Marketing Should Be a Profit Center · Marketing Should Be a Profit Center, Not a Cost Center (By Tim Williams, posted on Linkedin, February 19, 2013) One of the deep-seated beliefs

Marketing Should Be a Profit Center, Not a Cost Center (By Tim Williams, posted on Linkedin, February 19, 2013)

One of the deep-seated beliefs of the late great Peter Drucker was that “The business enterprise has two -- and only two -- basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs.” Manufacturing is a cost. Management and administration are costs. Finance, accounting, HR, IT, operations, and legal are all costs. The only function in

a company that produces revenues and profits is marketing; that is, marketing defined holistically as product, price, place, and promotion. Viewed another way, attorneys, accountants, and IT consultants essentially cost the company money. This isn’t to say that the money isn’t well spent, or that these professionals don’t sometimes save corporations a lot of money by preventing lawsuits, keeping things straight with the IRS, or implementing timesaving new software. But none of these functions actually produce revenues for the company. Marketing does. So why do law firms earn three times the fees of marketing firms? Because they’re accredited? Because law is a “true profession” and marketing isn’t? Perhaps. But it’s more likely the case that it’s because marketing has become the department that produces brochures and ads. Marketing ≠ Advertising In the earlier days of marketing, which emphasized all four Ps, marketing was a board-level function in corporations. Today that’s often not the case. Marketing professionals are usually seen as the “advertising people.” Marketing as a profession has allowed itself to be moved downstream, and “business consultants” have come in to fill the void. When defined as it should be, marketing is a C-level job. It’s by far the most important function in the company, and as Drucker says, the only one that produces results. Because global business has lost sight of this, C-suites are instead filled mostly with executives from finance. Finance exists to support marketing, not the other way around. Marketing as a growth driver instead of a service provider Within corporations, the marketing function exists somewhere along the spectrum between: Marketing as proactive growth driver > < Marketing as reactive service provider

If you’re an advertising agency and you take on clients where the marketing function falls on the “service provider” side of the equation, guess what kind of work you’re likely to be doing? One of the key objectives for agencies in the 21 century is to do more “magic,” not just “logic.” Magic is the high-value ideation, insights, and problem solving that most agencies do well, but do a poor job of getting paid for it (or worse, give it away). “Magic” work includes helping organizations think though all the dimensions of marketing – from the way the product is named and distributed to how customer service is delivered. When agencies instead default straight to producing advertising, they are largely engaging in the “logic” side of the business – execution and implementation. “Logic” work, while it must be done well, carries a lower perceived value and keeps agencies mired in the advertising factory model where “marketing” mostly means “advertising.” Marketing needs a new OS So how can marketing regain its rightful place? For starters, we can stop using the word “marketing” to describe just one aspect of the marketing mix. If we mean promotion, let’s say promotion, publicity, or even (perish the thought) advertising. This may seem like a small point, but behavioral psychologists have long taught that language is the precursor to behavior change. Change your mind, change your language, change your behavior – in that order. Then let’s hire and develop people within agencies and marketing organizations who actually know marketing – not just promotion. This isn’t to stay that we don’t still need specialists; writers, designers, developers, project managers and the other functions that help bring ideas to life. But at the planning and strategic level, we need holistic marketing problem solvers who are just as like to recommend a product improvement as they are an ad campaign. To help recast the marketing function within our organizations, we need to practice more “design thinking” (as practiced by firms like IDEO) and less “advertising” thinking. And as paid media advertising continues to decline in both volume and effectiveness, redefining “marketing” isn’t Marketing has come to be defined by just one of its four P’s: promotion. Advertising agencies and client marketing organizations alike have been marginalized in the business world by allowing themselves to be boxed into just the business of promoting and advertising the product, rather than marketing it.

