PROFESSOR IAN BRUCE CBE

CHARITYCOMMS CONFERENCE 2 DEC 2010

SUCCESSFUL CHARITY MARKETING

NP MARKETING - PENETRATION

• Very good into F/R

• Very good into Comms

• Fair into Campaigning

• Poor into service delivery – Why? Sleazy

image

Marketing is meeting

customer needs within the

objectives of the

organisation

MARKETING- Philosophy, Framework

and Management Tools to Ensure a

Needs Led Approach to Voluntary

Organisation Work

• Why is marketing approach relevant?

• Why is there resistance?

• Who are our customers?

• What are our products: goods, services, ideas

• The marketing framework and tools:

• Segmentation

• Market research

• Other player analysis

• Positioning

• The voluntary organisation/charity marketing mix

WHY ARE CHARITIES NOT

AUTOMATICALLY CUSTOMER

ORIENTATED?

• Often are monopolies

• Demand outstrips supply

• Beneficiaries too weak to make their voices heard

• ‘haves’ can develop a patronising attitude towards ‘have

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

the masses

• amelioration can lead to acceptance of the status quo

and that the beneficiaries’ predicament is their ‘fault’

• Bruce, 2005, Charity Marketing, pp 104-111

VOLUNTARY ORGANISATION

CUSTOMERS

Bruce, p 30Beneficiaries

Clients

Students

Patients

Users

Purchasers

Local Public

Members

Audience

Patrons

Supporters

Donors

Volunteer Fund-raisers

Voluntary Serviceworkers

Advocates

Purchasers

Stakeholders

Staff

Representatives ofbeneficiaries

Committeemembers

Regulators

CharityCommission

Local Authorities(inspection)

Local community

VOLUNTARY ORGANISATION

CUSTOMERSBruce, p 30

Beneficiary Intermediaries Statutory Providers and Purchasers Commercial Providers Family Purchasers Voluntary org Providers Policy-makers Decision-makers

Supporter Intermediaries Church leaders Company Chief Executives School Head Teachers, etc

Stakeholder Intermediaries Staff managers Union Representatives Committee leaders

Regulator Intermediaries MPs Home Office Local councils

TYPE OF PRODUCTS

• GOODS

• SERVICES

• IDEAS

A GOODS-SERVICE

CONTINUUM

Shostack (1977), p 77

Tangible dominant

Intangible

dominant

SaltSoft drinks

Detergents

AutomobilesCosmetics

Fast-food outlets

Fast-food outlets

Advertising agenciesAirlines

Investment

management ConsultingTeaching

EMPOWERMENT

Bruce, p80

Goods

IdeaService

RULES OF PRODUCT

COMPOSITIONBruce, p 82

1. All products have actual or latent

physical goods, service and ideas

components.

2. Successful marketing requires that

all three components are attended to

if the maximum number of customers

is to be recruited and retained

Product Customer

(goods, (beneficiaries,

services, supporters,

ideas). stakeholders,

regulators).

Segmentation criteria -

• Demographic

• Geographics

• Behavioural

• Psychological/attitudinal

Defining segmentation….

• Size

• Criteria

• Reachable

• Cost

• Competition

PositioningHarrison (1987), p 7, in Bruce p 57

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.

Market Strategy choices

• Market leader

• Market nicher

• Market challenger

• Market follower

• Kotler and Andreasen (1991), p 206, in Bruce,

p56

Other Player (Competitor)

Analysis

• COMMERCIAL SECTOR

• STATUTORY SECTOR

• VOLUNTARY SECTOR

• INFORMAL SECTOR

8 POINTS OF CHARITY MARKETING

MIX Bruce, p 64

• PRODUCT (goods, services or ideas): consisting of quality features, name, packaging, services, guarantees.

• PRICE comprising price, discounts, allowances, credit.

• PROMOTION consisting of advertising, personal selling, intermediary referral, customer referral, sales promotion, public relations, coalition building.

• PLACE consisting of distributors, retailers, locations, inventor, transport.

• 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).

• PHYSICAL evidence consisting of environmental factors such as furnishings, colour, layout and noise level; facilitating goods; tangible clues.

• PROCESS consisting of policies, procedures, mechanisation, employee discretion, customer involvement, customer direction and flow of activities

• PHILOSOPHY consisting of philosophy of the charity as a whole, and philosophy to be applied to the specific product

FULL DEFINITION

in p4, Bruce

Marketing is the analysis, planning, implementation,

and control of carefully formulated programmes

designed to bring about voluntary exchanges of

values with target markets to achieve institutional

objectives. Marketing involves designing the

institution’s offerings to meet the target markets’

needs and desires, and using effective pricing,

communication, and distribution to inform,

motivate,and service the markets.

• Kotler and Fox (1985), p7

RELATIONSHIP MARKETING

• Establishing relationships (product, segmentation and

targeting, people)

• Strengthening relationships (Market research, spotting

problems and encouraging complaints, service

recovery, QUALITY)

• Customer appreciation and recognition

• Relationship strategies: financial, social and structural

bonding (including memberships)

BASIC VOLUNTARY ORGANISATION

MARKETING/SERVICE PLAN Note All the measures which follow should describe last

year’s actual, this year’s forecast, and next year’s target.

• Name and very short description of the product. (Goods/service/idea)• Existing customers: who are they, how many of them, characteristics, how

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

FACTORS TO CONSIDER WHEN INTRODUCING A

MARKETING APPROACH INTO AN

ORGANISATION

• RESOURCES ( People and money)

• (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.

• PROCESSES

• (e.g. marketing plans; segmentation; market research; promotion;• new product development; etc)

• STRUCTURE

• (e.g. corporate advisory posts? Departmental advisory posts?• Marketing posts in the line or as service head?

• POLICY

• (Incorporate a marketing approach into your corporate strategy• and encourage the idea ‘this is the way we do it here’ ie culture.)

• Bruce, 2005, Ch 5