Today’s marketing audit or marketing analysis is still a comprehensive review of marketing practice; but it looks quite a bit different than it did a decade ago for several reasons. The pace of change, especially in communications, makes promotional strategies obsolete very quickly. Additionally, the demand for transparency and responsiveness’ to stakeholders or other constituents means the process must look at more than just customers.

The modern marketing analysis should accomplish two core outcomes:

• Provide a simplifying and unifying focal point, and
• Identify ways to streamline and synergize current efforts.

The simplifying and unifying focal point gives the organization a guiding star by which to navigate in otherwise chaotic times. For many this is identifying the timeless customer need that is a through-line for all the organization’s products and services. It answers the question “What business are you in?” In other situations the focal point can be a specific strategy, brand initiative or the launch of a specific marketing program.

Identifying ways to streamline and integrate efforts is a particular challenge for companies that tend to create silos according to functional tasks like sales management, advertising, PR, Web and Search Engine Marketing, and Social Media.  Creating a unified strategy for promotion will help strengthen execution, create alignment and reinforce brand messages.

If you Google or Bing “marketing audit” you’ll likely find outlines and to-do lists for self-assessments. As of August 2010, most of what’s available is very similar to what you would have found at the library way back in 1990 when I first wrote about audits and starting doing them for clients.

In contrast to audit protocols of the past, today’s marketing analysis should cover:

• The core business that underlies your products and services. Is there ambiguity about this core or elements that distract?
• The regulatory or activist initiatives impacting manufacturing and distribution. Where do stakeholders’ environmental and social justice concerns intersect with marketing?
• Integration and alignment of sales strategies with traditional and new media promotion. Were your strategies for sales, advertising, pr, Web and social media designed to work together, or are one or more parts “bolted on”?
• The “Soft Stuff” – the human environment of marketing, including employee understanding of and/or commitment to current strategies and programs.

Beware the assessment that says you’ll get a comprehensive audit for $500 or even $1,500. Think about it. Most consultants charge $200 to $250 an hour. Do you think they can accurately assess your firm and its situation in 2-6 hours? More likely this is how long it takes them to plug your name and company details into a boilerplate report, that –surprise! – reveals you need to hire them for additional services.  Be willing to pay for a quality service that can stand on its own without obligation for further involvement by the consultant.

Be clear about your own objectives for the process.  How deep do you really want to go? Are you looking for a few new ideas? Or do you want a comprehensive management assessment that gives you high ROI recommendations?  I won’t even ask if you want a quick fix, because everyone does.  Are you willing to entertain a bigger fix if the audit suggests it? Are you pondering questions about your company’s strategy or direction, but don’t want to get bogged down in a long-term process? Consider your desired future end state and communicate that to the consultant as you engage in the audit process. Clear objectives at the start will help create a better end product.

Few companies argue that fostering trust with customers and other stakeholders is an important business task. Where there’s disagreement, however, is what specifically fosters trust, and the degree to which trust between customers and companies – particularly as it relates to green or sustainability claims – is suffering.

Our academic partner, Jenny Mish, PhD., assistant professor of marketing at Notre Dame, explored this and other questions in her doctoral research. Her study, which explored food standards and sustainability, resulted in insights about marketing behaviors that foster trust.

Mish interviewed a wide variety of individuals representing institutions engaged in developing or promoting the use of market-based product standards, such as Fair Trade or organic, that specify reductions in negative environmental or social impacts.  She spoke with people in large corporations like McDonald’s, in government such as the United States Department of Agriculture, and  smaller, grassroots organizations such as the Portland, OR-based Food Alliance.

The spectrum of types of trust she found span from the very impersonal and institutional, to the highly personal, local and dare we say “intimate.”  Large corporations tend to look primarily at repeat purchase behavior to evaluate the degree of trust they’ve engendered with customers. Some companies evaluate trust on the basis of their ability to fulfill key expectations of sustainability performance. Still others evaluate trust on the basis of direct, personal interactions with customers, and the degree to which they had actual contact with customers and other stakeholders.

