marketing*for* triple*bottom*line* results* · triple*bottom*line* results* june!2010!!...
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Marketing for Triple Bottom Line
Results June 2010
"It's always good business to do the right thing." Yvon Chouinard, environmental activist, founder of Patagonia and 1% for the Planet
GOOD Marketing is not about Going GREEN or
donating to charity
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It’s about reaching your audience and achieving results. . .
that are sustainable for all
Triple Bottom Line
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What are we Talking About Today?
1 Defining Marketing, Sustainability, CSR, cause and social marketing
2 Principles of GOOD marketing to reach Triple Bottom Line results
3 Success stories and innovations in true social business and causes
A STRONG BRAND IS BASED ON EMOTIONAL AND SELF EXPRESSIVE BENEFITS AS WELL AS PRODUCT ATTRIBUTES AND TANGIBLE FUNCTIONAL BENEFITS. IT’S NOT ABOUT HAVING YOUR NAME ON THE PRODUCT – IT’S ABOUT HAVING THE PRODUCT MEAN SOMETHING BECAUSE YOUR NAME IS ON IT.
-‐DAVID AAKERS, BUILDING STRONG BRANDS
MARKETING IS NOT A DEPARTMENT, IT’S YOUR BUSINESS
-‐HARRY BECKWITH, SELLING THE INVISIBLE
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Marketing Is
Everything we do to reach and communicate to potential audiences your brand and “product”
Creates opportunities to sell – at every customer touch point 1. Branding/strategy 2. Messages and visuals 3. Merchandising – retail shops and displays 4. Advertising, media – radio, TV, billboard 5. Public Relations 6. Promotions 7. Social Media– facebook, linked in, YouTube 8. Video and film 9. Sales Tools, uniforms 10. Events, Trade shows
Definitions
1. CSR – the initiatives that a company has decided are part of their Social Responsibility
• Could include giving, sustainability, internal and external
2. Corporate Philanthropy –giving (without expectation of direct gain) of money and in-‐kind grants by companies or their foundations. Tax deductible. [USA]
3. Social Marketing – the use by nonprofit and public organizations to impact societal behavior. Awareness, education, advocacy
4. Sponsorship – usually event-‐oriented – often one-‐time support
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Cause Marketing
Public association of a for-‐profit company with a nonprofit organization, intended to promote the company's product or service and to raise money for the nonprofit
Companies team up with charities with the aim of bringing in more money and impacts for both
"As a business, we have a responsibility to society. Let me be clear about this point. There is no conflict between delivering value to shareholders and helping solve bigger societal problems.” H Lee Scott Jr, Wal-‐Mart Chairman (National Retail Federation, 1-‐12-‐09)
A Brand is…
Aspect of a company, product, or service that leaves an impression in our minds Functional (tangible product/service) Emotional (experience, intangible) that occupies
“space” in the mind Leaves a memorable impression Defines a competitive edge
An effective brand that is marketed well: Puts a “stake in the ground” for what you do and offer Gains credibility, creates word of mouth & buzz
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Instant Impression
• GOOD marketing is 80% strategy 20% tactics
• How would you rate your marketing from 1 to 10 = best?
• Are you attracting the target audience you want?
• Is your message clear and powerful?
• Or is it confusing and out of date?
What’s your Purpose for Marketing?
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Customer Touchpoint
Every point that your product or service touches a customer or a prospect. It often takes 5-‐7 times to touch a customer before a sale
• Signage, buildings, trucks
• Business cards
• Advertising/Promotions
• Direct mail
• Articles, press
• Web sites, brochures
• Staff, employees, volunteers
• Community relations, events, performances
Principles of GOOD marketing
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Setting Goals and Benchmarks Set goals that will achieve your vision
• Measureable: measures to determine success? 1. Increase Awareness _________
2. Generate sales
3. XXX leads • Intangibles – awareness, Improve image, credibility Start with the Benchmarks – Where are you now?
You cannot see anything that you do not first contemplate as a reality.--Ramtha!
KickStart– to End Poverty
Social Entrepreneur/Enterprise –to help end poverty Selling Irrigation pumps was most effective way to help small scale
poor farmers increase their income • Monitor impact of farmer, families, poverty, health improvements
• 95,000 businesses started
• 460,000 people lifted out of poverty
Marketing Assessment -‐ 2006 • Sales were slow and falling which reduced impact on poverty
• Branding was different in four countries – no consistency
• Ineffective merchandising and low awareness
• Donor communications were unprofessional
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Examine what the Product/Service Offers
People#• Easy Irrigation #• Lifts people from poverty#• Improve your life#
Planet#• Creates sustainable
businesses#• No fuel used#
Profit#• Way for the poor to make income – economic
improvement#• Goal to be sustainable by selling product#
Know your Competition#
What brands have an image or recognition that you would like emulate?
