Charity Marketing

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<ul><li><p>PROFESSOR IAN BRUCE CBE</p><p>CHARITYCOMMS CONFERENCE 2 DEC 2010</p><p>SUCCESSFUL CHARITY MARKETING</p></li><li><p>NP MARKETING - PENETRATION</p><p> Very good into F/R Very good into Comms Fair into Campaigning Poor into service delivery Why? Sleazy image</p></li><li><p>Marketing is meeting</p><p>customer needs within the</p><p>objectives of the </p><p>organisation</p></li><li><p>MARKETING- Philosophy, Framework </p><p>and Management Tools to Ensure a </p><p>Needs Led Approach to Voluntary </p><p>Organisation Work</p></li><li><p> Why is marketing approach relevant? Why is there resistance? Who are our customers? What are our products: goods, services, ideas</p><p> The marketing framework and tools: Segmentation Market research Other player analysis Positioning The voluntary organisation/charity marketing mix</p></li><li><p>WHY ARE CHARITIES NOT </p><p>AUTOMATICALLY CUSTOMER </p><p>ORIENTATED?</p><p> Often are monopolies Demand outstrips supply Beneficiaries too weak to make their voices heard haves can develop a patronising attitude towards have </p><p>nots professionalism and professional distance impact of belief action orientated, research a luxury consumer rights may be seen as alien to mission Concentration on too few beneficiaries, poor services to </p><p>the masses</p><p> amelioration can lead to acceptance of the status quo and that the beneficiaries predicament is their fault</p><p> Bruce, 2005, Charity Marketing, pp 104-111</p></li><li><p>VOLUNTARY ORGANISATION </p><p>CUSTOMERS</p><p>Bruce, p 30Beneficiaries</p><p>Clients</p><p>Students</p><p>Patients</p><p>Users</p><p>Purchasers</p><p>Local Public</p><p>Members</p><p>Audience</p><p>Patrons</p><p>Supporters</p><p>Donors</p><p>Volunteer Fund-raisers</p><p>Voluntary Serviceworkers</p><p>Advocates</p><p>Purchasers</p><p>Stakeholders</p><p>Staff</p><p>Representatives ofbeneficiaries</p><p>Committeemembers</p><p>Regulators</p><p>CharityCommission</p><p>Local Authorities(inspection)</p><p>Local community</p></li><li><p>VOLUNTARY ORGANISATION </p><p>CUSTOMERSBruce, p 30</p><p>Beneficiary Intermediaries Statutory Providers and Purchasers Commercial Providers Family Purchasers Voluntary org Providers Policy-makers Decision-makers </p><p>Supporter Intermediaries Church leaders Company Chief Executives School Head Teachers, etc </p><p>Stakeholder Intermediaries Staff managers Union Representatives Committee leaders </p><p>Regulator Intermediaries MPs Home Office Local councils </p></li><li><p>TYPE OF PRODUCTS</p><p> GOODS</p><p> SERVICES</p><p> IDEAS</p></li><li><p>A GOODS-SERVICE </p><p>CONTINUUM</p><p>Shostack (1977), p 77</p><p>Tangible dominant</p><p>Intangible </p><p>dominant</p><p>SaltSoft drinks</p><p>Detergents</p><p>AutomobilesCosmetics</p><p>Fast-food outlets</p><p>Fast-food outlets</p><p>Advertising agenciesAirlines</p><p>Investment </p><p>management ConsultingTeaching</p></li><li><p>EMPOWERMENT</p><p>Bruce, p80</p><p>Goods</p><p>IdeaService</p></li><li><p>RULES OF PRODUCT </p><p>COMPOSITIONBruce, p 82</p><p>1. All products have actual or latent </p><p>physical goods, service and ideas </p><p>components.</p><p>2. Successful marketing requires that </p><p>all three components are attended to </p><p>if the maximum number of customers </p><p>is to be recruited and retained</p></li><li><p>Product Customer</p><p>(goods, (beneficiaries,</p><p>services, supporters,</p><p>ideas). stakeholders,</p><p>regulators).</p></li><li><p>Segmentation criteria -</p><p> Demographic Geographics Behavioural Psychological/attitudinal</p></li><li><p>Defining segmentation.</p><p> Size Criteria Reachable Cost Competition</p></li><li><p>PositioningHarrison (1987), p 7, in Bruce p 57</p><p>The sum of those attributes normally ascribed to it by the consumers its standing, its quality, the type of people who use it, its strengths, its weaknesses, and any other unusual or memorable characteristics it may possess, its price and the value it represents.