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Chapter 11

Direct marketing and fund raising in ‘not for profit’

organizations

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课堂气氛激励措施及规则

翻译一次可领取一粒阿尔卑斯糖累计翻译两次可以领取山楂卷一小包累计翻译三次可以领取一小包雪丽糍累计翻译四次可领取一条加顿面包累计翻译五次可领取一瓶雅哈或牛奶领取最多奖品的可以选择换领终极神秘大奖！！领取一种奖品后所累计的答题将抵消奖品送完即止、欲领从速（PS：最终解释权归413宿舍所有）

Learning objectives

In this chapter ways that non profit organizations can use direct marketing tools and techniques to achieve their marketing objectives will be examined

Chapter 11

society

GovernmentNon-profit organizations Profit organizations

Marketing campaigns measurable responses desired

Anti drink driving campaign reduction in number of drunken drivers

Boy Scouts adults to become pack leaders Greater involvement in activities and service delivery

Political campaigns votes Greater involvement in activities and election activities

The local church more people attending regularly Greater involvement in activities and service delivery

The Red Cross blood bank donations Greater involvement in activities and service delivery

Some non monetary direct marketing objectives

What does the donor get?

Marketing implies an exchange process. The marketer supplies various benefits, needs, satisfactions and problem solutions in exchange for money or something else form the customer as illustrated, “Marketing exchange process”.

Marketer

A bundle of benefits, need satisfactions and problems

Customer

The price in money or something else

Marketing exchange process

No-profit organization

benefits, need satisfactions and services

Donor or supporters

Time, effort ,money or something else

No-profit organization

Non monetary direct marketing objectives

No-profit organization

benefits, need satisfactions and services

Donor or supporters

Time, effort ,money or something else

No-profit organization

Non monetary direct marketing objectives

In return for supporting a non profit organization a person might receive:

•Recognition from friends, family and the community in general

•Private feeling of recognition

•A feeling that they have done something positive

•Chance to obtain prizes or merchandise

•Merchandise of various descriptions.

Recognition awards

Thank you letters

Lapel pins

Certificates Suitable for framing

Plaques

Special events and dinners

Publish pictures of large cheques being presented by donors

Without payment

Some potential supporters may not wish to give a gift to an organization but are willing to buy merchandise of various sorts.

With payment

swank

Fund raising basics

1. Capital works When funds are needed to set up a new

facility it is common practice to try for large donations from a few individual or corporate supporters

2. Special projects Special projects are often related to

issues that are receiving heavy coverage in the news media

Fund raising basics

3. Covering running costs with budget fundraising Large and small donations from as wide a cross section of the community as possible are sought to cover the organization’s normal operating costs

4. Economics of donor acquisition and renewal Competition for donors is intense. Householders are bombarded with direct mail and telephone calls from worthy causes

1 2 3 6540

246

81012

1416

Additional donors

＄

Marginal cost

Marginal revenue

The economics of donor acquisition and renewal

Donors should be graded and classified according to

Volume of annual donation Length of time they have been a donor Purpose of gift

Grade and classify the donors

What does the donor need

Keep donor acquisition

Direct marketing activities

Cooperation with other organizations

Many community and charitable organizations are able to gain cooperation and support form commercial organizations in their fundraising efforts. An organization planning a raffle or event would often approach business organizations and individuals to donate prizes, equipment and/or financial support. Many businesses are happy to display good corporate citizenship and community support in this manner.

Cooperation with other organizations

Fund of educational institutions including:

Recurrent government funding

Particular purpose grants from various government bodies

Commercial training and consulting activities

Fees and charges

Educational institutions’ fundraising efforts typically target:

Current students’ families and friends Past students or graduates Suppliers Businesses Community service groups and clubs

Income tax deductible

Appeals and approaches

For charity For community amenities For socio-cultural action groups

Putting a human face on an appeal helps

Ensure donors can see themselves helping an individual or family more than an abstraction.

Applying business thinking to worthy causes

LOGO

Chapter twelve

Direct marketing in retail

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Learning objectives

This chapter gives an overview of the main issues involved in retailers using direct marketing techniques to expand their operations.

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Many local retail operations incorporate direct marketing techniques in their business to some degree.

The local supermarket offers a home delivery service so customers without cars can buy large amounts of groceries.

The fish and chip shop gives customers a business card sized fridge magnet so they can telephone their orders in before they leave home and not have to stand around waiting for the food to cook when they get there.

A delicatessen takes orders by telephone, fax and email for home delivery. Customers can see what’s available on a web page or order form a printed price list.

Introduction

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Entry of low cost, price discount operation

Add services and facilities

Cost/price creep

The wheel of retailing

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New types of low cost, low price retailers gain a foothold in the market against established competitors. Gradually over time they add services and upgrade their facilities in order to serve their customers better.

Traditional retailers attempt to maximise the number of people from their local catchment area visiting the store and present their merchandise attractively to gain the highest possible average sale. As a result they are locked into high infrastructure costs.

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omThe high infrastructure are include:

Frequent promotional events and heavy advertising are required to build and maintain a share of the market in the catchment area against the efforts of equally determined competitors.

Inventory must be on hand for customers to buy as lack of inventory means lost sales. A certain amount of inventory shrinkage must be anticipated due to breakages, theft, out of date or spoiled stock and so on.

Staffing with sales people, checkout operators, supervisors, warehouse staff, etc is expensive.

