Successful Marketing Strategies for Nonprofit Organizations: Winning in the Age of the Elusive Donor, 2nd Edition

Preface xv

Acknowledgments xxxi

Part I Introduction 1

Chapter 1 A New Way of Doing Business for the Nonprofit Organization 3

The Need for a New Marketing Orientation 4

Dealing with Nonprofit Organizations in Flux 5

Marketing to the External World 10

Marketing Defined 10

Develop an Outline of Marketing Strategies 13

The Marketing Task 18

Marketing Tools 22

Use Distinctive Competencies to Assess the Competition 26

Summary 27

Chapter 2 The Development of a Marketing Strategy 29

Why a Marketing Strategy? 31

First Steps in Defining Strategy 33

The Operating Environment’s Effects on Marketing Strategy 38

First Steps to a Competitive Strategy 47

Breaking with Tradition to Remain Flexible 48

Summary 49

Chapter 3 The Phased Strategic Marketing Plan 51

External-Analysis Phase 52

Internal-Analysis Phase 56

Market-Development Phase 57

Strategy-Selection Phase 59

Presentation of the Plan 59

Summary 60

Part II The External Analysis 61

Chapter 4 External Analysis: Client, Donor, Volunteer, and Competitor Research 63

The Importance of Continuous Listening and Analysis 65

Building a Rationale and Addressing Objections to Stakeholder Listening and Research 66

Other Research and Listening Concerns, Including Flexibility 71

Start with Clients, Volunteers, Constituents, Customers, and Donors 72

Segmentation as the Next Step 73

Enduring and Dynamic Segmentation Variables 74

Describing Clients, Donors, Volunteers, Customers, and Constituents 81

Additional Segmentation Strategies Following an External Audit 83

External Analysis of Competitors 84 Positioning to Understand ‘‘the Market’’ 87

Ways to Identify Competition 87

How Nonprofit Organizations Compete 88

Summary 91

Chapter 5 Researching Your Nonprofit Organization’s Environment 93

The Nature of a Nonprofit Organization’s Environment 94

External Analysis, Competitors, and a Nonprofit’s Environment 95

The Actual and Potential Size of the Competitive Environment 96

How Is the Environment Structured? 98

How Nonprofit Organizations Enter an Industry 103

How Does the Nonprofit Organization Deliver Its Services? 106

What Is the Potential for Growth? 109

Relating Product Life Cycles to a Nonprofit’s Growth Potential 111

Differentiating a Nonprofit Based on External Analysis 113

Summary 117

Chapter 6 Competition and Internal Marketing Analysis 119

Reasons for an Internal Examination 120

Measuring Past and Current Performance 122

Dealing with Strategic Problems and Uncertainty 132

Assessing the Organization’s Strengths and Weaknesses 137

Looking for and Managing Long-Term Relationships 141

Cost and Performance Analysis Helps Define Success 143

The Internal Audit Helps Define Organizational Strengths and Weaknesses 144

Summary 145

Chapter 7 Value Propositions and Marketing Objectives 147

Would Anyone Miss You If You Went out of Business? 147

Why Should a Nonprofit Organization Worry about Objectives? 147

Developing Organizational Objectives 148

Using Objectives to Excel in Marketing 153

Marketing Performance Comes with Measuring Company Objectives 155

Staying Competitive 165

Summary 166

Chapter 8 Creating Competitive Advantage 167

Strategy Options 168

The Most Popular Strategic Orientations and Their Application to the Organization 172

Matching the Market 176

Tactics for Achieving Competitive Advantage 177

The Sustainable Competitive Advantage 178

What Constitutes a Sustainable Competitive Advantage 178

Augmenting Success 181

Market Strategies 182

Summary 185

Chapter 9 Winning through Competitive Strategy Options 187

The Nature of Strategy and Its Uses 188

Environmental Context and Strategic Options 191

Strategy Frameworks 193

Strategy Models 194

The Portfolio Framework 196

The Forces of Competition 198

Porter’s Three Competitive Strategies 202

The Planning Process Framework 203

Summary 205

Chapter 10 Creating a Competitive Image and Brand 207

Brand Formulation 208

Merging Brand and Strategy 211

Using the Brand Strategically 216

Reaching the Branded Goals of the Campaign 219

Summary 228

Epilogue 229

Notes 237

References 243

About the Author 245

Index 247