The social economy encompasses organizations and businesses that prioritize services to members and the community rather than simply focusing on profit.
These organizations seek to meet the needs of the community by valuing human resources. Although they need to remain financially viable, their level of success is measured primarily by their positive impact on the community.
But how can they generate profit and remain financially viable? Can they use traditional marketing tactics to promote themselves or is this something that is morally questionable?
After all, we often associate marketing with how a company advertises and sells its products or services. However, it should not be limited to that because this fixed idea of what marketing represents creates tensions with the values generally associated with the social economy.
There are ways for businesses and social economy organizations to think outside the box of marketing with a view to finding a balance between making money and having a social impact. Indeed, balancing these two concepts promotes the sustainability of the enterprise while gathering and maintaining the interest of their community.
What is the right approach?
To sell well, an enterprise must act intelligently in the market. But sometimes the tactics used to convince people to buy can seem manipulative. It is no surprise that enterprises driven by social values often wonder whether these methods run counter to their principles.
So how can you integrate marketing concepts without compromising the social values of your organization?
The first thing to keep in mind is that, to succeed in marketing, a balance is needed between five key elements: product, price, distribution, customer service and communication. For social enterprises, these aspects are not just strategies for selling but nuances to consider in a broader context than just business.
| Did you know?Quebec is home to approximately 7,000 social economy enterprises, including approximately 3,300 cooperatives and 3,700 non-profit organizations (NPOs), which are engaged in commercial activities. In 2002, these enterprises generated annual revenue of $17 billion. Today, for cooperatives and mutuals alone, this figure has increased to $33.4 billion! |
Get out of the traditional box
The product is often the heart of any enterprise as it represents the key to financial success. However, for non-profit organizations (NPOs), cooperatives and mutuals that are not primarily profit-oriented, it is essential to think about their commercial aspect. Although their primary objective is not to make a profit, these organizations must still comply with the rules of economic viability.
With that in mind, these entities have every interest in mastering the best strategies for selling or trading their products, even if their mission is different from that of for-profit companies. This is why social economy enterprises stand to benefit from finding a market that supports both their mission and their values. This would allow them to flourish while remaining faithful to their essential purpose.
There is a delicate balance between what is ethical and what is commercial. Social enterprises need to ask themselves critical questions when setting their prices, such as who they are targeting and who is buying into their mission.
In the world of social enterprises, we need to rethink the concepts of product, customer, and distribution. Selling or exchanging something while meeting a social need is a complex matter. A good product or service alone is not enough to achieve a social mission, and a clear mission does not guarantee sales.
A good marketing strategy can change the way people view a product (or mission) and incite them to invest in getting it. It must justify the price, facilitate the purchase and, for social enterprises, encourage engagement and show the benefits.
By using marketing intelligently, social enterprises can renew their membership base, integrate into local development, and gain the support of their community, or even attract the necessary talents for their actions.
Contact
To get support for your social economy enterprise and receive more information on how the FNQLEDC can help you with your process, please contact Valérye Tremblay, Social Economy Advisor, at 418‑843-1488, ext. 1228, or at vtremblay@cdepnql.org.
To find out more about the social economy, we invite you to visit our social economy section.
Sources (French only)
https://www.grenier.qc.ca/chroniques/9084/du-marketing-de-la-cause-a-leconomie-sociale
