Selling Good Works -- Fundamentals of Marketing a Non-Profit Organization


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Selling Good Works : Fundamentals of Marketing a Non-Profit Organization
Non-profit organizations are focused on helping the communities they serve. However, to effectively serve the community, there is a need to find donors, raise awareness, and find users for the organization's mission. The challenge for most non-profits is trying to achieve multiple goals with these multiple audiences. In addition, the marketing message must stand out using limited resources in a cluttered and noisy marketplace. This session addresses the unique marketing opportunities and challenges faced by charities, public service agencies, and other types of non-profit organizations including:
--Important similarities and differences between non-profit and for-profit marketing
--How non-profits should develop a marketing plan
--Getting the message out to those who need it
--Effective ways to use a small marketing budget
--Using the web and social media to communicate
--Tracking and evaluation of non-profit marketing efforts

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  • Textbook Ps include Price, Promotion, Place, and Product. Think about Passive vs. Active Marketing
  • Voice overs no longer have the “voice of God” announcer I.e. don pardo, johnny, ed macmahon Jeff Bridges for Duracell Richard Dreyfuss for Honda Gene Hackman – Lowes and Oppenhimer Funds consumers aren't eager to be ordered around by a stern baritone. Rather than obeying an authoritative voice, they look to the voice of a friend for guidance
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  • Greenpeace has been running a poll to name some whales that are traveling in the Pacific. 29 of the 30 nominations are for either mythical, Zen-ish, or new-age-type names like Kaimana, Shanti, and Aurora. And then scanning down the list, you see " Mr. Splashy Pants ". And he's winning the vote. Overwhelmingly . While there was some noted vote tampering (votes that are not going to be counted), the reason that Mr. Splashy Pants is winning is because he went viral on the net through blogs and other forms of social media. Greenpeace saw the opportunity and grabbed it. They've extended the voting to capitalize on the buzz. They quickly mobilized to develop Mr. Splashy Pants merchandise . They're embracing it on their blog . The entire affair is getting lots of press and it will probably pop up in the MSM in next few days. It's an immeasureable PR coup for the cause. But when you read through the comments on their blog and posts on other blogs, you'll find some Greenpeace supporters who are not happy at all about the name. One of the main reasons that so many non-profits (and for-profit businesses) languish is that they spend most of their time talking to the people who are already familiar with the cause and are already ardent supporters. While it's important to cultivate your core, you have to find new people in order to grow. For some of the inside core, this feels like outsiders are hijacking the organization. Some people are so comfortable and locked up in the "normalcy" of the cause or the business that they can't see the massive opportunities right below the surface. This seems obvious -- but the best way to get attention is to stand out from the crowd.
  • Selling Good Works -- Fundamentals of Marketing a Non-Profit Organization

    1. 1. Selling Good Works Marketing a Non-Profit Organization Chris Houchens www. ShotgunConcepts .com
    2. 2. Marketing is not a dirty word. &!*$?”^#@
    3. 3. Non-profits have “customers” Non-profits are a “business” Non-profits need “marketing”
    4. 4. The Challenge Non-profit organizations in the U.S. Source: NCSS 2006 profiles 1,478,194 Non-profit organizations in Indiana 34,960
    5. 5. Marketing is not a dirty word <ul><li>Marketing is a persuasion tool </li></ul><ul><li>Marketing is an information tool </li></ul><ul><ul><li>Tools can be misused </li></ul></ul><ul><li>Respect your audience </li></ul><ul><li>Communicate truthfully </li></ul><ul><li>Share relevant info with a relevant audience </li></ul><ul><li>Learn good marketing from the for-profit organizations that excel </li></ul>
    6. 6. Marketing? <ul><li>To communicate a consistent intended message to a specific intended audience. </li></ul><ul><li>Marketing is NOT just advertising. </li></ul><ul><li>Marketing is NOT just PR. </li></ul><ul><li>Marketing is NOT just sales. </li></ul><ul><li>Marketing helps CREATE the sales opportunity. </li></ul><ul><li>Successful marketing develops relationships </li></ul>
    7. 7. Non-profit Marketing Hurdles <ul><li>Money </li></ul><ul><li>People </li></ul><ul><ul><li>Limited marketing experience/knowledge </li></ul></ul><ul><ul><li>High turnover rate – loss of relationships </li></ul></ul><ul><li>Focus on the mission rather than the marketing </li></ul><ul><li>Multiple messages to multiple audiences </li></ul><ul><ul><li>Coordinating delivery of those marketing messages </li></ul></ul>
    8. 8. People Problems <ul><li>On average, only 52 percent of non-profits in Indiana have paid employees </li></ul><ul><li>The majority of non-profits in Indiana have less than the equivalent of 2 full-time employees </li></ul><ul><li>The average non-profit employee in Indiana stays with the same organization for 1.5 years </li></ul><ul><li>The majority of work in most Indiana non-profits is done by volunteers </li></ul>Source: IU 2004 Survey
    9. 9. Apathy
    10. 10. You and your cause are insignificant (to most people)
    11. 11. Typical Non-Profit Message Cycle <ul><li>Us </li></ul><ul><li>Here’s what we’re doing </li></ul><ul><li>Send us money </li></ul><ul><li>Us </li></ul><ul><li>Here’s what we’re doing </li></ul><ul><li>Send us money </li></ul><ul><li>Us </li></ul><ul><li>Here’s what we’re doing </li></ul><ul><li>Send us money </li></ul>
    12. 13. Marketing messages should be conversations, not announcements.
