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Copyright, iv
Preface, xix
Section I. Developing a Target Audience Orientation, 1
Chapter 1. The Growth and Development of Nonprofit Marketing, 3
The Nonprofit World, 4
Some Myths, 4
Why Study Nonprofit Marketing?, 6
Some History of Nonprofit Marketing as an Academic Discipline, 8
The Twenty-First Century, 9
This Book, 11
Evolution of Nonprofit Organizations, 11
Some Dissenters, 13
The Need for Better Management, 14
Importance of the Nonprofit Sector, 15
The United States, 15
The Nonprofit Sector Around the World, 17
Explanation of Cross-Country Differences, 19
The Three Sectors, 21
The Uniqueness of Nonprofit Marketing, 21
The Tax Benefits of Being a Nonprofit Organization, 21
The Special Challenges of Nonprofit Marketing, 22
Variations Within the Sector, 24
A Typology of Behavioral Challenges, 26
Ethical Challenges in the Nonprofit Sector, 27
Chapter 2. Developing a Target Audience-Centered Mindset, 34
The Boundaries of Marketing, 35
The Evolution of The Marketing Mindset, 37
The Product/Service Mindset, 37
The Sales Mindset, 38
The Target Audience Mindset, 38
Target Audience-Centered Organizations, 40
Detecting an Organization-Centered Orientation, 42
Clue No. 1: The Offer Is Seen as Inherently Desirable, 42
Clue No. 2: Target Audience Ignorance and Lack of Motivation Are Seen as the Barriers to Success, 43
Clue No. 3: A Minor Role Is Given to Target Audience Research, 44
Clue No. 4: Marketing Is Defined as Promotion, 44
Clue No. 5: One Really Good Strategy Is Seen to Be All You Need, 45
Clue No. 6: There Is Assumed to Be No Generic Competition, 46
Characteristics of Target Audience-Centered Marketing Management, 46
Behavioral Bottom Line, 47
Target Audience-Centeredness, 47
Reliance on Research, 47
A Predilection for Segmentation, 50
A Richer Conceptualization of Competition, 52
Using the Full Marketing Mix, 52
Introducing a Target Audience-Centered Mindset, 53
How Far to Go in Adopting a Target Audience Orientation, 55
Section II. Strategic Planning and Organization, 59
Chapter 3. Strategic Marketing Planning, 61
Doing Marketing, 62
Organizational Marketing Planning, 64
Analyzing Organizational Mission, Objectives, and Goals, 67
Mission, 67
Objectives and Goals, 69
Analyzing Organizational Culture, 70
Culture Conflict, 71
SWOT Analysis, 74
Analyzing Internal Organizational Strengths and Weaknesses, 74
Analyzing External Threats and Opportunities, 75
The Macroenvironment, 80
Portfolio Planning, 81
Core Marketing Strategy, 83
Campaign Marketing Planning, 85
Marketing Evaluation and Control, 87
Chapter 4. Understanding Target Audience Behavior, 90
Behavioral Drivers—The BCOS Factors, 92
The Central Role of Exchange and Value Propositions, 93
Types of Exchanges, 93
Levels of Understanding of Target Audience Behavior, 94
Individual Behaviors, 95
Involvement and Complexity, 95
Highly Complex Decisions, 97
Stages of Change, 97
The Contemplation Process, 100
Simplified Behavior, 108
Chapter 5. Acquiring and Using Marketing Information, 113
Marketing Research in Nonprofit Organizations, 114
The “Big Decision” Myth, 115
The “Survey Myopia” Myth, 115
The “Focus Group” Myth, 116
The “Big Bucks” Myth, 116
The “We Can’t Wait” Myth, 116
The “Sophisticated Researcher” Myth, 117
The “Most-Research-Is-Not-Read” Myth, 117
Organizational Knowledge Management, 117
The Resource-Based Theory of the Organization, 118
Organizational-Level Marketing Knowledge Systems, 119
Internal Reports System, 120
The Market Intelligence System, 120
The Marketing Research System, 121
The Analytical Marketing System, 122
Conducting Specific Studies, 122
Making Research Useful—The Backward Research Process, 123
Steps 1 and 2, 124
Step 3, 126
Step 4, 127
Steps 5 through 7, 127
Steps 8 through 10, 128
Steps 11 and 12, 128
Empirical Research Alternatives, 128
Chapter 6. Segmentation, Targeting, and Positioning, 137
Segmentation, 138
Dividing Up Markets, 140
Alternative Segmentation Bases, 141
Objective General Measures, 142
Objective Behavior-Specific Measures, 145
Psychological Measures—Getting Inside the Target Audience’s Head, 149
Targeting, 153