PRODUCT TYPES

Type Private Sector Public Sector NPO Sector Physical Goods TV Drivers License Goodwill Clothing Services Haircut HIV Testing Grief Counseling Events Baseball Game Fourth of July Parade Apple Blossom Festival People Ellen Governor Mike Utley Places Tuscany Ohme Gardens Bruce Hotel Organizations Microsoft IRS YMCA Information CNN Federal Trade Commission Wenatchee Outdoors.org Ideas Retirement Saving Exercise Buy Local

Nena Howell Freelance Marketing Specialist

509.668.4166 [email protected]

PRODUCT - ON TARGET



Social Marketing Planning Worksheets

From Appendix A:

Social Marketing: Influencing Behaviors for Good

Philip Kotler and Nancy R. Lee

SAGE 2008

1

STEP 1: PROVIDE BACKGROUND, PURPOSE AND FOCUS FOR PLAN

1.1 Summarize key background information leading to the development of this plan.(e.g., Increased Rates of Teen Pregnancies, Decreased Salmon Populations)

1.2 What is the campaign purpose, the intended impact (benefit)? (e.g., Reduced Teen Pregnancies, Protection of Salmon Habitats)

1.3 What is the campaign focus? (e.g., Teen Abstinence, Residential Gardening Practices)

REFER TO CHAPTER 5 FOR DETAILED DESCRIPTIONS OF PROCESS

2

STEP 2: CONDUCT A SITUATION ANALYSIS

Internal Factors

2.1 What internal strengths will your plan maximize?(e.g., resources, expertise, management support, internal publics, current alliances andpartnerships, distribution channels)

2.2 What internal weaknesses will your plan minimize?(e.g., resources, expertise, management support, internal publics, current alliances andpartnerships, distribution channels)

External Forces

2.3 What external opportunities will your plan take advantage of?(e.g., external publics and cultural, technological, demographic, natural, economic, andpolitical/legal forces)

2.4 What external threats will you plan prepare for?(e.g., external publics and cultural, technological, demographic, natural, economic, andpolitical/legal forces)

Prior and Similar Efforts

2.5 What findings from prior and similar efforts are noteworthy, those of yours or others?


3

STEP 3: SELECT TARGET AUDIENCES

3.1 Describe the primary target audiences for your program/campaign in terms of size,problem incidence and severity, and relevant variables, including demographics,psychographics, geographics, behaviors, and/or stages of change:

3.2 If you have additional important target audiences that you will need to influence as well,describe them here.


4

STEP 4: SET OBJECTIVES AND GOALS

Objectives

4.1 Behavior Objective:What, very specifically, do you want to influence your target audience to do as a result ofthis campaign or project?

4.2 Knowledge Objective:Is there anything you need them to know, in order to act?

4.3 Belief Objective:Is there anything you need them to believe, in order to act?

Goals

4.4 What quantifiable, measurable goals are you targeting? Ideally, these are stated in termsof behavior change. Other potential targeted goals are ones for campaign awareness,recall and/or response, and changes in knowledge, belief, or behavior intent levels.


5

STEP 5: ANALYZE TARGET AUDIENCES AND THE COMPETITION

Barriers

5.1 Make a list of barriers your audience may have to adopting the desired behavior. Thesemay be physical, psychological, skills, knowledge, awareness, attitudes, and so on.

Benefits

5.2 What are the key benefits your target audience will be motivated by?

Competition

5.3 What are the major competing alternative behaviors?

5.4 What benefits do your audiences associate with these behaviors?

5.5 What costs do your audiences associate with these behaviors?


6

STEP 6: CRAFTING A DESIRED POSITIONING

Positioning Statement

6.1 Write a statement similar to the following, filling in the blanks.

“We want [TARGET AUDIENCE] to see [DESIRED BEHAVIOR] as [DESCRIPTIVEPHRASE] and as more important and beneficial than [COMPETITION].”


7

STEP 7: DEVELOP MARKETING STRATEGIES

Product: Design the Product Platform

7.1.1 What is the core product, the major perceived benefit, your target audience wants fromperforming the behavior that you will highlight? (Choose one or a few from thoseidentified in 5.2)

7.1.2 What is the actual product, the features/name for the desired behavior?(Refer back to your behavior objective in 3.1 and refine/finalize here.)

