Marketing

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Who am I?

Michael Harrison DipM;

FCIM; FICM

Senior Warden

Worshipful Company of

Marketors

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My Experience

Head of Commercial Contracts – Hawker

Siddeley Dynamics

Group Director – IT Group (Nat West)

Director/Founder – British Telecom Mobile

Communications

President – Raytheon Corp. Japan & Pacific

European President – L-3 Network Security

Etc. etc. etc.!!!

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My RELEVANT Experience!

Past Chairman – College of Osteopaths

(charity)

Board Member and Trustee – Institute for Food,

Brain and Behaviour (charity)

Trustee – Marketors’ Trust

Advisor to several Charities and Trusts

Past Chairman, Outreach – WCM

Senior Warden – WCM

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RELEVANT information

This Conference is about:

Fundraising

in a Small Charity

I promise NOT to assume that you

have vast Marketing resources!

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RELEVANT information

So why is Marketing relevant – in fact

vital – to Charity Fundraising?

I will do my best to show you!

Without it you will be at a massive

disadvantage against “the rest”.

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CIM Definition

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“The management process responsible for

anticipating, identifying and satisfying customer

requirements profitably”

Chartered Institute of Marketing

Definition for Charity Marketing

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Charity Marketing is the management

process of anticipating, identifying and

satisfying clients’, sponsors’ and

donors’ wants and needs, with an

exchange of value that mutually satisfies

all parties.

Peter Rees

Marketing Planning - A Guide for Charities and

Not-for-profit Organisations 2012

Role of Marketing

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So what?

Where does Marketing affect Fundraising?

- Everywhere!

Marketing is as important Internally as Externally

Whatever you say outside must be agreed inside

- and communicated BEFORE you go external

Expectation matching Experience

Role of Marketing

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Expectation matching/bettering

Experience

If you create an expectation that is NOT matched by

subsequent experience – disaster

However, if you deliver an experience that is greater

than the expectation – you will have a great deal of

free and very positive publicity!

Marketing Orientation

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An organisation-wide approach

• Puts Sponsor and Donor wants and needs first

• A focus on value exchange

• Adding things that add value to and are valued by the

Sponsors & Donors

• A focus on delighting both groups

• Everyone in the organisation understands their role in

serving Sponsors & Donors

• No exceptions – MUST all “sing from the same hymn-

sheet”

Marketing Orientation

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Are you “easy to do business with”?

Does your Charity’s name and approach match its

objectives – do you “do what it says on the tin”? Are you

SURE?

Have you checked this externally or are you “totally

satisfied with your own opinions of yourselves”?!!

Rule One: you MUST communicate in the language of your

targets. Not your internal jargon.

Marketing Orientation

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NEVER, NEVER, NEVER

USE ACRONYMS OR

ABREVIATIONS I have a “TLA” for that!

Marketing Orientation

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You must communicate in THEIR language

It is not clever to “be seen to be trying to be superior” by

using your jargon

All you do is make it difficult for your target audience to

understand what you are doing and what you want

Guess what – they will not bother! So you will not win.

Case Study - Name

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Natural Justice

Charity formed by a probation officer

“Hanging and Flogging” brigade? “Eye for an eye” etc.?

No – absolutely nothing to do with that at all!

Case Study - Name

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Formed as a result of observations showing that Anti-Social

Behaviour in Prisons was affected by diet

Major scientific double-blind placebo trial showed that the

dietary supplements reduced Anti-Social Behaviour by

well over 30% (in some trials over 40%)

But no-one knew about it – and the Charity was getting

nowhere

Case Study - Name

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Now:

The Institute for

Food, Brain and

Behaviour

Case Study - Name

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What has that done?

Removes any “doubts” about what we do!

Enables us to be regarded as “serious players”

Trusts now recognise us – and contribute

Top Scientists have joined our Science Advisory Board

By this Re-Positioning we are acceptable to far more – and

far larger - Trusts

Similarly it is easier to get new Trustees!

What do you want to achieve?

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How much money/resource/buildings/etc?

What FOR – precisely? Not “to augment our funds” – I want

to give where I know the money will be used, not stored!

In what defined timescale?

Have you got a “wish list” that you can amend to different

target donors?

Do you have an “elevator pitch” for all your Trustees and

Staff – for when you find yourself next to the one person

you have tried to get to for months or years.

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Situation – Where are we today?

Objectives – Where are we going?

Strategy – How will we get there?

Tactics – Which way is best?

Actions – Who does what, when?

Control – How do we ensure safe arrival?

SOSTAC© (I hate acronyms!)

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Macro Factors – Affect Everyone

Socio-Cultural

Technological

Economic

Environmental

Political

Legal

Ethical

- You (probably) cannot

change them

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Affect (your) Charity Sector

Competitive

Rivalry

Money Clients

Threat of New

Entrants

Substitute

Offerings

Donors

Resources

‘Time’

Suppliers, Donors

Volunteers & Sponsors

‘Customers’

Donors & Sponsors

Porter’s 5 Forces Model

Adapted by P. Rees

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SMART Objectives

• Specific – stated in precise terms for

everything important

• Measurable – numerical and quantifiable

• Achievable – if it cannot be achieved there is little point in setting it

• Realistic – Needs to make sense within the context of the charity

• Timely – there should be a point defined by when each objective should be achieved

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Beware of outcomes!

