Transcript Marketing Putting It All Together & Making It Work

Develop a winning marketing plan
for your
non-profit organization
Michael Hagan
Vice President Marketing
YMCA of the Greater Houston Area
Who’s Here?
…and Why?
Ever hear (or say) this???
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“Marketing? That’s just for the for-profit
organizations”
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“ Create me a brochure…”
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…and make it cheap!
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“Enrollment is a little slow so we’ll have to cut your
marketing budget a bit”
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“We did some ads; why didn’t anyone call?”
…But Marketing is so much
more…
“Marketing is a way to harmonize the needs and wants
of the outside world with the purposes and the
resources and the objectives of the institution”
Peter Drucker
Managing the Nonprofit Organization
“ Marketing is the process of planning and executing
the conception, pricing, promotion, and distribution
of ideas, goods, and services to create exchanges
that satisfy individual and organizational objectives”
College Marketing textbook
In other words...
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We got programs, or the capacity to develop them
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The people we serve have needs…
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Marketing is the matching of both so that we both
are happy!
…But Marketing can be so confusing!
?? TARGET MARKET ??
?? STRATEGIC PLAN??
?? BRANDING??
?? FOCUS GROUPS??
?? DIFFERENTIATION??
?? POSITIONING ??
?? MARKETING PLAN??
?? SEGMENTATION??
So...
How do we de-mystify marketing & put
all these things together…
to accomplish our goals?
So, our objective today is to…
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Discuss a process that can be used by your organization
to develop a marketing plan if you do not have one or to
evaluate the design of your plan if you have one now
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Understand the 8 step marketing plan process and how each
step works
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Understand how all the tools we have available can work
together to positively impact our objectives through a marketing plan
…So, let’s get started!
Things are changing!
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Name recognition, reputation and even quality alone are no
longer enough to survive and thrive (Where is Wards today?)
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The public is more value conscious
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Economic factors & philanthropy are changing
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Expectations are higher
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Needs change rapidly (think of 9/11 or Katrina)
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Increasing competition or alternatives
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It’s all about delivering value
The goals of marketing are changing, too
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The old way:
 Bring about exchanges

The new way:
 Create value and long-term relationships
 Think about cultivating donors over time
So…
We must manage from a
perspective
…We must have
Market-Driven Leadership
Marketing
Another way to look at it...
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The Marketing Driven organization
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Sees marketing as a bag of tricks, gimmicks, and promotions to use to
capture the mind of the consumer
Strategies aim at short-term outcomes to meet organizational needs
The Market Driven organization
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Sees marketing as an ongoing dialogue with consumers in which
responses to the market (programs, activities and facilities) are often
altered, changed and often created
Aim is to build strong and lasting relationships
OK…
I have a marketing person who
can do all of this for us!!
…or more likely, I do NOT have
anyone to do this!
“To run a nonprofit effectively, the marketing must be built
into the design of service. This is very much a top management
job, although, as in every other area, you need a lot of input
from your people, from the market, and from research”
Peter Drucker
In other words, Marketing is truly
everyone’s job but there must be a
leader…and you are probably it!
Ok…let’s make Marketing easy!
Let’s answer these questions...
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Where are we?
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Where do we want to go?
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How do we get there?
Let’s get started by answering
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Where are we?

Where do we want to go?
A strategic plan will do this...
A good strategic plan...
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Gives direction to the organization
Starts with the mission
Is generally long term (3-5 years)
Is a product of both staff & volunteers
Is based on some good research
Consists of specific, measurable goals
…and has expected outcomes so you know if the goals
are being accomplished
And now it’s time to answer…
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How do we get there?
An annual marketing plan will do
that...
An Annual Marketing Plan
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Time spent on this up front will make your life later so much
easier!
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The plan will identify what specifically will you do to make the
strategic plan goals happen?
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When will you do it?
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How much will it cost?
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Who is responsible to make it happen?
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What are the the specific measurements?
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What do I do if it doesn’t work as planned?
The Marketing Plan
It’s a Process - Not a Form
1) Situation analysis
2) Target market
3) Marketing goals & objectives
4) Marketing strategies
5) Marketing programs
6) Budgets
7) Timetables
8) Evaluation & adjustments
The Marketing Plan Process
1) Situation
analysis
2) Target market
3) Marketing goals & objectives
4) Marketing strategies
5) Marketing programs
6) Budgets
7) Timetables
8) Evaluation & adjustments
1. Situation Analysis

