The State of Marketing in the Public and NonProfit Sectors

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The State of Marketing in the Public and
Non-Profit Sectors

• Jim Mintz, Director
• Centre of Excellence for Public Sector Marketing
  , Ottawa

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Centre of Excellence for Public Sector Marketing
(CEPSM)

• Our Mission
• To advance the marketing discipline in the public
  sector.
• Our Mandate
• To provide a focal point for public sector
  marketing expertise that will encourage and
  support innovation in marketing, communications
  and delivery of services to Canadians, while
  instilling pride in the field of public sector
  marketing.

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Centre of Excellence for Public Sector Marketing
(CEPSM)

• Professional Development and Training
• Workshops, courses and seminars
• In-house training and coaching
• Professional Advice and Coaching
• High-level strategic solutions provided by
  seasoned experts
• Strategic planning and marketing research,
• Analysis and advice, including marketing audits.
• Tools and Resources
• Web-based information, tools and resources

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Centre of Excellence for Public Sector Marketing
(CEPSM)

• CEPSM focuses it's expertise in 4 distinct areas
  in public sector marketing
• Marketing of products and services. Offering of
  products and services for a fee (either on a
  cost-recovery or for-profit basis).
• Social marketing. Campaigns to change
  attitudes/behaviours (e.g. anti-smoking, energy
  conservation, emergency planning, healthy living,
  etc.)

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Centre of Excellence for Public Sector Marketing
(CEPSM)

• CEPSM focuses it's expertise in 4 distinct areas
  in public sector marketing
• Policy marketing. Campaigns to convince specific
  sectors of society to accept policies, or new
  legislation (e.g. anti-tobacco legislation, gun
  control, funding for the arts, etc.)
• Demarketing or dont use our programs
  marketing. Campaigns launched by governments to
  advise and/or persuade targeted groups not to use
  government programs that have been available to
  them in the past.

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Centre of Excellence for Public Sector Marketing
(CEPSM)

• The Carleton University Sprott Professional
  Certificate in Public Sector and Non-Profit
  Marketing (Ottawa) www.carleton.ca/ppd/indepth/cps
  m.htm
• MARCOM 2007 Canada's Public Sector and
  Non-Profit Marketing Symposium, June 6 7 Hampton
  Ottawa Inn and Conference Centrewww.marcom.ca

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Setting the Scene

• Long-standing debate about the relevance of
  marketing to the public sector and, to a lesser
  extent, the non-profit sector, e.g.
• Marketing implies economic choice, which does not
  always apply to government or non-profit
  situations
• The concept of democracy does not lend itself to
  influencing attitudes and changing behaviour (as
  opposed to responding to the unfiltered demands
  of citizens)
• These notions have now been dismissed as overly
  simplistic given the range and complexity of
  government and non-profit activities

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Setting the Scene

• Initial resistance and lack of perceived
  applicability gave marketing a late start
  however, it has now been recognized that there
  are qualified applications of marketing that can
  make a significant impact.
• Social marketing can help to change attitudes,
  values and behaviour for the collective
  well-being
• Strategic marketing, segmentation and other
  concepts can be applied to improve the impact of
  programs and services
• Marketing techniques can be used to help make
  better resource trade-off decisions
• For fee-based products and services (including
  fundraising), product marketing concepts can be
  used to improve uptake

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Setting the Scene

• Important to advance good marketing practices
  within both the public and non profit sectors
• The purpose of the State of Marketing survey is
  to do exactly that
• It can be used as a benchmark to determine the
  marketing health of public and non-profit
  organizations
• It can be used to identify specific training and
  development initiatives to effect improvement
• It can be used to gauge the success of these
  interventions
• A concerted effort to improve the state of
  marketing can have a positive impact on
  employees, citizens, stakeholders

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The Nuts and Bolts of the Study

• Online survey of 575 people in marketing-related
  positions in government and non-profit
  organizations across Canada
• Email invitation with one follow-up to a list of
  approximately 6,000 people in government and
  non-profit organizations (identified as being in
  marketing-related positions)
• Response rate was 10 (over 600 began the survey)

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The Nuts and Bolts of the Study

• Respondents rated their organization based on
  agreement or disagreement (5 point Likert scale)
  with 72 statements related to different aspects
  of marketing
• Statements were based on an extensive literature
  review to identify best practices and
  characteristics of marketing organizations
• Definitions were included to ensure common
  understanding of key concepts, terminology