Her findings suggest that marketers may be able to foster trust three different ways:

Preserving the Integrity of the Brand: The least personal form of trust is embodied in the brand attributes that create a predictable customer experience. This is true even when the context is not sustainability or green attributes.  This calls for organizational and channel alignment to fulfill brand promises consistently, which means full commitment to green or sustainability standards…not merely claims that show up in features and benefits.

Compliance with a Market-Based Standard: A company’s ability to merit certification such as the USDA’s organic standard or Fair Trade, creates a type of performance contract with customers that fosters trust. Marketers may encourage their organizations to qualify for certification, but ultimately this will require cross-functional collaboration to bring operations into compliance. Standards that inspire trust are those that are either objectively evaluated (by government or third-party) or that are developed and supported by a wide coalition of contributors/stakeholders.

Designing Highly Personal Forms of Contact with Customers: A company’s ability to deal directly and personally with its customers, such as “meet the farmer” programs, can foster the most personal type of trust.  These programs are common in “local” exchange relationships, such as those formed at farmer’s markets.

One implication of the study, as I see it, is that human interactions (personal) are where trust can be lost altogether, or maintained in either an impersonal or highly personal and reciprocal manner. Mish’s study was not designed to explore trust as engendered by the sales process, but we know from other experience that the quality of those interactions also impact on consumer perceptions. While they make good marketing sense, authentic interpersonal relationships are usually not driven by marketing goals. They usually reflect a sense of “this is the right thing to do regardless” in the company culture, as is the case with local relationships described above.  They manifest from the shared values of everyone in the company.

Ultimately fostering trust is not a matter of choosing between these forms. It’s bringing all types of trust-fostering practices to the marketing agenda. The assumption is that if the organization is large, then personal interaction is not possible.  If we believe, however, that it’s the right thing to do, then it becomes an opportunity for innovation. There’s the marketing challenge — creating trust-engendering relationships between human beings on both sides of the exchange process, regardless of company size.

—–

Jenny Mish’s dissertation is “Centralizing and Decentralizing Forces in the Development of Sustainable Markets: A study of Food Product Standards.” It was published in 2009, by the University of Utah.

By Kathleen Hosfeld

An executive I’ll call Adam (not his real name) was frustrated with the company’s inability to get traction on its marketing strategy. A thoughtful leader who’d spent part of his career in a consulting firm, Adam didn’t understand why his direct reports weren’t making more progress.  As we interviewed him and his executives, we discovered that their archetypal understanding of the company’s strategy was completely different.  The difference had profound implications for almost every aspect of the company’s operations – from planning to marketing to organizational structure and hiring.

Thinking about strategic archetypes was developed into a useful framework by professors Jeffrey Conant, Michael Mokwa, Rajan Varadarjan and Daryl O McKee (Texas A&M, Louisiana and Arizona State Universities). We used their research  with permission in the development of our online strategic assessment instrument, which allows us to type companies and their executives using these four archetypes:

• Prospector – The consummate innovator, able to anticipate and capitalize on trends, design breakthrough new products and services, highly agile and market oriented. Product and service innovators.
• Analyzer – Capable of innovation, but more likely to focus on market penetration for products or services with proven potential.  Strategic market developers.
• Defender – A niche or focused company that is highly selective about the products and services it offers.  Their strategic advantage in a reputation for quality and effective cost management.
• Reactor – Responds to the competitive movements of other companies. Opportunistic rather than strategic.

Each of these archetypes has its own approach to planning, research, products and service selection or innovation, promotion, pricing and organizational structure.

Archetypal language helps simplify otherwise complex constellations of factors in organizational life. Many consultants have been inspired by the work of Carol Pearson, author of The Hero and the Outlaw: Building Extraordinary Brands Through the Power of Archetypes (McGraw-Hill, 2001) to use archetypal language in building brand identities.

