Posts Tagged ‘Sustainability’

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!

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Will business pick up the signals?

What a different world we awoke to on November 5. For most of us voters, the future looks a little more hopeful, less divisive. For the rest, well, let’s just say not everyone was feeling the love we Obama supporters were feeling.

I’m not certain what this staggering political act by the American electorate means for those of us in business. But I do think voters sent some strong signals our way.

I keep returning to what Rob Walker, author of the recently published book Buying In, calls the “fundamental tension” of modern life: “We all want to feel like individuals. We all want to feel like we are part of something bigger than ourselves.”

Obama personifies this tension. Many see in his achievement the hope and possibility that any individual anywhere can achieve his or her dreams, no matter the odds. Others are drawn to his larger calling to fulfill America’s promise of a perfect union.

Thomas Friedman quotes Harvard University political philosopher Michael Sandel in his New York Times column about Obama’s victory: “Obama’s campaign tapped a dormant civic idealism, a hunger among Americans to serve a cause greater than themselves, a yearning to be citizens again.”

Sandel and Friedman weren’t addressing business directly, but I can’t think of a greater insight for business to take from this election.

With few exceptions, businesses have catered exclusively to our desire to feel like individuals. Our products and our marketing have appealed overwhelmingly to the fulfillment of personal needs and wants through consumption. And because it was good for business, we managed to elevate the role of Americans as consumers above all others, including citizens.

If Sandel is right, Americans want more. Not more stuff; more opportunity to make the world a better place and more leaders who inspire the greatness in all of us. Businesses must recognize the pendulum is swinging away from the all-consuming, me-first excesses of the past quarter century. Those that respect and engage customers and other stakeholders as whole human beings — ready to “serve a cause greater than themselves” — will lead the way in our brave new world.

One great cause is sustainability. Like civil rights, the sustainability movement is a struggle for the ages. From where we stand today, the challenge of preventing catastrophic climate change, healing our natural systems and creating more equitable economies appears as a mountain summit beyond reach. Will the climb be worth the effort? What do you think the civil rights warriors who can now stop dreaming of an African-American president would say?

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What we still control in these uncertain times

Last night I offered the opening thoughts for a discussion group around sustainability. I took my inspiration from Al Gore, whom I heard speak last week at a political fundraiser in Portland. Gore asked the rhetorical question: This feels like the end of an era and the beginning of a new one, doesn’t it? The audience collectively nodded and murmured yes, yes, it does. It does feel like we’re in the midst of a very dramatic shift right now and are entering unchartered territory. Gore said what we were all thinking.

This helps explains why I’ve been feeling so much uncertainty lately, something I’m sure I share with many millions of others across our country and globe. Endings and beginnings are inevitably messy and halting. And this historic period we’re living through now is bound to be all of that and more. I told my fellow discussion group members that on a walk this weekend, I asked a therapist (my wife) what she would say to a client who’s struggling with uncertainty. She replied, without hesitating, “I would ask them what it is in their life they think they can control.”

Great question. I decided to answer it for myself. The exercise was eye-opening. Even as the economy threatens to collapse and news on climate change grows more ominous by the day, I found within a few minutes of pondering this therapist’s question there was much that remains within my control. Here’s what I jotted down:

my responses

my beliefs

my vision for the future

my stories

my awareness

my actions and behaviors

my intentions

my goals

my hopes

my creativity

my determination

my purchases

I could have kept adding to the list, but the point was made. Yes, we live in a time of great uncertainty and there’s so much outside of our control. More importantly, there’s still so much within our control. This is as true for businesses as it is for individuals. Now is an important moment for those who own, lead or manage businesses to ask what they still control and can accomplish even as customer spending slows and markets and economies contract. It’s easy to move into reaction mode, letting uncontrollable external forces dictate your every action and keep you working in fear of what lies ahead: loss of business income, potential layoffs, maybe even business closure.

Operating from a commitment to sustainability, I believe, provides the anchor in this perfect storm. It keeps our minds, decisions and actions rooted in care for what really matters: the health and welfare of the planet, our employees, customers, communities and other stakeholders. Sustainability is not a line item to be cut when times are tough. It’s a belief in how to conduct business. It’s also a response, vision, awareness, intention, goal, hope and set of actions. All of these things are within our control as businesses. And that’s something we can all hold onto as our world heaves and sighs into a new era.

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Rethinking sustainability in a world of ‘murketing’

Several months have passed since Rob Walker’s book, “Buying In,” hit bookstores. Having now read it, I suggest you get your hands on a copy. I recommend it specifically to marketers or anyone else trying to make sense of where marketing is headed and what the consumption behaviors of today’s Americans are telling us.

