Archivo de la categoria ‘Social Sector’

Cause Marketing: Love it or Hate it

Causegood.com estimates that cause marketing has grown in the past 15 years from $700 million to $2 billion. Cause marketing is growing rapidly and for a good reason: it simply works. It is a business strategy – not just an evolution of philanthropy – that strongly influences purchasing decisions.

It works by providing a growing funding stream for NGOs, reaching $1.9 billion in funds in 2015 in North America and developing a new donor base of millennials who want to support causes through the brands they patronise.

It works, evolves and innovates, as seen in some 2015-2016 cases:

-       Toms Shoes evolved from the “one-for-one concept” to “One Day Without Shoes”: using the Instagram platform where for every photo of bare feet that was tagged they gave a new pair of shoes to a child in need.

-       Doritos with the “It Gets Better” project: For every $10 donated, donors received a bag of rainbow chips. This is a new development called causejacking: when a brand rides the wave of a cause’s popularity.

-       Partnership between Subway and Coca-Cola: For every bottle of Dasani water sold in 2,200 participating US Subways, Coca-Cola donates 30 cents. A total of $125,000 has been donated to World Vision, the NGO that is the largest non-governmental supplier of clean water around the world.

-       Nivea India’s “Mom’s Touch” partnered with Aseema Charitable Trust, an organisation dedicated to providing quality education to children from marginalised communities.

-       Budweiser’s “Give a Damn”, broadcasted during the 2016 Super Bowl. Helen Mirren addressed drunk driving in a wonderfully witty spot in which the only commercial reference was a bottle and a mention of its cold temperature.

Meanwhile, tons of difficulties have been foretold from the NGO sector. A false solidarity in which the real winner is the for-profit company. An unhealthy lifelong dependence for these campaigns. A consumer who likes to maintain this altruistic vein through consumption practices. Consumers’ scepticism towards these campaigns. And thousands of ethical and mental barriers.

Now that Marmite suffers the consequences of the Brexit, let’s benchmark their claim. Cause marketing: do you love it or hate it?

 

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Little did I know…

The end of the academic year is a good time to look back on the impact we’ve had on our students. How have they experienced the impact of marketing on society? What have they learned? Theories, paradigms,….?

But forget all that! Instead, I’d like to use the STUDENT SERIES format to see what insights the students will share and what our true impact has been. This year, I’ve been truly fascinated by the story of Carmen Friedinger: age 22, coming from the Vienna University of Economics and Business for a semester abroad at ESADE, and seeking a career in marketing. If you can’t enrol in my subject, don’t worry: here’s an exciting trailer, brought to you by another student.

“I could start this blog post by pretending that it was my vast interest in the topic of social marketing that made me choose this class. But I think it will be more interesting to read the truth, so here you go: the main reason I decided to take this class was because of the great reviews some students from my home university in Vienna gave the professor, and the fact that they said how fun and easy it was to come up with a plan for collaboration between an NGO and Spanish companies. Little did I know! Truth be told – it did not actually turn out to be so easy for my group and me. Of course, the professor and the guest speakers were all very helpful and open to answering any of our questions and doubts – of which we had many! However, instead of just “finding a company to collaborate with and making a nice and easy project” we ended up spending hours and hours of discussion and careful consideration together. We found it very hard to come up with a plan for how to tell an NGO that seems so confident in its own appearance that what they need most of all is awareness of the hospital itself before they can properly promote their organisation and raise funds. We used our briefings with the guest speakers and the professor to figure out a way to let the NGO know that their image is not as great as they think it is – but without insulting them, as our goal was to win them over. BUT: instead of getting a clearer view of how to solve this problem, every one of them told us their personal opinion, which differed greatly from each other, making it harder for us to find a way to fulfil all their requirements. This point right here is what made this class a real challenge for us, and I think it is also what helped me most to improve my consulting skills, because in real life you will face similar situations. Moreover, as the class was taught in Spanish and our team was made up of students from all different universities (ESADE, Austin, Indiana, Paris and Vienna) it was very interesting to see how differently we all approached this project. Of course, the language barrier led to a couple funny moments, too. Overall, I think this class taught me a lot about how consulting projects take place in real life and how to overcome the hurdles of being in a very diverse project team.”