Like an organizational Meyers-Briggs, an archetype assessment gives executives an accessible vocabulary to identify strategic disconnects between the C Suite and the rest of the organization, and even within the executive team. Our client Adam consistently scored as an Analyzer and all of his direct reports as either Defenders or Reactors.  This helped Adam understand why he felt misunderstood, and sometimes lonely. It also gave him a means by which to articulate the specific areas where he needed to bring the organization into alignment around his vision.

The most important learning for Adam’s organization was that the Reactor type isn’t really a strategic alternative at all. It’s the archetype of no clear strategy. When too many people score in this category, it’s a sign that either there is no clear alignment around a strategy or that no one as yet understands the strategy. It’s a wake-up call for making conscious choices about which archetype best suits the assets and resources of the organization.

For many, a strategy is a series of financial goals the company must achieve. Archetypal language gives companies a more streamlined way to talk about how to start rowing together in the same direction towards those goals.

Recently the radio industry was rocked by the results of using new listening measuring devices to monitor listener behavior. Called “People Meters,” the devices “listened” to the sound in the room of the person wearing them, and recorded what stations they picked up. Prior to the use of these devices, people kept journals of how many hours a day they listened to particular stations. What people reported was that they listened to National Public Radio stations and classical music stations. What the People Meters revealed however is they were actually tuning into easy listening , oldies and country western stations. This is something like reporting that you read National Geographic, Scientific American or Town and Country magazines, when in fact you’re actually reading People, Cosmopolitan or Seventeen.

The difference between what we know we should do and what we actually do is something that smart marketers have noticed for a long time. It’s a lesson many forgot in the dot.com bubble days when focus groups asked people to evaluate whether or not they would use a certain Web technology in the future.

The Hartmann Group, a Bellevue research firm, has explored the gap between our so-called “new thrift” and the actual purchase behavior of many consumers. We clip coupons for the grocery store, but then go out and buy an iPhone. This phenomenon helps us understand why people report that sustainability is very important to them, but their purchase behavior doesn’t necessarily confirm it.  Read more here.

In the interview Simon said that buying a cup of coffee whose brand values include fostering a sense of community (the idea of Starbucks’ locations as a social hub or “third place”) does not mean you will actually experience community. This, no doubt, depends on how one defines community. Simon’s definition, as expressed in the interview,  includes democratic debate and dissent. Fostering civic dialogue is not a core element of the Starbuck’s store experience so for Simon it’s not creating “real” community. For many of Starbucks’ customers, however, community may be like the old TV show “Cheers,” a place where “everybody knows your name.” Being a “regular” at a particular Starbucks (or any other coffee place), where the baristas know your favorite order can lead to this type of community feeling.

As he concludes the interview, Simon raises an important issue for those of us bringing the values of sustainability into brands and marketing strategies. He says that the values to which brands try to appeal may not be values that can be realized through how we spend our money. My paraphrase of his statement from the interview is that it’s good news if people really want the values that Starbucks promotes, because the brand promotes positive social and environment change. He says, however, if we think we are creating those changes simply by buying Starbucks coffee, we’ve missed the point.

“If we judge our desires by what we buy from Starbucks – if we want a greener planet, if we want more connections, if we want social justice around the world – (these) are values that could build a more democratic order. The problem is we’re not going to get them through buying,” is my rough transcription of his comments.

Purchase decisions alone are not enough to effect the cultural and political change that we need to address society’s most pressing environmental and social needs. However, purchase decisions are not irrelevant. Does buying a sustainable product relinquish us from the responsibility to be citizens who vote and take part in civic dialogue? No. But every purchase decision is a tiny vote for the things we think are important, and a way to support those companies who are sincere in their intent to create meaningful change through their work.

Listen to the archived interview here. Reynolds interview with Simon starts at minute 34 in the Real Audio file. I’d like to know what you think.

Who Is This For?

These services are for companies that have already experimented with and seen benefit from waste and energy management practices, and that are looking for new opportunities for innovation, competitive differentiation, and strengthened customer relationships. Our stakeholder engagement services help companies tap the creative potential of relationships with customers, employees and other partners. Our rapid strategy services help clients get traction on new initiatives and design them for maximum return in value and learning.