Relative to the augmented product (tangible objects and services):

7.1.3 Are there any new tangible objects that will be included in program and campaignefforts?

7.1.4 Are there any improvements that need to be made to existing tangible objects?

7.1.5 Are there any new services that will be included in program and campaign efforts?

7.1.6 Are there any improvements that need to be made to existing services?


8

7.2 Price: Fees & Monetary Incentives & Disincentives

7.2.1 If you will be including tangible objects and services in your campaign, what, if anything,will the target audience have to pay for them?

7.2.2 Will there be any monetary incentives for target markets (e.g., coupons, rebates)?

7.2.3 Will there be any monetary disincentives you will highlight (e.g., fines, increased taxes)?

7.2.4 Will you use any nonmonetary incentives (e.g., recognition, reward)?

7.2.5 Will you use any nonmonetary disincentives (e.g., negative visibility)?


9

7.3 Place: Making Access Convenient

As you determine each of the following, look for ways to make locations closer and moreappealing, to extend hours, and to be there at the point of decision making.

7.3.1 Where will you encourage and support your target audience to perform the desiredbehavior and when?

7.3.2 Where and when will the target market acquire any related tangible objects?

7.3.3 Where and when will the target market acquire any associated services?

7.3.4 Are there any groups or individuals in the distribution channel that you will target tosupport efforts?


10

7.4 PROMOTION: What Will You Say, Who Will Say It, How, And Where?

Messages

7.4.1 What key messages do you want your campaign to communicate to target audiences?

Messengers

7.4.2 Who will deliver the messages and/or be the perceived sponsor?

Creative Strategy

7.4.3 Summarize, describe, or highlight elements such as logo, taglines, copy, visuals, colors,script, actors, scenes, and sounds in broadcast media.

Communication Channels

7.4.4 What communication channels will you use?

REFER TO CHAPTERS 13 AND 14 FOR DETAILED DESCRIPTIONS OF PROCESS

11

STEP 8: DEVELOP A PLAN FOR EVALUATION AND MONITORING

8.1 What is the purpose of this evaluation? Why are you doing it?

8.2 Who is the evaluation being conducted for? Who will you present it to?

8.3 What goals from Step 4 will be measured?

8.4 What techniques and methodologies will be used to conduct these measures?

8.5 When will these measurements be taken?

8.6 How will measurements be reported and to whom?


12

STEP 9: DETERMINE BUDGETS AND FIND FUNDING SOURCES

9.1 What costs will be associated with product-related strategies?

9.2 What costs will be associated with price-related strategies?

9.3 What costs will be associated with place-related strategies?

9.4 What costs will be associated with promotion-related strategies?

9.5 What costs will be associated with evaluation-related strategies?

9.6 If costs exceed currently available funds, what potential additional funding sources canbe explored?


13

STEP 10: COMPLETE AN IMPLEMENTATION PLAN

10.1 Will there be phases to the campaign? How will they be organized (i.e., by market,objectives, activities)?

10.2 For each phase, what will be done, who will be responsible, when will it be done, and forhow much?


14

WORKSHEET FOR USING THE 4 PS TO

OVERCOME BARRIERS AND INCREASE BENEFITS

Desired Behavior:

Target Audience:

PERCEIVEDBARRIERS TODESIREDBEHAVIORS

STRATEGIES USING THE 4PS

TO OVERCOME BARRIERS AND INCREASE BENEFITS

PRODUCT PRICE PLACE PROMOTION

(Including use of prompts,commitments, recognition, norms)

Example: To quittingsmoking, a barrierwould be “I’ve triedand it’s too hard.”

Quit Line Milestone

Recognition

24 hour a day emailcounselor

Physician mentions QuitLine

CASE EXAMPLE: FARMERS MARKET COUPONS FOR WIC CLIENTS

USING THE 4PS TO OVERCOME BARRIERSBARRIERS PRODUCT PRICE PLACE PROMOTION

I don’t know where to park at themarket.

Print places to park onmap on new couponfolder.

Have staff visit market socan describe parking

I’m embarrassed around othershoppers when using coupons andvendors seem a little irritated with thecoupons.

Use mystery shoppers(even WIC staff) toevaluate service.

Consider feasibilityof a “scan” card vs.coupons.

