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Loud & Clear - Successfully Marketing your Nonprofit

  1. Loud & Clear Successfully Marketing Your Nonprofit Nonprofit Marketing Fundamentals Deborah Spector Creative Solutions & Innovations | June 2012 | 404.325.7031
  2. “If you don’t know where you’re going it doesn’t matter which way you go!” Said the Cheshire Cat in Alice in Wonderland Creative Solutions & Innovations | | 404.325.7031
  3. Marketing Fundamentals Goals for today’s session: Understand the Role of Marketing in Nonprofit Organizations • Define what marketing is and how it fits into the organization • Learn why marketing-oriented Nonprofits typically outperform other companies Understand and Align the Components of the Marketing Mix Learn the components of marketing tactics and how they align with one another • Learn how to see your nonprofit offerings as a bundle of customer- desired benefits • Explore various pricing objectives and strategies • Compare and contrast various options for distribution or awareness building • Discover the strengths and weaknesses of various promotional methods Creative Solutions & Innovations | | 404.325.7031
  4. What is Nonprofit Marketing? “Marketing is so basic that it cannot be a separate function. It is the whole business seen from the point of view of its final results, that is, from the stakeholder’s point of view.” Marketing Guru Peter Drucker Creative Solutions & Innovations | | 404.325.7031
  5. Marketing consists of the strategies and tactics used to identify, create and maintain satisfying relationships with your donors, members, volunteers, clients and other stakeholders that result in value for both your organization and your stakeholders. Creative Solutions & Innovations | | 404.325.7031
  6. A Marketing Mindset Requires that your organization systematically study customer’s needs, wants, perceptions, preferences, and satisfaction – using surveys, focus groups and other means. Kotler & Andreasen, Strategic Marketing For NonProfit Organizations Creative Solutions & Innovations | | 404.325.7031
  7. Strategic Marketing I: Develop Your Goals II: Situation Analysis III: Market Analysis and Segmentation IV: Target Markets V: Develop Market Strategies for Target Markets VI: Programs and Services VII: Promotion and Outreach VIII: Implementation and Leadership IX: Evaluation Creative Solutions & Innovations | | 404.325.7031
  8. Develop your Goals Goals: What do you want to achieve? o Goals can be short, medium or long term. o Example: “Gain increased recognition and status for our organization” “Engage members of the community who care about children’s health to be financially and visibly supportive” Creative Solutions & Innovations | | 404.325.7031
  9. Communications Goal • Develop a communications goal to support organizational goal. To capitalize on <name of organization>’s existing band awareness and create additional awareness among target audiences in order to assist in raising additional funds and volunteers. *(Goal is result of research and consensus between nonprofit management, executive committee and consultant.) Creative Solutions & Innovations | | 404.325.7031
  10. Situation Analysis - Internal Starts with where your organization is right now. • Mission • Values • Skills • Culture • Systems • Strengths, Weaknesses in structure, technology, support services, etc. Creative Solutions & Innovations | | 404.325.7031
  11. Situation Analysis - External • Funding climate • Comparative analysis of other organizations – your competition, and • An understanding of your organization’s market position relative to your competition. • Social, cultural, technological, ecological, economic, and political factors to effect your nonprofit. Creative Solutions & Innovations | | 404.325.7031
  12. Who Is Your Competition? Creative Solutions & Innovations | | 404.325.7031
  13. Evaluate The Competition • What services do they provide? • Where are they located relative to your locations? • To which segments of the market do they appeal? • What do stakeholders say about them? Creative Solutions & Innovations | | 404.325.7031
  14. Unique Service Features • Meet stakeholder needs better than other groups • Wide selection of services • Convenient Location • Easy to use • Transportation available • Funding or fees on sliding scale available Creative Solutions & Innovations | | 404.325.7031
  15. Competitive Advantage Statement Competitive Advantage Statement = Values& Beliefs + USP (Unique Service Proposition is the positioning that will make your organization different from your competition.) Creative Solutions & Innovations | | 404.325.7031
  16. Market Analysis & Segmentation Market is defined as a group of people who behave in similar ways relative to your organization’s products or services. Market is synonymous with audience, stakeholders, constituents, or clients. • Segmentation is the process of defining the largest potential market in a way that is most useful to an organization. Creative Solutions & Innovations | | 404.325.7031
  17. Market Segmentation • Your nonprofit provides services to different “market segments” Market segmentation variables:  Geographic – place people call home  Demographic – age, income, gender, ethnicity, marital status, race, religion, social class  Psychographic – lifestyle, interests, attitude  Behavioral – way people use, benefit, obtain and are loyal to your services Creative Solutions & Innovations | | 404.325.7031
  18. Address Needs in Each Segment Rank needs in each segment: • Range of services • Quality • Fees • Location • Transportation • Facilities Creative Solutions & Innovations | | 404.325.7031
