3. Who am I?
Michael Harrison DipM;
FCIM; FICM
Senior Warden
Worshipful Company of
Marketors
3
4. 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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5. 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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6. 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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7. 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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8. CIM Definition
“The management process responsible for
anticipating, identifying and satisfying customer
requirements profitably”
Chartered Institute of Marketing
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9. Definition for Charity Marketing
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
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10. Role of Marketing
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
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11. Role of Marketing
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!
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12. Marketing Orientation
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”
12
13. Marketing Orientation
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.
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15. Marketing Orientation
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.
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16. Case Study - Name
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!
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17. Case Study - Name
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
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18. Case Study - Name
Now:
The Institute for
Food, Brain and
Behaviour
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19. Case Study - Name
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!
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20. What do you want to achieve?
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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22. Macro Factors – Affect Everyone
Socio-Cultural
Technological
Economic
Environmental
Political
Legal
Ethical
- You (probably) cannot
change them
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23. Affect (your) Charity Sector
Suppliers, Donors ‘Customers’
Volunteers & Sponsors Donors & Sponsors
Threat of New
Entrants
Money
Clients
Resources Competitive
Rivalry
‘Time’ Donors
Substitute
Offerings
Porter’s 5 Forces Model
Adapted by P. Rees
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24. 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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25. 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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26. 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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27. 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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28. 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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29. Four Important Questions - 4
Which Product/Service/Offering –
Markets will we be in?
Products (Services & Offerings)
Existing New
Market Product
Existing
penetration development
Markets
The Ansoff Market Diversification
Matrix
New
development
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30. 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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31. 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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32. 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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33. Targeting (Segments) Option 1
The
whole • The whole market (of
Market Donors) wants and
wants values the same thing.
and • There is therefore
values 1 Marketing Mix for all
Donors.
the
same
thing
This is called Undifferentiated Targeting
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34. Targeting (Segments) Option 2
Segment 1
• There are several
segments
Segment 2 • You will serve them all
• There is therefore
Segment 3 a different Marketing
Mix for each segment
of Donors.
Segment 4
This is called Differentiated Targeting
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35. Targeting (Segments) Option 3
Segment 1
• There are several
segments
Segment 2 • You will only serve
some of them
Segment 3 • There is a different
Marketing Mix for each
chosen segment of
Donors.
Segment 4
This is called Concentrated Targeting
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36. Example: Donors and Sponsors
‘Public’
High Net
Worth
Alumni
Wills etc
Corporate and Trusts
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37. 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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38. 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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39. 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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40. 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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41. Lucozade
Everyday
An example – Re-positioning buy
Invalid Athlete
‘Treat’
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42. Corporate Sponsors & Donors
Consider the 8P’s in Customised
each case
Gold Sponsorship
Low Pack
High
Cost Cost
Silver Sponsorship
Pack
Bronze Sponsorship
Pack Standardised
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43. 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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44. The only thing you
can be certain of is..
Uncertainty!
Charity's Target
#
• 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
Q1 Q2 Q3 Q4 t
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45. 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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46. Survival of the Fittest …....
‘It is not the strongest of the species that survive,
nor the most intelligent,
but the one most responsive to change.’
Charles Darwin
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