Dr Stephen Dann Senior Lecturer Marketing Management and International Business The Australian National University
Defending the Bureaucrats <ul><li>Who created the internet? </li></ul><ul><li>Government Bureaucracy </li></ul><ul><li>Cor...
Following through… <ul><li>Have we talked to GPs about what the GPs want? </li></ul><ul><ul><li>Education sessions have ti...
Following through… <ul><li>Is it shock campaigning when it’s a slice of life campaign? </li></ul><ul><ul><li>Hidden Road T...
Following through… <ul><li>Generation Y (and us GenX) </li></ul><ul><ul><li>If GenY hates big brands, why do we Google? </...
Branding… <ul><li>Apple. </li></ul><ul><ul><li>iPod. eMac. iMac. Mac Classic. Newton. Tiger. OS/X. Mac 128km. Apple Lisa. ...
User Generated Content <ul><li>Let the information flow </li></ul><ul><ul><li>Blogs </li></ul></ul><ul><ul><ul><li>Self in...
Commercial Marketing Thinking for Government Marketing
Commercial Marketing <ul><li>an organizational function and a set of processes for creating, communicating and delivering ...
What makes it Marketing? <ul><li>Creation, communication and delivery. </li></ul><ul><ul><li>Marketing is more than commun...
Social Marketing <ul><li>a process that applies marketing principles and techniques to create, communicate, and deliver va...
What makes it social marketing? <ul><li>Marketing. </li></ul><ul><li>If there is no marketing,  </li></ul><ul><li>there is...
Adding commercial marketing thinking to Social Marketing
Three Themes <ul><li>Targeting consumers’ progress towards adopting a desired behaviour </li></ul><ul><li>Relationship mar...
Using Commercial Marketing for  Social Marketing Targeting consumers’ progress towards adopting a desired behaviour
Adopter Categories <ul><li>Innovators (7.5%) </li></ul><ul><ul><li>venturesome </li></ul></ul><ul><ul><li>Believes in the ...
Laggards (10%) <ul><li>Chronic Know-Nothings </li></ul><ul><ul><li>There’s an offer? </li></ul></ul><ul><li>Resistant  </l...
Why do we persist with Laggards? <ul><li>Laggards are seen as  </li></ul><ul><ul><li>the highest risk (CSA) </li></ul></ul...
Relationship Marketing
Starting with the relationships <ul><li>What is relationship marketing? </li></ul><ul><ul><li>establish, maintain, and enh...
Keys to Relationship Marketing <ul><li>Trust  </li></ul><ul><ul><li>willingness to rely on a partner in an exchange </li><...
How’s that help government marketing? <ul><li>Trust, reciprocity and commitment underpin long term engagement between busi...
Government Marketing  Relationship Marketing <ul><li>Relationship reciprocity involves the non-monetary aspects of the mar...
Using Commercial Marketing for  Social Marketing Interpreting consumer research to create new opportunities (and challenges)
Step 1. Talk to the intended audience <ul><li>Ask the target audience about the issue/idea </li></ul><ul><ul><li>Get the i...
Step 2. Get ready to make a deal <ul><li>Offer a solution to the problem  (if they’ve said there’s a problem)   </li></ul>...
Step 2.5 <ul><li>Do not offer “health”.  </li></ul><ul><li>Nobody actually cares about their health.  </li></ul><ul><li>Pe...
Step 3. Decide and offer <ul><li>Go back to the people from Step 1 </li></ul><ul><ul><li>Talk to them about the offer </li...
Step 4: Don’t cheat <ul><li>Don’t cheat. </li></ul><ul><ul><li>Switching to legislative enforcement when our social change...
Step 5. Measuring… <ul><li>Traditional Media is easier to measure  </li></ul><ul><ul><li>Radio is in the background </li><...
Summary
Learning from Commercial Practice <ul><li>If you’re going to use marketing, then you make an offer, and if the market reje...
90 second summary <ul><li>Talk to the end user </li></ul><ul><li>If it’s new to you, check it’s new to the target marketin...