  19. How Can you identify needs? 1. Identify a number of your clients and ask them if you can come interview them for 15 -20 minutes. Another option is to do a survey or focus group lead by someone other than staff from your nonprofit. 2. Ask what each sees as the five most important things they look for at your nonprofit. 3. Once identified, ask them to rank them from 10 – 1. 4. Then ask them how well you have done in meeting their needs. Ask them to measure these from 10 to 1. 5. After interviewing as many as you can, create a master list the customer needs with the two measures after each. Creative Solutions & Innovations | | 404.325.7031
  20. Target Markets Creative Solutions & Innovations | | 404.325.7031
  21. Your Stakeholders Someone who has an interest or concern in your organization or its work. Stakeholders can include donors, employees, board members, clients, volunteers, and the public. Creative Solutions & Innovations | | 404.325.7031
  22. Who Are Your Stakeholders? • Donors & Prospective donors • Sponsors • Volunteers • Educators • Advocates • Administration & staff • Board & advisory board members • Government Agencies • Clients/patients • Bloggers & Twitter Influencers • Who else? Creative Solutions & Innovations | | 404.325.7031
  23. Number 1 Rule in Nonprofit Marketing Really knowing your target audience “Getting to know your supporters, volunteers, clients and other participants in your mission is easy, if you build that listening and learning into your everyday work.” • Be curious, all the time • Formalize that curiosity • Convene Informal Focus Groups • Conduct an Online Survey Kivi Leroux Miller Creative Solutions & Innovations | | 404.325.7031
  24. Marketing Strategies o Market strategies are the comprehensive approach an organization takes to engage its target markets. They must be action oriented. o Strategies include:  how the organization designs and delivers programs and services;  how it positions itself on issues;  how it designs campaigns;  where it locates or places its programs and information;  how it prices or values its services; how it executes its communication, public relations, and outreach efforts. Creative Solutions & Innovations | | 404.325.7031
  25. Competitive Positioning Sets your organization apart from your competitors and helps ensure a lasting, defensible place in the marketplace. Identifies your services & helps ensure that your target audiences perceive your organization & offerings distinctly from your competitors. Helps identify your competitive advantage that differentiates you from other providers. Creative Solutions & Innovations | | 404.325.7031
  26. What is a positioning statement? A positioning statement is a tight, focused description of the core target audience to whom a brand, is directed, and it provides a compelling picture of how the nonprofit wants its targeted audiences to view them. A well-constructed positioning statement brings focus and clarity to the development of a marketing strategy and tactics. Brandeo Creative Solutions & Innovations | | 404.325.7031
  27. Programs & Services To reach and engage your target market, your nonprofit organization may need to:  redesign or develop new programs. An organization’s programs  Programs must support your mission  Show a congruence between activities and messages and alignment with their own values and needs. Creative Solutions & Innovations | | 404.325.7031
  28. Marketing Mix • Product/Service - What exactly are you providing to people? • Place - How and where will you deliver it to them? • Price - At what “price” will you provide it? How will you get the funds to cover your expenses? • Promotion - How will you get stakeholders to use your services? Creative Solutions & Innovations | | 404.325.7031
  29. Product (Services) • Define your services, e.g. what you offer • Determine your target market • Build images that speak to value and consistency of message based on your mission. Creative Solutions & Innovations | | 404.325.7031
  30. Identify Unique Service Features Our services: • Meet our stakeholders needs • Offer a wide-range of options • Are conveniently located • Easy to use • Have no cost and/or sliding cost Creative Solutions & Innovations | | 404.325.7031
  31. Place How much does place effect your stakeholders? • Do you have a centralized location? Multiple locations to meet needs? • Are your locations convenient? • Do you have distribution channels for products? Creative Solutions & Innovations | | 404.325.7031
  32. Price While there is no true ‘price’ for nonprofit services you need to consider the expenses involved in running the organization so you can secure funds to cover them. Expenses – • Fixed – whether anyone uses the service or not • Variable – varies with the activity • Price ceiling – maximum ‘price’ a stakeholder will pay for your services. • Price floor – lowest ‘price’ you can provide your services & still survive. MSD Resources Creative Solutions & Innovations | | 404.325.7031
  33. Promotion & Outreach Promotion refers to all communications, public relations, and outreach efforts. They  engage, and develop relationships with an organization’s target market.  Promote meaningful engagements. Creative Solutions & Innovations | | 404.325.7031
  34. Main Vehicles • Website • Newsletters • White papers • Email blasts • Yahoo Listserve Groups • Professional Conferences • YouTube Videos • Viral/marketing [Word of Mouth] • Social Media, e.g., Facebook, LinkedIn, Twitter • Brochures/booklets • Media & blog outreach • Search engines • Advertising • Events Creative Solutions & Innovations | | 404.325.7031
  35. Creative Solutions & Innovations October 16, 2008 | | 404.325.7031
