cmo conference 2010 - justin basini
DESCRIPTION
This is Justin Basini's presentation from The 3rd European CMO Conference held in Zurich on the 30th September. The presentation theme is Marketing Leadership: from Shareholders to StakeholdersTRANSCRIPT
1
Leadership in Marketing: from shareholder to stakeholder value
Justin Basiniwww.basini.com www.conservation-economy.orgFounder, Basini & Company
Founder & CEO, Allow (www.i-allow.com)
No group hugs
You decide what to take back to your desks or throw away
?HOW ARE YOU FEELING SO FAR?
REALITY, CONSUMPTION & SUSTAINABILITY
BUBBLES, OVER-CONSUMPTION &
TRUSTMARKETING,
HUMANITY & BUSINESS
REALITY, CONSUMPTION & SUSTAINABILITY
TRUST, BUSINESS& BRANDS
MARKETING, HUMANITY & BUSINESS
We are at a fork in the road
Where have we come from?
Where are we going?
1840 2008200019501900
We are certainly getting richerWe are certainly getting olderWe are working more
We are getting fatter
More crimeWe are voting less
1840 2008200019501900
We are not however getting more satisfied
CONSUMPTION ENGINEERING
Build trust
(WE) MARKETERS ARE THE ENGINEERS OF CONSUMPTION
?CAN WE CONTINUE TO BE CONSUMPTION ENGINEERS?
REALITY, CONSUMPTION & SUSTAINABILITY
BUBBLES, OVER-CONSUMPTION &
TRUSTMARKETING,
HUMANITY & BUSINESS
THE BRAND ASSET BUBBLE
OVER-CONSUMPTION & THE EFFECTS
WE AREN’T TRUSTED ANYMORE TO DO THE RIGHT
THING
Brand asset value is outstripping perceived customer value
Intangible assets are making up a larger proportion of enterprise value
0
10
20
30
40
50
60
1950s 1960s 1970s 1980s 1990s 2000s
% e
ntr
epri
se v
alu
e
Source: BAV databases and Y&R historical research (Market Leader Sept 2009)
For strong brands, brand value as total of company value is greater still…
84%
Source: Brand Finance, Market Leader Sept 2009
The ‘valuation gap’ according to consumers
Source: BAV 1993-2007 brand data. Copernicus, Jack Trout and Kevin Clancy (Market Leader Sept 2009)
PerceptionIf brand value is increasing….
So should brand trust
Brands should be more liked and admired
Brands should be better known
Quality perceptions should be increasing
Brands should be more differentiatedDifferentiation declined in 40/46 categories
Quality perceptions decreasing
24%
Less salient than ever
20%
Less liked and respected
12%
Less trusted than ever
50%
Reality (over last 10 years)
Less than
40% of people know their
neighbours
Average age of “midlife” crisis now down to
30s
Incidence of depression and
breakdown has TRIPLED in past 20 years
Number of people taking part in community activity
half what it was 20 years ago
Fewer than 1 in 3 say they believe in
God
We’re consuming resources as though there are 3 planets, not
1Sustainability isn’t compatible with consumerism in it’s current form
Source: WWF, One Planet Living 2009
CAN I
YOU?
Doct
or
Teac
her
Prof
esso
rs
Judg
es
Cler
gy/P
riest
s
Scie
ntist
s
Tele
visio
n Ne
wsr
eade
rs
Polic
e
Ord
inar
y m
an/w
oman
Polls
ters
Civi
l ser
vant
s
Trad
e Un
ion
lead
ers
Busin
ess l
eade
rs
Gove
rnm
ent
Jour
nalis
ts
Politi
cians
92%88%
80% 80%
71% 70%
63%60%
54%
45% 44%
38%
25%
16%
22%
13%10%
5%
14%18%
-11%
4%
-13%
-5%
-16%-13%
19% 19%
-22%
45%
120%
-7%
Who do we trust and how is it changing?
2009 % change 1993 to 2009
Source: IPSOS MORI, around 2,000 British adults 15+ asked the question: “…would you tell me whether you generally trust them to tell the truth or not?”
Arge
ntina
Aust
ralia
Chin
a
Fran
ce
Indi
a
Japa
n
Kore
a (S
)
Russ
ia
Sout
h Af
rica
Spai
n
Swed
en UK US
GLO
BAL
AVER
AGE
-43%
-17%
-9%
-8%
16%
6%
-28%
-37%
-58%
-1%
17%
-32%
-12%
-16%
Change in generalised trust over past three decades
Source: Justin Basini analysis of World Values Survey data 1980-2001. Notes: Each wave of global research is completed in those countries from 1000s of interviews with a range of representative demographic segments
TRUST IN BUSINESS DOWN TO 22% GLOBALLY, A
DECREASE OF 25% OVER THE PAST DECADE
?BUT ARE THESE ISSUES FOR US TO CLEAR UP? WHAT DO WE DO?
REALITY, CONSUMPTION & SUSTAINABILITY
BUBBLES, OVER-CONSUMPTION &
TRUSTMARKETING,
HUMANITY & BUSINESS
Rebuild trust
Source: Trust and Distrust in Society, Markova, Linell, Gillespie (2008)
Macro-social trust
Micro-social trust
Primary (taken for granted) trust
Reflective Trust
Basic trust (ontological)
Context-dependent(context specific) trust
A priori generalised trust
Inner dialogicality
Self-confidence / self-doubt
Third parties
Conceptual trust
Co-operation
Conceptual trustAuditing
Machiavellian strategies
Conceptual trustPre-conceptual trust
Psychosocial feeling
Pre-conceptual trust
Social cohesion
In group solidarity
Local communities
Emotional interdependencePsychosocial feeling
Pre-conceptual trust
Rebuild trust
A trusts B to do XEngage & establish credibility
Set the right expectations
Active honesty & respect
Keep your commitments visibly & be consistent
We all know what creates trust…now go do it!
Show you trust
Idea Why? Who’s doing it?
Build brands with massive premium
Takes more value out of revenue pool per transaction and generally increases length of ownership and resale value
Design products which last longer
Increases product life cycle, can be afforded by brand premium, helps resale/reuse
Create marketing which builds trust
Trust is social capital in a society, marketing can damage or build that trust e.g. using fear or over-promising
Be responsible for insight into all stakeholders not just customers
All stakeholder groups are human – marketing has the competencies to understand all wants and needs
Change systems to surface tensions between different stakeholder groups and train people
The ethical responsibility of managers is to balance the needs of different groups – doing this in practise is hard needs to be in systems and training
Integration of sustainability & CSR with marketing
Todays radical transparency means that companies need to integrate all activities holistically, plus marketing budgets are bigger and therefore can have more impact
Idea Why? Who’s doing it?
36
Leadership in Marketing: from shareholder to stakeholder value
Justin Basiniwww.basini.com www.conservation-economy.orgFounder, Basini & Company
Founder & CEO, Allow (www.i-allow.com)