Course in non-profit and public marketing

Lecture 3

Marketing tools and techniques in a non-profit world

First lecture: Three sectors

Government

Privatesector Third

sector

First lecture…• Differences and similarities between profit

and nonprofit marketing• Similarities

– Marketing is always a relevant discipline when you have to influence the behaviour of others

– (Fisherprice and Save the Children shared quite a few techniques to touch their readers)

First lecture (continued)

• Differences– Marketing has had a particularly bad image in

Non Profit circles– Little tradition for marketing research and

ressources for this– Often controversial or taboo topices– Huge sacrifices are often demanded– Or issues to which the public is indifferent

Last time: Danish Red Cross

• Marketing task:– Getting media attention.– Getting the publics attention

• Danish families living on food rationing as in real relief work• Disaster vs. Sneaking Disasters

– Getting ideas and doubting if they were right (sex in ads, suffering children in ads)

• Ambivalence towards marketing– “I don’t believe in branding”…– (Is branding just hot air?)

Today

• Market orientation

• Marketing tools and techniques in a non-profit context: – the marketing plan

• Exercise: Non-profits missions and visions

Market orientationDefinitions:

The aim of marketing is to “sensitively serve the consumers and society at large” Kotler and Andreasen

• “Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably” The Chartered Institute of Marketing, UK

Marketing as an add-on or as a philosophy

M

M

”Customers”Charities Arts

organisationsEducation

Individual donors

Visitors Students

Corporate donors

Audiences Alumnie

Recipients of goods/services

Corporate sponsors

Industry

Charitable trusts

Arts funding bodies

National government

Advantages of marketing

Marketing can:• Improve the levels of customer satisfaction• Assist in the attractions of resources• Define an organisations distinctive

competencies, add value, refine those competencies

• Offer a systematic approach to researching needs, setting objectives, planning to meet those objectives, and help the instigation of formal control activites to ensure minimal waste of resources.

The marketing plan• Vision statement• Mission statement• Organisational Objectives• Marketing Audit• Marketing Objectives• Marketing Strategies• Marketing Tactics• Budget• Scheduling• Monitoring and Control

Vision

• Which kind of society would the society like to see? (Sargeant, 2009 .p. 81)

Mission• ”raison d’être”• The customer groups that will be served• The customer needs that will be met• The technology that will be employed in

satisfying these needs

“Aim”, “purpose” or “philosophy”• Absence of figures• What the organisation wishes to achieve

(Sargeant, 2009, p. 81-82)

The marketing plan• Mission statement• Organisational Objectives• Marketing Audit• Marketing Objectives• Marketing Strategies• Marketing Tactics• Budget• Scheduling• Monitoring and Control

The marketing planning process

• Where are we now?

• Where do we want to be?

• How will we get there?

The marketing audit• Question 1. Where are we now?• ”Assess yourselves and your opponents” Sun

Tzu, The Art of War• ”A systematic attempt to gather as much

information as possible about the organisation and its environment, and how these might both be expected to change and develop” (Sargeant, p. 83, 2009)

The marketing audit• PEEST analysis

• Competitor analysis

• Collaborative analysis

• Market analysis

• Analysis of publics

• Analysis of own organisation

Peest• Political

• Economic

• Environmental

• Socio-cultural

• Technological

Analysis of Competitors

• Competitors for resources• Competitors for provision of nonprofit services• Organisations with competing missions• Competitor analysis:

– Contact details of each competitor– Size and geographic location(s)– Financial performance– Resource capabilities– Past strategies– Tactical marketing mixes employed– Key alliances formed

More marketing audit• Collaborative analysis: who can we profit

from working with?

• Market analysis: in which market do we operate (from our own perspective, the perspective of our stakeholders)

• Analysis of Publics: ressource allocation and ressource acquisition

Life cycle matrix

     

     

     

     

      D

Strong Average Weak

Early development

Take-off

Rapid Growth

Competitive shake-out

MaturityMarket saturation

Stagnation/decline

A

B

C E

B

SWOT (summary and analysis of

marketing audit)

• What are the strengths of the organisation?• What are its weaknesses?• What are the main opportunities?• What are the major threaths facing the

organisation?= where are we now.

The marketing plan• Mission statement• Organisational Objectives• Marketing Audit• Marketing Objectives• Marketing Strategies• Marketing Tactics• Budget• Scheduling• Monitoring and Control

Setting marketing objectives

• Good marketing objectives are SMART:– Specific– Measurable– Achievable– Relevant– Timescaled

Helge Kvam’s Goal for the Door-to-Door Collection:• 20.000 volunteers• Visit every Danish household• 20 million Danish kroner

Strategies• Overall direction: develop new markets or

penerate existing markets further.• Merger/collaborative strategy: Cooperation?• Competitive strategy: Or not?• Segmentation strategy: who?• Positioning strategy: How are we different?• Branding strategy: How do we sell ourselves?

Positioning

Academic reputation

Quality of lifeCoinsville

Beechley

low

high

low highWardtown

Deansville

Bloomsville

Sargeant, 2009, p. 148-149

Positioning

Academic reputation

Quality of lifeCoinsville

Beechley

low

high

low highWardtown

Deansville

Bloomsville

Bloomsville

TacticsThe 4 P’s (the marketing mix)

• Products/Services

• Price (entrance fees, service charges, donotions, contributions, etc.)

• Place

• Promotion

Next time…• Communication campaigns.

• What is communication?

• ”When bad ads happen to good causes”

• Please read Chapter 5 in Sargeant’s book.