It’s difficult to find signs that qualifyfarmers for WIC coupons. Sometimesthey are below the tables and can’t beseen.

Provide “poles” forFarmers to use to displaya sign that can be seenabove the crowds.

Have WIC signs be the 5 ADay sign instead of the“WIC coupons acceptedhere.”

I’m concerned with not gettingchange back from $2 coupons. It’s

Reduce size ofcoupons to $1

15

such a waste versus $2.I lose the checks or forget where I putthem.

Create a folder forchecks, as opposed toloose, similar to airlineticket folder.

I’m afraid of what WIC counselorswill think if I decline the coupons.

Offer clients withhesitation orbarriers “a halfpack” of coupons.

I don’t know what some of the fruitsand vegetables are that I saw last time(i.e. kohlrabi)

Offer cooking classesand provide recipes

Use dedicated white boardin clinic to describe what’sin season.

I don’t know how to cook some of thefruits and vegetables.

Offer cooking classesand provide recipes.

I don’t have transportation. Organize carpools fromthe clinic office.

I don’t really like vegetables. Offer cooking classesand recipes.

Offer the “halfpack”

I don’t know where the market is. Print places to park onmap on new couponfolder.

Have staff visit the marketso can describe where topark.

I work and can’t get there during theweek and on weekends I’m too busy.

Recruit interestedfarmers to deliver itemsto the clinic.

I don’t know what’s in season so don’tknow what I’ll find at the market.

Use dedicated white boardin clinic to describe what’sin season.

I’m concerned with returning checksthat I didn’t use, but I feel badly justkeeping them when someone elsecould use them.

Allow to returnunused checks, noquestions asked.

I can’t use all these checks in one visitand then it takes too much to get backto the market.

Allow return ofunused checks, noquestions

Recruit interestedfarmers to deliver selectitems to clinic.

16

COMMUNICATION CHANNELS

FOR NON-PROFITS ADVERTISING Broadcast: 1. Television 2. Radio 3. Internet Print: 1. Newspaper 2. Magazine 3. Area Directories (Chamber, Phonebook, etc.) Ads on the Email, Internet (and photos, audio and videos) Facebook, Twitter, LinkedIn, etc. Ads on tickets and receipts Ads at theaters Outdoors -‐ Billboards, road signs, busboards, bus shelters, taxi, vinyl wrap cars and buses, sports events, airports PUBLIC RELATIONS Print stories (and photos, audio and videos) on television and radio Articles (text and photos) in newspaper and magazines SMART PHONE Mobile texting notifications, QR codes SPECIAL EVENTS Community meetings, Fairs, Exhibits DIRECT MARKETING Mail, Email, Catalogs PRINTED MATERIAL Brochures, Booklets Newsletters Flyers, Envelopes Calendars, Posters Door hangers, Stickers PROMOTIONAL ITEMS Clothing, balloons, buttons, key chains, water bottles Pens, tote bags, notepads, magnets PERSONAL COMMUNICATION Face-‐to-‐face and presentations Word of mouth Internet sharing POPULAR MEDIA Public Art, songs, script in movie, TV, etc.



THE ELEVATOR PITCH FOR NON-PROFITS

MAKE THEM BELIEVE Ideally, you want the listeners to take on your cause as if it is their own. Make them believe. You should make them curious and motivate them to donate, get involved or think about advocating for your organization. THE FRAMEWORK 1. Think short -‐ 30 seconds and no longer than 1 to 2 minutes. Time it. Practice it. Get feedback from your donors and board. 2. Script it. Once constructed and effective, keep it. Don’t wing it. 3. Deliver it with passion and excitement. It should feel natural and conversational. Check that your non-‐verbal body language and tone matches your message. The listener should feel that you’re not just an employee, but a believer. 4. Videotape yourself. Practice it. 5. Improve your script over time via input. 6. Teach your team. It is important that everyone involved in your non-‐profit has a sense for the pitch. It will add focus and continuity to your team.

