Marketing Principles and Values Work in Good and Bad Times

Each day there are new reports about companies failing to survive in the midst of the current recession. But it is important to note that there are many more companies that are not only surviving but thriving despite some of the worst economic conditions since the Great Depression. Why are some companies continuing to grow while others languish?

It’s not all about the economy. It’s about the principles and values that successful companies have always used to run their business. Values and trust don’t go out of style.

Today’s most successful companies are those that have established a foundation of trust and, thus built a strong brand and reputation. Consider companies such as Google, Johnson & Johnson and IBM which have each succeeded in large part due to trust they’ve earned by abiding to a strong set of operating values over a long period of time.

What can business leaders do to ensure their brand and reputation remains strong during this economic downturn? It starts three key strategies focused on values to build or rebuild trust.

Define Values
A clear set of corporate values are mandatory to serve as guideposts to help employees stay on track. They help everyone within the organization understand what the company stands for and their role. Different than “stated” values which may appear on a plaque in the lobby or on the corporate Web site, real operating values provide a lens that people can use to do their job each and every day. To determine the values that are critical to an organization, companies need to first identify what their corporation stands for and what the people who work for the corporation believe it stands for. Some examples of strong corporate values may include:
§ Treat people fairly
§ Give back to the community
§ Be honest
§ Strive for excellence
§ Hire talented people who are fun to work with
§ Be profitable

Live Your Values
Companies must be consistent in the way they treat their employees and interact with their customers regardless of business environment or external pressures. Consistency is the foundation of trust. Hyundai’s recession proof offer was a brilliant example of values in action.

By offering to share the risk with its customers in buying back their car if they lost their job, Hyundai has received tens of millions of dollars in free publicity and customer goodwill. Hyundai made this offer at a time when sales were down 48%. Through aggressively promoting its offer, the company is not only creating traffic but is providing peace of mind for prospective customers.

It’s What Others Say About You
Seek credit when credit is due. Third-party validation is the most powerful tool for growth. When third party validation is earned, customers and opinion leaders are willing to put their personal prestige on the line for your company. Mayo Clinic has built its entire brand and reputation based on third-party validation. The clinic relies entirely on word-of-mouth and physician referrals.

Starting as a small unknown clinic in Rochester, MN in the early 1900s, Mayo has become the only true nationally recognized healthcare provider. Recent research studies reported that 23% of Americans said Mayo Clinic would be their first choice if they or someone in their family were gravely ill. No other health institution came even close. Today Mayo Clinic has over 54,000 employees with locations in Minnesota, Florida and Arizona.

No business is immune from the effects of the economy; however, it is the companies with a strong brand and reputation that will consistently outperform their competitors in good times and bad. Those who have defined their corporate values and are living those values consistently will enjoy exceptional customer and employee loyalty. They will find that virtually all their stakeholders including bankers, media and industry opinion leaders will give them the benefit of the doubt in times of trouble. Many business professionals call this a soft side of business when in fact a company’s values have a direct impact on their brand, reputation and ultimately bottom line.

John Foley is the author of BalancedBrand and founder of LEVEL, a brand and reputation firm that helps companies to align corporate values with stakeholder values to sustain profitability and growth.