It's a BRAND New World

Marketing for Non-Profits: It Can Be a Socially Useful Activity?

2009-07-23T12:07:00.000-07:00

In the wake of the recent Wall Street bail out, the Ponzi schemes and the automotive industry failures, it is very easy to be cynical when it comes to corporate values and activities these days. But lets not be so quick to throw the baby out with the bathwater.

In many people's minds, marketing connotes a function that is specific to business firms. Marketing is often believed to be simply a process of finding and stimulating buyers for a firm's products.

But the truth is, marketing is so much more than that and as you understand what makes it so, you can easily see how it so relevant to the Advancement world today.

In business terms, marketing consists of identifying and developing your product or brand…pricing it…determining how to reach potential customers and then ultimately developing, implementing and managing a promotional strategy.

You can easily see how these principles are applied to simple consumer products like toothpaste and breakfast cereal. But lets not forget that political contests, student recruitment and fundraising are all "causes" that need to be adeptly marketed in order to be successful.

For many years, these areas of marketing were ignored by the academics, or at best, glossed over as public relations or publicity activities.

It seemed like there was never any attempt to redefine the meaning of "product development", "branding", "pricing", "distribution" and "promotion" in terms that related to the not-for-profit world. No one seemed to be examining whether the principles of "good" marketing in traditional product areas were truly transferable to the marketing of causes, services or ideas.

It seems like the world has evolved so that these conversations are now beginning. From what I have seen by attending various CASE District Annual Conferences, the topic of marketing is at least getting a placesetting at the table for discussion.

There is a great opportunity however for marketing people to expand their thinking and apply their skills to an increasingly interesting range of social activity. But, that will not happen unless marketing continues to garner a broader sense of acceptance in this arena. This writer still feels that there is significant resistance and a continued fear of being associated with the more narrowly defined business activity that has taken place in the for-profit world.

Lets face facts...Not-for-profit organizations are accounting for an ever increasing amount of work being done in our global society. Many of these organizations can become enormous and require the very same management skills as traditional businesses.

All of these not-for-profit organizations perform classic business functions. There is the "financial" function of managing the process of funds coming in and how they are budgeted according to sound business principles. Every organization must perform a "production" function that relates to arranging the inputs that are used to produce the outputs. Every organization must perform a "human resource/personnel" function to manage the hiring, training, assigning and promoting of the individuals doing the work and every organization must perform a "procurement/purchasing" function to acquire materials in an efficient and cost effective way.

Can you imagine any organization not addressing any of these functions in earnest? I don't think any of you would have any reservations about allocating resources to any of the above business functions. They all are very necessary to the success of any organization.

Ok then...what about Marketing? Is Marketing not as important to the viability of an organization as any of the other functions?

For some reason, not-for-profit organizations have traditionally not embraced the idea of implementing a comprehensive marketing plan. I have heard everything from "We don't want to appear too corporate." to "We can't afford a comprehensive marketing strategy." It just may be that you can't afford NOT to have one today!

Marketing is what and how you communicate your brand. Marketing is how we get to know a brand...to trust a brand. It is how we get comfortable and connected to a brand. It is the first step in creating a relationship with the brand. The more a brand is kept in the forefront of our minds, the longer and stronger the relationship with that brand becomes...the more likely a person will become invested in that brand either emotionally or monetarily.

Communicating a brand message...Creating relationships toward developing Client Loyalty and a Commitment to the Brand. Sound familiar at all?

Hmmm...are the "3 I's" (Inform...Involve...Invest) still a part of the Advancement vernacular?

I submit that marketing should be the most thought out component of any fundraising effort, campaign or organization. Without this first step - the marketing - the relationship with the brand can not be developed to its full potential.

Marketing is so much more than just sending out mailings, creating a website or having a presence on Facebook or Twitter.

In Advancement terms, a comprehensive marketing strategy consists of the "develpoment of the product" or "your brand's vision" for a more valuable and robust experience for your constituents.

It involves the "pricing" or the "accessment of financial commitment" needed to acquire the vision.

It addresses the "distribution" or "buy-in" of the vision by the entire organization and all of its representatives

...and it requires the "promotion" or "communication" of that vision to your various constituents or potential consumers.

