Transcript Mission Based Marketing - Small Business Resource

Mission Based Marketing
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Outline of Presentation
Mission-Based Marketing—What?
Customers
Competition
Marketing
Marketing Material
Customer Service
Financial Empowerment
Final Words
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Mission-Based Marketing
The tide is changing—the world of the Internet is
competitive
You are now in a competitive world—Is there still a need
for NGO-specific services?
Dealing with this means being
Mission-Based yet Market-Driven
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Mission-Based—Market-Driven
The Mission or the Market
The market is always right—determines success
The market is not always right for you
The mission should be the ultimate guide
Moving with the markets—maintaining your mission
Have the Mission visible—everywhere
Use the mission statement constantly
Use the mission in market/service decisions
Hold on to your Core Values
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Successful Not-For-Profits
Meet wants not needs
Treat everyone like a customer
Have everyone on the marketing team
Ask, Ask, Ask and then Listen
Innovate constantly
Don’t fear the Competition
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Customers
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Meeting Customer Wants
Huge difference between needs and wants
Target wants
People have needs—people seek wants
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The Customer is Always Right Wrong!
The Customer is not always right—but
The Customer is always the Customer
The Customer may not be right for you
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Competition
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Competitive Intensity
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Who Are your Competitors?
Internal Markets
Board Members
Staff
External Markets
Funders: government, members, foundations, donors
Products/Services: fees, prices, charges
Referrers: customers, suppliers, funders
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Study the Competition
Do Not Fear Competition —Learn From Them
What do you know about them?
What Services do they provide?
What clientele are they seeking?
What value do they provide customers?
What are their prices
How Do you research your competition?
Public Records, customer, and Board, Staff, and Volunteers
What are your competitors after?
What people or things is your competition trying to take away from
you?
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Be Better than your Competition
Pay attention to what customers want—give it to them
Be better than your competition in the eyes of your
customers
Competing is not bad—not immoral
Competing means being able to do more Mission
Tell customers how good you are.
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Marketing
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Marketing—A Team Effort
Everything that everyone in your organization does every
day
Every action effects the entire organization
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Motivating Board and Staff
Talk about the reality of competition
Talk about your mission
List similar organizations that are now in trouble/out of
business
Get comfortable with the idea of marketing
Get comfortable with the idea of competition
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Results of being Market-Driven
Happier markets—consumers and funders
Better image
Retain your market
More effective and efficient
New revenue sources
More financially stable
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Results of Staying Service-Driven
Risk continuing to provide outdated services
Risk continuing poor relationships with key funders
Risk losing historically loyal customers
Risk true, perhaps fatal, financial crisis
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Change with the Market
The Marketing Cycle is never-ending
Needs flexibility
Maintain the capacity for flexibility
Be a Change Agent
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Being a Change Agent
Show the Mission connection
Go through change together
Talk regularly about competition
Point out changes outside the organization
Don’t wait for big changes
Don’t criticize the Past—look to future
Be patient!
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Change in a Competitive
Environment
Shorter attention span
Louder advertisement and media
Shorter product cycle
End of annual cycles
Less sympathy for Not-For-Profits that can’t keep up
Stability is no excuse
Poverty-Chic is out!
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The Not-For-Profit Marketing
Cycle
The marketing cycle that works
Marketing doesn’t start with a product/service
Marketing starts with the Market
Most Not-For-Profits have a marketing disability
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Marketing Cycle of a
Not-for-Profit
1.
2.
3.
4.
5.
6.
7.
8.
Define/Redefine the Market
Establish what the Market wants
Shape and Reshape your Product/Service
Se a Sensible Price
Promote the Product/Service
Distribute the Product/Service
Evaluate, Evaluate, Evaluate
Return to # 1.
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Set a Sensible Price
Recovers all of your costs
Adds a profit
Meets the reality of the market
People buy based on value.
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Disability of Most Not-For-Profits
Have service oriented backgrounds
React to their own training
Knowing what people need—not listening to what they
want
Train yourself to listen for wants!
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Ask, Ask, Ask and then Listen
First, you ask
Second you listen
Then, meet as many wants as you can.
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Who are your Markets?
Identify and Quantify your Markets
Segment your Market
Focus on your target Markets
Treat All your Markets like Customers
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The Market of a Not-For-Profit
Internal
Board of Directors
Staff Members
Payers
Government
Members
Foundations
Donors
Users
Reference Sources
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Focusing on your Target Markets
Segment your market
The 80/20 Rule
80 % of your income comes from 20 % of your customers
The Strategic Plan Method
Which markets do we want to grow?
Which parts of our community are most important to
our mission?