The iPod Social Change approach means overnight success after decades of missing the mark.
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Commercial Marketing Thinking for Government Marketing

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Presented to the IQPC Government Marketing Conference in Canberra, on 22 Feb 2007. This is the modified version of the slides which incorporated references to other presentations at the conference. The slide's primary thematic structure is the use of commercial marketing theory and practice in non commercial applications in government and charity work.

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Commercial Marketing Thinking for Government Marketing

  1. 1. Dr Stephen Dann Senior Lecturer Marketing Management and International Business The Australian National University
  2. 2. Defending the Bureaucrats <ul><li>Who created the internet? </li></ul><ul><li>Government Bureaucracy </li></ul><ul><li>Core Principle of the Internet </li></ul><ul><li>Multiple Redundancies. </li></ul>
  3. 3. Following through… <ul><li>Have we talked to GPs about what the GPs want? </li></ul><ul><ul><li>Education sessions have time costs. </li></ul></ul><ul><ul><ul><li>$ + lost opportunity to see patients + patient backlog </li></ul></ul></ul><ul><ul><li>Giving them something they want </li></ul></ul><ul><ul><ul><li>Information/systems – CSA </li></ul></ul></ul><ul><li>Take calculated decisions </li></ul><ul><ul><li>Risk is part of decision making. </li></ul></ul><ul><li>Talking of “government” in the language we talk about “retail sector” </li></ul>
  4. 4. Following through… <ul><li>Is it shock campaigning when it’s a slice of life campaign? </li></ul><ul><ul><li>Hidden Road Toll </li></ul></ul><ul><ul><li>A Healthy Fish Message </li></ul></ul><ul><li>Shift towards media as friend of government </li></ul><ul><ul><li>Giving the media something they want </li></ul></ul><ul><ul><ul><li>Community buy in with road safety </li></ul></ul></ul><ul><ul><li>Not the enemy, allies with needs </li></ul></ul><ul><ul><ul><li>They need content, marketshare and messages </li></ul></ul></ul><ul><ul><li>Press releases punch harder than blog posts </li></ul></ul><ul><li>Time to end the “Death by a thousand ducks” strategy </li></ul><ul><ul><li>Relevance beats nagging </li></ul></ul>
  5. 5. Following through… <ul><li>Generation Y (and us GenX) </li></ul><ul><ul><li>If GenY hates big brands, why do we Google? </li></ul></ul><ul><ul><ul><li>iPod is a big brand </li></ul></ul></ul><ul><ul><li>Research GenY as people not assumptions </li></ul></ul><ul><li>Avoid the GenX trap </li></ul><ul><ul><li>GenerationX was a term from a novel written by a baby boomer who took the term from a 1970s band who were named after a 1950s film. </li></ul></ul><ul><ul><ul><li>Assumptions of the nature of generation based on characters in a fiction novel </li></ul></ul></ul>
  6. 6. Branding… <ul><li>Apple. </li></ul><ul><ul><li>iPod. eMac. iMac. Mac Classic. Newton. Tiger. OS/X. Mac 128km. Apple Lisa. ClarisWorks. </li></ul></ul><ul><ul><li>Pity they can’t handle consistent branding </li></ul></ul><ul><li>Nature of the political system of the democratic society is the change of management at the change of election. </li></ul><ul><ul><li>It’s a feature, not a bug. </li></ul></ul><ul><ul><li>When a commercial organisation is bought out by a rival, what happens to the brand? </li></ul></ul>
  7. 7. User Generated Content <ul><li>Let the information flow </li></ul><ul><ul><li>Blogs </li></ul></ul><ul><ul><ul><li>Self interest publications </li></ul></ul></ul><ul><ul><ul><li>Self selected volunteer product placement </li></ul></ul></ul><ul><ul><li>Websites </li></ul></ul><ul><ul><ul><li>User generated content </li></ul></ul></ul><ul><ul><li>Community </li></ul></ul><ul><ul><ul><li>Cybercommunities of shared self interest </li></ul></ul></ul><ul><ul><li>Social Media </li></ul></ul><ul><ul><ul><li>Youtube/Wiki/GoogleVideo/Blogs </li></ul></ul></ul>