So as you look at how you are creating relationships with your constituents...how you are communicating your brand message...how you are creating "front-of-mind" experiences to develop trust, comfort, loyalty and investment in your brand...you need to ask yourself...Are you truly marketing?

The Most Effective New Branding Tool Today!

2009-07-06T11:39:00.000-07:00

I hope everyone who just had their year end saw your very hard work pay off with as much success as possible in this challenging economy. I applaud you all for the tireless efforts that allow our not-for-profit institutions to continue and thrive over time. Congratulations for all of your accomplishments over the past year!

With a new fiscal year beginning for many, I thought I would share with you a branding tool that could be the most effective and relevant piece I have ever seen.

It relates to males, females, young or old, all income levels and coming from any part of the world.

It can be easily mailed in an envelope, sealed to a post card or handed to someone in person.

But the most impressive thing about it is that the recipient will think about your brand and institution multiple times each day. In some cases...DOZENS!

For Admissions efforts, it might be the very best way to keep your institution's branding and your web address in front of high school students.

For Advancement purposes, it is perfect for a Reunion Souvenier, a Phonathon Volunteer Gift, A Special Event or Campaign Announcement or simply an Annual Fund Gift Thank You.

And best of all...depending on how many you produce, the cost could be right around $1.00 each.

This new screen cleaner design is an ingenious piece of "techno-function" that cleans the screen of your cell phone or smart phone without any liquids, chemicals or sprays.

With a self adhesive backing that leaves no residue at all, it attaches to the phone and is a constant brand reminder for the user. Just peel it off the device, wipe your screen and all smudges from oils or make up wipe right off. When done, just stick it right back onto the back of the device and it stays put to continue as a brand reminder for your institution.

Anyone with a cellphone is a potential user of the product! It crosses over such a wide demographic that it becomes the perfect promotional branding piece for all ages.

For teens, I can speak from personal experience with my own teen aged son. He averages about 100-150 text messages or calls each day. That adds up to dozens and dozens of brand hits each day! Now that is Return On Investment!

Imagine the teens that schools are mailing to for recruiting purposes getting one of these in the mail or at a college fair and how it would be a constant reminder of your school and your web address for them to use as a reference. And imagine how many more of their friends will see it at school and be exposed to the branding as well.

When I gave one to my son, he told me that dozens of his friends wanted to know where they could get one as well. It became viral!

If this sounds interesting to you, contact me for more info and a sample of this new product at matt.siegel@kreoinc.com .

Happy branding!!

One Million Marketing Impressions in One Day!

2009-06-23T07:51:00.000-07:00

It has been said that the Harley-Davidson brand is one of the strongest brands in the world. Proof of that lies in the fact that Harley-Davidson has become so ingrained in the lives of its loyal enthusiasts that some actually tattoo the brand onto their skin.

And if it is not tatooed directly, it is on their shirts, their jackets or anywhere else they can proudly display the brand on their persona.

The beauty of this is found in the marketing value behind this brand loyalty. Not only are the enthusiasts reinforcing their loyalty with each branded piece they wear, but they are proudly endorsing and advertising the brand to many others. Just like the Coca-Cola example discussed in a previous blog entry.

And we are not talking about just the "Hells Angels" crowd either. On the contrary, the average Harley-Davidson owner is a middle to upper class male in his mid-forties. These are doctors, lawyers, accountants and other professionals making a very nice living. Sounds a lot like the same demographic that a school might be targeting for philanthropic purposes...doesn't it?

Why wouldn’t your university want your loyal alumni to do the very same thing for you? Wouldn’t you like your school to become that ingrained in the fabric of the lives of your alumni? What if all of your alumni could become walking advertisements for your school also?

How many people would see your branding in the course of a typical Saturday if your alumni were wearing just a simple tee-shirt with your branding spread across the front of the shirt?

Would 25 people see it at the supermarket? Would another dozen notice it at the local Home Depot? Possibly another 25 would see it at the Little League or Soccer game. The number for the day could easily hit 100 and then some. All without doing anything different than the usual errands and activities of a typical Saturday in May or June.

