Archive for the ‘Sustainability’ Category
Greenwashing is just the tip of the marketing iceberg
Greenwashing is a regrettable practice across the business world today. And I applaud initiatives such as the Greenwashing Index to prevent the practice from spreading.
I’m concerned, however, that greenwashing may be distracting marketing executives and educators from an even more distressing matter: The vast number of companies, large and small, that even today don’t give lip service to green or sustainable products or practices. They don’t pretend to be sustainable, don’t promise to become sustainable, don’t understand what it means to be sustainable and, frankly, don’t appear to care.
The marketing and advertising of these companies remain what they’ve always been: attempts to promote and sell products and services, without a hint of green gloss. They stress the usual customer benefits: greater value, quality, innovation, convenience, luxury, responsiveness, ROI and the like. But they make no claims to be more earth-friendly, socially responsible or otherwise green or sustainable. These businesses continue to do what they’ve always done, with no obvious regard or accountability for the environmental or social impact of their actions now or across future generations, except perhaps as required by law, rule or regulation.
I don’t know what percentage of businesses are making concerted efforts to become far more sustainable. I’d wager it’s a small minority. One reason the media features companies that embrace sustainability is they are the exceptions. If every company was going green, there would be no story. And one reason businesses tout the “greenness” of their products or practices (sometimes resorting to greenwashing) is they see a competitive or “first mover” advantage. Again, if all companies produced sustainable goods or services, that advantage disappears.
The point is too few businesses are serious about sustainability today. And that should have brand managers, PR counselors, ad execs, social media mavens and all other marketers up in arms.
I don’t want to minimize the seriousness of greenwashing — no company should be allowed an advantage through false or deceptive marketing. But who should worry us more:
- The few unethical companies (and their marketers) trying to pull the green wool over our eyes? Or…
- The many businesses making truthful, “non-green” claims that contribute to excessive or inequitable consumption and their inevitable byproducts: natural resource depletion, ecological damage, climate change, poverty?
Marketers committed to sustainability have a perfect opportunity in this worsening recession to drive home a critical point among their not-so-green peers: It’s time to examine the very role of marketers in fueling unsustainable economies and ways of living. Or stated more positively, how marketers can get on the right side of sustainability.
Ridding the world of greenwashing would be welcomed progress. Harnessing the creative and persuasive talents of every marketer on behalf of a sustainable world would be nothing short of awesome.
Tags: advertising, brand managers, greenwashing, greenwashing index, marketers, PR, Sustainability, sustainable
Posted in Business & Economics, Climate Change, Communications, Consumerism, Marketing, Sustainability | No Comments »
The crisis of identity in business
An owner of a popular gourmet restaurant in Portland, Ore., recently told the local daily, “This year is about survival. Not making money, just surviving.” I suspect that sentiment is shared by vast numbers of owners and executives of businesses large and small right now. GM and Chrysler, anyone?
What began as a financial system meltdown is now a full-blown economic crisis that is worsening by the day. For those businesses able to survive this period, there may be a new crisis looming. I’ll call it the identity crisis.
We feel this individually when we’re suffering confusion about who we are, why we exist, what our role or purpose in life is. Psychologist Erik Erikson, who is said to have coined the term, observed that adolescents were especially prone to an identity crisis. Others speak of it as a condition anyone may confront in a period of great change.
Businesses are not immune to this experience, especially when revenues drop precipitously or leadership loses its focus or exuberance. They may not call it an identity crisis, but the existential questions are the same we ask as individuals: What is our role? Who do we serve? What do they need? What do we offer that matters? How are we different? Why should anyone care?
If companies aren’t dealing with doubts like these today, they probably will be soon. Why? Well, look no farther than the headlines that assault us by the hour. Massive bank bailouts and economic stimulus packages, layoffs by the tens of thousands, huge budget shortfalls in state and local governments, warnings of escalating climate change — and widespread perception that things will only get worse.
