November 16, 2005

Cause-Related Partnerships

Altruism. Corporate responsibility. Philanthropic image. These are a few ways to describe cause-related marketing, an activity in which businesses join with charities or social causes to market an image, product, or service for mutual benefit.

Other things being equal, many consumers would rather do business with a company that stands for something beyond profits. By identifying with a cause and letting the media know about it, you can benefit from this impulse. One of the easiest ways is to establish a relationship with a charitable organization.

Johnny "Love" Metheny is a slightly famous nightclub owner in San Francisco with a string of local ventures to his name. Whenever he opens a new club, he shares the limelight with a local charity. "I have a history of including the Leukemia & Lymphoma Society in my grand openings," notes Metheny. Beyond these events, Metheny volunteers time to the cause, serves on its board, and was voted Man of the Year for the Society in 1991. So, while beneficial to his business, his association with the organization is more than a marketing ploy.

October 02, 2005

Bali: Disaster Strikes, Again

For the second time in 3 years, the Indonesia island of Bali has been hit by terrorism. In 2002, a large explosive was detonated in the busy tourist center Kuta Beach, killing 202 people, mostly Australians. This time, suicide bombers walked into 3 crowded restaurants, blowing themselves up and taking with them over 20 people, injuring many others, most of them Indonesians.

It's too soon to tell what the affect will be on Bali's thriving tourist economy. But if the past is any indication, things will not go well. Like the aftermath of 9/11 and the Bali bombings in 2002, the Balinese economy will suffer, perhaps irreparably. The people of Bali who depend on toursim for their livliehoods will pay the price.

As many of you know, I advocate cause marketing as a means to align your business with your values. I've been involved in poverty projects for the past few years through Global Initiative to Advance Entrepreneurship (GIVE).

I just returned from Bali last month, having met with several program partners to initiate a handuful of projects based on GIVE's mission that self-initiative throught entrepreneurship is the most effective and sustainable means to lift people out of poverty.

I was pleased to find that Bali had fully recovered from the economic disaster of 2002, when tourists fled the island in the wake of the last bombing. I was also happy that GIVE's first success story, my friend Ketut Sukadana, was thriving as a local tour guide, made possible largely due to a GIVE service grant that provided him with business and marketing training.

Now, the future is bleak. Again, Bali must consider alternatives to an economy overly dependant on tourism.

GIVE's dedication to Bali remains unchanged. GIVE will continue on the path of working with individuals and organizations dedicated to the economic advancement of Indonesia. Our goal is to create a powerful culture of entrepreneurship in Bali that sets a positive example for the rest of the region. We hope to make Bali a centerpiece of GIVE's work in Asia -- a springboard for our future work in Vietnam, Thailand, and India.

Visit GIVE's blog to learn about GIVE's mission, history and global projects.

If you want to get involved, learn about GIVE's Marketers Without Borders program.

September 07, 2005

Marketing Without Borders

Why do some people have so much, while so many more have so little? That's a question many have been attempting to answer for generations.

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As a pragmatist, I've always believed that many of the world's problems required a healthy dose of hope, fresh solutions to challenging problems and a concrete path toward a better future. This is especially true when you consider one of the most profound issues facing each of us today -- the effects of a growing underclass in much of the world.


Poverty affects all of us. Name any issue -- climate change because of pollution, deforestation, the drug trade, illegal immigration, terrorism, AIDS -- all of them have roots in the growing economic challenges of the developing world. The more disparity there is between the well-off minority of the world and the needy majority, the more we gamble the future well-being of global society at large.

I traveled enough to know that even in a time of growing prosperity for the developed world, much of the world is being left behind. The gap between the "haves" and the "have-nots" is widening. Estimates say that 20% of the world's population control 80% of the world's wealth. One in five people on the planet make do on less than a dollar a day.

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For years, I've tried to understand why this is so. I've read books, attended lectures and traveled to poor countries. The problem of global poverty is too complex for any one interpretation. Yet, I believe that teaching entrepreneurship and small business marketing skills to people in the developing world can alleviate many of the world's problems. That's why I decided to take a three-week trip to India and Indonesia -- to teach others what I, as a marketing consultant, take for granted.

The idea came to me while sitting in an Indian/Pakistani restaurant in San Francisco this summer. I was considering ways to promote my new book, Get Slightly Famous. I was also planning a trip to Asia, one of my favorite places in the world. Then it hit me: "Why not take my book to a global audience?"

Then I had another thought. "Why not bring the ideas in my book to people in countries that need them the most?"

I got to work planning my trip around this new objective. Within a matter of weeks, my initial inspiration went from the back of a napkin to a full-blown initiative complete with partnerships, sponsors and supports. I decided to use my book as a template for the trip in its planning, execution and contribution to others. Here's how it goes:

- I will travel to two countries, Bali and India, and help two representative micro-entrepreneurs become better marketers. I will also make as many connections as possible in those countries, including local business associations, non-profit organizations and other trade-related entities.

-I chose Bali because after visiting the island in November 2001 (two months after the 9/11 attacks) I saw the effects on the local economy that resulted from a downward dip in tourism. I also met and became friends with a bright, motivated taxi driver while on that trip. I spend a week with him touring the island and sold him on the benefits of promoting himself as a local tour guide, rather than a dime-a-dozen taxi driver. I believe he will make a good case study of how a typical Balinese person can advance their situation by becoming a better marketer with a bit of help and training.

