Social Marketing: Class-12 & 13

Pricing
31 January 2017

Dr. M.K.Satish
The Product ?

Augmented Product
Tangible Objects and Services to
Support Behavior Change

Actual Product
The Desired Behavior

Core Product
Benefits of
Desired Behavior
Cleaner cooking stoves-Shell Foundation
Cleaner cooking stoves-Shell Foundation
Shell Foundation launched the Programme called ROOM
TO BREATHE
MISSION: to pilot, scale-up, and promote market based
development, production, distribution and sale of high
quality, durable and affordable improve cook stoves to
households affected by indoor air pollution
Almost half of worlds population is affected by indoor air
pollution
Shell survey showed that 63 % of kitchens had no chimney
and 22 % had no window allowing smoke to escape
Cleaner Cooking Stoves- Campaign Timeline
TRIAL PHASE- Mid 2008 to early 2009
Stove business needs assessment completed
Social marketing best practices reviewed
Implementation team assembled
Multiple awareness raising activities conducted
Impact measure through pre-trail and post-trial surveys
EXPANSION PHASE-I Early 2009 to Early 2010
Strategy revised using lessons learned
Messaging and collaterals completely revamped
A wide range of awareness raising activities launched
EXPANSION PHASE-II- Early 2010 to Mid 2011
Campaign routes expanded to include NGOs and local governments
Partnership with Grameen Koota to raise awareness and tackle price
barriers
Campaign report and toolkit produced to assist in implementing lessons
learned
Cleaner Cooking Stoves-Barriers
55 % said that the stove was very expensive
19% felt it would not deliver the benefits promised
18% said they are not sure how to operate it
94% said that it was necessary that both wife and husband
agree to the purchase
Cleaner Cooking-Innovative Microfinance
Strategy
Households could pay in instalments of Rs 50-100 per week
instead of the entire cost upfront- Rs 750 to 1,600

FOUR PARTNERS
Shell Foundation to fund training and promotional material
Grameen Koota- provide stove loans to its 4 lakh members
Navya Disha- NGO arm of Grameen Koota recruited and
coordinated the campaign
Stove manufacturers Envirofit and SELCO ensured that
stoves were stocked within easy reach of Grameen Koota
members
Cleaner Cooking-Promotion
Slogan- My Kitchen My Pride
Cleaner Cooking-Results
About 12,000 stoves in 2 years
30 percent improvement in indoor air quality

Augmented Product EMI options and servicing

Actual Product Clean cooking stove
Core Product Health benefits of reduced indoor air pollution
Bihar- Bicycle Story
Launched in 2007, and now adopted by many other states,
MP, Chhattisgarh, Rajasthan

Augmented Product By offering grants to purchase bicycles to teenage

girls so that they are able to travel long distances
cheaply and quickly
Actual Product Attend schools
Core Product Addressing low female literacy
Pricing Strategy: Price the 2nd P
 PRICE is the cost that the target audience associates with
adopting the desired behaviour
Adoption costs can be MONETARY and NONMONETARY
Many time nonmonetary costs are more significant in social
marketing products
Nonmonetary costs -TIME, ENERGY, EFFORT, PH
YCHOLOGICAL RISKS & LOSSES, PHYSICAL DISCOMFORTS
Potential Costs for Performing the Desired
Behaviour
Type of Cost Examples
Monitory: Goods Nicotine patches/tablets
Blood pressure monitoring equipment
Bike Helmets, Life Vests
Breathalyzers
Smoke alarm batteries
Foodwaste compost tumblers
Energy saving lightbulbs

Monitory: Services Fees for family planning classes

Smoking cessation classes
Athletic club fees
Taxi rides home from a bar
Suicide prevention workshops
Potential Costs for Performing the Desired
Behaviour
Type of Cost Examples
Nonmonetary: Cooking a balance meal
Time, Effort Stopping in the side lane to use the cell
phone
Taking the foodwaste outside to a composter
Nonmonetary: Finding out whether a lump is cancerous
Psychological Having a cup of tea without cigarette
Listening to the chatter of others in a car
pool/office bus
Asking your son whether he is considering
suicide
Telling your husband you think he drinks too
much
Letting your lawn go brown in summer
Nonmonetary: Exercising
Physical Pricking a finger to monitor blood sugar
Discomfort Taking shorter showers
Having a mammogram
 Considerations When Setting Prices For
Tangible Objects and Services

