Brand vs. Company Purpose - What's The Difference?
Brand Purpose vs. Company Purpose - What's The Difference?
In our recent post, 4 Steps To Finding Your Purpose, we highlight there can be some confusion and mystification around the very definition of what purpose is.
In Deloitte’s report 2021 Global Marketing Trends, they explore this issue in the context of the global business landscape.
Put simply, they advise purpose can be interpreted in two ways - either to represent the underlying motive behind why a brand sells its products and services, or it can be the platform that articulates why the organisation exists in the world.
Brand purpose, as it is fundamentally anchored in the consumer, is therefore defined as the motive; while organisational purpose or a purpose-driven company, is intended to address the needs more broadly of all its stakeholders (eg. employees, suppliers, partners, customers, society), and is central and core to all decision making.
Brand purpose and company purpose shouldn’t be mutually exclusive endeavours
When it comes to purpose, consumers have often associated the concept with why a brand sells its products and services.
However, a purpose-driven company articulates why the company exists and takes a holistic approach to put their why at the centre of everything it does. It also holds itself accountable to meeting its higher goals by measuring its own progress, with purpose metrics and a purpose framework.
What is a better ‘purpose’ from a consumer perspective?
Purpose sits at the core of an organisation
Managing purpose requires integration across the company to avoid perceived inauthenticity
In some instances brand purpose can become siloed from other important facets of the company. The risk with this approach is that when purpose is managed in silos, its meaning can be confused or, at worst, it can appear disingenuous.
This does not resonate well with consumers.
Since the pandemic, consumers have become much more savvy in checking the company behind the brand to ensure the integrity and consistency of their purpose. They don’t want marketing campaign jargon, they want to purchase from companies who solve societal issues or stand for a greater good - or a higher purpose.
As we know from recent research, companies outperform their peers when their purpose is perceived to be authentic.
When a company clearly puts its “why” at the centre of its operations, purpose can be amplified and extended both within and outside the company.
It’s not just about the brand, and that’s what resonates with all key stakeholders - customers, employees, investors, the planet and suppliers.
Words by Katrina Savell
References:
https://www.theworddepot.com.au/blog/the-4-steps-to-finding-your-purpose-3ykwb
https://www2.deloitte.com/content/dam/insights/us/articles/6963_global-marketing-trends/DI_2021-Global-Marketing-Trends_US.pdf
https://www.theworddepot.com.au/blog/the-5ps-of-purpose
https://www.theworddepot.com.au/blog/measuring-purpose-its-actually-a-thing
https://www.theworddepot.com.au/blog/purpose-brands-driving-change-are-trusted-more
