1) The document discusses marketing strategies for small organizations. It highlights the importance of market research, building relationships through engagement, and monitoring results to continually improve strategies. 2) Data shows that corporate social responsibility (CSR) and marketing are the top motivations for business investment in the arts. Most private investment in culture comes from individuals, trusts, and foundations. 3) Individual giving to arts and culture in the UK reached a record £382 million in 2007/08, driven mainly by low-level and mid-level donations. Direct asks were the top reason for a first-time donation, while ongoing engagement increased repeat donations.

1. Effective Marketing
for
Small Organisations
Noam Kostucki

2. Who is the blue man?

3. Effective Marketing

4. Your marketing knowledge

5. Your marketing knowledge
Genius or Genius

8. Market Research for
Museums
!

9. Compared to last year investment
Trusts & Foundations (£/millions) Individuals (£/millions) this year will:
Business (£/millions) 2008 total PI (£/millions)
Increase & Same (%) Increase (%) Same (%)
700
Marketing 81.4 20.3 61.0
600
CSR 83.3 16.7 66.7
500
Staff engagement 78.1 15.6 62.5
400
Charitable giving 88.9 33.3 55.6
300
Investment 100.0 0.0 100.0
Results
200
100
Though fewer respondents considered investment such as corporate art a
0
investing in the arts, they were less likely to decrease their investment this
Defining business support/sponsorship/investment for the arts by ranking according to
last year.
priorities, with 1 being the highest and 5 being the lowest.
Staff engagement, seems to be in the short term, the activity most likely
cuts this year compared to last.
Rank Item Rank Overall % Highest priority only %
According to Arts & Business, the total amount of Private Investment (PI) in culture has been
CSR 1 24.1 23.5
experiencing healthy growth since 1996. Business investment has undergone various
fluctuations throughout the years, which are 120 many cases attributed to the unpredictable38.6
Marketing in 2 24.0
nature of Capital Projects. 100
Staff engagement 3 22.7 20.9
(including onwardsand development)
In 2001 training A&B included individuals and trusts and foundations as key sources of
80
private investment to be traced for the cultural sector. These three categories are therefore
60
Charitable Giving calculation of total PI in the sector. 4
now used for the This shows18.8 increasing importance of
the 11.8
40 Incr
individual giving as the primary source of investment for arts organisations, which is itself
Investment e.g. corporate art 5 10.3 3.9 Sam
rising substantially. 20
Dec
0
These figures identify Corporate Social Responsibility (CSR) and Marketing as the key
motivations for business investment in the arts.

10. Individual Giving
(Arts & Culture)
In 2007/08 individual giving reached a record total of £382 million in the UK. This is a staggering £236 million
increase over just eight years.
Low-level giving is up to £100 but normally between £5-£10;
Mid-level giving is up to £1,000, but normally it is below £500;
Around 90% of donations received by cultural organisations are low- and mid-level donations (most frequently low-
level);
These donations tend to happen at the point of sale when attendees decide to round up a ticket price;
Donors who give several times throughout a year tend to give a larger overall financial donation than those who
give once – the message is to get people to keep giving small amounts regularly.
Reasons around local pride and a personal connection were the most commonly cited reasons for giving to a
particular organisation;
90% of donors come from the most committed art attendees – having attended the venue/organisation three or
more times in the past two years;
75% of donors were engaged with the organisation in some manner from members/visitors, a friend, patron, on a
mailing list, volunteers through to trustees. Low-level givers tended to be involved through things like volunteering,
while mid-level donors tended to be trustees and ambassadors;
So what motivated their first ever donation? The answer is simple – being asked! Direct approaches activated 40%
of first-ever donations
Many of the donors interviewed were part of the organisation’s Friends scheme, of them 47% said being Friend
encouraged them to give and 43% said it made no difference;

12. “To avoid the hassle of paperwork”
£50K+, 60-64,
“Just for cash flow reasons” £50K+, 75-79,
“Can make it an equivalent to a larger donation”
£15K-£20K, 35-39,
The majority of donors (nearly 70%) were low-level donors whilst another fifth (ca.
mid-level range. This means that the vast majority of donors (nearly 90%) are in th
“At that level once a year is easier, just one lump sum”
level giving ranges. Only a small percentage (10%) of respondents in the sample w
£10K-£15K, 65-69,
donors, which concurs with the findings of other charitable giving literature that a s
large donations accounts for a large proportion of the total given.8
“I think it seemed more practical and we thought that from the organisation’s point of view it was better to have
that lump sum and to get all the interest from it over the years”
Large donations are, of course,
Undisclosed, 75-79,
administration; but the notion of small organisations successfully accessing what is
highly sought after, pool of wealthy donors is perhaps unrealistic. In the arts econo
“I would forget if it was spread out; I’d rather just pay it. It gives you a chance to reconsider at the end of the year”
majority of organisations are micro and small-sized, operating at a local level to ser
£10-£15K, 55-59,
regional audiences and it could be argued that revenue from a well run small donat
could meet financial needs in a proportionate yet effective way.
For those who preferred to contribute more often, convenience was also a theme, but also allowing for unplanned
giving/requests and perhaps as a (conscious) tactic to inflate the total amount contributed.
“Money raised from the trips goes to the gallery” £25K-£30K, 30-34,
Low/mid-level donations, giving frequency and method
“Mainly because I was asked by [fundraiser] – [...] depending on what it is for I sometimes say yes [...] I am very
The survey of donors allowed for a more detailed look at donation values and how t
encouraged by what I see [at the theatre] so I am very happy to give”
giving methods and frequency. One issue in identifying individual giving patterns
Undisclosed, 75-79,
is that many arts organisations have a portfolio of fundraising products. Art donors
through diverse products and while these are often structured (for example, a mont
they can also be spontaneous or responsive, the result of a prompt or an ad hoc req

17. Engagement Spiral
1. Create interest
4. Reward 2. Build relations
3. Engage

19. Do

23. How do they feel?

24. How do they feel?

25. How do they feel?

26. 1. Do your research
2. Answer questions
3. Divide actions & set deadlines
4. Monitor results
5. Prepare a new plan

27. Noam Kostucki
Profile & Direct Email - www.about.me/noamkos
LinkedIn - www.bit.ly/noamkos
Twitter - @noamkos