If you’re looking for wisdom on sustainability, this book may do more to discourage than enlighten. But I believe Walker has given us plenty to ponder when it comes to sustainability, even though it’s not a central topic in his book.

Walker, author of the “Consumed” column in the New York Times Magazine, attempts to decode what he calls “the secret dialogue between what we buy and who we are.” The publisher accurately describes the book as “Part marketing primer, part work of cultural anthropology.” Walker makes a convincing argument, backed by strong reporting and research, that Americans—far from being immune to marketing, as most of us think of ourselves—are in fact “embracing brands more than ever before.” And marketing, while certainly not alone in explaining our enthrall with brands, is doing more than ever to encourage it. Walker writes:

The modern relationship between consumer and consumed—what I’m calling murketing—is defined not by rejection (of commercial persuasion) at all, but rather by frank complicity.

Walker’s term “murketing” blends murky and marketing to describe the blurring of lines between branding channels and everyday life. Marketers, usually referred to by Walker as “commercial persuaders,” are using increasingly sophisticated and unconventional tactics to brand products and companies. Indeed, there seems to be no limits anymore to where and how we might be delivered a commercial message, as Walker illustrates in his explanation of the word of mouth tactics used by new breed marketing agencies such as BzzAgent.

But Walker doesn’t paint a picture of Americans as innocent victims of shameless commercial persuaders. On the contrary, he uncovers numerous examples to show we are often the ones providing a brand with meaning, sometimes far different from the one intended by its owner. And once we endow a brand with meaning that works for us, we become its biggest champions. Walker’s stories of how a factory worker boot made by Timberland became part of the “global hip-hop uniform” is just one of many great examples.

Today’s youth, the most commercially exposed generation ever, may be more aware than any other group when they’re being pitched. But Walker says they are also “most amenable to using brand to fashion meaning for themselves, to announce who they are and what they stand for.” Brands are just a form of useful raw material for expressing identity and creativity. Perhaps because of the ubiquity and familiarity of our commercial culture, Americans return to it over and over to resolve what Walker calls “the fundamental tension of modern life”—how to reconcile our desire to feel like individuals while also feeling part of something bigger than ourselves.

If youth are indeed “a proxy for the future,” Walker’s findings don’t offer much hope that we’ll see a mass movement toward a less materialistic society anytime soon. He describes a cloudy, cluttered marketplace that “makes it dizzingly difficult to walk your talk” when it comes to simplifying life or buying with environmental and ethical considerations always in mind. And perhaps more significantly, commercial objects are what so many Americans use to project the meaning of our lives, according to Walker. “Meaning and value are things we give to symbols, not things we get from them,” Walker writes.

From a sustainability standpoint, what does it mean that material, branded objects are becoming more, not less, important in the collective lives of Americans? I think it asks for a fundamental change in strategy in how we confront consumerism. Attempts to educate everyone to consume less or differently have had marginal success. And that’s unlikely to change if, as Walker argues, Americans use the commercial marketplace to set ourselves apart from the crowd and to participate in something bigger. We must recognize how difficult it will be in the near-term to supplant this central role of commercial goods in our lives, especially when marketers are hell-bent on keeping consumption our top priority.

So if demand for material goods is unlikely to slacken, maybe we need to make the goods themselves our primary focus. If producers make and sell only sustainable products, customers won’t have to think twice about how a product is made. Sustainability will be embedded. That places the onus on manufacturers and those who market their products to take responsibility for the environmental and social impact of what they sell.

I don’t want to let individuals off the hook for what and how much we consume. But pleas to consume less will keep falling on deaf ears as long as the things we buy are how we tell ourselves we matter. Maybe the key to sustainability is how we confront meaning, not consumption.

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Post-Katrina: Putting the human back in marketing

As I get ready for my summer vacation in the Northwest, my thoughts are in the South, specifically New Orleans and the Gulf Coast. That area is about to mark the third anniversary of Hurricane Katrina. No doubt residents fortunate enough to have homes and jobs and politicians and government officials charged with the region’s recovery will cite the many signs of progress. Others, with equal claim, will point to the vast stretches that have yet to recover, looking virtually as they did when the floodwaters receded.

My reflection is of a different sort. I only experienced the storm and its catastrophic aftermath through the media. A year after Katrina hit, I traveled along the Gulf Coast and into New Orleans. I needed to see with my own eyes what had happened. I returned to New Orleans a few months later as part of a volunteer crew that gutted and cleaned homes for a week. Needless to say, what I saw with my own eyes has left a lasting impression.