  8. 8. Commercial Marketing Thinking for Government Marketing
  9. 9. Commercial Marketing <ul><li>an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders” </li></ul><ul><ul><li>(AMA 2004) </li></ul></ul>
  10. 10. What makes it Marketing? <ul><li>Creation, communication and delivery. </li></ul><ul><ul><li>Marketing is more than communication </li></ul></ul><ul><li>Value for Benefit </li></ul><ul><ul><li>Serving the self interest of the individual in the name of the self interest of the organisation </li></ul></ul><ul><li>Exchange </li></ul><ul><ul><li>The process is designed to be implemented so that everybody involved gains during the exchange </li></ul></ul>
  11. 11. Social Marketing <ul><li>a process that applies marketing principles and techniques to create, communicate, and deliver value in order to influence target audience behaviors that benefit society (public health, safety, the environment and communities) as well as the target audience </li></ul><ul><ul><ul><li>Philip Kotler, Nancy Lee and Michael Rothschild (2006) in Social Marketing: Influencing Behaviors for Good (SAGE Publications) 2007. </li></ul></ul></ul>
  12. 12. What makes it social marketing? <ul><li>Marketing. </li></ul><ul><li>If there is no marketing, </li></ul><ul><li>there is no social marketing </li></ul><ul><li>(and no government marketing either) </li></ul><ul><li>…Marketing is not something we can just make up as we go along because someone put ‘‘social’’ in front of it. We all need to read a marketing textbook… </li></ul><ul><ul><ul><li>Smith, 2006, Social Marketing Quarterly </li></ul></ul></ul>
  13. 13. Adding commercial marketing thinking to Social Marketing
  14. 14. Three Themes <ul><li>Targeting consumers’ progress towards adopting a desired behaviour </li></ul><ul><li>Relationship marketing </li></ul><ul><li>Interpreting consumer research to create new opportunities (and challenges) </li></ul>
  15. 15. Using Commercial Marketing for Social Marketing Targeting consumers’ progress towards adopting a desired behaviour
  16. 16. Adopter Categories <ul><li>Innovators (7.5%) </li></ul><ul><ul><li>venturesome </li></ul></ul><ul><ul><li>Believes in the cause / identifies the solution </li></ul></ul><ul><ul><ul><li>(eCensus) </li></ul></ul></ul><ul><li>Early Adopters (12.5%) </li></ul><ul><ul><li>Respectful </li></ul></ul><ul><ul><li>Strong advocate for the cause </li></ul></ul><ul><ul><ul><li>eCensus (10%) </li></ul></ul></ul><ul><li>Early Majority (35%) </li></ul><ul><ul><li>Deliberate </li></ul></ul><ul><ul><li>Informed choice and calculated behavior </li></ul></ul><ul><ul><ul><li>NSW Library (48%) </li></ul></ul></ul><ul><li>Late Majority (35% </li></ul><ul><ul><li>Skeptical </li></ul></ul><ul><ul><li>Will try it once, but need to be shown the results </li></ul></ul><ul><ul><ul><li>ABS Census (77%) </li></ul></ul></ul>
  17. 17. Laggards (10%) <ul><li>Chronic Know-Nothings </li></ul><ul><ul><li>There’s an offer? </li></ul></ul><ul><li>Resistant </li></ul><ul><ul><li>Don’t want the offer </li></ul></ul><ul><li>Grudging Acceptance </li></ul><ul><ul><li>Adopts when they don’t have a choice </li></ul></ul><ul><li>Traditional </li></ul><ul><ul><li>set in the ways </li></ul></ul><ul><li>Conscious Choice Rejecters </li></ul><ul><ul><li>Well informed, well educated, aware of the benefits and costs of the activity, and have declined your offer anyway. </li></ul></ul><ul><li>Cautious Super Adopters </li></ul><ul><ul><li>Waits for the market to calm down, then picks up the most recent, newest and most stable version </li></ul></ul>