• Direct Competitors (players who do what you do)
• IDE, BRAC, Technoserve
• Determine Non-‐Direct Competitors (i.e. who competes for the same dollars, time)
• Anything farmers spend money on for farming or life • School fees, medical
• What are they doing right? Also ask what they might be doing wrong?
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Learn, Don’t Follow
SWOT: Analyze what they offer, strengths and weaknesses
• When they zig, you zag
• What are the opportunities or “gaps” based on your research?
• Consistency? Clarity?
• Go where they aren’t
• Can you market better/clearer, cleaner, better benefit?
Target Market
Who is your ideal target audience • The ones who will influence others to buy or believe
• A compilation of the qualities and demographics
Find out their insights about this group • Primary research, sales, reports, history
• What do they care about -‐environment, planet, “green”
Examine trends in other markets, areas, look at case studies
Consider doing research -‐-‐ learn about needs, pain points
No, “everyone” is not your audience.
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Create The Customer Profile • Demographics – facts – age, gender, income, job, car, family,
geography, house, economic class, expendable income
• Psychographics – personality, motivations, habits, health, stressors, emotional factors, what do they care about?
• Where do they shop, how do they shop?
• What do they read, watch, and who do they listen to?
• What keeps them up at night? What do they talk about with friends?
• What organizations, clubs, social events, church, sports and activities do they frequent?
Ideal Customer – Two Groups
Farmer Joseph and family " Jeff and Hillary Foundation"
End User Donor
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Identify What your Target Values
Three factors that matter most to your target audience – price, family, time, service etc.
End user: 1. I want to improve my income to provide for my family
2. A job and a way to make money is important to me to gain respect
3. I’d like to improve our life – school, health, house, happiness
Donor 1. We want to give back to helping create opportunity
2. Our investments are in sustainable organizations
3. It’s most critical to see real impacts that are scalable
Research and Trends Matter
• Look at real market data and assess where the trends are going and what it means for your product or service.
• 75% of Household purchases (US) are made by women • Emerging economies are unleashing a wave of low-‐cost, disruptive innovations that will, as they spread to the rich world, shake many industries to their foundations [Economist April 2010]
• “Frugal” innovation products are on the rapid rise, in emerging markets [economist April 2010] • $2,200 car/$300 computer/$70 fridge/$30 phone
• Kenya leads the world in money transfer by phone • 69% of women (US) look to companies to help them DO GOOD in difficult times. [Self Magazine 2009]
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The Value Proposition
“To broaden your appeal, narrow your position.” -‐Harry Beckwith
Value Proposition is the intersection of what you do with what customers value most. It’s what differentiates you, what you uniquely deliver
• Re-‐evaluate your unique offerings and products
• What resonates and has high value to the group you want to reach?
• What do you offer that meets what your ideal customers value?
WHAT DO YOU OFFER…
CURRENT MARKET TRENDS..
WHAT DOES THE
CUSTOMER VALUE…
VALUE PROPOSITION"
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Value Proposition
Who___________________(define who the offering is targeted to)#
What ______________________________(what the offering is)#
______________________(what the offering includes or provides)#
Enables _____________________(value the offering provides)!
Proof Points#
At least three proof points to support value proposition • Based on facts, true offerings, examples
• Saying you are good or the best is not proof
1. Over 460,000 lifted from poverty
2. Irrigation is easier – 1 acre – 4 hours vs. bucket
3. Farmers grow cash crops to sell which increases income 1000%
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Key Messages
• The most important points that tell your audience the value and benefits your brand offers so they identify with
• Foundation for copy and content
• Include facts, statistics, benefits that your audience wants to hear
• Keep it simple – less = more
• KickStart International key message: “The poor person’s greatest need is a way to make money.”
