Author(s):
1. Ana Bulić, Faculty of Economics, University of Split, Croatia
2. Zoran Mihanović, Faculty of Economics, University of Split, Croatia

Abstract:
Today, in modern, developed societies, the focus is more on quality than quantity of life. Since the public sector is aiming to transform the society into a community of responsible individuals oriented towards personal/family progress, but also towards the progress of the community, the public sector becomes an important regulator of social welfare. In past, marketing was the marginally used in the public sector, but in the last decade it is attracting more and more attention. Achieving better performance of public enterprises on one hand and societal benefits on the other will be easier if the integrated approach of social marketing is used, applying marketing principles and techniques to influence the target audience to voluntarily accept, reject, modify or abandon certain current behaviors. Business entrepreneurs typically measure performance in profit and return but social entrepreneurs adopt a mission to create and sustain social value. They also take into account a positive return to society. The aim of this research is to explore benefits of using the concept of social marketing in public sector and to support the results with example from practice. The research was conducted by studying the municipal waste management in the city of Split and the surrounding area (Republic of Croatia). The study included a public company that performs this activity and citizens who use the services of the company. All was compared with municipal activity of the city of Graz (Austria), representing a good example of waste management practice. Several things were investigated: whether a public enterprise uses a concept of social marketing and to what extent; does it inform and educate users and does it meet the expectations and their desires; to what extent customers of public enterprise show environmental consciousness and what is their attitude related to the potential change their own behavior towards socially responsible behavior. Research results showed that users’ needs and desires are inadequately met by the public enterprise and that users are not sufficiently informed and educated about their services and the new, desired behavior that the company wants to adopt (e.g, recycling). The results also demonstrated that users are willing to change their behavior towards socially responsible behavior that will be necessary for implementation of standards and regulations specified by the European Union on environmental protection. Ultimately, it is concluded that the public company inadequately uses the concept of social marketing. However, due to changing conditions in the society, social marketing is becoming a necessary tool by which companies in the public sector can influence the changing behavior of its users, in order to achieve better performance and to meet needs and desires of individuals, but also to accomplish societal benefit.

Key words:
social marketing, entrepreneurship and public institutions, environmental awareness, municipal waste management, the case of public sector in Croatia

Date of abstract submission:
20.11.2013.

Conference:
REDETE 2014 - Researching Economic Development and Entrepreneurship in Transition Economies