No one knows what lies ahead. But one thing seems certain. There will be no going back to the way things were. The days of easy credit, unrestrained consumer spending, unregulated markets, cheap non-renewable energy — the basis for our economic “success” and environmental mess — are behind us. The sooner businesspeople accept that, the sooner we can begin the soul-searching work of determining our reasons for being in today’s new world.
According to one reporter, “Researchers have found that those (individuals) who have made a strong commitment to an identity tend to be happier and healthier than those who have not.”
I believe the same applies to businesses. Firms whose success rests on the old order of things — and that means most of us — strike me as most vulnerable to a crisis of identity. Happier prospects await those who create and commit to a mission and organizational identity consistent with the financial and environmental realities that will be with us for years to come.
In my work helping organizations bridge their mission into their brand identity, I see the benefits of clarity, focus and meaning this effort brings.
If you’re among those struggling with the purpose of your firm’s existence, here are two questions worth considering:
How can we become part of the solution to this economic and environmental crisis? The world and its inhabitants need all the help they can get. For too long, industry has let government, social service, environmental or faith-based organizations solve social and ecological problems. There is an opportunity, not just a responsibility, for businesses to answer the call. Identify how your firm can make a difference, choose a path and watch your whole organization come alive!
What are our customers’ essential needs and how can we satisfy them? One reason we’re in this mess is business has fixated on stoking customer desires more than on satisfying fundamental needs. The result has been consumption and waste of a planet’s worth of stuff, with too little human happiness and too much economic disparity and ecological damage to show for it. As the economy tanks, businesses and individuals are getting back to basics.
If you’re wondering what constitutes basic human needs, Chilean economist Manfred Max-Neef identifies nine: subsistence, protection, affection, understanding, participation, leisure, creation, identity and freedom. Seems like a great starting point for giving your business renewed purpose and relevance in the months and years to come.
Tags: brand, brand identity, business identity, customer needs, identity crisis, Max-Neef, mission
Posted in Business & Economics, Climate Change, Communications, Consumerism, Current Affairs, Marketing, Sustainability | No Comments »
No recession in obsessive branding
Journalist Lucas Conley wrote his book, “OBD: Obsessive Branding Disorder,” just before 2008’s financial and economic meltdowns. You would expect branding excess in an economic bubble. But what about in a near depression? If anything, Conley told me in an email exchange last month, the condition he calls OBD is likely to get worse.
“As for OBD in the current economy, I can condense my general observations down to a couple points: consumers are buying less and thinking more. The result of both is that brands are trying harder (either via marketing, discounts, redesigned packaging, etc.) to capture our attention, often driving greater desperation and obsessive branding. Why? When consumers buy less (cutting back on staples and skipping status buys) it means brands have to fight even more for a smaller piece of the pie. When consumers think more (Do I really need this salon shampoo? Isn’t the generic ibuprofen more or less the same as the pricier brand?), they tend to dispel brand myths and discover deals. And any time consumers do more thinking, brands have to fight harder to shortcut their logic with emotional appeals (faster and deeper than logic) or overwhelm them with more marketing, new packaging, etc.”
If Conley proves to be right, and I think he will, the extreme efforts of brands to occupy every nook and cranny of our lives will grow even more frantic and insidious in this rotten economy. And we’re not only talking about consumer products companies. Product and service companies of all stripes are running scared. They could resort to most anything to get customer attention.
Not that any of us would be so guilty, right? Conley says the marketers he interviewed for his book agreed obsessive branding was a widespread problem–it just didn’t apply to them. In other words, they know OBD when they see it; they just don’t see it in themselves.
How about those of us trying to operate our businesses and live our lives more sustainably? Are we better equipped to draw the line when it comes to marketing approaches that offer only the illusion of something innovative, better, unique? Or that deceive customers into believing we offer something they truly need, not just desire?
In this economy, devoted “greenies” in business are not exempt from diminishing prospects. Companies that in good times preach transparency and authenticity in their business practices may be challenged to maintain that commitment as sales rapidly disappear. Numerous incidences of greenwashing in recent years indicate even so-called advocates for sustainability are not above sleight-of-hand branding tactics.
