Course in nonprofit and public marketing

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Course in non-profit and public marketing

• Lecture 3
• Marketing tools and techniques in a non-profit
  world

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First lecture Three sectors
Government
Private sector
Third sector
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First lecture

• Differences and similarities between profit and
  nonprofit marketing
• Similarities
• Marketing always a relevant discipline when you
  have to influence the behaviour of others
• (Fisherprice and Save the Children shared quite
  a few techniques to touch their readers)

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First lecture (continued)

• Differences
• Marketing has had a particularly bad image in Non
  Profit circles
• Little tradition for marketing research and
  ressources for this
• Often controversial or taboo topices
• Huge sacrifices are often demanded
• Or issues to which the public is indifferent

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Last time Danish Red Cross

• Marketing task
• Getting media attention.
• Getting the publics attention
• Danish families living on food rationing as in
  real relief work
• Danish schools without water
• Getting ideas and doubting if they were right
  (sex in ads, suffering children in ads)
• Ambivalence towards marketing department

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Today

• Market orientation
• Marketing tools and techniques in a non-profit
  context
• the marketing plan
• Exercise Non-profits missions and visions

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Market orientation

• Definitions
• The aim of marketing is to sensitively serve the
  consumers and society at large Kotler and
  Andreasen
• Marketing is the management process responsible
  for identifying, anticipating and satisfying
  customer requirements profitably The Chartered
  Institute of Marketing, UK

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Marketing as an add-on or as a philosophy
M
M
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Customers
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Advantages of marketing

• Marketing can
• Improve the levels of customer satisfaction
• Assist in the attractions of resources
• Define an organisations distinctive competencies,
  add value, refine those competencies
• Offer a systematic approach to researching needs,
  setting objectives, planning to meet those
  objectives, and help the instigation of formal
  control activites to ensure minimal waste of
  resources.

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The marketing plan

• Mission statement
• Organisational Objectives
• Marketing Audit
• Marketing Objectives
• Marketing Strategies
• Marketing Tactics
• Budget
• Scheduling
• Monitoring and Control

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The marketing planning process

• Where are we now?
• Where do we want to be?
• How will we get there?

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Mission

• The customer groups that will be served
• The customer needs that will be met
• The technology that will be employed in
  satisfying these needs
• Aim, purpose or philosophy
• Absence of figures
• What the organisation wishes to achieve
• (Sargeant, 2005, p. 53-54)

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The marketing plan

• Mission statement
• Organisational Objectives
• Marketing Audit
• Marketing Objectives
• Marketing Strategies
• Marketing Tactics
• Budget
• Scheduling
• Monitoring and Control

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The marketing audit

• Question 1. Where are we now?
• Assess yourselves and your opponents Sun Tzu,
  The Art of War
• A systematic attempt to gather as much
  information as possible about the organisation
  and its environment, and how these might both be
  expected to change and develop (Sargeant, p. 55,
  2005)

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The marketing audit

• PEEST analysis
• Competitor analysis
• Collaborative analysis
• Market analysis
• Analysis of publics
• Analysis of own organisation

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Peest

• Political
• Economic
• Environmental
• Socio-cultural
• Technological

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Analysis of Competitors

• Competitors for resources
• Competitors for provision of nonprofit services
• Organisations with competing missions
• Competitor analysis
• Contact details of each competitor
• Size and geographic location(s)
• Financial performance
• Resource capabilities
• Past strategies
• Tactical marketing mixes employed
• Key alliances formed

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More marketing audit

• Collaborative analysis who can we profit from
  working with?
• Market analysis in which market do we operate
  (from our own perspective, the perspective of our
  stakeholders)
• Analysis of Publics ressource allocation and
  ressource acquisition

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Life cycle matrix
Strong Average Weak
Early development Take-off Rapid
Growth Competitive shake-out Maturity Market
saturation Stagnation/decline
A
B
B
C
E
D
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SWOT (summary and analysis of marketing audit)

• What are the strengths of the organisation?
• What are its weaknesses?
• What are the main opportunities?
• What are the major threaths facing the
  organisation?
• where are we now.

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The marketing plan

• Mission statement
• Organisational Objectives
• Marketing Audit
• Marketing Objectives
• Marketing Strategies
• Marketing Tactics
• Budget
• Scheduling
• Monitoring and Control

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Setting marketing objectives

• Good marketing objectives are SMART
• Specific
• Measurable
• Achievable
• Relevant
• Timescaled
• Helge Kvams Goal for the Door-to-Door
  Collection
• 20.000 volunteers
• Visit every Danish household
• 20 million Danish kroner

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Strategies

• Overall direction develop new markets or
  penerate existing markets further.
• Merger/collaborative strategy Cooperation?
• Competitive strategy Or not?
• Segmentation strategy who?
• Positioning strategy How are we different?
• Branding strategy How do we sell ourselves?

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Positioning
Academic reputation
high
Deansville
Wardtown
high
low
Quality of life
Coinsville
Bloomsville
Beechley
low
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Positioning
Academic reputation
high
Deansville
Bloomsville
Wardtown
high
low
Quality of life
Coinsville
Bloomsville
Beechley
low
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Tactics

• The 4 Ps (the marketing mix)
• Products/Services
• Price (entrance fees, service charges, donotions,
  contributions, etc.)
• Place
• Promotion

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Next time

• Communication campaigns.
• What is communication?
• When bad ads happen to good causes
• Please read Chapter 5 and 8 in Sargeants book.