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Social marketing craftsmen: 2015 ESADE vintage

This year, I am once again proud to present two projects that our students are developing alongside faculty members according to the problem-based service learning methodology. Year after year, this is one of our best teaching experiences –the sort of project that, in the words of the professors, “gives meaning to our work, experience and dedication”.

-          The ACIDH group is working with an NGO focused on persons with limited intelligence (PLI) with the marketing objective of increasing their online presence.

-          The blood bank group is once again fighting to increase blood donations on our campus, in terms of both total donations and first-time donors. Great claim (“product costs nothing, but worth everything”), great video

Both projects are developed in a way that allows students to reach their own conclusions about whether marketing is a way to address social problems. And they decide what kind of impact they want to have in their professional career (to quote Seth Godin, “the impact comes from the craftsman, not the tool”).

So far, they have convinced various marketing professors to join the cause – which is easier than an ice bucket challenge.



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Better to be feared than loved

Machiavelli used both concepts, to be feared and to be loved, as alternative strategies to succeed. Nearly 500 years later, Joseph Nye coined the term soft power to reflect the loved option. And today it’s a marketing strategy.

Soft power is a term coined by Joseph Nye in 2004. The origin of the word was the concern that Nye, former US Under-Secretary of Defense, had with ways in which nations could exert power other than by coercion through force. Soft power was seen as diplomacy aimed at attracting support, creating benevolent disposition, using the power of attraction, subtle persuasion, seduction. “In individuals, soft power rests on the skills of emotional intelligence, vision and communication; in nations it rests upon culture, values and policies.”

Soft power is now a market orientation concept: it is the ability to get what you want by attracting and persuading others to adopt your goals. Heed Nye’s warning: “Soft power is a dance requiring partners.”

Given that we as a human brand, our company as a competitor, will hardly have hard power to succeed (formulas, new raw materials, better technical quality), we focus on our potential soft skills. Or maybe we could apply psychologist Peter Cooper’s statement: “a brand as being like an egg – a hard shell outside, and a soft yolk inside.” Let’s see some cases.

-       Innocent drinks are one of the best embodiments of soft power in a brand: an amiable approach, sponsoring for instance “the big knit” by paying 35 p. to Help the Aged for every woolly hat knitted for its smoothies.

-       Toyota chairman, forced to recall a staggering 8.5 million cars, apologized with “I myself, as well as Toyota, am not perfect.”

-       South Korea has increased its popularity since the ’90s thanks to the Hallyu phenomenon, “the Korean Wave”: K-pop, intense use of YouTube, and efforts to become a centre of excellence in design.

-       Barcelona competing with Rome or Paris as a tourist destination, through soft skills: people, weather, food, shopping…

So let’s think about Machiavelli advice; do you prefer to be feared or loved? Although we must acknowledge the whole quotation: “It is better to be feared than loved, if you cannot be both.” Let’s give to Caesar what is Caesar’s.

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Big players, big marketing

Is social marketing for real? We often get this question during Q&A after our sessions at ESADE, in both the BBA and Executive Education programmes. Social marketing sounds appealing – especially to managers – but is it for real?

Let’s take a look at some big players recently mentioned by Knowledge@Wharton:

-          Amy Chen wanted to put PepsiCo on the cutting edge of figuring out new business models that generate revenue while also having a social impact. She developed a plan for a social business incubator and was given one hour to pitch it to PepsiCo CEO Indra Nooyi. Thus was born Food for Good, an initiative whose mission is “to make healthy food physically and financially accessible for low-income families through sustainable, business-driven solutions”. It’s a fascinating social approach. In marketing terms, as Amy noted, “The task of selling oatmeal to someone is a lot harder than getting them to eat a bag of Doritos.”

-          On March 16, Howard Schultz launched Starbucks’s “Race Together” campaign: the company’s baristas were asked to write the words “Race Together” on customers’ cups as a way to stimulate conversations on race issues. The final result: customers were skeptical, thinking there was an ulterior motive. But, as Prof. Kenneth Shropshire said, “Starbucks is the kind of enterprise that can really have an impact in the long run.” Schultz has no intention of giving up, and will keep trying to stimulate conversations and empathy.

