Bridging the gap between marketing and policy - Towards greater collaboration and alignment to help companies meet changing consumer expectations ...
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World Federation WFA of Advertisers Bridging the gap between marketing and policy Towards greater collaboration and alignment to help companies meet changing consumer expectations wfanet.org
Contents Executive Summary 2 Introduction 4 How do marketers and policy teams interact today? 6 Perceptions across the divide: “lawyers vs. dreamers” 7 Barriers to greater co-operation 9 Future areas for collaboration 10 Conclusions 11 Executive Summary The 2019 Edelman Trust Barometer shows that society expects business to take the lead on key political and social issues. WFA, with input from Edelman, sought to research whether marketing and policy teams are working together to meet society’s changing expectations. Ninety-seven marketers and policy experts (50 in marketing and 47 in public affairs) representing 50 WFA member companies and a collective global marketing spend of over US $60 billion, responded to an online survey in February 2019 on the dynamics of their relationships. 2
The Good There is a sense that both sides want to work more closely together, with nearly nine in ten policy executives (87%) saying they hoped the two teams will interact more in the 89% future, while more than two thirds of marketers (69%) feel marketers agree it the same way. will be increasingly Nine out of ten marketers (89%) also agreed that it will important to take input from policy teams be increasingly important to take input from policy teams in light of society’s changing expectations as identified by Edelman. The Bad Sixty-five percent of policy executives polled said they felt there was too little interaction between the two teams today, a view supported by 43% of marketers. Policy Executives Marketers A majority of marketers (54%) also feel policy professionals do not understand the challenges they are up against. 65% 43% Policy professionals feel misunderstood to an even greater extent, with 76% of policy respondents stating that marketers do not understand the challenges they face. Marketers welcome some input from policy teams on brand positioning, but few see it is as essential. While 17% said input is essential, a far greater number said some input was welcome (31%), while others (37%) felt there was too little interaction between the two teams said it could be helpful at times but wasn’t crucial. 3
Introduction: People look to business to lead We live in turbulent times, marked by an unhappy and uncertain public, a media culture prone to disinformation, a business environment facing disruption, and populist governments in power. People around the world are re-evaluating their expectations of the institutions that have traditionally exerted power and influence – from the individual consumer to the multinational organization. The 2019 Edelman Trust Barometer, a study of more than For business, the fundamental mandate has shifted: 73% 33,000 people in 27 markets, found that just one in five believe that businesses can make money and improve respondents believe the system is working, and 70% of society at the same time. That means having a mission, the mass population desires change. a purpose that can energize customers, ignite passion While many people have turned to consumer activism in employees, attract the best talent and simultaneously and their own purchasing decisions to drive change, drive growth for investors. respondents nevertheless have high expectations that business will do its part. 75% of the general population trust “my employer”, while 56% trust business and 48% trust government. As the most visible leader in any business, the CEO is seen as having a critical role in that conversation. 76% believe CEOs should take the lead on change Seventy-six percent of respondents believe CEOs should take the lead on change rather than waiting for government to impose it, singling out issues ranging from pay equity (65%) to prejudice and discrimination (64%) to training for the jobs of tomorrow (64%). World Federation WFA of Advertisers 4
“Consumer and stakeholder expectations that brands will continue to invest in relevancy, including values and purpose, has never been higher. Delivering on this requires a whole-enterprise approach, especially joined-up thinking between marketers and public affairs professionals. In this new era of the belief-driven buyer, non-alignment between these two powerful sets of brand ambassadors presents a major risk to a company’s reputation.” Stephen Kehoe, Global Chair, Practices, Sectors & IP, Edelman Finding an authentic purpose is no simple task, and We do witness some involvement between policy and getting it right requires the involvement and buy-in marketing when it comes to determining brand strategy, of all functions across the business. not least because policy teams can help avert regulatory Marketing will play a crucial role in researching and scrutiny and unwanted press attention. promoting that purpose internally and externally, but But there is potential for far greater co-operation; the involvement of policy professionals is also a vital increased opportunities for the two functions to ingredient for success. Policy people are those most work together opens up the prospect of making more plugged in to policy-makers and society’s thought- powerful statements, of positioning brands to be the leaders and opinion formers, such as civil society agents of change that their consumers truly want to see groups, NGOs and academics. and cementing businesses as the deliverers of social These entities play a critical role in setting and swaying improvement and progress. public opinion very often in ways that traditional market research, which focuses on the bilateral relationship between brand and consumer, might fail to capture. Only when policy and marketing teams align will the message to the public and policy-makers be consistent, coherent and truly powerful. 5