-I chose India because I'm well aware of the problems facing that country due to overpopulation and diminishing job opportunities. I'm acquainted with India's widespread poverty and its radical disparity in wealth distribution. Moreover, I've been working with a Delhi-based administrative assistant for several months now. I believe that, by working together, I can help him grow his business and establish the basis for a successful, mutually beneficial joint venture arrangement.

-I will use my book Get Slightly Famous as a springboard to give my trip a focal point. Not only does my book lend itself to this type of social entrepreneurial venture, it gives my trip more promotional value. It's made establishing joint ventures with other socially minded entrepreneurs and organizations much easier. It also provides a useful PR hook as I begin to promote the trip.

-I borrow from other organizational models that have impressed me with their entrepreneurial approach to poverty alleviation. For example, I'll use my long-time relationship with The National Foundation for Teaching Entrepreneurship (NFTE/www.nfte.com) as a model and partner with them with them as much as possible, including donating books to their operation in Jaipur, India, which I'll visit, and virtually mentor their students when I return.

-When all of this is done, I'll hope to inspire others to get on board and become part of a network of globally minded businesses that are willing to contribute to the project. There are many things that almost any successful business can do to help others in need. Many times, all they need to do is contribute their knowledge to make a radical difference. Moreover, many small businesses in the developing world can use this network to form alliances with other small businesses around the world. With the Internet, this is entirely possible.
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I believe that to tackle the issue of global poverty, an epic outreach among those in the developed world to those less fortunate is part of the answer. I'm not talking about a handout or charity. Rather, I'm suggesting that one of the best ways out of the growing problem of wealth disparity is by teaching those with very little how to build their own income streams, develop an entrepreneurial mindset, and essentially become masters of their own destiny.

Instead of handing someone a free meal, you teach him or her how to grow their own food and prepare their own meals. This is about teaching people to solve their own problems, rather than imposing solutions from the outside. It's about hope, but hope combined with a concrete path.

When I wrote Get Slightly Famous, I was determined to create a marketing guide that addressed today's tough new business climate. I wanted to deliver action-oriented advice, not theory, which any small business owner could use to make a real difference in their businesses and lives. I believe that if the marketing advice I espouse is applicable to small business owners in the U.S., Europe and the other parts of the developed world, it should be equally applicable to those in the developing world.

August 31, 2005

The Concept of "Social Entrepreneurship"

The concept of "social entrepreneurship" is catching on. Recently, PBS ran a four part series (http://www.pbs.org/opb/thenewheroes/whatis/) about social entrepreneurs and the work they are doing…from India to Puru…to address social problems using a unique blend of philanthropy and business savvy.

I first heard the term when I listened to journalist David Bornstein speak last year in San Francisco on his book tour for How To Change The World: Social Entrepreneurs and the Power of New Ideas (http://tinyurl.com/7wzqj)Bornstein
In his book, Bornstein profiles nine champions of social change who developed innovative ways to address needs they saw around them in places as distinct as Bombay, India; Rio de Janeiro, Brazil; and inner-city Washington, D.C.

Bornstein describes a similar approach and philosophy that each social entrepreneur uses to address local problems. Social entrepreneurs believe that problems like hunger or poverty are best addressed by channeling market forces to the needs of a social enterprise.

Social entrepreneurs concentrate on marginalized sectors of society. They seek financial sustainability as a means of attaining objectives such as improving the quality of life of their stakeholders and their living environments.


Here’s a description from The Ashoka Foundation (http://www.ashoka.org), an organization that identifies and invests in social entrepreneurs:

The job of a social entrepreneur is to recognize when a part of society is stuck and to provide new ways to get it unstuck. He or she finds what is not working and solves the problem by changing the system, spreading the solution and persuading entire societies to take new leaps. Social entrepreneurs are not content just to give a fish or teach how to fish. They will not rest until they have revolutionized the fishing industry.

Identifying and solving large-scale social problems requires a social entrepreneur because only the entrepreneur has the committed vision and inexhaustible determination to persist until they have transformed an entire system. The scholar comes to rest when he expresses an idea. The professional succeeds when she solves a client's problem. The manager calls it quits when he has enabled his organization to succeed. Social entrepreneurs go beyond the immediate problem to fundamentally change communities, societies, and the world.

http://www.ashoka.org/fellows/social_entrepreneur.cfm

April 29, 2005

IDEP: Tsunami Relief and Recovery PR Project

Nonprofit foundations are notorious remiss in getting credit where credit is due. The problem is often a lack of understanding, planning and foresight regarding effective media coverage for their work and its benefits to society.

IDEP Foundation (http://www.idepfoundation.org/), a GIVE program partner, has spent all of 2005 gearing its once-sleepy Balinese foundation toward Indonesia tsunami relief and recovery efforts.

Almost immediately after the earthquake and tsunami disaster of December 26, 2004, IDEP leapt into action. They drew from their vast network of connections in Bali and throughout the Indonesia NGO community to boatlift aid packages and down the coast of Sumatra, the hardest hit in Indonesia.

Before the Red Cross and other large international aid groups were even cleared for landing, IDEP was delivering aid into the most remote, and desperately in need areas. Leasing or borrowing boats from sources including surf and dive businesses, they assembled a team of volunteers that made a real difference in the lives of many.

Yet, they received almost no press coverage, despite the fact that they delivered over US $330,000 in aid.

GIVE has awarded a professional service grant to help IDEP gain media exposure for their work in Indonesia.

GIVE will provide marketing and public relations via its Marketers Without Borders program (http://giveindonesia.org/marketerswithoutborders.htm), taking advantage of the window of opportunity in late December as the world marks the one-year anniversary of the tsunami.

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