</p></li><li><p>Market Strategy choices</p><p> Market leader Market nicher Market challenger Market follower</p><p> Kotler and Andreasen (1991), p 206, in Bruce, p56</p></li><li><p>Other Player (Competitor) </p><p>Analysis</p><p> COMMERCIAL SECTOR</p><p> STATUTORY SECTOR</p><p> VOLUNTARY SECTOR</p><p> INFORMAL SECTOR</p></li><li><p>8 POINTS OF CHARITY MARKETING </p><p>MIX Bruce, p 64 PRODUCT (goods, services or ideas): consisting of quality features, name, </p><p>packaging, services, guarantees.</p><p> PRICE comprising price, discounts, allowances, credit.</p><p> PROMOTION consisting of advertising, personal selling, intermediary referral, customer referral, sales promotion, public relations, coalition building.</p><p> PLACE consisting of distributors, retailers, locations, inventor, transport.</p><p> PEOPLE consisting of personnel (training, discretion, commitment, incentives, appearance, interpersonal behaviour and attitudes) and other customers (including behaviour, degree of involvement and customer-to customer interaction).</p><p> PHYSICAL evidence consisting of environmental factors such as furnishings, colour, layout and noise level; facilitating goods; tangible clues.</p><p> PROCESS consisting of policies, procedures, mechanisation, employee discretion, customer involvement, customer direction and flow of activities</p><p> PHILOSOPHY consisting of philosophy of the charity as a whole, and philosophy to be applied to the specific product</p></li><li><p>FULL DEFINITION</p><p>in p4, Bruce</p><p>Marketing is the analysis, planning, implementation,</p><p>and control of carefully formulated programmes</p><p>designed to bring about voluntary exchanges of</p><p>values with target markets to achieve institutional</p><p>objectives. Marketing involves designing the</p><p>institutions offerings to meet the target marketsneeds and desires, and using effective pricing,</p><p>communication, and distribution to inform, </p><p>motivate,and service the markets.</p><p> Kotler and Fox (1985), p7</p></li><li><p>RELATIONSHIP MARKETING</p><p> Establishing relationships (product, segmentation and targeting, people)</p><p> Strengthening relationships (Market research, spotting problems and encouraging complaints, service </p><p>recovery, QUALITY)</p><p> Customer appreciation and recognition Relationship strategies: financial, social and structural </p><p>bonding (including memberships)</p></li><li><p>BASIC VOLUNTARY ORGANISATION </p><p>MARKETING/SERVICE PLAN Note All the measures which follow should describe last </p><p>years actual, this years forecast, and next years target.</p><p> Name and very short description of the product. (Goods/service/idea) Existing customers: who are they, how many of them, characteristics, how </p><p>segmented,etc. Total market size: who are they, how many, etc Key customer needs and how the product meets them. Philosophy underpinning the product. Price. Promotion (personal selling, advertising, PR, leaflets, etc). Distribution ( how is the product delivered?) People involved Key physical evidence Key aspect of processes to ensure take up Marketing and market research (include evidence of unmet need.) Other players Appendix of other/additional relevant data Bruce (2005), p121</p></li><li><p>FACTORS TO CONSIDER WHEN INTRODUCING A </p><p>MARKETING APPROACH INTO AN </p><p>ORGANISATION</p><p> RESOURCES ( People and money)</p><p> (Existing people, e.g. coaching; training; promotion; start where the learner is. New people e.g. specialists, staff and board; senior champion.) Money for marketing activities and posts.</p><p> PROCESSES</p><p> (e.g. marketing plans; segmentation; market research; promotion; new product development; etc)</p><p> STRUCTURE</p><p> (e.g. corporate advisory posts? Departmental advisory posts? Marketing posts in the line or as service head?</p><p> POLICY</p><p> (Incorporate a marketing approach into your corporate strategy and encourage the idea this is the way we do it here ie culture.)</p><p> Bruce, 2005, Ch 5</p></li></ul>