Prepared by Prevent Child Abuse New York for the NYS Parenting Education Partnership, August 2008 Marketing 101: A Basic Overview of Marketing for Non-profit Organizations Prepared by Prevent Child Abuse New York for the NYS Parenting Education Partnership, August 2008 What is Marketing? Marketing is much more than just advertising and selling. Marketing is all the activities an organization carries out to determine who to market to, what to market them, why the audience should participate, how to communicate with the audience, how to encourage programs and events, and where to market. There are many more elements to marketing, but basically the philosophy of marketing in a non-profit organization is satisfying the audience enough to influence an idea or an action. The marketing mix helps organizations decide what to market, as well as determine its location, and promotion. The marketing strategy identifies a target market and a marketing mix suitable for that target market. A target market is a fairly similar group of customers to whom an organization wishes to appeal. The marketing mix is a set of controllable variables a company compiles to satisfy the target group. The Marketing Mix (Product, Placement, Promotion) is very crucial in marketing. Here is a more in depth look at the marketing mix: • Product: Physical good or service which satisfies the audience’s need • Placement: Where and how the audience finds or receives the good or service (where the product is distributed). • Promotion: Informing the market about the product & price. Advertising, promotion, publicity 1 Prepared by Prevent Child Abuse New York for the NYS Parenting Education Partnership, August 2008 SWOT Analysis The analysis of an organizations strengths, weaknesses, opportunities and threats (SWOT) analysis identifies can assist in focusing on a realistic marketing strategy. By conducting a SWOT analysis, organizations can gain an understanding of what they can build upon and reinforce to improve their programs and/or services. Organizations should realize that the SWOT analysis is used as a focusing tool to concentrate on key issues, and not a result. Depending on how an organization approaches its SWOT analysis, it can be extremely helpful or extremely useless. The more perspectives obtainable for the SWOT analysis, the better. Strengths (primarily internal) Opportunities (primarily external) Weaknesses (primarily internal) Threats (primarily external) Strengths and weaknesses are primarily internal. Internal factors can be anything within the organization - its finances, abilities, and personnel. Conversely, opportunities and threats are primarily external. External factors can be anything outside of the organization such as legislation, social norms, and competition. Simple rules for succesful SWOT Analysis: • Be realistic about the strengths and weaknesses of your organization when conducting SWOT analysis. • SWOT analysis should distinguish between where your organization is today, and where it could be in the future. • SWOT should always be specific. Avoid grey areas. • Always apply SWOT in relation to your competition i.e. better than or worse than your competition. • Keep your SWOT short and simple. Avoid complexity and over analysis • SWOT is subjective. 2 Prepared by Prevent Child Abuse New York for the NYS Parenting Education Partnership, August 2008 Segmentation & Positioning Market segmentation requires naming broad audience an organization plans on marketing to and segmenting them into select or more specific target markets. No one organization can satisfy everyone’s needs, so focusing in on the audience that will need or respond the most to the organization is a must. An organization like a business organization must find its competitive advantage or even new, exciting opportunities to draw in the target market. A few criteria for segmenting: • Customers within a segment should be homogenous. o They must have similar responses to marketing mix mentioned before. They should also have similar segmenting dimensions. • On the contrary, customers in different segments are heterogeneous. o Different responses should result to marketing mix. Also, they should have different segmenting dimensions. • Segment should be substantial o Segment should be big enough to incur a response or action Broad audiences may have submarkets. There are usually choices among many possible target markets. Here are three basic ways to develop market-oriented strategies: 1. Single Target Market Approach: Select one homogeneous segment as the target 2. Multiple Target Market Approach: Select two or more target segments. Develop a different marketing mix for each segment. 3. Combine Target Market Approach: Combine submarkets into single target market. Develop one marketing mix for the combined target. Generally, an organization wants to focus in on a specific target market. This way the organization can maximize the results of a group that is most responsive to what the organization can offer. Positioning refers to how the audience perceives proposed or present available organizations. A marketing manager must have a realistic view of how the audience perceives the organization to be able to differentiate themselves from other programs. 