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MARKETING OF NON-PROFIT ORGANI Z ATIONS

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  1. MARKETING OF NON-PROFIT ORGANIZATIONS Ing. Mgr. Radim Bačuvčík, Ph.D. U44 - 209, bacuvcik@fmk.utb.cz www.bacuvcik.com

  2. Your ECTS grade and credits… • 4 lessons … 4 tasks … 4 ECTS grades • now – E • 1 assignment = D • 2 assignments = C • 3 assignments = B • 4 assignments = A

  3. Task 1 – our next lesson: • Give us an example of a non-profit organization from your country, which is well-known within your country. • What is the reason of the popularity of the organization? • What marketing and promotional techniques does the organization use? • What do inhabitants of your country think about the organization? Are there any marketing researches of the image of the organization or its managers? • … I will bring an example from my country, you will bring examples from your countries…

  4. Task 2: • Give us an example of some interesting social marketing campaign in your country. Prefer your regional campaigns, not global campaigns (OSN, UNESCO etc.) localized in your country. Possible topics: anti-smoking, prevention of illnesses, road traffic etc. • Try to choose a campaign which in some sense characterizes your national mentality, the way of thinking etc. – which is specifically „yours“ • Describe campaign goals, methods of communication, selected media. If possible, tell us about the efficiency (outcomes of some marketing researches of the recall etc.)

  5. Task 3: • Give as an example of activities of some non-profit organization or social marketing campaign, which is – in your opinion or in opinion of the public or media – in collision with ethical principles of society. • The collision may be in the way of visual solution of the campaign (portraying of people in unaccepted way), way of asking money (for example some kind of emotional blackmail), in the topic of the communication (which is a social taboo) etc. • How is the communication or activities accepted by public or media • Why did the organization decided to use this way of communication – can it be more efficient than „normal“ campaign?

  6. Task 4: • The last task have something to do with your philanthropy. • Do you support some non-profit organization (with money, as a voluntary or in some other way)? Why do you support it? How did you choose it? Were you thinking about supporting some other project? What role did the marketing activities of the organization play in your decision? Give us an example of the communication, which influenced you to support it. • In case you do not support some non-profit organization, have you been thinking about this question? What fact would you consider, if you were choosing a non-profit project to support? (For example the field of activities, image or reputation of the organization, recommendations, marketing activities etc.)

  7. What does „non-profit“ mean? - economic category - usually „subjects created (based, founded) not to provide economical (financial) profit“ - depends on the legislation (laws) of the particular countries - in this sense the terms and abbreviations NPO (non-profit organizations) or NGO (non-governmental non-profit organizations) are commonly used

  8. What does „non-profit“ mean? - NPO can create profit in „accounting (book-keeping)“ sense of word, but the profit must be used for the purpose of organisation (for example purchase of necessary stuff), while the owners (founders) can’t use it for themselves - otherwise: - NPO don’t work “free-of-charge” - their services are usually paid, although non completely (part of payment comes from the donations) - there are voluntaries in NPO, but also paid staff - in marketing sense they have “commercial potential”, that means they are able to provide projects that are interesting for commercial sponsors (in other words they do not have to “beg”, but they can cooperate with commercial sector)

  9. Non-profit sector public(government) and private(non-government) - the founders are public or state administration (government, ministries, regional or municipal authorities - the founders are private persons (individuals or corporations - depends on legislation in particular countries) - non-profit non-governmental sector (non-profit sector in closer sense of word) = third sector

  10. Legal forms of non- profit organizations - depend on legislation - this is an example of Czech Republic - civic associations – founded at least by 3 persons, little organizations, for example environmental (fight against motorways building etc.) or special-interest associations (fishers, huntsmen, gardeners etc.) - they work above all for their members - common-beneficial organizations - larger, working for example in charity, culture, humanitary etc. - they serve to whole society or its part - churches and church organizations - foundations - political organizations (inc. parties) - associations of corporations (for example in hotel industry or travel movement - they often deal with lobbying)

  11. Non-profit sector as economic phenomenon non-profit sector can cooperate with all other sector - NPO can provide services for other organisations and household and they receive payments from them; in some countries NPO create up to 3 - 7 % of GDP public (government) sector non-profit sector household sector commercial sector