-          Under new CEO Steve Easterbrook, McDonald’s recently announced that its US locations would stop selling chicken raised with antibiotics, in an effort to provide safe and healthy food. Difficulties are expected; McDonald’s is still expected to be the fastest and the cheapest. But Steve Easterbrook thinks of himself as an “internal activist”, eager to change the way his company is perceived through a strategic move that has been described as smart marketing that is also beneficial to customers’ health.

As leaders and internal activists, these three CEOs are surfing the markets, thinking ahead to understand what the market wants, and not being cocky by going into a wave that could crush them. Big players, big marketing, real impact.

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Amending Drucker

While NGOs are struggling for revenue in Spain – where, before the economic crisis, 82% of their income came from the state – I’ve been re-reading an article by Drucker entitled “What Business Can Learn from Nonprofits”, which in 1989 caused a commotion among readers of the Harvard Business Review.

While I’ve been re-reading Drucker’s assertion that NGOs are leaders in the most crucial area of management — the motivation and productivity of knowledge workers — I’ve also been working on the final post-mortem report on the subjects taught at ESADE with the service learning methodology. And I have found that, in their responses to a satisfaction survey, 80 international students described the experience of applying management in NGOs (Arrels Foundation for homeless care and Josep Carreras Foundation for bone marrow donations) in terms such as the following: “Really one of my best courses throughout my entire higher education; “It’s been a long time since a subject motivated me this much”; “A unique experience for someone who wants to go into business: dealing with clients, the importance of stakeholders, the importance of results, and social impact”.

These are future millennial managers who dream of careers at McKinsey, Procter & Gamble or Apple. But this was a real project, with sales and results, applied to NGOs, where they experienced a true adrenaline rush.

Drucker noted 25 years ago that “when I ask executives why they volunteer, too many say “because there isn’t enough challenge in my job”. Drucker, forgive me: let’s amend this headline. Today, I propose an article entitled “What Business Can Buy from Nonprofits: Passion and Employee Commitment”. Such a model would lead to more income for NGOs, thanks to the solid value proposition; greater societal impact in the terms defined in the NGOs’ mission statements; and companies that gain from being able to providing greater challenges.

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Change thyself

“Everyone thinks of changing the world, but no one thinks of changing himself.” This Leo Tolstoy quote was used in a recent McKinsey Quarterly article suggestively titled “Change leader, change thyself”.

Management scholars are forever researching companies that are changing the world or leading change towards a better world. Porter’s shared value strategies, JWT’s circular economy, Kotler’s marketing 3.0, Fordham University’s positive marketing…

On this topic, Prof. Mònica Casabayó and I have shared many experiences, cases and concerns. We have very different viewpoints, as is fitting for a plural school like ESADE. But in our research we have studied whether managers are generating change simply because they wish to change themselves. Business professionals are the same people who buy things, who have a family and a home, and who are concerned about the degeneration of our model and about unsustainability.

All this is covered in the new book Soul Marketing. We have asked various professionals who collaborate with ESADE to tell us about cases of business leaders who are changing the world by first changing themselves. They’re doing this by appealing to their stakeholders and creating value for them. Danone, Ecoembes, Roll’eat and Casa Camper are just some of the cases in which we have seen this sort of change.

Drops fill the ocean. We hope that the book presentation on 4th December, hosted by the ESADE Alumni Marketing Club, will generate minor impacts that help to bring about many individual minor changes.

 

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Learning marketing through service

“What a fascinating time I’ve just had in the classroom: one of the best professional, educational and personal experiences of my career.” When you hear this from a visiting executive who was formerly VP of Marketing at one of the largest FMCG multinationals in the US, you know something interesting happened in that classroom: the first session of the new Social Marketing subject of the ESADE BBA, which uses the Service Learning methodology.

ESADE has developed a programme that uses the Service Learning methodology in several BBA subjects. In case you are unfamiliar with this methodology, it can be summed up as pure experiential marketing. Service learning is a powerful educational experience where interests mesh with information, values and beliefs are formed, and action results.

The students get a lot out of this experience. Let’s summarise: they explore careers; build their resumes; gain valuable work experience; learn new skills; learn things that will benefit them for the rest of their lives; improve their self-esteem; develop a sense of personal satisfaction, initiative, independent reasoning and independent learning; enhance skills learned from experience (observing, asking questions, applying knowledge); develop social responsibility and concern for the welfare of others; as well as a list of benefits analysed in depth by Genie Black.

