CMOs gathered at the World Federation of Advertising’s (WFA) Global Marketer Conference in Brussels this week to discuss how brands need to offer a “social purpose” to grow revenue.
Speaking at the event, Kimberley Kadlec, vice-president of Johnson & Johnson’s global marketing group, said the company has introduced 4 new Ps – Purpose, Presence, Proximity and Partnership – into the marketing mix to reflect the popularity of social media, increased use of mobile and enhanced expectation among consumers that brands should offer more than just a product.
She added: “Purpose augments price and value trumps price. Also, you need to have a broader presence in the digital age. Proximity – the new place is every place – and partnership, the wisdom of crowds, how can marketers bring customers together to create value for them”.
“You need to go back to basics. How do we add value?…..If you add value you really will grow your business.”
Martin Riley (pictured), the new WFA president and CMO of Pernod Ricard agreed that there is a need to rethink the traditional approach to the marketing mix.
He told journalists at a briefing: “Marketers need to build reasons way beyond price [because there is so much competitiveness and transparency] what is it that is going to make you feel good about that brand? If you don’t have a reason why, then you commoditise brands, you add purpose then you make people choose your brand.
“Transparency over price, rather than being a bad thing can be a good thing as it will force marketers to offer a more holistic reason why you should choose their brand.”
CMO of AB Inbev Miguel Patricio told Marketing Week that although it is essential for brands to have a purpose, they shouldn’t stray too far from the fundamentals of marketing.
“My view is perhaps a bit more pragmatic…..The role of marketing is to sell more. Period. Good marketing is the one that sells more. To produce good marketing you have to do a lot of things. The idea that there are new Ps [in the mix] is the case but at the end of the day the world is the same – the essence of marketing is still the same. Does it sell?”