Cranfield Trust

Introduction to

Marketing

Presenter: Janet Cole

JMC Management Consultancy

Marketing for Charities

•Who?

•What?

•When?

•How?

•Why?

• Who?

People and organizations that your

communication needs to reach

Target Audience

PROVIDER

ORGANISTION

Patients &

service users

Non-care customers

Commissioners

Provident Associations

& Health Insurance

Companies

Patient & service

user groups

Trade Unions &

Professional Associations

Labour

market

Competitors Suppliers

Partners

Regulators

Stakeholders for Health & Social Care

Your

Charity

Stakeholders for Your Charity

Donors

Stakeholders

• Individuals

• Groups

• Small/ large companies/ organisations

Government

• Charity related lobbying – Tax exemptions:

– Gift Aid

– Inheritance tax

– Cause related:

– Key topics

– Disability living allowance

• Existing

• New

• Lapsed

• Non responders

Groupings of Stakeholders common to most organisations

• Customers (past, present and potential)

• Employees

• Suppliers and partners

• Investors and financial community (inc. shareholders)

• Media

• Opinion formers

• Pressure groups

• Professional bodies

• Governments (international, Central and local)

• Local community, educational establishments and bodies

• Legal / Regulator

Individual Donors - Segments ‘Groups’ defined by similarity of specific characteristics

Donor Characteristics

• demographic/socio-economic: age, sex, culture, family life cycle, income,

occupation, education etc.

• geographic/geo-demographic: country, region, ACORN etc.

• psychographic: personality and lifestyle

Donation -related Characteristics

• benefits sought: genuine personal engagement, self worth, philanthropy, status

etc.

• donation behaviour : large donor, frequent donor, ‘light’ donor, loyal donor,

lapsed donor, etc.

• donation occasion: seasonal catalyst, social factors, fundraiser

Segmentation Principles

Benefits

• closer matching of organisational offer to donor needs

• improved ‘competitor’ analysis

• greater share of a more narrowly defined pool

• concentration and focus of organisational resources

Requirements

• easy to identify and measure

• large enough to justify a specific marketing mix

• accessible

• stable

• internally homogenous

Product Marketing

Life Cycle & Diffusion of Innovation

Introduction

Sales

and

Profits

Sales

ProfitsGrowthMaturity Decline

Senility

+

-

Time

Innovators 2.5%

Early Adopters 13.5%

Late Adopters 34%

Late Majority 34%

Laggards 16%

Diffusion of Innovation

Acquisition / Retention of

profitable donors ?

Customer Relationship Marketing

• Recognises lifetime value of customer

• 5-10 times more costly to acquire than retain

customers

•A 5%< in retention 25%< in profitability

(e.g. banking)

• Highlights the need to understand “profitability” of

different customer groups

AQUIRE

New customers

Phases of CRM

Kalakota & Robinson (1999)

What ?

What is your Brand/ Product?

17

Name and Symbol

Has distinctive name,

typeface colour and

symbol

Known

Aims for a high level

of awareness

TRUE BRAND

CHARACTERISTICS

Trusted

Has earnt reputation

on key measures

driving preference

Head and Heart

Has emotional

connection not just

functional meaning

What is a Brand ?

18

Essence

Values

Personality

Brand

Promise

Benefits

Brand

Truths

Core Insight

Consumer target Market definition

H

U

M

A

N

SIDE

OF

THE

B

R

A

N

D

J

O

B

Of

The

B

R

A

N

D

INSIGHT FOUNDATION

RALLYING CALLS

Shorthand

distillation of the

brands reason to

exist Fundamental

guiding principles

and beliefs

Human characteristics

guiding tone, feel

and style

Features, attributes and

properties that help to

underpin the promise

The key motivations

for buying the

brand

Summary of what the brand

offers and why it is better than

the alternatives

The human truth that opens the door to an opportunity

for the brand to improve everyday life

Positioning: person the brand

must excite and involve.

Consumption : broader group of

buyers

The product and service areas in which

the brand wants to operate.

Who will lose if we win?

Charity

Brands –

How to

achieve

cut

through?

Service / Product Marketing

Service/ Product = an idea, a good, a service (or combination)

CustomrCore benefit

or service

Customer Service

Warranty

Delivery

Personnel

Installation

After Sales Support

Brand Name Features

QualityDesign

Packaging Capabilities

Credit

core

actual

augmented

What is a service/ product?

Planning to meet Donor Expectations

• Promises must reflect reality

• Place a premium on reliability

• Communication with customer is key

• Key customer satisfaction factors – Reliability – Assurance – Tangibles – Empathy – Responsiveness

Properties of a Winning

Product Value Proposition

• Donor benefit- donors must see value to them

in their own terms

• Unique – donors must recognise the benefit(s)

as different

• Sustainable – the advantage should be difficult

to copy

• Profitable – the company has to be able to fund

raise at a profit

Developing Customer Insights

• Which group of donors, or segment, will you focus on?

• What specific benefit(s) do these donors value in their experience?

• How do you build an offer that creates significant and sustainable donor preference and generates capturable value?

• What will be the basis of the value proposition?

• What value drivers do you need to deliver the value proposition?

What ?

• Why should benefactors give funds to your

charity?

Define your ‘Real’ Product

• USP’s (Unique Selling Proposition)

• Motivational factors

Introduction

Sales

and

Profits

Sales

ProfitsGrowth

Maturity

Decline

+

-

Time

Product Life Cycle

Internal Analysis

Introduction

•high advertising costs

•grow fast

•initial quality problems

•increase market share

•test prototypes

•R&D, engineering,

promotion are key

•negative cash flow

•high prices

•innovator customers

•over-capacity

•limited distribution

Growth

•more competition

•scramble for

distribution

•differentiate

•build reliability

•competitive

pricing

•marketing is key

•neutral cash flow

•under capacity

Maturity

•falling prices

•differentiate

•segmentation key

•replacements?

