Nonprofit Marketing. Dr. Chun-Tuan Debbie Chang

Transcription

1 Nonprofit Marketing Dr. Chun-Tuan Debbie Chang

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5 Introduction Nonprofit marketing => the use of marketing tactics to further the goals and objectives of nonprofit organizations Nonprofit marketing tactics (narrow)=> advertising, public relations, and fund-raising, etc. Nonprofit marketing activities (broad) => gathering and processing information for decision-making, government relations, board member, donor, and volunteer relations, etc.

6 Introduction (Cont.) Nonprofit marketing (broader) => a management orientation which helps a nonprofit look beyond its internal operations and programs to the external world that affects the organization.

7 Introduction (Cont.) Human Resources Purchasing Finance Operations Chief Executive or General Manager Management Control Marketing Development (Fundraising) Government Relations

8 Dimensions of Nonprofit Marketing Resource Attraction => need to attract donations of time, funds and gifts-in-kind. Resource Attraction Function Resource Attraction Funds Tim e Individual Donors Organizational Donors Volunteers

9 Dimensions of Nonprofit Marketing Resource Attraction => need to attract donations of time, funds and gifts-in-kind. Donations of time (recruitment and retention of volunteers). Donations of funds (contributions from organizations and individuals). In-kind donations

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15 Dimensions of Nonprofit Marketing Important because: it provides services that are not performed by the business sector.

16 Etc Importance of the Nonprofit Sector Important because: it provides services that are not performed by the business sector. Boys and Girls Clubs of America Nonprofit universities Charities Hospitals

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19 Importance of the Nonprofit Sector Important because: it allows for citizens to participate in their communities collectively.

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21 Importance of the Nonprofit Sector Important because: the number of nonprofit organizations is growing in the U.S. the number of nonprofits grew by 312,366 from 1997 to 1,397,263 in 2004

22 Importance of the Nonprofit Sector Important because: it involves a lot of money. U.S. individuals, estates, foundations and corporations gave an estimated $ billion to charitable causes in 2003.

23 Importance of the Nonprofit Sector Table 1.1 U.S. Charitable Giving in 2003 Segment Giving Level ($ billions) % Change From 2002 % of Total Individuals Bequests Foundations Corporations $ %

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25 Importance of the Nonprofit Sector Important because: It is an international phenomenon Canada = 161,000 nonprofits and Canadians donated $8 billion to its nonprofit sector England and Wales = 166,129 charities in with revenues of billion. Scotland = 27,000 charities Northern Ireland = 7,500 charities Australia (2000) about 380,000 nonprofits

26 Key Concept: Exchange Fees, donations, time Client Firm Services, tax benefits, warm glow, prestige, fulfillment of duty, etc. Marketing focus

27 Nonprofit Marketing Marketing: Plan, price, promote, and distribute an NPO s programs and products Marketing tasks Define target markets Who should our clients (or donors) be? Link to these clients How do we reach them? What price attracts them? How do we communicate with them?

28 Market Segmentation Segmenting: Grouping with needs, wants, motivations, values, behavior, lifestyles Charity giving personality traits, income age, donation frequency Below Target market

29 Targeting Messages to Demographic Groups DEMOGRAPHICS TO TARGET SENSE OF COM- MUNITY CHARITIES ARE MORE EFFECTIVE THAN GOV T FUNDRAISING FOCUS SENSE OF DUTY HELPED YOU IN TIMES OF NEED LOW INCOME X X TAX BENEFITS RELIGIOUS REASONS YOUNGER X PRACTICING FAITH X X MARRIED X SINGLE NONWHITE X X WOMEN X X X X CONSERVATIVES X VOLUNTEER X X X X X Ref.: Van Slyke 2002

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32 Why Is NPO Marketing Difficult? NPO culture (i.e. attitudes about efficiency, credibility, commercialization, etc.) Unrealistic goals Unreliability of resources (I.e. volatile donations) HR issues (staff vs. volunteers)

