marketing - amazon web services€¦ · customer relationship marketing • recognises lifetime...
TRANSCRIPT
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Cranfield Trust
Introduction to
Marketing
Presenter: Janet Cole
JMC Management Consultancy
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Marketing for Charities
•Who?
•What?
•When?
•How?
•Why?
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• Who?
People and organizations that your
communication needs to reach
Target Audience
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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
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Your
Charity
Stakeholders for Your Charity
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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
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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
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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
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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
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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
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Acquisition / Retention of
profitable donors ?
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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
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AQUIRE
New customers
Phases of CRM
Kalakota & Robinson (1999)
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What ?
What is your Brand/ Product?
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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 ?
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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?
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Charity
Brands –
How to
achieve
cut
through?
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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?
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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
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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
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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?
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What ?
• Why should benefactors give funds to your
charity?
Define your ‘Real’ Product
• USP’s (Unique Selling Proposition)
• Motivational factors
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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
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When?
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When is the optimal time to fundraise?
• Seasonality
• Day of week
• Time of day
• Campaign links
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How?
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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
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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
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Competition?
Co-operation?
Co-opitition ?
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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
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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
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Public Relations
(PR)
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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)
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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)
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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
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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
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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
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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
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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
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Content, Content, Content!!
What to write about?
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Why?
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Department-store magnate
John Wanamaker observed,
“I know half my advertising
dollars are wasted. I just don’t
know which half.”
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Why?
Every Marketing Activity needs to be
• Tracked
• Measured
“How did you hear about my charity?”
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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