3 Prepared by Prevent Child Abuse New York for the NYS Parenting Education Partnership, August 2008 Promotion Promotion is communicating information between the organization and a potential audience to influence a change in attitude and or behavior towards the programs and/or services. This change usually equates to a higher success rate for the organization. A market manager would usually relay this information to the organization’s target market. Three promotion methods: 1. Personal selling • Direct spoken communication between the organization and the potential audience. Organization gets instant feedback. 2. Mass selling • Communication with large numbers of potential audience simultaneously. Less flexible than personal selling but less expensive when target market is large and scattered. o Advertising is main form of mass selling. This is any paid form of non-personal communication that works for the benefit of the organization. o Publicity is any unpaid form of non-personal communication. These can range from interviews, news stories, and featured magazine articles. 3. Sales Promotion • Promotion activities other than advertising, publicity, and personal selling. Some examples may include contests, sponsored events, gifts, and videos 4 Prepared by Prevent Child Abuse New York for the NYS Parenting Education Partnership, August 2008 Public Relations (PR) A form of sales promotion, public relations is of one of the most efficient ways of reaching a target audience Through good PR, an organization can gain earned media as well as social media. Through promotional efforts instead of paid media, earned media can be useful in gaining support for an organization. Social media encompasses activities that integrate technology with people in order to publicize an organization. There are many ways to achieve awareness through public relations, but some of the most basic and efficient are press releases and story pitches. A press release is an article written by an organization and sent to a news agency; the news agency may print the article as is or rewrite it. An organization must be careful to make the article interesting, newsworthy and subtle, stating new progress made or something new that it offers that the public would benefit from knowing about. Story pitches work in much the same way as press releases; these are ideas sent to news reporters suggesting a story that revolves around your organization. This can be a suggestion to cover a food drive, fundraiser or other event that would draw the public interest. It is helpful if the event is fresh or is celebrating a milestone that the media can cover and that it has plenty of photo and interview opportunities. The success of public relations depends on the interest your story generates and on good relations with local media. This can be a very hit or miss approach, but if done correctly it can generate more interest and awareness than thousands of advertising dollars. 5 Prepared by Prevent Child Abuse New York for the NYS Parenting Education Partnership, August 2008 Press Releases Public relations requires more than average writing abilities. One must be able to write easily, logically and succinctly. PR writing should be able to grab the reader’s (and media’s) attention as well as relaying the information in a quick and effective way. All of this should then lead to media coverage. In a press release, the first statement and the headline are crucial. These will grab the reader and draw their attention. Include the 5 W’s - who, what, when, where and why - in the first paragraph, ideally in the first sentence. Here is a more indepth look at the 5 W’s: • Who? The main focus of your story; a person or group at the center of the story • What? The event or project with which your club is involved • Where? The location of the event, including a street address • When? The time, day, and date of an event, or the time period involved for a person or project • Why? The reason the event, person, or project is significant to the general public 6 Prepared by Prevent Child Abuse New York for the NYS Parenting Education Partnership, August 2008 5 “musts” in a Press Release There are also five essential “musts” an organization should incorporate in a great press release. According to nonprofitmarketingguide.com, these five “musts” are: 1. A News Angle. Your press release needs an angle that shouts out why it should be read and followed up on NOW. What’s so special about your release’s topic and why should a reporter care about it TODAY? Linking your press release to current events, the time of year, or hot topics in the news is a good way to add a news angle to your press release. 2. Objectivity. Press releases should be as objective as possible. They are not marketing or advocacy pieces. Try to write them as if you were a reporter yourself, or at least someone not directly affiliatedwith your organization. 3. Quotes. Quotes bring your press release to life. Watch out for stiff or bureaucratic language. Instead, think of questions a reporter might ask and what your responses would be, in conversational language. Use those as your quotes. 