Companies that would benefit from these services are those that seek to:

• Convene a team to develop and implement a strategic action plan quickly
• Tap the creative potential of employees, customer and other partners for breakthrough ideas and strategic insights
• Learn more quickly from experiments by measuring what matters
• Increase accountability and follow-through for strategy implementation
• Build capacity for dialogue, collaboration and partnering as they do real work (not in a classroom)

What Strategy Services are Provided?

Rapid Sustainability Strategy – We enable companies and lines of business to accelerate the development of new sustainability oriented products, services and business models. We accelerate and invigorate the planning process so that participants are emotionally and intellectually connected to your strategy and its successful implementation. As a result, you can realize returns and value from your work more quickly.

Stakeholder Experience Strategy — We enable companies to tap the significant business benefit of stakeholder loyalty and trust. We combine principles of stakeholder marketing and Total Customer Experience management to identify all the ways the company engages with stakeholders and the corresponding opportunities to create transformative partnerships with them. We engage the intellectual and emotional commitment of team members, leading to effective follow-through and acceleration of results.

Stakeholder Marketing Strategy — We work with our clients to design stakeholder marketing systems, strategies and action plans that accelerate the realization of value from stakeholder engagement. We help companies use stakeholder marketing approaches to tap tremendous potential for innovation, trust and loyalty. In the face of increasing complexity and potentially competing stakeholder needs, we help clients clarify their objectives, build their capacity to manage stakeholder dialogue, and implement strategic change quickly.

For detailed information on these services, please download our brochure here.

Many are the challenges facing today’s marketing practitioners as they seek to cultivate relationships with customers in a volatile economic climate.  As a chief point of contact between the company and its customers, marketing is a place where trust is either won or lost.  As many consumers cut back on spending, trust is one of the critical factors underlying purchase decisions. But research shows that decades of intrusive, coercive demand-creation efforts have created layers of resistance that are now compounding companies’ woes.

Is sustainability a business strategy than can transform marketing practice and begin the process of rebuilding trust? Sustainability, for the purpose of this article, is the management of an organization’s performance in service of financial, social and environmental objectives, with the intent of meeting “the needs of the present without compromising the ability of future generations to meet their own needs.” (Brundtland World Commission).

Transformed marketing is the emerging model of marketing practiced by high-integrity organizations, a subject I wrote about in The Transformation of Marketing. The relationship between transformed marketing and sustainability depends on the ultimate goal of both initiatives – for businesses to operate profitably in ways that create benefit for many diverse stakeholders.  In early stages of sustainability adoption, however, this shared interest may not be quite as evident. As engagement with sustainability deepens, the qualities of transformed marketing begin to appear.

What are the Stages on the Road to Sustainability?

The notion that organizations implement sustainability in stages of increasing engagement is held by a variety of consultants and thought leaders.  The Leadership of Sustainability, a study authored by Pat Hughes, (to which I was a contributing analyst) offered a five-stage model of sustainability development based on interviews with leaders from diverse companies. The five stages in that model were:

• Stage 1: Values (Awareness) Develop the will to take action.
• Stage 2: Action (Experimentation) Begin with a single project or experiment.
• Stage 3: Deepen (Systems Thinking) Explore implications of sustainability for all operations and decisions.
• Stage 4: Sustain (Resource Commitment) Commit to comprehensive plan with resource allocation (management focus, money), tracking and reporting.
• Stage 5: Learning and Advocacy (Sharing) Leadership and advocacy in industry; continuous learning.

Since the publication of The Leadership of Sustainability, at least two other staged models have been published highlighting different aspects of organizational engagement with sustainability. Peter Senge’s organization offers a model that describes the emerging “drivers” that push organizations deeper and deeper into engagement. Avastone Consulting offers a model that describes similar stages of engagement from the perspective or organizational perspectives or “mindsets.”

While not in exact agreement, these three models offer a surprisingly congruent picture of increasing degrees of intention and engagement.

