel J. Edelman, Inc.
Q5: You will be presented with things that a brand can do to build and maintain a connection with you or customers like you. Thinking about brands that you like, how important is each of the following to you? [5-Point Scale, Top 2 Box] Q11: Please select the statements that you feel apply to [BRAND]. You may select as many or as few as you feel apply. [Average % who stated sharing statements applied to [BRAND] 
MORE INVOLVEMENT… 
Invites people to be a part of the development and refinement process 
16% 
52% 
-36 
Communicates openly and transparently about how products are sourced and made 
15% 
68% 
-53 
PEOPLE SAY IT IS IMPORTANT 
GAP 
GAP 
14 
brandshareTM2014© Daniel J. Edelman, Inc. 
HOW THEY THINK BRANDS PERFORM
Q5: You will be presented with things that a brand can do to build and maintain a connection with you or customers like you. Thinking about brands that you like, how important is each of the following to you? [5-Point Scale, Top 2 Box] Q11: Please select the statements that you feel apply to [BRAND]. You may select as many or as few as you feel apply. [Average % who stated sharing statements applied to [BRAND] 
AND REAL CONVICTION FROM BRANDS 
21% 
58% 
-37 
PEOPLE SAY IT IS IMPORTANT 
15% 
-37 
52% 
Uses its resources to drive change in the world 
Has a clear mission and purpose at its core 
GAP 
GAP 
15 
brandshareTM2014© Daniel J. Edelman, Inc. 
HOW THEY THINK BRANDS PERFORM
CONSUMERS ACROSS THE WORLD WANT 
MORE VALUABLE RELATIONSHIPS 
GAP BETWEEN IMPORTANCE AND BRAND PERFORMANCE 
DEVELOPED DEVELOPING 
Respond quickly to people’s concerns and complaints -65 -53 
Communicates openly and transparently about how products are sourced and made -54 -48 
Gives many ways to ask questions and give opinions -39 -45 
Invites people to be a part of the development and refinement process -34 -43 
Has a clear mission and purpose at its core -34 -41 
Uses its resources to drive change in the world -33 -38 
Lets people know the company’s mission and vision for the future -32 -40 
Takes a stand on the issues I care about most -32 -46 
16 
brandshareTM 2014 © Daniel J. Edelman, Inc .
EVERY GENERATION DEMANDS MORE VALUE 
MILLENNIALS GEN X BOOMER 
Respond quickly to people’s concerns and complaints -54 -62 -70 
Communicates openly and transparently about how products are sourced and made -49 -53 -57 
Gives many ways to ask questions and give opinions -39 -42 -41 
Invites people to be a part of the development and refinement process -34 -37 -38 
Has a clear mission and purpose at its core -38 -38 -34 
Uses its resources to drive change in the world -35 -38 -33 
Lets people know the company’s mission and vision for the future -32 -34 -34 
Takes a stand on the issues I care about most -37 -38 -33 
17 
GAP BETWEEN IMPORTANCE AND BRAND PERFORMANCE 
brandshareTM 2014 © Daniel J. Edelman, Inc .
EMOTIONAL AND 
RATIONAL NEEDS 
ARE MERGING 
18 
brandshareTM 2014 © Daniel J. Edelman, Inc .
Rational needs were 
the reason to believe 
MEETING EMOTIONAL 
NEEDS HAS BEEN 
ABOUT HOW BRANDS 
MAKE PEOPLE FEEL 
19 
brandshareTM 2014 © Daniel J. Edelman, Inc .
EMOTIONAL AND RATIONAL NEEDS ARE MERGING 
.15 .2 .25 .3 .35 .4 
RATIONAL EMOTIONAL 
20 
.4 .35 .3 .25 .2 .15 
QUICKLY RESPONDS 
TO PEOPLE’S CONCERNS 
AND COMPLAINTS 
ACTS WITH CLEAR MISSION 
AND PURPOSE AT ITS CORE 
GIVES MANY WAYS 
TO ASK QUESTIONS AND 
GIVE OPINIONS 
MOST IMPACT LEAST IMPACT MOST IMPACT 
brandshareTM 2014 © Daniel J. Edelman, Inc .
