Social Marketing: Three Concepts and three Principles.
Social marketing is an effective trend in Europe and around the world for many years. It is not marketing in social media, not a charity, it is an effective mechanism for the development of products and services that responds modern challenges of the society.
The essence of social marketing today.
Nowadays more and more corporations start dealing with the society problems. The days when it was possible to be successful by satisfying only the consumer demand are gone. Companies have to solve the society problems , so they could look good and attractive in the consumer’s eyes. Now it is called social marketing and corporative social responsibility.
Many people familiar with the commercial marketing suppose its concept is only about trading or advertising activities. In practice, social marketing covers virtually all areas of the company. Do not confuse social marketing with the charity.
Currently, social marketing is divided into three components: Sponsorship (brand promotion), fundraising, and sales promotion.
Sponsorship — is the most popular form of social marketing. As a rule, it provides specific assistance to individual groups. It serves as a demonstration of the fact that the company cares about the society. Typically, sponsorship is directed to the poor and causes a certain resonance in the media or to the sport events that gives a good advertising response.
A sponsor, in contrast to the investor finances without the purpose of obtaining a material benefit or participate in making a profit.
Sponsorship is also becoming increasingly important in education.
Companies want to see their logo on a supported object in a variety of forms. The Formula One teams have long relied on the income from tobacco advertising, reflected on the hulls of the cars teams. Other types of sponsoring companies is sponsoring all sorts of events and shows, covering a variety of events at the same time bearing the name of a sponsor.
Often companies subsidize for free to create a friendly image in the society, which provides them with a good reputation. However, sponsorship is increasingly being used in order to benefit from cooperation with the advertising the trademark of the subject, which in the end such cooperation receives financial support in one form or another.
Fundraising — a complex of measures aimed at bringing together disparate resources to improve the socio-economic situation of the region in which these resources are located. Fundraising includes activities such as collecting funds through the industrial companies, tenders for grants from foundations, business combination to create an important social project and so on. It is now widely used to collect donations via the Internet (ie. “Crowdfunding”). In particular, the fund-raising is the main way to finance Wikipedia.
Important aspects of the fundraising strategy are:
Ø Writing of the business plan.
Ø Writing of the sponsorship proposal.
Ø A clear definition of the target audience of the project to further define the potential sponsors.
Ø The establishment of the relationship with partners that meet the interests of both sides.
Ø Proper closure of the project (includes work with the partners after the project is to create opportunities for further long-term cooperation).
An important aspect of the preparation of the sponsorship proposal is to allocate specific sponsorship packages for the general sponsor, the exclusive sponsor, media sponsor, etc. with different conditions of cooperation and privileges. The cost of the sponsorship package may reach several million euro, depending on the project scale or format, geography, and the target audience.
Sales promotion — it’s an action aimed of building specific ownership to the consumer (customer) to any charitable or socially useful activities. At the heart of these events there is a short-term increase in sales by providing certain benefits to the buyer.
Ø loyalty program
Ø the provision of free samples
Ø gift suggestions
Ø contests and sweepstakes
A significant portion of the production is sold via resellers. Therefore, they require special attention, including stimulation. Resellers can receive price discounts depending on the volume of the goods that they buy or manufacturer can provide free training of individual employees of the company proxy.
In addition, the sales team has a very important significance in the system of sales. However, except for qualitative selection of employees is necessary and adequate incentives. Proper stimulation of sales personnel is carried out by the wage system.
The goals and objectives of social marketing.
The aim of social marketing acts is an adequate perception of the specific target audience of social ideas and practices, as well as “consumer welfare in the long term, not just short-term satisfaction of their needs”
Social Marketing Objectives:
1) Strengthening of the brand in the eyes of consumers.
2) Improving the quality and living conditions of the target group.
Social marketing owes its emergence as a scientific discipline thanks to Kotleru and Saltman, who were among the first ones allowed the possibility of marketing use of the product promotion mechanisms, as mechanisms to promote the ideas, models of attitude and behavior.
F.Kotler and Dzh.Zeltman define social marketing as follows:
social marketing — is the development, implementation and monitoring of programs that embody two important components: the ability to have an impact on current social ideas and the presence of such aspects as the product planning, calculation its value, the choice of channels of communication and distribution, and marketing research. Thus, social marketing — is the use of techniques and marketing principles to optimize the existing social activities and their transformation into effective programs with more advanced communications component, i.e the program more responsive to the needs of the target audience.
Social marketing is much broader social advertising and even social communications.
The difference between the approaches of social advertising and social marketing is that social advertising advantage is only for the media channels and does not control the response to its information message, leaving the natural social processes responsible for its formation. Social marketing, by contrast, uses the communication process of earlier stage. Information sending starts and discusses in this environment in order to enhance its memorability, impact and penetration impact exerted.
Thus, social marketing is not governed by the bilateral relationship on the line-organization — suppliers, customers and constituents, involving along with the organization of the supplier and the consumer has also a society.
In other words, social marketing aims to link the interests of the organization, suppliers, customers and society as a whole through action on the social behavior for the benefit of society, and not for the benefit of the marketer, this is its essential difference from other types of marketing.