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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.

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Presentation on theme: "SOWO 883 Marketing and Fundraising Introductory Lecture 1A Walter C. Farrell, Jr. Professor of Community Management & Policy Practice School of Social."— Presentation transcript:

1 SOWO 883 Marketing and Fundraising Introductory Lecture 1A Walter C. Farrell, Jr. Professor of Community Management & Policy Practice School of Social Work University of North Carolina at Chapel Hill Chapel Hill, North Carolina

2 Walter C. Farrell, Jr. Future Nonprofit Challenges l According to the IRS, there are more than 1 million nonprofits in the U.S l Non profits {501 [c] (3) organizations} employ 20 million people, 7.2% of the U.S. economy l This sector cares for our children, the aging, the poor and disadvantaged, the sick and dying, improves neighborhoods,, and preserves culture l This is also the sector with the most limited resources! l This sector faces 3 emerging challenges

3 Walter C. Farrell, Jr. Challenge #1: Finding The Next Generation Of Leaders l It is imperative to have good leadership at the top l Currently, there is a shortage of leaders in the pipeline with the requisite skills to sustain many of the existing Nonprofits l Leaders need to be accountable for talent development, succession planning, diversity, and they should be fairly compensated

4 Walter C. Farrell, Jr. Challenge#2 Creative Concepts For Funding l Creative Capitalism l Develop partnerships with the corporate sector to promote the idea that business can and should benefit society l Partnership between Microsoft and the Boys and Girls Clubs of America—Club Tech Initiative l Building relationships with individual donors and Foundations l Make a point to diversify funding streams

5 Walter C. Farrell, Jr. Challenge #3: Coordinating Resources l The Nonprofits of the future will have to engage in more Collaborative Efforts l Nonprofits will have to work to reduce redundancy in their service areas l This can involve mergers, consolidation of back office functions, or pursuing new service lines depending on the changes in the environment

6 Walter C. Farrell, Jr. l Tamp down on misconduct and maximize efficiency to ensure public trust l Going beyond your walls to share what you have learned with outside constituencies l Pool expertise with other Nonprofits in your service area l Document your Nonprofit’s contributions beyond the body count l Challenge #4: Plan For l The Future

7 Walter C. Farrell, Jr. Examples Of Nonprofits l Cultural Organizations l Religious Institutions l Social Welfare Agencies/Organizations l Professional Associations l Charities, Disaster Relief Agencies l Colleges and Universities, K-12 Education l Health Organizations, especially AIDS Organizations l Government and Non-Government Agencies (NGOs)

8 Walter C. Farrell, Jr. What Is Marketing? l “ The process of planning & executing the conception, pricing, promotion, & distribution of ideas, goods, &/or services to create EXCHANGES that satisfy individual & organizational objectives.” l “…(C)reating those programs or services, from the outset, and delivering them to your participants and supporters” l Exchanging offerings that have value (American Marketing Association)

9 Walter C. Farrell, Jr. What Is Public Relations (PR)? l An organization’s attempt to create a favorable public opinion for itself l Relations with public/prospective funders l Standing out from the crowd Do “Marketing and PR” support “Fundraising?” Can “Marketing and PR” hurt “Fundraising?”

10 Walter C. Farrell, Jr. Elements Of A Marketing Plan? l Identify organization mission/needs/goals l Environmental analysis—Know Your Competition l Audience and Segmentation l Messaging (Testing Slogans) l Marketing Tactics: Short- and Long-Term Steps, l Measure Achievement of Goals/Objectives l Budget and Staffing

11 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) ???

12 Walter C. Farrell, Jr. How Do You Listen To The World Around You? l Focus Groups l Surveys l Analyze Web and l Monitoring Social Conversations l ???

13 Walter C. Farrell, Jr. Major Tasks of Marketing/PR l Market Analysis l Segmentation and Targeting l Positioning (e.g., “Leading-Teaching-Caring”-- UNC Hospitals) Branding: What is FEMA’s current brand? l Service Configuration l Pricing l Distribution l Communication with stakeholders—Internal and External

14 Walter C. Farrell, Jr. The Marketing Mix The 5 P’s in Marketing l Product Behavior to be changed l Place Location of the behavior change l Examples? l Price Cost of service/product l Promotion Message and delivery l Policy Policies, rules, requirements that impede implementation of service/product l Apply to Your Nonprofit

15 Walter C. Farrell, Jr. Satisfying Highly Diverse External Markets and Publics l For profit-making companies, consistency often exists in what is desired by shareholders, creditors, employees, suppliers, distributors, and customers l For nonprofits, donors, volunteers, employees, collaborating agencies, and customers may want very different things l Often requires selling many different offerings at the same time l Tends to be difficult and expensive to research wants and needs

16 Walter C. Farrell, Jr. Setting Goals and Evaluating Performance l Cannot assess results based primarily on dollar figures -- “achieving social welfare outcomes” often most important l More sales are not always better -- often have to “de-market” l Market share may or may not matter l Requires consensus-building and ample (but expensive) information-gathering

17 Walter C. Farrell, Jr. Orchestrating “Internal Marketing” l Must sell “customer orientation” or a “marketing mind-set” to one’s own employees l May have to overcome the “free-rider problem” l Helps to research “internal” customers, finding out what appeals they are sensitive to (e.g., solidarity, meeting an external challenge, incentives)

18 Walter C. Farrell, Jr. Delivering Product Quality That Pleases Both Employees And Customers l What professors, artists, doctors, religious leaders, and other nonprofit service providers think is high quality may not be perceived that way by customers l Need ample amounts of customer education l Need patience l Hurricane Katrina??

19 Walter C. Farrell, Jr. Keeping Product Quality High With Limited R & D l Tight budgets often prevent investment in self-renewal l The product often cannot be modified to make it more customer- pleasing

20 Walter C. Farrell, Jr. Setting “Fair” Prices l 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 l Communicating about price can be awkward and confusing to customers l Pricing “sponsorships” is very tricky

21 Walter C. Farrell, Jr. Fundraising l Helps to look at it with a marketing perspective (i.e., as an exchange, as relationship marketing, as direct marketing, as an ad agency) l Differentiate your approach

22 Walter C. Farrell, Jr. Using Publicity Effectively l Paying for advertising and promotion by a nonprofit can cause problems and may not work well WHY? l Seeking credibility and accurate communication l Understand the information-seeking of best customers l Develop friends in the media

23 Walter C. Farrell, Jr. Stimulating Word-of-Mouth Advertising l Create customer “delight” whenever possible l Provide incentives to “pass the word” l Any customer “delight” in the responses to “Hurricane Katrina? l Why or why not?


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