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Charity Marketing

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Ian Bruce, Cass Business School …

Ian Bruce, Cass Business School
www.charitycomms.org.uk/events

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  • 1. SUCCESSFUL CHARITY MARKETINGPROFESSOR IAN BRUCE CBECHARITYCOMMS CONFERENCE 2 DEC 2010
  • 2. NP MARKETING - PENETRATION• Very good into F/R• Very good into Comms• Fair into Campaigning• Poor into service delivery – Why? Sleazy image
  • 3. Marketing is meetingcustomer needs within theobjectives of the organisation
  • 4. MARKETING- Philosophy, Frameworkand Management Tools to Ensure aNeeds Led Approach to VoluntaryOrganisation Work
  • 5. • Why is marketing approach relevant?• Why is there resistance?• Who are our customers?• What are our products: goods, services, ideas• The marketing framework and tools:• Segmentation• Market research• Other player analysis• Positioning• The voluntary organisation/charity marketing mix
  • 6. WHY ARE CHARITIES NOT AUTOMATICALLY CUSTOMER ORIENTATED?• Often are monopolies• Demand outstrips supply• Beneficiaries too weak to make their voices heard• ‘haves’ can develop a patronising attitude towards ‘have nots’• professionalism and professional distance• impact of belief• action orientated, research a luxury• consumer rights may be seen as alien to mission• Concentration on too few beneficiaries, poor services to the masses• amelioration can lead to acceptance of the status quo and that the beneficiaries’ predicament is their ‘fault’• Bruce, 2005, Charity Marketing, pp 104-111
  • 7. VOLUNTARY ORGANISATION CUSTOMERS Bruce, p 30Beneficiaries Supporters Stakeholders RegulatorsClients Donors Staff Charity CommissionStudents Volunteer Fund- Representatives of raisers beneficiaries Local AuthoritiesPatients (inspection) Voluntary Service CommitteeUsers workers members Local communityPurchasers AdvocatesLocal Public PurchasersMembersAudiencePatrons
  • 8. VOLUNTARY ORGANISATION CUSTOMERS Bruce, p 30Beneficiary Supporter Stakeholder RegulatorIntermediaries Intermediaries Intermediaries IntermediariesStatutory Providers Church leaders Staff managers MPsand Purchasers Union Home OfficeCommercial Company Chief RepresentativesProviders Executives Local councils Committee leadersFamily Purchasers School Head Teachers, etcVoluntary orgProvidersPolicy-makersDecision-makers
  • 9. TYPE OF PRODUCTS• GOODS• SERVICES• IDEAS
  • 10. A GOODS-SERVICE CONTINUUM Shostack (1977), p 77 Salt Soft drinks Detergents Automobiles Cosmetics Fast-food outlets Intangible dominantTangible dominant Fast-food outlets Advertising agencies Airlines Investment management Consulting Teaching
  • 11. EMPOWERMENT Bruce, p80 GoodsService Idea
  • 12. RULES OF PRODUCT COMPOSITION Bruce, p 821. All products have actual or latent physical goods, service and ideas components.2. Successful marketing requires that all three components are attended to if the maximum number of customers is to be recruited and retained
  • 13. Product Customer(goods, (beneficiaries,services, supporters,ideas). stakeholders, regulators).
  • 14. Segmentation criteria - • Demographic • Geographics • Behavioural • Psychological/attitudinal
  • 15. Defining segmentation…. • Size • Criteria • Reachable • Cost • Competition
  • 16. PositioningHarrison (1987), p 7, in Bruce p 57The sum of those attributesnormally ascribed to it by theconsumers – its standing, itsquality, the type of people who useit, its strengths, its weaknesses, andany other unusual or memorablecharacteristics it may possess, itsprice and the value it represents.
  • 17. Market Strategy choices• Market leader• Market nicher• Market challenger• Market follower• Kotler and Andreasen (1991), p 206, in Bruce, p56
  • 18. Other Player (Competitor)Analysis• COMMERCIAL SECTOR• STATUTORY SECTOR• VOLUNTARY SECTOR• INFORMAL SECTOR
  • 19. 8 POINTS OF CHARITY MARKETING MIX Bruce, p 64• PRODUCT (goods, services or ideas): consisting of quality features, name, packaging, services, guarantees.• PRICE comprising price, discounts, allowances, credit.• PROMOTION consisting of advertising, personal selling, intermediary referral, customer referral, sales promotion, public relations, coalition building.• PLACE consisting of distributors, retailers, locations, inventor, transport.• PEOPLE consisting of personnel (training, discretion, commitment, incentives, appearance, interpersonal behaviour and attitudes) and other customers (including behaviour, degree of involvement and customer-to customer interaction).• PHYSICAL evidence consisting of environmental factors such as furnishings, colour, layout and noise level; facilitating goods; tangible clues.• PROCESS consisting of policies, procedures, mechanisation, employee discretion, customer involvement, customer direction and flow of activities• PHILOSOPHY consisting of philosophy of the charity as a whole, and philosophy to be applied to the specific product
  • 20. FULL DEFINITION in p4, BruceMarketing is the analysis, planning, implementation,and control of carefully formulated programmesdesigned to bring about voluntary exchanges ofvalues with target markets to achieve institutionalobjectives. Marketing involves designing theinstitution’s offerings to meet the target markets’needs and desires, and using effective pricing,communication, and distribution to inform, motivate,and service the markets.• Kotler and Fox (1985), p7
  • 21. RELATIONSHIP MARKETING• Establishing relationships (product, segmentation and targeting, people)• Strengthening relationships (Market research, spotting problems and encouraging complaints, service recovery, QUALITY)• Customer appreciation and recognition• Relationship strategies: financial, social and structural bonding (including memberships)
  • 22. BASIC VOLUNTARY ORGANISATION MARKETING/SERVICE PLAN Note All the measures which follow should describe last year’s actual, this year’s forecast, and next year’s target.• Name and very short description of the product. (Goods/service/idea)• Existing customers: who are they, how many of them, characteristics, how segmented,etc.• Total market size: who are they, how many, etc• Key customer needs and how the product meets them.• Philosophy underpinning the product.• Price.• Promotion (personal selling, advertising, PR, leaflets, etc).• Distribution ( how is the product delivered?)• People involved• Key physical evidence• Key aspect of processes to ensure take up• Marketing and market research (include evidence of unmet need.)• Other players• Appendix of other/additional relevant data• Bruce (2005), p121
  • 23. FACTORS TO CONSIDER WHEN INTRODUCING A MARKETING APPROACH INTO AN ORGANISATION• RESOURCES ( People and money)• (Existing people, e.g. coaching; training; promotion; start where• the learner is. New people e.g. specialists, staff and board;• senior champion.) Money for marketing activities and posts.• PROCESSES• (e.g. marketing plans; segmentation; market research; promotion;• new product development; etc)• STRUCTURE• (e.g. corporate advisory posts? Departmental advisory posts?• Marketing posts in the line or as service head?• POLICY• (Incorporate a marketing approach into your corporate strategy• and encourage the idea ‘this is the way we do it here’ ie culture.)• Bruce, 2005, Ch 5