Marketing for a Non-Profit Organization - Notes

Marketing for Non-Profit Organizations

Introduction

• Non-profit organizations (NPOs) primarily sell their mission, ideas, programs, and services rather than tangible products.
• Community awareness is vital; without it, fundraising efforts are unlikely to succeed.
• A strong image enhances community awareness, leading to increased local support through effective marketing.
• This paper examines the marketing practices of WWF (World Wide Fund for Nature) in Greece, specifically focusing on their program for protecting endangered animals.

Literature Review

• NPOs operate in a competitive environment with financial and manpower constraints.
• Yorke (2007) notes that NPOs relate to many "publics".
• Gallagher and Weinberg (1991) state that NPOs have:
  • Non-financial objectives.
  • Mission-driven focus.
  • Multiple "customers."
  • Cooperative-competitive relationships with competitors.
• Bruce (1995) adds that NPOs have multiple stakeholders: staff, beneficiaries, board members, union representatives, which makes ascertaining success difficult and may lead to disregard of marketing.
• Krashinsky (1997) notes stakeholder conflicts require resolution mechanisms.
• Yorke (2007) mentions manipulation of the marketing mix is difficult; price is often not an instrument for influencing consumer behavior.
• Kotler and Levy (1969) emphasize marketing's crucial role in NPOs, whether acknowledged or not.
• Andreasen and Kotler (2003) highlight the increasing application of marketing principles to boost income for NPOs.
• Bulla (2006) says NPOs agree customer profiling/segmentation is helpful, but don't implement it.
• Akchin (2001) found a trend toward performing marketing functions without a comprehensive strategy in USA NPOs.
• Dolnicar and Lazarevski (2009) found that many NPOs lack understanding of marketing principles, focusing on sales and promotions and few marketing staff are trained in marketing.
• Reasons for this:
  • Marketing mix elements are not fully controlled.
  • Product (mission) is inflexible.
  • Price is often voluntary.
  • Distribution channel decisions are limited.
  • Reluctance to adopt marketing perceiving it as manipulative, conflicting with their honorable work.
• Maynard (2008) advises NPOs to develop a strong identity, viewing marketing as a philosophy of action.
• Lake (2008) emphasizes marketing is more than sales or donations; it satisfies consumer/donor needs.
• Shapiro (1981) and Ojiambo (1994) recommend NPOs cultivate distinctive competencies.
• Andreasen and Kotler (2003) recommend a customer-centered mindset through market research.
• Susan (2005) explores how marketing extracts benefits from philanthropy.
• Traditional marketing promotes NPO missions and raises awareness.
• Dolnicar and Lazarevski (2009) suggest other marketing strategies:
  • Market segmentation.
  • Product positioning.
  • Targeted advertising.
  • Channel selection.
• Maynard (2008), Lake (2008), and Ojiambo (1994) agree segmentation is crucial for sustainability and consistent communication.
• Lake (2008) advises maintaining customer databases for targeted communications.
• Yorke (2007) notes budget constraints limit primary data use for segmentation; secondary data is scarce.
• Shapiro (1981) re-categorizes the marketing mix for NPOs as advertising and product policies.
• Maynard (2008) and Yorke (2007) propose promotion via:
  • Phone calls.
  • Letters.
  • Email.
  • Newsletters.
  • Reports.
  • Signs.
  • Press releases.
  • Editorials.
  • Brochures.
• Marketing materials should describe:
  • Benefits.
  • Services.
  • Donation opportunities.
  • Organizational values.
• Lake (2008) advises a professional website for information, news, community building, and showcasing benefits.
• Maynard (2008) suggests slogans for effective messaging.
• Message repetition and variation enhance memorability.
• Yorke (2007) notes diverse target markets hinder message effectiveness; messages may lack detail and fail to emphasize personal benefits.
• Lake (2008) suggests alliances with other organizations, commerce, government, advertising media, and business.

Research Methodology

• Case study approach is employed, focusing on a specific setting or event (Stake 1995).

Sampling Method

• Purposeful sampling is used to select information-rich cases (Patton, 1990; Cresswell 1998).
• Two types of purposeful sampling:
  • Snowball sampling: identifying others to investigate (Minichiello et al., 1990).
  • Maximum variation sampling: picking cases purposefully (Minichiello et al., 1990).
• The General Manager suggested five more people in the organization from different departments.
• Six in-depth interviews were conducted with the General Manager, managers, and top executives from the Fund Raising and Communications Departments.

Data Collection Methods

• In-depth interviews are most valuable (Lincoln and Guba, 1985).
• Secondary data was gathered through press articles, leaflets, and the website.
• Interviews used broad questions for respondent freedom.
• Content analysis method was used for summation (Stake 1995; Kent 1999).
• Qualitative content analysis was applied.
• Material from the interviews was divided into content analytical units and categorized according to the points of interest of this study.

Findings

General Information

• WWF established in Greece in 1990, became independent in 1995.
• WWF runs projects since 1991 in the towns Presa and Dadia, since 1993 in Zakynthos island and since 2000 in Papigo village.
• Conducted campaigns concerning farming and aquaculture in the Acheloos river as well as the revision of the Constitution in 2001.
• Campaigns included the climate change and toxics.
• Mission and vision: ‘Harmonic coexistence of man and nature’.
• Objective: Find donors to adopt endangered animals for 3 euros per month via credit cards selecting from 6 species: Panda, tiger, sea turtle caretta- caretta, dolphins silver-pelican, and howl-eagle

Objectives

• Goal: Double the number of donators of endangered species, reaching 2,000 by 2011.
• Collaboration with Eurobank: 25% of shopping with a special credit card goes to WWF.
• Advertising on the Internet and in magazines.
• The message is important.

