Dma14 rob and richard keynote final slideshare

Trust, Transparency and
Ice Cream
Using Business as a Force for Good
Rob Michalak,
Global Director
of Social Mission
Richard G. Rosen,
President & CEO
Thursday, October 23, 14

I believe we are in the midst of one of the most dramatic and overarching shifts in marketing and advertising we will see in
our lifetimes.

I want to talk to you today about a world where businesses strive not only to be the best IN the world, but to be
the best FOR the world. Where companies that don’t uphold those values are forced to close up shop, where
companies that do uphold those values achieve enormous success. That world is closer than you think.

The Changing Landscape
Copyright 2014 Rosen. All rights reserved.
Heightened
Competition
Social
Media
Concerned
Consumers
This change is being driven by three key factors.
First, consumer values are changing. They want to support trustworthy companies that are having a positive
impact.
Next, in today’s highly competitive marketing landscape, genuine values are helping companies stand out in the
crowd. And finally, this dramatic shift would not be possible without the transparency of social media, where good
companies can be publicly celebrated, and bad companies can be turned into pariahs overnight.

of global consumers
believe that business
needs to place at
least equal weight
on society’s interests
as on business’
interests.
87% Concerned
CCoonncceerrnneedd
Concerned
CCoonnssuummeerrss
Consumers
Consumers
First, consumers are more aware and concerned about the impact of their purchases. 87% of global consumers believe that
business needs to place at least equal weight on society’s interests as on business’ interests.
(Sources:
2012
Edelman
GoodPurpose
Study,
Havas
Media
“Meaningful
Brands”
Global
Report,
2013
Deloitte
Core
Beliefs
&
Culture
Survey,
2013
Cone
Communications/Echo
Global
CSR
Study)

90%
CCoonncceerrnneedd
Concerned
CCoonnssuummeerrss
Consumers
Concerned
Consumers
would boycott if they
learned of a company’s
irresponsible business
practices, and...
have done so in the
past 12 months 50% Copyright 2014 Rosen. All rights reserved.
Consumers are taking more active roles these days to show companies they mean business. 90% of consumers say they would
boycott a company if they learned of their irresponsible business practices, and 50% have done so within the last year.
In
short,
today’s
customers
want
to
buy
good
products
from
good
companies
they
trust,
that
also
reOlect
their
values
and
lifestyles.
(Sources:
2012
Edelman
GoodPurpose
Study,
Havas
Media
“Meaningful
Brands”
Global
Report,
2013
Deloitte
Core
Beliefs
&
Culture
Survey,
2013
Cone
Communications/Echo
Global
CSR
Study)

The Marketing Landscape Evolves
Source: Kotler, Phillip. (2000) Marketing Management.
Upper Saddle River, New Jersey: Prentice Hall.
Heightened
Competition
In a highly competitive marketing landscape, not only are consumer values changing, but the marketing landscape
is changing as well. Over the last hundred years of marketing, there have been 4 seismic shifts in marketing, the
production era, the product era, the selling era, and the marketing era. As more firms adopt the techniques of
one era, those tactics become less and less effective.
Well we are actually already into the 5th era, what Phillip Kotler called the Societal era, where companies adopt a
triple bottom line approach (people, profit, and planet).
(Source: Kotler, Phillip. (2000) Marketing Management.
Upper Saddle River, New Jersey: Prentice Hall.)

Will not be
enough
Source: Kotler, Phillip. (2000) Marketing Management.
Upper Saddle River, New Jersey: Prentice Hall.
Heightened
Competition
Frankly, you can have a great product at a great price and have great promotion, but it won’t be good enough in
the Societal Era. That’s just par. There are already plenty of firms doing it already. Company values that speak to
people’s higher purpose and potential are what provide a new competitive advantage.
(Source: Kotler, Phillip. (2000) Marketing Management.
Upper Saddle River, New Jersey: Prentice Hall.)

Social Media
The world will know
who’s good and who’s bad
Social
Media
The third factor driving this revolution is social media. Social networks are providing customers with an enormous voice, forcing
companies to be transparent about their business practices. And they’re using that voice to celebrate good companies and
punish the bad ones.

Social
Media
An example of irresponsible business practices showcased by a customer is United. And they paid the price -
United Breaks Guitars.
Here’s what happened: A singer/songwriter named Dave Carroll was flying United. As he was getting ready to get
off the plane, he heard another passenger say, “My God! They’re throwing guitars out there!”
As Dave and the other band members looked out onto the tarmac where the luggage was being unloaded, they
recognized their guitars. Their reaction was a blend of terror and disbelief.
Later he indeed discovered that his $3,500 Taylor guitar’s neck had been broken.
What followed was a customer relations nightmare. Dave tried for nine months to get a claim processed with
United. The response was a firm and consistent “no.” They claimed he had waited longer than 24 hours to process
a claim, so he was out of luck. He tried phone calls. He tried e-mails. He even went so far as to suggest that
instead of money, United give him $1,200 in flight vouchers to cover the cost of repairing the guitar. United held
firm. They said “No.”
Ultimately, United didn’t compensate him in any way for his broken guitar.
So, what else could a singer-songwriter do? He wrote a song titled “United Breaks Guitars.” He put it up on
YouTube and it went viral. It has over 14 million views.
The BBC reported that United’s stock price dropped by 10% within four days of the release of the video – a
decrease in valuation of $180 million, from just one person’s bad experience. This is the enormous
downside potential of not acting with integrity.

Social
Media
But if that’s the downside potential, the upside potential of relying on genuine values is even greater.
ALS challenged people do do something simple - pour a bucket of ice water over their heads, and donate to the ALS fund.
The results? Over $100 million in donations in just one month!
(http://www.forbes.com/sites/dandiamond/2014/08/29/the-als-ice-bucket-challenge-has-raised-100m-but-its-finally-cooling-off/)

Success =
Blend of Profits + Social Purpose
In this changing landscape, the companies that have sustainable success will be the ones that blend profits and social purpose,
like the ALS ice-bucket challenge. Because people crave empathy - they want to be a part of something that’s bigger than
themselves, that makes them feel empowered.

????? why should I
??????
???
So...
?
?????? ?
???
as a marketer,
Care?
???

We’re good at spinning
marketing tools.
As marketers, we are all really good at talking analytics and spinning all the online and offline tools essential to marketing -
social media, email, direct mail, etc etc. This will always be a necessary part of what we do.

Values add another layer to our
messaging platform
Higher Purpose
Brand Direct
Convergence
Awareness Behavior
Hearts and Minds
And for years, I’ve been talking about what I call Convergence - combining both disciplines of Brand and Direct marketing.
Convergence gives you the power necessary to build awareness and change behavior at the same time. I’ve said for years
that we have to use these 2 disciplines plus empathy and authenticity to start a dialogue with your customers. To gain that
trust.
Now we can overlay higher purpose to capture the hearts and minds of customers as well. This adds a whole other layer to
our brand messaging platforms. It will give an improved level of meaning that includes transparency, authenticity and empathy.
This new layer onto our brand briefs will drive customer dialogue and ultimately win long-term relationships.

To win their Hearts and Minds,
we must stand for genuine values.
By incorporating this other layer of genuine values into the fiber of your brand, you will win the hearts and minds of consumers.
It will spark that greater connection with your brand, and increase interaction rates leading to sales.

A great example of a company who has incorporated genuine values into their brand is Ben & Jerry’s.

Ben and Jerry started their business in 1978 as a community ice cream parlor sitting on a city center street corner.
They knew they wanted to form a deep connection with the vibrant community in the area.

In 1988, when Ben & Jerry’s reached its 10th Anniversary and the business was growing, Ben, Jerry, and company
leadership, wanted to institutionalize a linked prosperity business model that stood on three pillars. One of these
– the Social Mission – was the first time a large company put a social purpose alongside the economic and product
missions. Leadership knew this would be an ever evolving business model. The idea was that as the company grew
and prospered, all of its stakeholders, throughout the value chain, would prosper too.

