James Murdoch, executive chairman and chief executive of News Corp, Europe and Asia, and non-executive chairman of BSkyB, argues that an internal compass can help marketers steer their businesses in good weather and bad
Marketing to today's consumer is a hard business. Audiences are fragmented. People have no time to listen. They're clued-up, often cynical and living in a society that is more connected than ever.
That makes marketing and brand communications more challenging. But if you grapple with those changes for long enough, you can develop an internal compass to steer your communications. Marketers who achieve this will be absolutely central to business success, because that success will be driven by a deep understanding of the consumer and society.
At Sky and News Corp, we've started to learn what this more empowered world means for our relationship with customers. And it's not a question of scale; it's a different way of existing. It's not about talking to more people in the same old way; it's about listening to consumers and having a conversation with them that is based on shared values. This builds trust.
Part of trust comes from good old-fashioned things like customer service, like transparent pricing, like treating customers fairly. These are fundamental. But people rightly expect more of companies these days, and we should be ready to respond. If we can consistently show how our values and our compass guide our businesses then we will stand out from the superficial corporate makeover or the cynical marketing slight of hand.
Customers may be concerned about education, or health, or the environment. So are we. They may worry about crime. So do we. And they expect their chosen brands to be aware of those concerns and respond to them. We should all want to work in places that hear that and do something about it.
When we take direct action we get a powerful response. The Sun recently offered a free energy-efficient light bulb to every reader. Four and a half million light bulbs were distributed. And the paper sold over 400,000 extra copies that day. Readers recognise we are engaging with them on issues they really care about. The future belongs to brands that do more than pay lip-service to real dialogue and recognise that their customers want them to believe in something.
It's tough out there, but that's usually when innovation makes the most difference and outstanding marketing has real impact. The ways in which society is changing means that good marketing people are going to have a seat at the top table - they are the people that companies will need to succeed.
People who respect and listen to their customers; people who create value by understanding values; people who have a compass and steer by it, in good weather and in bad: these are the people who understand that there has been no better time simply to do their business better.
This is an edited extract of The Marketing Society's Annual Lecture 2008. Video footage of the event can be seen on the website.