  36. WOM Communications • While other marketing channels slow, WOM skyrockets. • Great way to involve leadership and other volunteers in your marketing efforts. • Twitter & FaceBook support WOM efforts. • Invitations are key to WOM. • Integrate personalized email & ‘hard copy’ invitations. Creative Solutions & Innovations | | 404.325.7031
  37. Mailings 411 • Mailings - invitations, announcements, “Save the Date” Cards – are still a vital part of your arsenal to reach your goals. – Give them something tangible to hold onto – Ask for a reply by mail, adds commitment on their part – Preview the event, program, cause, to build excitement and interest • Add print and mail to your budget, it more than pays for itself, especially at Nonprofit rates! Erna Schneiderman Morningside Marketing Group, Inc. 404-840-6663 Creative Solutions & Innovations | | 404.325.7031
  38. Experiential Marketing “Research shows that face-to-face events have a greater return on investment than most other forms of advertising or public relations.” Mike Clearly, Abcom Creative Solutions & Innovations | | 404.325.7031
  39. Experiential Marketing & Sponsors North American businesses spend billions sponsoring events. These included charity galas, athletic contests, concert series, and the like -- according to IEG Sponsorship Report. Creative Solutions & Innovations | | 404.325.7031
  40. Implementation & Leadership A strategic marketing plan is meaningless unless it is implemented.  Implementation includes buy-in from staff and leadership.  Evaluation is important to gauge if the implementation is on target.  Identify your leadership to support and promote the implementation of your plan. Creative Solutions & Innovations | | 404.325.7031
  41. Evaluation • Measure outcomes  What is working best/not working at all  Have we met our objectives  Have we engaged our leadership, volunteers and members Creative Solutions & Innovations | | 404.325.7031
  42. Major Principles for Guiding Your Nonprofit Through a Marketing Lense 1. Always market your mission, not your current services. The ability to adjust its services to suit client need is key to ensuring the organization’s survival and its financial support. 2. Carefully define whom your mission serves. You need to meet the needs of our corps stakeholders. 3. Measure your constituents’ needs. Research, research, research to ensure your programs & services resonate with your target audiences. 4. Design programs that meet needs. 5. Evaluate the success of programs & their relationship to your mission. 6. Communicate regularly & consistently. Creative Solutions & Innovations | | 404.325.7031
  43. Major Principles for Guiding Your Nonprofit Through a Marketing Lense, page 2 7. Craft your messages to reflect how our mission affects your different audiences. 8. Communicate in terns of your ROI even when it is not in monetary terms; quantify your economic impact. 9. Celebrate your successes. Show how your ‘market diversification’ creates the funding to provide your services. 10. Know your organizational elevator speech so you can articulate your vision & Competitive Advantage Statement. 11. Keep a “face” on your marketing initiatives 12. Evaluate often & be prepared to refocus your efforts. Creative Solutions & Innovations | | 404.325.7031
  44. The Marketing Plan
  45. GCN Marketing Plan Outline Christopher Lemley, GSU, J Mack Robinson College of Business Marketing Department A Marketing Plan is a written strategy for generating revenue for an organization. It is a reflection of how a company views itself; its position in the market place; and how it intends to gain and retain customers and a resulting revenue stream. A successfully implemented Marketing Plan is backed by carefully collected market-, customer- and Competitor information; general marketing conditions; and it is built upon how a company thinks of its own strength and weaknesses. Creative Solutions & Innovations | | 404.325.7031
  46. Why Prepare a Marketing Plan? The Plan enables you to recognize and take action on any trends and consumer preferences that other companies may have overlooked, and to develop and expand your own select group of customers now and into the future. The Plan also shows to others that you have carefully considered how to produce a product or service that is market-facing, unique and acceptable to current and future customers- improving your chances of stable-to increasing sales and margins. Creative Solutions & Innovations | | 404.325.7031
  47. Contents of a Marketing Plan • Title Page  Include the name of your organization, period of time that the contents of the plan covers, and completion date.  Use a clean and professional format with examples of your organization’s logo and, if different, logos of your programs and services. • Table of Contents  List all the contents of the marketing plan in the order they appear, citing relevant page numbers.  List tables, graphs and diagrams on a separate page. List the appendices that will be included at the end of the document. Creative Solutions & Innovations | | 404.325.7031
  48. • Executive Summary  Two-Three page section forms an overview of the document. Highlight areas of the plan that are particularly crucial to the reader, and provide an indication of how this plan will help your organization attain overall success in the future. • Historical Background  Give the reader an historical overview of the formation of your nonprofit, how and/or by whom the organization was founded, and the scope of your organization’s activities and opportunities for expansion. *Indicate how the future success of the organization can be attributed to the strategies found in the Marketing Plan. • Situation Analysis  Market Analysis  Environmental Analysis Creative Solutions & Innovations | | 404.325.7031