Marketing’s Transformation on the Sustainability Road

Each stage of engagement with sustainability presents its own marketing challenges and opportunities. See Diagram. Large Format PDF Early engagement with sustainability is focused primarily on operational and administrative changes that reduce waste and conserve energy. The primary goal of most companies in the early stages is to save money.

At the Awareness Stage, marketers become conscious of consumer interest in “green” products and the role of environmental and social issues in purchase decisions. There’s also increased interest in cause-related promotion events that may have an environmental or social justice focus.

At the Action Stage, companies’ experiments with sustainability may not yet translate well into promotional or brand messages. Still, marketers begin exploring how to leverage the value of these experiments for marketing purposes.  They start to explore “green marketing” techniques (those tactics that have an environmental impact) and  eco-branding (building environmental values into brand image). They may explore the process of publishing sustainability reports, and take more concrete steps toward refining product/service line value propositions based on social, environmental factors. At this stage, they are also concerned about accusations of “green washing,” in which companies are accused of promoting superficial efforts of sustainability merely for their image/PR benefits.

At the Deepen Stage, however, both the organization and its marketing team are invited into the initial stages of what may lead to deep change. At this stage, the leaders we studied began to see the interconnections between their operational waste and energy strategies and “everything else.” They started to see the impact of such changes on their vendors or suppliers.  They began to see the potential response from community partners. They start to see the opportunities for collaboration in the community and industry to accomplish sustainability goals. According to other models, at this stage, companies also begin to see the opportunity in developing entirely new business strategies that integrate sustainability. Here we see a form of stakeholder marketing start to take hold as companies realize they have to manage increasingly deeper levels of conversation with the community, vendors, suppliers, and industry colleagues, not to mention  customers.  New business opportunities begin to emerge as companies realize consumers’ interests in seeing social and environmental criteria integrated into the company’s core products and services.

As a result, marketers who step up to the challenge may find themselves with new opportunities to lead conversations about the redesign of products/services for social, environmental factors and articulation of new pricing strategies.  Design and pricing conversations lead invariably to engagement with standards and certifications that assure truthfulness in marketing claims. As they begin to appeal to customers with sustainability oriented values, they’ll also be challenged to re-evaluate marketing tactics that are perceived as coercive or intrusive. And as companies grapple with multiple stakeholders and holding financial, social and environmental values simultaneously, they may determine that the metrics they’ve historically used are no longer adequate.

The Shift from Technical Change to Adaptive Change

As companies and their marketers continue to deepen their engagement, the changes that they are asked to make move from technical change to adaptive change. In technical change, we don’t fundamentally alter how we work. We add knowledge; we make incremental improvements in what we are already doing; and we stick basically to the strategies we’ve been using.

On the journey to sustainability, as in the path to transformed marketing, there’s a point where we are asked to begin to think differently about how we work.  Fundamental assumptions are challenged. We embark on new initiatives and enter new territory where few have gone before us. We have to take risks and learn together.

At the Sustain level of engagement, for example, marketers that have never before had to account for externalities in their pricing or product design strategies must now reframe the entire cost/value proposition of products and brands. An externality is a cost that occurs as a result of a commercial transaction that is not directly paid for at the time of purchase (the cost of waste disposal of an obsolete machine is one such externality).

Embracing the rationale for why companies should account for externalities is the right thing to do is a radical reframe of the role of the business for many. At this stage, companies also commit resources to developing strategic partnerships and fostering internal and external collaborations that bring additional expertise to bear on specific tasks.

At the Learning/Advocacy stage, companies are beginning to hit their stride in sustainability and are thinking about their businesses in fundamentally different ways than they did at the beginning of the journey. Sustainability is not something they “do,” it’s part of their core identity. As a result, marketers are often engaged in processes to rebrand and reposition the firm and its offerings in light of this full commitment. Additionally, companies are increasingly seen and act as thought leaders in their industries – advocating for sustainability practices, and sharing knowledge about their experiences.  Creating open standards and sharing expertise, rather than protecting company secrets for competitive advantage, is one of the adaptive challenges  of this stage.