When a social marketer gets involved in the price setting, several principles
guide decision making.
Maximizing profits where the primary consideration is money making
Recovering costs where revenue is expected to offset a portion of costs
Maximizing the number of target adopters where the primary purpose is to
influence as many people as possible to use the service and /or buy the product.
Social equity where reaching underprivileged or high-risk segments is a
priority and different prices might be charged according to ability to pay
PRICE related tactics
Develop and provide incentives which will increase benefits or
decrease costs
Increase monetary benefits for the desired behaviour
Increase nonmonetary benefits for the desired behaviour
Decrease monetary costs for the desired behaviour
Decrease nonmonetary costs for the desired behaviour
Increase monetary costs for the competing behaviour
Increase nonmonetary costs for the competing behaviour
PRICE related tactics-Increase monetary benefits for the desired behaviour
Rebates, allowances, cash incentives
Eg: 3 to 5 percent discount for reusing grocery bags
Quit smoking and win prices contests

Eg: Recycle Bank- Florida

PRICE related tactics-Increase monetary benefits for the desired behaviour
Incentivising Sanitation- Nirmal Gram Puraskar
Open defecation villages get incentives upto 5 lakh
PRICE related tactics-Increase monetary benefits for the desired behaviour
Kinds of monetary benefits for the desired behaviour
Focus Example
DOWNSTREAM
Individual, every Bring your own bag(instead of plastic bags) and receive 2 %
instance, pay back
guaranteed
Individual after a As a TB patient a paid deposit at the start of your hospital
few instances, based treatment that is refundable on completion of the
guaranteed prescribed course, at which point you become eligible for
cheaper drugs
Individual, Luck draw for e-transactions (Govt Initiative)
probabilistic
Group Nirmal Gram Puraskar
MIDSTREAM
Monitory incentive for brining men and women to health clinic
in rural Bihar
Under Janani Suraksha Yojana, Cash award of Rs 5,000 for
delivery in hospital
UPSTREAM
As an administrator you will be promoted with increased pay if
you effectively design and implement a campaign that
PRICE related tactics-Increase nonmonetary benefits for the desired behaviour
Nonmonetary form like pledge, recognition and appreciation

Eg: Rewarding Fair Play

PRICE related tactics-Increase nonmonetary benefits for the desired behaviour
Eg: Prathama Blood Centre, Ahmedabad
No of Benefits
times
1 Hepatitis B vaccination at nominal cost

5 Appreciation certificate
Enrolment into Prathamas Blood Insurance Policy (donor can receive 5 blood
components units for self or immediate family members free)
10 Beautifully frame appreciation certificate
Gift Hamper
Enhance Blood Insurance Benefits (donor can receive 10 units for self or family
members)
25 Beautifully frame appreciation certificate
Silver Jubilee memento
Access to wellness check
Enhanced Blood Insurance Benefits
 Discount
PRICE coupons,
related tactics- cashcostsdiscounts,
Decrease monetary promotional
for the desired behaviour pricing,
seasonal discounts and segment pricing
Eg: MCGM giving tax discount for waste segregation
MSEB giving discount in electricity bill for houses having
solar heaters
Discount in helmets for bike members
 Aravind
PRICE related Eye Care
tactics- Decrease monetary costs for the desired behaviour

Husk Power Systems

Aakash Tablets
Reduced e-transaction charges
 Floss the teeth while watching television
PRICE related tactics- Decrease nonmonetary costs for the desired behaviour

Valet parking when visiting hospital for a cancer screening

 Increasing
PRICE taxes
related tactics- for
Increase gas
monetary costsguzzling
for the competing cars
behaviour

Imposing fines for not recycling

Decreasing public funding if the school does not offer
physical education classes
Eg: Fines for using phones while driving
 Public
PRICE Humiliation
related tactics- Increase nonmonetary costs for the competing behaviour
Giving rose to traffic offenders
Eg: Britain has Talking Security cameras highlighting antisocial
behaviour if one conducts
Perceived costs of adopting the behaviour are
balanced with all elements of the Marketing Mix

