Purpose-Driven Marketing: Is it an Essential Strategy for your Brand’s Success?
Do you believe that effective marketing and genuine purpose can truly go hand in hand for your brand?
Business ethics and social responsibility have been under discussion since the 1950s, but only in the last few decades have they truly come to the forefront of corporate discourse—and rightfully so. Every business is inherently connected to the society it serves, driven by the needs and desires of people. While it may seem surprising that the focus on corporate social responsibility wasn't stronger earlier, today it's clear that these responsibilities have shifted from optional to essential, influenced profoundly by regulatory changes, investor demands, and a significant rise in consumer interest in brands that demonstrate genuine purpose. This article examines how these forces are reshaping marketing strategies, making social responsibility not just beneficial, but indispensable for businesses aiming to thrive in a competitive market.
The Shift in Consumer Expectations
86% of US consumers expect brands to act on Social/Environmental issues!
In 2017, a US based communications company, Cone communications, conducted a now well talked about CSR study with more than 8000 US consumers. Apart from multiple takeaways from the study related to changing consumer behavior pattern regarding the environmental/social responsibilities of brands, the study revealed that 87% of consumers said they’d purchase a product because a company advocated for an issue they cared about, and more than 75% would refuse to purchase a product if they found out a company supported an issue contrary to their beliefs.
It might sound like purpose-driven marketing is a brand new thing, on the contrary it has been part of brand building for ages. In fact, it can be traced back to as early as the start of modern-day businesses in the early 1800s, when Rowntree's, the company behind Kit-Kat, leveraged their ethical principles to promote their brand through advertising. The Rowntree owners took a paternalistic approach, offering decent housing, education, and medical services to their employees. As the company grew, Joseph Rowntree made considerable efforts to ensure that his business was, in his words, "united by a common purpose."
The movement faced a significant decline after the Great Depression, when profitability became the primary focus for most brands, and purpose was primarily advocated by non-profits. This separation between profit and purpose remained pronounced throughout the 1970s and 1980s, influenced by Milton Friedman's doctrine that a business's main objective was to maximize profit. During this period, purpose-driven campaigns were largely executed by non-profit organizations rather than commercial brands.
In the late 1980s and 1990s, environmental issues began to attract widespread attention. Brands like The Body Shop and Patagonia led the charge in aligning themselves with sustainability. This era also saw the notion of purpose expanding beyond social causes; for example, Volvo established its brand around the purpose of enhancing driver safety.
Entering the 2000s and 2010s, purpose became a central theme in marketing. Brands started to realize the commercial benefits of authentic purpose-driven initiatives, and consumers grew more conscious of the societal and environmental impacts of businesses. Studies indicated that brands with strong purposeful positioning experienced notable value growth compared to those lacking a clear purpose.
From the 2010s onward, the approach to purpose evolved into a continuous, comprehensive strategy. Brands are increasingly expected to address social issues and act as catalysts for change, with a heightened emphasis on backing their purpose-driven messaging with tangible actions and long-term commitments. This shift aims to forge deeper connections with consumers by resonating with their values, as younger generations, in particular, demand that brands tackle social and environmental challenges.
In the current landscape, a clear and genuine purpose is no longer a mere option for brands. It has become essential for ensuring the future prosperity of both businesses and the planet, fostering a symbiotic relationship where both can flourish.
Purpose-Driven Marketing: Impact on Business Growth
Not a mere ‘ethical’ topic to discuss, but purpose-driven marketing has proved time and again its positive impact on businesses by aligning a brand's values with those of its target audience, which fosters deeper emotional connections and trust. This approach has resulted in higher engagement and conversion rates. Some of the biggest pioneers of purpose driven marketing are major brands like Patagonia, Dove, Vagabond Shoes, etc.
Patagonia, for instance, engages its audience through campaigns that focus not only on product advertising but also on providing beneficial content and products. McLaughlin (2018) notes that Patagonia's campaigns educate, motivate, and assist people in recycling clothing and adopting a more conscious lifestyle Their approach to branding and marketing is a departure from the conventional norms of the industry. Notably, their marketing efforts have become iconic examples of sustainability, environmental activism, and anti-consumerism in action, reshaping the way the world perceives marketing strategies. But how does it impact its sales?
In 2011, Patagonia's "Don't Buy This Jacket" campaign, which encouraged consumers to consider the environmental impact of their purchases, led to a 30% increase in sales
The company's consistent commitment to sustainability has contributed to its growth from $20 million in 1990 to over $1 billion in annual revenue by 2017
It is evident enough that Purpose is the new competitive differentiator for a brand. In Deloittes 2019 study they found that “brands that commit to purpose are gaining that competitive advantage. When we polled 1,099 global executives, we found that high-growth brands (those with 10% or more annual growth) are translating purpose into action in markedly different ways from their lower-growth peers: They are looking at purpose more holistically. These holistic purposes are capturing a new kind of growth, one that is more equitable and inclusive across all stakeholders while tied to issues people truly care about.”
So now that the 'why' is clear, let’s look at how to take the first steps for purpose-driven marketing?
Step 1: Understand Your Impact
Assess Your Supply Chain: Begin by evaluating where your materials come from and understanding the entire supply chain. Analyze the socio-economic impacts associated with your operations.
Identify Impact Areas: Pinpoint key areas where your brand can make a significant difference, such as sourcing, labor practices, and environmental footprints.
Step 2: Align Brand Purpose with Impact
Define Your Purpose: Clearly articulate what your brand stands for. This should resonate with your core values and the impact you aim to achieve.
Set Impact Goals: As a fashion brand, for instance, you might set goals like uplifting workers in your supply chain, reducing the carbon footprint of your packaging, and minimizing plastic usage.
Step 3: Leverage External Resources
Partner with Organizations: Since resource allocation can be challenging, especially for smaller brands, identify and collaborate with organizations that can facilitate your impact initiatives.
Choose Strategic Partners: Look for on-the-ground or impact organizations that align with your brand’s values and can effectively manage specific projects.
Step 4: Commit to Transparency
Communicate Regularly: Keep your customers informed about your efforts and progress. Regular updates can build trust and reinforce your brand’s commitment to its purpose.
Utilize Various Channels: Employ a mix of communication channels such as social media, newsletters, and your website to reach different segments of your audience.
Step 5: Stay Regulation Compliant
Understand Legal Requirements: Keep up-to-date with the regulations and laws that affect your business operations and marketing practices.
Implement Compliance Measures: Ensure that all your practices not only align with your brand's purpose but also adhere to the required standards and laws.
Final Step: Evaluate and Adapt
Monitor Performance: Regularly assess the effectiveness of your strategies in meeting your goals.
Adjust Strategies as Needed: Be prepared to make adjustments based on performance data, customer feedback, and changes in the regulatory landscape.
If your brand has yet to embrace purpose-driven marketing, rest assured, it’s not too late to start. The present moment is always the right time to align your business with meaningful and impactful values. What’s essential is a sincere and genuine commitment to fostering a thriving planet alongside thriving humanity. In our upcoming article, we will provide a detailed guide on how to incorporate a practical purpose driven marketing strategy effectively. Until then, please feel free to reach out to us with any queries. Also, to learn more about our initiatives and how you can participate, explore more about Janah Cycle here.
Start today, and take a definitive step towards not just growing your brand, but also making a significant positive impact in the world.
This article takes references from the following:
Brand Purpose Evolution From Single Event, To 360° Change Agent. Retrieved from Forbes website:
New Report Reveals 86% of US Consumers Expect Companies to Act on Social, Environmental Issues. Retrieved from Sustainable Brands website
The history of purpose in advertising Retrieved from Business Reporter website
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