Byravee Iyer
Jun 11, 2013

Marketers underestimate the Asian consumer's commitment to doing good: WFA

ASIA-PACIFIC - Marketers underestimate the extent to which consumers say it’s acceptable for companies to support good causes while making money, according to a study conducted by the World Federation of Advertisers (WFA).

Marketers see 'purpose' as an opportunity but do not fully understand consumer attitudes to it
Marketers see 'purpose' as an opportunity but do not fully understand consumer attitudes to it

Research by Edelman in 2012 revealed that 76 per cent of consumers agreed that companies can make money while supporting good causes. But when WFA recently interviewed 149 marketers from more than 40 countries, the marketers estimated that only 56 per cent of consumers would agree with that statement.

The biggest difference between the two responses can be found in marketers’ perceptions of which region’s consumers are most motivated by purpose. When asked which region has the greatest proportion of consumers who say they make purchase decisions based on good causes, 58 per cent of marketers chose Europe and 36 per cent chose North America. Only 5 per cent picked Asia. However, Edelman’s research showed that emerging markets including China, India, Brazil, Indonesia, Malaysia and the UAE are the most purpose driven.

This could be because of a greater sense of community in emerging markets, said Rahul Welde who is vice-president, media, Unilever, as well as WFA’s Asia-Pacific chair. “There is a desire to succeed and to grow but the nature and drive for growth generates community collaboration where people value overall upliftment,” he added.

There’s also a wide gap between consumers and marketers when it comes to defining ‘purpose’. Marketers surveyed, who represent 58 companies accounting for US$70 billion in ad spend, believe that ‘purpose’ includes programs that positively impact communities and protect the environment. 

While these are important, consumers don’t consider ‘purpose’ in quite the same way. For consumers, ‘purpose’ is defined as something more holistic and is based on every touchpoint an individual encounters with that brand or company. This includes ‘listening and acting upon customer feedback’,  ‘ensuring good employee welfare’ and 'placing consumers ahead of profits'. The study adds that brands need to start with the basics and sales, CRM, HR and other departments. “Marketing can then be the conductor that delivers a message imbued with brand purpose and that message is authentic and it’s not just rhetoric. It pervades the entire organisation, starting with the CEO,” the study stated.

When quality and price are the same, social purpose is the most important factor for purchase. Compared with 2010, this has grown 100 per cent in Japan, 79 per cent in China and 43 per cent in India. What's more, the proportion of consumers who say they buy a brand that supports good causes at least once a month has grown from 32 per cent in 2010 to 47 per cent in 2012. 

According to Welde, social purpose needs to be embedded in companies' missions and plans. Apart from Unilever, he believes Starbucks, with its emphasis on the environment, and Diageo’s Johnnie Walker brand, with its positioning of responsible drinking, are good examples of this.

Welde attributes the importance of ‘doing good’ to the growth of digital media. “The level of transparency is much higher,” Welde said. “Good news and bad news travel fast and wide, and consumer feedback will continue to grow.”

Still, while 88 per cent of marketers said ‘purpose’ is important, less than half (49 per cent) believed they worked for brands with a sense of purpose, while even fewer considered they had been successful in communicating ‘purpose’. Most of the marketers interviewed felt that it was relatively new to talk about ‘purpose’ as a part of brand marketing communications.

Source:
Campaign Asia

Related Articles

Just Published

55 minutes ago

40 Under 40 2024: Mamaa Duker, VML

Notable achievements include leading VML through a momentous merger, helping to reel in big sales, and growing WPP’s ethnic and cultural diversity network by a mile.

1 hour ago

Will you let your children inherit a world without ...

A raw, unflinching look at the illegal wildlife trade, starring Ray Winstone, will force you to confront the horrifying truth... and act.

2 hours ago

Campaign CMO Outlook 2024: Why marketers still want ...

In the second part of the Outlook series, global marketers weigh in on Amazon Prime’s move into ad-tier streaming, how video-on-demand will reshape strategies, and where it's still falling short.

4 hours ago

Jaguar's identity crisis: A self-inflicted wound ...

Jaguar's baffling attempt at reinvention from feline grace to rock-based abstraction is a masterclass in brand self-sabotage, says Resonant's Ramakrishnan Raja—and it risks destroying the marque entirely.