Has Purpose-Driven Marketing Become Less Relevant to Consumers?

5 04 2023

Photo: Unsplash / AbsolutVision

By Tom Ryan from retailwire.com • Reposted: April 5, 2023

A new study finds over 57 percent of U.S. consumers cannot name a brand that is making a difference when it comes to either the environment or diversity.

Slightly fewer, 54 percent, could not name a brand that gave back to the community, according to GfK’s first “Purpose Impact Monitor” study.

The study found that three-quarters of generic ads captured the attention of consumers. The proportion dropped to two-thirds for cause-focused ads.

“The truth today is that purpose-driven efforts and campaigns have become commonplace – even mundane,” said Eric Villain, client solutions director for Marketing Effectiveness at GfK, in a statement. “If a brand were to completely shun causes, that would likely be noticed; but supporting them is not a differentiator anymore. This means marketers and brands need to work harder – in keeping with their brand essence and the category – to really make an impression with their purpose efforts.”

Recent research from CivicScience found 73 percent of U.S. adults agree that a company’s “social consciousness and overall kindness” is either “very important” (29 percent) or “somewhat important” (44 percent) when choosing where to shop and what to buy.

The importance peaked in 2020 during the Black Lives Matter protests and the presidential election. Sentiment “softened over the past year, likely as price sensitivity and economic concerns grew.”

The socially responsible marketing consultancy Good.Must.Grow’s “Tenth Annual Conscious Consumer Spending Index” found the momentum for conscious consumerism and charitable giving surged to a record high of 51 on a scale of 100 in 2021 as the pandemic “reenergized the pursuit of purpose.” It eased to 49 in 2022.

The decline in 2022 was attributed to inflation as 46 percent of Americans said the cost of socially responsible goods and services prevented them from buying more.

“I believe this year’s data demonstrates several things, one of which is the tension involved with following through on good intentions in the face of economic pressures,” said Heath Shackleford, founder of Good.Must.Grow. “Those of us working for the growth of socially responsible brands must continue to prioritize competitive pricing.”

To see the original post, follow this link: https://retailwire.com/discussion/has-purpose-driven-marketing-become-less-relevant-to-consumers/




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