What’s more, we will help to increase the blood reserves at Catalonia’s blood bank, assist with the Arrels Foundation’s collection of blankets and winter trousers for the homeless, strengthen the knowledge and prospects of the DID-Áctica project for young people with minor disabilities, and participate in a bone marrow donor registration drive with the Josep Carreras Foundation.

The students will do marketing – lots of very good marketing. Although the main objective for the students is reflective observation – watching, listening, recording, discussing and elaborating on the experience – we will also achieve real marketing results. Marketing that has a direct impact on society.

The donation week will be at ESADE Sant Cugat the week of 21st November. Don’t miss out!

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A bunch of slacktivism, neknominations and ice buckets

The Ice Bucket Challenge has generated, in addition to more than ten million dollars in funding in the US and nearly 10 million uploads to YouTube, accolades such as that pronounced by Wharton, describing it as a phenomenal marketing campaign.

The project, which was launched when Pete Frates challenged his friends, has given rise to various readings, regarding social network marketing, social marketing and third sector management. It has also generated the usual ethical criticism of the limits to NGO fundraising: the participants don’t learn anything about the cause, they participate for essentially selfish reasons dressed up as altruism, and they do it to look good for their friends. It’s just slacktivism, a feel-good way to support a cause whose only positive effects are on the participants themselves. Welcome to the world of real people.

The Ice Bucket Challenge reminds us how to create value based on insights into people. People like simplicity (all they need is a mobile phone and a friend to film them). They use social media to amplify their narcissism. They want to do good if it makes them feel good, if it’s cool. People are motivated by and participate in activities like milking and neknomination. We climb on board the latest meme so long as it can be personalized, so long as it doesn’t require us to sacrifice our own identity, but rather lets us project it instead. Fun, easy, popular.

The Ice Bucket Challenge is not a sustainable fundraising strategy for the third sector: no organization can survive on sporadic viral online campaigns. However, the market-oriented approach is sustainable: creating value for people, offering activities that create value for them, accepting the mediocrity of human nature, so long as whatever we do is in keeping with our organization’s vision and values.

There are three approaches to the Ice Bucket Challenge: criticize people for disguising their narcissism as altruism, design promotions willing to “take the money wherever it comes from”, or learn about insights into people to increase the value our cause can create. Which one do you choose?

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Marketing that isn’t marketing

When marketing works, it finds trends that provide opportunities for brands. The resulting innovation in marketing means looking for the “next big thing”. Social marketing puts social customers’ needs on the same level as those of the company, resulting in win-win arrangements with society.

Trendwatching fascinates its audience by detecting the novelties that accompany consumers’ insatiable desire to try new things — also known as Newism. The following are some of the innovations linked to social-marketing trends that were highlighted in the most recent Trendwatching report:

-          Consumers’ changing mobile attitudes. In the Philippines, fast-food players McDonald’s and Coca-Cola have launched BFF Timeout. This app rewards users for putting away their smartphones while they are hanging out with friends. Results are posted publicly on a leaderboard.

-          Consumers expect brands to contribute to social progress. This year, a Unilever-owned brand of cleaning products called Cif launched Clean Romania, an initiative to remove racist graffiti. Using a specific app, users can upload photos of racist graffiti. The brand then dispatches clean-up teams and posts “before” and “after” photos online.

-          Brands are making requests of their consumers. During the launch of The Walking Dead, Fox Portugal gave away promotional merchandise in exchange for donated blood. The initiative was a pop-up store organised in collaboration with the local blood bank.

-          Brands are prioritising customer needs. The Brazilian suncare brand Sol de Janeiro trained 450 tattoo artists to interpret skin lesions and the basic signs of skin cancer. They explain the symptoms to their customers and advise them to see a dermatologist for a full diagnosis.

-          Inefficiencies in our current systems are being targeted. PareUp launched a mobile app that enables restaurants and grocery stores to offer consumers food would otherwise be thrown away. Discounted prices give consumers more for less and help to reduce food waste, thereby creating win-win situations.

Does it look like marketing? Does it work? Does it create social value?

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