33 Competition Competition for what? Members/clients Donors/volunteers/do nations Inventory (e.g. books, art works, etc.) Competition with whom? Other NPOs For-profits Governments Identifying competition Similarity of prizes (management perspective) Similarity of services (client/donor perspective) Common competitor: inaction (e.g. no medical care)

34 Strategy Evaluation For-profit success measures Profit Customers Nonprofit success measures Service level + quality + access Clients + donors + volunteers + trustees

35 Communication Tools Explicit communications Annual reports Newsletters Press releases Brochures Direct mail Media advertising Telemarketing Special events Implicit communications Pricing Products Distribution

36 E-philanthropy Harvard Business School s Initiative on Social Enterprise: By 2010, 1/3 of all philanthropy will take place over the internet but at present, only $10m is given in e-philanthropy each year ($1 for every $13,000 given) E-philanthropy firms (e.g. Charitableway) failing Ref. Brooks 2002

37 How Web-Savvy Are Nonprofits? Percentage of nonprofits Use 87.9% Have web access 87.6% Have website 66.3% Accept donations through website 17.3% Plan to accept donations 38.2% Sell merchandise through website 14.6% Plan to sell merchandise 17.3% Large NPOs are not more likely to have or web access, but are more likely to use the web for fundraising Ref. Zimmer 2002

38 Maslow s Pyramid

39 NPO Branding What s the first thing that comes to mind when I say? First on scene Assists in Disaster The Red Cross Symbol Global Blood Drives Medical aid On the News War Tents and blankets Helps children around world UN Christmas Cards Celebrities

40 Dimensions of Nonprofit Marketing Differentiation 3rd Step Favorable Image 2nd Step Becoming Known 1st Step Positioning Tasks

41 Dimensions of Nonprofit Marketing Planning => nonprofit marketers develop plans to help the nonprofit achieve its strategic goals and its mission. Positioning => implementing marketing activities aimed at influencing the public s perception of the NPO; to develop a specific image of the NPO Brand => the name, logo, and symbols that uniquely identify an NPO and distinguish it from other organizations.

42 Product Marketing Mix The programs or services provided Price What it costs to participate Place Where the products, programs, and services are available (distribution system) Promotion Promotion of product, program, or service

43 Promotion: Messages Types Abstract Concrete Promote Giving is vital for society Giving makes you feel good * Refute Your gift might be small, but you re doing your part * Your gift can achieve X, even if it s as small as Y *Found to be most effective Ref.: Clary

44 Advertising Appeals of NPOs Rational appeals Emotional appeals Fear appeals Humor appeals Moral appeals

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46 "Smoking isn't just suicide. It's murder."

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49 Foot-in-the-door Techniques Every little bit helps. Even a penny will help. Even a cent will help. Even a dollar will help.

50 Marketing Research Define research objectives Do preliminary research Design the formal research Do fieldwork Analyze the data

51 Donation Behavior in Taiwan 80% 70% 60% 50% 40% 30% 20% 10% 0% Total North Middle South Male Female Age Age Age (n=806) 72.5% 71.7% 70.6% 74.9% 66.4% 78.6% 59.6% 78.4% 79.0% 2005(n=1008) 55.9% 61.0% 51.0% 50.0% 47.0% 64.0% 39.0% 59.0% 66.0%

52 Affiliation of Charitable Donation 80% 70% 60% 50% 40% 30% 20% 10% 0% Lighted-up Future Perspective for Life (n=394) Feel warm Help people in need Help childre n Credibl e activity Make good use of Stimula te donatio Easy access financi al transpa Genera te sympat 55.8% 54.3% 53.6% 49.0% 45.9% 43.7% 41.9% 28.9% 27.9% Hunger(n=941) 64.8% 60.5% 57.8% 61.5% 51.1% 57.6% 57.0% 34.8% 44.7% United Way (n=812) 51.4% 57.6% 51.7% 57.1% 48.6% 47.4% 55.5% 36.7% 21.8% %=total of Agree +Strongly Agree