SHARE 
BRAND 
CONTENT 
PURCHASE RECOMMEND DEFEND SHARE 
PERSONAL 
INFO 
WILL NOT 
BRAND BEHAVIORS THAT MEET EMOTIONAL 
AND RATIONAL NEEDS DELIVER GREATER PURCHASE, 
DEFENSE AND RECOMMENDATION 
21 
EMOTIONAL + RATIONAL 
EMOTIONAL 
RATIONAL 
DEFINITELY WILL 
4 
5 
6 
7 
8 
9 
10 
3 
2 
1 
+9% +11% 
+5% 
brandshareTM 2014 © Daniel J. Edelman, Inc .
MEETING SOCIETAL NEEDS 
DELIVERS REAL BUSINESS VALUE 
22 
brandshareTM 2014 © Daniel J. Edelman, Inc .
I feel good about this company’s commitment to its community 
23 
I feel the brand cares about things other than itself 
I believe in the brand’s purpose 
FULFILLING SOCIETAL NEEDS DRIVES 
BUSINESS OUTCOMES 
brandshareTM 2014 © Daniel J. Edelman, Inc .
Q5: You will be presented with things that a brand can do to build and maintain a connection with you or 
customers like you. Thinking about brands that you like, how important is it for brands to [communicate 
openly and transparently about how products are sourced and made]? [5-Point Scale, Top 2 Box] 
PEOPLE WANT INCREASED TRANSPARENCY 
2013 
54% 68 
2014 
% 
24 
Percentage of people who feel 
it is important for brands to 
communicate openly and 
transparently about how 
products are sourced and made 
brandshareTM 2014 © Daniel J. Edelman, Inc .
Takes a stand on the issues I care about most 
Uses its resources to drive changein the world 
Invites people to be a part of the developmentand refinement processfor products or services 
Lets people know the company’s mission and visionfor the future 
SOCIETAL NEEDS EXTEND BEYOND TRADITIONAL DEFINITIONS OF CORPORATE RESPONSIBILITY AND SUSTAINABILITY 
25 
TOP FOUR BRAND BEHAVIORS THAT CORRELATE TO CONSUMERS’ SOCIETAL NEEDS 
brandshareTM2014© Daniel J. Edelman, Inc.
MEETING SOCIETAL NEEDS ACTIVATES SHARING 
PERSONAL INFO AND BRAND CONTENT 
SHARE 
BRAND 
CONTENT 
PURCHASE RECOMMEND DEFEND SHARE 
PERSONAL 
INFO 
MOST IMPACT 
NO IMPACT 
26 
SOCIETAL 
0 
.2 
.25 
.3 
.35 
.4 
brandshareTM 2014 © Daniel J. Edelman, Inc .
MEETING PEOPLE’S THREE NEEDS STATES COMPOUNDS 
BENEFIT TO BRANDS 
+ 8% PURCHASE 
+10% DEFEND 
+12% RECOMMEND 
+11% SHARE PERSONAL INFO 
+12% SHARE BRAND CONTENT 
27 
RATIONAL 
EMOTIONAL 
SOCIETAL 
brandshareTM 2014 © Daniel J. Edelman, Inc . 
+ 
+
CREATING A VALUE EXCHANGE 
28 
brandshareTM 2014 © Daniel J. Edelman, Inc .
STORYTELLING & 
STORYSHARING 
RECOGNIZE THAT PARTICIPATION COMES 
IN MANY FORMS 
PROMOTE YOUR BRAND BY INVITING 
PEOPLE TO ACTIVELY PARTICIPATE IN 
WAYS THAT ARE MEANINGFUL TO THEM 
29 
OF RESPONDENTS THINK IT’S 
IMPORTANT TO INVITE PEOPLE 
TO BE A PART OF THE 
PRODUCT/SERVICE DEVELOPMENT 
AND REFINEMENT PROCESS 2% 5 
brandshareTM 2014 © Daniel J. Edelman, Inc .
