[MUSIC] We covered balance scorecard and dashboards in our lectures. But I thought it'd be useful for us to take a quick peek at what Carlos and Coco are cooking up. What you'll see in their scorecards are attempts to focus on the metrics that matter most. First, in Coco's model what you'll see is she's chosen a set of metrics that are absolutely measurable. She has not put anything into her model that you can't assess and track. She hasn't put in things that she might want to measure. She's put into this a series of metrics that are all very operational. And if we look at Carlos' model, what you see is he also has put in the essential elements of a good scorecard. But he's also taking it one step further. He's organized his scorecard from most significant to less significant in each of the four categories. He's focused on social impact, people metrics, financial metrics and quality indicators. But within each of those he's tried to draw out, from most significant to less significant, the indicators that he thinks are critical. Take a good look at Carlos and Coco's scorecards. I think they represent very fine examples of attempts to define metrics that can guide and inform the implementation and development of good social enterprise. We've talked about the importance of marketing, but let's take a quick peek at what Carlos and Coco are thinking when it comes to planning the marketing strategy for their enterprises. First, consider Coco's approach. What she's done here is taken the big five questions about public, product, price, place, and promotion. And for each one of them, she's started to sketch out what she thinks are the elements that fall under each of these categories. She starts with the public's and focus on farmers, donors and others who are going to be critical players in her world. And for each one of these publics, she's going to start to identify the other four Ps. And what you see is she comes up with a very interesting matrix that shows that across the matrix there's variation. Because the publics change and the price, the place, the promotion, and even the product have to vary accordingly. So the marketing matrix for Coco is the moment where she realizes that one decision is never going to be right. In fact, she needs to identify multiple dimensions for the multiple segments that she's going to speak to. Carlos also engages in the same process. He asks himself, what do those residential energy users want and what do the commercial users want? And for each one he's going to identify the product, the place, the price and the promotion that's appropriate. And most importantly, if you look at for example the last column, the promotion. He's going to use very different messaging when he wants to speak to residential customers compared to commercial customers. And this is totally appropriate. You need, in a marketing matrix, to have variation. You cannot use the same message, you cannot price identically, you cannot use the same channel or place to communicate, and you certainly can't have identical products. As the publics change you need to have variation across these different dimensions. And what Carlos has done in his marketing matrix is he's shown that he appreciates the fact that residential and commercial users have very different approaches and needs. And that the marketing approach has to be different for each of these two groups. Customer segmentation is critical, in the sense that it gives social entrepreneur a sense of who the distinct audiences might be for the product or service. Let's take a quick look at the key customer groups that Carlos and Coco have identified. For Coco it was fairly straightforward. She looked out into the world and she saw three main groups. One, small family farmers. Those were a distinct group that she encountered in her work. Second, large farms run by a mix of owners and employees. Third, heavily commercialized farms that use the latest technology. These were three main groups in agriculture throughout Central Africa that she identified. And she quickly became convinced that the market for her water pump was primarily focused on the first group, small family farms, where the intervention would have its greatest and most potential impact. Let's look at the segmentation that Carlos went through. He broke down again, according to two big groups, commercial users and household users. But then he took it another step. He said, within those two segments that he already knew exists, he said, what other further breakdowns I can make. And there he started to segment according to income and size of firm. And so what he did is he said, there are within households, higher and lower income families, and within commercial firms, there are larger and smaller firms. And for each of these four segments there are different needs and expectations. So what I think is important in Carlos's analysis is that he's gone beyond the first distinction between household and commercial users to the second step of saying, can I go one degree further? Can I understand my groups just a little bit better? And he has seen that there is, in fact, differences within the household and commercial groups. And for each of these groups, there are different needs. This is a critical part of segmentation. It's where you ask, not just what are the possible groups, but what are the ones that matter and what are the ones that I need to understand to do my work effectively? [MUSIC]