Obsessive branding, Conley argues, distracts companies from what they ought to be doing–innovating. “Real change results from innovation that advances knowledge and improves quality of lives,” he writes. “Branding offers the satisfaction of a sense of change without the hard work.”
There are no shortcuts in the honest pursuit of sustainability. But businesses trying to be more sustainable will also become more innovative. And that will be their ultimate competitive edge.
Want to stand out in this dismal marketplace? Stick to the principles of sustainability. Lead with innovation. And when it comes to your brand, seek the middle ground between neglect and obsession.
P.S. A special note of thanks to McClenahan Bruer Communications, my previous agency, for hosting and introducing me to Lucas Conley last fall.
Tags: brands, consumer products, greenwashing, inovation, Lucas Conley, marketers, OBD, Obsessive Branding Disorder, Sustainability
Posted in Books, Business & Economics, Communications, Consumerism, Marketing, Sustainability | 3 Comments »
Sustainable Industries offers up 9 trends in 2009
Sustainable Industries magazine has just issued its top 9 trends for 2009. They are not posted online, so I’ll summarize them here. (If you’re not a subscriber yet, consider becoming one.)
- Smart grid takes off: “Though the term ‘smart grid’ is somewhat fluid and encompasses a range of technologies—from so-called smart meters to home area networks—analysts and industry insiders seem to agree the time is at hand for many such technologies to be widely implemented.”
- Year of the carbon market: “At a time when U.S. unemployment rates are reaching levels not seen in decades, the carbon market is likely to go on a hiring blitz in 2009.”
- Green building sets the code: “While 2007 and 2008 proved big years for the widespread adoption of building standards by major cities—including Los Angeles, Boston and Seattle—the coming year is expected to bring even more.”
- Banks for the new economy: “With the collapse of giant financial institutions in the third quarter of 2008, some industry experts are predicting a bigger push toward a community-based model of banking and investing in 2009.”
- Green jobs hiring blitz: “The West Coast, with its state renewable portfolio standards, the California Solar Initiative, massive wind power plants and strong venture capital presence, is well-positioned to lead the growth of the green-collar job sector.”
- Tapping into water conservation: “While some companies are already viewing water as the next oil—and are starting to prepare s if the world is approaching ‘peak water’—2009 will bring a new wave of water conservation efforts among U.S. organizations.”
- Get on the bus: “Simply put, Americans think life is better when they have the option not to drive.”
- Solar’s future luster: “Despite what could be a rough 2009—or at least a rough first quarter of 2009—analysts remain optimistic about the (solar) industry’s long-term future following the ITC extension and a new administration stepping in to Washington, D.C.”
- ‘Go green’ goes down: “(B)ecause the media and its consumers have matured a bit in relation to what they view as truly ‘green,’ companies need to stretch much further to garner attention for their environmental initiatives.”
Overall, the trend report suggests an economy that will continue to transform itself in the face of a deep recession. Progress may slow some next year, but sustainability is no passing fad.
Tags: go green, green jobs, peak water, smart grid, sustainability trends, Sustainable Industries
Posted in Business & Economics, Marketing, Sustainability | No Comments »
Marketers look over their shoulders as recession hits
So we’re officially in a recession. That explains those paranoid marketers looking nervously over their shoulders. They know what’s coming.
Most businesses treat marketing as a discretionary expense, making it an easy target for budget cutters. It’s as if marketing is a luxury afforded only when times are flush. Less customer demand, less we can afford marketing, or so conventional thinking goes.
But really, can we ever afford not to market?
It’s natural to want to preserve cash during a downturn. I was an employer for nearly 14 years, so I’m sympathetic. But the tendency is to make deep cuts in marketing when sales head south. Companies often start by reducing or eliminating outside expenses, such as advertising, events, sponsorships, research. And when that’s not enough, they lay off marketing employees, sometimes the entire department.
The net effect of gutting marketing is to stifle generation of customer awareness, demand and retention just when these things are needed most. It’s a penny-wise, pound-foolish decision.
Management guru Peter Drucker contended, “There is only one valid definition of business purpose: to create a customer…Because its purpose is to create a customer, the business enterprise has two-and only these two-basic functions: marketing and innovation.”
