The document discusses marketing planning for charities. It begins with defining marketing and explaining its evolution and role in not-for-profit organizations. It then covers marketing planning processes like conducting a situation analysis, setting objectives, developing a strategy and tactics, and implementing an action plan. The rest of the document provides details on various marketing planning frameworks and concepts that can be applied for charities, including segmentation, targeting, the marketing mix, product lifecycles, and performance tracking.

1. • Marketing Planning for Charities
Sue Garland Worthington
• Worshipful Company of Marketors
7th March 2013
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2. 2

3. 3

4. Session Objectives
By the end of this session you should:
• Understand the function of marketing and its
role in not-for-profit organisations
• Know more about the Marketing Planning
process, to improve the effectiveness and
efficiency of your organisation and its resources
• Understand more about managing relationships
with clients, donors, sponsors and other key
stakeholders
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5. Definition and Development
of Marketing – A Whistle-stop Tour
How would YOU define marketing…?
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6. CIM Definition
“The management process responsible for
anticipating, identifying and satisfying customer
requirements profitably”
Chartered Institute of Marketing
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7. Meet Professor Kotler…
'satisfying needs and wants through an
exchange process'
Philip Kotler
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8. Our Definition at the Marketors‟ Company
Charity Marketing is the management
process of anticipating, identifying and
satisfying clients’ and donors’ wants and
needs, with an exchange of value that
mutually satisfies all parties.
Peter Rees
Marketing Planning - A Guide for Charities and
Not-for-profit Organisations 2012
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9. Marketing Evolution
Production era – Customised then Mass production
(following industrialisation).
„Any colour you like…as long as it‟s black!‟
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10. Marketing Evolution
Sales era when competitive forces, demand and the
desire for high sales volume led businesses to emphasise
advertising, selling and the salesperson in its business
strategy.
„Who Shouts - Wins!‟
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11. Marketing Evolution
Marketing era - Period in which advertising and aggressive
selling were no longer seen to suffice if customers either
did not desire a product or preferred a rival brand, and in
which customer needs were identified and satisfied
„From one market of a million – To a millions markets of one!‟
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12. Marketing Evolution
Customer Relationship Marketing era
Current period, in which the focus is not on the single
transaction - but on developing ongoing relationships
with customers.
„CRM‟ = „Lifetime Value‟
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13. Role of Marketing
Once you accept that Marketing is about
„… the management process of Satisfying,
Identifying and Satisfying Clients’ and Donors’
wants and needs etc….’
as we have previously seen, then it also follows that
Marketing encapsulates and covers pretty much
everything that a charity is „in business‟ to do.
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14. Marketing Orientation
A holistic approach
• Puts client and donor (C&D) wants and needs first
• A focus on value exchange
• Adding things that add value to and are valued by the
C&D
• A focus on delighting both groups
• Everyone in the organisation understands their role in
serving C&D
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15. Marketing Planning
There is no right way to write a Marketing Plan!
All Marketing Plans address six basic questions
There is an easy way to remember these
SOSTAC©
A model created by PR Smith
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16. SOSTAC© - A Proven Planning Approach
What is it?
• A structure for market analysis & planning
• A set of processes to accelerate business growth
• A tool for optimising business resources
• Highly scalable – fitting organisations and teams
of all sizes
• A basis upon which you can control your
business
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17. SOSTAC©
Situation – Where are we today?
Objectives – Where are we going?
Strategy – How will we get there?
Tactics – Which way is best?
Actions – Who does what, when?
Control – How do we ensure safe arrival?
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18. Situation
DON‟T BELIEVE YOUR OWN
PROPAGANDA!
Meet 3 Greeks….
Macro Meso Micro
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19. Macro Factors – Affect Everyone
Socio-Cultural
Technological
Economic
Environmental
Political
Legal
Ethical
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20. Meso – Affect the (your) Charity Sector
Suppliers, Donors „Customers‟
Volunteers & Sponsors Donors & Sponsors
Threat of New
Entrants
Money
Clients
Resources Competitive
Rivalry
„Time‟ Donors
Substitute
Offerings
Porter’s 5 Forces Model
Adapted by P. Rees
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21. Micro – Affecting your Charity - SWOT
Convert
Strengths Weaknesses
Match Internal
External
Convert
Opportunities Threats
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22. Micro – Affecting your Organisation
• Clients & Donors – Size and needs
• Competition – Strategy and tactics
• Charity – Competence, Knowledge and Skills
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23. ± 10%
Objectives
Objectives should follow from
the Situation analysis!
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24. SMART Objectives
• Specific – stated in precise terms for everything
important
• Measurable – numerical and quantifiable
• Achievable – if it cannot be achieved there is little
point in setting it
• Realistic – Needs to make sense within the context
of the charity
• Timely – there should be a point defined by when
each objective should be achieved
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25. Filling the „Gap‟
£
Charity's Target
#
etc.