  12. Non-profit sector as social phenomenon - civic society - the society, which wants to “manage” itself in social (political) sense of word - opposite of society directed by political parties - freedom and need of association - philanthropy - defense of interests of minorities Non-profit sector is both economical and social phenomenon

  13. Description of non-profit non-governmental organizations - 5 characters defined by L. M. Salamon and H. K. Anheier 1. They are organizations - organized according to local legislative - have formal status (not only accidental or occasional way of meeting and process) 2. They are private - not founded by civil or state administration 3. They do not distribute profit to their founders, but use it for the purposes of organization 4. They are autonomous, self-governing - public or state administration haven’t essential influence on them 5. They are voluntary (have portion of voluntary work and/or membership isn’t obligatory depending on family or religious tradition)

  14. International classification of non-profit organizations (ICNPO) - fields of process 1. Culture and recreation 2. Education and research 3. Health 4. Social services 5. Environment 6. Development and housing 7. Law, advocacy and politics 8. Philanthropic, intermediaries and voluntarism promotion 9. International 10. Religion 11. Business and professional associations, unions 12. Not elsewhere classified

  15. ICNPO - fields of process 1.Culture and recreation 1 100 Culture and arts 1 200 Sports 1 300 Other recreation and social clubs 2.Education and research 2 100 Primary and secondary education 2 200 Higher education 2 300 Other education 2 400 Research

  16. ICNPO - fields of process 3.Health 3 100 Hospitals and rehabilitation 3 200 Nursing homes 3 300 Mental health and crisis intervention 3 400 Other health services 4.Social services 4 100 Social services 4 200 Emergency and relief 4 300 Income support and maintenance

  17. ICNPO - fields of process 5.Environment 5 100 Environment 5 200 Animal protection 6. Development and housing 6 100 Economic, social and community development 6 200 Housing 6 300 Employment and training 7. Law, advocacy and politics 7 100 Civic and advocacy organizations 7 200 Law and legal services 7 300 Political organizations

  18. ICNPO - fields of process 8. Philanthropic intermediaries and voluntarism promotion 8 100 Grant-making Foundations 8 200 Other philanthropic intermediaries and voluntarism promotion 9. International 9 100 International activities 10. Religion 10 100 Religious congregations and associations 11. Business and professional associations, unions 11 100 Business associations 11 200 Professional associations 11 300 Labour unions 12. Not elsewhere classified

  19. What does marketing in non-profit organizations mean? 1.Marketing and marketing communication with the clients - consumers (users) of the services 2. Public relations - communication with the whole public or society 3. Fundraising or sponsoring - communication with donors 4. Social marketing and social advertising - special form of marketing communication (above all with the whole public)

  20. 1.Marketing and marketing communication with the clients - consumers of the services - non-profit organization can use the same marketing principles and techniques like commercial subject - the key is the character of target group, the information which is communicated and the media which can be used - within non-profit marketing there are great differences between the branches - e.g. social NPO communicates with old, ill, disabled or even mentally retarded people, homeless, narkomaniacs etc., while cultural NPO communicates with well educated and socially situated admirers of classical music or fine arts

  21. 2. Public relations - as non-profit organizations are often funded from public (governmental, regional, municipal) sources, they should have “moral obligation” to communicate with public and explain necessity of their services for public (or its part) as well as efficiency of their using the public money (in fact money paid by public via taxes) - long-time support from public sources depends on image or reputation of NO, that is why it has to do some PR activities, although its services are only for some small part of public - rate of financing from public sources varies - in USA NGO are sponsored above all from private sources, in Europe mostly from public sources - there are many „branches“ of PR - media relations, community relations, government relations, university relations..

  22. 3. Fundraising or sponsoring - usual sources: - public resources (government, regional and municipal authorities) - private commercial resources (corporations - sponsors; fundraising = activity of person asking money, sponsoring = activity of person giving money - private non-profit resources - foundations, churches - private individual resources - public collections, individual gifts (permanent order from bank account etc.)