Now do the math. Lets say we select a targeted group of alumni. Maybe all alumni in the 35-45 age range who you have good addresses for. Lets say that this target group comes to 10,000 alumni in total who are sent the tee-shirts and asked to wear them on a very specific day. There should be a definite call to action with a defined rational behind it.

Maybe the day is your school’s special anniversary…or maybe it is to commemorate the kick off of a new campaign…or maybe it is just a tribute to this year’s graduates. Bottom line is...you could get 1 Million marketing impressions all on the same day! What would you normally have to do to get that kind of exposure? Run a television ad? How much would that cost?

The bonus is that the shirts would be worn again and again. The residual marketing value would continue to pay off for as long as these shirts are worn.

You would get all of the following from this kind of program:

1) The good will of the school actually giving something back to the alumni. Alumni would love to get a free tee-shirt from their school.

2) The opportunity to create a great deal of "buzz" in the community, in the media and with your entire alumni base around this special one day event.

3) The residual marketing benefits of your brand continually being seen every time the shirt is worn for millions more marketing impressions over time.

Not a bad deal for a $3.00 tee-shirt investment, is it?

And by the way, this is not a new concept folks. The NFL, Major League Baseball, NCAA, Nike and other brands are making millions and creating more and more loyal enthusiasts every day based on doing the same. They have woven their brands into the lives and lifestyles of their target audiences.

My twelve year old son is a great example. For whatever the reason, Nike has created a very loyal brand enthusiast in my young seventh grader. Nike shirts…Nike hats…Nike backpack…etc.

But an interesting thing happened recently. When I was given a hat with my college logo on it, my young Nike "brand snob" had swiped that hat for himself inside of a week. When I asked him why he took my hat, the reply was, “Because that is where you went to school and I may want to go there someday!”

Hmmm…interesting isn’t it! Getting that feedback about the school just because I had that hat! And it didn’t even have a Nike logo on it!

And now all of his friends at school will see that hat and learn a bit more about my alma mater from him.

Branding at its best.

I hope this makes you think a bit about the power of branding and just how it can help your efforts.

If you have thoughts about this or would like to know more about this kind of a program, please contact me and I would be glad to help!

Happy branding!

Does Your Direct Mail ROI Need CPR?

2009-06-11T13:17:00.000-07:00

With the fiscal year end approaching for many of you, the state of the economy has surely left an imprint on your bottom line.

But at the same time, the new year is almost upon us and it seems as though the bleeding has at least been slowed and a blank canvas awaits you for the coming year.

In these challenging times, maybe the traditional brushstrokes you have been using in the past could use some additional creativity to take your work to the next level.

Your first thought might be…”But Matt, budgets for the coming year are going to be stretched more than ever…how are we supposed to be more creative with less resources?”

Glad you asked. Here is how. Be smarter. Make those budget dollars work harder for you.

Specifically, if you are not evaluating the Return On Investment (ROI) for your direct mail programs by using a Cost Per Response (CPR) method, then you should be.

The goal of any marketing campaign is to get responses. Whether these responses result in purchases for businesses or gifts for not-for-profits, the desired response is what you are ultimately paying for with direct mail campaigns.

So it should make perfect sense that the proper parameter for measuring the cost of a direct mail campaign is the Cost Per Response, or cost per dollar raised in this case. It needs to be a results-oriented measurement or you are just spending without ever knowing what you are getting back for your money.

Here is an example with simple numbers of how direct mail has traditionally performed…

50,000-piece mailing @ $0.50 each = $25,000.

0.8% response rate = 400 new donors

Average Gift @ $40 = $16,000 Revenue

Net for Campaign: $9,000 loss

Cost per Response = $22.50 each

From this example, we can see that the end result is a net loss for the mailing campaign. Ask yourself this...if you knew that you were going to lose $9,000 before you did the mailing, would you still want to do it?

Maybe…but you would obviously want to achieve a net positive gain for the campaign. Here is how you can do it…INCREASE YOUR RESPONSE RATE!

Ok Matt…big “duh” on that one. No kidding. But how do we do that?

It’s not as hard as you may think. There are products and technologies out there that are proven to increase response rates by over 300%. When these technologies are applied creatively, they can be very powerful.

