Jan 24 2009
New Era of Responsibility…In Marketing?
In his widely praised inaugural address this week, President Barack Obama called for a "new era of responsibility." Citing the importance of emphasizing "values" and a "spirit of service," the president characterized this new focus on responsibility as the "price and promise of citizenship."
I applaud President Obama’s call for responsibility and service from all Americans, who have real skin in the game in restoring our economy and our place in the world. But, the president was also making the same call to institutions in America, especially businesses, which have not always lived up to the sense of responsibility and hard-won values that Mr. Obama described.
That got me wondering. In the face of the worst recession since the Great Depression, will businesses embrace President Obama’s call for greater responsibility, more service and a return to values? And, will this new era of responsibility manifest iteself in the marketing we will be seeing and experiencing in the months ahead?
Now, I am not just talking about Anheuser Busch running yet another tearjerker Clydesdales commercial on the upcoming Super Bowl telecast. Sure, the Clydesdales spots represent some nice old timey American values, but they are not really demonstrative of a shift in how business takes responsibility and adheres to values and a sense of service. How marketers make, sell and service their products and services is utimately the true test of whether or not they are living up to the vision advocated in President Obama’s address.
There is talk in our profession these days about so called "recession marketing," which refers to how marketers are tuning their sales pitches to harmonize with the bleak mood of many consumers as a result of the severe recession. In fact, some marketers even see the recession as an "opportunity." For example, Kraft is encouraging people to dine at home (with lots of Velveeta, presumably), because folks don’t eat out as much in a recession. And, Campbell’s Soup is going gangbusters selling their wholesome and high value products. Nothing wrong with that.
Some of these "recession marketing" pitches work, but others are questionable. Hyundai was very smart recently to make the offer that if you buy one of their cars and then lose your job in the next year, they will let you return it. (This clever message is from the company that brilliantly counteracted its low quality image by offering the industry’s first 10-year warranty.)
A less successful ad from NetZero (the discount Internet service provider) has the company’s CEO saying that Americans could save billions of dollars if they just switched from broadband to dial-up. Huh?! Sure, a consumer would save money by switching back to dial up, but that is just not going to happen. Once one makes a fundamental technological shift, like adopting broadband, switching back to the older technology would be akin to using a rotary dial phone again. That kind of consumer generational shift just doesn’t happen in real life. Heck, we’re not going to travel by horse and buggy again just because it is a cheaper and more energy efficient mode of transportation!
Still, this focus on "recession marketing" does not even begin to get to the new era of responsibility and values that the president underscored in his speech. Here are just a few suggestions for marketers to consider if they want to truly embrace the spirit and substance of the president’s inaugural call:
- Make material changes to the transparency and fairness of consumer contracts, warranties, etc. Business too often tries to pull the wool over consumers’ eyes. But, progressive companies that let in the sunlight and become real consumer champions (in word and deed) can win and differentiate themselves, even in a recession.
- Give something back to the community, and don’t just do it in a fleeting, "cause marketing" campaign. Starbucks is getting major kudos (justifiably) for its big new community service initiative. Oprah applauded the program and it took off big time. But, I recently noticed a local SF Starbucks getting picketed for not paying living wages to construction workers who refurbished their stores in that city. You’ve got to be consistent in your serivce and responsibility actions — walk the walk and talk the talk.
- Step up and pay health insurance benefits (here is an area where Starbucks has long been lauded, as they paid health insurance even to part time Baristas). Businesses should also expand their activities in supporting the critical efforts to reform healthcare. That is a highly responsible activity that will benefit everyone, including the businesses themselves.
- Take more responsibility in terms of consumer and worker safety and wellness. If you are a marketer, you’ve got to take more responsibility for how your products and services impact your consumers. A fast food brand that shifts a lot more of its products to healthy, lower calorie offerings is taking real responsibility. And, they are also getting credit for it in the marketplace.
- Adopt green initiatives that are ongoing and substantive. Don’t just jump on the bandwagon with marketing spin that touts your environmental responsibility. Wal-Mart has made some very smart moves to lessen its carbon footprint. They realized that doing the smart thing to save energy would also be the right thing for the environment and people in general (their customers!).
- Don’t push products (especially financial products) on people who can’t afford them, and should not be using them. Of course, this was the catalyst of the massive sub-prime mortgage mess and then the housing collapse, which triggered the global recession. There was a profound lack of responsibility on the parts of financial institutions, real estate professionals, mortgage brokers, pretty much everyone in the mix. And, consumers also have culpability here for not being responsible in managing their own finances. If you can take out a mortgage and buy a house, you are by definition not a child. You should know what you are getting into, and be able to afford it.
A new era of responsibility, service and values — if truly embraced and implemented by businesses — would usher in a new era of marketing success. They really do go hand in hand. And, that would be a strong antidote to the current recessionary economy that is the bane of us all.


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