Course in non-profit and public marketing

1. Course in non-profit and public marketing Lecture 3 Marketing tools and techniques in a non-profit world

2. First lecture: Three sectors Government Private sector Third sector

3. 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)

4. 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

5. 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?)

7. Today • Market orientation • Marketing tools and techniques in a non-profit context: • the marketing plan • Exercise: Non-profits missions and visions

8. Market orientation Definitions: 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

9. Marketing as an add-on or as a philosophy M M

10. ”Customers”

11. 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.

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

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

14. 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)

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

17. The marketing planning process • Where are we now? • Where do we want to be? • How will we get there?

18. 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)

19. The marketing audit • PEEST analysis • Competitor analysis • Collaborative analysis • Market analysis • Analysis of publics • Analysis of own organisation

20. Peest • Political • Economic • Environmental • Socio-cultural • Technological

21. 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

22. 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

23. Life cycle matrix Strong Average Weak Early development Take-off Rapid Growth Competitive shake-out Maturity Market saturation Stagnation/decline A B B C E D

24. 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.

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

26. 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

27. 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?

28. Positioning Academic reputation high Deansville Wardtown high low Quality of life Coinsville Bloomsville Beechley low Sargeant, 2009, p. 148-149

29. Positioning Academic reputation high Deansville Bloomsville Wardtown high low Quality of life Coinsville Bloomsville Beechley low

30. Tactics The 4 P’s (the marketing mix) • Products/Services • Price (entrance fees, service charges, donotions, contributions, etc.) • Place • Promotion

31. Next time… • Communication campaigns. • What is communication? • ”When bad ads happen to good causes” • Please read Chapter 5 in Sargeant’s book.