PHILANTHROCRAT FORUM
Framing the conversation and setting the context
Lawrence Jackson
Friday 2 August 2013
Who am I to talk?
Academic
Bachelor of Commerce (Marketing) UNSW
Direct Marketing Certificate (ADMA)
Executive MBA (AGSM)
Adjunct Member of Faculty, AGSM (Marketing Principles)
Management
Royal Blind Society
Benevolent Society
NSW Jewish Communal Appeal
University of Sydney
Royal Institute for Deaf & Blind Children
Consulting: 20 + organisations since 2006
Broadening the concept of marketing
Marketing is a pervasive societal activity that goes considerably beyond the selling of toothpaste, soap and steel. Political contests remind us that candidates are marketed as well as soap. Student recruitment in college reminds us that higher education is marketed; and fundraising reminds us that “causes’ are marketed...[Yet no] attempt is made to examine whether the principles of “good” marketing in traditional product areas are transferable to the marketing of services, products and ideas.
Kotler & Levy
“Broadening the Concept of Marketing”, Journal of Marketing 1969
Marketing causes
Marketing ideas
Who owns the "Occupy Wall Street" brand?
Marketing Obama
Marketing for God
Hillsong – Australia’s most powerful brand
Hillsong is a multi-million dollar global brand with a massive following, particularly among the young.
What can marketers learn from this fast-growing faith factory as it turns 30, asks Robin Hicks,
mumBRELLA, July 23, 2012
Or the "Anti-God"!
The need for "NFP Marketing"
Marketing: The last business function to arrive on the "NFP scene"
As long as institutions have operated in a sellers’ market , marketing was ignored. But as customers and/or resources grew scarce, the word ‘marketing’ was heard with increasing frequency, and organisations suddenly discovered marketing or a reasonable facsimile thereof
Philip Kotler, Strategies for Introducing Marketing into NonProfit Organisations
Journal of Marketing, Jan 1979
Myths and misconceptions about marketing
Many myths and misconceptions about marketing exists
Many people still believing that marketing is only used when there is a need to sell things to people which they do not really want or need.
Notion that marketing is only relevant in “for profit” situations
Therefore; Not-for-Profit marketing irrelevant by definition ?
What exactly is "marketing"?
Marketing is NOT only selling and advertising
Simply: “a process for facilitating exchange”
Traditional Definition
A social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others
Marketing, page 6
Kotler, Armstrong, Brown, Adam and Chandler
The NFP marketing dilemma...
~ Mission vs Resource Marketing
The FOR Profit sector is crystal clear.
Profit is the motive
The customer is King
The NOT for Profit Sector is ambiguous
A response to market failure
Two levels of customer
The person who receives the service does not pay for the service
Product has a dual component and operates on a double carriageway
How do you resource/structure for this?
Detecting an organisation centred orientation
The organisations core offering is seen as inherently desirable
Lack of success attributed to customer ignorance, lack of motivation etc
A minor role afforded to customer research
Marketing defined primarily as promotion
One “best” marketing strategy typically employed in approaching the market
Generic competition tends to be ignored
NFP marketing study undertaken by Akchin (2001)
Highlighted that
NFP Organisations tended to perform one or two core marketing function
Instead of wholesale adoption of marketing philosophy.
When asked about the needs for “marketing” the most cited were fundraising, event planning, public relations strategy, media relations, marketing strategy, and publications.
When asked to rank various marketing related responsibilities, marketing strategy was only rated as the top choice by 10 % of the participants,
53 % chose fundraising as their top priority.
In terms of skills sought, NFP managers indicated high ratings on ability to write press releases, produce publications, and write grant applications
Low interest in learning more about their “market” through formal market research techniques such as focus groups and surveys.
"Marketing in non-profit organisations: an international perspective": 2009 by Sara Dolnicar & Katie Lazarevski
Study, involving a sample of 136 responders from the UK, USA and Australia and published in 2009 revealed that;
Non-profit managers indicated the most important marketing activities are promotional in nature
The importance of marketing research and strategic marketing was acknowledged by only a small proportion of not profits
Only one fifth of marketing staff were formally marketing trained.
Non-profit organisations in the UK, USA and Australia did not differ substantially in their use of marketing
Competition in the NFP sector
In 2010, the Productivity Commission estimated that there were roughly 600 000 not-for-profits in Australia.
160 000 have a formal legal structure
440 000 are small organisations (unincorporated associations) .
56 000 are endorsed by the Australian Taxation Office (ATO) to receive charity tax concessions.
23 370 have been endorsed by the ATO as DGRs
The NDIS as a catalyst for change
The evolution of the National Disability Insurance Scheme (NDIS) and the launch of Disability Services Australia (DSA) is likely to be a major catalyst for change in the way the disability sector operates and uses marketing.
It is acknowledged that the shift to a “person centred funding model” will put choice and hence market power in the hands of the client or dare I say, the customer, in a way that has not occurred before. This in turn is likely to lead to a major shakeup of the NFP Sector challenging them to market and promote themselves in a way they never have had to do before.
Whether organisations realise it or not, they will be turning to the function of marketing to help them refine their mission and develop a client / customer centred mindset.
All NFPs use marketing whether they know it or not
As Kotler noted in1979, all non profit organisations “do marketing” whether the realise it or not.
The example, he refers to a College as an example and points out that they search for prospective customers (students), develop new products (courses), price them (set tuition and fees), distribute them (set schedule for time and place) and promote them (college marketing collateral).
The dual purpose dilemma?
Managing the marketing to 2 layers of customers
What is the nexus between services and funding ?
How do you resource/structure for this?
The "dual carriageway" model
Guest Speaker Panel
Michele Goldman, CEO, Asthma Foundation
John Moore, Director, Excalibre Insights
Daniella Dickson, Director, Risk, PwC
Craig Thomson, Director RIDBC
Kerry Stubbs, CEO, Northcott
Carol Ireland, CEO, Epilepsy Action Australia
Case study: Education sector marketing (Advancement)
Advancement is a strategic, integrated method of managing relationships to increase understanding and support among an educational institution's key constituents, including alumni and friends, government policy makers, the media, members of the community and philanthropic entities of all types.
The primary core disciplines of educational advancement are alumni relations, communications, marketing and fundraising.
Thank you / Contacts
Lawrence Jackson
Director of Development
Royal Institute for Deaf & Blind Children
(02) 9872 0333
Catalyst Management / Philanthrocrat
0438 602 357
ljackson@cataystmanagement.com.au