4. A Contact Person Who Can Be Reached Today. Every press release should include information on how a reporter can reach you for more information. Don’t list your office phone number if it will trap a reporter in voicemail limbo. Don’t list yourself as the contact if you’ll be in meetings all day. Reporters are on tight deadlines. Tell them whom they can call and and how they can reach those contacts today. 5. A boilerplate. Always include as the last section of your press release a paragraph with the heading “About (your organization’s name).” It should contain the basic information about your organization (e.g., its mission, major programs, when it was founded, etc.). Don’t include this kind of background in the release itself–it’s not news. Finally, there is nothing more important than following up on press releases. Journalists receive countless number of press releases and contacts from others wanting to place news. Follow-up calls can be the difference between an interview and a story placement. This also can develop a relationship with the media for the future as well. 7 Prepared by Prevent Child Abuse New York for the NYS Parenting Education Partnership, August 2008 Example: How to Write a Press Release FOR IMMEDIATE RELEASE: CONTACT: Contact Person Company Name Voice Phone Number FAX Number Email Address Website URL HEADLINE (XYZ Inc. Announces Widget to Improve Sales) <City>, <State>, <Date> - Your first paragraph of the release should be written in a clear and concise manner. The opening sentence contains the most important information; keep it to 25 words or less. Never take for granted that the reader has read your headline. It needs contain information that will “entice” the reader. Remember, your story must be newsworthy and factual; don’t make it a sales pitch or it will end up in the trash. Answer the questions “who”, “what”, “when”, “where”, “why” and “how”. Your text should include pertinent information about your product, service or event. If writing about a product, make sure to include details on when the product is available, where it can be purchased and the cost. If you’re writing about an event, include the date, location of the event and any other pertinent information. You should include a quote from someone that is a credible source of information; include their title or position with the company, and why they are considered a credible source. Always include information on any awards they have won, articles they’ve published or interviews they have given. Keep your sentences and paragraphs short; a paragraph should be no more than 3-4 sentences. Your release should be between 500 to 800 words, written in a word processing program, and spell checked for errors. Don’t forget to proofread for grammatical errors. The mood of the release should be factual, not hyped; don’t use a sales pitch as it will ruin your credibility with the reader. The last paragraph before the company information should read: For additional information on (put in the subject of this release), contact “name” or visit www.yoururl.com. If you offer a sample, copy or demo, put the information in here. You can also include details on product availability, trademark acknowledgment, etc. in this area of the release. BOILERPLATE - Include a brief description of your company along with the products and services it provides. - END - 8 Prepared by Prevent Child Abuse New York for the NYS Parenting Education Partnership, August 2008 Alternative Ways to Communicate with the Media Press Releases are not the only way to communicate with the Media. Below are some other methods to get the attention from the media: • Media alerts o Newsrooms appreciate a media alert from being pressed on time. A more condensed version of a press release is ideal for upcoming events or reminders. Just answer the five Ws in bullet format, and send the alert to media contacts. • Letters to the editor o The editorial page is one of the most-read sections of the newspaper, and a letter can reach many people. • Op-eds o An op-ed is an opinion piece written by an individual who isn’t on the newspaper’s staff. Before writing an op-ed for your paper, learn what topics are of interest to your community. • Media kits o Prepare a special folder that holds general information about Rotary and your club as well as materials tailored to the event. • Fact sheets o Fact sheets provide details about programs to ensure that journalists have accurate background information. 9 Prepared by Prevent Child Abuse New York for the NYS Parenting Education Partnership, August 2008 Inviting the Media Whether or not you have support from the media for your program, it is worth having the media visit you. Demonstrate to the reporter exactly what your program is accomplishing. The visit may be specifically to see the program and to meet and learn from staff and families, or you may invite your reporter to an event that the program is planning. Depending on the event, consider inviting the local media to publicize your program as a local treasure to gain greater community support and recognition. Setting Up a Visit: • Create a simple plan for the visit with type of event, where, when, and who’s invited. • If possible, involve the CEO or executive director of your parent organization. o It may make scheduling a little more difficult, but can create greater support for home visiting both within your agency