Speaking from the WFA's Global Marketer Week in Sydney,
Australia, Stephan Loerke, managing director of the WFA, said,
"There is consensus that brand purpose is increasingly relevant,
but people and marketers don't seem to agree on what it means.
Marketers see it as the bigger picture, but people see it as what
you do in daily life."
However, marketers are starting to make the transition, shifting
away from big-picture concerns like improving the environment and
other global issues, and towards efforts that have a more immediate
impact on individual's lives. The survey found that programs
supporting communities, and ethical business practices, are now
seen as the two best ways to support brand purpose by 55% and 47%
of respondents respectively.
In last year's survey, the environment scored 56% and global
issues 52%, but they were down to 39% and 35% this year.
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 –
but they struggle to work out how it benefits the bottom line. Only
51% of marketers believe that it is possible to identify clear
metrics that prove the benefit of purpose to sales, and just 30%
think you can assess the impact of purpose on share price.
Mr. Loerke also spoke about the "striking discrepancies" between
marketers' expectations of their consumers around the world, and
the reality of commitment to brand purpose. He said, "Marketers
underestimate the interest in brand purpose outside Europe and the
U.S. They think it's mostly relevant to Western markets, but the
reality is a very different story -- there is a global
appetite."
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.