Strategic Social Marketing: Footpaths as well as PSAs

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GENESIS

• Brothers and sisters in faith, we are gathered
  here today to learn about social marketing...

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GENESIS

• In the beginning there were the three ologies
  sociology, psychology and anthropology.
• They sought to understand and explain human
  behaviour. And the learning they provided was
  Good.

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GENESIS

• Then came marketing, which took this learning
  and used it to advance the fortunes of commerce.
  
• Here too the need was to understand human
  behaviour, but also to put theory into practice
  and actually change this behaviour.

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GENESIS
The crucible of the marketplace tempered and
honed marketing, and it reigned supreme. The
result, if not Good, was certainly successful.
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GENESIS
Then marketing begat social marketing, and this
power was turned to beneficent causes.
Lifestyles became healthier, illness reduced and
longevity increased Professors Kotler and
Andreasen looked on their work and found it to be
Good.
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GENESIS
Our job, brothers and sisters in faith, is to
continue this learning. And the font of our
wisdom is commercial marketing
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GENESIS
Indeed, brothers and sisters in faith, I want to
suggest something truly shocking. We can even
learn from those masters of the black art the
tobacco industry
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GENESIS
Indeed, brothers and sisters in faith, I want to
suggest something truly shocking. We can even
learn from those masters of the black art the
tobacco industry Why should the devil have all
the best tunes?
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ORDER OF SERVICE

• The first fifty years
• Continuing the learning from commerce the case
  of New Way Tobacco
• Into the promised land strategic thinking
  relationship marketing and competitive analysis

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1. The First Fifty Years
In 1952 Wiebe posed the question
Can we sell brotherhood like soap?
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1. The First Fifty Years
In 1952 Wiebe posed the question
Can we sell brotherhood like soap? Yes you
can transfer learning from the commercial to the
social sector
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Kotler Zaltman coined the term social
marketing
The design, implementation and control of
programs calculated to influence the
acceptability of social ideas and involving
considerations of product planning, pricing,
communication, distribution and marketing
research (Kotler Zaltman 1971)
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• social marketing is concerned with the
  application of marketing knowledge, concepts, and
  techniques to enhance social as well as economic
  ends.
• (Lazer and Kelly 1973)

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1. The First Fifty Years

• Commercial - social transfer of learning

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1. The First Fifty Years

• Commercial - social transfer of learning
• Basics established
• - consumer orientation
• - continuous consumer research
• - marketing mix
• New thinking

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1. The First Fifty Years

• Commercial - social transfer of learning
• Basics established
• much more than social advertising

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1. The First Fifty Years

• Commercial - social transfer of learning
• Basics established
• much more than social advertising

weve not just borrowed from Madison Avenue,
weve pillaged Wall Street
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1. The First Fifty Years

• Commercial - social transfer of learning
• Basics established
• Exchange (Bagozzi)

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1. The First Fifty Years

• Commercial - social transfer of learning
• Basics established
• Exchange (Bagozzi)
• Heresy (Buchanan)

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1. The First Fifty Years

• Commercial - social transfer
• Basics established
• Exchange
• Behaviour is the bottom line (Andreasen 1994)

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1. The First Fifty Years

• Commercial - social transfer
• Basics established
• Exchange
• Behaviour is the bottom line (Andreasen 1994)

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But commercial marketing is changing
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But commercial marketing is changing
What would a commercial marketer think of us and
what we do?
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But commercial marketing is changing
What would a commercial marketer think of us and
what we do?
So Ive asked one to come along and tell us
Gareth Broughton, CEO New Way Tobacco
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Gareth Broughton Chief Executive New Way Tobacco
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New Way Tobacco
We are succeeding I will tell you why, and the
implications it has for you in social marketing
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Competitive Analysis

• Defining the competition
• Our strengths
• Your weaknesses
• Conclusion youre in a mess

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Competitive Analysis

• Other tobacco companies? We are leading the
  field on this one but they will follow
• Social marketing is the much more important
  competitor

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Competitive Analysis

• You are the people who would like to put us out
  of business
• Our and your aims are entirely incompatible
• It is us or you

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Structure

• Competitive analysis
• Our strengths
• Your weaknesses
• Conclusion youre in a mess