and with the media. • Contact the reporter to discuss scheduling the event. o Explain to them the benefits of home visiting and give several possible dates as you may end up working around their schedule. • Contact program families who are willing to be known publicly as spokespersons. • Prior to the visit, send materials outlining home visiting, and your program to the reporter. o Invite the media to tour your program site. • Hold events such as fundraising or rallies to draw in the media. • Arrange for the highest-level executive to hand out fact sheets about your program. o The media will pay more attention to them. Keep the fact sheet brief, no more than one page, single sided: Include examples of how life has improved for families after being in your program. Clearly list your funding needs from the state budget. Provide specific uses for the money, such as “$30,000 to help us serve an additional 100 families in the next year.” • Consider hiring a photographer. For a modest cost, you’ll have professional photographs of your site that you can use anytime in the future for your own publicity. • Send out media alerts whenever an organization agrees to support the legislation. o Provide documentation of what your goals are. Media Alerts should include: - Contact: Your name or leader of your organization - Name of the organization being represented - Who: The Assembly Member/Legislature representing your event - Other expected attendees: Childcare providers, parents, organization members, etc. - What: brief description of function - When: date and time of event - Where: the location of event - Why: Provide a few supportive facts about the goals of your organization - Why spread the word about your cause? - Quick main points of the goals of your organization/program - “Short and sweet”: Be brief and to the point 10 Prepared by Prevent Child Abuse New York for the NYS Parenting Education Partnership, August 2008 7 Ways to Market a Non-profit Organization 1. Identify your target audiences: Define the groups that your organization wants to reach. This is important so an organization can focus on the audience that will respond most to their programs. The organization must be mindful of the target audience in the way they present themselves, their ads, their website, and everything else that the audience may come in contact with. It must be relevant to the audience in order for the overall message to resonate. 2. Maintain consistent communication: Plan your communications strategy forthe next year. Develop a timeline for press releases, newsletters, special events, and other marketing efforts. 3. Create a visual identity: Communicate visually as well as verbally. Frequently display your organization’s name and logo on newsletters, reports, signs, and brochures. A memorable, well-designed visual image will strengthen awareness of your organization. Branding is important here. All components of anorganization’s brand such as people interaction, employee communication, organization’s philosophy, and marketing efforts, must reinforce the organization’s main goal. 4. Use message repetition and variation: An audience is more likely to remember a message if is reiterated in different types of communication. For example, print your mission statement in a brochure, write it in a PSA, and tell it to a news reporter. Slogans are a way to effectively capture the essence of a message in brief and memorable form. Slogans should be reserved for bigger organizations that can build their brand using slogans. Smaller organizations should stick with concise marketing messages that explain the benefits of such an organization. All in all slogans should be short, catchy and memorable. 5. Employ multiple communications tactics: Nonprofit organizations often target several audiences, which may respond to different approaches. Various communications campaigns can help establish and maintain a more widespread positive image. This in turn will increase PR of the organization to be able to draw in more attention to future programs. 6. Select and use appropriate media: Plan to use a combination of approaches best suited to reaching your targeted audiences and that make best use of your financial resources. Include a variety of methods including phone calls, letters, e-mail, newsletters, public service announcements, and press releases. 7. Develop a strong, well-known identity over time: Building visibility and awareness is a gradual process. Be patient, persistent, and consistent. 11 Prepared by Prevent Child Abuse New York for the NYS Parenting Education Partnership, August 2008 Sources “Five “Musts” for a Great Press Release.” Nonprofit Marketing Guide. 22 July 2008 <http://www.nonprofitmarketingguide.com>. Maynard, Wendy G. “Marketing for Non-Profit Organizations.” Concept Marketing Group, Inc. 10 July 2008 <http://www.marketingsource.com/articles/view/2101>. Morrison, Paul, comp. Management as a System. The McGraw-Hill Companies, Inc., 2008. 1-241. Pasternak, Laura. “Brand Beyond Marketing.” About. 2008. 22 July 2008 <http://marketing.about.com>. “Public Relations.” Rotary. 2008. 22 July 2008 <http://www.rotary.org>. “SWOT Analysis.” Marketing Teacher. 2000. 31 July 2008 <http://www.marketingteacher.com/lessons/les son_swot.htm>. 12