Marketing Compost (EAWAG) - The Water, Sanitation and Hygiene

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Variety Design List price Quality Discounts Brand name Credit terms Features Allowances Target customer Product Packaging Service Advertising Personal selling Promotion Sales promotion Intended positioning Public relation Place Price Payment Preriod Channels Coverage Assortments Locations Transportation Inventory Logistics Figure 2.2: The four Ps of the marketing mix (adapted after Kotler et al. 2006) Figure 2.3: Marketing and ethics: Selling refrigerators to Eskimos Promotion: Informs your customers about the benefits of using compost, building awareness and overcoming negative attitudes or perceptions to ensure the sale of your product. Example: Your compost has an official quality label. The customer opts for your product as he/she trusts the label or is aware of your company’s good reputation. Marketing and ethics For some, selling a freezer to an Eskimo may be the ultimate in great marketing, but convincing people to buy a product they do not need has no place in ethical marketing. Marketing is not always used as a force for good, and aggressive marketing is seen by some as a modern-day evil. Marketing approaches are sometimes used to convince customers to buy a product they do not want - or even need - which is of little utility and has a short life. Some products, such as cigarettes, may even harm the consumer, while others simply waste consumers’ money and the world’s resources. Marketing also promotes competitiveness. This can sometimes be positive, but small businesses can be particularly vulnerable to large companies monopolising markets and forcing them out of business. So what place do ethics have in the marketplace The basic marketing concept holds that success depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors (Kotler et al. 2006). However, it is possible for marketing to go beyond profit and customer sales alone, and to consider the long-term social and environmental implications of business. A composting business can consider consumer interests by delivering a highquality and safe product. It has the potential to improve and transform waste management in low-income countries, thus benefiting society as a whole. It also provides an opportunity to create decent and dignified livelihood opportunities. Although good quality compost can be a genuine asset to many, it is important that people’s expectations are realistic, and that they are properly Marketing Compost—Background 13
Successful compost marketing in Sri Lanka By contrast, government and NGO projects have failed to establish markets for their product. This led to such an overwhelming stock of compost that some have had to cease production or even close down. The government had not considered marketing, and the NGO did not have the capacity to Ali, 2004 invest in marketing activities. informed about its use and limitations in order for them to make an informed choice. What about ethical competition In many countries, markets for compost are untapped or underdeveloped. There is room for new businesses to emerge and coexist with other producers. Moreover, competition itself can be turned into an opportunity: joining forces to lobby for supportive legislation, sharing distribution infrastructure or even sharing marketing through Compost Associations. Finally, sound social and environmental principles at the heart of your business can be a powerful sales asset for your product, as markets around the world become increasingly concerned with ethical consumption. 2.2 Why is marketing important for compost producers Marketing is just a jargon-filled discipline and only tells you what you Gartner (no date) already know. Although many people are sceptical about marketing, in fact it underpins most successful businesses. It helps ensure investments are worthwhile and identify appropriate products for achievable markets. Improving the image of compost Although compost is a highly effective soil conditioner, which can reduce the need for chemical fertilisers, it does not enjoy a ready-made market. A number of factors account for this fact, including: lack of awareness and knowledge on how, how much and when to use compost; misunderstanding about what compost is (e. g. expecting it to behave in the same way as a chemical fertiliser); 14 Marketing Compost—Background
Page 1 and 2: Sandec: Department of Water and San
Page 3 and 4: Impressum Publisher: Eawag, P.O. Bo
Page 5 and 6: 7 Key principles of promotion 79 7.
Page 8 and 9: 1 Introduction For many years, busi
Page 10: marketing is not a one-off task: it
Page 13: Create value for customers and buil
Page 17 and 18: Successful compost marketing in Sri
Page 19 and 20: Chemical fertilisers usually consis
Page 21 and 22: Composting methods Photograph: Jona
Page 23 and 24: 2.4 Basics of market research and m
Page 25 and 26: Data collection in the Palestinian
Page 27 and 28: epresent those of the population at
Page 29 and 30: Choosing appropriate respondents A
Page 31 and 32: 30 Marketing Compost—Background P
Page 33 and 34: 3.1 Competition Competitors are the
Page 35 and 36: Enforced environmental laws as an o
Page 37 and 38: an awareness of the need for organi
Page 40 and 41: 4 Market assessment So far, you hav
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Page 44 and 45: Potential market The potential mark
Page 46 and 47: Willingness and ability to pay A co
Page 48 and 49: Farmers’ willingness but inabilit
Page 50 and 51: 4.4 Quantifying market demand We ar
Page 52 and 53: 4.5 Profiles of market segments You
Page 54 and 55: 5 Product, positioning and location
Page 56 and 57: Various compost brands Photograph:
Page 58 and 59: 5.2 Quality A satisfied customer wi
Page 60 and 61: Photograph: PWEG Quality depends mo
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5.4 Business location Many factors
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The farmers pay $ 2.80 per truckloa
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This map illustrates a typical situ
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Once the business relationship with
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Production costs include variable c
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quality products. You may also find
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Terms of payment depend on the impo
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7 Key principles of promotion So fa
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Marketing communication methods Wor
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7.2 Promotion in practice Budgeting
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use of compost. They can also corre
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Getting the wording right The words
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Packaging The main purpose of packa
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Consider developing a simple ‘vis
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Compost Associations Worldwide Comp
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Final comments We asked a number of
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This table compares compost quality
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Annex 3 Examples of market segment
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Template Customer Group: Geographic
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B. Questionnaire for Nurseries in N
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Acknowledgements The authors would
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Bibliography References Some of the
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Kotler, P., Armstrong, G. 2006. Pri
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The authors Jonathan Rouse is an in
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