One such application is Personalized Imagery. With this process, fonts are created and incorporated into the image. These fonts are then used to personalize the piece to an extraordinary level. The end result is a direct mail piece completely customized and uniquely relevant to the recipient.

I am showing two sample applications for you to see here. The first is an Admissions piece that is highly personalized in 3 different locations within the image.

The car's license plate has the recipient's name on the personalized plate...the window sticker in the hatchback window is the recipient's high school and the road sign reflects how far it is from the recipient's home town to the college.

The Advancement piece was created from a picture taken during an actual football game and the scoreboard was digitally enhanced to feature the recipient's name as if it was displayed on the scoreboard during the game.

These are just two examples of how Personalized Imagery can be developed for your direct mail campaigns.

Lets look at what could happen to your ROI with this kind of personalization.

For this example, we will examine a more targeted audience and cut the volume in half to 25,000. The cost per piece will be a bit more expensive but the resulting lift will more than make up for that.

25,000-piece mailing @ $0.82 each = $20,500.

3.0% response = 750 new donors (at a 329% lift)

Average Gift @ $40 = $30,000 Revenue

Net: $ 9,500 gain

Cost per Response = $(12.66)

You more than covered the cost of the mailing with your net result. There is a very measurable $18,500 swing in your favor!

Bottom line...if you want to get the attention of someone you know in a crowded and noisy room, you don't shout out "Hey You!" You use that person's name to get their attention.

Mailboxes today (both physical and electronic) are a "crowded and noisy room". You need to get personal to get someone's attention.

Personalized Imagery is a great way to do just that. It can be just the answer for your Direct Mail and the CPR your ROI needs!

Let me know what you think...

What can Not-For-Profits learn from the World’s Best Brands?

2009-06-03T10:56:00.000-07:00

“A brand should strive to own a word in the mind of the consumer.”

Al Reis and Laura Reis, from The 22 Immutable Laws of BRANDING

Pop quiz for you…

What is the world’s best brand today?

Kodak? Xerox? Mercedes Benz? All were in the top ten at one time but do not crack the list any longer.

There are different ways to slice and dice the pecking order of which brand comes out on top. There’s the “Most Valuable”, the “Most Recognized”, the “Most Powerful” and so on. So to simplify the discussion, let’s just list the top five in alphabetical order…

Coca-Cola
GE
Google
IBM
Microsoft

Of those five, Coca-Cola and Google are the ones that share the number one rankings on the various lists I have seen.

The differences between these companies are enormous! But it is in their similarity that we can learn so much about successful branding!

One company is over 100 years old while the other is just over 10 years old. One has been a manufacturer of consumer products that people around the world have enjoyed for generations, while the other is a high tech internet based search engine whose brand name was officially added as a verb to both the Merriam Webster Collegiate as well as the Oxford English Dictionaries in 2006.

Let’s see what we can learn from Coca-Cola first.

With the turn of the new millennium in 2000, Coca-Cola established a new goal for their company…”To become the world’s premier relationship company.”

They set out to deliver deeply resonating consumer brand experiences by doing the following:

Create memorable connections with their consumers.
The consumer was going to be respected. They would feel like they are a part of the brand…much like a fan of a sports team feels like they have a stake in the team.
There would be the ability to customize a brand experience for different consumer segments.
Opportunities would be developed for consumers to identify with the brand.
They were going to be different, better, and special”

What they did was set a goal to become a larger part of people’s daily lives. They could no longer rely strictly on their history and reputation. They were going to be more relevant to the consumer!

They began by changing the focus of their slogan from themselves and their products to the consumer. In 2000, the slogan was changed from “Always Coca-Cola” to simply “Enjoy”.

Today, if you go to the Coca-Cola website (www.coca-cola.com), the focus is still on the consumer experience…The slogan is…”Open Happiness”.

The other thing that you immediately notice is the lack of focus on their products. Instead, the website focuses on your experience with the brand.

You see the “MyCokeRewards” Program that states…”Grab a drink. Enjoy. We’re gonna love you back.”

Front and center is the opportunity to own Coca-Cola merchandise both through the Rewards program and also through the Coca-Cola Store. Not only are they encouraging the consumer to identify with the brand, but they are getting millions of branding hits every day when people use the merchandise or wear the apparel.

