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Nonprofit MarketingNonprofit Nonprofit MarketingMarketing
Dr. ChunDr. Chun--Tuan Debbie ChangTuan Debbie Chang
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.
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.
Introduction (Cont.)
Chief Executive or General Manager
Operations
Marketing
Government Relations
Management Control
Finance
Purchasing
Human Resources
Development (Fundraising)
Dimensions of Nonprofit Marketing
• Resource Attraction => need to attract donations of time, funds and gifts-in-kind.
Vo lun tee rs
Tim e
D on o rsO rg an ization a l
D on o rsInd iv idu al
Fu nd s
A ttra c tionR eso urce
Re so urc e Attr ac tion F un ction
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
Dimensions of Nonprofit Marketing
• Important because:
– it provides services that are not performed by the business sector.
Importance of the Nonprofit Sector • Important because:
– it provides services that are not performed by the business sector.
• Boys and Girls Clubs of Americawww.bgca.org
• Nonprofit universities
• Charities
• Hospitals
• Etc
Importance of the Nonprofit Sector• Important because:
– it allows for citizens to participate in their communities collectively.
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
Importance of the Nonprofit Sector• Important because:
– it involves a lot of money.• U.S. individuals, estates,
foundations and corporations gave an estimated $240.72 billion to charitable causes in 2003.
Importance of the Nonprofit Sector
Table 1.1U.S. Charitable Giving in 2003
Segment Giving Level($ billions) % Change From 2002 % of Total
Individuals 179.36 +2.5 74.5Bequests 21.60 +12.8 8.2Foundations 26.30 -2.5 10.9Corporations 13.46 +4.2 5.6
$240.72 99.2%
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.• 2004 - England and Wales = 166,129
charities in with revenues of £34.567 billion.
• Scotland = 27,000 charities• Northern Ireland = 7,500 charities • Australia (2000) about 380,000 nonprofits
Key Concept: Exchange
FirmClient
Fees, donations, time
Services, tax benefits,“warm glow,” prestige,fulfillment of duty, etc.
Marketing focus
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?
Market Segmentation• Segmenting:
– Grouping with needs, wants, motivations, values, behavior, lifestyles
Charity giving personality traits, incomeage, donation frequency
25-34 Below 24
60-70
Target market
45-60
Targeting Messages to Demographic Groups
DEMOGRA PHICS TO TARGET
FUNDRAISING FOCUS
SENSE OF COM-MUNITY
CHARITIES ARE MORE EFFECTIVE THAN GOV’T
SENSE OF DUTY
HELPED YOU IN TIMES OF NEED
TAX BENEFITS
RELIGIOUS REASONS
LOW INCOME
X X
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
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)
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)
Strategy Evaluation
For-profit success measures– Profit– Customers
• Nonprofit success measures– Service level + quality
+ access– Clients + donors +
volunteers + trustees
Communication Tools• Explicit
communications– Annual reports– Newsletters– Press releases– Brochures– Direct mail– Media advertising– Telemarketing– Special events
• Implicit communications– Pricing– Products– Distribution
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
How Web-Savvy Are Nonprofits?
Percentage of nonprofits Use email 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 email or web access, but are more likely to use the web for fundraising
Ref. Zimmer 2002
Maslow’s Pyramid
NPO Branding
What’s the first thing that comes to mind when I say ___?
•Helps children around world
•UN•Christmas
Cards•Celebrities
• First on scene• Assists in
Disaster The Red Cross Symbol
• Global• Blood Drives• Medical aid• On the News• War• Tents and
blankets
Dimensions of Nonprofit Marketing
BecomingKnown
FavorableImage
Differentiation
1st Step
2nd Step
3rd Step
Positioning Tasks
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.
Marketing Mix• Product
– 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
Promotion: Messages Types
Promote Refute
Abstract “Giving is vital for society”
“Your gift might be small, but you’re doing your part”*
Concrete
“Giving makes you feel good”*
“Your gift can achieve X, even if it’s as small as Y”
*Found to be most effective
Ref.: Clary
Advertising Appeals of NPOs
• Rational appeals• Emotional appeals• Fear appeals• Humor appeals• Moral appeals
"Smoking isn't just suicide. It's murder ."
Foot-in-the-door Techniques
• Every little bit helps. – Even a penny will help.– Even a cent will help.– Even a dollar will help.
Marketing Research
• Define research objectives• Do preliminary research• Design the formal research• Do fieldwork• Analyze the data
Donation Behavior in Taiwan
0%
10%
20%
30%
40%
50%
60%
70%
80%
2004(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%
Total North Middle South Male Female Age 20-29 Age 30-39 Age 40-55
Affiliation of Charitable Donation
0%
10%
20%
30%
40%
50%
60%
70%
80%
Lighted-up Future Perspective forLife (n=394)
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%
Feelwarm
Helppeoplein need
Helpchildre
n
Credible
activity
Makegooduse of
Stimulate
donatio
Easyaccess
financial
transpa
Generate
sympat
%=total of %=total of ””AgreeAgree””+Strongly +Strongly AgreeAgree””
