Marketing Fundamentals for NonprofitsDeborah Spector

NPO Connect Marketing & Communications Expert

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Marketing Fundamentals for Nonprofits

Goals for today’s session:

Understand the role of marketing in nonprofit organizations

Review the elements that comprise the marketing mix

Discover why a strategic marketing plan is essential

What is Nonprofit Marketing?

“Marketing is so basic that it cannot be a separate function. It is the whole

business seen from the point of view of its final results, that is, from the

stakeholder’s point of view.”

Marketing Guru Peter Drucker

What is Nonprofit Marketing?

“Nonprofit marketing is a way to harmonize the needs and wants of the

“outside” world with the purpose, resources and objectives of the

institution.”Peter Drucker

Why Marketing is important to your Nonprofit

What does Nonprofit Marketing do?

Marketing helps define and then defend an organization’s position & moves it closer & closer to success in defending its mission.

Marketing helps answer the questions: How is our program distinctive? What do we want to be known for? Why is our work relevant?

David Williamson, Marketing and Communications in Nonprofit Organizations

A Marketing MindsetRequires that your organization systematically study customer’s

needs, wants, perceptions, preferences, and satisfaction – using

surveys, focus groups and other means.

Kotler & Andreasen, Strategic Marketing For NonProfit Organizations

Why do I need a marketing plan?

A marketing plan is a clear, actionable roadmap to strategically promote your organization.

“If you don’t know where you’re going, it doesn’t matter which way you go!”

The Cheshire Cat, “Alice in Wonderland”

What are the benefits? Crystallizes and propels mission, vision Coordinates branding/messaging Educates, increases visibility Provides a framework for decisions Benchmarks performance, justifies

budget Develops a strategy for funding

Sherry Treco-Jones, Building a Strategic Marketing Plan

Strategic MarketingI. Develop Your GoalsII. Situation AnalysisIII. Market Analysis and SegmentationIV. Target MarketsV. Develop Market Strategies for Target MarketsVI. Programs and ServicesVII. Promotion and OutreachVIII. Budget DevelopmentIX. Implementation and LeadershipX. Evaluation

What is a Goal?

I – Develop GoalsA goal - Identifies what an organization wants to

achieve. Can be seen as equal to an organization’s

vision statement. Defines the desired outcome of a plan of

action. Shows the big picture of where you want to

go.

Research, Research, Research

II – Situation AnalysisA situation analysis evaluates the internal and

external environment. Knowing the environment is fundamental to success.

The analysis includes:Primary research - focus groups and

interviews. Secondary research - a review of the literature

related to the organization.

Situation Analysis – Internal Environment

Starts with where your organization is right now. Mission Values Skills Culture Systems Strengths, Weaknesses in structure,

technology, support services, etc.

Situation Analysis – External Environment

Funding climate Comparative analysis of other organizations –

your competition, and An understanding of your organization’s

market position relative to your competition. Social, cultural, technological, ecological,

economic, and political factors to effect your nonprofit.

III – Market Analysis & Segmentation

Market Analysis“The way an organization thinks about its constituencies

determines how it interacts with them.”

Market is defined as a group of people who behave in similar ways relative to your organization’s products or services.

Market is synonymous with audience, stakeholders, constituents, or clients.

Nonprofit Marketing with a Purpose

Market SegmentationSegmentation is the process of defining the largest

potential market in a way that is most useful to an organization.

Identifying market segments & their needs is the 1st step in target marketing.

Market segmentation variables: Geographic – place people call home Demographic – age, income, gender, ethnicity, marital status, race,

religion, social class Psychographic – lifestyle, interests, attitude Behavioral – way people use, benefit, obtain and are loyal to your services

Nonprofit Marketing with a Purpose

IV – Target Markets

Target Market & Target Audiences

The terms target market and target audience are interrelated, but they are not interchangeable. An organization’s target market may also be its target audience for various marketing communications, but this is not always the case. Knowing the difference can help decision-makers strengthen their organization's overall marketing strategy and develop more effective marketing communications.

MarketingProfs.com

Target Markets

Marketing experts Philip Kotler and Gary Armstrong define target market as a set of individuals sharing common needs or characteristics that the organization decides to serve. These individuals are usually the end users of a product or service.

