social enterprise conference october 30-31, 2006 social enterprise marketing presented by: sutia kim...
TRANSCRIPT
Social Enterprise Conference
October 30-31, 2006
Social Enterprise Marketing
Presented by:Sutia Kim Alter
Virtue Ventures LLC
Social Enterprise Conference
October 30-31, 2006
Social enterprise turns the traditional social service model on its head!
Major cultural shift from “need and handout” to
“want and buy”
Social Enterprise Conference
October 30-31, 2006
What is a Market?
Market All the people who have a specific need or want and are willing and able to purchase service or product to satisfy that need.
Social Enterprise Conference
October 30-31, 2006
What is Marketing?
Marketing Planning and executing strategies to reach customers.
SE Marketing Considerations
Educational marketing or outreach Market development
Barriers to reaching clients through traditional marketing vehicles:
Literacy, language, location, topography, etc.
Communications /PR efforts to educate internal/external stakeholders impacted by SE:
Community, donors, public, etc. Budget and time constraints Who pays
Social Enterprise Conference
October 30-31, 2006
What are Market Forces?
Market ForcesAll things outside of your control that can influence your enterprise:
Weather Politics Economy Competition Infrastructure Suppliers & buyers Law Technology
Market Research
Social Need & Market Failure
Social problem enterprise is trying to mitigate
People impacted by social problem
Opportunities Barriers Industry dynamics Demand Market Segments & Size Trends Competitors
Social Enterprise Conference
October 30-31, 2006
When are you finished with market research?
Never….
Need system for listening & taking action to feedback
Market
Enterprise
Customers and markets are dynamic
Social Enterprise Conference
October 30-31, 2006
Best way to really learn about your market?
Social Enterprise Conference
October 30-31, 2006
Start selling something
Test market
What Scojo learned…
Marketing Plan Target Market Objectives Marketing mix: 4 Ps
Product Promotion Price Place
Sales Plan
Social Enterprise Conference
October 30-31, 2006
“I don’t know what the key to success is, but the key to failure is trying to please everyone.”
- Bill Cosby
Target Market
SE Customer can be Confusing!
Social Enterprises have several stakeholders they often view as “customers.”
Clients are “beneficiaries” of social enterprise services or social impact.
Target market are those buying social enterprise products and services.
Market Segmentation
User Purchaser Influencer
Clinical services (indigent)
Patient Donor Government policy
Elder services
Senior Clients’ children Competitors
Child health Child Parent ParentCompetitors
Pharmacy Patient Insurance Pharma Companies
Laboratory services
Public Clinic
State Government policy
Social enterprises may have several customer levels
Know your customers Their wants Preferences Likes and dislikes Habits Lifestyle Demographics
… ALL the things that motivate them to make a purchasing decision
Social Enterprise Conference
October 30-31, 2006
What’s in a name?
IdentityImagine
Social Enterprise Conference
October 30-31, 2006
Your marketing message is not your mission
Why will a customer buy your product or service
more than once?
Marketing message Should motivate customers to purchase your product or service.
The promotional message can emphasize particular benefits: “Convenient one-day service” “Always fresh”
A message can also exploit a market niche: “Serving Washington Area New Mothers"
It can also be more subtle, triggering a customer's emotions or self-image: “Entrusted senior care professionals” "You deserve a break today” “Peace of mind for you and your family”
“Baking with a difference”
All-natural bakery products from scratch. We mix small batches of fresh, premium ingredients and finish each product by hand to create irresistible desserts.
Rubicon stands for more than fabulous desserts: we are part of a nonprofit organization, Rubicon Programs, that helps individuals in the San Francisco Bay Area overcome economic and social hurdles. Rubicon provides training, housing, employment and support services to people in need. You can feel good about buying Rubicon products because you in turn support your community.
Objectives linked to strategiesObjective Marketing Strategy Mix
Increase market share in X county by 5% in first 1st quarter.
Introductory membership to X county residents for 25% discount
Price
Reach 200 new families in Vietnamese community in 2007
Launch culturally appropriate Vietnamese language translation clinical practice
Product
Expand clinical services to Y & Z rural areas including A,B, C border towns
Introduce mobile clinical unit which will circulate along border
Place
Increase infant immunization 25 % among immigrants babies.
Aggressive multi-lingual campaign using flyers, and community information meetings to encourage immunization.