ALIGN MARKETING AND CORPORATE 
COMMUNICATIONS EFFORTS TO ENSURE YOUR 
STORY IS HEARD AND SHARED 
EVOLVE YOUR BRAND TO INCLUDE BOTH 
BRAND PROMISE AND BRAND PURPOSE 
CONVICTION 
& COMMITMENT 
OF CONSUMERS BELIEVE 
BRANDS MUST HAVE A 
CLEAR REASON OR PURPOSE 80% 
30 
brandshareTM 2014 © Daniel J. Edelman, Inc .
LISTEN, LEARN AND ADAPT BASED 
ON WHAT PEOPLE TELL YOU ABOUT 
THEMSELVES AND YOUR BRAND 
PROTECT YOUR BRAND BY 
INCORPORATING CUSTOMER SERVICE 
INTO YOUR MARKETING STRATEGY 
ALWAYS ON & 
ALWAYS ADAPTING 
OF RESPONDENTS FEEL 
THEY SHOULD BE ABLE 
TO COMMUNICATE AND 
INTERACT WITH BRANDS 
QUICKLY, IN REAL-TIME 87% 
31 
brandshareTM 2014 © Daniel J. Edelman, Inc .
CONSUMER 
ACTIONS 
CONSUMER 
NEEDS 
RECOMMEND 
DEFEND 
PURCHASE 
32 
BRAND 
BEHAVIORS 
RATIONAL 
EMOTIONAL 
MOVING FROM A TRANSACTION-BASED VALUE EQUATION… 
brandshareTM 2014 © Daniel J. Edelman, Inc .
CONSUMER 
ACTIONS 
CONSUMER 
NEEDS 
RECOMMEND 
DEFEND 
PURCHASE 
33 
BRAND 
BEHAVIORS 
RATIONAL 
EMOTIONAL 
SHARE 
PURCHASE 
INFO 
SHARE 
BRAND 
CONTENT 
SOCIETAL 
TO ONE THAT’S DYNAMIC AND MULTIDIMENSIONAL 
brandshareTM 2014 © Daniel J. Edelman, Inc . 
+ 
+
THANK YOU 
Copyright ©2014 Daniel J. Edelman, Inc. All rights reserved. 
All information contained herein is confidential and proprietary to Daniel J. Edelman, inc. (“Edelman”).

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brandshare: how brands & people create value exchange

  • 1. HOW BRANDS & PEOPLE CREATEA VALUE EXCHANGE Presented by Edelman brandshareTM2014© Daniel J. Edelman, Inc.
  • 2. A VALUE EXCHANGE STARTS WITH PEOPLE’S NEEDS CONSUMER NEEDS 2 People’s needs have changed due to an increasingly complex and interconnected world. brandshareTM 2014 © Daniel J. Edelman, Inc .
  • 3. CONSUMER NEEDS MATCHED BY WAYS BRANDS CAN FULFILL THESE NEEDS 3 BRAND BEHAVIORS Actions brands can take to fulfill these new consumer needs. brandshareTM 2014 © Daniel J. Edelman, Inc .
  • 4. AND THE DELIVERY OF MUTUAL BENEFIT BRAND BEHAVIORS CONSUMER NEEDS 4 VALUE Quantifiable value exchange EXCHANGE based on shared contribution and benefit. brandshareTM 2014 © Daniel J. Edelman, Inc .
  • 5. 5
  • 6. WE COMPARED CONSUMER NEEDS… 6 I can count on the brand to deliver consistent products or services The brand delivers what I need from a product or service 2 I want to be associated with the brand The brand is an essential part of my life I respect the company’s leaders I feel good about this company’s commitment to its community I feel the brand cares about more than itself 1 3 4 5 I feel good buying this company’s products or services 6 7 I believe in the 8 brand’s purpose 9 brandshareTM 2014 © Daniel J. Edelman, Inc .
  • 7. TO WAYS BRANDS COULD FULFILL THESE NEEDS… Shares company history and heritage openly Openly shares its vision for the future Is open about company performance and holds leaders accessible Communicates transparently about how its products are sourced and manufactured Takes a stand on issues of importance to individual consumers Offers many ways for consumers to ask questions and share opinions Is quick to respond to people’s concerns and complaints Helps people achieve their personal goals Invites consumers to participate in events and live experiences Invites consumers to interact online Invites consumers to represent products and services to their social networks 7 Acts with a clear mission and 1 purpose at its core 2 3 4 5 6 Invites consumer participation in product development 7 8 9 14 13 Uses its resources to drive 12 change in the world 11 10 brandshareTM 2014 © Daniel J. Edelman, Inc .