  23. 4. Social marketing and social advertising - speaking about marketing of non-profit organizations we mean above all “selling” their product (services), term “social marketing” means above all “selling” the ideas to the whole public or to its part - social marketing (or advertising) includes for example anti-smoking campaigns, traffic safety campaigns (using seat belts, keeping maximal speed in cities etc.), some voluntary or fundraising campaigns (e.g. in case of humanitarian catastrophe - tsunami in South-East Asia etc.), campaigns dealing with AIDS, children work, human rights, women rights etc. - social advertising campaigns are often called „PSA“ - Public sector announcements/advertisements

  24. Main “problems” of non-profit marketing - the sources of the most of NPOs are short - people in NPOs prefer to spend money in something closely connected with their service, but don’t want to spend for marketing or promotion - in NPOs there is a lack of people educated in economy, marketing or communication - people in NPOs think, that everybody must “see” how important their service is and theyexpect, the public will be interested in they work or will give money even unless they communicate it - NPOs advocates the rights of the minorities, but does not know how to communicate them the way the public understands it and wants to support it

  25. Are there differences between commercial and non-profit marketing? different: - product (mostly service or idea) - distribution of profit (not to founders) - understanding the competition (in commercial above all within the branch, in non-profit everyone asking the same money from public or private sources) - “way of thinking” of the people the same: - marketing techniques and principles - marketing process starts at “customer’s” side - the subject must know, whom he is talking with

  26. Forms of social marketing campaigns - media advertising of PR campaign TV, radio broadcasting, press, billboards, direct mail - personal selling (acting) evangelization campaigns, fundraising campaigns (collections) - events presentations, protests, blocades, petitions, sport or cultural events

  27. Main branches of social marketing campaigns - health preservation and prevention AIDS prevention, anti-smoking, anti-drugs, anti-alcohol, anti-self-indulgence (e.g. children) campaigns, vaccinations of children etc. - safety and injury prevention road traffic safety - max. speed, using safety belts, lights, anti-alcohol, fire protection, anti-burglary protection, home violence etc. - environment protection sorting of the waste, ecological food, highway building, animal protection, littering (trash), dogs excrements - community, social involvement voting (not election campaigning), donations, voluntary work, blood donation, payment of taxes, third world problems - famine, child work, torturing prisoners, women, seniors, gay, disabled etc. rights

  28. What are the topics of social marketing campaigns? • Against smoking • Drug addiction • Alcoholism • AIDS prevention • Health prevention (various diseases - vaccination, preventive examination) • Blood donation, bone marrow donation • Children threats (child labor, child prostitution, bullying, child abuse) • Domestic violence (on women) • Gender issues • Human rights in global scale (prisoners torture, death penalty, human trafficking, women´s rights in Muslim countries, poverty and famine, freedom of speach etc.) • Environmental (pollution, nature) • Environmental cleanliness (litter, cleaning up after dogs etc.) • Waste separation • Protection of animals • Vegetarianism, veganism promotion

  29. What are the topics of social marketing campaigns? • Healthy lifestyle promotion, eating organic foods, etc. • Sports activities for children and youth • Sport activities for disabled people (paralympics...) • Religious (some religions or religion in general) • Anti-war campaigns (or against nuclear weapons, etc.) • Against political ideas (communism, globalization, capitalism) • Anticommercial activism • Against xenophobic thinking (racism, neofascism...) • Rolerance for socially disadvantaged (mentally handicapped, anti-ageism, etc.) • Promoting the interests of employees (salary increase, social conditions, etc.) • Public movement against the (unpopular) political decision • Other topic .....

  30. Features of social marketing campaigns Profitlays in “moral” level, not financial Target groupneedn’t feel the need - the campaign must demonstrate it to the target group and the whole society. Target group something gets and something loses (e.g. traffic speed - the public loses time, but gets safety). The change of target group’s behavior or values influences the whole society Economical costs are often paid not by the provider of the campaign neither target group, but by the whole society (but of course including target groups and the provider) Social marketing campaigns are held in fields of public domain/goods(non-rivalrous, non-excludable)

  31. Character of social marketing campaigns Target: “social marketing campaigns sell the change of behavior or values” Target groups: individuals, groups, society Providers of social marketing campaigns: non-profit organizations, state and public administration, commercial subjects (e.g. AVON campaigns), employees, public, individuals Product of social marketing campaigns - idea or service (intangible)