Display merchandise effectively involves high cost shop fittings and display materials and frequent minor and major remodelling of different parts of the store.

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The pattern of customer location

over 50% of customers are usually within 2km

a circle with a radius of approximately 4km would cover 95% of customer for most branches.

1. main road with high vehicle traffic---semicircular pattern

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Retailers need to gain a better return on their investment in facilities. Direct marketing can help them accomplish this through:

Extension of customer catchment beyond the immediate area

Possible reduction of costs associated with maintaining the shop and display facilities.

More efficient logistics, order processing and material handing

Building closer relationships with customers.

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Red light factors: Keep customers from visiting a store – includes travel time and distance, inconvenience, unfamiliarity, image of store or area, more convenient stores offer same value, poor service, etc

Green light factors: Induce customers to visit a store – includes promotional events, advertising, loyalty programs, assortment deals, service not available elsewhere, etc

Extending effective customer

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I market penetrationMore business from existing customersLager share of existing target markets

III market extensionTake existing offering to new geographic or other types of market segments

II product extension and adding value

Target existing customers and market with new offering

IV diversificationNew product/service offerings to new markets

Existing markets New markets

Existing product/serviceoffering

New product/serviceoffering

Some of the directions a retailer can follow to extend effective customer

Modified Ansoff growth matrix

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Market penetration and product extension implies mining more business from the existing market and operation.

You can gain more business from your existing customers if you can induce them to increase their average order size, buy more frequently. This can be accomplished by a well thought out calendar of promotional events, loyalty programs and frequent customer contact.

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Gaining repeat business

Targeted diect mail based on information from customer history databaseCoupon and discount offers

Inventory liquidation

Bundling offersIncreasing size of sale

Special eventsDiscounts and coupons

Building store traffic and initial visits

Coupon and discount offersAcquiring new prospects

Letterbox dropsDirect mailSpecial eventsParticipation in group promotional mailings

Increasing awareness

Gaining initial trial

techniquesType of objective

Some techniques used to gain more from the retailer’s catchment area

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Communicating with the customer

What do you say?

How do you say it?

Where do you say it?

When do you say it?

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Communicating with the customer

What do you say? Direct marketing differs from general

advertising. Advertising builds awareness so that the buyer recalls the retail operation favorably when ready to buy.

Retailers could offer: Good prices Combination deals Premiums when a customer buys Free giveaways if a customer attends Entertainment Competitions

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How do you say it?

Some retail organizations like Myer and Daimaru put out very high quality publications designed around seasonal themes with sophisticated design concepts. However, most retailer direct mail is not well done and is an attempt to get as many specials on a page as possible so that it looks like a checkerboard of small pictures, big prices and tin abbreviated descriptions.

Dare to be different. The retailers’ direct mail package or letterbox material needs to cut through the clutter. Your material needs to stand out from all the stuff jammed into the prospects’ letterboxes—it’s a victory if it past the rubbish bin. There needs to be a reason for them to pick it up and read it and for the message to capture a customer’s consciousness, which is undoubtedly occupied by more important things.

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Where do you say it? Some retailers use newspapers,

magazines and electronic media to stimulate store traffic events or warm up customers and get them to watch for the deal that will be coming soon in their letterboxes.

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When do you say it?Some annual occasions may be appropriate for promotional

events: First day of school Valentines' Day Mother’s Day Easter Father’s Day Show day or a local fair Opening of ski season Last day of school Christmas Boxing Day Halloween First day of fishing season First day of summer.

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Many of these occasions will be used as themes for various firms’ promotions. Customers’ mailboxes will be stuffed with advertising competing for their attention because people are used to spending at these times.

Marketing effort flights

Time

Aw

are

ness a

nd

re

call

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Consumers are willing to pay to save time, while marketers are eager to get attention. Permission marketing involves only talking to people who will pay attention to the message.

Permission marketing

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The permission marketing methods that can be used to build a loyal retail customer base:

Offer the prospect an incentive to enter a relationship with the store and pay attention to its messages. Customer retention programs should be used to increase the durability of relationships.

Teach the customer about your product or service over time.

Deepen the relationship and obtain relevant information from the customer with additional incentives.

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Building the retailer database

Incentives to register might include tactics like:

A free gift to every customer who fills out a registration card. A hardware store supermarket might give each registrant a free pair of pliers. A stationer might offer a free pen or some floppy disks.

A sweepstake offering a number of major prizes but allowing every person who registers to win something. Naturally they will have to come in to the store in order to obtain their prize

A gift certificate redeemable for $5 or $10 off the normal retail price of anything in the store.

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The incentive to register purchases might be:

Special discounts for registered scheme members — this might include several levels of membership depending on the amount spent over the year

Points schemes allowing customers to accumulate points that can be redeemed for worthwhile prizes or merchandise

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Loyalty building techniques could include

Advance notification of sales and special deals before they are announced in advertising media to the general public

Advance notice of new shipments of special merchandise that a client seems to be interested in

Regular informative newsletters that offer useful information and solutions to customer problems

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Summary

Direct marketing techniques allow retailers to build a customer franchise while keeping cost under control. It is possible for the retail to expand business well beyond the normal catchment area.

Retailers can expand their business by attempting to gain more business from their current markets with their existing product/service mix, taking their present offerings to new market segments, introduction new product/market area.

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