Why have a Brand With Purpose?
Consumers and marketers have conflicting ideas about brand purpose: They disagree on where brands should concentrate their efforts, and on which people are most receptive. As reported on a new research from the World Federation of Advertisers.
Only 40% of marketers thought that listening to and acting on customer needs was important to brand purpose, but in a parallel study by PR Agency Edelman, consumers chose “Listens to customer needs and feedback” as the number one attribute that builds brand trust.
The traditional function of brand positioning has come to a standstill. In other words, it is more rewarding to find your brand purpose and promote it, rather that promoting a competitive edge. One of the Key speakers at the IMC Conference, Jonty Fisher explains why.
“Having a clear and well established purpose for your business will help create much more relevance with consumers by focusing on what is a brand’s real motivation: What is the WHY underneath the HOW and WHAT that you do, hence seamlessly connect with the consumers on a belief and purpose level; as opposed to something that is purely based on a functional benefit that might not necessarily move them emotively. As we know consumer make decisions based on emotive benefits and post rationalize decisions based on the functional benefits that the brand holds. In summary, your functional benefits are your permission to play but your emotive or purpose is your way to win in modern market.”
This is the way forward from the standstill in modern market that will enable marketers to reach their intended consumers. This is what Stance Branding Agency thrives to provide all its clients on a daily basis.
What is Purpose?
Purpose is the deepest expression of a brand, drawing on its essence to determine its path in the world. It captures the relationship between corporation and community, touching on the financial, social, and environmental arenas. Today, people think of companies as corporate citizens. They expect companies to put their skills and resources to work for the common good, and they’re ready to reward those that do.
In China, 80% of consumers say they are willing to pay a premium for a product that supports good causes, compared with just 28% in the U.K. and 39% in the U.S. In India, it’s 71%, while 55% of Brazilians and Malaysians are prepared to pay more.
What is Brand Purpose?
Brand purpose is a natural outgrowth of the values embedded in your corporate culture. Call it corporate citizenship or corporate social responsibility; companies that have integrated this approach into their business strategy are seeing the profound benefits of taking an active role in changing the world. Social good and business good are deeply entwined in today’s corporate model.
The WFA surveyed 828 brand marketers from 33 countries, representing more than 400 companies and together accounting for $170 billion in global marketing spend, via email. The Edelman consumer study, which surveyed 8,000 consumers in 16 markets, makes it clear that brand purpose in 2014 is more about customer relationship management than corporate social responsibility.
Mr Loerke added, “It becomes clear that purpose isn’t necessarily about saving the planet. It doesn’t have to be worthy per se; it can be about taking small and meaningful actions.”
Marketers may be convinced that having purpose is crucial: 88% agreed that it is increasingly important to building brands. That is why huge companies are changing their marketing strategies with marketing campaigns to ensure they have a meaningful brand that appeals to the public in an deeper, emotional level. Showing that they are part of consumers’ lives and not just pushing for their products and services blindly, because the consumers are the market kings thus dictating the markets share.
What drives your Brand?
Purpose driven branding, while not new, has taken on new significance in this era of anxious consumers; not to mention anxious employees. A company that looks at its brand and asks not simply what promise does it make, but what purpose does it serve, to its customers and its shareholders, and brings this purpose to life through every customer experience will be the company most likely to beat its competition.
The consumers have spoken, and if any marketer wants not only to remain in the modern market but also remain relevant and profitable; they have to embrace this ideology. That’s why here at STANCE we help you answer the question “What value do I provide?” in a positive way, hence at the end of the day both your brand and your audience benefit.
“In this ever-changing society, the most powerful and enduring brands are built from the heart. They are real and sustainable. Their foundations are stronger because they are built with the strength of the human spirit, not an ad campaign. The companies that are lasting are those that are authentic.” ― Howard Schultz