Stories constitute the single most powerful weapon in the leaderʼs literary arsenal. #-Howard Gardner, Harvard Professor and author of Leading Minds #
Marketing Strategies
Over-‐arching big actions that address opportunities -‐-‐ what your company/service does best, what customers need, and the competitive advantage
• Initiatives that put you in the right place to make sales
• Attract customers, create leads, drive demonstrations
• Reason to come in, call, come back or try
AWARENESS INTEREST DEMAND ACTION
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Marketing Strategies/Disciplines
PR = Works with the press for newsworthy stories and coverage of your company or product. Not paid for. PR offers third party credibility. Cost effective and can bring impact
Advertising = Paid media. Any print, radio, TV or interactive ads that are paid for and sponsored by the payer
Interactive = Advertising or a web site that promotes your business online. Be found on search engines, sites with travel, tourism related web sites, blogs
Social Media – peer to peer communication – effective to gain approval
Social Media Revolution Social media is the ability for people to use online technologies to share their opinions, experiences, knowledge and perspectives with each other. We make purchasing decisions and interact with brands
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Assess the Best Strategies
• Promotions – limited time, offer based
• Events/Festivals, community events
• Grass roots –places your customer goes – shops, social events and create ways to connect
• Partnerships – sell through other channels, partners
• Sponsorship – sponsor an event – or charity -‐ where your ideal customer will be
Measure Results and Impacts Did you meet your Targets?
KickStart’s Farming is my Business marketing campaign and Imarisha Maisha promotion generated over 600% sales increases in Kenya, sold over 1500 pumps in one month, highest ever
People out of poverty impacts accelerated from 200,000 in 2005 to 440,000 in 2009
Farmers see themselves as successful business people who make money and care for their families
Global branding is in place
Donor communications have consistency and tell the story
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Success Stories and Innovations
Burger Eat Less Meat?
Max Burger Restaurant chain in Sweden claims to be the first restaurant chain in the world to publish CO2 emissions on its menu
No GMOs or trans fat either
Environmental practices and awareness for customers who want it A recent survey in Sweden found that 92% of people wanted more
information about the "green credentials" of the food they were buying.
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Unilever and Allanblackia
Farmers in Ghana, Tanzania and Nigeria have begun harvesting a traditional seed which provides oil that is used for Unilever spreads and cooking products
Sustainable and profitable crop generating over $150k/yr
Teach farmers to harvest allanblackia to meet standards
Unilever buys the oil after it’s crushed and processed
"For Truly Clean Hands, Always Wash with Soap”
Public-‐Private Partnership promoting hand washing with soap to prevent diarrheal diseases Unilever and NGOs
Reached over 130M people
Objective: reduce morbidity and mortality among children under 5 yrs create awareness of the benefits
Increase practice of hand washing with soap at critical times among mothers and caregivers of children
Unilever – sell soap!
Campaign included: mass media, direct consumer, schools, health centers, public relations
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Envirofit: Cookin Against Air Pollution
Mission -‐ Create products that reduce pollution and energy dependency, yielding health, environmental and economic improvements
Enterprise-‐approach to solving health, environmental and economic problems in developing countries
Projects are independently grant funded but focus on gaining independent sustainability within 2 – 5 years
Sustainable, scalable and profitable business model
THE IMPACT
Tackling Global Indoor Air Pollution
Indoor Air Pollution kills ~1.5 million people every year worldwide
More than 3 billion people worldwide cook in their homes using traditional fires and stoves, burning biomass fuels (wood, dung, crop waste) & coal
2 million tons of biomass burned daily • Causes severe deforestation
• Inefficient burning emits toxic chemicals & potent greenhouse gasses like methane into the atmosphere
• Costs up to 40% of the household’s income
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ENVIROFIT Cookstoves • Up to 60% Fuel Savings • Up to 80% Emissions Reduction • Up to 50% Time Savings • Durable and Long Lasting:
Five Year Warranty
• Light weight: 6.2 kg • India: wood • Africa: charcoal
Four billion people live in Asian metropolitan regions with air so polluted that it is “toxic”, according to the World Health Organization.
As much as 40% of the pollution is caused by the two-‐stroke engines used in “tuk-‐tuks”, and sidecar-‐equipped motorcycles.
CleanEngines
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1 dirty carbureted two-‐stroke engine produces the pollution equivalent of 50 modern automobiles
=
A Social Business
Planet: Direct Injection LPG that costs $325 vs. to convert • Cuts emissions 50%
• Reduces fuel consumption 40% and uses LPG fuel 30% cheaper than gasoline
People: “working poor” – taxi drivers Over 60% total reduction in operating costs
Driver savings of $800 -‐ $1000/year
Profit The conversions are cost effective and can be microfinanced
Market potential in Asia = 1,000,000 two strokes
Scalable business model
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What is Sustainable Marketing?
Sustainable, Scalable and Profitable business model
Start with tangible, practical and realistic business case
It must answer the “so what” question that each audience is asking: People Planet Profit
What is your value proposition to your ideal audience(s)?
Define the best and most cost effective strategies, then a targeted marketing plan
Implement, measure and evaluate
Social impact must prove it’s value to the business.
Let us help you get the word out