Download Centre of Excellence for Public Sector Marketing

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The State of Marketing in the Public and Non-Profit Sectors
Jim Mintz, Director
Centre of Excellence for Public Sector Marketing
Centre of Excellence for
Public Sector Marketing (CEPSM)
Our Mission
To advance the marketing discipline in the public sector.
Our Mandate
To provide a focal point for public sector marketing
expertise that will encourage and support innovation in
marketing, communications and delivery of services to
Canadians, while instilling pride in the field of public
sector marketing.
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Centre of Excellence for
Public Sector Marketing (CEPSM)
Professional Development and Training
 Workshops, courses (Professional Certificate In Public and Non-Profit
Marketing) Ottawa/Toronto
 In-house training and coaching
Professional Advice and Coaching
 Strategic marketing planning/research & marketing performance
measurement
 Revenue/cost recovery strategies and marketing best practices
assessments/audits and human resource management (marketing)
 Strategic marketing for web and interactive products
 Partnership/strategic alliance strategies with private and other sectors
Tools and Resources
 Web-based information/tools/resources/speakers for conferences
www.publicsectormarketing.ca
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CEPSM Clients
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Setting the Scene
Long-standing debate about the relevance of marketing to the
public sector and, to a lesser extent, the non-profit sector, e.g.
 Marketing implies economic choice, which does not always apply to
government or non-profit situations
 The concept of democracy does not lend itself to influencing attitudes
and changing behaviour (as opposed to responding to the unfiltered
demands of citizens)
These notions have now been dismissed as overly simplistic
given the range and complexity of government and non-profit
activities
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Setting the Scene
Initial resistance and lack of perceived applicability gave
marketing a late start; however, it has now been recognized that
there are qualified applications of marketing that can make a
significant impact.
 Social marketing can help to change attitudes, values and behaviour
for the collective well-being
 Strategic marketing, segmentation and other concepts can be applied
to improve the impact of programs and services
 Marketing techniques can be used to help make better resource
trade-off decisions
 For fee-based products and services (including fundraising), product
marketing concepts can be used to improve uptake
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Setting the Scene
 Important to advance good marketing practices within both the
public and non profit sectors
The purpose of the “State of Marketing” survey was to do exactly
that:
 It can be used as a benchmark to determine the marketing health of
public and non-profit organizations
 It can be used to identify specific training and development initiatives
to effect improvement
 It can be used to gauge the success of these interventions
 A concerted effort to improve the state of marketing can have a
positive impact on employees, citizens, stakeholders
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The Nuts and Bolts of the Study
Online survey of 575 people in marketing-related positions in
government and non-profit organizations across Canada
 Email invitation with one follow-up to a list of approximately 6,000
people in government and non-profit organizations (identified as
being in marketing-related positions)
 Response rate was 10% (over 600 began the survey)
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The Nuts and Bolts of the Study
Respondents rated their organization based on agreement or
disagreement (5 point Likert scale) with 72 statements related to
different aspects of marketing
 Statements were based on an extensive literature review to identify
best practices and characteristics of marketing organizations
 Definitions were included to ensure common understanding of key
concepts, terminology
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The Nuts and Bolts of the Study
 Using an analytical technique called factor analysis, the 72
measures were condensed into 8 underlying constructs that
can be used assess the marketing health of organizations in
the public and non-profit sectors. These are:
1. Marketing Information and Measurement
2. Planning
3. Culture
4. Management
5. Knowledge and Skills
6. Organization
7. Outputs/Results
8. Resources
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The Nuts and Bolts of the Study
 Performance indices were developed by averaging the scores
on the individual measures included in each construct and
then converting the scores to a 100-point scale
 100 = all individual measures received a rating of 5 out of 5, indicating
strong agreement
 75 = average rating of 4 out of 5, where 4 indicates some measure of
agreement
 50 = average rating of 3 out of 5, where 3 indicates that they neither
agreed nor disagreed
 25 = average rating on all individual measures of 2 out of 5, indicating
some disagreement
 0 = all individual measures received a rating of 1 out of 5, indicating strong
disagreement
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The State of Marketing
Rating of Public and Non-Profit Organizations
Based on Key Marketing Health Indices
Culture
Organization
Planning
Management
Knowledge & Skills
Marketing Information &
Measurement
Resources
Results & Outputs
D is a gre e
0
10
20
30
40
A gre e
50
60
70
80
90
100
Index Rating
Non-Profit Sector (n=275)
Government Sector (n=300)
Total (n=575)
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Behind the Numbers
Culture
Culture Measures
Government
Non-Profit
Managers and staff understand client motivations for using their programs
3.2
3.5
and services
“The concept of marketing, or social
There is a shared
understanding
of the
priority
clients/audiences
“We seem
to take one
step
forward
and
then two
every
time there’s
a of priority
Senior executives
andsteps
boardback
members
consider
the needs
in the
government environment.”
audiences change
when making
decisions
marketing for that3.1
matter, is not really
part
3.4
of the lexicon in this department.”