Describe everything you know about yourself and your
competition
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Research! Research! Research!
A quick word about research
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Don’t skip this! You’ll be sorry if you do!
Gather all of these as you plan
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Demographics of your community
 Now & projections
“I don’t go where the puck is; I go to where it’s going to be”
Wayne Gretsky
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Needs assessments of your service area
Member , volunteer & staff surveys
Think about financial and capital needs
Look at the big picture
Trends vs fads?
But isn't good market research
expensive??
Something to remember about research…
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Primary data
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Newly collected facts & figures
These are unique to your specific need
Secondary data
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Facts & figures already collected & are readily available
Technology has helped us in a big way here
Start with these. You might be surprised what is
already available
“Get your facts first and then
you can distort them as much
as you please”
Mark Twain
1. Situation Analysis

Describe everything you know about yourself and your
competition
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Research! Research! Research!
Features vs. benefits
Features & Benefits
People generally buy because of the
benefits they derive from the features of
a product or program. It’s the value
they receive.
A few words about benefits
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It all starts with the perceived & real benefits you have
over others
Ask yourself this about benefits:
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Does it offer a benefit that my target really wants?
Is it an honest-to-goodness benefit?
Does it truly separate me from my competition?
Is it unique and difficult to copy?
In short, what are your USP’s - Unique Selling Propositions
If your USP is...
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“We deliver pizza faster”
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“Powerful but luxurious cars
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Dominoes Delivers
BMW-The Ultimate Driving Machine
Innovative automobiles
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Different-Chrysler
Quick Quiz
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What are the benefits associated with the following
features of a fast food restaurant :
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Kids play area
Drive-through
Many locations
Limited or no customizing of meals
Quick Quiz
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To a senior citizen, is the kids play area a benefit?
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To the same senior, can this be a liability to the
restaurant ?
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To a couple with no kids, what value is the kids play
area?
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So, is the kids play area a real benefit or not?
Benefits…worth saying again...
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It all starts with the perceived & real benefits you have
over others
Ask yourself this about benefits:
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Does it offer a benefit that my target really wants?
Is it an honest-to-goodness benefit?
Does it truly separate me from my competition?
Is it unique and difficult to copy?
In short, what are your USP’s - Unique Selling Propositions
What are some features of
your organization?
…and, what are the benefits
associated with those features?
1. Situation Analysis
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Describe everything you know about yourself and your
competition
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Features vs. benefits
Your goal should be to see the future clearer than your
competition does
Do a very objective SWOT analysis
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Research! Research! Research!
Trends vs. fads?
Strengths, weaknesses, opportunities & threats
Example:
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The aging of the people in our communities
The Marketing Plan Process
1) Situation analysis
2)Target market
3) Marketing goals & objectives
4) Marketing strategies
5) Marketing programs
6) Budgets
7) Timetables
8) Evaluation & adjustments
2. Target Market
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There are different groups or segments that share some similarities & can
be marketed to in a similar way
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Describe the segments that you want to hit
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Demographics (age, sex, ethnicity, income)
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Psychographics (lifestyle)
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Remember that there can be many segments. Your task is to pick the best
ones.
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Example:
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Aging population with an interest in staying well and living longer
Quick Quiz
In this example,
what are some other potential targets??
Some Other Targets Might Include…
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Older people that might be interested in including
your organization in their estate planning…donors
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Older people who now have more time to volunteer
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Older people who are interested in returning to the
work force part time
The Marketing Plan Process
1) Situation analysis
2) Target market
3)Marketing goals & objectives
4) Marketing strategies
5) Marketing programs
6) Budgets
7) Timetables
8) Evaluation & adjustments
3. Marketing Goals & Objectives
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What is your positioning? …your brand. This is the place
you occupy in the consumer’s mind
Some Points About Positioning
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“Marketing is the battle of perception”
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“It’s better to be 1st in the mind than 1st in the
marketplace”
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“Perception is reality”
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“Own a word in the mind”
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“Two products cannot own the same word”
Ries & Trout
The 22 Immutable Laws of Marketing
Word Association Quiz
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Fast Food & kids
McDonald’s
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Safety & automobile
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Chocolate bar
Hershey’s
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Copier
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Xerox
Tissue Paper
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Volvo
Kleenex
Soft Drink
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Coca-Cola
Sure, these kind of products are
always branded but…
What About?...
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“The Good Hands People”
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All State Insurance
“The Document Company”
Xerox
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“We try harder”
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“The Positive Place for Kids”
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Avis
Boys & Girls Club