Arriving at Transformed Marketing

At the Deepen, Sustain and Learning/Advocacy stages, we see an acceleration of change that results concurrently in transformed marketing. Changes that took place prior to these stages were necessary precursors to the adoption of transformed marketing. These changes raise the three key issues we previously outlined in The Transformation of Marketing:

Embracing a Systems Perspective – Companies began to embrace a systems perspective at the Deepen stage. An emerging web of relations and interconnections – in customers and markets, in the dynamics between community groups and strategic partners – continues to unfold for them as they gain experience.

Creating Social Good – By this stage, sustainability is less about something the firm does to make money, and has become more a way of life. The intrinsic value of building social good into the purpose and mission of the organization has become self-evident.

Living the Brand – The alignment of values, strategies and operational practices has advanced much more deeply, and as a result the company’s brand and image has authenticity and integrity. Trust is often a core brand value, and the company’s promotional practices are measured against that value.

At this stage of engagement, the coercive, intrusive, unethical and wasteful practices that undermine marketing have been eliminated by engagement with the values of sustainability. Additionally companies have cultivated relationships with stakeholders that allow for timely feedback on whether company practices are compromising brand promises or shared values. This feedback allows the company to self-correct more quickly and restore balance and integrity to its marketing practices.

The Road Less Travelled

The current business and political interest in sustainability makes this path toward the transformation of marketing likely the road more travelled.  Some companies that currently practice high-integrity marketing did not get there via sustainability, but rather through an ethic of care for all people they touch in their day to day interactions.  As I wrote in The Transformation of Marketing “we are fortunate in this time that research… is confirming their collective hunch that a seemingly radical commitment to marketing that works for all also turns out to be a good way to make money. “

As always, we invite your comments, experiences and stories. Please write to us.

See the related article: Fulfilling Sustainability’s Potential: Growing the Top Line – about the role of marketing in creative strategic sustainability innovation.

What their clients needed to see was a year-by-year picture of what would happen if they adopted a certain strategy. Without over analyzing the situation, the consulting organization started putting together spreadsheets that showed the relationship of the personal and business assets. They compared scenarios and showed the year by year comparison stretching out in time to retirement and beyond.

The consulting organization was so focused on the solutions they were proposing, they didn’t at first recognize the value of their spreadsheet tool.  It took some customer research during a strategic planning process for them to realize how much clients valued the financial models they created.

The financial models were what we call a “pearl” that had formed in the organization. The frustration they felt over clients’ inaction was like the irritating grain of sand that enters the oyster and eventually becomes the pearl.  The organization responded to the irritation by creating a new tool.

Upon discovering this pearl they had created over 15 years ago, the company was able to use it as the basis of a national expansion into new markets.  This pearl has been a consistent source of strategic advantage as their business has evolved through many market changes and economic cycles.

This is what we call a “stumble upon” strategy. It’s something already present in the organization that is working well. However, in many organizations the lenses through which members see their own organization are different than the lenses through which their customers see them.

What is the pearl that’s hiding in plain sight in your organization?

By Kathleen M. Hosfeld

The phone rings at our house on any given evening. A member of our family looks at the caller ID. “It’s Evans Glass,” he or she calls out to the rest of the house. The call goes unanswered. This is one of between four to 10 calls we receive from Evans Glass each week. We made the mistake once of talking to someone going door to door offering estimates for window replacements. When we found out that the estimate process would take two hours, we said, “No, this isn’t what we want.” We asked that they not contact us again. They have continued to call. And call. And call.

This is one of the practices that have led to another kind of call – a call to “reform” marketing. These and other common marketing practices “work” for companies – they do result in sales. However, research shows that there’s a long-term consequence associated with intrusive and coercive tactics: cynicism and resistance on the part of consumers. Studies by the American Association of Advertising Agencies and Yankelovich show that from 1964 to 2004, the number of people who say their feelings about advertising have become negative grew from 15% to 60%. Forty-five percent of consumers say that the amount of advertising they are exposed to every day detracts from their experience of everyday life (Yankelovich). Yet, companies are spending more to overcome resistance, doing more of that which created the resistance in the first place. This is a vicious, self-perpetuating cycle.