THE PITCH STORY: Include a story about the people or cause. Put a true face to your cause. Examples: When I started at ___I was working at a flat run on adrenaline, making such an impact with the teens... We’ve had one mother… One student has… I came across… QUESTION: Use a question(s) as well as statements. This shifts the listener into the active mode of working for your cause. Examples: What do you want the Wenatchee Valley to look like in 50 years?

WHY: Why should your listener support your organization? Examples: I’ve seen so many children’s lives changed; I get to make a difference; I’m learning new things everyday; I get to see the most rewarding looks and smiles on… _______________________________________________________________________________________________ _______________________________________________________________________________________________ WHAT: What is your organization focused on and trying to do? Examples: We help students graduate from college; we prevent childhood obesity; we help people cope with grief; we help the abused and neglected; we help people have a decent place to live. _______________________________________________________________________________________________ _______________________________________________________________________________________________ HOW: How does your organization accomplish its mission? Examples: by providing job training to homeless individuals _______________________________________________________________________________________________ _______________________________________________________________________________________________ ASK: Ask if they want to learn more, or donate, or have ideas, or want to volunteer, or want more information about the cause. _______________________________________________________________________________________________ _______________________________________________________________________________________________



KEYWORDS LIST

FOR NON-PROFITS

KEYWORDS 1.

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Nena Howell Freelance Marketing

Specialist 509.668.4166

[email protected]

MARKETING RESOURCES

FOR NON-PROFITS

PROGRAMS / BOOKS Non-Profit Conferences Schedule

2013 -‐ socialbrite.org (Site: www.socialbrite.org/2013/01/02/2013-‐nonprofit-‐conferences/) 2014 – blueearth.org holds annual conference, Collabrations for Cause. Photographers, NGOs & NPOs and communications professionals discuss cause-‐driven storytelling.

Program Strategic Marketing in the Public Sector, Evans School of Public Affairs, University of Washington, www.evans.uw.edu, 206.543.4900

Books Marketing in the Public Sector, Nancy Lee and Philip Kotler Strategic Marketing for Non-‐Profit Organizations, Philip Kotler and Alan Andreasen The Nonprofit Marketing Guide, Kivi Leroux Miller

ROYALTY FREE PHOTOS 1. Your organization’s real-‐time Iphone videos and pictures 2. google.com 3. iStock.com 4. shutterstock.com 5. freedigitalphotos.net 6. gettyimages.com SMART PHONE PHOTOSHARING 1. Snapseed 2. Instagram PHOTOGRAPHERS & THEIR ORGANIZATIONS 1. BlueEarth.org, Bart Cannon, 206.569.8754, cause-‐driven photojournalists 2. Shane Wilder, Skipow Visuals, skipow.com, 509.741.7421 3. John Marshall, johnmarshallphoto.com, nature photography, 509.665.6451 4. Michael Bendtsen, owner McGlinn’s, 509.670.9050, candidate for cause-‐driven photos 5. Josh Tarr, owner American Shoe Shop, 509.741.0408, candidate for cause-‐driven photos EMAIL CAMPAIGNS 1. Constant Contact, constantcontact.com 2. Mail Chimp, mailchimp.com VIDEO PRODUCTION 1. Charlie Voorhis, Wenatchee, voortexproductions.com, 509.885.7564 2. North 40 Video Productions, Wenatchee, north40productions.com, 509.888.2212 3. Sadis Filmworks, Seattle, sadisfilmworks.com, 206.728.1610 4. Take One Creative, Boulder, takeonecreative.com, 413.429.7566 WEBSITE DEVELOPERS 1. Apt Design, aptdesignonline.com, Wenatchee, 509.393.8881 2. Pyramid Communications, pyramidcommunications.com, Seattle, 206.374.7788 3. Lars Ringsrud, larsringsrud.com, Wenatchee, 206.406.9190 SOCIAL MEDIA TRACKING / ANALYSIS 1. Googleanalytics.com, measures website page visit success 2. Hootsuite.com, tracks and measures social media 3. QR Code site generators

Documents

Marketing Should Be a Profit Center · Marketing Should Be a Profit Center, Not a Cost Center (By Tim Williams, posted on Linkedin, February 19, 2013) One of the deep-seated beliefs