  • 8. AND EVALUATED HOW THEY COMBINE TO DELIVER BUSINESS OUTCOMES 8 Purchase Recommend Defend 1 2 3 Share Personal Information Share Brand Content 4 5 brandshareTM2014© Daniel J. Edelman, Inc.
  • 9. WE LEARNED THERE IS: Little value for the consumer in the current value exchange Meeting societal needs delivers real business value Emotional and rational needs are merging 9 brandshareTM 2014 © Daniel J. Edelman, Inc .
  • 10. LITTLE VALUE FOR THE CONSUMER IN THE CURRENT VALUE EXCHANGE 10 brandshareTM 2014 © Daniel J. Edelman, Inc .
  • 11. PEOPLE CONTRIBUTE. BRANDS BENEFIT. THERE IS LITTLE VALUE EXCHANGE. One-sided relationship Shared relationship 66% 34% 11 Q24: Overall, would you say that brands that ask you to share with them (i.e. personal information, stories, etc.) successfully share with you in return, or is it more of a one sided relationship? Q25: Do you think brands are motivated to share with you because they have a sincere commitment to their customers, or because they have a self-centered desire to increase profits? Sincere commitment to their customers Brands have self-centered desire to increase profits 70% 30% brandshareTM 2014 © Daniel J. Edelman, Inc .
  • 12. PEOPLE WANT MORE VALUE FROM BRAND RELATIONSHIPS Want more meaningful relationships with brands 87% 17% Think brands deliver 12 Q9: You will be presented with things that a brand could do to build and maintain a connection with you or customers like you. For each one tell us if you feel that the brands that you like are currently doing each of these things too much, just right, or not enough? [% who selected JUST RIGHT or NOT ENOUGH] Q11: Please select the statements that you feel apply to [BRAND]. You may select as many or as few as you feel apply. [Average % who stated sharing statements applied to [BRAND]} brandshareTM 2014 © Daniel J. Edelman, Inc .
  • 13. Q5: You will be presented with things that a brand can do to build and maintain a connection with you or customers like you. Thinking about brands that you like, how important is each of the following to you? [5-Point Scale, Top 2 Box] Q11: Please select the statements that you feel apply to [BRAND]. You may select as many or as few as you feel apply. [Average % who stated sharing statements applied to [BRAND] PEOPLE DEMAND GREATER RESPONSIVENESS… 78% 17% HOW THEY THINK BRANDS PERFORM GAP -61 PEOPLE SAY IT IS IMPORTANT 59% 18% -41 Gives many ways to ask questions and give opinions Respond quickly to people’s concerns and complaints GAP 13 brandshareTM2014© Daniel J. Edelman, Inc.
  • 14. Q5: You will be presented with things that a brand can do to build and maintain a connection with you or customers like you. Thinking about brands that you like, how important is each of the following to you? [5-Point Scale, Top 2 Box] Q11: Please select the statements that you feel apply to [BRAND]. You may select as many or as few as you feel apply. [Average % who stated sharing statements applied to [BRAND] MORE INVOLVEMENT… Invites people to be a part of the development and refinement process 16% 52% -36 Communicates openly and transparently about how products are sourced and made 15% 68% -53 PEOPLE SAY IT IS IMPORTANT GAP GAP 14 brandshareTM2014© Daniel J. Edelman, Inc. HOW THEY THINK BRANDS PERFORM
  • 15. Q5: You will be presented with things that a brand can do to build and maintain a connection with you or customers like you. Thinking about brands that you like, how important is each of the following to you? [5-Point Scale, Top 2 Box] Q11: Please select the statements that you feel apply to [BRAND]. You may select as many or as few as you feel apply. [Average % who stated sharing statements applied to [BRAND] AND REAL CONVICTION FROM BRANDS 21% 58% -37 PEOPLE SAY IT IS IMPORTANT 15% -37 52% Uses its resources to drive change in the world Has a clear mission and purpose at its core GAP GAP 15 brandshareTM2014© Daniel J. Edelman, Inc. HOW THEY THINK BRANDS PERFORM
  • 16. CONSUMERS ACROSS THE WORLD WANT MORE VALUABLE RELATIONSHIPS GAP BETWEEN IMPORTANCE AND BRAND PERFORMANCE DEVELOPED DEVELOPING Respond quickly to people’s concerns and complaints -65 -53 Communicates openly and transparently about how products are sourced and made -54 -48 Gives many ways to ask questions and give opinions -39 -45 Invites people to be a part of the development and refinement process -34 -43 Has a clear mission and purpose at its core -34 -41 Uses its resources to drive change in the world -33 -38 Lets people know the company’s mission and vision for the future -32 -40 Takes a stand on the issues I care about most -32 -46 16 brandshareTM 2014 © Daniel J. Edelman, Inc .
