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Marketing planning
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.
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Marketing planning
- 1. • Marketing Planningfor Charities Sue Garland Worthington • Worshipful Company of Marketors 7th March 2013 1
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- 4. Session Objectives By theend 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 4
- 5. Definition and Development ofMarketing – A Whistle-stop Tour How would YOU define marketing…? 5
- 6. CIM Definition “The management process responsible for anticipating, identifying and satisfying customer requirements profitably” Chartered Institute of Marketing 6
- 7. Meet Professor Kotler… 'satisfying needs and wants through an exchange process' Philip Kotler 7
- 8. Our Definition atthe 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 8
- 9. Marketing Evolution Production era– Customised then Mass production (following industrialisation). „Any colour you like…as long as it‟s black!‟ 9
- 10. Marketing Evolution Sales erawhen 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!‟ 10
- 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!‟ 11
- 12. Marketing Evolution Customer RelationshipMarketing era Current period, in which the focus is not on the single transaction - but on developing ongoing relationships with customers. „CRM‟ = „Lifetime Value‟ 12
- 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. 13
- 14. Marketing Orientation A holisticapproach • 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 14
- 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 15
- 16. SOSTAC© - AProven 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 16
- 17. SOSTAC© Situation – Whereare 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? 17
- 18. Situation DON‟TBELIEVE YOUR OWN PROPAGANDA! Meet 3 Greeks…. Macro Meso Micro 18
- 19. Macro Factors –Affect Everyone Socio-Cultural Technological Economic Environmental Political Legal Ethical 19
- 20. Meso – Affectthe (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 20
- 21. Micro – Affectingyour Charity - SWOT Convert Strengths Weaknesses Match Internal External Convert Opportunities Threats 21
- 22. Micro – Affectingyour Organisation • Clients & Donors – Size and needs • Competition – Strategy and tactics • Charity – Competence, Knowledge and Skills 22
- 23. ± 10% Objectives Objectives should follow from the Situation analysis! 23
- 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 24
- 25. Filling the „Gap‟ £ Charity's Target # etc. ? GAP Existing C‟s&D‟s & Existing Service Offerings Q1 Q2 Q3 Q4 t 25
- 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! 26
- 27. Four Important Questions- 2 2. What „business‟ are we in? 27
- 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? 28
- 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 29
- 30. Strategy tells youhow to „Fill the Gap‟ # # # # 30
- 31. Strategy – CruseRichmond Bereavement Bereavement Counselling Counselling Other Faiths Bereavement Bereavement Counselling Counselling Training Other Areas 31
- 32. Segmentation – FindingCustomers 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 32
- 33. Tactics - whichway 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 33
- 34. Meet the MarketingMix – 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……. 34
- 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 35
- 36. Meet the CharityMarketing 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 36
- 37. Applying the MarketingMix – 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 37
- 38. Targeting (Segments)….. Option1 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 38
- 39. Targeting (Segments)….. Option2 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 39
- 40. Targeting (Segments)….. Option3 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 40
- 41. Example – Donorsand Sponsors „Public‟ High Net Worth Alumni Wills etc Corporate Packs Bronze,Silver,Gold 41
- 42. Back to theAnsoff Matrix Objectives Strategy # # Tactics # # 42
- 43. 8P‟s in Detail Purpose: Whatyou 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 43
- 44. 8P‟s in Detail PriceProposition: 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? 44
- 45. 8P‟s in Detail Place: Whereis 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. 45
- 46. 8P‟s in Detail Process: IsProduct 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. 46
- 47. It is interestingto 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 47
- 48. Meet the „PositioningMap‟ Food Retail High An example – Comparing Price competitors Low High Value Value Low Price 48
- 49. Lucozade Everyday An example – Re-positioning buy Invalid Athlete „Treat‟ 49
- 50. 8P‟s Position yourBrand • 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) 50
- 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 51
- 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 52
- 53. Meet the ProductLife Cycle (PLC) Introduction Growth Maturity Decline stage stage stage stage Revenue Sector Sales Sector 0 Profits Time 53
- 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) 54
- 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 55
- 56. General Marketing PlanningApproach • 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 56
- 57. Control The only thingyou 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 57
- 58. Control – Ensuringsafe 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! 58
- 59. Survival of theFittest ….... „It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.‟ Charles Darwin 59
- 60. Thank you! 60