Transcript How do you say it?

Chapter 11
www.themegallery.com
Direct marketing and fund
raising in ‘not for profit’
organizations
Company Logo
www.themegallery.com
课堂气氛激励措施及规则
翻译一次可领取一粒阿尔卑斯糖
累计翻译两次可以领取山楂卷一小包
累计翻译三次可以领取一小包雪丽糍
累计翻译四次可领取一条加顿面包
累计翻译五次可领取一瓶雅哈或牛奶
领取最多奖品的可以选择换领终极神秘大奖！！
领取一种奖品后所累计的答题将抵消
奖品送完即止、欲领从速
（PS：最终解释权归413宿舍所有）
Company Logo
Chapter 11
Learning objectives
In this chapter ways that non profit
organizations can use direct marketing
tools and techniques to achieve their
marketing objectives will be examined
society
Government
Non-profit organizations
Profit organizations
Some non monetary direct marketing objectives
Marketing campaigns
measurable responses desired
Anti drink driving campaign
reduction in number of drunken drivers
Boy Scouts
adults to become pack leaders
Greater involvement in activities and service delivery
Political campaigns
votes
Greater involvement in activities and election activities
The local church
more people attending regularly
Greater involvement in activities and service delivery
The Red Cross
blood bank donations
Greater involvement in activities and service delivery
What does the donor get?
Marketing implies an exchange process. The
marketer supplies various benefits, needs,
satisfactions and problem solutions in
exchange for money or something else form
the customer as illustrated, “Marketing
exchange process”.
Marketing exchange process
Marketer
A bundle of benefits, need satisfactions and problems
Customer
The price in money or something else
No-profit organization
benefits, need satisfactions and services
No-profit organization
Non monetary direct marketing
objectives
Donor or supporters
Time, effort ,money or something else
No-profit organization
benefits, need satisfactions and services
No-profit organization
Non monetary direct marketing
objectives
Donor or supporters
Time, effort ,money or something else
In return for supporting a non profit
organization a person might receive:
•Recognition from friends, family and the community in
general
•Private feeling of recognition
•A feeling that they have done something positive
•Chance to obtain prizes or merchandise
•Merchandise of various descriptions.
Recognition awards
Thank you letters
Lapel pins
Without payment
Certificates Suitable for framing
Plaques
Special events and dinners
Publish pictures of large cheques being presented
by donors
Some potential
supporters may not
wish to give a gift
to an organization
but are willing to
buy merchandise
of various sorts.
With payment
swank
Fund raising basics
1. Capital works
When funds are needed to set up a
new facility it is common practice to
try for large donations from a few
individual or corporate supporters
2. Special projects
Special projects are often related to
issues that are receiving heavy
coverage in the news media
Fund raising basics
3. Covering running costs with budget
fundraising
Large and small donations from as wide a cross
section of the community as possible are sought to
cover the organization’s normal operating costs
4. Economics of donor acquisition and
renewal
Competition for donors is intense. Householders
are bombarded with direct mail and telephone calls
from worthy causes
The economics of donor
acquisition and renewal
16
14
12
10
＄ 8
6
4
2
0
Marginal cost
1
2
3
4
5
Additional donors
6
Marginal revenue
Donors should be graded
and classified according to
 Volume of annual donation
 Length of time they have been a donor
 Purpose of gift
Keep donor acquisition
Direct marketing activities
What does the donor need
Grade and classify the donors
Cooperation with other organizations
Many community and charitable organizations
are able to gain cooperation and support form
commercial organizations in their fundraising
efforts. An organization planning a raffle or
event would often approach business
organizations and individuals to donate prizes,
equipment and/or financial support. Many
businesses are happy to display good corporate
citizenship and community support in this
manner.
Cooperation with other organizations
Fund of educational institutions including:
 Recurrent government funding
 Particular purpose grants from various
government bodies
 Commercial training and consulting
activities
 Fees and charges
Educational institutions’ fundraising
efforts typically target:





Current students’ families and friends
Past students or graduates
Suppliers
Businesses
Community service groups and clubs
Income tax deductible
Appeals and approaches
Putting a human face on an appeal helps
Ensure donors can see themselves helping an individual or family
more than an abstraction.