The Market

• Targets children and schools via children’s magazines.
• Targets schools through directors and teachers, high-school and university students.
• Targets adults via newspapers and magazines.
• Does not focus on corporate members or sponsorships.
• More than 1,000 people have adopted animals.
• Adoption service has 25% of total WWF donors.
• WWF issues a quarterly magazine, ‘The living planet’.
• Donators receive a poster and information initially.

Competition

• Operates in a competitive environment.
• Other environmental organizations:
  • MOM (monk seal protection).
  • Greenpeace (international).
  • Arktouros (wildlife protection).
  • Kallisto (environmental protection in Greece and Balkans).
  • Mesogios SOS (Mediterranean environmental collaboration).
• All organizations showed a small increase in the number of their donators the recent years.
• WWF differs by offering 6 species for adoption.
• All except Greenpeace lack international presence.
• WWF and Greenpeace collaborate on political and legislative issues.
• Greenpeace has well-known advertising campaigns via newspapers, magazines, Internet, direct mail, and TV.

PEST Analysis

• Analysis of external macro-environment (Political, Economic, Social, Technological).
• These factors are beyond firm's control and can be threats or opportunities (Kotler, 1994).
• PEST analysis is often done with SWOT.

Political Environment

• Adoption program is not controlled by laws.

Social Environment

• Increased public awareness and sensitivity to environmental protection.
• Greek state's slow adaptation is a problem.

Technological Environment

• Internet is the primary, low-cost communication medium.
• Website has 30,000 monthly visitors.
• Saves 20,000-25,000 Euros compared to direct mail costs.

Economic Environment

• Influenced by economic conditions.
• Donations are secondary to basic needs.

SWOT Analysis

• Audits organization’s strengths, weaknesses, opportunities, and threats (Doyle 1994).

Strengths

• Low price: 'adopt animals threatened with extinction only with 3 euros'.
• Free newspaper advertisements.
• Successful message: strong appeal to people.

Weaknesses

• Cannot afford TV advertising.
• Repetitive promotion is limited.
• Financial constraints limit communication.
• Payment system relies on credit cards.

Opportunities

• Increase of Internet users and websites.

Threats

• Program may become outdated after a decade.

The Marketing Mix

• The 'four Ps': product, price, place, and promotion (Kotler 1994).
• A fifth ‘p' is also added known as people.

Product/Service

• Selling the idea of protecting endangered animals and ecosystems.
• Species include:
  • Giant Panda.
  • Tigers.
  • Sea Turtle (Caretta-Caretta).
  • Dolphins.
  • Silver Pelicans.
  • Howl-eagle.
• Donators receive:
  • Certificate.
  • Member’s card.
  • WWF Hellas magazine ‘Live Planet’.

Price

• Donation is 3 euros per month to cover operational costs.
• Special prices for pupils, students, and schools (120 Euros per year).
• Higher donations are possible.
• No special efforts to attract corporate customers.

Place

• Direct mail is the main distribution method.
• Improvement possible via members (volunteers).

Promotion

• Based on available budget.
• Mainly newspapers, magazines, and Internet (free).
• TV is too expensive.
• Radio is not used i.e. the radio has no pictures of animals.
• Online ads: animated species, message ‘Adopt one of the species threatened with extinction with 3 euros per month’.
• Advertising department designs and produces ads.
• Effectiveness assessed by tracking application sources.
• Frequent contact with donators via newsletters and monthly magazine.
• Magazine and newsletter production costs: 15,000-20,000 Euros per year.
• No sponsorships sought.

People

• Excellent working conditions and creative positions.
• Financial resources are allocated in programs for the protection of the environment and it cannot pay high salaries.
• Training, education, and moral satisfaction are provided.
• International meetings and seminars are organized.

Discussion

• Environmental NPOs are increasing due to public concern.
• WWF Greece established in 1990.
• Endangered species program has 1,000 donators (25% of total).
• Maynard (2008), Lake (2008) and Ojiambo (1994) emphasized on target markets, and consistent communication.
• WWF targets children, schools, teachers, students, and adults.
• Does not seek corporate sponsorships and should develop their own distinctive competencies.
• Shapiro (1981) and Ojiambo (1994) claimed that NPOs should develop their own distinctive competencies.
• WWF offers 6 species for adoption; others offer 1 or 2.
• Most lack international presence (except Greenpeace).
• WWF uses marketing practices:
  • Low price appeal.
  • Credit card payments.
  • Slogans and messages.
  • Local volunteer networks.
  • Multiple promotion channels.
  • Monthly magazine.
• TV advertising is unaffordable.
• Limited budget restricts communication.
• Lake (2008) recommended using Internet presence.
• Lake (2008) and Yorke (2007) recommended advertising objectives, results, benefits, services, donation opportunities and values through magazine and website.
• WWF has alliances with newspapers and magazines.
• Lake (2008) suggested the organizations could establish alliances with other organizations.
• The study examined the marketing practices employed by the organization.
• Contributed to the non-profit sector.
• Results support literature findings.