3.3
3.7
Everyone in the organization is focused on delivering superior value and
service
3.5
4.0
There is a common understanding of marketing across the organization
2.3
2.8
The organization is flexible in responding to changes in audience needs
3.1
3.7
There is collaboration between marketing and non-marketing functions
3.1
3.4
“The
department
know
or want to
know
Senior
executives
have adoesn’t
good grasp
of marketing
principles
2.5
3.1
2.9
3.4
Developing new, valued approaches to serving clients is encouraged
3.6
3.9
Complaints from clients are not ignored
4.0
4.3
Marketing is recognized as an essential function within operational units
3.3
3.9
how marketing fits into initiatives because it
There
is coordination
across workgroups
to view clients through a single lens
sounds
too pro-business
and nongovernmental.”
* Numbers represent mean score on a 5 point scale,
where 1 means strongly disagree and 5 means strongly agree
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Behind the Numbers
Culture
Organization Measures
Government
There is a senior management position with overall responsibility for
planning and coordination of marketing across the organization
Non-Profit
3.7
3.8
“Marketing
here
is governed
by for
a marketing works “Historically, marketing and
The senior
executive or
manager
responsible
3.7
4.2
centralized
communications
communications were considered
closely with
the head (DM,
CEO, Executivedepartment
Director) of the organization
that finds
marketing
to the
be marketing
a foreignand communications
synonymous. Only recently have we
There is strong
alignment
between
3.4
3.8
started to recognize the difference.”
functionsconcept.”
There is a distinct group with responsibility for planning and
coordination in relation to client-centred objectives
3.8
3.3
The organization distinguishes between marketing and communications
3.6
3.6
Staff in the unit responsible for marketing work with managers and staff
in operational or program groups
3.6
3.7
Responsibilities of the marketing function extend beyond
communications to include a role in program and service development
3.5
3.9
Strategic marketing is a top priority for the organization
2.7
3.4
* Numbers represent mean score on a 5 point scale,
where 1 means strongly disagree and 5 means strongly agree
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Behind the Numbers
Culture
Planning Measures
Government
Non-Profit
The organization has a clearly defined brand strategy and vision
3.1
3.5
Measurable marketing objectives are established at the organizational
level
2.6
3.2
“We do
notare
have
an overall
marketing
plan. Each
Marketing
plans
prepared
for programs
and services,
including
specific
goals
and
marketing
mix
strategies
program has a plan if it is appropriate and each
2.9
3.0
program is
funded
in this
As anand
NPO,
weofdo
The marketing
plan
is aligned
withway.
the mission
vision
the
not have the resources for a marketing position. As
organization
3.3
3.6
Marketing plans are regularly revisited and updated based on changes
in theprograms.”
environment
2.8
3.0
There are clearly defined communication strategies linked to marketing
plans
3.0
3.1
There is a formal marketing planning process at the organizational level
2.6
2.8
Client/audience segments are identified and targeted on a priority basis
3.2
3.3
Marketing budgets are established based on identified strategies and
tactics
2.6
2.9
Marketing decisions are made based on intelligence and evidence
3.0
3.3
well, we do not market the organization, but specific
* Numbers represent mean score on a 5 point scale,
where 1 means strongly disagree and 5 means strongly agree
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Behind the Numbers
Culture
Management Measures
Government
Non-Profit
There is a clear process to bring clients into the system and address
their requirements once they have been identified
3.2
3.5
There is a close working relationship with stakeholders and partners
involved in the delivery of products, programs and services
3.4
3.5
High value ideas and innovations that are identified are acted upon in a
timely manner
2.7
3.2
The activities that we engage in are strongly aligned with the overall
3.6
4.0
“I would like to see a coordinated effort
image that we want to project
“My
organization
seems
putofno
We
actively
communicate
the to
value
ourvalue
programs, products and
3.4
3.7 of
marketing communications.
