Download Session 9 File

Nonprofit Management
dr Dominika Mirońska
e-mail: [email protected]
Agenda Day 9. Marketing
1. Marketing process for NPO
2. Segmentation and positioning
3. Marketing tools

Value

Cost

Convenience

Communication
Marketing Definitions
American Marketing Association
1935
The performance of business activities that direct the flow of
goods and services from producers to consumers.
2011
Set of processes for creating, communicating, and delivering
value to customers, and for managing customer relationships
in ways that benefit the organization, and its stakeholders.
For NPO: Building relationships with specific target
audiences that create desired action, which aligns with
the organizational mission in tangible and measureable
ways.
Marketing for Business vs for Nonprofits
Marketing
for business
Market
Customer
needs
Integrated
programs
Profits
Marketing for Mission
nonprofits
Stakeholder
needs
Integrated
programs
Results
The aim of marketing is to make selling unnecessary.
P. Drucker
The Marketing Process
1. Understand the marketplace and customer wants and
needs
2. Design a customer-driven marketing strategy
3. Construct a marketing plan that delivers superior value
4. Build profitable relationships and create customer
satisfaction
5. Capture value from customers to create profit and
customer equity
The Marketing Process for NPO
Measure &
Understand
Set goals,
strategy,
target
group/s
Create
Impact
Build
relationships
Prepare
Marketing
Program
Marketing program includes:




What are we offering? – Product/service/program
How we deliver it? – distribution / program design
How it will cost? – financial and non-financial costs
How it will be communicated – promotion
Designing Marketing Strategy for NPO

Goals




Awareness – brand, program, event, problem,…
Attitude – trust, find it important, going to support it,…
Behavior – participated, donated, bought,,…
Target group(s)



Stakeholders: clients, beneficiaries, donors,…
Segmentation
Choosing the segment(s) as target group
Market Segmentation
Market Segmentation Criteria
Country City / village Size of the city -
- Age
- Gender
- Family life cycle
- Income
- Occupation
- Education
Social class Lifestyle Values Personality -
- Occasions
- User status
- Usage rate
- Loyalty status
Designing Marketing Strategy for NPO

Goals




Target group(s)




Awareness – brand, program, event, problem,…
Attitude – trust, find it important, going to support it,…
Behavior – participated, donated, bought,,…
Stakeholders: clients, beneficiaries, donors,…
Segmentation
Choosing the segment(s) as target group
Positioning – what is the position of the offer/program in
the minds of target customers
NPO Positioning Model
Features
Rational
Benefits
Sources
of Competence
Cognitive
Benefits
Emotional
Benefits
Personality
Mission
Values
Rational Elements
Emotional Elements
Based on: E. Weisenbach Keler, M. Convay Dato-on, D. Shaw, NPO branding: preliminary lessons from major players, International
Journal of Nonprofit and Voluntary Sector Marketing, 2010, Vol. 15, pp. 105-121.
NPO Positioning Model – One Acre Fund
Target
group:
Beneficiaries
Features
- Procurement and
delivery of farm inputs
on credit
- Trainings on farming
and leadership
- Serve as bulk buyer
and crops seller
Sources of competence:
We have knowledge, founds and
systems needed for one-acre
farmers to improve their harvest,
and to sell surplus
Rational benefits
- Higher yields
- No more
hunger periods
- Financial
surplus
Cognitive Benefits
Emotional
Benefits
- I’m resourceful,
I can take care I feel proud,
secure, and
of my family
- I have control responsible
over my life
Personality: smiling farmer,
happy with his/her work and
in control with his/her life,
confident, open and
cooperative.
Mission: To eliminate hunger and poverty
among the poorest part of African society
Branding
Brand is the name, term, sign, or design, or a combination
of these, that identifies the maker or seller of a product
or service.
Functions of the brand:
 Identification
 Guarantee
 Information
 Legal protection
Designing Marketing Strategy for NPO

Goals




Target group(s)




Awareness – brand, program, event, problem,…
Attitude – trust, find it important, going to support it,…
Behavior – participated, donated, bought,,…
Stakeholders: clients, beneficiaries, donors,…
Segmentation
Choosing the segment(s) as target group
Positioning – what is the position of the offer/program in
the minds of target customers
Marketing – mix for NPO - 4Ps / 4Cs

Customer Value (Product)




tangible goods
services
social programs
Cost (Price)



financial
non-financial
Convenience (Distribution)




length/width of the channel
location
availability (time, architecture)
Communication (Promotion)


message
channels
Costs for Clients of NPO
Money
costs of lost
opportunities
Effort
Costs
Sensory
costs
Time
Psychological
cost
The Communication Mix
Advertising
Any paid form of non-personal presentation and
promotion of ideas, goods, or services by an identified
sponsor (press, Internet, TV, outdoor)
Sales promotion
Short-term incentives to encourage participation in the
program or the purchase of a product or service (lottery,
contest, price-off)
Personal
communication
Personal contact for the purpose of creating desired
action (social street workers, public charity collection,
relations with impact donors)
Direct
Making direct connections with carefully targeted
individuals using databases (mailing, e-mails, text,
phone fundraising)
communication
Public relations
Other forms
Building good relations with various publics by
obtaining favorable publicity, building up a good image,
and handling unfavorable rumors.
Word-of-Mouth, special events, Web sites, social
media, sponsorships, …
Rules of Deisigning Effective Message
Message
adjusted to:
1. Goals
Message:
Good when:
Attractive
Builds positive attitude
towards the offer
Offensive,
aggressive,
disgusting
Clear
Effectively delivers the
idea, single minded
Chaotic, overloaded,
confusing
Distinctive
Stands out from
competitors
Same as others
Reliable
Intrusive,
Argues for the benefits,
manipulates,
builds trust
ambiguous
2. Audience
3. Channels
Bad when:
All advertising should be legal, honest, truthful and
decent




Legal – principles of fair competition
Honest
 should not exploit lack of knowledge or inexperience of
consumers.
Truthful
 No advertising should mislead, or be likely to mislead,
by inaccuracy, ambiguity, exaggeration, omission or
otherwise.
Decent
 should not offend anybody’s feelings on the grounds of
gender, race, religion, sexuality, age and disability
“Regardless of the moral issue,
dishonesty in advertising has proved
very unprofitable”
Leo Burnett
Assignments for Next Session
Readings:
 Chapter 10
 Case: Newfoundland Centre for the Arts

Written assignment – individual work, paper format, to be delivered
to instructor before the class.
What are the sources of financing NCA activities. Please assess the potential
for growth for each of the source and the quality of NCA efforts concerning
each source development.