•keep price/quality

image

•bad time to increase

share

•marketing effectiveness

and competitive costs

are key

•positive cash flow

Decline

•sophisticated

customers

•drop old products

(keep base

models only)

•minimum effort to

match demand

•move inventory

stocks

•neutral-positive

cash flow

•overcapacity

When?

When is the optimal time to fundraise?

• Seasonality

• Day of week

• Time of day

• Campaign links

How?

How?

Traditional Mediums• Mass Marketing

• TV

• Radio

• Print (Magazines, Newspapers etc.)

DIGITAL • One to One Marketing

Public Relations (PR)

Social Media • Linked In – Charity profile

• Facebook- Charity profile

• Twitter - Charity profile

• Websites

• Mobile

Last access Visitors

13/11/2013 17

12/11/2013 77

11/11/2013 58

‘Mobile Consumer Journey’ blog

New content written for the MMA event

Mobile Marketing Association Forum

Social Media

Competition?

Co-operation?

Co-opitition ?

Ethical Brand

Why eb?

•Growth of the wider ethical market place

•Companies facing greater external scrutiny and so focusing on ethical, Corporate Social Responsibility (CSR) and Green issues

•Consumer- growth of the ‘Consumer Voice’

• General consumer awareness – circa 93% of consumers are predisposed to support companies that they perceive are ‘doing the right thing’. However, they are seldom able to distinguish between those that are authentic and those that are just on the ‘ethical bandwagon’

•Consumer Activists - now have the platform of the web, in particular social networking sites, with the preparedness to act with guerrilla tactics e.g. to organise boycotts

•‘Brand Value’

•balance sheet listing for many major companies and a key ‘goodwill’ aspect for smaller companies

•City and shareholder perspective

Brand Reputation

Reputational Risk

•Top brands like The Gap and Nike have suffered major reputational damage due to ethical issues.

•In 2007 The Gap was subjected to an high profile international negative PR campaign when the press discovered it was using child labour in Asia. Despite millions spent attempting to alter this negative PR the stigma is still attached to the brand today.

•Nike was also implicated similarly and there still ‘boycotting’ campaigns live on the web today

•Effective supply chain management is crucial to managing brand reputation in the current market place

eb will work towards developing ethical supply chains that effectively underpin brands

Public Relations

(PR)

What is PR?

What is the difference between PR and advertising?

• Advertising- paying a medium (TV, radio,

newspapers etc.) for airtime or column inches to

convey a promotional message

• PR – persuasion of journalists to cover products and

services on the grounds of newsworthiness.

(i.e. NOT paid for coverage)

Attitude Shifting

• PR is a communications tool used to influence

the attitudes, perceptions and opinions of the

audiences that are important to the success of

the organisation

• Key Areas of focus – Corporate identity

– Reputation

– Branding

– Differentiation (organisation or product/ service)

Corporate activities may involve:

• Publicity generating editorial coverage

• Press/media relations keeping news/information media informed about organisational activities

• Public affairs lobbying or representations to government and trade bodies

• Community relations community sponsorship, etc

• Employee relations communicating with employees

• Benefactor relations marketing support and communication

• Financial public relations financial media relations and providing information to shareholders and financial markets

• Issues management monitoring potential controversies

• Crisis communication missuing communication to minimise or counter negative PR

Media Relations

• The 3 Golden W’s

• Why is what we have to say of interest? Is it news? Is it relevant to the readership?

• When is the journalists deadline? Daily, Weekly Publication?

• What format is required? Email, article etc. targeting the right contact and

tailoring

» Source – PR Power – Amanda Barry

» Warwick Business School

Media Relations

• Applying the 3W => 5w’s - Newsworthiness

• What is it? e.g. beneficiary testimonial, new/ influential donor,

important organisational expansion, new member of staff. Is it

news? Is it relevant to the readership?

• What type of media do you think would be interested in the

story? Trade publication, local newspaper, national media

• Why will they be interested? Objectively approach the question –

what are the specific hooks for this audience? Lead with a

newsworthy angle

• What is the journalists deadline? Know the schedules of the

media most important to you

• What format is required? Email, etc. TV/ radio vs press

Features of journalistic style

• Headline: keep it short, relevant to what follows, positive and upbeat or challenging

• First paragraph: short, direct and simple introduction to the main proposition of the article/release

• KISS: keep it short and simple

• Avoid technical jargon

• ‘News not views’: give facts. Who and what are you writing about? How did it happen and when?

• Comment/opinion: used for human interest/vividness. Use quotes

• Sub-headings: maintain interest, break up text

Message Presentation

• Format – how should the message be put across? – Visual images, type face

• Tone – Mood (upbeat / sombre, atmosphere, style,

use of language)

• Context – environmental factors prevailing

• Timing – specific to the PR activity – News worthiness has a very short window

– Campaigns around an event need to be synchronised

• Repetition – reinforcement of a credible message – Wear out factor

– Using a raft of PR channels can help to dissipate this effect

Content, Content, Content!!

What to write about?

Why?

Department-store magnate

John Wanamaker observed,

“I know half my advertising

dollars are wasted. I just don’t

know which half.”

Why?

Every Marketing Activity needs to be

• Tracked

• Measured

“How did you hear about my charity?”

Marketing

Measuring Effectiveness

Non-Financial

• Market share

• Penetration

•Awareness

• Share of voice

• Loyalty

• Recommendation

• Reputation

• Internal attitudes

Financial

• Donor fundraising

• Profit

•Marketing spend

• New donor acquisition cost

• New donor revenue

• Cost of quality