Understanding the Total Market Approach: Key Insights and Research Findings, Slides of Marketing Management

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The Total Market Approach: What

do we need to know?

Total Market Approach (TMA) Defined • The United Kingdom’s DFID: TMA is a process to

“assess the

characteristics of existing and likely future markets, and to definethe comparative advantage of commercial, social marketing, non-governmental organization, and public sector actors in terms ofcompetence and value for money in delivering a range of productsor services to different market segments, including the poorest. Itcan…aid the gradual shifting of consumers with sufficientpurchasing power out of the public sector.” • USAID defines the total market approach: “

In a Total Market

Approach, the public and private sectors work together on marketsegmentation strategies to ensure that the needs of differentpopulation segments, as well as the comparative advantages ofdifferent suppliers, are considered. Multisector efforts canencourage wealthy clients away from using subsidized sources, andattract private sector participation to market segments that meettheir needs for profit and growth.” (USAID, 2009)

Some Features of TMA

-^ Seeks to grow the overall market in order to createnew users of products and services, such as condoms,ORS, bed nets, etc. to raise levels of use among targetgroups. •^ The market is segmented into homogenous groupswith similar income and socio-demographics, whichcan best be served by different sectors (Chapman, etal., 2006). •^ The relative strengths of each sector (commercial,social marketing, public, nongovernmentalorganization, etc.) are harnessed to maximize efficiencyby allowing each sector to target its resources to thosemost in need. •^ We’ll see examples of these principles in action today

Why does TMA matter?

-^ Health can be promoted by increasing demand forproducts and services that support healthy behaviors(e.g., condom use, purifying water) •^ Developing economies are often too fragile andfragmented to create demand at all, or on pace witheconomic development •^ Inadequate public sector resources to achieveequitable coverage and sustain it; “donor fatigue”; andthe unmet needs of substantial segments of thepopulation even after implementation occurs •^ Aims to create demand and correct marketplaceinequities, leading to long-term health promotion andgrowth of a ‘healthy market’

Hypotheses & assumptions

-^ Social marketing aims to open up the market tothe commercial sector over the long termthrough effective targeting of socially marketedproduct subsidies •^ Long-term, to grow the total market (increase thenumber of total users among those who needproducts such as condoms or bed nets), themarket must be large enough to attract thecommercial sector and that sector to grow •^ This requires that consumers be willing to pay,according to ability

How to make this happen?

-^ Free products for those too poor to pay, subsidizedproducts for those with some means, and commercialproducts for those who can pay full price. •^ Pollard (2007) suggests that consumers must become“self-reliant” and that subsidized product sales shouldhelp to increase the commercial market •^ This means consumers must be weaned from freepublic sector products by distributing socially marketedproducts at a price point that encourages use andgenerates demand •^ Over time, this will grow the total market •^ But what’s the evidence that this works?

Larger questions

•^ Do social marketed brands influence demandfor condoms? •^ Are people more willing to pay for condoms ifthey have a strong relationship with condombrands? •^ Can social marketing techniques like brandingactually increase the total market?

METHODS

-^ Observational Design, 1 data collection time point •^ Data collected in November 2010 •^ Random, nationally representative sample of Zimbabweanmen aged 18-49 residing in rural and urban areas •^ Quantitative and qualitative data collected •^ Sample size estimate based on following assumptions:^ –

Design effect = 1.5 – Alpha (5%) = 1.64 – 50% brand equity among current

P+^ users

-^ 15% difference to be detected

Willingness to Pay Higher Prices: Ordered

Logistic Regression

Sample Includes All Users

Protector Plus

Free/Government

Brand Equity Scales

Odds Ratio

p-value

Odds Ratio

p-value

Satisfaction/loyalty

2.^

<0.

1.^

Perceived quality

0.^

1.^

Leadership/popularity

1.^

1.^

Perceived value

1.^

3.^

Brand personality

1.^

1.^

Market Barriers

1.^

<0.

n/a

-^ Current P+ users are more willing to pay given higher loyalty, personality^ associations and lower market barriers. Free users are willing to pay more given^ higher loyalty, quality, and value.

Discussion & Conclusions

-^ Potential to increase demand and grow the total market –many users are willing to pay more if they have brand equity •^ Some free users (including lapsed P+) may be willing to switchto a paid product such as P+ •^ This could be done through social marketing – effective brandmanagement and raising their brand equity in P+ •^ Limitations: Self-reported data, no follow up over time,snapshot of time and thus only a starting point •^ Future research: Need to examine how and under whatcircumstances social marketing can create demand andincrease total market for condom sales and use