    13. 14. Successful marketing messages ask for the consumer’s attention FIRST
    14. 15. Effective Non-Profit Message Cycle <ul><li>Here are RESULTS </li></ul><ul><li>Here’s how it affects YOU </li></ul><ul><li>Send us money </li></ul><ul><li>Here are the results from YOUR money </li></ul><ul><li>Here’s how it affects YOU </li></ul><ul><li>Send us money </li></ul>
    15. 16. Dealing with Multiple Audiences <ul><li>The Big 3 Target Markets for Non-Profits </li></ul><ul><ul><li>Constituents / Clients </li></ul></ul><ul><ul><li>Donors </li></ul></ul><ul><ul><li>Volunteers </li></ul></ul><ul><li>Other important groups to consider </li></ul><ul><ul><li>Media </li></ul></ul><ul><ul><li>Staff </li></ul></ul><ul><ul><li>Board Members </li></ul></ul><ul><ul><li>Government / Lobbying </li></ul></ul><ul><ul><li>Others? </li></ul></ul><ul><li>Each group needs individual attention in the marketing plan ! </li></ul>
    16. 17. Databases are one key to dealing with non-profit audiences <ul><li>Mailings </li></ul><ul><li>Calls </li></ul><ul><li>Events </li></ul><ul><li>Donors </li></ul><ul><li>Contacts </li></ul><ul><li>Track everything </li></ul><ul><li>Research </li></ul><ul><li>Market Development </li></ul>
    17. 18. Only 46% of non-profits have a strategic or business plan.
    18. 19. A Marketing Plan... <ul><li>Defines Marketing Costs </li></ul><ul><li>Shows Marketing Value </li></ul><ul><li>Defines Mission / Provides Focus </li></ul><ul><li>Written Game Plan </li></ul><ul><li>Evolving Document </li></ul>A Marketing Plan is On Paper…On Purpose
    19. 20. Elements of a Marketing Plan <ul><li>At a minimum... a Marketing Plan should include the following: </li></ul><ul><ul><li>Who/where you are (BRAND) </li></ul></ul><ul><ul><li>Where you want to go </li></ul></ul><ul><ul><li>How you’re going to get there </li></ul></ul><ul><ul><li>Budget </li></ul></ul><ul><ul><li>Summary of Strategy </li></ul></ul><ul><ul><li>Timetable of Actions </li></ul></ul><ul><li>Less is (sometimes) more </li></ul>
    20. 21. BRAND Any organization’s most valuable asset
    21. 22. Case Study: Brand Kentucky <ul><li>State was spending $2.5 million annually for separate & overlapping ad agencies and marketing campaigns </li></ul><ul><li>Governor Ernie Fletcher proposed an unified state brand </li></ul><ul><li>Goal: Provide an unified message for tourism & economic development </li></ul><ul><li>Citizens voted for logo at welcome centers & online </li></ul>
    22. 23. Case Study: Brand Kentucky = As viewed from the other 49 states, Brands are created by the consumer, not the marketer! Logo ≠ Brand
    23. 24. Successful Non-profit Brands have a face
    24. 25. Non-profit brand strategies <ul><li>You’re selling abstract ideas </li></ul><ul><ul><li>Define what is being provided </li></ul></ul><ul><li>Develop a look </li></ul><ul><li>Develop a story </li></ul><ul><li>Maintain the core message </li></ul>
    25. 27. Public Relations <ul><li>What is PR? </li></ul><ul><ul><li>Coverage of your business in the media </li></ul></ul><ul><ul><li>NOT public perception (that’s your brand) </li></ul></ul><ul><li>A PR program is PART of your marketing strategy....... not the other way around </li></ul><ul><li>Best Part - FREE / low cost </li></ul><ul><li>Worst Part - Lots of time and work </li></ul><ul><li>Extremely effective & credible </li></ul><ul><li>OVERALL GOALS of a PR Program: </li></ul><ul><ul><li>Establish credibility and become a “source” </li></ul></ul><ul><ul><li>Media Coverage </li></ul></ul>
    26. 28. PR Hints and Tips <ul><li>Press Releases </li></ul><ul><ul><li>Is it News or an Ad? </li></ul></ul><ul><li>Media Opportunities </li></ul><ul><ul><li>Media List / Contacts </li></ul></ul><ul><ul><li>Media / Press Kits </li></ul></ul><ul><li>Persistence with media is the key </li></ul><ul><li>MUST be ongoing and active </li></ul>