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Our strengths

• We continue to flourish
• We understand marketing
• We have a plan

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We continue to flourish
Pick your investment analyst
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We continue to flourish
in the year to date, earnings momentum has been
better in tobacco than in other consumer
sectorsIn the long run, in our opinion, the
economics of tobacco remain extremely
attractive. (Citigroup - Smith Barney - August
2004)
In 2008, the market is forecast to have a value
of 135 billion, an increase of 16.5 since
2003.In 2008, the market is forecast to have a
volume of 480.3 billion cigarettes/cigars, an
increase of 8.4 since 2003. (Datamonitor)
The company reported underlying,
amortization-adjusted, fully diluted EPS of
100.9p, representing growth of 12.7. (Fiscal
2004)
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Our strengths

• We continue to flourish
• We understand marketing
• We have a plan

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Marketing

• Vital importance of understanding
• our customers
• our allies
• our stakeholders
• even our competitors
• and learning to do business with them

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Understanding the customer

• eg young people

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Young People
Consumer orientation empathy Market research
Their needs What do they want from
smoking? What concerns, anxieties, hopes. do
they have?
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Consumer MarketingYoung People
The need
To smoke Marlboro Lights represents having
passed a rite of passage, ... It is not something
done by immature smokers.
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Consumer MarketingYoung People
The need
Young adult smokers are looking for reassurance
that they are doing the right thing, and
cigarettes is no exception.
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Consumer MarketingYoung People
The need
Young adult smokers are also searching for an
identity. Cigarettes have a key role to play as
they are an ever-present statement of identity.
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Consumer MarketingYoung People
The need
Psycho-social, emotional and complex. It is
about coping with life
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Consumer MarketingYoung People
Four Key Strategies

• Promotion
• Place
• Price
• Product

branding
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Consumer MarketingYoung People
Branding
If a brand of cigarettes does not convey much in
the way of image values, there may well be little
reason for a young adult smoker to persist with
or adopt the brand
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Branding
Consumer Marketing
This takes time
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Building Relationships
The emphasis in marketing has moved from
transactions and doing things to people, to
building relationships and doing things with
people Groonross 1992
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Relationship Marketing
We theorise that the presence of relationship
commitment and trust is central to successful
relationship marketing, not power and its ability
to condition others (Morgan and Hunt, 1996)
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• Empathy
• Branding
• Time
• Trust
• Commitment

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• Empathy
• Branding
• Time
• Trust
• Commitment

Valued relationships
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Beyond the Consumer
But, relationships with whom?
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Beyond the Consumer
But, relationships with whom? stakeholder
marketing (EC Aspect Report, 204 Ch 6)
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Relationships

• Allies
• Shopkeepers
• Hospitality trade
• Our interests coincide

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Relationships

• Allies
• Opinion leaders
• the judiciary
• policy makers
• the media
• public opinion

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Relationships

• Allies
• Opinion leaders
• the judiciary
• policy makers
• the media
• public opinion

We aim high
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Relationships

• Allies
• Opinion leaders
• the judiciary
• policy makers
• the media
• public opinion

Health warnings Youth prevention CSR
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Health Warnings
Smoking causes many serious and fatal diseases
including lung cancer, heart disease and
emphysema. Your risk of getting a disease from
smoking is very high. Do not think that smoking
wont affect your health. (PM pack insert 2003)
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Health Warnings
it also requires education about the serious
health effects of smoking, including
addiction (PM press ad 2003)
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Youth Prevention
The fact is it also makes good business sense to
try to stop kids from smoking. In todays world,
if we dont do what we can, then our business
will be at risk. Governments, regulators and the
public may stop us from selling cigarettes to
adult smokers (Philip Morris press ad, 2003)
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Youth Prevention

• And you neednt take my word for it
• Given that there is no evidence of any major
  negative impact of these tobacco industry ads, it
  is recommended that the running of such ads
  should not be publicly opposed by anti-smoking
  organisations
• (Jalleh Donovan 2003)

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Our strengths

• We continue to flourish
• We understand marketing
• We have a plan

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We have not just a plan, but a vision

