Social Enterprise Marketing

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Social Enterprise Marketing
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Social enterprise turns the traditional social
service model on its head!

• Major cultural shift from need and handout to
  want and buy

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What is a Market?
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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.

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What is Marketing?
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Marketing

• Planning and executing strategies to reach
  customers.

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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

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What are Market Forces?
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Market Forces

• All things outside of your control that can
  influence your enterprise
• Weather
• Politics
• Economy
• Competition
• Infrastructure
• Suppliers buyers
• Law
• Technology

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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

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When are you finished with market research?
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Never.
Customers and markets are dynamic
Need system for listening taking action to
feedback
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Best way to really learn about your market?
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Start selling something

• Test market

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What Scojo learned
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Marketing Plan

• Target Market
• Objectives
• Marketing mix 4 Ps
• Product
• Promotion
• Price
• Place
• Sales Plan

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I dont know what the key to success is, but the
key to failure is trying to please
everyone. - Bill Cosby

• Target Market

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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.

client
Community
Donor
Consumer
Customer
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Market Segmentation
 
Social enterprises may have several customer
levels
User Purchaser Influencer
Clinical services (indigent) Patient Donor Government policy
Elder services Senior Clients children Competitors
Child health Child Parent Parent Competitors
Pharmacy Patient Insurance Pharma Companies
Laboratory services Public Clinic State Government policy
 
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Know your customers

• Their wants
• Preferences
• Likes and dislikes
• Habits
• Lifestyle
• Demographics
• ALL the things that motivate them to make a
  purchasing decision

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Whats in a name?
Identity Imagine

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Your marketing message is not your mission

• Why will a customer buy your product or service
  more than once?

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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

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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.

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Objectives linked to strategies
Example Community clinics for un/underinsured
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One objective MUST be a sales targetunits and/or

• Marketing objectives are aligned with social
  mission and financial objectives

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"Cheat me on the price but not on the goods."

Thomas Fuller

• Product Strategy

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Product Market Matrix
Existing Product Existing Market
New Product Existing Market
Income from extension of Social Service High
mission relevance medium risk
Income from Social Service Highest mission
relevance lowest risk
Income related toSocial Service Medium mission
relevance medium risk
Income not related to Social Service Low mission
relevance High risk
New Product New Market
Existing Product New Market
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Customers buy benefits
Community Clinic
Cooperative Rural Pharmacy
Features Benefits Features Benefits
Evening 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
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Product Lifecycle
Sales
?
?
Differentiate
Reinvent or kill
?
Brand
?
Time
Try
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The codfish lay 10,000 eggs,The homely hen just
oneThe codfish never cacklesTo tell you what
she's doneAnd so we scorn the codfish,And the
homely hen we prize.Which demonstrates to you
and meThat it pays to advertise. - Toronto
Globe

• Promotional Strategy

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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

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1 Marketing Vehicle
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Promotional Plan
Vehicle Reach Fit Frequency Cost
Product 1
Product 1
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"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

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How much will you charge?
Price Ceiling
Price Floor
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Most common price strategy challenge for a social
enterprise?
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Inability to pay
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Break even
Sales Costs
Profit
Loss
0
of Units Sold
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Understand the REAL cost of your services
income revenue Understand how you might be
subsidizing your price

• Use subsidies wisely

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"If you can't reach your customers you can't stay
in business." - anonymous

• Place (distribution) Strategy

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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

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Distribution - Eyeglasses
Method/market Rural Urban poor Factory Workers Chemist Partner NGOs
Mobile vans X X
Vision Guardians X X
Micro-entrepreneurs X X
Chemists X
Direct sales X X X X
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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

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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

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Developing a Marketing Plan

• Use a good Marketing Plan to guide the strategic
  and tactical direction of your business

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The Marketing Challenge

• Ask yourself these five critical questions
• What is unique about your business idea? What is
  the general need that your product or service
  aims to meet?
• Who is your target buyer? Who buys your product
  or service now, and who do you really want to
  sell to?
• Who are your competitors? How can your small
  business effectively compete in your chosen
  market?
• What positioning message do you want to
  communicate to your target buyers? How can you
  position your business or product to let people
  know about your product?
• What is your sales strategy? How will you get
  your product or service in the hands of your
  customers?

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The 10 Elements of a Good Marketing Plan

• A good Marketing Plan includes these 10 elements
• Describe Your Business
• Conduct a Situation Analysis
• Define Your Customer
• Strategize Your Market Entry
• Forecast your Sales or Demand Measurement
• Define Your Marketing Budget
• Integrate Your Marketing Communication
• Identify Sales Channels
• Track Marketing Activities
• Evaluate Your Progress

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6. Define Your Marketing Budget (Slide 1 of 2)

• Marketing budgets, especially in small and
  mid-sized businesses, are often arbitrarily set
  as either x of planned revenue or y over the
  prior year's marketing budget.
• Use targeted budgeting to more intelligently set
  your budget based on company objectives.

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6. Define Your Marketing Budget (Slide 2 of 2)

• Answer the following questions
• What previous marketing methods have been most
  effective?
• What are your costs compared to sales?
• What is your cost per customer?
• What marketing methods will you use to attract
  new customers?
• What percentage of profits can you allocate to
  your marketing campaign?
• What marketing tools (i.e. - newspapers,
  magazines, Internet, direct mail, telemarketing,
  event sponsorships) can you implement within your
  budget?
• What methods are you using to test your marketing
  ideas?
• What methods are you using to measure results of
  your marketing campaign?

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7. Integrate Your Marketing Communication

• Integrate marketing communication to consolidate
  marketing tools, approaches, and resources within
  a company to maximize impact and gain edge over
  the competition.
• Build on a "Marketing Mix and include the
  following
• 4Ps Product, Price, Promotion, and Place
• Marketing Advertising
• Internet
• Events
• Direct
• Database
• Public Relations

A COLLABORATIVE APPROACH
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8. Identify Sales Channels

• Part of the challenge of marketing is figuring
  out which distribution method to use for your
  business.
• Include all relevant distribution channels
• Retail Stores selling to final consumer buyers
  (one store, or a chain of stores).
• Wholesale An intermediary distribution channel
  that usually sells to retail stores.
• Direct mail Generally catalog merchants that
  sell directly to consumers.
• Telemarketing Merchants selling directly to
  consumer buyers at retail via phones.
• Cyber-Marketing Merchants selling directly to
  consumer buyers at retail prices, or
  business-to-business products and services at
  wholesale prices via computer networks.
• Sales force Salaried employees of a company or
  independent commissioned representatives who
  usually sell products for more than one company.