  18. 18. Why do we persist with Laggards? <ul><li>Laggards are seen as </li></ul><ul><ul><li>the highest risk (CSA) </li></ul></ul><ul><ul><li>most at need (Cancer Council) </li></ul></ul><ul><ul><li>greatest problem to be solved (CSA) </li></ul></ul><ul><ul><li>most resistant (5% unaware of Census) </li></ul></ul><ul><ul><li>really good news stories (NSW Food Authority) </li></ul></ul><ul><ul><li>most likely to die if we cut them off (TAC) </li></ul></ul><ul><ul><li>marginalized group / special interest group </li></ul></ul><ul><ul><li>probably the reason for the campaign being approved by the minister in the first place </li></ul></ul>
  19. 19. Relationship Marketing
  20. 20. Starting with the relationships <ul><li>What is relationship marketing? </li></ul><ul><ul><li>establish, maintain, and enhance relationships with customers and other partners, </li></ul></ul><ul><ul><li>at a profit, </li></ul></ul><ul><ul><li>so that the objectives of the parties involved are met. </li></ul></ul><ul><ul><li>This is achieved by a mutual exchange and fulfillment of promises. </li></ul></ul><ul><li>Social profit is the outcome having benefits greater than the costs </li></ul>
  21. 21. Keys to Relationship Marketing <ul><li>Trust </li></ul><ul><ul><li>willingness to rely on a partner in an exchange </li></ul></ul><ul><ul><li>level of confidence in the other partner, </li></ul></ul><ul><ul><li>belief in the trustworthiness </li></ul></ul><ul><ul><li>reliance on the other partner to perform </li></ul></ul><ul><li>Commitment </li></ul><ul><ul><li>perceived need to continue the relationship, either due to the inherent value of staying or the cost of departure </li></ul></ul><ul><li>Reciprocity </li></ul><ul><ul><li>notions of equality in the transaction, </li></ul></ul><ul><ul><li>value-for-value exchange </li></ul></ul><ul><ul><li>mutual obligation between partners in the relationship. </li></ul></ul>
  22. 22. How’s that help government marketing? <ul><li>Trust, reciprocity and commitment underpin long term engagement between business and consumer </li></ul><ul><li>Government Marketing and Relationship Marketing </li></ul><ul><ul><li>Relationship with the customer is for the long term </li></ul></ul><ul><ul><li>Need to deliver to the audience </li></ul></ul><ul><ul><ul><li>Meet goals </li></ul></ul></ul><ul><ul><ul><li>Build trust </li></ul></ul></ul><ul><ul><ul><li>Keep promises </li></ul></ul></ul><ul><li>Long term value of a trusted exchange between two parties </li></ul>
  23. 23. Government Marketing Relationship Marketing <ul><li>Relationship reciprocity involves the non-monetary aspects of the marketing relationship and includes: </li></ul><ul><ul><li>increased stability between relationship partners </li></ul></ul><ul><ul><li>reduced risk in supplier selection </li></ul></ul><ul><ul><ul><li>Who to trust for social change information </li></ul></ul></ul><ul><ul><li>increased efficiencies over the course of the relationship </li></ul></ul><ul><ul><ul><li>Less resources spent on proofing trustworthiness </li></ul></ul></ul>
  24. 24. Using Commercial Marketing for Social Marketing Interpreting consumer research to create new opportunities (and challenges)
  25. 25. Step 1. Talk to the intended audience <ul><li>Ask the target audience about the issue/idea </li></ul><ul><ul><li>Get the issue in their language </li></ul></ul><ul><ul><li>Get the key issue for the audience </li></ul></ul><ul><ul><ul><li>TAC – fear of permanent injury greater than death </li></ul></ul></ul><ul><li>What are they looking for… </li></ul><ul><ul><li>Do they enjoy the current behavior? </li></ul></ul><ul><ul><li>What’s good about it? </li></ul></ul><ul><ul><li>Why do they do it? </li></ul></ul><ul><ul><li>Do they want to change? </li></ul></ul><ul><ul><li>What are the barriers they feel get in the way? </li></ul></ul>