I realize now that Katrina is as responsible as anything for the shift I made in my work. I had spent 20 years in high tech marketing and was running the PR and advertising agency I co-founded in 1993 when all hell broke loose in New Orleans and the Gulf Coast. The storm and a tragically flawed response at all levels of government laid bare for the entire world to see the outrageous inequities and injustices that remain in our land of the free and home of the brave.

By coincidence, I departed my previous business and the high tech industry a year after Katrina hit. I had decided I needed to shift what I knew how to do — branding, marketing, communications — in support of businesses and organizations whose values and actions are making the world a better place. When I formed a new firm to work at the crossroads of sustainability and marketing, I wasn’t seeing sustainability through the single lens of saving the environment. As much as we humans have disregarded and damaged our natural world, we have caused no less harm to each other. Katrina was simply the most recent evidence.

Efforts to create a sustainable future must treat the Earth and all of its inhabitants as one. Sustainability isn’t saving the old growth in the Pacific Northwest forests and ignoring the rights of all humans to have their basic needs met and to live in peace. By this standard, green marketing falls short. Its preoccupation with promoting eco-friendly products is often little more than dressing up unsustainable consumption in a different color. Even more significantly, green marketing doesn’t go far enough to address the broader human and social dimensions of sustainability. If you’re a retailer touting your green product lines while paying employees low wages and no benefits, you fail the sustainability test.

Management guru Peter Drucker said the function of marketing is to create and keep a customer. In this post-Katrina world, maybe it’s worth remembering that customers are humans first. Forget that, and one day marketers will have no customers to keep.

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Why marketing dashboards don’t measure up

I get invitations to attend workshops all the time. Usually, I gloss over them. But I stopped on one the other day called “Marketing Metrics and Dashboards 2.0.” Not exactly a topic I’ve been dying to learn about. But it got me thinking: There must be a business opportunity for someone willing and able to show how best to integrate “triple bottom line” metrics into marketing.

Marketing dashboards have come into vogue in recent years, although they are not in broad use because they are complex and expensive to create and maintain. They seem to have found a niche primarily among large companies whose marketing departments are under scrutiny by CEOs and CFOs to demonstrate their expenditures are adding to the bottom line — the profit bottom line, that is. The marketing firm that is leading the workshop focuses on helping its clients “determine the financial return from marketing investments.” Their tagline is: “Measure What You Should, Not Just What You Can.” 

That begs the question: What “should” marketers be measuring? In recent years, marketers have been under increasing pressure to prove a positive financial impact from their programs. Dashboards are touted as one mechanism for doing so. I’m all for marketing carrying its weight financially. I also believe the possibilities, if not the responsibilities, of marketing go well beyond its impact on sales and profits. 

Companies committed to sustainable business practices recognize their success can’t be achieved simply by maximizing profits. They understand that profits gained at the expense of the environment or stakeholders, such as employees, suppliers and communities, are to be avoided and indeed are not a measurement of success at all. The triple-bottom-line approach of balancing profits with people and planet acts as a check on ill-gotten financial returns.

Which brings us back to marketing measurements. I would expect companies professing a commitment to the environment and the fair treatment of all stakeholders would also ensure this commitment is reflected in how they conduct and evaluate marketing. If marketing is held to a standard of financial ROI only — even as difficult as that is to measure — there will be no incentive for marketers to sweat the social and environmental impacts (positive or negative) of their work.

Marketers can perform a vital sustainability function by understanding, monitoring and influencing how their employers or clients create and manage their supply chains, conduct fair trade practices, manufacture their products, dispose of their waste, deliver their services and encourage recycling and reuse. This should be what it means to take responsibility for what you’re marketing.

Companies fixated on the financial bottom line are telling marketers to ignore this function and putting them in position to build customer demand for unsustainable products and services. But marketers are not simply victims here. They have a choice: keep playing the game, try changing the rules in favor of sustainability or look for a new employer or client.

A marketing program devoted to sustainability would adopt and track metrics that demonstrate how and how well marketing is contributing to the financial health of its employer or client, the well-being of people the company interacts with and the protection of the environment. I know this is asking a tremendous amount from marketers, not least of which is to define the non-financial metrics to be used.

At this point, I’d be happy getting more people in business to agree the value of marketing shouldn’t be measured in dollars and cents alone. Anybody building a triple-bottom-line dashboard?

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