  49. • Profile of your ‘clients’ and past ‘clients’ o Provide information from your thorough examination of customers present and past, focusing on their characteristics:  Demographically  Psychographically  Behaviorally  And from a usage of your services point of view Creative Solutions & Innovations | | 404.325.7031
  50. Marketing Goals and Objectives Start with the positioning statement of the nonprofit.  Identification of Target Markets  Product/Service Objectives  Revenue/Sales Objectives  Margin Objectives  Pricing Objectives  Logistics (Channel) Objectives  Marketing Communications and Promotion Objectives Creative Solutions & Innovations | | 404.325.7031
  51. • Strategic Marketing Focus  Product or Service  Location  Promotion  Price • Financial Information  Show predicted level of sales – with and without strategies outlined in the marketing plan.  Forecast the “break even point” for each for 5 years • Tables, Graphs, Diagrams and Picture Attachments Creative Solutions & Innovations | | 404.325.7031
  52. Loud & Clear Successfully Marketing Your Nonprofit Nonprofit Marketing Fundamentals Deborah Spector (888) 924-4648 Creative Solutions & Innovations | June 2012 | 404.325.7031

Editor's Notes

  1. In other words, nonprofit marketing effects the whole enterprise while keeping focused on the stakeholder’s.
  2. What really differentiates marketing is the focus on the customer.
  3. This means success will come to that organization that best determines the perceptions, needs and wants of target markets and satisfies them through the design, communication, pricing and delivery of appropriate and competitively viable offerings.
  4. I suggest goals should be long term. Don’t see marketing as a quick fix. Well stated goals will lead to positive marketing initiatives. Communications goal might be “Build awareness, increase understanding and motivate
  5. You should always develop communications goals to support your organizational goals. Why? Communications provides the means to get the message out to your target audiences to promote and support and ensure success at implementing your customer-motivated benefits.
  6. An important and often overlooked step in creating a strategic marketing plan is evaluating internal, market, and external conditions. Knowing and understanding the environment in which a nonprofit is operating is critical to its success. Internal conditions include such things as values, skills, staff, systems, and structures. Market conditions include the funding climate, a comparative analysis of other organizations, and the organizational niche or distinctive competence. Further, an organization must understand the external conditions in which it is working. External factors include social, cultural, technological, ecological, economic, and political factors.
  7. A CAS should be supported by resources &amp; skills/capabilities. It should be employed in a market that contains market segments that will value the advantage. It should face up to your competitors. And, it needs to be supported by your organization’s strengths &amp; qualities.
  8. Market segmentation is done by dividing the whole into definable parts to identify, name, and describe these pieces in a way that makes sense for an organization. Typically, the market is segmented by demographics— by age, gender, and education. It is also useful to segment the market by psychographics—values, attitudes, and lifestyles. One tool for thinking about the market in a more useful way is to ask, “How does the potential audience relate to x?” with “x” being the organization’s cause or issue.
  9. Market Segmentation identifies and drills down on whom you provide services.
  10. Example, We held town hall meetings to access and rank the services for a senior services agency that supported centers and meals on wheels in 6 locations. We invited agency partners, e.g., county government &amp; funders. We learned a lot about needs being met &amp; not met. Varied depending on the demographics of each area as well as the behavioral, cultural and psychosocial differences of the clients.
  11. Be sure and get a mix of clients. If you only go to the best clients your results will be skewed.
  12. Who are some of the stakeholders or publics for your nonprofit? All audiences are stakeholders (or presumptive stakeholders), but not all stakeholders are audiences. For example, if a charity commissions a public relations agency to create an advertising campaign to raise money to find a cure for a disease, the nonprofit and the people with the disease are stakeholders, but the audience is anyone who is likely to donate money.
  13. A positioning statement is a tight, focused description of the core target audience to whom a brand, is directed, and it provides a compelling picture of how the nonprofit wants its targeted audiences to view them . A well-constructed positioning statement brings focus and clarity to the development of a marketing strategy and tactics.
  14. Programs are your most profound way to distinguish yourself in the market. Nonprofit audiences want and need substance behind a promise or message. They look closely at what an organization is doing to determine
  15. Also known as the Four P’s. Although marketing is many things an impacts all aspects of a nonprofit, it can usually be broken down into the 4 P’s.
  16. A service is an intangible product involving a deed, performance, or an effort that cannot be physically possessed. Dominant component is intangible. Major differences between goods and services are: Intangibility Inventory--over/under booking restaurant capacity Inseparability--of production and consumption Inconsistency/Consistency