  • 17. EVERY GENERATION DEMANDS MORE VALUE MILLENNIALS GEN X BOOMER Respond quickly to people’s concerns and complaints -54 -62 -70 Communicates openly and transparently about how products are sourced and made -49 -53 -57 Gives many ways to ask questions and give opinions -39 -42 -41 Invites people to be a part of the development and refinement process -34 -37 -38 Has a clear mission and purpose at its core -38 -38 -34 Uses its resources to drive change in the world -35 -38 -33 Lets people know the company’s mission and vision for the future -32 -34 -34 Takes a stand on the issues I care about most -37 -38 -33 17 GAP BETWEEN IMPORTANCE AND BRAND PERFORMANCE brandshareTM 2014 © Daniel J. Edelman, Inc .
  • 18. EMOTIONAL AND RATIONAL NEEDS ARE MERGING 18 brandshareTM 2014 © Daniel J. Edelman, Inc .
  • 19. Rational needs were the reason to believe MEETING EMOTIONAL NEEDS HAS BEEN ABOUT HOW BRANDS MAKE PEOPLE FEEL 19 brandshareTM 2014 © Daniel J. Edelman, Inc .
  • 20. EMOTIONAL AND RATIONAL NEEDS ARE MERGING .15 .2 .25 .3 .35 .4 RATIONAL EMOTIONAL 20 .4 .35 .3 .25 .2 .15 QUICKLY RESPONDS TO PEOPLE’S CONCERNS AND COMPLAINTS ACTS WITH CLEAR MISSION AND PURPOSE AT ITS CORE GIVES MANY WAYS TO ASK QUESTIONS AND GIVE OPINIONS MOST IMPACT LEAST IMPACT MOST IMPACT brandshareTM 2014 © Daniel J. Edelman, Inc .
  • 21. SHARE BRAND CONTENT PURCHASE RECOMMEND DEFEND SHARE PERSONAL INFO WILL NOT BRAND BEHAVIORS THAT MEET EMOTIONAL AND RATIONAL NEEDS DELIVER GREATER PURCHASE, DEFENSE AND RECOMMENDATION 21 EMOTIONAL + RATIONAL EMOTIONAL RATIONAL DEFINITELY WILL 4 5 6 7 8 9 10 3 2 1 +9% +11% +5% brandshareTM 2014 © Daniel J. Edelman, Inc .
  • 22. MEETING SOCIETAL NEEDS DELIVERS REAL BUSINESS VALUE 22 brandshareTM 2014 © Daniel J. Edelman, Inc .
  • 23. I feel good about this company’s commitment to its community 23 I feel the brand cares about things other than itself I believe in the brand’s purpose FULFILLING SOCIETAL NEEDS DRIVES BUSINESS OUTCOMES brandshareTM 2014 © Daniel J. Edelman, Inc .
  • 24. Q5: You will be presented with things that a brand can do to build and maintain a connection with you or customers like you. Thinking about brands that you like, how important is it for brands to [communicate openly and transparently about how products are sourced and made]? [5-Point Scale, Top 2 Box] PEOPLE WANT INCREASED TRANSPARENCY 2013 54% 68 2014 % 24 Percentage of people who feel it is important for brands to communicate openly and transparently about how products are sourced and made brandshareTM 2014 © Daniel J. Edelman, Inc .
