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Course in non-profit and
public marketing
Lecture 3
Marketing tools and techniques in
a non-profit world
First lecture: Three sectors
Government
Private
sector
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 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
Marketing as an add-on or as a
philosophy
M
M
”Customers”
Charities
Arts
organisations
Education
Individual
donors
Visitors
Students
Corporate
donors
Audiences
Alumnie
Recipients of
Corporate
goods/services sponsors
Industry
Charitable
trusts
National
government
Arts funding
bodies
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
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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
•
•
•
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”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
•
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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
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PEEST analysis
Competitor analysis
Collaborative analysis
Market analysis
Analysis of publics
Analysis of own organisation
Peest
•
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Political
Economic
Environmental
Socio-cultural
Technological
Analysis of Competitors
•
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Competitors for resources
Competitors for provision of nonprofit services
Organisations with competing missions
Competitor analysis:
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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
Strong Average Weak
Early development
A
Take-off
B
Rapid Growth
Competitive shake-out
Maturity
Market saturation
Stagnation/decline
C
E
D
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
•
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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:
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Specific
Measurable
Achievable
Relevant
Timescaled
Helge Kvam’s Goal for the Door-to-Door Collection:
• 20.000 volunteers
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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
high
Deansville
low
Wardtown
high
Quality of life
Coinsville
Bloomsville
Beechley
low
Sargeant, 2009, p. 148-149
Positioning
Academic reputation
high
Deansville
Bloomsville
low
Wardtown
high
Quality of life
Coinsville
Bloomsville
Beechley
low
Tactics
The 4 P’s (the marketing mix)
• Products/Services
• Price (entrance fees, service charges,
donotions, contributions, etc.)
• Place
• Promotion
Next time…
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Communication campaigns.
What is communication?
”When bad ads happen to good causes”
Please read Chapter 5 in Sargeant’s book.