November 19, 2017

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Marketing to – and Connecting With – Your Next Billion

Companies who assume that their 'Global North’ engagement models are going to work in new markets are going to be a day late and a dollar or rupee short.

Davidwilcox

By David Wilcox

TV advertisers are watching as millennials and their family members – especially their parents – who have adopted similar socially conscious views increasingly populate prime demographics. One outcome of these increasingly “sustainability-supporting demographics” is that advertisers and corporate leaders are now actively exploring how they can persuade their global customer base that they “get it” too.

In the Rush for Social Media

Most agencies that guide the marketing world have been working hard these last few years to “get” how they can use social media. As a result, it is not surprising that many have missed the other major social movement that has erupted in the same time: social enterprise and social innovation. (Understand the differences between these two) While social media can influence customers, if you need to add a billion new customers (P&G’s goal) social enterprise, not social media, is developing the models to reach those numbers.

In the end, the “other social” oversight may be for the best since the knowledge and resources required to leverage the growing social enterprise movement actually exist at the intersection of companies and social enterprises. Corporate leaders must identify the problems they could step forward to address and seek out the most innovative organizations already solving those challenges. 

To do that, they must first answer this question: Who is the most innovative social business already solving “our challenge” and how can we drive their solution to scale? 

Then build partnerships with the innovators. Use new partnership models (like the one proposed in World Economic Forum: Where will the “Household Names” in Social Enterprise come from?) that shift resources from adding new social enterprises to the funnel and invest instead in scaling proven models that have the capacity to leverage corporate talent, technology and commitment.

Engaging Directly With Social Entrepreneurs

It is good news that the World Economic Forum is bringing Schwab Foundation social entrepreneurs to Davos. And the Skoll World Forum on Social Entrepreneurship – the largest annual gathering of social billboardenterprise leaders – is happening again this year in Oxford, England from April 10-12.  

I have written about the opportunity for companies to engage directly with social entrepreneurs. (A New Triple Bottom Line provides a good introduction.) Since social enterprises focus on opening markets across the base of the pyramid (BoP,) their models often represent the innovations needed to understand how commercial entities can grow their BoP markets. Companies who assume that their 'Global North’ engagement models are going to work in these new markets are going to be a day late and a dollar or rupee short.

The Task Ahead for Marketing Chiefs

Visionary global CMOs are engaging now to understand and connect with billions of their future customers. Here are four reasons why every CMO should be doing the same.

1. Meet the designers of the engagement models of the future.

Whether you believe that the world ahead must include less consumption or not, your most effective marketing spend will need to be one that is less customer interruptive. Marketing expenditures are being redirected from TV ads to content and cause marketing, and other activities that depend on authentic customer engagement.

If you want to connect with your future customers globally, you will need to understand the engagement models that are evolving in their villages.

2. Share your progress in solving a globally recognized challenge with your stakeholders by embracing a sustainable innovation business model.

In order to persuade “sustainability and social good” customers of your authenticity, you need partners with intimate knowledge of what your current customers and even more importantly, what new marketing toolsthe next billion customers care about. You can’t read about this in books posts or tweets. A good example is how Dow Corning sent its executives into the Global South as brand anthropologists. IBM’s Global Citizen’s Corp is another model with potential.

BUT you need to flip the requirements so instead of working with non-profits, your executives rub shoulders with the leading creators of the hybrid and low price/modest profit models that can scale to the next billion—your execs need to be their scaling partners.

3. Social entrepreneurs build sustainable models that become brand assets.

Claire Lyons, formerly of the PepsiCo Foundation and one of the designers of Pepsi Refresh, wisely advised CMOs to “stop propping up PR with dilutive dollars.” Money spent for marketing and PR campaigns that require an equivalent or greater investment to create the next set of impressions is a perpetually dilutive effort. To build a social brand asset, the model must build capacity to continue solving problems as the spend decreases or ends.

4. Your window into entrepreneurs who must “innovate to live” can be opened through social entrepreneurs.

You can meet and work with leaders who are solving complex problems for broad populations by combining community leadership, technology, social marketing, silo busting, policy levers, movement building and partnerships in ways your organization has never considered.

Global corporations whose new customer goals are in the neighborhood of a billion must find models that operate in the neighborhoods where the next few billion customers live.

The opinions, beliefs and viewpoints expressed by CSRwire contributors do not necessarily reflect the opinions, beliefs and viewpoints of CSRwire.

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