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

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3 The marketing environment So far, we have introduced the concept of marketing, considered why it is important for compost businesses and described some of the main research methods. This section is concerned with the first marketing step, i.e. understanding the marketing environment. Composting businesses operate within a highly complex and dynamic environment, which is largely impossible to control and often difficult to predict. It is important for a business to understand the marketing environment, as it can present a multitude of opportunities and threats. The following table summarises the external factors and forces of the marketing environment. Economic Political/Legal Social Environmental Technical Competitors Alternative products Income of customers Economic cycle Subsidies for relevant sectors Sympathetic waste management policies Subsidies for agriculture Import/export regulations Land reforms Cultural behaviour Values, taboos Attitude towards waste or compost Demographic trends Education, skills Environmental awareness Climate Soil conditions Water availability Agricultural activities Land use planning Technological innovations Change of agricultural techniques Improved transport infrastructure Figure 3.1: Factors influencing a business environment. These factors are hardly ever static but constantly changing. They may affect your business directly or indirectly Understanding the marketing environment should not be viewed as a one-off activity. Since the environment may be constantly changing, it is imperative for a business to keep abreast of changes. Some elements of the marketing environment are discussed hereafter in more detail. Others, such as people’s attitudes, perceptions and awareness, are discussed in Chapter 4: Market assessment. Marketing Compost—The marketing environment 31
3.1 Competition Competitors are the other businesses offering compost or other products used in a similar way, such as topsoil, manure or fertiliser. Businesses must always consider their competitors as a potential source of information, threats or alliance. Typical competing products for compost are: fertile topsoils mined and transported to the end user (peat, red soil etc.); chemical fertilisers; animal waste (chicken manure, cow dung etc.); raw municipal refuse; human faecal sludge (from pit latrines and septic tanks) and wastewater sludge; nutrient-rich waste from industrial processing (neem cake, brewery and distillery waste); and mined decomposed landfill material. Competitors can be seen as a source of information on what works and what does not. They can guide you towards (or away from) certain choices about products and customers. They can even present you with an opportunity to collaborate, for example, sharing distribution networks. You need to assess what products and businesses will compete with you. Consider if there is room in the market (i. e. a sufficient number of customers) for you to sell compost to the same market segment as your competitors. Could your business offer something unique, such as better value, higher quality or convenience to customers If not, you may consider offering a different product or simply targeting different market segments. A historical and prospective view on the environment can also be illuminating. For example: Have any other businesses tried composting locally before Did they succeed or fail, and why What is different about your business Are any businesses planning to set up in the future and, thus, become competitors Is any legislation emerging which could support or threaten your venture Are your neighbours likely to copy your idea and become your competitors 32 Marketing Compost—The marketing environment
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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 and 14: Create value for customers and buil
Page 15 and 16: Successful compost marketing in Sri
Page 17 and 18: Successful compost marketing in Sri
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Page 21 and 22: Composting methods Photograph: Jona
Page 23 and 24: 2.4 Basics of market research and m
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Page 27 and 28: epresent those of the population at
Page 29 and 30: Choosing appropriate respondents A
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Page 40 and 41: 4 Market assessment So far, you hav
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Page 44 and 45: Potential market The potential mark
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Page 50 and 51: 4.4 Quantifying market demand We ar
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Page 58 and 59: 5.2 Quality A satisfied customer wi
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Page 64 and 65: 5.4 Business location Many factors
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Page 75 and 76: quality products. You may also find
Page 77 and 78: Terms of payment depend on the impo
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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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Marketing Compost (EAWAG) - The Water, Sanitation and Hygiene

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