Better yet…people are actually paying them to help advance their brand. And doing it gladly! This is just BRILLIANT!

You will also see opportunities for the consumer to help all kinds of great causes from Education and the Environment to Saving Polar Bears. Just by drinking the Coca-Cola products. Adding to the experience of enjoying the products by supporting great causes also.

The only products you see are Diet Coke and Coke Zero. Interesting! A great example of how they are customizing the brand experience for a different segment of their market.

All of this is very consistent with the original goals set back in 2000 and makes their brand sustainable! Its no wonder they are #1…

Now lets take a look at Google.

It has been said that a brand should strive to own a word in the mind of the consumer. In Coca-Cola’s case, they have owned the word “Refreshment” for generations.

In Google’s case, they not only own a word…they invented it also! Now when you are thinking of doing a search online, you are more likely than not thinking about “Googling”. Their brand has become an action…or an experience!

Google has become a portal of information to its customers and consumers. They are a destination and a resource for their customers all at the same time. They have found a way to become a valuable part of your daily life…They have relevance and meaning to their customers. This makes the Google brand sustainable.

Like corporations, not-for-profits should be thinking about their sustainability also. Most universities struggle with making branding work for themselves. It appears that the greatest mistake universities make is their short term approach to branding that is most often associated with products and not corporate brands.

Products change. On the other hand, corporate brands are focused on sustainability and are based on overarching core values and beliefs that connect the entire organization. This is where Universities should be focusing their efforts with their constituents.

Let’s look at Harvard as a litmus test…

Over 100 years ago, a prominent guidebook of the times called Harvard…”"the oldest, richest, and most famous of American seats of learning." Remarkably, the first two are still true absolutely and the last part is arguably still true as well!

Harvard has been able to sustain its brand since it was founded in 1636. Like Harvard or not, agree with them or not, their core values and beliefs have not changed drastically for over 300 years.

The products (courses and facilities) may have changed, but the corporate brand has endured. Yes…I said corporate brand! Harvard is also the first and oldest corporation in North America.

“Harvard” defines a first class educational experience. It is also defined by the success of its alumni and how strongly they identify with the brand.

Wouldn’t it be a good thing if your University Brand was as strong and defined as the Harvard brand?

Write in and share your thoughts on this and the other topics of the blog!

Are you thinking about BRAND new solutions?

2009-05-26T13:10:00.000-07:00

“We live in a moment of history where change is so
speeded up that we begin to see the present only
when it is disappearing.”

--R.D. Laing, Scottish Psychiatrist (1927-1989)

Lets face it folks...life is changing drastically every day.

We are truly in a world of immediate gratification!

When was the last time you wrote a letter and sent it through the US Mail? Why would you when you have a Cell Phone?

When was the last time you went to the library to research a given topic? Why would you when you can "Google" it from your living room?

Can't make it home in time for your favorite TV show? Just DVR it or go to Hulu at your convenience. You get the picture!

Life is good, right? So many things have changed to make our lives so convenient. Maybe so...but is it better or just different?

Either way, we know the speed of change is just increasing exponentially. So you need to ask yourself...What changes have we made in the way that we approach philanthropy?

For decades, fund raisers have leveraged the "warm and fuzzy" sentiments that alumni have for their alma maters. Lifestyles and society in general moved along at a much slower pace 50, 40, 30, even 20 years ago than it does today. There was time to have those feelings. Today's daily breakneck pace doesn't even allow us to think about what we are having for dinner tonight let alone what our feelings are about alma mater and the next capital campaign.

The Campaign Priorities that have been sent down from your President's Office are probably not what your alumni are thinking about when they wake up in the morning.

Those thoughts are usually reserved for things like getting little Jimmy to Little League when his older brother needs to be at band rehearsal and his younger sister needs to be at ballet practice. Believe it or not, YOUR Campaign doesn't even come in second! What probably follows Little Jimmy's scheduling dilemma are thoughts of the very first meeting at the office, the business trip coming up next Tuesday, or in today's economy, what is happening to the 401K!