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The Nuts and Bolts of the Study

• Using an analytical technique called factor
  analysis, the 72 measures were condensed into 8
  underlying constructs that can be used assess the
  marketing health of organizations in the public
  and non-profit sectors. These are
• Marketing Information and Measurement
• Planning
• Culture
• Management
• Knowledge and Skills
• Organization
• Outputs/Results
• Resources

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The Nuts and Bolts of the Study

• Performance indices were developed by averaging
  the scores on the individual measures included in
  each construct and then converting the scores to
  a 100-point scale
• 100 all individual measures received a rating
  of 5 out of 5, indicating strong agreement
• 75 average rating of 4 out of 5, where 4
  indicates some measure of agreement
• 50 average rating of 3 out of 5, where 3
  indicates that they neither agreed nor disagreed
• 25 average rating on all individual measures of
  2 out of 5, indicating some disagreement
• 0 all individual measures received a rating of
  1 out of 5, indicating strong disagreement

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The State of Marketing
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Behind the NumbersCulture
The concept of marketing, or social marketing
for that matter, is not really part of the
lexicon in this department.
We seem to take one step forward and then two
steps back every time theres a change in the
government environment.
The department doesnt know or want to know how
marketing fits into initiatives because it sounds
too pro-business and non-governmental.
Numbers represent mean score on a 5 point
scale, where 1 means strongly disagree and 5
means strongly agree
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Behind the NumbersCulture
Marketing here is governed by a centralized
communications department that finds marketing to
be a foreign concept.
Historically, marketing and communications were
considered synonymous. Only recently have we
started to recognize the difference.
Numbers represent mean score on a 5 point
scale, where 1 means strongly disagree and 5
means strongly agree
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Behind the NumbersCulture
We do not have an overall marketing plan. Each
program has a plan if it is appropriate and each
program is funded in this way. As an NPO, we do
not have the resources for a marketing position.
As well, we do not market the organization, but
specific programs.
Numbers represent mean score on a 5 point
scale, where 1 means strongly disagree and 5
means strongly agree
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Behind the NumbersCulture
I would like to see a coordinated effort between
what we call project leaders and marketing
communications. Instead of marketing products or
services based on internal political thrusts,
look at what people actually need, built it,
market it and continually serve these clients to
meet their needs.
My organization seems to put no value on
marketing or feel they dont need it. We use
marketing and communications in a reactive
manner.
Numbers represent mean score on a 5 point
scale, where 1 means strongly disagree and 5
means strongly agree
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Behind the NumbersCulture
Often in smaller municipalities, there are no
designated staff for marketing, and only limited
direct marketing resources. Marketing is either
shared by several staff or only part of one staff
members responsibilities. And, this staff
member has usually evolved into the role and may
not have formal education in marketing.
Marketing is not respected by colleagues.
Economists have much more cachet.
Numbers represent mean score on a 5 point
scale, where 1 means strongly disagree and 5
means strongly agree
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Behind the Numbers Marketing Information
Measurement
Our organization has a long history of
developing products and services and subsequently
delivering them to Canadians with the
misconceived idea that they are the correct
products and services. We have done an abysmal
job of determining what clients want.
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Behind the Numbers Marketing Information
Measurement
While this organization does undertake marketing
related to events and membership, there is no
budget nor will (from upper management) to
measure success of our efforts, which is
essential to any plan.
Numbers represent mean score on a 5 point
scale, where 1 means strongly disagree and 5
means strongly agree
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Behind the NumbersResources
As a non-profit organization, the resources
available for marketing are extremely limited.
There are huge expectations from government
partners to undertake marketing activities, but
very few resources allowed to do so. Government
partners also have difficulty understanding that
marketing tools need not be flashy or expensive
to have impact.
The public sector does not generally recognize
and value the marketing function, so it is
usually under-staffed and under-funded. With the
lack of dollars, the marketing function then
under-delivers.
The marketing budget and activities are very
dependent on funds raised from government and
business, and it varies from year to year. This
makes it difficult to retain staff. Without
staff, it is difficult to develop and follow a
marketing strategy.
Numbers represent mean score on a 5 point
scale, where 1 means strongly disagree and 5
means strongly agree
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Behind the NumbersResults Outputs
Numbers represent mean score on a 5 point
scale, where 1 means strongly disagree and 5
means strongly agree
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Key Findings