 For charity
 For community amenities
 For socio-cultural action groups
Applying business thinking to
worthy causes
LOGO
Chapter twelve
Direct marketing in retail
Learning objectives
www.themegallery.com
This chapter gives an overview of
the main issues involved in retailers
using direct marketing techniques
to expand their operations.
Company Logo
Introduction
Many local retail operations incorporate direct marketing
techniques in their business to some degree.
 The local supermarket offers a home delivery service so
customers without cars can buy large amounts of groceries.
www.themegallery.com
 The fish and chip shop gives customers a business card sized
fridge magnet so they can telephone their orders in before they
leave home and not have to stand around waiting for the food to
cook when they get there.
 A delicatessen takes orders by telephone, fax and email for home
delivery. Customers can see what’s available on a web page or
order form a printed price list.
Company Logo
The wheel of retailing
Entry of low cost, price
discount operation
Add services and
facilities
www.themegallery.com
Cost/price
creep
Company Logo
www.themegallery.com
New types of low cost, low price retailers
gain a foothold in the market against
established competitors. Gradually over
time they add services and upgrade their
facilities in order to serve their customers
better.
Traditional retailers attempt to maximise
the number of people from their local
catchment area visiting the store and
present their merchandise attractively to
gain the highest possible average sale. As
a result they are locked into high
infrastructure costs.
Company Logo
The high infrastructure are include:
 Frequent promotional events and heavy advertising are
required to build and maintain a share of the market in the
catchment area against the efforts of equally determined
competitors.
www.themegallery.com
 Inventory must be on hand for customers to buy as lack of
inventory means lost sales. A certain amount of inventory
shrinkage must be anticipated due to breakages, theft, out
of date or spoiled stock and so on.
 Staffing with sales people, checkout operators, supervisors,
warehouse staff, etc is expensive.
 Display merchandise effectively involves high cost shop
fittings and display materials and frequent minor and
major remodelling of different parts of the store.
Company Logo
The pattern of customer location
a circle with a radius of approximately 4km would
cover 95% of customer for most branches.
www.themegallery.com
over 50% of customers are usually within 2km
1. main road with high vehicle
traffic---semicircular pattern
Company Logo
www.themegallery.com
Retailers need to gain a better return
on their investment in facilities. Direct
marketing can help them accomplish
this through:
 Extension of customer catchment
beyond the immediate area
 Possible reduction of costs
associated with maintaining the shop
and display facilities.
 More efficient logistics, order
processing and material handing
 Building closer relationships with
customers.
Company Logo
Extending effective customer
www.themegallery.com
Red light factors: Keep customers from visiting a store –
includes travel time and distance, inconvenience,
unfamiliarity, image of store or area, more convenient
stores offer same value, poor service, etc
Green light factors: Induce customers to visit a store –
includes promotional events, advertising, loyalty
programs, assortment deals, service not available
elsewhere, etc
Company Logo
Some of the directions a retailer can follow
to extend effective customer
Modified Ansoff growth matrix
Existing markets
www.themegallery.com
Existing product/service
offering
New product/service
offering
New markets
I market penetration
More business from existing
customers
Lager share of existing target
markets
III market extension
Take existing offering to new
geographic or other types of
market segments
II product extension and
adding value
Target existing customers and
market with new offering
IV diversification
New product/service offerings
to new markets
Company Logo
www.themegallery.com
Market penetration and product extension
implies mining more business from the
existing market and operation.
You can gain more business from your
existing customers if you can induce them
to increase their average order size, buy
more frequently. This can be
accomplished by a well thought out
calendar of promotional events, loyalty
programs and frequent customer contact.
Company Logo
Some techniques used to gain more from the retailer’s catchment area
Type of objective
techniques
Gaining initial trial
Increasing awareness
Letterbox drops
Direct mail
Special events
Participation in group promotional
mailings
Acquiring new prospects
Coupon and discount offers
www.themegallery.com
Building store traffic and initial visits Special events
Discounts and coupons
Increasing size of sale
Bundling offers
Inventory liquidation
Targeted diect mail based on
information from customer history
database
Coupon and discount offers
Gaining repeat business
Company Logo
Communicating with the customer
What do you say?