“The good thing about NOT having a quantified plan or proposition is that failure comes as a complete surprise and is not preceded by a long period of worry and depression!”

Prof. Malcolm McDonald

Emeritus Professor of Marketing, Cranfield University

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Four Important Questions - 1

How is our Charity better and different from its

‘competition’, in ways that are valued by and add value to

our Sponsors and Donors, that can’t easily be copied?

This is THE most important question

Marketers have to answer!

Otherwise how do you get money?

- someone else will get there first!

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Four Important Questions - 2

What ‘business’ are we in?

Have we defined this so precisely that ALL staff, ALL

volunteers and “Associates” – and in particular our target

Sponsors and Donors – all understand and can articulate it

without need to refer to some in-house “manual” (or worse

still, the Chairman)!

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Four Important Questions - 3

What resources do we have and do we need to achieve the

answer to Question1?

Physical resources?

Assets?

Money?

Knowledge and Expertise?

This also follows from our Objectives – what do we need

to achieve these?

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Four Important Questions - 4

Which Product/Service/Offering –

Markets will we be in?

Existing New

Existing

New

Market

penetration

Product

development

Market

development

Diversification

Markets

The Ansoff

Matrix

Products (Services & Offerings)

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Segmentation –

Finding Financial Sources

Segmentation is the process of identifying

‘GROUPS’ with common wants and needs &

common values

• Geo-demographic

• Socio-economic

• Needs based

Then create an ‘Offer’ for each group. The

definition of the offer is described in Tactics

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Which way is best ….?

Situation – Where are we today?

Objectives – Where are we going?

Strategy – How will we get there?

Tactics – Which way is best? Tactics define the Offerings that we create to satisfy the

wants and needs of our Target Segments and follow our

Strategy to achieve our Objectives

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The Marketing Mix – 8P’s

The (8P) Marketing Mix defines:

• The totality of the ‘Offering’ that you

develop to satisfy the wants and needs

of potential Donors

• In each Product–Market of the

Ansoff Matrix

• For each Target Segment that you

choose to address

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Targeting (Segments) Option 1

The

whole

Market

wants

and

values

the

same

thing

• The whole market (of

Donors) wants and

values the same thing.

• There is therefore

1 Marketing Mix for all

Donors.

This is called Undifferentiated Targeting

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Targeting (Segments) Option 2

• There are several

segments

• You will serve them all

• There is therefore

a different Marketing

Mix for each segment

of Donors.

This is called Differentiated Targeting

Segment 1

Segment 4

Segment 3

Segment 2

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Targeting (Segments) Option 3

• There are several

segments

• You will only serve

some of them

• There is a different

Marketing Mix for each

chosen segment of

Donors.

This is called Concentrated Targeting

Segment 1

Segment 4

Segment 3

Segment 2

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Example: Donors and Sponsors

‘Public’

Wills etc

High Net

Worth

Corporate and Trusts

Alumni

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8P’s in Detail

Purpose:

What you can and can’t do. How you can do it. How you are governed.

Whom you support. Your ‘Mission’.

Product Service Offering:

What you actually provide? Physical, service based, emotional,

reputational, satisfaction, ideological. This is the most important ‘P’ to

deliver value and satisfy the wants and needs of Donors

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8P’s in Detail

Price Proposition:

Free does not always mean free to Clients! What does the Sponsor,

Donor or Volunteer get for their ‘money’?

Promotion:

MESSAGE – What do you wish to say?

MARKET – To whom do you wish to say it?

METHOD – How will you deliver it?

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8P’s in Detail

Place:

Where is your offer delivered and / or where can it be booked or bought?

Consider your Sponsors, Donors and Volunteers.

People:

Attracting, developing and retaining: Staff, Volunteers, Supporters, Donors,

Sponsors, Resource providers.

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8P’s in Detail

Process:

Is delivery and all interactions with stakeholders delivered to a

consistently high quality – that always meets and exceeds expectations?

Physical Evidence:

How will stakeholders see physical manifestations that support your

brand. For example: premises, mailings, literature, staff, logo, website,

advertising, collectors etc.

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Lucozade

Invalid

‘Treat’

Everyday

buy

Athlete

An example – Re-positioning

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Corporate Sponsors & Donors

Low

Cost

Standardised

Customised

High

Cost

Bronze Sponsorship

Pack

Gold Sponsorship

Pack

Silver Sponsorship

Pack

Consider the 8P’s in

each case

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Managing your Brand – 8P’s

My firm belief is that a brand is a cluster of

functional and emotional values that enables an

organisation to make a promise about a unique

and welcomed stakeholder experience.

Ultimately brand management is promise

management.

Prof. Leslie de Chernatony

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The only thing you

can be certain of is..

Uncertainty!

Charity's Target

#

t Q1 Q2 Q3 Q4

• You will never be on

exactly on track

• You need to exceed

the year end target

• The “P’s” are the

mechanism to get

back on track

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Control – Ensuring safe arrival

• Put a measurement system in place for all your Objectives

• Act quickly to correct under–performance – use the P’s

• You must have Trustee support (and ideally leadership)

– in order for Marketing to work successfully!

• Everyone must believe – not pay lip-service!

• Everyone includes the Trustees – however much they think

that “it was done better in my day”.

• Times have changed – and always will. Be flexible!

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Charles Darwin

‘It is not the strongest of the species that survive,

nor the most intelligent,

but the one most responsive to change.’

Survival of the Fittest …....

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