Target Audience

Advertising specialist Tom Duncan defines target audience as "a group that has significant potential to respond positively to a brand message." The key here is the word message.; Effective marketing communications, or messages, each target a particular kind of reader or viewer. These individuals make up the message's target audience.

Really know your stakeholders

“Getting to know your supporters, volunteers, clients and other participants in your mission is easy, if you build that listening and learning

into your everyday work.”

Kivi Leroux Miller

V - Marketing Strategieso Market strategies are the comprehensive approach an

organization takes to engage its target markets. They must be action oriented.

o Strategies include: how the organization designs and delivers programs and

services; how it positions itself on issues; how it designs campaigns; where it locates or places its programs and information; how it prices or values its services; how it executes its

communication, public relations, and outreach efforts.

Classic Marketing Mix Strategies

o Product/Service - What exactly are you providing to people?

o Place - How and where will you deliver it to them?o Price - At what “price” will you provide it? How will

you get the funds to cover your expenses?o Promotion - How will you get stakeholders to use

your services?

Social Marketing Mix Strategies

Social Marketing boosts the effectiveness of your organization’s programs and activities & helps ensure you will make a difference. It adds P’s to the classic marketing mix:

Price – Adds emotional and social costs Publics – Involves internal audiences with external target

audience Partnership – Organizations that join a nonprofit to focus on

an issue Policy – Governmental or organizational policies can act as a

catalyst for social change Purse Strings -- Social marketers must be creative and

proactive in seeking funding for their campaignsNedra Kline Weinreich, Strategic Social Marketing for Nonprofits

Competitive Positioning

Sets your organization apart from your competitors and helps ensure a lasting, defensible place in the marketplace.

Identifies your services & helps ensure that your target audiences perceive your organization & offerings distinctly from your competitors.

Helps identify your competitive advantage that differentiates you from other providers.

What is a positioning statement?

A positioning statement is a tight, focused description of the core target audience to whom a brand, is directed, and it provides a compelling picture of how the nonprofit wants its targeted audiences to view them. A well-constructed positioning statement brings focus and clarity to the development of a marketing strategy and tactics. Brandeo

VI - Programs & ServicesAn organization’s programs/services are the most

visible way it distinguishes itself in the marketplace. To engage its target market, a nonprofit may need to

redesign or develop new programs. Programs must support the mission & show

congruency between activities and messages. Programs must have substance behind promises and

messages.

Nonprofit Marketing with a Purpose

VII - Promotion & Outreach

Promotion refers to all communications and outreach efforts:

EngageInformIllustrateSupport meaningful relationships with target

audience Promote meaningful engagements

Most Effective Tools or Tacticso Peer to Peero Networkingo Interpersonal connectionso Public Relationso Media/blogger outreacho Eventso Interactive activities that engageo Integrated marketing channelso Social media

Advertising

Up Dat

es

Social

Med

ia

Stakeholders

WebsiteBlogTwitterBanner Ad

Strategies

Tactics

Enterprise

A Integrated Marketing Model

3. Create The Awareness

Signature

Invite Your Audiences To Your Party

http://bloombergmarketing.blogs.com/

Integrate The Mix

Communications Central

Special Events

Building Community

Funding-Relatedo Databaseso Websiteo Direct mailo Emailo Newsletterso Testimonialso Eventso Celebrity endorsementso Media Promotionso Sponsorships

Implementation & Leadership

A strategic marketing plan is meaningless unless it is implemented.

Implementation includes buy-in from staff and leadership.

Evaluation is important to gauge if the implementation is on target.

Identify your leadership to support and promote the implementation of your plan.

Evaluation

Measure outcomes - What is working best/not working at allHave we met our objectivesHave we engaged our leadership, volunteers

and members

TakeawaysNonprofit marketing is a matter of survival.Create a dynamic team to participate in the process.No process or plan is written in stone, so be prepared to tweak as you proceed.

Thank You!

Outcomes Measurement For Programs

Marilyn L. DonnellanNPO Connect Program Planning Expert

Marketing Fundamentals for NonprofitsDeborah Spector

NPO Connect Marketing & Communications Expert

http://npoconnect.org