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Elaine Fogel Elaine Fogel   Bio
07.11.07

Nonprofit and Social Marketers Have the Toughest Challenges

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I'm at the AMA Nonprofit Conference in Washington this week and the keynote speaker, Alan R. Andreasen, Professor of Marketing at Georgetown University, says that nonprofit and social marketers are potentially the BEST marketers because they have the toughest influence challenges. Now maybe you corporate marketers disagree, so read on..

Professor Andreasen, who also happens to consult in the social marketing arena, says that nonprofit and social marketing is "doubly hard because key challenges are often upstream." In fact, nonprofit marketers are often seen as second class citizens who can't hack it in the private sector.

They try to push feel good ideas and services. There's also a misperception that nonprofit marketers have little idea what tough competition is really like. What's worse is that, "Many nonprofits and government figures think of us as evil!" Yet, many nonprofits look a lot like the private sector. Examples: universities, hospitals, etc. which all have products, services, prices and revenue.

Social-sector marketing, adds Andreasen, "is a lot harder than economic sector marketing because the benefits are invisible and often far in the future." Benefits are mainly to third parties; organizations often work with tiny budgets compared to the challenges; and there's more public scrutiny than in the private sector.

So, what do you think? Can your company's marketing challenges compare to the ones that are overwhelming to solve? Is marketing soda, pet food or accounting services easier than trying to feed the world's hungry, stop global warming or house the homeless?



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Elaine - Interesting theory about non-profit vs. business marketing.While professionallly, I've only been on the business side, I'm closely involved with three non-profits as a Board Member and/or volunteer. Non-profit marketers that I know are well aware that they're in a highly competitive world,especially for the fund-raising dollar.

And within those fund-raising efforts, there seem to be all kinds of hierarchies: It's easier to raise money for children with cancer than it is for the homeless, who are often seen as homeless through their own bad choices. It's easier to raise money for a hospital than it is for an organization that benefits "struggling artists." Some "value propositions" are just stronger than others. The non-profit world is no different in this sense.

Posted by: Maureen Rogers | 07.11.07

Elaine,

I have worked both sides of the aisle, and I agree that non-profit marketers experience a kind of living hell. But the problems aren't external, they are internal.

In my experience, the target audience is far more receptive to the messaging because non-profits communicate with those who have already bought into the idea. Or at least they should.

Unfortunately, non-profits leadership often believes that everyone should buy into the message, so they think everybody represents a potential "customer." That is a killer philosophy for any marketer. Furthermore, few non-profits run anything like a business. Instead, they are slow to make decisions, don't collaborate well, and believe all ideas are good ideas. At least that was my experience, and I am glad to be away from working with or for non-profits.

Posted by: Lewis Green | 07.11.07

So, Lewis, how do you really feel? :) I totally agree with you. There are about 300 nonprofit marketers at this AMA conference and many want to know how they can convince their CEO's or executive directors that marketing is more than communications and publications.

There seems to be a reluctance by many nonprofit leaders to embrace more of a business-like approach. Business is not a dirty word, and the nonprofit marketers "get" that. Yet, the boards and senior management teams don't always see the value or benefit that marketing brings to the table. That's our challenge as marketers. We need to make the case and shout it from the rooftops.

And BTW, isn't this problem pervasive in the for-profit sector, too? Otherwise why would Roy Young be writing about making marketing matter to the CEO?

Maureen, I agree. When I worked for the breast cancer cause, my phone rang off the hook. When I worked in the physical disablility world, it was a much harder sell.

Posted by: Elaine Fogel | 07.11.07

Elaine-
Thanks for this post!

I have found that nonprofit marketing is no harder or easier than corporate marketing. Each represents unique challenges, just as can be seen in the corporate world from industry to industry.

Marketing breast cancer may appear easier because it seems to have a stronger base of supporters or higher value proposition, but all nonprofits have and can develop relationships with evangelists for the cause who can help in creative marketing efforts, especially online through viral and word of mouth tactics.

