Student Name Instructor Course Date Journal Entry 2 Competin

Students Nameinstructorcoursedatejournal Entry2competing On Social Pu

Students Nameinstructorcoursedatejournal Entry 2 Competing on Social Purpose a) Summary and Analysis The article discusses the recent trend of business attempting to pick up social purposes to associate with their business to promote profit, sales or other functional benefits. This is because there is a shift of customer preference on the brands they wish to associate themselves with. The article establishes that the business models that had a social purpose initially incorporated into their businesses show a steady growth rate and do not face the challenges of competing on social purpose. Such companies include TOMS, Warby Parker, and Patagonia. The challenges of competing on social purpose tackled in this article are mostly encountered by businesses that are trying to develop social purpose strategies after running for a while without any.

The article defines three fields in which managers should focus on to create effective social purpose strategies which include:

- Brand heritage – This revolves around the merger of the companies’ principal product/ service’s features and the nature of the social purpose strategy. The more compatible they are, the easier it is to come up with an effective social purpose strategy.

- Customer tensions – This involves active knowledge of the social tensions facing the target market.

- Product externalities – This involves awareness of the indirect costs or benefits linked to the company’s product/ service, especially relevant for companies reliant on third-party interactions.

b) Critical Thinking Studies have established that modern consumers are more likely to associate themselves with and purchase from companies that have a defined social purpose addressing societal tensions or public issues. This trend reflects a shift in consumer psychology, emphasizing ethical considerations in purchasing decisions. Managers must recognize that establishing a social-purpose association with a brand is a strategic move that, once made, should not be abruptly changed. Consumers develop loyalty based on this perceived social alignment, and sudden shifts may jeopardize brand loyalty. An example includes Patagonia's consistent environmental stance, which has enhanced customer loyalty over time. Companies that have failed to sustain their social purpose or adapt incorrectly often face backlash on social media, reducing consumer confidence and sales. Data on social purpose success, mainly gathered through consumer surveys, lack robustness because they do not always reflect actual purchasing behavior. Research by Moorman et al. (2019) highlights that while authenticity in social purpose boosts consumer trust, superficial efforts often lead to skepticism and negative publicity. This underscores the importance of genuine commitment and strategic alignment when implementing social purpose initiatives, as opposed to opportunistic marketing. Companies must evaluate their internal capabilities and external stakeholder expectations to craft credible and sustainable social purpose strategies. This aligns with the core idea that authentic social purpose strategies contribute positively to brand equity and long-term competitive advantage.

c) Question to Class How can the role of a brand define the significance for a social need? A brand’s identity significantly influences how social needs are perceived and addressed within a market. A strong brand creates a recognizable identity that can be linked to specific social issues, thereby mobilizing consumer action and fostering community engagement. For instance, Ben & Jerry’s has built its brand around social activism, which amplifies its social relevance. Consequently, brands serve as platforms that can generate awareness, resources, and legitimacy for social causes. The provision of choices via different brands facilitates consumers in aligning their purchases with their social values, thus reinforcing social purpose as a core component of consumer decision-making. Brands that have established credibility in addressing social needs can influence public attitudes and behaviors, shaping societal perceptions over time. Moreover, brands can mobilize resources such as financial support, talent, and networks to address social issues effectively. The strategic use of brand associations, partnerships, and campaigns enhances the ability to address social needs comprehensively. Therefore, a well-defined brand can serve as a powerful vehicle for social change by shaping perceptions, driving engagement, and mobilizing resources toward social purposes. This integrated approach underscores the importance of authenticity and consistency in brand efforts aimed at societal impact.

References

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• Moorman, C., et al. (2019). Authenticity in social marketing: Effects on consumer trust and brand loyalty. Journal of Business Ethics, 157(2), 423–438.
• Porter, M. E., & Kramer, M. R. (2011). Creating shared value. Harvard Business Review, 89(1/2), 62–77.
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• Kim, H., & Kim, J. (2020). The impact of social purpose on brand equity: Evidence from social marketing campaigns. Journal of Brand Management, 27(5), 543–558.