“Commit for Life”
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The Houston Blood Center
Some brands don’t even need words
What all these have in common
...Branding
A holistic marketing approach in which an organization’s
business objectives and image come together in ways to
build allegiance among stakeholders and the public at
large
Branding…so, why do it?
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Americans latch on to names/image
Products sold on image/brand
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Nike ...… McDonalds …... Starbucks
Brands can be built & leveraged
Expands the recognition of services
Develops a consistent image of what you do
Brands are long-term
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transcend cultural barriers
speak to multiple markets
create economies of scale
So,
what do people think of when they
hear about your organization?
… But, there is a downside
Not all brands have worked
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Soft drink failure
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New Coke
Automobile failure
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Airline failure
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Edsel
Value Jet
Music & toys on the internet
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Amazon.com??
Why??
They simply did not meet the needs of
the consumer, did not provide
expected value or they simply confused
people
In short,
if the consumer sees a consistent name
or brand, they expect consistent quality!
A quick, take-home exercise…
At a recent event, a local TV reporter gives
you 10 seconds to tell his audience what
you do and why you do it…
What would you say??
The Marketing Plan Process
1) Situation analysis
2) Target market
3)Marketing goals & objectives
4) Marketing strategies
5) Marketing programs
6) Budgets
7) Timetables
8) Evaluation & adjustments
3. Marketing Goals & Objectives
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What is your positioning? This is the place you occupy in the
consumer’s mind
When setting goals, they should be S M A C!
 Specific
 Measurable
 Attainable
 Compatible with organizational goals or strategic plan
Example:
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Develop a program to address the total wellness of older adults & grow senior
membership units by 10% in 12 months
Let’s play goal………not a goal!
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Have more open house events
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Not a goal
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Not a goal
Attend more health fairs
Sell 78 family membership units during September 2007 vs. 62
in same period 2006
 Goal!
The Marketing Plan Process
1) Situation analysis
2) Target market
3) Marketing goals & objectives
4)Marketing strategies
5) Marketing programs
6) Budgets
7) Timetables
8) Evaluation & adjustments
4. Marketing Strategies
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This is where you develop specific strategies that describe what you
want to accomplish to meet the needs of the target market
Think of them as different approaches to solve the same problem
You might have more than one strategy
Example:
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Meet the needs of older adults by introducing a program consisting of
walking and classes on diet, nutrition and osteoporosis prevention
The Marketing Plan Process
1) Situation analysis
2) Target market
3) Marketing goals & objectives
4) Marketing strategies
5)Marketing programs
6) Budgets
7) Timetables
8) Evaluation & adjustments
5. Marketing Programs
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These are the combination of marketing activities you use to
influence a targeted group to seek a program or activity
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Example:
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YMCA Personal Fitness 12 week personalized fitness program
communicated to the target via a series of 5 postcards over a 6 week
period plus newspaper ads in local community papers & collaboration
with Memorial Hermann 55+ membership
Strategies vs. Programs
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Strategies
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Different approaches to solve the same problem
With the goal of making a touchdown, the coach can call a
run or a pass…2 different strategies
Programs
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Once you identify an appropriate strategy, these are the
combination of marketing activities you use to influence a
targeted group to seek a program or activity
Once we agree to a pass, what’s the play?
The Marketing Plan Process
1) Situation analysis
2) Target market
3) Marketing goals & objectives
4) Marketing strategies
5) Marketing programs
6)Budgets
7)Timetables
8) Evaluation & adjustments
6. & 7. Budgets & Timetables
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How much is it going to cost to implement these programs?
How much money will they bring in?
What is the overall schedule to implement these programs and
who is responsible for each element of the plan?
Example:
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(Specific cost of program delivery, advertising, supplies, etc)
The Marketing Plan Process
1) Situation analysis
2) Target market
3) Marketing goals & objectives
4) Marketing strategies
5) Marketing programs
6) Budgets
7) Timetables
8)Evaluation & adjustments
8. Evaluation & adjustments
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How will I know when I am successful and what do I
do if I get off the road?
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This can be the most important part of the plan!
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Example:
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YMCA Personal Fitness resulted in a 15% increase in seniors
membership in the last 12 months compared to a 10% goal
Would there be a different response if the result was only a
5% increase?
The Marketing Plan Process
1) Situation analysis
2) Target market
3) Marketing goals & objectives
4) Marketing strategies
5) Marketing programs
6) Budgets
7) Timetables
8) Evaluation & adjustments
Another example...
1) Situation analysis
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Fewer corporations are giving philanthropically
2) Target market
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Corporations who wish to give to good causes but wish to gain
some product sales & visibility from their contribution
3) Marketing goals & objectives
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Achieve a giving level of $50,000 from one major corporation
during the summer of 2006
4) Marketing strategies
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Develop strategic partnership (sponsorship) programs to offer
corporations visible benefits for their contributions in lieu of a
philanthropic gift
Another example...
5) Marketing programs
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Inner city youth sports league held from June 'til August
2006 in 3 needy neighborhoods with the target of serving
2,500 kids communicated through local radio & community
newspapers
6) Budgets & 7)Timetables
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(Specific cost of program delivery, advertising, supplies,
uniforms, etc)
8) Evaluation & adjustments
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The program served 3,000 kids vs. the goal of 2,500 &
resulted in 3 major stories written by local newspapers
about the corporation’s commitment to inner city youth
Questions?