• by 2010 we will regain a respectable business
  position
• we already have the blue chip profitability we
  want to regain the image to go with it
• you social marketers are helping us to do it

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Structure

• Competitive analysis
• Our strengths
• Your weaknesses
• Conclusion youre in a mess

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Your weaknesses

• Marketing remains a complete mystery to you
• You have no plan

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Marketing

• Its about empathy

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Marketing

• The consumer
• hector and patronise
• no sense of perspective
• forgotten what pleasure is
• forgotten that life is difficult dysfunctional
  coping strategies have their place
• forgotten that people have lives not just
  inconvenient behaviours

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Marketing

• Its about empathy
• Its about thinking beyond the customer change
  the playing field - not just the players

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Marketing

• The stakeholder
• Forgotten that they have other priorities
• For them too life can be difficult
• That deals and compromises are needed
• That there isnt one true path

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You are zealots
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Your weaknesses

• Marketing remains a complete mystery to you
• You have no plan
• No coherence
• No vision

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No Coherence
Priorities - fragmented behaviours, not
lifestyles Coordination - finance and health
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No consistency
what link is there between your presence, your
identity, now and ten years ago? Where are
your brands? What is your strategic aim?
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What is your strategic vision?
I dont think you have a clue about where you
want to be in five years time
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conclusion
Buy some tobacco shares
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ORDER OF SERVICE

• The first fifty years
• Continuing the learning from commerce the case
  of New Way Tobacco
• Into the promised land what lessons for us?

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Three Lessons From Gareth

• Strategic thinking
• Relationship marketing
• Competitive analysis

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1 Strategic thinking

• What is our overall goal?
• Better informed public?
• Informed self-destruction (Alcalay and Bell)
• Better health behaviour?
• Better public health?

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1 Strategic thinking

• What is our overall goal?
• Better informed public?
• Informed self-destruction (Alcalay and Bell)
• Better health behaviour?
• Better public health?
• Better lives

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1 Strategic thinking

• What is our overall goal?
• Make sure all our efforts are coordinated
  joined up social marketing remember the big
  picture

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joined up social marketing
To what extent does showing terrifying
commercials of speeding drivers mowing down
toddlers discourage parents from letting their
kids walk to school, play outside or generally
take the necessary exercise?
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joined up social marketing
To what extent does telling smokers that every
cigarette is doing them harm which conflicts
with Sir Richard Dolls (no less) data showing
that quitting at 35 or even 40 removes the
harmful effects of smoking actually generate
cynicism, disempowerment and recalcitrance about
other well meaning health advice from government?
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joined up social marketing
Remember even if we dont have an overt brand, we
do have an identity. The public must be forming
some impression of who is producing all these
campaigns. So are stakeholders
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1 Strategic thinking

• What is our overall goal?
• Make sure all our efforts are coordinated
  joined up social marketing the big picture
• Ask whose behaviour has to change

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Strategic Analysis

• The Case of Spina Bifida
• Birth defect, prevented by vitamin B folate
• Broccoli
• Supplements
• Classic social marketing response change
  womens behaviour encourage them to consume more
  of both

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Strategic Analysis

• The Case of Spina Bifida
• Product actual (diet) augmented (eg broccoli,
  supplements)
• Place good broccoli in local shops
• Price keep it cheap make it tasty
• Promotion broccoli is fun as well as healthy

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Strategic Analysis
The Case of Spina Bifida But
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Strategic Analysis
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Strategic Analysis
...of pregnancies are unplanned pedestrians dont
wear crash helmets
Only 25 of women consumed enough folic acid
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Strategic Analysis

• The solution?
• Move upstream
• Get CDC and FDA to change their behaviour
• Fortify wheat, flour and corn
• It worked
• folate concentrates increased
• anencephaly and spina bifida rates decreased

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Strategic Thinking
Same applies to any behaviour we know that the
individual is, at best, only partly in
control Ample theoretical support for checking
how far upstream to go
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Strategic Thinking