    27. 29. Alliances strengthen non-profit marketing <ul><li>Businesses </li></ul><ul><li>Government </li></ul><ul><li>Media </li></ul><ul><li>Schools </li></ul><ul><li>Other non-profits </li></ul><ul><li>Whenever 1+1=3 </li></ul>
    28. 30. Working with a Small (no) Budget <ul><li>More than half of all non-profits have budgets below $200,000 per year </li></ul><ul><li>Solutions </li></ul><ul><ul><li>Make every dollar work (marketing plan) </li></ul></ul><ul><ul><li>Media Relations and PR </li></ul></ul><ul><ul><li>Becoming a pro-bono marketing client </li></ul></ul><ul><ul><li>Guerilla Marketing </li></ul></ul>
    29. 31. Only 27% of all non-profits have a web presence Source: Stanford SPEN
    30. 32. Online Giving keeps growing <ul><li>2001 – 9/11 </li></ul><ul><ul><li>20% of giving was online </li></ul></ul><ul><li>2004 – Tsunami </li></ul><ul><ul><li>33% of giving was online </li></ul></ul><ul><li>2005 – Hurricane Katrina </li></ul><ul><ul><li>50% of giving was online </li></ul></ul><ul><li>Organizations who raise money online report that 10-15% of their donations are coming in on the Internet. </li></ul>Source: Chronicle of Philanthropy
    31. 33. E-Marketing <ul><li>Online Spending </li></ul><ul><ul><li>Budget for Website </li></ul></ul><ul><ul><li>Banner Ads </li></ul></ul><ul><ul><li>Contextual Search Advertising </li></ul></ul><ul><ul><li>SEO – Search Engine Optimization </li></ul></ul><ul><li>E-mail Marketing </li></ul><ul><ul><li>Phishing / Spam </li></ul></ul><ul><ul><li>Permission-Based </li></ul></ul><ul><li>Blogs / Social Media </li></ul>
    32. 34. What do you mean by Social Media? <ul><li>Blogs </li></ul><ul><li>Microblogs </li></ul><ul><ul><li>Twitter </li></ul></ul><ul><li>Video </li></ul><ul><ul><li>Google & YouTube </li></ul></ul><ul><ul><li>Revver </li></ul></ul><ul><li>Social Networks </li></ul><ul><ul><li>MySpace </li></ul></ul><ul><ul><li>Facebook </li></ul></ul><ul><li>Wikis </li></ul><ul><li>Photo </li></ul><ul><ul><li>Flickr </li></ul></ul><ul><ul><li>Photobucket </li></ul></ul><ul><li>Virtual reality </li></ul><ul><ul><li>Second Life </li></ul></ul><ul><li>Social / News Bookmarks </li></ul><ul><ul><li>Digg </li></ul></ul><ul><ul><li>Reddit </li></ul></ul><ul><ul><li> </li></ul></ul>Community / user generated content
    33. 35. Brand Strategy PR Efforts Advertising Corporate Messages Media & Press Gatekeepers Consumers & Public Word Of Mouth Traditional Marketing
    34. 36. Social Media Marketing Brand Strategy PR Efforts Advertising Corporate Messages Consumers & Public Word Of Mouth
    35. 37. Warhol Revisited <ul><li>“ In the future, </li></ul><ul><li>everyone will be famous for </li></ul><ul><li>15 minutes .” </li></ul><ul><li>With social media, </li></ul><ul><li>everyone is famous to </li></ul><ul><li>15 people. </li></ul>
    36. 38. Long Tail
    37. 39. Do NOT use Social Media as a press release machine
    38. 41. <ul><li>Kaimana </li></ul><ul><li>Shanti </li></ul><ul><li>Aurora </li></ul><ul><li>Humphrey </li></ul><ul><li>Mikaela </li></ul><ul><li>Kaimana </li></ul>
    39. 42. Mr. Splashy Pants
    40. 44. We’re not finished… <ul><li>Biggest opportunity for FAILURE is right after the marketing begins </li></ul><ul><li>Inform all your touchpoints </li></ul><ul><ul><li>Everyone who is associated with your organization </li></ul></ul><ul><li>Develop a tracking system </li></ul>
    41. 45. Tracking / Effectiveness &quot;I know that half my advertising works. I just don't know which half.&quot; John Wanamaker (1838- 1922) If you say the same thing... STOP ADVERTISING.
    42. 46. Final Takeaways <ul><li>Non-profit marketing is not evil </li></ul><ul><li>Craft marketing messages that appeal to the recipient </li></ul><ul><li>Develop a marketing plan </li></ul><ul><li>Cultivate your brand </li></ul><ul><li>Get online </li></ul><ul><li>The challenge is worth it </li></ul>
    43. 47. Selling Good Works Marketing a Non-Profit Organization Chris Houchens Blog & Website :: Email :: Slides available online: