PADM 7040 Nonprofit Management Dr. Jerry Merwin Overview Positioning and BRANDING Chapter 6 (p. 166-177) Janice Reaves Valdosta State University September 19, 2005 Positioning We all should now be familiar with segmentation. Ken’s presentation gave us an overview of how organizations should approach target markets. This presentation covers the importance of positioning and branding an organization. POSITIONING Nonprofit organizations compete just as for-profit organizations do. In their 1981 book , Position: The Battle for Your Mind, Al Ries and Jack Trout describe how positioning is used as a communication tool to reach target customers in a crowded marketplace. www.quickmba.com/marketing/ries-trout/positioning The Customer Positioning begins with a product, the concept really is about positioning that product in the mind of the customer. It is important for marketers to understand its target audience and to understand how they view the marketers’ offering. Reposition The example given on page 167 of the text, lists five different organizations that caters to the needs of women. Andreasen & Kotlers say, “If any one of these organizations is to be successful in getting clients and getting volunteers and financial support, it must differentiate itself in the eyes of the target audience”. Reposition What a marketer must do is “stand out” among its competition. It should ask. - What’s different about this organization? - Why should people donate to my organization instead of my competitor? - What can this organization do to be on the consumer’s mind? Present Position The starting point for any positioning strategy is to understand how the organization or the proposed behavior is perceived at the present time in comparison with its major competitors (p. 167). Perception One of the first fast food slogans I can remember is Burger King’s, “Have it your way.” Even as a kid, this slogan had gotten into the mind of the consumer. In my mind, no other burger joint would let you have it your way. I didn’t want mayo on my burger, so I’d better go to Burger Kings, because it’s theme song says, “hold the pickles, hold the lettuce, special orders don’t upset us..” because all they ask is for the consumer to give them a chance to, “let us have it your way.” Measuring Positioning Behaviors Semantic Differential 1. Develop a set of relevant dimensions 2. Reduce the set of relevant dimensions 3. Administer the instrument to a sample of respondents in the contemplation stage 4. Average the results 5. Check on the perception variance The semantic differential is based on bipolar adjectives (see page 168-169) Positioning Alternatives Once the organization analyzes the perceptions that target audiences hold about a specific behavior…the next step is developing a positioning strategy. A positioning strategy involves 1. 2. 3. 4. Understanding your present position; Understanding your principal competitors; Deciding on whether & how to differentiate your offerings from those of competitors; and Making this positioning known to others (p. 170). Three Stages of Differentiation 1. Building upon our present strengths 2. Searching for a niche 3. Repositioning the competition Reis and Trout, “Positioning: The Battle for Your Mind” Positioning Before an organization decides it does not like its present position, it must carefully examine that position and determine one important thing. Is the problem reality or perception? If it is reality, then fundamental changes must be made before announcing to the world its new position. If it is perception, then more creative communications can likely fix this perception. Many organizations do this through branding. What is Branding A brand can become valuable shorthand for a wide range of characteristics and outcomes. A brand can imply certain information. It can convey certain emotions It can even have its own personality Can You Identify These Brands? A. B. C. D. E. F. A mind is a terrible thing to waste. Developing, Nourishing and Maintaining a Brand This is no easy feat. In fact it is a challenging task. For many organizations that place great emphasis on their brand, it must be a continuing focus. ---------------------------------------------------------An example is the U.S. Army. Since 1981 its slogan was, “Be all that you can be.” But in 2001, that slogan changed to, “An Army of one” (Source U.S. Army). It also developed a new logo. Can you think of any other organization that changed it’s slogan or logo? Developing, Nourishing and Maintaining a Brand One of the most successful branding campaigns I’ve witness was after the 1996 crash of the Value Jet airplane in the Florida Everglades. A 2001 Business Journal Phoenix article has this to say: “AirTran Airways was a badly damaged brand in need of repair. Formerly Value Jet Airlines, and infamous for the 1996 crash of one of its planes into the Everglades, the company needed help reinventing itself after the catastrophe. (continued on next page) Developing, Nourishing and Maintaining a Brand "Value Jet was used as a poster child when the FAA investigated deregulated carriers," said Brian Landauer, C-K general manager. "There was no value left in the brand's name." Once the company had new equipment, new services and new staffers in place, C-K helped them re-brand themselves with a new name and position. Now, the airlines is up, running and gradually gaining momentum. http://www.bizjournals.com/phoenix/stories/2001/04/23/focus2.html Is Branding for Everyone? Not everyone in the nonprofit sector thinks that an emphasis on organization branding and positioning is a good idea. Some argue that branding, per se, is acceptable but it ought to be applied to causes, not individual organizations. (See Spruill’s argument on page 172) (And a counter on page 173 exhibit 6-3) Developing a Branding Strategy According to Susan D. Kirby, formerly of the Centers for Disease Control (CDC), “If your social/public organization or program has competitors and a limited funding stream, strategic identity and branding can help ensure your programs/products are created to provide relevant value to your target audience and that target audiences view those programs or your organization as valuable and different from competitors.” (See exhibit 6-4, p 174) 3 Outcomes of Identity/Branding 1. Brand Awareness It is critical for social organizations and program to be visible and to stand out from others. If your program is not recognized or recalled as part of your organization’s portfolio of programs, it could lose valuable stake holder and public support. Brand Awareness Users may be less likely to use the programs if they are unaware of the program or its link to credible organizations, and partners may not initiate or consider partnerships if they are unaware of the programs and services you offer. Brand Awareness Focus on the organizations below. Why is one better known than the other? Founded in 1962, America's Blood Centers (ABC) is North America's largest network of non-profit, community blood centers Founder in 1881, the American Red Cross works closely with companies, community groups, and others to organize blood drives. Did Brand Awareness Make a Difference? Brand awareness is most often measured by asking respondents which brands they recall from a list of names. From the previous slide, which name do you recall? 3 Outcomes of Identity/Branding 2. Brand Mindshare Is measured by asking respondents to name brands in a specific category (e.g., names of computer chip brands) Mindshare is important because it usually means the brands that’s on the consumers’ mind are the ones users will consider when they are contemplating a purchase, stock purchase, or co-branding opportunity. (p. 174) 3 Outcomes of Identity/Branding 3. Brand Loyalty Basically means repeat customers, even in the face of new competition, price increase, product scandal, or even product change. Brand loyalty is most often created by tapping into either self-expression or relational aspects of an identity. Key Points to Remember About Branding Know your brand’s present position and that of your competitors’ brand Analyze what you have learned and decide where you want to go. Determine how to get to the new branding position. Put your house in order and craft the necessary creative communications. Key Points to Remember About Branding Make sure there is an integrated strategy. May sure everyone buys in. Pretest as much as possible Routinely monitor. Monitor what is being done internally to protect and enhance the equity in this critical asset – the brand – and monitor how it is being perceived over time by the target audience. Summary Branding in its broadest sense refers to everything an organization does to promote itself and a product. Building a brand requires a lot of work and requires careful steps including background research, developing an integrated strategy, getting “total buy-in,” and careful pretesting and monitoring, (Andreasen & Kotler, 177) Bibliographies Andreasen & Kotler, “Strategies Marketing for Nonprofit Organizations,” 2003 Prentice-Hall, Sixth edition. http://www.bizjournals.com/phoenix/stories/200 1/04/23/focus2.html www.quickmba.com/marketing/riestrout/positioning http://6l3zyr.redcross.org/index.html http://www.americasblood.org/