How do you say it?
Where do you say it?
www.themegallery.com
When do you say it?
Company Logo
Communicating with the customer
www.themegallery.com
What do you say?
Direct marketing differs from general
advertising. Advertising builds awareness
so that the buyer recalls the retail
operation favorably when ready to buy.
Retailers could offer:
 Good prices
 Combination deals
 Premiums when a customer buys
 Free giveaways if a customer attends
 Entertainment
 Competitions
Company Logo
How do you say it?
 Some retail organizations like Myer and Daimaru put out very high
www.themegallery.com
quality publications designed around seasonal themes with sophisticated
design concepts. However, most retailer direct mail is not well done and is
an attempt to get as many specials on a page as possible so that it looks
like a checkerboard of small pictures, big prices and tin abbreviated
descriptions.
 Dare to be different. The retailers’ direct mail package or letterbox
material needs to cut through the clutter. Your material needs to stand out
from all the stuff jammed into the prospects’ letterboxes—it’s a victory if it
past the rubbish bin. There needs to be a reason for them to pick it up and
read it and for the message to capture a customer’s consciousness, which
is undoubtedly occupied by more important things.
Company Logo
www.themegallery.com
Where do you say it?
Some retailers use newspapers,
magazines and electronic media to
stimulate store traffic events or warm up
customers and get them to watch for the
deal that will be coming soon in their
letterboxes.
Company Logo
www.themegallery.com
When do you say it?
Some annual occasions may be appropriate for promotional events:
 First day of school
 Valentines' Day
 Mother’s Day
 Easter
 Father’s Day
 Show day or a local fair
 Opening of ski season
 Last day of school
 Christmas
 Boxing Day
 Halloween
 First day of fishing season
 First day of summer.
Company Logo
www.themegallery.com
Awareness and recall
Marketing effort flights
Time
Many of these occasions will be used as themes for various firms’
promotions. Customers’ mailboxes will be stuffed with advertising
competing for their attention because people are used to spending at
Company Logo
these times.
Permission marketing
www.themegallery.com
Consumers are willing to pay to save time,
while marketers are eager to get attention.
Permission marketing involves only talking
to people who will pay attention to the
message.
Company Logo
The permission marketing methods that can be used to build a loyal
retail customer base:
www.themegallery.com
Offer the prospect an incentive to enter a
relationship with the store and pay
attention to its messages. Customer
retention programs should be used to
increase the durability of relationships.
Teach the customer about your product or
service over time.
Deepen the relationship and obtain
relevant information from the customer
with additional incentives.
Company Logo
Building the retailer database
www.themegallery.com
 Incentives to register might include tactics like:
A free gift to every customer who fills out
a registration card. A hardware store
supermarket might give each registrant a
free pair of pliers. A stationer might offer
a free pen or some floppy disks.
A sweepstake offering a number of major
prizes but allowing every person who
registers to win something. Naturally they
will have to come in to the store in order
to obtain their prize
A gift certificate redeemable for $5 or $10
off the normal retail price of anything in
the store.
Company Logo
www.themegallery.com
The incentive to register purchases might be:
Special discounts for registered
scheme members — this might
include several levels of
membership depending on the
amount spent over the year
Points schemes allowing
customers to accumulate points
that can be redeemed for
worthwhile prizes or
merchandise
Company Logo
www.themegallery.com
Loyalty building techniques could include
Advance notification of sales and special
deals before they are announced in
advertising media to the general public
Advance notice of new shipments of
special merchandise that a client seems
to be interested in
Regular informative newsletters that offer
useful information and solutions to
customer problems
Company Logo
Summary
www.themegallery.com
Direct marketing techniques allow
retailers to build a customer franchise
while keeping cost under control. It is
possible for the retail to expand business
well beyond the normal catchment area.
Retailers can expand their business by
attempting to gain more business from
their current markets with their existing
product/service mix, taking their present
offerings to new market segments,
introduction new product/market area.
Company Logo
Company Logo
www.themegallery.com