NDIS: Marketing Your Competitive Edge
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1 A significant planned outcome for the introduction of the National Disability Insurance Scheme (NDIS) is to develop a national competitive market for the provision of disability supports. This increasingly competitive environment requires all for-profit and not-for-profit service providers to more effectively market their brand, services and value-added benefits to a large number of NDIS participants who are empowered to exercise choice and control in purchasing support services. Providers would need to deal with competitive risks in the way most businesses do. Traditionally, service providers have primarily focused on marketing the elements of their transactional services where the features and benefits of the services themselves are given centre-stage. In many cases this has led to marketing services in silos of programs of services. In the NDIS environment, a more competitive edge can be gained by focusing on a mission-based relationship marketing approach where the commitment and focus is to building and strengthening a relationship of supporting the needs and wants of the participant. Linda Hayes Business Strategist, GAICD With 20 years experience in marketing and business strategy, Linda has worked across a vast range of industry sectors to deliver business growth through better business planning and stronger needs for transport, access and mobility organisational governance. 1
2 WORKSHOP OBJECTIVES Understanding the market for NDIS-funded participant supports Importance of market research, strategy formulation and planning Segmenting and targeting the market participants needs and wants Developing a mission-based relationship marketing focus and plan Developing your value proposition and key messages Building your brand profile Communicating your competitive edge the marketing campaign Marketing metrics ensuring return on investment. needs for transport, access and mobility 2
3 Understanding the market for NDIS-funded participant supports The Federal Government s blueprint report for the NDIS stated block funding to service providers supplying individual supports would generally phase out. Providers would compete for custom, as people with a disability, or their agents, could shop around for the service providers that best met their support needs, subject to the resources specified in people s support packages. Providers would need to deal with competitive risks in the way most businesses do. needs for transport, access and mobility 3
4 Understanding the market for NDIS-funded participant supports NDIS Approved Plans primary disability types needs for transport, access and mobility 4
5 Understanding the market for NDIS-funded participant supports NDIS Approved Plans funded supports by life domain needs for transport, access and mobility 5
6 Understanding the market for NDIS-funded participant supports HANDOUT: NDIS Funded Supports - Dollar Value needs for transport, access and mobility 6
7 Understanding the market for NDIS-funded participant supports NDIS Approved Service Providers needs for transport, access and mobility 7
8 Importance of market research, strategy formulation and planning Keep up with market trends Identify potential customers Understand your existing customers Track your competition benchmark your organisation s market share Set realistic targets Develop effective relationship marketing strategies Examine and solve business problems Prepare for service/business expansion Identify present/emerging business opportunities needs for transport, access and mobility 8
9 Importance of market research, strategy formulation and planning Sources of data for market research Includes. Government agencies e.g. Australian Bureau of Statistics Federal, State and Local Government reports and data sets Internet searches Universities and research centres data sets ACNC website e.g. competitors AIS, annual and financial reports needs for transport, access and mobility 9
10 Segmenting and targeting the market participants needs and wants Carefully segmenting the market and developing an approach that maximises the value of your most desirable customer segments and the corresponding lifetime value that these customer groups produce for your company, lies at the heart of the value-creation process. Pareto Principle, or 80/20 rule, tells us not only that 80 per cent of the total sales volume of a business is generated by just 20 per cent of its customers.. Relationship Marketing: Creating Stakeholder Value Market segmentation involves grouping your various customers into segments that have common needs or will respond similarly to a marketing action. Each segment will respond to a different marketing mix strategy. For example: Demographic and socio-economic Psychographic which refers to the customer group's lifestyle. For example, their social class, lifestyle, personality, opinions, and attitudes Behavioural Geographical location needs for transport, access and mobility 10
11 Segmenting and targeting the market participants needs and wants No one strategy will suit all consumer groups, so being able to develop specific strategies for your target markets is very important. There are three general strategies for selecting your target markets: Undifferentiated Targeting: This approach views the market as one group with no individual segments, therefore using a single marketing strategy. Concentrated Targeting: This approach focuses on selecting a particular market niche on which marketing efforts are targeted. Your firm is focusing on a single segment so you can concentrate on understanding the needs and wants of that particular market intimately. Small service providers often benefit from this strategy as focusing on one segment enables them to compete effectively against larger firms. Multi-Segment Targeting: This approach is used if you need to focus on two or more well defined market segments and want to develop different strategies for them. Multi segment targeting offers many benefits but can be costly as it involves greater input from management, increased market research and increased promotional strategies. needs for transport, access and mobility 11
12 Developing a mission-based relationship marketing focus and plan HANDOUT: Example framework NFP relationship marketing plan needs for transport, access and mobility 12
13 Developing your value proposition and key messages The value proposition is a summation of all the reasons why a customer or stakeholder should use your organisation s services above other service providers. Key messages are those promotional, advertising or informational ideas and words you communicate to customers to stimulate them to rational or emotional action based on recognising the competitive value of your organisation s services. needs for transport, access and mobility 13
14 Building your brand profile Example: The Lifeline brand is a national, high profile not-for-profit brand with over 96% brand awareness and high levels of consumer trust. Lifeline works hard to deliver quality services and communications that maintain this brand integrity and community trust. The Lifeline name, logo, and dots image are all Registered Trademarks belonging to Lifeline. As the legal owner of this intellectual property, and the custodian of the national brand, Lifeline must be responsible for directing and approving all uses of the Lifeline brand.. Lifeline/Want-to-know-more-about-Lifeline-/Lifeline- Information/#Lifelinesbrand needs for transport, access and mobility 14
15 Communicating your competitive edge the marketing campaign Australian Marketing Institute Handouts: Marketing Campaign template example Marketing Campaign Implementation needs for transport, access and mobility 15
16 Marketing metrics ensuring return on investment. Australian Marketing Institute Handout: Marketing Metrics and Measurement needs for transport, access and mobility 16
17 Final questions? Thank you Linda needs for transport, access and mobility 17
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