How do marketers and policy teams interact today? Everyone would like to see more co-operation between policy and marketing but how often does it already happen? Our research finds that while there is already a considerable degree of collaboration between the two functions, the potential and appetite for more alignment is significant. The degree of co-operation was perceived differently (although no one said they wanted less interaction), with just over one third of marketers (34%) saying they worked very closely with policy teams (53% agreed that they worked ‘somewhat closely’), compared to 62% of policy executives saying they worked closely with 87% 29% marketing teams. Sixty-five percent of policy executives polled said they felt there was too little interaction between the two teams, a view supported by 43% of marketers. More positively, there is a sense that both sides want 69% 28% to work more closely together. Nearly ninety percent hoped the two felt that policy teams would priorities are not (87%) of policy executives said they hoped the two interact more relevant to marketers teams would interact more, while more than two thirds of marketers (69%) felt the same. Importantly, only 28% marketers and 29% policy people Policy Executives felt that policy priorities are not relevant to marketers. Marketers Although, it might equally be seen as a cause for concern that almost one third of all respondents see the policy agenda as irrelevant to marketing. World Federation WFA of Advertisers 6
Perceptions across the divide: “lawyers vs. dreamers” Part of the problem is that many policy and marketing professionals see the other function as coming from another planet. The research highlighted a general sense that neither function truly understands the other’s priorities. There was, however, remarkable convergence in terms of the words both functions used to describe policy people. Policy executives felt marketers would describe them as “compliance Many marketers feel officers” (48%), “regulatory firefighters” (41%), “business 54% their policy colleagues don’t understand the partners” (41%), and “regulatory safeguarders” (41%). challenges they are They weren’t far off as those were the top phrases marketers up against. chose: 58% described them as “compliance officers”, 50% as “regulatory safeguarders”, 45% as “business partners”, and 45% as “regulatory firefighters”. Policy professionals feel misunderstood to an even 76% greater extent, with 76% of policy respondents “Making a very simple analogy here; the challenge is the same as ‘Men are from Mars, stating that marketers Women are from Venus’. It’s about getting do not understand the lawyers to align with dreamers.” challenges they face. Respondent in marketing “compliance “regulatory “business “regulatory officers” safeguarders” partners” firefighters” (%) How policy executives felt marketers would describe them (%) Actual responses 58% 48% 50% 41% 45% 41% 45% 41% from marketers 7
Marketers felt their policy colleagues would describe them as “business-focused” (71%), “risk-takers/boundary pushers” (58%), and “creative” (53%). In reality, 74% of policy executives described marketers as “business-focused”, 57% described them as “creative”, and 45% described them as “short-termist”. % of policy execs describing marketers as... 74% “business- focused” 57% “creative” 45% “short- termist” “The prevailing perception is that marketing is more creative and business-minded while the policy function is focused on compliance and regulation. But this can and should evolve; there is an opportunity for policy professionals to demonstrate the value they can bring to the business in more compelling and creative ways, positioning themselves as strategic advisors with unique insights which can contribute to bottom line growth.” Stephan Loerke, CEO, WFA It is worth noting that only 45% of marketers see policy executives as business partners and 34% as strategic advisors. For policy people to provide real added value to marketers, they will need to be considered as valued business partners who offer meaningful strategic advice. Generally, marketers welcome some input from “Policy teams have an enormous policy teams on brand positioning, but few see opportunity to transform their mindsets, it as critical. While 17% said input is essential, a from risk mitigation to opportunity far greater number said some input was welcome seizing. Their knowledge must be (31%), while others (37%) were even more cagey, exploited, aiming to give the company saying it could be helpful at times but wasn’t crucial. and brand a competitive edge.” But there are signs that these perceptions are Respondent in marketing changing as consumers start to demand that brands take the lead on key political and societal issues. In light of this, nearly nine out of 10 marketers (89%) 89% agreed that it will be increasingly important to take input from the policy team in order to meet society’s marketers agree changing expectations. it will be increasingly important to take input from policy teams World Federation WFA of Advertisers 8
