sowo 883 marketing and fundraising introductory lecture 1a walter c. farrell, jr. professor of...
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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
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
Walter C. Farrell, Jr.
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
Walter C. Farrell, Jr.
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
Walter C. Farrell, Jr.
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
Walter C. Farrell, Jr.
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
Walter C. Farrell, Jr.
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)
Walter C. Farrell, Jr.
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)
Walter C. Farrell, Jr.
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?”
Walter C. Farrell, Jr.
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
Walter C. Farrell, Jr.
Successful Marketing Slogans?”Where’s the Beef?”
“Migraines are Where Excedrin Excels”
“A Mind is a Terrible Thing to Waste” (UNCF)
???
Walter C. Farrell, Jr.
How Do You Listen To The World Around You?
Focus Groups
Surveys
Analyze Web and Email
Monitoring Social Conversations
???
Walter C. Farrell, Jr.
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
Walter C. Farrell, Jr.
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
Walter C. Farrell, Jr.
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
Walter C. Farrell, Jr.
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
Walter C. Farrell, Jr.
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)
Walter C. Farrell, Jr.
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??
Walter C. Farrell, Jr.
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
Walter C. Farrell, Jr.
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
Walter C. Farrell, Jr.
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
Walter C. Farrell, Jr.
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
Walter C. Farrell, Jr.
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?