Instead
on marketing
or feel they don’t need it.
services
to clients/audiences
between what we call project leaders and
We use marketing and communications
marketing products or services based on
Fees (where charged) are based on an understanding of the impact on
3.3thrusts, look at3.6
internal political
what
in a reactive
manner.”
usage
and uptake,
as well as cost-recovery or revenue requirements
people actually need, built it, market it
The client experience is coordinated to ensure consistency across and continually
2.9
3.2 to
serve these clients
different service delivery channels
meet their needs.”
The process for identifying and developing new products, programs and
services is proactive rather than reactive
2.6
3.1
There is a clearly defined process for identifying and developing new
products, programs or services in response to client needs
2.7
3.0
* Numbers represent mean score on a 5 point scale,
where 1 means strongly disagree and 5 means strongly agree
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Behind the Numbers
Culture
Knowledge & Skills Measures
Government
Non-Profit
Marketing
managers
staff are encouraged
to attend
courses, staff
“Often in
smallerand
municipalities,
there are
no designated
seminars
and
conferences
to
develop
their
marketing
expertise
for marketing, and only limited direct marketing resources.
3.3
3.3
Marketing
is either
shared
by severalpositions
staff or have
only received
part of one
People
in service
and program
management
training
in marketingresponsibilities.
principles and management
staff member’s
And, this staff member has
2.5
2.6
usually
the role
mayqualified
not have
formalstaff
We
have noevolved
difficulty into
attracting
and and
retaining
marketing
2.8
2.8
The organization readily adopts new techniques, including technologies,
required to deliver marketing strategies
2.7
3.1
Staff members are encouraged to acquire the resources (tools,
services, outside consultants) they need to conduct marketing activities
3.0
3.2
Staff in the group responsible for marketing tend to have backgrounds
(education or work experience) in marketing
3.2
3.2
education in marketing.”
“Marketing is not respected by
colleagues. Economists have
much more “cachet”.”
* Numbers represent mean score on a 5 point scale,
where 1 means strongly disagree and 5 means strongly agree
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Behind the Numbers
Marketing Information & Measurement
Marketing Information Measures
Government
Non-Profit
Research is used to assess the extent to which we are delivering
superior value to clients
3.0
2.9
Insights from multiple sources (e.g. marketing research, internal
databases, managers) are integrated to create a full view of audiences
2.9
2.7
Research is used to track brand awareness and image
2.8
2.6
Marketing research is used to develop new products, programs,
services or marketing programs
2.7
2.8
Primary and secondary marketing research is used on a systemic basis
to understand client markets and evaluate elements of the marketing
mix
2.7
2.5
“Our organization
of developing
We have good measures of our market penetration,
as well as an has a long history
2.9
3.0
products
and services
understanding of which audiences are not using
our programs,
productsand subsequently delivering
or services
them to Canadians with the misconceived idea that
they are
theincorrect
products and services. We have
Our organization is very good at identifying potential
shifts
the market
2.6
2.9
done an abysmal job of determining what clients
before they have a significant impact on our performance
want.”
We have a good understanding of our strengths and weaknesses
relative to alternate programs and options available to clients
3.2
3.6
We have a good understanding of client segments and are familiar with
the characteristics of each segment
3.4
3.5
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Behind the Numbers
Marketing Information & Measurement
Marketing Information Measures (Cont’d)
Government
Non-Profit
A process is in place to measure marketing performance against stated
objectives
2.7
2.8
Measurement results are actively used to identify priority areas for
improvement
2.9
2.9
Information on clients/audiences is shared across work groups or
relevant partners to develop a common understanding of the audiences
2.8
3.0
thisinsights
organization does undertake
Information systems make it easy to access, analyze“While
and share
2.8
marketing related to events and
into client markets
2.8
membership, there is no budget nor will
3.0
(from upper management)2.8
to measure
success
offunds
our efforts, which is essential to
We have a good understanding of how to allocate our
marketing
2.8
2.9
any plan.”
to achieve optimal impact
Our organization regularly achieves or exceeds its marketing objectives
Managers and employees are rewarded for achieving marketing
objectives or improving value delivered to clients
2.3
2.3
* Numbers represent mean score on a 5 point scale,
where 1 means strongly disagree and 5 means strongly agree
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Behind the Numbers
Resources
“As a non-profit organization, the resources available
for marketing are extremely limited. There are huge
expectations from government partners to undertake
marketing activities, but very few resources allowed
to do so. Government partners also have difficulty
understanding that marketing tools need not be flashy
Resource
or expensiveMeasures
to have impact.”
