Social Enterprise Marketing

1. Social Enterprise Marketing Presented by: Sutia Kim Alter Virtue Ventures LLC

2. Social enterprise turns the traditional social service model on its head! Major cultural shift from “need and handout” to “want and buy”

3. What is a Market?

4. 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.

5. What is Marketing?

6. Marketing • Planning and executing strategies to reach customers.

7. 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

8. What are Market Forces?

9. Market Forces All things outside of your control that can influence your enterprise: • Weather • Politics • Economy • Competition • Infrastructure • Suppliers & buyers • Law • Technology

10. 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

11. When are you finished with market research?

12. Enterprise Market Never…. Customers and markets are dynamic Need system for listening & taking action to feedback

13. Best way to really learn about your market?

14. Start selling something Test market

15. What Scojo learned…

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

17. “I don’t know what the key to success is, but the key to failure is trying to please everyone.”- Bill Cosby Target Market

18. 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. SE Customer can be Confusing! client Community Donor Consumer Customer

19. Market Segmentation Social enterprises may have several customer levels

20. Know your customers • Their wants • Preferences • Likes and dislikes • Habits • Lifestyle • Demographics • … ALL the things that motivate them to make a purchasing decision

21. What’s in a name? Identity Imagine

22. Your marketing message is not your mission Why will a customer buy your product or service more than once?

23. 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”

24. “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.

25. Objective 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 Objectives linked to strategies Example: Community clinics for un/underinsured

26. One objective MUST be a sales target—units and/or $ Marketing objectives are aligned with social mission and financial objectives

27. "Cheat me on the price but not on the goods." — Thomas Fuller Product Strategy

28. 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 Existing Product New Market New Product New Market

29. Customers buy benefits Community Clinic Cooperative Rural Pharmacy

30. Product Lifecycle Sales   Differentiate Reinvent or kill  Brand  Time Try

31. How does your product stack up? ££ Q

32. 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 Globe Promotional Strategy

33. 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 Vehicles

34. #1 Marketing Vehicle

35. Promotional Plan

36. "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

37. How much will you charge? “Price Ceiling” “Price Floor”

38. Most common price strategy challenge for a social enterprise?

39. Inability to pay

40. Break even Sales & Costs Profit Loss 0 # of Units Sold

41. Understand the REAL cost of your servicesincome = revenue Understand how you might be subsidizing your price Use subsidies wisely

42. Profit For biz & program investment Social Subsidy Breakeven AFTER Social Costs Enterprise Revenue Subsidizes Social costs Breakeven Before Social Costs Subsidies Years Enterprise Revenue Social Expense Business Expense

43. 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

44. "If you can't reach your customers you can't stay in business."- anonymous Place (distribution) Strategy

45. 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

46. Distribution - Eyeglasses

47. 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

48. 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