Barriers to greater co-operation When we look at how policy teams are set up there is no single common structure. In fact, there are almost as many different reporting models as there were respondents. That means that the solution to encouraging greater co-operation will be different for different corporations. For example, about a quarter of policy teams who We asked marketers an open-ended question on what responded (26%) report directly to the board, the same they felt were the biggest barriers for greater co- percentage reported into corporate communications, operation between the two sides. Answers tended to 14% report into the legal team and just 2.4% report into focus on the difference in mindset and ways of working marketing. A further 31% had multiple reporting lines or between the two functions and the company’s internal different arrangements, such as reporting directly into reporting structures. the CFO. Many marketing respondents felt companies needed to create conditions for both sides to work together and have shared goals. “Policy teams should have cross functional reporting into marketing. Policy professionals were asked the same question, This would ensure better understanding but their answers tended to focus on a lack of shared language, goals, KPIs, priorities and opinions as the main of marketing goals, prevalent market barriers to co-operation. conditions and most importantly, evolving consumer behaviours.” Most policy experts agree that their agenda is hugely relevant to marketers but lament that too many Respondent in marketing marketers don’t understand their work, with 40% stating that marketers only call on them in moments of crisis. On top of cross-functional reporting, respondents However, an overwhelming 98% of policy respondents mentioned the added complexity of local versus global agreed they could do more to make their agenda reporting lines. Some respondents indicated that the more compelling and relevant to marketers. dynamic and tone for engagement would need to be set at executive level for it to be a reality at local level. “High turnover of colleagues in marketing roles, organizational structures, different languages, different KPIs, short-term goals and the policy team being seen as getting in the way of creativity and innovation are the biggest challenges.” Respondent in policy 9
Future areas for collaboration Over 65% percent of marketers responded that they could think of a time when the policy team’s involvement on a matter helped avoid regulatory scrutiny or unwanted press attention – underlining the perceived value that policy teams can deliver. Marketers were asked to state in which areas they felt there should be more dialogue between policy “It’s a matter of mindset but also and marketing teams. the organization needs to create the conditions for working closely together. The top five results: In my company we have created a special function of ‘CSR Brands Corporate reputation 80% Transformation’ precisely to co-create Responsible marketing 80% brand responsibility, vision and roadmap Data collection and privacy 74% (purpose, sustainable transformation, responsible marketing, etc.).” Brand safety 69% Respondent in marketing Risk management 66% Policy respondents agreed that responsible marketing (79%), corporate reputation (71%), and risk management (47%) were areas in which there should be more collaboration but also felt they could be contributing more to building stakeholder trust (63%) and brand purpose (50%). 51% of marketers agree that they should collaborate more on brand purpose, and 57% would like to work more closely on company purpose. 79% 71% 47% 63% 50% Responsible Corporate Risk Building Brand marketing reputation management stakeholder trust purpose World Federation WFA of Advertisers 10
Conclusions: Five steps that companies can take 1 Better alignment on targets, reporting and KPIs. Many marketers are driven by short-term KPIs but the benefits of smart policy-related actions are typically longer- term. Policy teams also need to better understand the goals of marketing, and cross functional reporting could help ensure they better understand their counterparts’ goals, market conditions and evolving consumer behaviours. “It is incumbent upon the business leader / CEO to set shared, functional goals between policy and marketing.” Respondent in marketing 2 Share strategic insights. Marketers focus on consumer insights while policy professionals derive their insights from a variety of stakeholders (press, policy-makers, NGOs, academics, etc) which can quickly set and shape the concerns of communities and society at large. These insights can be nuanced and predictive. Marketers would do well to try and build such insights into their marketing strategies and executions. 3 Work together to execute company purpose. Both sides agree that “responsible marketing,” and “corporate reputation,” are the top priorities for dialogue and collaboration. However, in light of point 2, and in order to meet society’s changing expectations for brands, businesses will need to offer opportunities for marketing and policy teams to collaborate and contribute as equals to defining, crafting and implementing brand and company purpose. 4 Create a programme for policy education. Respondents’ top three suggestions for highlighting the importance of policy to marketers are case studies from other brands (61%), better measurement of the impact that policy work can have (56%) and C-suite briefings explaining the compelling business need for policy engagement (54%). Others included internal presentations and workshops (49%) and ensuring heads of public policy work closer with CMOs (46%). 5 Don’t hope for change but take charge. The public expects business to take the lead on key political and societal issues. Heed the call of the 88% of marketers who agreed that it will be increasingly important for marketers to take input from their policy teams. 11
World Federation of Advertisers Brussels London Singapore Tel: +32 (2) 502 57 40 info@wfanet.org twitter @wfamarketers youtube.com/wfamarketers linkedin/company/wfa wfanet.org
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