Government
Non-Profit
Marketing budgets (including communications) are sufficient
2.5
2.6
from year to year to implement identified strategies and
tactics
“The public sector does not generally
The number of staff working in the unit responsible for
2.6
recognize and2.6
value the marketing
marketing is appropriate for the size and needs of our
function, so it is usually under-staffed
organization
and under-funded. With the lack of
dollars, the marketing function then
under-delivers.”
“The marketing budget and activities are very dependent on funds raised
from government and business, and it varies from year to year. This makes
it difficult to retain staff. Without staff, it is difficult to develop and follow a
marketing strategy.”
* Numbers represent mean score on a 5 point scale,
where 1 means strongly disagree and 5 means strongly agree
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Behind the Numbers
Results & Outputs
Output Measures
Government
Non-Profit
We have attracted new clients or members to use our programs and
services
3.5
3.8
Clients have migrated from other alternatives to our programs and
services
2.9
3.3
Client satisfaction is maintained at high levels
3.5
3.8
Revenues from fee-based products, programs and services (including
fundraising) have grown
3.0
3.6
Our organization and its mandate has gained in prominence and
importance among funding stakeholders (including government and
political) as a result of marketing activities
3.3
3.6
There has been a measurable impact on the attitudes and behaviours
of the audiences we target
3.4
3.4
Our products, programs and services are unique or more highly valued
relative to other alternatives
3.4
3.7
* Numbers represent mean score on a 5 point scale,
where 1 means strongly disagree and 5 means strongly agree
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Key Findings
Overall, professionals involved in marketing gave their
organizations a low overall score across all of the factors deemed
to be important for successful marketing. In particular, lower
ratings were given to resources, marketing information and
measurement, knowledge and skills, and planning.
Although non-profit organizations tend to score higher on all
indices, the study paints a bleak picture of the overall marketing
health of these two sectors. Government, in particular, seem to
lack the culture, strategic planning environment,
management systems, knowledge and skill set, marketing
information and performance measurement regime that are
indicative of market-centred organizations.
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Key Findings
Analysis by level of government suggests that crown
corporations and provincial / municipal government organizations
demonstrate a stronger orientation towards marketing compared
to the federal government.
Within the government sector, a higher proportion of provincial
and municipal government organizations scored better on the
culture index compared to federal government organizations.
In comparison to government, non-profits exhibited an
organizational culture that was more focused on offering value
and service.
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Key Findings
Both government and non-profits demonstrated particular neglect
for incorporating a formal marketing planning process and
establishing measurable marketing objectives at the
organizational level.
Public sector organizations fail to consider client needs when
developing service approaches and product/program/service
offerings. Governments, scored low on implementing a proactive
process that considers client needs when identifying and
developing new products/programs/services,
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Key Findings
The performance of both government and non-profits on
knowledge and skills of marketing indicates that, while some
organizations display a willingness to provide the necessary skills,
they do not necessarily back up this promise in terms of
organizational support and culture.
Marketing professionals in both the government and non-profits
noted that their organizations were particularly poor performers
when it comes to rewarding staff for achieving marketing
objectives or improving value delivered to clients.
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Key Findings
Government and non-profit organizations do not effectively use
market research and other lines of evidence to gather information
to support their marketing function.
Government and non-profit organizations tend to be reactive,
rather than have proactive systems in place to address shifts in
the marketplace.
Marketing within both government and non-profit organizations
tends to be managed in silos (based on program or operational
units),
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Key Findings
A majority of respondents indicated that marketing planning will
be a priority area of focus for their organization in the coming year.
Marketing professionals from non-profit organizations expected
service quality and client relationship management to be a priority
in the coming year, while government organizations will place
some priority on managing service delivery channels.
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Implications and Directions
Need to educate senior managers in government and non profits
about value and applicability of marketing i.e. potential impact on
effectiveness/efficiency of programs, and services as well as
benefit to citizens.
Wide recognition of the role and value of the communications
function in both government and non profits. Opportunity to
broaden this function to include a strategic marketing mandate
thereby re-positioning it as an expanded role. Viewing
communications within a broader strategic marketing framework
will help to drive results in program uptake, program impact and
behavioural change.
