Storytelling versus Co-creation of Story

A friend of mine just told me about Ron Walter, Branded Entertainment Storyteller. He works for Conductor, an agency that calls itself a "brand storytelling" company:

“We believe in the power that stories have in making meaningful and lasting connections. We think of consumers as an audience, and audiences are loyal if you continue to surprise and delight them. And as we like to say, ‘Would you rather hear a sales pitch or listen to a story?’”

Part of me recoils in horror because I automatically distrust advertising. However, I have to stop and reflect about what's so different about this and what it is I'm trying to define with "Storytelling by Design". That phrase still doesn't quite ring right to me, either. Gah!

Thinking about this a bit, it again comes down to purpose: I want to use storytelling as a method of engagement with a process, not so much as a "marketing approach". Admittedly, there is a customer service angle as well; my theory is that if people feel engaged in the creation of a story with someone they enjoy interacting with, everyone will be happier and the work will kick ass.

Having said that, I'm looking for a process that emphasizes the co-creation of the story in a real-life, productive context. It's not so much storytelling itself that is the point, though it provides a reference for creating a good experience. I'm also reminded of dungeon mastering and video game design, which are two of my influences, and the importance of being a "good host" at a dinner party.