Online with
Louise Ripley

 
Social Marketing
Costs of the Social Product
Chapter 9 Kotler&Roberto Social Marketing
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Managing The Costs Of Adoption
The strategy defines the social market mix for each target segment. Each substrategy will be explained in relation to how it will respond to the opportunities, threats and key issues that the plan identified earlier. (Kotler and Roberto p. 278) 

 

"The real price of everything...is the toil and trouble of acquiring it." --- Adam Smith

Managing the Monetary Costs of Adoption

The Marketing Functions of Pricing

Accessibility

 

High Cost
Difficulty of Adoption
Low Cost
Product Positioning 

        

   
De-marketing 
 

 

Exercise
Price/Cost
Why do Kotler and Roberto label this chapter "Costs" instead of "Pricing" as you would find in a traditional Marketing text?

 

Setting the Objectives of Pricing

Maximize Profits
Recover Costs
Maximize Number of Target-Adopters
Increase Social Equity
De-market

Method of Price Setting

Need to Consider
Costs
Competitors' Prices
Adopters' Price Sensitivity
Unique-Value
Substitute-Awareness
Difficulty-Comparison
Total-Expenditure
End-Benefit
Shared-Cost
Sunk-Investment
Price-Quality
Inventory

 

Exercise
Price Sensitivity
Which if any of these price sensitivities apply to the target-adopters of your social product? 

 

Managing the Non-Monetary Costs of Adoption

Time Costs
Can be lessened by: 
Embedding
Anchoring
Perceived Risks 
Type of Risk Recommended Action
Psychological Deliver psychological rewards
Social Get endorsements from credible sources
Usage Reassure adopter or give free trial
Physical Solicit seal of approval from authoritative institution

Other Units

Introduction Effecting Change Social Marketing Plan Environment Product
Place Costs Promotion Action/Service Influence Groups

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AP/ADMS 4280 3.0 Social Marketing
York University, Toronto
M Louise Ripley, M.B.A., Ph.D.