Drucker believed “true marketing” starts with customers, including their demographics, realities, needs, values. “It does not ask, What do we want to sell,” Drucker writes. “It asks, What does the customer want to buy? It does not say, This is what our product or service does. It says, These are the satisfactions the customer looks for, values, and needs.”
Notice, he doesn’t equate marketing with branding, advertising and promotion, as it has come to be broadly perceived and practiced today. Above all else, the marketing function is about engaging, understanding and pleasing our customers. It involves deep listening to customer needs and then helping the business respond with innovative products and solutions that satisfy those needs better than the competition. A recession might curtail how much you spend on marketing, but the function remains essential under all economic conditions.
If you’re contemplating cuts to your marketing program, ask yourself this: Do I truly understand my customers, their needs, their values? And is my company converting that understanding into innovative products and services that my customers value over other choices in the marketplace?
If the answer is no on both accounts, then it’s time to restructure and refocus your marketing efforts so they perform their function. Sure, you may need to trim spending here and there in marketing. Taking an ax to it, however, is your worst move. You’ll only sever connections with customers when you can least afford to lose touch.
If you answer yes to the questions, pat yourself on the back. Your marketing is doing its job. So why mess with what’s working? Find ways to preserve the people and the processes you use to market. They are more valuable than ever as the recession tightens its grip and each customer becomes more precious.
Devotion to sustainability as a company doesn’t exempt you from the fundamental need to market in bad times as well as good. In fact, there’s never been a better time to distinguish your company from the competition and prove your relevance to customers. You’re part of the solution to what ails us. Time to let the world know!
Tags: advertising, layoffs, Marketing, Peter Drucker, recession, Sustainability
Posted in Business & Economics, Current Affairs, Marketing, Sustainability | No Comments »
No sympathy here as auto woes hurt Big Advertising
I just learned Detroit’s Big Three automakers account for six percent of the revenues of the world’s four largest advertising holding companies. Meaning, if the automakers go down, it will be a painful blow to the firms most responsible for promoting their products. Hmm, let me see if I can work up some sympathy here. Sorry, no can do.
These are the very same agencies that consumed countless barrels of creative fuel bringing us the dream of owning Hummers, Escalades, Expeditions, Yukons, Navigators, Suburbans, Tahoes and other gas-guzzling, climate-killing hogs. I wonder who came up with that delightfully clever idea two years ago by GM to hand out 42 million toy Hummers in McDonald’s Happy Meals and Mighty Kids Meals. Once the kids get their meals, the parents will reach for the toy, and voila, next thing you know they’re with their kids in the Hummer showroom.
The major holding companies — Interpublic, Omnicom, Publicis, WPP — all count a Detroit automaker at or near the top of their list of largest clients. They’ve happily allied with an American industry that Fortune magazine wrote last year has been “getting a free pass on fuel economy for more than two decades. Instead of devoting its considerable technical resources to improving gas mileage, it has been cranking up the horsepower of its engines and selling modified trucks as SUVs.”
And now the Big Three automakers are cranking up the pressure on Congress to bail them out, while the Big Four ad conglomerates hold their collective breath. Detroit automakers are the poster children for environmentally and, now, economically and socially destructive behavior. While the atmosphere warmed, vehicles got bigger. While fuel prices rose, sales of big autos tanked. And while sales disappeared, so did the hopes of local communities whose economies are devastated by auto plant closures.
I’ve seen little evidence any of this has dented the conscience of the world’s leading ad executives. No doubt they’ve been too busy counting profits from their share of the billions Detroit has spent on advertising, including $4.6 billion in measured spending in 2007 alone.
The day of reckoning is now here for big advertising, just as it has been for their auto clients and their clients’ employees and communities. Good folks in advertising, PR and marketing are losing their jobs. My wish is they now find work supporting companies and industries that actually care about our planet’s future.
Tags: advertising, automakers, holding companies, SUV
Posted in Business & Economics, Climate Change, Communications, Current Affairs, Marketing, Sustainability | No Comments »