Posted by: Jacob Wolfsheimer | 07.11.07

Thanks for your comments, Jacob. I agree with you that each mission, whether for-profit or non-profit, can have its own unique challenges. I think Professor Andreasen meant that some nonprofit missions are overwhelming to reach and hard to market because the benefits are long into the future. For example, when selling a product, the buyer benefits immediately. When donating to end global warming or world hunger, supporters must buy into a future benefit. That makes this type of marketing much more challenging than marketing a "now" product or service.

Posted by: Elaine Fogel | 07.12.07

I have worked with many nonprofits all of whom have now embraced social marketing. I now work for an association (still a nonprofit) that follows a corporate model. They are not eager to embrace social marketing because there is a fear something negative will be said. Do you know of any associations that are using social marketing and it is working?

Posted by: Meg | 07.12.07

Hi, Meg. That's a good question. Do you mean something like a medical association marketing a smoking cessation campaign? If you give us a hint as to what your association's mission is, I'm happy to ask my nonprofit marketing colleagues if they know of any examples.

Posted by: Elaine Fogel | 07.12.07

Hi Elaine,

Thanks for offering to help. Yes, I work for a membership association for medical professionals. The issue isn't so much a particular campaign as it is opening up a conversation with members. The issues seem to be control of what is said and the fear of something negative being said. So, if there is an association that has a blog, for example, I'd like to be able to show it to my colleagues.

Posted by: Meg | 07.12.07

No problem, Meg. What a guess on your membership! Send your e-mail address to me at info(at)solutionsmc.net and I'll let you know what I hear back from my colleagues.

Posted by: Elaine Fogel | 07.12.07

Elaine,

I personally have a VERY positive view of the non-profit sector and, in fact, our firm offers a discount to non-profits.

I have have worked for non-profits in the past and see there are very committed and effective people in that sector. There are slackers in non-profits, like any company, but many people are passionate beyond what I have seen in the private sector.

Posted by: Neil Anuskiewicz | 07.19.07

What about PR potential- don't you feel that non-profits, especially those that work for charitable efforts and social causes, have an advantage in getting free publicity?

Posted by: Brian Carter | 07.19.07

Sorry it took so long to respond. I did two presentations today at a national conference.

Neil, I'm sure the nonprofits that benefit from your discount appreciate your gesture. I agree - nonprofit employees tend to be very committed to their missions.

And Brian, in my experience, a story has to be newsworthy to garner pick-up. So, I'm not sure nonprofits always have an advantage. Plenty of releases wind up in the recycle bin especially when they're about mundane things like annual meetings and open houses. Nonprofit leaders often expect staff to issue releases when they aren't really warranted. The stories that have human interest and tell how people's lives have been changed are of greater value, and maybe there, nonprofits can have an advantage.

Posted by: Elaine Fogel | 07.20.07

Elaine,

I have to agree. As a professional search engine marketer running both non-profit and commercial campaigns, I can tell you that there is limited search traffic for non profits. Even the term "non profit" gets only 200 searches per day- and the majority is that debt counseling. So non-profits that want search traffic have to play in the commercial arena-- bidding on "ecards" for example. They may or may not have the budget or ROI justification to enter those areas.

Fortunately, there are programs like Google Grants, where certain non-profits get free search budgets to buy terms. I and folks at several other SEM (search engine marketing) firms provide such services for free or reduced cost.

Dennis

Posted by: Dennis Yu | 07.30.07

Even longer in my response- not tracking my comments!

Ouch, well it seems then NPO's have an even worse time- same PR challenges with less income to drive their efforts.

Posted by: Brian Carter | 08.09.07

I am part of a non profit that employs roughly 400 employees and does not have a marketing department. Yeah, I said no marketing department. I want to convince the Executive Director that at least a two person marketing team is necessary. How can I go about making the argument? What kind of statics could I use? Upper manangement always likes facts and figures. Is there any information out there about how much better a non profit that has a marketing deparment does monetarily and public relations wise than one without? Where can I begin to find this informaion? Any help would be greatly appreciated.

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