SOCIAL ENTERPRISE MARKETING 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
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.
MARKETING + Planning and executing strategies to reach customers.
SE MARKETING CONSIDERATIONS – Educational marketing or outreach Ï Market development – Barriers to reaching clients through traditional marketing vehicles: Ï Literacy, language, location, topography, etc. – Communications /PR efforts to educate internal/external stakeholders impacted by SE: Ï Community, donors, public, etc. – Budget and time constraints – Who pays
MARKET FORCES All 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
MARKETING PLAN + Target Market + Objectives + Marketing mix: 4 Ps – Product – Promotion – Price – Place + Sales Plan
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 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 Competitors Pharmacy Patient Insurance Pharma Companies Laboratory services Public Clinic State Government policy
KNOW YOUR CUSTOMERS – Their wants – Preferences – Likes and dislikes – Habits – Lifestyle – Demographics + … ALL the things that motivate them to make a purchasing decision
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”
OBJECTIVES LINKED TO STRATEGIES Objective Marketing Strategy Mix Increase market share in X county by 5% in first 1 st 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 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 Product Example: Community clinics for un/underinsured
PRODUCT MARKET MATRIX Existing Product Existing Market Income from Social Service Highest mission relevance; lowest risk Income related to Social Service Medium mission relevance; New Product Existing Market Income from extension of Social Service High mission relevance; medium risk Income not related to Social Service Low mission relevance; High risk medium risk Existing Product New Market New Product New Market
CUSTOMERS BUY BENEFITS Community Clinic Features Benefits Cooperative Rural Pharmacy Features Benefits Evening and Convenient; weekend hours reduces lost hours 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
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
PROMOTIONAL PLAN Vehicle Reach Product #1 Fit Frequency Cost
“Price Ceiling” HOW MUCH WILL YOU CHARGE? “Price Floor”
INABILITY TO PAY Social Enterprise Conference October 30 -31, 2006
BREAK EVEN Sales & Costs Profit Loss 0 # of Units Sold
UNDERSTAND THE REAL COST OF YOUR SERVICES INCOME = REVENUE UNDERSTAND HOW YOU MIGHT BE SUBSIDIZING YOUR PRICE Use subsidies wisely Social Enterprise Conference October 30 -31, 2006
SUBSIDIES Profit For biz & program investment Social Subsidy Breakeven Before Social Costs Enterprise Revenue Social Expense Breakeven AFTER Social Costs Business Expense Enterprise Revenue Subsidizes Social costs Years
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
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
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
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