WFA: Marketers Lag Consumers On Importance Of Responsible Brands

9 03 2013

man-shopping-with-mobile

According to new research released this week by the World Federation of Advertisers, some 83% of marketers believe brands should have a “purpose”, but many shoppers have moved ahead of the industry in this area.  Some 56% of industry insiders thought consumers would prefer brands that supported “good causes at the same time as making money”, but Edelman’s consumer research pegged the actual total at 76%.

These figures stood at 40% and 47% respectively with regard to how many people bought caused-backing products at least once a month.

More broadly, only 38% of marketers had witnessed “consumer scepticism” when trying to position their products around a “purpose”, with shoppers in Europe, somewhat surprisingly, the least cynical.

The trade body polled 149 marketers from 58 firms controlling $70bn in adspend. It then compared the results with a global poll of 8,000 shoppers conducted by Edelman, the PR network.  The study was presented at the WFA’s Global Marketer Week, and features insights from organisations like Anheuser-Busch Inbev, the brewer, and Johnson & Johnson, the healthcare giant.

Fully 80% of the professionals polled agreed chief executives should help and be involved in shaping a purpose, a reading which stood at 74% for chief marketing officers, 64% for corporate communications and 53% for all staff.

While 49% of this panel agreed their brands had a purpose, only 38% felt it was communicated well. More positively, a 93% majority said the impact of purpose on reputation could be measured, as did 91% for consumer engagement.

Upon being asked to name the company which has best embraced purpose, Unilever, the FMCG firm, led the charts on 23%, buoyed by its goal to double sales and halve its environmental footprint by 2020.

Procter & Gamble, a rival to Unilever, took second on 15%, and has embraced the corporate mantra of “touching and improving” consumers. Soft drinks titan Coca-Cola was third on 14%.





Edelman Trust Barometer: Only 46% of Americans trust business to do the right thing.

12 01 2012

In their 11th annual global survey on trust, Edelman research reports that people’s trust of institutions and returned to levels comparable to the height of the worldwide financial crises in 2009.

When asked how much they trust various institutions, only NGO’s were trusted by the majority of U.S. respondents.  Business, government and the media are not trusted by the majority of people and media’s trustworthiness as reached record lows.

  • 55% trust non-government organizations
  • 46% trust business.
  • 40% trust government.
  • 27% trust the media.

The drivers to corporate reputations are quality, transparency, trustworthiness and employee well-being.

The study concludes that businesses must align profit and purpose for social benefit.  It reports that people’s demands for authority and accountability are setting new expectations for corporate leadership and that trust is the essential component to both protect reputations and gain tangible benefits.  Lack of trust is a barrier to change.