• Overall, professionals involved in marketing gave
  their organizations a low overall score across
  all of the factors deemed to be important for
  successful marketing. In particular, lower
  ratings were given to resources, marketing
  information and measurement, knowledge and
  skills, and planning.
• Although non-profit organizations tend to score
  higher on all indices, the study paints a bleak
  picture of the overall marketing health of these
  two sectors. Government , in particular, seem to
  lack the culture, strategic planning environment,
  management systems, knowledge and skill set,
  marketing information and performance measurement
  regime that are indicative of market-centred
  organizations.

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Key Findings

• Analysis by level of government suggests that
  crown corporations and provincial / municipal
  government organizations demonstrate a stronger
  orientation towards marketing compared to the
  federal government.
• Within the government sector, a higher proportion
  of provincial and municipal government
  organizations scored better on the culture index
  compared to federal government organizations.
• In comparison to government, non-profits
  exhibited an organizational culture that was more
  focused on offering value and service.

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Key Findings

• Both government and non-profits demonstrated
  particular neglect for incorporating a formal
  marketing planning process and establishing
  measurable marketing objectives at the
  organizational level.
• Public sector organizations fail to consider
  client needs when developing service approaches
  and product/program/service offerings.
  Governments, scored low on implementing a
  proactive process that considers client needs
  when identifying and developing new
  products/programs/services,

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Key Findings

• The performance of both government and
  non-profits on knowledge and skills of marketing
  indicates that, while some organizations display
  a willingness to provide the necessary skills,
  they do not necessarily back up this promise in
  terms of organizational support and culture.
• Marketing professionals in both the government
  and non-profits noted that their organizations
  were particularly poor performers when it comes
  to rewarding staff for achieving marketing
  objectives or improving value delivered to
  clients.

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Key Findings

• Government and non-profit organizations do not
  effectively use market research and other lines
  of evidence to gather information to support
  their marketing function.
• Government and non-profit organizations tend to
  be reactive, rather than have proactive systems
  in place to address shifts in the marketplace.
• Marketing within both government and non-profit
  organizations tends to be managed in silos (based
  on program or operational units),

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Key Findings

• A majority of respondents indicated that
  marketing planning will be a priority area of
  focus for their organization in the coming year.
• Marketing professionals from non-profit
  organizations expected service quality and client
  relationship management to be a priority in the
  coming year, while government organizations will
  place some priority on managing service delivery
  channels.

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Implications and Directions

• Need to educate senior government managers about
  value and applicability of marketing i.e.
  potential impact on effectiveness/efficiency of
  programs, and services as well as benefit to
  citizens.
• Within government , wide recognition of the role
  and value of the communications function
  Opportunity to broaden this function to include a
  strategic marketing mandate thereby
  re-positioning it as an expanded role. Viewing
  communications within a broader strategic
  marketing framework will help to drive results in
  program uptake, program impact and behavioural
  change.

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Implications and Directions

• Marketing does not occupy an institutionalized
  position. No clear marketing function or job
  category and few positions include marketing in
  their titles. Need to look at process for hiring
  marketing personnel and assigning responsibility
  for marketing to senior manager
• Need for formal training in marketing.
• Marketing management systems and practices must
  be adopted from the planning level on down.
  Measurement systems to track success against
  marketing objectives.

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Implications and Directions

• Marketing is beneficial to government and non
  profits because it ensures clients and
  stakeholders play a major role in developing and
  implementing a program/product/service
  initiatives tailored to specific segments of the
  market ensure efficient use of limited resources
  and the application of four ps ensures that
  initiative moves beyond communications/
  promotion.
• As non profits/government continue to try to meet
  the challenges associated with demands for better
  and improved service delivery with budgetary
  constraints, new and different models of
  management need be considered. Marketing presents
  a comprehensive, integrated and innovative
  approach.

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Order Copy of Report

• www.publicsectormarketing.ca/resources_e

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For more information

• www.networkedgovernment.ca

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Our Mission To advance the marketing
discipline in the public sector.
Jim Mintz
Email jim.mintz_at_publicsectormarketing.ca
x18