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Implications and Directions
Marketing does not occupy an institutionalized position. No clear
marketing function or job category and few positions include
“marketing” in their titles. Need to look at process for hiring
marketing personnel and assigning responsibility for marketing to
senior manager
Need to examine the process used to develop and manage
client-centred products, programs and services.
Marketing management systems and practices must be adopted
from the planning level on down.
Measurement systems must be put in place to track success
against marketing objectives and make necessary adjustments to
improve performance.
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Implications and Directions
Many in government and non profits identify marketing with cost
recovery or revenue generation. It is true that marketing can assist
in these areas but it can also be a useful paradigm and more
valuable for other goals of government and non profits, such as
improving relationships with groups and individuals with
whom the organization interacts, and serving clients better.
Most people performing marketing functions in public and non
profits do not have formal training in marketing; therefore need for
marketing training such as “Professional Certificate in Public
Sector and Non-Profit Marketing” run by Sprott School of Business
as well as keeping up to date on public sector marketing issues by
attending the annual MARCOM conference in Ottawa in June.
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Implications and Directions
Marketing can be beneficial for the following four reasons:
 existing and potential clients are guaranteed to play a major role in
developing and implementing a program/product/service;
 all program elements are focused on behaviour change instead of
settling for changes short of that goal, such as awareness;
 initiatives tailored to specific segments of the market ensure efficient
use of limited resources; and
 the application of 4 Ps will always ensure that the campaign will move
beyond just promotion.
As non profits/government continue to try to meet the challenges
associated with demands for better and improved service delivery
with budgetary constraints, new and different models of
management need be considered. Marketing presents a
comprehensive, integrated and innovative approach.
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Order Copy of Report
www.publicsectormarketing.ca/resources_e
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Articles on the Survey
GOVERNMENT FAILS TO PICK UP MARKETING BEST PRACTICES
http://www.networkedgovernment.ca/MarketingPracticesMintz
THE CASE FOR MARKETING IN THE PUBLIC SECTOR
http://www.optimumonline.ca/frontpage.phtml
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Questions?
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Our Mission:
“To advance the marketing discipline in the public sector.”
Jim Mintz
Email: [email protected]
x18
Marketing “Vital Signs” Checklist
Take the Test:
“You know you are a marketing-driven organization when…”
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You know you are a Marketing
Driven Organization when:
1.
Do not use terms like “general public” when referring to your target
audience
2.
“Plan” is more than a four letter word
3.
All marketing activities are coordinated and integrated into an overall
plan
4.
You focus on results and NOT process and politics
5.
Your organization takes “risks”, although ensuring they are “reasoned
risks”
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You know you are a Marketing
Driven Organization when:
6.
You do not keep doing the same things every year (Prgms, etc…)
7.
Marketing campaigns consistently meet their goals and objectives
8.
You take action when results are not achieved
9.
You have a clear understanding of the needs of your target group(s)
10. You have a dedicated marketing budget
11. Your organization’s brand has value
12. “Reinventing the wheel” is not standard operating procedure
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You know you are a Marketing
Driven Organization when:
13. You value training in areas like marketing and communications
14. Performance measurement is something that your organization does
regularly
15. You are up to date with the latest trends, technologies in the area of
marketing and communications
16. Branding is more than a visual identifier
17. You are open to change
18. You see the need to understand your “competition”
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You know you are a Marketing
Driven Organization when:
19. Your organization is focused on “outcomes” not “ outputs”
20. Evidence-based decision making is in your organization’s vocabulary.
21. Strategic alliances/partnerships are a key component of your
marketing activities
22. Your marketing objectives are SMART (Specific Measurable,
Attainable, Realistic and Time Limited)
23. Your organization does not use the web as a warehouse to store
information
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You know you are a Marketing
Driven Organization when:
24. You use all the elements of the marketing mix (4 p’s) and not just
promotion
25. You organization believes that the ultimate objective for marketing is
not education and creating awareness, but behaviour change
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You know you are a Marketing
Driven Organization when:
If You Scored:
20 – 25 You have the tools, processes and culture in place to be
successful and sustainable
15 – 19 You are on the right path, but need to examine those areas
where you are weak
10 – 14 You are most likely struggling and need to take a hard look at
priorities and processes
 6 – 9 You are on the borderline of existence as an organization
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Our Mission:
“To advance the marketing discipline in the public sector.”
Jim Mintz
Email: [email protected]