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Professor Chris Gadomski Hunter College Spring 2008

Nonprofit and Social Marketing. Professor Chris Gadomski Hunter College Spring 2008. Thinking About You… and your customers. Value Proposition. Assess your core competencies Competitively superior Allign brand value with customer value What does Blue Ocean Strategy tell us?

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Professor Chris Gadomski Hunter College Spring 2008

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  1. Nonprofit and Social Marketing Professor Chris GadomskiHunter CollegeSpring 2008

  2. Thinking About You… and your customers.

  3. Value Proposition • Assess your core competencies • Competitively superior • Allign brand value with customer value • What does Blue Ocean Strategy tell us? Value Proposition—add value reduce costs How can you sustain this?

  4. JetBlue—values • Caring • Safety • Integrity • Fun • Passion

  5. Enron • Innovative • Rich • Connected • Competitive • Fast • Smartest People in the Room?

  6. Enron Values?

  7. How clear is our message? Find a niche and fill it!

  8. Gaining Insights What are we selling? What’s our brand? Product or marketing oriented?

  9. Customer Behavior…Steps in the Buying Decision Process • Problem Recognition • Information search • Evaluation of alternatives • Purchase decision • Post purchase behavior

  10. Customer Profitability • You want a lifetime stream of revenue • Best to catch them while they are young, • then build share of wallet, • ie., cross sell and up sell • Assess the value of your customers • Platinum—build these • Gold—not bad • Iron—needs work • Lead—lose them!!!

  11. Customer-Product Profitability Analysis

  12. Retaining Customers • Acquiring new can cost 5X more than satisfying existing • Average company loses 10% a year • Reduce this by 5%, increase profits by 25 to 85% • Profitability increases over time

  13. To Retain Customers…build structured ties • Create long term contracts • Charge a lower price to consumers who by larger supplies • Turn the product into a service • Examples???

  14. Firing Customers • Who has been fired? • Who has fired a customer?

  15. Connecting With Customers Are you product, sales or target audience oriented? 1) success comes to that organization that best determines the perceptions, needs, and wants of target markets, and 2) continually satisfies them through the design, communication, pricing, and delivery of appropriate and competitively viable value propositions. Source: Andreasen & Kotler

  16. Target Audience-Centeredness • To whom are we planning to market? • Where are they to be found and what are they like? • What are their current perceptions, needs and wants? • Will these change shortly?…or over time? • How satisfied are our target audiences with our value proposition? Source: Andreasen & Kotler

  17. To whom are we planning to market? • Think segmentation • Nike in China • Athletes • Yuppies • Students • Parents • Sport teams • The government • Peasants • Regional? • Think segmentation • Private school • Parents • Alumni • Local businesses • The wealthy • Special interests • The government

  18. Where are they to be found and what are they like? • Nike In China • Major cities • On campus • At home • Provincial seats • Country side • Along the coast • In the factories • Private School • Parents at home • Alumnae are scattered • Businesses are local • Wealthy are ? • Special Interests • The government in Albany

  19. Private School A leader A laggard Special niche Affiliations Sponge worthy? Nike in China Expensive Status Comfortable Prized Professional Cutting edge Western Sports leader Cool? Current Perceptionsand will these change?

  20. A private school that is dedicated to the intellectual, spiritual, and moral development of young women encouraged to celebrate the richness of their diverse ethnic, socio-economic, and religious backgrounds Nike in China was smart because it didn’t enter the market selling usefulness, but rather selling status representing “Western” culture at $100--twice the price of the competition. Value Proposition

  21. Value Proposition Vs Unique Selling Proposition…What is the difference?

  22. Value Proposition… maximizing the perceived benefits and minimizing the perceived costs. Source: Andreasen & Kotler Unique Selling Proposition is a brief statement that clearly, concisely and compellingly states the unique strengths and vision that your company or product brings to the marketplace. Source: Ralph Wilson The difference

  23. The SWOT Analysis • Strengths • Weaknesses • Opportunities • Threats

  24. Nonprofit Marketing Challenges • What target audiences do we wish to address? • What potential clients? • Donors • Volunteers • How do we position ourselves against the competition? • How will we organize our marketing?

  25. core marketing strategy • Specific target markets-- • choose one or two • Competitive positioning- • define it clearly • Key elements of the mix-- • differentiate yourself from the competition

  26. Profit vs. Nonprofit • Volunteers? • What potential target audience/clients? • Is there a difference? • Donors? • Non Donors, Impulsive, Habitual, Thoughtful • Lead, Silver, Gold, Platinum

  27. JaguarUnited Way • Target Market • Competitors • Positioning • Key Benefits

  28. What is a marketing fault line? • That dangerous, unstable seam in the economy or our civilization where powerful and often destructive events, developments, innovations and savage competition meet and create market-shattering tremors • It is where opportunity beckons….

  29. Three stages of target marketing

  30. They are: • Market Segmentation • Target marketing • Product Positioning

  31. Market segmentation • Who are the various different groups, age, demographics, psychographic, geographic, cultural, etc. that might be interested in our product.

  32. Pick One • Target Market • Select one or more of the customer segments previously identified. • Who is/are the low hanging fruit?

  33. Focus your message • Product positioning • Design the so-called “marketing mix elements”, including the marketing communications to fit the target market

  34. The challenge • Having identified the right segment and created the right marketing messages, • The challenge is deploying or exploiting the right media vehicle

  35. This leads to • Precision marketing • Pick the right customer • Deliver the right message • Through the right channel • At the right point in time

  36. Easier Said Than Done • AMC’s Breaking Bad • Motorized wheelchair advertisements • Quite the disconnect…what proportion of viewers need motorized wheelchairs? • Other examples?

  37. Contextual Advertising • If content is king, • Then context is the emperor • For example: • Sponsored links on google/yahoo/msn • Sponsored links on gmail

  38. To be continued….

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