Where do YOUR Campaign Priorities fit in, you may ask? Do alumni know how hard YOU have worked on the silent phase of the campaign to even get to the public phase? Do they know how much this will mean when YOU can begin building the new facilities...award more scholarships...fund more research...etc?

Your alumni and other constituents do not live and breath the Campaign like YOU do. YOUR institution may not be in the forefront of their minds like it is for YOU. This is currently YOUR priority, not theirs.

Ask yourself this question and be brutally honest...Would you be as involved and invested in the campaign if you were no longer working there? The answer might be yes, but truthfully it really can't be. You are focused...you are driven...you are a professional! That incentive you receive via your paycheck every other week really does work well as a motivator...doesn't it? As well it should and there is nothing to be ashamed of. You are doing great work and it is for a great cause. Lots to be proud of there!

The point is that universities are growing their fundraising organizations to record levels, getting much more sophisticated in their efforts and allocating more and more resources to paying professional fund raisers. This tells us quite a bit about where we are today. If you follow the money trail, it tells us that the need to raise the funds is definitely there and in order to meet the need, we are going to have to invest to get it done.

So what investments are you making today to gain "front of mind" position with your alumni so they are thinking about your institution? What piece of "real estate" or segment of their fast paced daily lives have you carved out for yourself in their lives?

Is the ringtone on their cell phone your school's fight song?

Is the screen saver on their computer screen your school's logo (BRAND) or mascot?

Does the calendar hanging on their refrigerator door have different scenes from campus for each month and promote major campus events?

Right about here you might be thinking...Whoa!!! You are getting dangerously close to talking about "chotchkies"..."swag"..."premiums"..."give aways". This is Philanthropy...we don't do that here! We are above that!

Well guess what...I would tend to agree with you but with a little bit of a twist...

Would you consider investing $1,500 to have 1000 targeted alumni think of your school in a positive way 10 times a day or more...each day...for over a three month period? Could that help you bring back those LYBUNT's that are so important to your end of year?

Or how much would it be worth to have tens of thousands of people see your branding at grocery stores, shopping malls, golf courses and little league games across the country? Would you consider an investment of $5,000 for that many marketing hits?

And oh yeah...both scenarios would gain placement for your university in the daily lives of your alumni. "Front of Mind" placement that builds the connection and allows for stronger growth in the future. Isn't that what we want to "develop" as development officers?

Your efforts are getting more and more sophisticated. Marketing and Branding deserve a place within your plan! It can't be a "Cost per Thousand" paradigm any longer! That's a short term philosophy of managing cost and not a forward thinking look at Return On Investment (ROI).

If you subscribe to the "CASE" philosophy (Copy And Steal Everything) to move your program forward, you are missing a great opportunity. And if you have been told by your supervisor lately to..."Think outside the box."...then this is targeted directly at you!

If you want to explore more possibilities, let me hear from you !!!

Matt

"A brand that captures your mind gains behavior. A brand that captures your heart gains commitment."
--Scott Talgo, Chief Strategy Officer, Landor Associates

Welcome to..."A Brand New World"!

2009-05-26T06:46:00.000-07:00

Thank you for finding your way to my blog!

Someone told me just last week that he thought I wrote well and I should consider starting a blog. My knee jerk reaction was, "I suppose I could, but I am not sure how hard it would be to set one up." All I could think of was programming and writing code. Flashbacks of "all-nighters" from college computing courses flew into my head. That nervous twitch that I hadn't had in years was back!

Good news all! The twitch is gone forever! Technology today is fantastic and here I am...a brand new blogger!

The theme for this blog is going to be a simple one...we will discuss the role of branding within the context of University Advancement.

For the sake of our discussions, I will define Advancement in its most basic terms...any internal function that promotes, raises the perception of, brings about growth, furthers popularity or moves the university forward in any of its primary goals or mission.

Ok, that covers a lot of ground! We will be cutting across the entire spectrum of communications, fund raising, "friend raising", "gowns and town" relationships, and even recruitment of incoming students. In short, we will discuss how your BRANDING effects the very lifeblood of your institution.

This will be a very "customer-centric" blog...and you are the customer! It will be all about your needs and adding value to your programs. So with that in mind, your participation is not only desired, it is essential!

Looking forward to hearing from you!

Cheers!

Matt