What’s to stop it? Some believe that more regulation is the answer. While regulation and public policy always play an important role in systems change, a change from within – a transformation – will ultimately reach parts of the system that regulation can’t touch. Pioneering firms have been blazing this trail for almost two decades and research is starting to show that companies that take a higher road are achieving higher returns as a result (Studies by Sisodia, Raj, Jag Sheth, and David B. Wolfe in 2007; Sully de Luque et al. in 2008; Kearney in 2009).

The Emerging Model

Consider this article an introduction to a much wider conversation about how pioneering firms are transforming marketing. To start that conversation, I’m offering a 50,000 foot level management perspective of the model of marketing that is emerging as an alternative to the vicious cycle described above. This includes sustainability and the triple-bottom-line, but this is not a model of sustainability marketing per se. It’s meant to suggest a model of marketing that is emerging in companies who have made sustainability a way of life and are continuing to evolve. I have avoided references to tactical execution and, for now, case histories. I’ve avoided elements that might be more appropriate for specific industries (hard goods manufacturers), and tried to synthesize elements that are universal to all firms.

In working with clients, I often translate assessments into “Key Issues” for the sake of simplifying what must be addressed to accomplish their objectives. Key Issues are sheltering wings under which a variety of other issues or factors can find a home. In the following diagram and text, I frame three “Key Issues” for transforming marketing, and some (but not all) of the factors they represent.

A Fundamental Assumption: The most important difference between companies that are transforming their marketing practice is their interpretation of the purpose of marketing. In traditional practice marketing is about “selling stuff.” This follows the perception of the purpose of the business, which is to create profit. In firms that are transforming or have transformed marketing, marketing is about creating value for stakeholders – not as a means to an end (profit) but rather as the end in itself. Within this shift, profit is the measurement of how well the organization is achieving that end.

Embracing a Systems Perspective - A competence required for this emerging model is the ability to navigate complexity and engage with diverse, complex, adaptive systems. In transforming marketing, this includes issues such as:

Adopting a Multi-Stakeholder Orientation – In transformed marketing, the organization enlarges its focus from stockholders to stakeholders who include investors, employees, customers, partners and society. The intent is not to “manage” stakeholders but to serve them.

Cross-Functional Collaboration – In the traditional paradigm, marketing is frequently siloed and given increasingly tactical focus. In transformed marketing, value creation for stakeholders (marketing) is everyone’s job and requires cross-functional collaboration across departments – finance, human resources, manufacturing.

Industry Collaboration and Partnerships – Organizations transforming marketing are not isolated competitors seeking dominance and hoarding information. Rather they participate in industry collaborations to advance standards or other initiatives for the benefit of stakeholders.

Reclaiming the Marketing Mix – In traditional practice, marketing has increasingly focused on sales and promotion due to an emphasis on measurement. Organizations that are transforming marketing seek to maximize stakeholder benefit through all aspects of the marketing mix (product, price, promotion, distribution/sales). These marketing decisions may not take place in the marketing department per se but through cross-functional collaboration.

Creating Social Good – A radical departure from serving simply the profit motive, to one that says profit is the measure of how much value or benefit the firm creates for stakeholders. This includes issues such as:

Purpose and Culture Founded on Ethics and Responsibility – There’s a constant focus in these organizations around “doing the right thing,” which begins with purpose and a culture that supports ethical action.

Defining Success Beyond Profit – Financial measures are insufficient determinants of success for many organizations who care deeply about their impacts on the environment, on customers, on employees, vendors and more. Whether it’s two, three, four or more “bottomlines” – transformed marketing evaluates success in more than financial terms.

Organizational “Calling” – Those practicing transformed marketing are guided by goals that serve a shared understanding of the organization’s “calling” or intent to create stakeholder (or world) benefit.