? GAP
Existing C‟s&D‟s & Existing Service Offerings
Q1 Q2 Q3 Q4 t
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26. Strategy
Four Important Questions - 1
1. How is our Charity better and different from its
„competition‟, in ways that are valued by and add value
to our Clients‟ and Donors, that can‟t easily be copied?
This is THE most important question
Marketers have to answer!
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27. Four Important Questions - 2
2. What „business‟ are we in?
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28. Four Important Questions - 3
3. What resources do we have and do we need to achieve
the answer to Question1?
• Physical resources,
• Assets,
• Money,
• Knowledge and expertise
This also follows from our Objectives – what do we need
to achieve these?
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29. Four Important Questions - 4
4. Which Product/Service/Offering – Markets
will we be in? Products (Services & Offerings)
Existing New
Market Product
Existing
penetration development
(Client &Donor) Markets
Market
Diversification
New
development
The Ansoff
Matrix
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30. Strategy tells you how to „Fill the Gap‟
# #
# #
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31. Strategy – Cruse Richmond
Bereavement
Bereavement Counselling
Counselling
Other Faiths
Bereavement
Bereavement
Counselling
Counselling
Training
Other Areas
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32. Segmentation – Finding Customers and
Donors
Segmentation is the process of identifying
„GROUPS‟ with common wants and needs &
common values
• Geo-demographic
• Socio-economic
• Needs based
Then create an „Offer‟ for each group. The
definition of the offer is described in Tactics
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33. Tactics - which way is best ….?
SOSTAC© flows !
Situation – Where are we today?
Objectives – Where are we going?
Strategy – How will we get there?
Tactics – Which way is best?
Tactics define the Offerings that we create to satisfy the
wants and needs of our Target Segments and follow our
Strategy to achieve our Objectives
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34. Meet the Marketing Mix – the 4 P‟s
A handy concept to summarise and define our „Offerings‟.
Developed by Professor Philip Kotler for physical B2C
commercial markets and originally known as the 4P‟s
• Product
• Price
• Promotion
• Place
It was later enhanced to recognise the growing importance
of Services in more and more markets and so 3 more P‟s
were added…….
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35. The Marketing Mix – the 7P‟s
• Product • People
• Price • Process
• Promotion • Physical Evidence
• Place
BUT – this is not an ideal model for charities!
• In many cases charities offer a Service, not a Product
• The Price to the client is often zero
• The Price is a more relevant concept to the Donor
• Charities are constrained in Purpose by their Articles and
so are more „limited‟ in what they can do, than a
commercial organisation
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36. Meet the Charity Marketing Mix - the 8 P‟s of
the Charity Marketing Mix
• Purpose
• Product-Service Offering (PSO)
• Price Proposition (PP)
• Promotion
• Place
• People
• Process
• Physical Evidence
Peter Rees
Marketing Planning - A Guide for Charities and
Not-for-profit Organisations 2012
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37. Applying the Marketing Mix – 8P‟s
The (8P) Marketing Mix defines:
• The totality of the „Offering‟ that you
develop to satisfy the wants and needs
of Clients and Donors
• In each Product–Market of the
Ansoff Matrix
• For each Target Segment that you
choose to address
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38. Targeting (Segments)….. Option 1
The
whole • The whole market (of
Market Clients or of Donors)
wants wants and values the
same thing.
and
values • There is therefore
1 Marketing Mix for all
the Clients – or all Donors.
same
thing
This is called Undifferentiated Targeting
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39. Targeting (Segments)….. Option 2
Segment 1
• There are several
segments
Segment 2 • You will serve them all
• There is therefore
Segment 3 a different Marketing
Mix for each segment
of Clients or Donors.
Segment 4
This is called Differentiated Targeting
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40. Targeting (Segments)….. Option 3
Segment 1
• There are several
segments
Segment 2 • You will only serve
some of them
Segment 3 • There is a different
Marketing Mix for each
chosen segment of
Clients or Donors.
Segment 4
This is called Concentrated Targeting
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41. Example – Donors and Sponsors
„Public‟ High Net Worth
Alumni
Wills etc
Corporate Packs
Bronze,Silver,Gold
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42. Back to the Ansoff Matrix
Objectives
Strategy
# #
Tactics
# #
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43. 8P‟s in Detail
Purpose:
What you can and can‟t do. How you can do it. How you are governed.
Whom you support. Your „Mission‟. Mem & Arts of Association.