  32. Social marketing as “selling ideas”: - some ideas borders to ideology - who can tell what ideas are “good” or “socially beneficial” - it is “competition of ideas”, but can we in this case trust to “invisible hand of the market” ? - Social marketing is sometimes similar to: Political marketing ... where is the border between politics and ideology? Church/religious marketing ... can belief be object of marketing? Ecological/environmental marketing ... can be radical “against everything” without alternatives

  33. Ethical aspects of social marketing - dangerous branches - religious, politics - ideology, self-invited “messianism” - anticommercial, antiglobalization etc. activism - destroying the private or public property - anti-smoking campaigns - health is private goods (that means we cannot ban anyone to smoke), but none should threaten other people (public health is public goods) - in campaign we should speak about public goods - shocking, impassion - crying children, injured animals, dying people - may social advertising shock (where is the border)? - may “invisible hand” solve this problems, or should the state regulate it?

  34. Social marketing campaigns “sell” somehow “unpleasant” or “unwanted” ideas change your usual behavior - don’t smoke on bus stops change your pleasant life style - don’t go to your work by car, but by public traffic do something unpleasant or waste your time - assort your trash spend more money - buy food from ecology farming be embarrassed - go in for a colorectal exam risk relationships - take the keys from drunken driver give up leisure time - volunteer give up looking good - don’t sunbath or get solarium, because it is dangerous

  35. Other ways to influence public behavior - may supplement or replace social marketing campaigns - technology automatic seat belts, breath analyzer in car lock - economics taxes on cigarettes, enforcement for littering - legal, political limits for traffic speed of blood alcohol level - education AIDS prevention, consequences of smoking

  36. Successful social marketing campaign - Planning - the four steps: - Analyze - Where are we? - Aims - Where do we want to be? - Ways - How to reach the aims? - Efficiency - How to make the change permanent? - the campaign is successful in case it reached premeditatedly set measurable aims - successfulness in social marketing means permanent and sustainable change

  37. Key elements of successful social marketing campaings 1. Take advantage of what is known and has been done before - reviewing past and similar campaigns can save money - if there are strategies, that have been successful before (towards the same target group), it´s not necessary to make up new ideas - saved money can be spent for example for the space in media

  38. Key elements of successful social marketing campaings 2. Start with target markets that are most ready for action - if the campaign is successful in the target group that already knows the problem, it might be a good argument for the others - people after a heart attack may be inclined to eat a healthy diet - people who tried to quit smoking may be grateful for any alternative to cigarettes - relatives of victims of car accidents can be more easily involved in the campaign for road safety

  39. Key elements of successful social marketing campaings 3. Promote a single, doable behavior, explaned in simple, clear terms - you can explain people why they should eat more vegetables and fruits, but if you tell them "eat five pieces of fruit a day“, it will be clearer for them - you can tell people about the lack of education for children in Africa, but when you say them "send donation SMS and one African child will be able to go to school for a week“, they will understand more easier

  40. Key elements of successful social marketing campaings 4. Consider incorporating and promoting a tangible object or service to support the target behavior - using tangible object is one of the key elements of marketing the services - they are abstract and „invisible“, while tangible object can help understanding - it is possible to persuade people to separate plastics, but if you point a life vest, which was made from PET bottles and saved the child's life, people get reason why sort - AIDS prevention is a complex matter, the ultimate solution is a condom

  41. Key elements of successful social marketing campaings 5. Understand and address perceived benefits and costs - are people affected by the problem that you solve indeed the ones with whom you should communicate? - one non-profit organization wanted to convince women - mothers to breastfeed their children longer. Research identified that the problem isn´t that women would not want to breastfeed, but that they were afraid that if they breastfeed in public, it will be perceived as problematic, and they did not feel the support of their partners. The target group so were the partners and the public, not the women - mothers themselves

  42. Key elements of successful social marketing campaings 6. Make access easy - the new behavior should be as easy as possible - especially in case people are not personally involved in the problem or should do something wasting their time - in Czech Republic the „Donor SMS“ is used - it costs 30 CZK (1,20 EUR). Nowadays many non-profit organisations use it - they promote it on their internet pages or in beneficial TV programs (running for example before Christmas). Formerly you should go with Payment Order to your bank or Post Office, now you simply send SMS

