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
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