• Critical theory
• Media advocacy
• Social cognitive theory

• 4. Social learning theory
• 5. Community organisation
• 6. Social ecology

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Strategic Analysis
Improving diet Whose behaviour?
Immediate Environment Fruit and veg in local
shops is expensive and poor quality
Wider Social Context Eating burgers is normal,
all American past time
Personal Characteristics Fatty foods are tasty
Health Behaviour
Improved Public Health
Independent Environmental Improvements Dietary
supplements in staple foods
Source Hastings et al (ibid)
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Strategic Analysis
Improving diet Whose behaviour?
Immediate Environment Fruit and veg in local
shops is expensive and poor quality
Wider Social Context Eating burgers is normal,
all American past time
Personal Characteristics Fatty foods are tasty
Health Behaviour
Improved Public Health
Independent Environmental Improvements Dietary
supplements in staple foods
Source Hastings et al (ibid)
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Strategic Analysis
Improving diet Whose behaviour?
Immediate Environment We are force fed high
energy food
Wider Social Context Food policy
Personal Characteristics Fatty foods are tasty
Health Behaviour
Improved Public Health
Independent Environmental Improvements Dietary
supplements in staple foods
Source Hastings et al (ibid)
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Strategic Thinking
Improving diet Whose behaviour?
Immediate Environment Fruit and veg in local
shops is expensive and poor quality
Wider Social Context Food policy
Personal Characteristics Fatty foods are tasty
Health Behaviour
Improved Public Health
Independent Environmental Improvements Dietary
supplements in staple foods
Source Hastings et al (ibid)
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Strategic Thinking
decisions taken at a governmental or
supra-governmental level have an enormous impact
on our diet
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Strategic Analysis
Yet we still view obesity as an individual
problem, and so does the Government. But the
epidemic is spreading at such an alarming rate
that it can no more be seen as an individual
failing than 19th century cholera epidemics could
be blamed on poor personal hygiene.
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Strategic Analysis
. Indeed, given the rate Americans are dying,
wed better start treating obesity as an
infectious epidemic (Washington Monthly, Dec
2001)
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Three Lessons From Gareth

• Strategic thinking
• Relationship marketing

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2 Relationship Marketing

• Commerce
• Paradigm shift
• Beyond the transaction

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Relationship Marketing
The with of partnership, rather than the to
of the 4 Ps
Less of the military metaphor - such as targets
and campaigns - more of the shared agenda and
mutual benefit
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Relationship Marketing
Customer service and satisfaction as well as sales
Tomorrow as well as today the life time value of
customers
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Relationship Marketing
We theorise that the presence of relationship
commitment and trust is central to successful
relationship marketing, not power and its ability
to condition others (Morgan and Hunt)
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Benefits for commerce
Relationship Marketing

• Stability and better planning because you get to
  know your customers
• Lower price sensitivity
• Up selling and cross selling build the brand

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Benefits for us
Relationship Marketing

• All of the above
• Behaviour doesnt change overnight
• Stages of change
• helpful relationships
• Emotional drivers
• NE Choices
• Smoking cessation

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Relationship Marketing
Relationships with whom?
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Relationship Marketing
A multi-relationship model of social marketing
Other social marketing organisations
Funders
Social marketing organisation
Controllers of the social context - eg. government
Employees
Consumers
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Three Lessons From Gareth

• Strategic thinking
• Relationship marketing
• Competitive analysis

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Competitive Analysis

• In the case of tobacco no surrender
• Other industries it is possible, but sup with a
  long spoon. Its about win-wins.
• Remember the need to be critical as well as
  cooperative
• It builds our brand we are independent of Wall
  Street
• It underlines the power of marketing commercial
  or social

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• Its also true to our roots
• social marketing is concerned with the
  application of marketing knowledge, concepts, and
  techniques to enhance social as well as economic
  ends. It is also concerned with the analysis of
  the social consequences of marketing policies,
  decisions and activities
• (Lazer and Kelly 1973)

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Conclusions

• Commercial roots moving beyond social
  advertising
• But remember marketing has evolved
• - Strategic analysis
• - Think relationships
• - Do your competitive analysis, build
  alliances but also remain critical

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Conclusions
We arent here to push people around, save the
Ministers blushes or apply sticking plasters. We
are the leaders of a social movement. We can
help ordinary folk and stakeholders make their
lives better.
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we have moved on from being an Opiate of the
People, to a Liberation Theology