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Treat All your Markets as
Customers
Customers, customers everywhere
Barriers to the customer service mentality
Internal customers
Funder or payer customers
Service customers
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Focus on your Core Strengths
Review the Markets
Evaluate the Competition
Look at your core competencies
Do a SWOT analysis
How do your Strengths and weaknesses compare to
your competitions’?
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SWOT Analysis
Strength
A positive internal aspect of your not-for-profit that you can control
Weakness
A negative internal aspect of your not-for-profit that you can control, and plan
for
Opportunity
A positive external condition that your not-for-profit does not control, but of which you
can take advantage
Threat
A negative external condition your not-for-profit cannot control, but you can
perhaps lessen.
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Customer Service
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Three Customer Service Rules
The customer is not always right, but the customer is
always the customer.
Don’t sell services, solve problems—from the customer’s
perspective
Customers don’t have problems, they have crises
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The Customer is always the
Customer
Listen to the whole complaint
Acknowledge and apologize
Ask them what they want
Never make problems you can’t keep
Keep excellent notes
Never assume a customer is happy
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Regular Customer Contact
All key markets should be offered the opportunity to have input
Keep up on customers’ important issues
Tell them if things aren’t fixed immediately—call YOU
Send a note thanking them for each gift, payment, effort
If you guarantee—live with it
Check on quality
Always follow up with new customers
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Turn Customers into Referrals
Referrals are not truly”free”
Don’t be too eager with new customers
Always ask permission to use a name as a reference
Remember to meet referrers’ wants
Always call or write a note of thanks
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Marketing Material
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Not-For-Profits Marketing Material
Problems
The marketing disability
We know what you need—we don’t care what you
want
Tradition
Penny-Wise—Pound-Foolish
Public Relations vs. Marketing
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Include in your Marketing
Material
Your Mission
Your Focus
Brevity
Connect Problems to Solutions
Appearance
References
Sources for more information about you
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Avoid in your Marketing Material
Jargon
Inappropriate Photos
Lack of Focus
Asking for Money
A history lesson
Out-of-Date
Boring
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Different Material—Different Markets
Market
Board
Staff
Dono rs
Gov ern m en t
Fou nd ations
Me m bersh ip
Ser vice Recip ien ts
Refer ral Sou rces
Want
Ini tia l info r mation , ong oing
infor m ation
Ini tia l info r mation , ong oing
infor m ation abou t the
or ganiz ation
Ways to g ive , w hat ha p pens
to don ations , w ho to call
Prog ram q u alit y, avail abilit y,
re g ula tion s
Dem ons tration of exp er tise
and e x perie nce
Benefit s and costs of
m em bershi p
Ser vices and o u tcome s,
a nu mber to call
Po s sibl e Mate rial
Board orie ntatio n manu al,
ne w sle tte r
Staff or ien tation
m ateri als , ne w sle tte r,
m anage m ent orie ntatio n
S pecific p ie ce des igned
for dono rs
S pecific p ie ce—em p has is
on ou t com es, q u ali ty,
cer tifi cation le vels
Gene ral info rm ationa l
p ie ce, fu ndin g sp ecifi cs
S pecific p ie ce on valu e of
m em bershi p
Pie ce des igne d wi th targe t
grou p in m ind
Info rm ation abo u t prog ram
q uality a nd a rray of ser vices
A p ie ce de signe d for
p rofe ssion al refer rer
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The Market Planning Process
Build on Common Ground
Identify target markets
Develop baselines
Develop an asking schedule
Develop a marketing plan
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Financial Empowerment
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Three Essential Philosophies
Your Organization is a Mission-Based Business
No one Gives you a Dime
Not-For-Profit does not mean Non-Profit
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Two Primary Rules for Not-ForProfits
Rule One:
Do More Mission
Rule Two:
No Money, No Mission
Ignore these rules at your peril!
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Financial Empowerment
Measurable
More revenue than expenses in at least 7 out of 10
years
Cash operating reserves of at least 90 days
At least 5% of total income from endowment earnings
Sources of revenue from non-traditional nongovernmental sources: business income
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Financial Empowerment
Management
Shares its financial information widely, practices
bottom-up budgeting
Use appropriate leverage
Mission
Organizations supports their missions by:
• using rapid-response mission reserve
• Being financially flexible enough to accommodate
changes in service delivery
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Final Words
World will always need Not-For-Profits!
Special people form the philanthropic cement for civil society!
In ten years, today’s Not-For-Profits won’t be needed!
Organizations meeting future perceived wants will be
needed!
You can be part of such Not-For-Profits!
Ask, Listen, Respond!
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Reasons to join
To get FREE marketing content
To get free downloads
To get discounts on our services
To get access to our resource centre
Many other Powerpoints in this series
in the members area
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