  • 25. Takes a stand on the issues I care about most Uses its resources to drive changein the world Invites people to be a part of the developmentand refinement processfor products or services Lets people know the company’s mission and visionfor the future SOCIETAL NEEDS EXTEND BEYOND TRADITIONAL DEFINITIONS OF CORPORATE RESPONSIBILITY AND SUSTAINABILITY 25 TOP FOUR BRAND BEHAVIORS THAT CORRELATE TO CONSUMERS’ SOCIETAL NEEDS brandshareTM2014© Daniel J. Edelman, Inc.
  • 26. MEETING SOCIETAL NEEDS ACTIVATES SHARING PERSONAL INFO AND BRAND CONTENT SHARE BRAND CONTENT PURCHASE RECOMMEND DEFEND SHARE PERSONAL INFO MOST IMPACT NO IMPACT 26 SOCIETAL 0 .2 .25 .3 .35 .4 brandshareTM 2014 © Daniel J. Edelman, Inc .
  • 27. MEETING PEOPLE’S THREE NEEDS STATES COMPOUNDS BENEFIT TO BRANDS + 8% PURCHASE +10% DEFEND +12% RECOMMEND +11% SHARE PERSONAL INFO +12% SHARE BRAND CONTENT 27 RATIONAL EMOTIONAL SOCIETAL brandshareTM 2014 © Daniel J. Edelman, Inc . + +
  • 28. CREATING A VALUE EXCHANGE 28 brandshareTM 2014 © Daniel J. Edelman, Inc .
  • 29. STORYTELLING & STORYSHARING RECOGNIZE THAT PARTICIPATION COMES IN MANY FORMS PROMOTE YOUR BRAND BY INVITING PEOPLE TO ACTIVELY PARTICIPATE IN WAYS THAT ARE MEANINGFUL TO THEM 29 OF RESPONDENTS THINK IT’S IMPORTANT TO INVITE PEOPLE TO BE A PART OF THE PRODUCT/SERVICE DEVELOPMENT AND REFINEMENT PROCESS 2% 5 brandshareTM 2014 © Daniel J. Edelman, Inc .
  • 30. ALIGN MARKETING AND CORPORATE COMMUNICATIONS EFFORTS TO ENSURE YOUR STORY IS HEARD AND SHARED EVOLVE YOUR BRAND TO INCLUDE BOTH BRAND PROMISE AND BRAND PURPOSE CONVICTION & COMMITMENT OF CONSUMERS BELIEVE BRANDS MUST HAVE A CLEAR REASON OR PURPOSE 80% 30 brandshareTM 2014 © Daniel J. Edelman, Inc .
  • 31. LISTEN, LEARN AND ADAPT BASED ON WHAT PEOPLE TELL YOU ABOUT THEMSELVES AND YOUR BRAND PROTECT YOUR BRAND BY INCORPORATING CUSTOMER SERVICE INTO YOUR MARKETING STRATEGY ALWAYS ON & ALWAYS ADAPTING OF RESPONDENTS FEEL THEY SHOULD BE ABLE TO COMMUNICATE AND INTERACT WITH BRANDS QUICKLY, IN REAL-TIME 87% 31 brandshareTM 2014 © Daniel J. Edelman, Inc .
  • 32. CONSUMER ACTIONS CONSUMER NEEDS RECOMMEND DEFEND PURCHASE 32 BRAND BEHAVIORS RATIONAL EMOTIONAL MOVING FROM A TRANSACTION-BASED VALUE EQUATION… brandshareTM 2014 © Daniel J. Edelman, Inc .
  • 33. CONSUMER ACTIONS CONSUMER NEEDS RECOMMEND DEFEND PURCHASE 33 BRAND BEHAVIORS RATIONAL EMOTIONAL SHARE PURCHASE INFO SHARE BRAND CONTENT SOCIETAL TO ONE THAT’S DYNAMIC AND MULTIDIMENSIONAL brandshareTM 2014 © Daniel J. Edelman, Inc . + +
  • 34. THANK YOU Copyright ©2014 Daniel J. Edelman, Inc. All rights reserved. All information contained herein is confidential and proprietary to Daniel J. Edelman, inc. (“Edelman”).