Promotion
Example: Community clinics for un/underinsured
Social Enterprise Conference
October 30-31, 2006
One objective MUST be a sales target—units and/or $
Marketing objectives are aligned with social
mission and financial objectives
Social Enterprise Conference
October 30-31, 2006
"Cheat me on the price but not on the goods."
— Thomas Fuller
Product Strategy
Product Market Matrix
Income related toSocial ServiceMedium mission
relevance;
medium risk
Income from extension
of Social ServiceHigh mission relevance;
medium risk
Existing Product Existing Market
New Product Existing Market
New Product New MarketExisting Product New
Market
Income from Social Service
Highest mission relevance; lowest risk
Income not related toSocial Service
Low mission relevance;High risk
Customers buy benefits
Features Benefits Features BenefitsEvening and weekend hours hours
Convenient; reduces lost wages
Generic drugs
Economical
Sliding fee affordable Based in community
Convenient; accessible
Qualified doctors
Quality; peace of mind
Member insurance
Lowers stress; worry free
Preventative healthcare
Higher quality of life
Sells basic health/hygiene products
Healthier; fewer illnesses
Community Clinic Cooperative Rural Pharmacy
Product Lifecycle
Try
Brand
Differentiate
Reinvent or kill
Sales
Time
How does your product stack up?
Social Enterprise Conference
October 30-31, 2006
The codfish lay 10,000 eggs,The homely hen just one;The codfish never cacklesTo tell you what she's done;And so we scorn the codfish,And the homely hen we prize.Which demonstrates to you and meThat it pays to advertise.
- Toronto GlobePromotional Strategy
Promotional Vehicles Print media Broadcast media Direct mail Tradeshows Merchandising displays
Gifts & premiums
Special offers Billboards
Information meetings
Public relations Telephone directory
Brochures Posters/Flyers Cross-selling Referrals Personal sales Informal marketing Web
#1 Marketing Vehicle
Promotional Plan
Vehicle
Reach Fit Frequency
Cost
Product #1
Product #1
Social Enterprise Conference
October 30-31, 2006
"When it comes time to hang the capitalists they will compete with each other to sell us the rope at a lower cost." - Vladimir Lenin
Price Strategy
How much will you charge?
“Price Ceiling”
“Price Floor”
Social Enterprise Conference
October 30-31, 2006
Most common price strategy challenge for a social enterprise?
Social Enterprise Conference
October 30-31, 2006
Inability to pay
Break even
0
Sales & Costs
# of Units Sold
Profit
Loss
Social Enterprise Conference
October 30-31, 2006
Understand the REAL cost of your services
income = revenue
Understand how you might be subsidizing your price
Use subsidies wisely
Subsidies
Years Enterprise Revenue Social Expense Business Expense
Breakeven AFTERSocial CostsBreakeven Before
Social Costs
Social Subsidy
EnterpriseRevenue Subsidizes Social costs
ProfitFor biz & programinvestment
Employment SE Subsidies
Volunteer time ED + time on SE Wage premium Wastage Lower employee productivity Time spent on employee personal problems/social programs
Higher insurance rates Supervisory staff (i.e. job coaches) turn over Time for SE fundraising
Social Enterprise Conference
October 30-31, 2006
"If you can't reach your customers you can't stay in business."
- anonymous
Place (distribution) Strategy
SE Distribution The place (distribution) strategy articulates how you will get your products or services to your customers.
Distribution strategy is often a key for social enterprises that serve clients with barriers to ACCESS: Markets Healthcare Jobs Information
Distribution - Eyeglasses
Method/market
Rural
Urban
poor
Factory
Workers
Chemist PartnerNGOs
Mobile vans X X“Vision Guardians”
X X
Micro-entrepreneurs
X X
Chemists XDirect sales X X X X
SE Marketing Pitfalls Confuse marketing message and mission Failing to assess demand Assuming customer loyalty can be built on social good instead of quality
Build it and they will come – failure to market
Lack of operational capacity/acumen - inability to deliver on basics
Failure to listen to customers/watch the market & incorporate feedback
Inappropriate marketing vehicles for reaching customers
Confuse “payer” and “user” Confuse clients and customers
SE Marketing Practice Creative/unconventional marketing approaches Take business to clients – emphasis on distribution
Price and payment of services based on clients’ abilities to pay or third party payer
Quality, Consistency, Reliability are king Brand Test market new products Vigilant about setting price Keep your eyes on the prize Flexibility and responsiveness Social benefit + Mission leverage in other marketing