Month: October 2013

Finding the true value in non-financial returns

This article in the Wall Street Journal Online from some years back examines the business of social responsibility and asks what’s the financial payback for generating all this goodwill. Perhaps the most interesting point to emerge was that social responsibility was not directly rewarded financially by effort invested. Companies that did just a little were rewarded almost as much as those that went all out, leading the writers of the article to conclude: “It seems that once companies hit a certain ethical threshold, consumers will reward them by paying higher prices for their products. Any ethical acts past that point might reinforce the company’s image, but don’t make people willing to pay more.” So, beyond a certain point of noticeability, the notion of social responsibility is actually more important than the reality. As consumers we are motivated to reward positive actions – up to that point, but not far beyond. This in itself raises begs wider questions around the elasticity of goodwill. How far does it stretch economically? What credibility should we give goodwill as …

Would you want to sit next to your own brand at dinner?

Recently, in a thought-provoking post on why the PR industry, advertising and the mainstream and hybrid media need to work in a much more integrated way, Richard Edelman made this deceptively simple observation, “Ads are inherently more effective when you have something to say.” And therein lies the crux. In a world where it’s never been harder to get people’s attention, too many brands have nothing in their DNA and in their messages that brings a smile to the faces of consumers. They exist. But there is no Long Idea. There is nothing iconic. There are no delicious insights. As a result, their marketing is often just information and, hard as it is for many brand managers to hear this, pure-play marketing information is flatline from an excitement point of view. Presence, top of mind, awareness – whatever you want to call it – is a far cry from being interesting. Impressions mean nothing if brands fail to impress. Before anyone says it, this is not about budget. It’s really about having the imagination and …