Fear of finding cancer PRODUCT ENHANCEMENTS

Having to wait a week for Reduce wait time
results and worrying PRICING TACTICS
Painful pressure Sliding scale fees
Exam fees Provide free child care
Wait time PLACE TACTICS
Finding a parking place Provide valet parking using
Arranging and paying for volunteers
child care PROMOTIONAL TACTICS
Give statistics on incidence
Give statistics on benefits of
early detection
Use testimonials

PERCEIVED COST OF POTENTIAL STRATEGIES TO

MAMMOGRAMS INCREASE BENEFITS AND LOWE
COSTS OF MAMMOGRAMS
 COST BASED PRICING
Pricing Strategies
Prices are based on a desired or established profit margin or rate of
return on investment
COMPETITIVE-BASED PRICING
Prices are driven by the prices for competitive products and services
Hybrid car manufacturer can tie up with Govt and offer a discount to
reduce the price of hybrids to match petrol/diesel vehicles
VALUE BASED PRICING
Prices are based on an analysis of the target adopters price
sensitivity
Thank you
Place- the Third P
Importance of Place in Social marketing
In 2009, Americans recycled 62% of paper, 26% glass and
20 % of aluminium- because of- curbside recycle containers,
containers in office and public places
E-cars in London are popular-because of- road side charging
points
CNG Cars in Delhi are popular-because of- CNG Outlets
WHAT IS PLACE IN A SOCIAL MARKETING
ENVIRONMENT?

Place is where and when the target market will

perform the desired behavior, acquire any related
tangible objects, and receive any associated
services-(both tangible and intangible)

TA: Also needs support in capacity building

What is Place
Place is where and when the target audience will perform the
desired behaviour, acquire any related goods and receive any
associated services
Place is not the same as communication channel where the
communications will appear (e.g: brochures, ads, personal
presentations)
Physical Location Walking trails
Phone Domestic violence helpline
Mail Postage paid plastic bags for recycling mobile phones
Fax An agreement to quit signed by both patient and
physician and faxed
Internet Rideshare matching
Mobile Unit For hazardous waste
Where people shop Mammograms in a departmental store
Pulse polio in a shopping mall
Where people hang out HIV/AIDS test at gay bars
Kiosks To determine body mass index (BMI)
Vending machines Condoms
DEVELOPING A PLACE STRATEGY
1. MAKE THE LOCATION CLOSER
2. EXTEND HOURS
3. BE THERE AT THE POINT OF DECISION MAKING
4. MAKE THE LOCATION MORE APPEALING
5. OVERCOME PSYCHOLOGICAL BEHAVIOURS ASSOCIATED
WITH PLACE
6. BE MORE ACCESSIBLE THAN THE COMPETITION
7. MAKE ACCESS TO THE COMPETITION MORE DIFFICULT OR
UNPLEASANT
8. BE WHERE YOUR TARGET AUDIENCE SHOPS
9. BE WHERE YOUR TARGET AUDIENCE HANGS OUT
10. WORK WITH EXISTING DISTRIBUTION CHANNELS
PLACE STRATEGY- Make the location closer
Mobile Vans
Dust bins along all streets
Electric charging points at convenient locations- electric cars
Mobile Libraries
PLACE STRATEGY- Extend Hours
24 Hrs helpline
Polio centers opened beyond working hours
PLACE STRATEGY- Be there at the point of
decision making
DanceSafe-Volunteers staff booths at rave parties, night clubs
providing information on drugs and other health issues
Place a glass blow of fruits at eye level in the refrigerator versus in
closed drawers in a bottom shelf
Negotiate with Kirana shops to prominently display contraceptives
Place bins next to paan shops
PLACE STRATEGY- Make the location more
appealing
Bicycle paths which are smooth and appealing
Stairways- well lit and made more appealing (carpeted,
exhibits on walls)- sadly in India its the other way around
Organized walking groups for seniors in shopping malls
PLACE STRATEGY- Overcome psychological
barriers associated with place
Quit smoking/drugs: Offering website to help youth with an
option of e-mail a counselor instead of calling.
Overcomes the psychological barrier of opening up to the counselor
Condom Vending Machines
Embarrassing purchase situation and lack of anonymity and the
requirement to interact while purchasing condoms.
PLACE STRATEGY- Be more accessible than
the competition
Place nutritious foods at the beginning of the lunch time
Use more appealing words to label healthy food (e.g. creamy corn
instead of corn)
Keep items like icecreams out of sight in the freezer
Have cafeteria workers ask children do you want a salad
Place the chocolate milk behind the white milk
Place fruit in glass bowls, rather than stainless stell pans
Lunch tickets should cover fruit as dessert, but not cookies
Faster health food delivery to home than Pizza

