sowo 883 marketing and fundraising introductory lecture 1a walter c. farrell, jr. professor of...

SOWO 883 Marketing and Fundraising Introductory

Lecture 1A

Walter C. Farrell, Jr.Professor of Community Management & Policy Practice

School of Social WorkUniversity of North Carolina at Chapel HillChapel Hill, North Carolina 27599-3440

[email protected]

Walter C. Farrell, Jr.

Future Nonprofit Challenges According to the IRS, there are more than 1 million

nonprofits in the U.S

Non profits {501 [c] (3) organizations} employ 20 million people, 7.2% of the U.S. economy

This sector cares for our children, the aging, the poor and disadvantaged, the sick and dying, improves neighborhoods,, and preserves culture

This is also the sector with the most limited resources!

This sector faces 3 emerging challenges


Challenge #1: Finding The Next Generation Of Leaders

It is imperative to have good leadership at the top

Currently, there is a shortage of leaders in the pipeline with the requisite skills to sustain many of the existing Nonprofits

Leaders need to be accountable for talent development, succession planning, diversity, and they should be fairly compensated


Challenge#2 Creative Concepts For Funding

Creative Capitalism Develop partnerships with the corporate sector to

promote the idea that business can and should benefit society

Partnership between Microsoft and the Boys and Girls Clubs of America—Club Tech Initiative

Building relationships with individual donors and Foundations

Make a point to diversify funding streams


Challenge #3: Coordinating Resources

The Nonprofits of the future will have to engage in more Collaborative Efforts

Nonprofits will have to work to reduce redundancy in their service areas

This can involve mergers, consolidation of back office functions, or pursuing new service lines depending on the changes in the environment


Tamp down on misconduct and maximize efficiency to ensure public trust

Going beyond your walls to share what you have learned with outside constituencies

Pool expertise with other Nonprofits in your service area

Document your Nonprofit’s contributions beyond the body count

Challenge #4: Plan For The Future


Examples Of Nonprofits Cultural Organizations

Religious Institutions

Social Welfare Agencies/Organizations

Professional Associations

Charities, Disaster Relief Agencies

Colleges and Universities, K-12 Education

Health Organizations, especially AIDS

Organizations

Government and Non-Government Agencies

(NGOs)


What Is Marketing? “The process of planning & executing the

conception, pricing, promotion, & distribution of ideas, goods, &/or services to create EXCHANGES that satisfy individual & organizational objectives.”

“…(C)reating those programs or services, from the outset, and delivering them to your participants and supporters”

Exchanging offerings that have value (American Marketing Association)


What Is Public Relations (PR)?

An organization’s attempt to create a favorable public opinion for itself

Relations with public/prospective funders

Standing out from the crowd

Do “Marketing and PR” support “Fundraising?”

Can “Marketing and PR” hurt “Fundraising?”


Elements Of A Marketing Plan? Identify organization mission/needs/goals

Environmental analysis—Know Your Competition

Audience and Segmentation

Messaging (Testing Slogans)

Marketing Tactics: Short- and Long-Term Steps, Measure Achievement of Goals/Objectives

Budget and Staffing


Successful Marketing Slogans?”Where’s the Beef?”

“Migraines are Where Excedrin Excels”

“A Mind is a Terrible Thing to Waste” (UNCF)

???


How Do You Listen To The World Around You?

Focus Groups

Surveys

Analyze Web and Email

Monitoring Social Conversations

???


Major Tasks of Marketing/PR

Market Analysis

Segmentation and Targeting

Positioning (e.g., “Leading-Teaching-Caring”-- UNC

Hospitals)

Branding: What is FEMA’s current brand?

Service Configuration

Pricing

Distribution

Communication with stakeholders—Internal and

External


The Marketing MixThe 5 P’s in Marketing

ProductBehavior to be changed

PlaceLocation of the behavior change

Examples?

PriceCost of service/product

PromotionMessage and delivery

PolicyPolicies, rules, requirements that impede implementation of service/product

Apply to Your Nonprofit


Satisfying Highly Diverse External Markets and Publics

For profit-making companies, consistency often exists in what is desired by shareholders, creditors, employees, suppliers, distributors, and customers

For nonprofits, donors, volunteers, employees, collaborating agencies, and customers may want very different things

Often requires selling many different offerings at the same time

Tends to be difficult and expensive to research wants and needs


Setting Goals and Evaluating Performance

Cannot assess results based primarily on dollar figures -- “achieving social welfare outcomes” often most important

More sales are not always better -- often have to “de-market”

Market share may or may not matter

Requires consensus-building and ample (but expensive) information-gathering


Orchestrating “Internal Marketing” Must sell “customer orientation” or a

“marketing mind-set” to one’s own employees

May have to overcome the “free-rider problem”

Helps to research “internal” customers, finding out what appeals they are sensitive to (e.g., solidarity, meeting an external challenge, incentives)


Delivering Product Quality That Pleases Both Employees And Customers

What professors, artists, doctors, religious leaders, and other nonprofit service providers think is high quality may not be perceived that way by customers

Need ample amounts of customer education

Need patience

Hurricane Katrina??


Keeping Product Quality High With Limited R & D

Tight budgets often prevent investment in self-renewal

The product often cannot be modified to make it more customer-pleasing


Setting “Fair” Prices

Recognize that monetary price is only a part of what customers are “paying;” there are time, effort, and energy that have opportunity costs associated with them

Communicating about price can be awkward and confusing to customers

Pricing “sponsorships” is very tricky


Fundraising

Helps to look at it with a marketing perspective (i.e., as an exchange, as relationship marketing, as direct marketing, as an ad agency)

Differentiate your approach


Using Publicity Effectively

Paying for advertising and promotion by a nonprofit can cause problems and may not work well WHY?

Seeking credibility and accurate communication

Understand the information-seeking of best customers

Develop friends in the media


Stimulating Word-of-Mouth Advertising

Create customer “delight” whenever possible

Provide incentives to “pass the word”

Any customer “delight” in the responses to “Hurricane Katrina?

Why or why not?

sowo 883 marketing and fundraising introductory lecture 1a walter c. farrell, jr. professor of...

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