  26. 26. Step 2. Get ready to make a deal <ul><li>Offer a solution to the problem (if they’ve said there’s a problem) </li></ul><ul><ul><li>CSA and the army </li></ul></ul><ul><li>Offer a better deal (if they’re okay what they’re doing) </li></ul><ul><ul><li>Cancer Council Smoke Free Houses </li></ul></ul><ul><li>Offer something to think about (if they’re unaware) </li></ul><ul><ul><li>TAC, Hidden Road Toll </li></ul></ul><ul><li>Making the offer </li></ul><ul><ul><li>Be specific </li></ul></ul><ul><ul><li>Be direct </li></ul></ul><ul><ul><li>Be obvious </li></ul></ul><ul><ul><li>Be confident you can make a second offer later </li></ul></ul>
  27. 27. Step 2.5 <ul><li>Do not offer “health”. </li></ul><ul><li>Nobody actually cares about their health. </li></ul><ul><li>People care about what health lets them do. </li></ul><ul><ul><li>“improved health” is not “keeping up with the kids” </li></ul></ul><ul><li>Appeal to self interest </li></ul>
  28. 28. Step 3. Decide and offer <ul><li>Go back to the people from Step 1 </li></ul><ul><ul><li>Talk to them about the offer </li></ul></ul><ul><ul><li>Make them an offer </li></ul></ul><ul><ul><li>See how they react </li></ul></ul><ul><ul><li>Make calculated decisions about your offer </li></ul></ul><ul><ul><li>Be ready to change the offer, scrap the offer or upgrade and supersize their social change </li></ul></ul><ul><ul><li>Build a relationship based on being honest, trustworthy and holding up your end of the deal </li></ul></ul><ul><li>Don’t cheat </li></ul>
  29. 29. Step 4: Don’t cheat <ul><li>Don’t cheat. </li></ul><ul><ul><li>Switching to legislative enforcement when our social change campaigns fail to take a grip is cheating. It's saying that if you won't play nicely, we'll force you to play. </li></ul></ul><ul><li>Cheating defeats trust. </li></ul><ul><ul><li>You will do because we enforce, not because we trust </li></ul></ul><ul><li>Cheating says there’s no reciprocity. </li></ul><ul><ul><li>You will do, or else. </li></ul></ul><ul><li>Cheating kills the commitment </li></ul><ul><ul><li>Do it because we said so, not because you’re actually committed to holding up your end of the deal </li></ul></ul>
  30. 30. Step 5. Measuring… <ul><li>Traditional Media is easier to measure </li></ul><ul><ul><li>Radio is in the background </li></ul></ul><ul><ul><ul><li>Recall of the radio advert? </li></ul></ul></ul><ul><ul><li>Radio has held market share </li></ul></ul><ul><ul><ul><li>Radio used with the internet/computing </li></ul></ul></ul><ul><li>Measuring non traditional media? </li></ul><ul><li>Measure non traditional target markets </li></ul><ul><ul><li>Did the ads reach the gatekeepers and the opinion makers? </li></ul></ul>
  31. 31. Summary
  32. 32. Learning from Commercial Practice <ul><li>If you’re going to use marketing, then you make an offer, and if the market rejects the offer, you go back and try again. </li></ul><ul><li>Keep making different offers until you quit or you beat the current market. </li></ul><ul><li>Ask Apple about how many different offers it took to be the guys who made the iPod an overnight success. </li></ul>
  33. 33. 90 second summary <ul><li>Talk to the end user </li></ul><ul><li>If it’s new to you, check it’s new to the target marketing before declaring it innovative. </li></ul><ul><li>Highest at-risk is quite likely to be hardest to change </li></ul><ul><li>Use the marketing frameworks </li></ul><ul><li>“Government” isn’t a monolith </li></ul>
  34. 34. The iPod Social Change approach means overnight success after decades of missing the mark.

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