Product Service Offering (PSO):
What you actually provide? Physical, service based, emotional,
reputational, satisfaction, ideological. This is the most important „P‟ to
deliver value and satisfy the wants and needs of Clients and Donors
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44. 8P‟s in Detail
Price Proposition:
Free does not always mean free to Clients! What does the Sponsor,
Donor of Volunteer get for their „money‟?
Promotion:
MESSAGE – What do you wish to say
MARKET – Whom do you wish to say it to?
METHOD – How will you deliver it?
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45. 8P‟s in Detail
Place:
Where is your Product Service Offering delivered and / or where can it
be booked or bought? Consider Clients, Donors and Volunteers.
People:
Primarily to do with Product Service Offering delivery. Attracting,
developing and retaining: Staff, Volunteers, Supporters, Donors,
Sponsors, Resource providers.
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46. 8P‟s in Detail
Process:
Is Product Service Offering delivery and all interactions with
stakeholders delivered to a consistently high quality – that always meets
and exceeds expectations?
Physical Evidence:
Product Service Offerings are often intangible. How will stakeholders
see physical manifestations that support your brand. For example:
premises, mailings, literature, staff, logo, website, advertising, collectors
etc.
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47. It is interesting to note…..
Advertising
PR
S Purpose Speeches
Lobbying
O PSO Conferences
PP Message email
S Promotion Market
website
Direct Mail
T Place Method Tele-calls
Collectors
A People Literature
Letter
Process Report
C Physical Evidence Social Media
Facebook
Twitter
YouTube
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48. Meet the „Positioning Map‟
Food Retail
High
An example – Comparing Price
competitors
Low High
Value
Value
Low
Price
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49. Lucozade
Everyday
An example – Re-positioning buy
Invalid Athlete
„Treat‟
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50. 8P‟s Position your Brand
• Decide which axes you will select for your positioning
map – There is no „right answer‟. Mix and Match!
• Make sure that your 8P‟s are self consistent and support
your chosen position
• Use it to define your different Marketing Mixes (esp. for
Donors and Sponsors)
• Compare yourself to your competitors
• Use it as a tool to help you re-position (if you wish to)
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51. Corporate Sponsors & Donors
Consider the 8P’s in Customised
each case
Gold Sponsorship
Pack
Low High
Cost Cost
Silver Sponsorship
Pack
Bronze Sponsorship
Pack Standardised
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52. Managing your Brand – 8P‟s
My firm belief is that a brand is a cluster of
functional and emotional values that enables an
organisation to make a promise about a unique
and welcomed stakeholder experience.
Ultimately brand management is promise
management.
Prof. Leslie de Chernatony
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53. Meet the Product Life Cycle (PLC)
Introduction Growth Maturity Decline
stage stage stage stage
Revenue
Sector
Sales
Sector
0
Profits
Time
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54. PLC Stages
Stage of the Characteristics
PLC
(Development) (High R&D costs; Test marketing and no sales yet)
Introduction The product launched onto the market, will lose
money, costs related in development and launch
not yet recovered, and sales likely to be low at this
stage
Growth Where product is accepted by the consumers,
sales rise and profits – competition intensifies
Maturity Sales level off; more competitors enter the market,
profits are high, ROI is good, promotion required
Decline More competitors and sales fall off; still profitable,
revamp of product to extend life
(Obsolescence) (Withdrawn or downgraded; possible re launch?
Little marketing)
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55. Actions
General Marketing Planning Timetable
• Annual Process
• Starts at -3 months from financial year start
• Hold a workshop to produce Version1
• Month -2 review Version1 and agree amendments Version2
• Month -1 circulate Version2 to all relevant parties
• Plan resources
• Setup review process
• Manage with appropriate periodic reviews and reports
• Take corrctive action see Control section following
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56. General Marketing Planning Approach
• It‟s Project Management
• Who does what and when?
• Circulate minutes of meetings!
• Hold people accountable! (Even volunteers)
• Create a timetable or roadmap: Communications, PSO
development, Donations, Client Engagements, Volunteer
recruitment, Key milestones etc…
• Put a measurement system in place for all your Objectives
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57. Control
The only thing you can be certain of is..
Uncertainty!
Charity's Target
#
• You will never be on
exactly on track
• You need to exceed
the year end target
• The “P‟s” are the
mechanism to get
back on track
Q1 Q2 Q3 Q4 t
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58. Control – Ensuring safe arrival
• Put a measurement system in place for all your Objectives
• Act quickly to correct under–performance – use the P‟s
• Never change Objectives mid year! Accept success
(or failure)
• You must have Trustee support (and ideally leadership)
– in order for Marketing Planning to work successfully!
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59. Survival of the Fittest …....
„It is not the strongest of the species that survive,
nor the most intelligent,
but the one most responsive to change.‟
Charles Darwin
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60. Thank you!
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