From the earth, to the seed, to the farmer, through manufacturing and delivery of products to the marketplace, to
engagement with consumers and the general public, Ben & Jerry’s seeks to make business decisions that create
prosperity throughout its value chain. Prosperity means many things at so many levels so Ben & Jerry’s takes a
holistic approach.

Ben & Jerry’s believes that it’s OK to have a sense of irreverent humor, perhaps a bit of tongue-in-cheek, in the way it engages with fans
and the public at large to bring the issues of today to a new level of public awareness and discourse.
Over the years, the company has brought many demonstrations, often in altered forms such as polar bears and cows, to the halls of power,
to bring voice to and shed light on issues that might have been buried under layers of mind numbing bureaucracy and governmental
paralysis.

Builds Value by Starting with Values
As part of its contract with its customers, Ben & Jerry’s strives to have an honest and transparent relationship that builds trust over time,
which builds loyalty over time. The more transparent and courageously honest that relationship is, the better. Ben & Jerry’s reports its
annual social and environmental activities each year, complete with a third-party audit of the major initiatives. They Publish the findings,
good and bad, for all to see.

Who Are the BCorps?
Who are the B Corps? They are approximately 1200 companies around the world - encompassing both small
(Pacific NW Kale Chips) and large businesses (Patagonia, B&J, Etsy) and both product and service companies.
The community is strong and growing. BCorporations take a stand for genuine values and try to be the best FOR the
world. B Corps are engaging consumers as partners in creating a brighter future while making money at the same time.

The B Corp assessment is a great compass to see how your company is doing right now, and where it could
improve.

“Customers will choose brands that
make a difference. We’re seeing this
first hand as sales increase for purpose-driven
campaigns.
Successful companies in this new world prove that
doing good leads to doing well. Business imperatives
demand it. And CMOs will relish it.”
- Pam Larrick, CEO of Javelin
Marketing leaders, like Pam Larrick, CEO of Javelin, are already doing this. Currently Javelin is the agency for AT&T, Hyatt, and
ING.

Companies with Strong Sense of Purpose
outperform
Companies without Strong Sense of Purpose
Investor
Confidence
Community
Support
Employee
Engagement
Client
Trust
Source: Deloitte
As you can see through this graphic, having a strong sense of purpose is more than feel-good window dressing. Not only is it
good for marketing, but it’s good for your business. Taking a stand for genuine values and having a strong sense of purpose
gives your brand a competitive advantage. This graphic compares organizations with a strong sense of purpose (in blue) to
organizations without a strong sense of purpose (in green).
Ultimately Bcorps and companies with a strong sense of purpose instill greater confidence in investors, receive support from
their communities, establish more trust with their clients, and have more engaged employees.
(Source: Deloitte)

Over 40 studies now conclude
that higher standards of social,
environmental and governance
practices reduce financial risk and
create long-term profitability.
Over 40 studies now conclude that higher standards of social environmental and governance practices reduce financial risk and
create long-term profitability. And who are the Birkenstock-wearing hippies conducting these studies? They’re Goldman Sachs,
Deloitte, The Economist, McKinsey & Company, MIT, and others.

Consider...
1. The Changing Landscape...
2. Great product, great price and great
promotion will not be enough.
Heightened
Competition
3. Engage hearts and minds and follow Ben & Jerry’s lead
--Take a stand for genuine values.
4. Your brand will be more relevant
when you embrace profits and social purpose.
5. Become a B Corp. It’s good marketing, good for
your business, and will give your brand a
competitive advantage.
Social
Media
Concerned
Consumers

Take the next step:
Visit rosenconvergence.com/DMA14
Rob Michalak,
Global Director of
Social Mission
www.benjerry.com
Richard Rosen,
President & CEO
@richardrosen

Join us for a FREE scoop
of Ben & Jerry’s in the
DMA Village, within the
Exhibit Hall.

Dma14 rob and richard keynote final slideshare

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