  43. Key elements of successful social marketing campaings 7. Develop atention-getting and motivational messages - adoption will be easy in case people understand and remember it - understand the message and the consequences of refusing

  44. Key elements of successful social marketing campaings 8. Use appropriate media and watch for and exploit opportunities for audience participation - people you want to reach can monitor specific media and it is not necessary to spend money for space in the big national media. This element is particularly important in the context of the Internet and Social Networks development (viral and guerilla marketing) - in Czech Republic the Three Magi (Twelfth Night) Collection is organized by the Catholic Church (Caritas). The collection is carried out by volunteers - children from Catholic communities - in the costumes of the Magi. It builds on a tradition that was interrupted during the Communist period.

  45. Humor and tears in social advertising Campaigns in fields of road safety Nemyslíš, zaplatíš (You don´t think - You will pay) http://www.youtube.com/watch?v=otgH6sFECoM&feature=related Ireland, United Kingdom - the Tears http://www.youtube.com/watch?v=dJqCkp2Bv50&feature=related http://www.youtube.com/watch?v=8Lc6jklKjtA&feature=related http://www.youtube.com/watch?v=NhGVtkecSQM&feature=related http://www.youtube.com/watch?v=vf-X1f8NbgI&feature=related http://www.youtube.com/watch?v=qUJbB4eJnr4&feature=related http://www.youtube.com/watch?v=gYpuPZYrd2M&feature=related http://www.youtube.com/watch?v=5G6vx0GtyEQ&feature=related http://www.youtube.com/watch?v=VgYtFcRO9IU&feature=related Older Czech Ads - typical Czech Black Humor http://www.youtube.com/watch?v=Crd8Ps0Ura0&feature=&p=FF58815E881B02EF&index=0&playnext=1 http://www.youtube.com/watch?v=_5VDQOd2dfc&feature=related http://www.youtube.com/watch?v=OF46Yf-CFmI&feature=related http://www.youtube.com/watch?v=Ud41NnZhkGg http://www.youtube.com/watch?v=TMqSSXtUiWY http://www.youtube.com/watch?v=f1HcVmdVAas&feature=related http://www.youtube.com/watch?v=kUogffLZiHg&feature=related Other countries ... http://www.youtube.com/watch?v=_z8Mnf22D30 http://www.youtube.com/watch?v=v_AMEYsBxZA&mode=related&search= http://www.youtube.com/watch?v=5J58i_qbQxY&mode=related&search= http://www.youtube.com/watch?v=JmnQ9x_NPks&mode=related&search= http://www.youtube.com/watch?v=_ONk5yOpIJ4&mode=related&search=don%27t%20drink%20and%20drive

  46. Anti-smoking http://www.youtube.com/watch?v=lEc-Rsv9pMc http://www.youtube.com/watch?v=wEfOzDZlJuY http://www.youtube.com/watch?v=ZvsVgu4Bgi4 http://www.youtube.com/watch?v=muNne9qBmMk http://www.youtube.com/watch?v=sXAlpHSI-d0 http://www.youtube.com/watch?v=0mFl-x_6m-Q http://www.youtube.com/watch?v=o_BF8l-tT0g&NR=1 http://www.youtube.com/watch?v=i7oX5mRNfAY&NR=1 http://www.youtube.com/watch?v=0hySFt8O11A http://www.youtube.com/watch?v=gEGLlo8IY5E http://www.youtube.com/watch?v=JNjunlWUJJI http://www.youtube.com/watch?v=FZb952X2eLE http://www.youtube.com/watch?v=eB5HN9uO3Bk http://www.youtube.com/watch?v=mrbeEmN-EdE http://www.youtube.com/watch?v=JNlP3ujyYmY&NR=1 http://www.youtube.com/watch?v=aiuxMiwvhZY http://www.youtube.com/watch?v=EypLrQf3rAA&NR=1

  47. Recommended literature Andreasen, A., Kotler, P. Strategic marketing for non-profit sector Kotler, P., Roberto, N., Lee, N. Social Marketing: Improving the Quality of Life www.social-marketing.com etc...

  48. Thank you for your patience:-)