High occupant bus lanes that reward

high-occupant vehicles with less traffic
PLACE STRATEGY- Make access to the
competition more difficult or unpleasant
Smoking ban in indoor public spaces, restaurants, bars, offices etc
Washingtons 25-foot rule that prohibits smoking within 25 feet of
entrances, exits, windows that open and ventilation intakes
Banning spitting and littering

Distributing padlocks for

home liquor cabinets to
reduce alcohol abuse
Pruning bushes in parks
so that youth are not
able to gather in private
to share cigarettes and
beer
PLACE STRATEGY- Be where your target
audience shops
Many women shop, have dinner, visit parlour in malls- why
cant have their annual mammograms in malls
Distributing sustainable seafood guides at the fish market
Provide dust bins near eating joints and parks
PLACE STRATEGY- Be where your target
audience hangs out
Many women shop, have dinner, visit parlour in malls- why
cant have their annual mammograms in malls
Condom vending machines at Kamathipura
Safe driving lessons for youth near schools
PLACE STRATEGY- Work with existing
distributing channels
Medications return program in British Columbia- Return of
unwanted drugs to Pharmacies- provides the public with a
convenient way to return at no charges used or expired
medications
Giving reusable beer bottle can back to the beer shop
Empties exchange in a supermart
Distribution Channels
What are the Distribution Channels in
Social Marketing?

How do you decide?

What is the utility?
Zero-Level Channel

Change
agent Adopter

In a zero-level channel, there is direct distribution from the social marketer to

the target audience.
Tangible objects and services are distributed directly.
Door-to-door, or through outlets managed by the social enterprise/NGO/
Government (e.g., the health department providing immunizations at
community clinics)
Over mail
Over internet
Outlets managed by social marketing organizations
One-Level Channel

Change Retailer
(NGO/CBO) Adopter
agent

In a one-level channel, there is one distribution intermediary, most commonly

a retailer (e.g., grocery stores where health care officials set up tables for
vaccination).

Example: Pratham : partners with local NGO: Convince Parents

Two-Level Channel

Change Retailer
Distributor Adopter
agent

In a two-level channel, the social marketer may need to deal with the
local distributor as well as the retailer (e.g., working with distributors of
life vests to include safety tips attached to the product).
Three-level channel
National distributor finds local distributors.

Change Retailer
agent
Distributor Wholesaler Adopter

Government State District Local NGOs

(NHRM) Government
Utility of Channels of Distribution
Bicycling in the Netherlands
Target Kids Adults
Audienc
e
Barriers Concern with Concern about personal safety
personal safety Lack of parking for bikes
Lack of Concern of theft
navigation skills
Product Municipal Advanced green light for cyclists
program sends Well-maintained fully integrated
teachers to bicycle lanes
schools to Call a bike programs
conduct bike Increased number of bike racks
safety classes and special bike shelters
Students go to Intersection modifications and
traffic garden a priority traffic signals
miniature city Regular surveys of cyclists to
for learn safety assess their satisfaction
by doing
Bicycling in the Netherlands
Target Kids Adults
Audienc
e
Price At age 11, kids Guarded parking facility at a
are tested on nominal fee
their cycling Motorists are assumed by law to
skills be responsible for almost all
Certificate of crashes with motorists
accomplishment
Place Bike only parking facilities
available in the basements
Bikes available for rent at train
stations
Promotion Public awareness campaign
focusing on health benefits
Cycling ambassador programs
Annual cycling festivals and car-
free days
Place

Primary function of Place (P) is to ensure easy access to

products and services
Place is where products and services are available
Eg: Health Sector: Local Physician becomes the place
where social market effort takes place-during patient-
physician consultations
Also physician-patient communication is critical to
successful compliance of patients.
HOW DO WE MAKE ACCESS TO THE SOCIAL MARKETING
PRODUCT MORE CONVENIENT ?
The Placement Strategy
Strategies for facilitating Access?
Few Strategies for Tangible Products/Services
Thank You