Sharing Power in Exchange Relationships – Transformed marketing seeks to create partnerships with stakeholders in which power is shared. This capacity separates these organizations from those that are merely well intentioned, yet feel entitled to cajole customers into decisions that are “good for them” or to “sell what we make” without meaningful input from the customer or market.

Living the Brand – From one perspective brands are “perceptions” that are created to influence purchase decisions. In organizations practicing transformed marketing, however, the brand IS the company, and the company lives the brand. It’s not perception. It’s reality. Branding campaigns seek to create awareness of that reality, not to create it virtually. Elements of this include:

Brand Rooted in Clear Differentiation Strategy – In transformed marketing the brand is rooted in a solid business model that articulates a long-term strategy for creating value for stakeholders distinct from that of other firms. By contrast, head-to-head competition or competition on perception alone reinforces the vicious cycle of promotion to compete, leading to ethical “trade-offs”, and a firm-centric view.

Operations Aligned to Fulfill Brand Promises – The “operational side of branding” means taking the brand deeply into every aspect of the organization. This requires translating the implications of the brand for the day-to-day functions of departments. Representative questions to ask in this process include: What type of person should we hire to reflect the brand values? How does the brand change what our office looks like? How do I need to share information with other departments in order to help them live the brand?

Commitment to Stakeholder Benefit - The “right thing to do” in a transformed marketing environment is a radical commitment to making sure all aspects of brand execution translate into benefit for stakeholders. This includes ongoing reflection and action concerning methods of creating products/services, their features and benefits, the materials they use and the transparency with which the supply chain is managed.

Continuing The Conversation

Although the era of sustainability shines a brighter light on companies who practice marketing in this way, many companies – including ours and our clients’ – have been marketing in the spirit of the emerging model for years if not decades – long before frameworks for sustainability or the triple bottom line were as accessible as they are today. As more organizations adopt social enterprise models and similar forms that blend mission and revenue creation, transformed marketing offers an approach that better fits their values.

Many of the companies who have been pioneering in this model have done so based on the intuitive conviction that it was simply “the right thing to do.” We are fortunate in this time that research, including the studies referenced above, is confirming their collective hunch that a seemingly radical commitment to marketing that works for all also turns out to be a good way to make money. Many today are trying to approach the triple bottom line from a single-bottom-line perspective. Perhaps now there’s enough empirical research to encourage such firms to explore this emerging model more deeply.

There are many stories to tell and many interrelated ideas to unpack as we continue our own exploration. We’d love to hear from you about your experiences, ideas and questions.

Google Profiles, which are free to set up, are indexed by the Google search engine. When an individual searches for your name, your profile will be one of the items the search returns. More than a bio, the profile is a chance for you to optimize for the issues and subject areas you want to be known for.

Questions to ask yourself as you are preparing to complete your Google Profile:

1. What subject areas are my passion and areas where I want to be considered an expert?
2. Where do my areas of passion and interest overlap with the market’s needs and interests?
3. What articles or publications have I authored that are part of those subject areas discovered in questions 1 & 2?
4. What Web sites am I associated with that support or reflect my areas of expertise?
5. Do I use terminology to describe myself or my work that others might not understand? Is there a way to explain your terminology concisely or use “generic” language that connects with a broader audience?

For my own Google Profile, I wanted to emphasize my work in developing high-performing marketing strategies that are also ethical and support the values of sustainability. As a result, I’ve included links to papers that I’ve written, Websites where I post information and our blog.

One of the Google Profile fields asks you to name your “superpower.” Although this sounds like a frivolous question it’s actually another opportunity to convey your branding. “Interests” is another area in the profile to include keywords.  My Google Profile is focused strictly on my work so it includes only those interests. Take a look here or Google me: Kathleen Hosfeld and look for the Google Profile link.

Asking yourself what you want to be known for is another way of considering your legacy, and the how you want to change the world. Let us know what you come up with!

Additional Information:
Here’s a video “how to” on optimizing your Google Profile