Undifferentiated Marketing, 153
Differentiated Marketing, 154
Concentrated Marketing, 155
Mass Customization, 157
Choosing Among Market Segmentation Strategies, 157
Positioning, 157
Measuring the Present Position, 159
Measuring the Positioning of Behaviors, 159
Positioning Alternatives, 161
Chapter 7. Branding, 166
Is Branding a Good Thing?, 169
Brands and Nonprofits, 171
Building a Brand, 172
Branding Details, 176
Campaign Branding, 180
Section III. Designing the Marketing Mix, 185
Chapter 8. Value Propositions: Managing the Organization’s Offerings, 187
Unique Challenges, 188
The Value Proposition, 191
Product Marketing, 192
Product Item Decisions, 193
Product Mix Decisions, 196
Services Marketing, 197
Intangibility, 197
Inseparability, 197
Variability, 198
Perishability, 199
Target Audience Involvement, 199
“Pure” Behaviors, 204
Chapter 9. Developing and Launching New Offerings, 207
Offer Development—A Problem of Strategic Planning, 208
A Warning—Beware of Mission Creep, 211
A Process for Developing New Offerings, 211
Idea Generation, 211
Idea Screening, 215
Concept Development and Testing, 216
Marketing Strategy Formulation, 218
Business Analysis, 219
Offer Development, 219
Market Testing, 219
Introduction to Market, 220
Offer Life Cycle, 221
Introduction and Growth Stages, 222
Innovation Adoption, 223
Finding Potential Innovators, 224
Stages in the Innovation Adoption Process, 227
Innovation Characteristics, 228
Chapter 10. Managing Perceived Costs, 233
The Nature and Role of Costs, 234
The Duality of Costs, 235
Cost Management, 236
Practical Management of the Cost Bundle, 237
Setting Money Prices, 238
Setting the Pricing Objectives, 238
Surplus Maximization, 238
Cost Recovery, 240
Market Size Maximization, 240
Social Equity, 241
Market Disincentivization, 241
Choosing a Pricing Strategy, 242
Cost-Oriented Pricing, 242
Value-Based Pricing, 244
Competition-Oriented Pricing, 245
Ethical Challenges in Pricing, 245
Varying Costs Across Segments, 246
Promotional Pricing, 246
Chapter 11. Facilitating Marketing Behaviors, 249
The Nature and Role of Facilitation Planning, 251
Channel Strategy, 251
Components of a Channel Strategy, 253
Direct versus Indirect Channels, 256
Length versus Breadth, 257
Achieving Coordination and Control, 259
The Basic Problem in Coordination and Control, 260
Developing Intermediary Coordination Strategies, 261
Occasion Strategies, 262
Making Behavior Easy, 263
Making the Behavior Occasion an Emotional “High”, 265
Making the Behavior Occasion Rewarding and Reinforcing, 266
Chapter 12. Formulating Communication Strategies, 269
The Communication Process, 271
Strategic Implications, 275
Major Steps in Developing Effective Communications, 276
Setting Communication Objectives, 276
Generating Possible Messages, 277
Overcoming Selective Attention, 282
Overcoming Perceptual Distortion, 287
Choosing a Medium, 288
Message Evaluation and Selection, 291
Communication in the Preparation/Action Stage, 291
Communication in the Maintenance Stage, 293
Self Rewards, 294
Rewards from Allies, 294
Integration, 295
Chapter 13. Managing Communications: Advertising and Personal Persuasion, 299
Campaign Communications, 301
Advertising, 302
Setting Advertising Objectives, 303
Target Market Selection, 304
Target Response, 304
Target Reach and Frequency, 304
Advertising Budget Determination, 305
Paid Media Selection, 305
Choosing Among Major Media Categories, 306
Selecting Specific Media Vehicles, 311
Deciding on Media Timing, 311
Advertising Evaluation, 312
Personal Marketing, 316
Establishing Personal Influence Objectives, 317
Selecting Personal Communicators, 317
Other Communications Issues, 320
Relationship Marketing, 320
Internal Marketing, 321
Recruiting Allies in Personal Persuasion: The Role of External “Others” in the BCOS Model, 322
Chapter 14. Managing Public Media and Public Advocacy, 325
Traditional Public Relations, 327
Positioning Public Relations, 328
Public Relations at the Organization Level, 329
1. Identify the Organization’s Relevant Publics, 330
2. Measure the Images and Attitudes of the Relevant Publics, 330
3. Establish Image, Attitude, and Behavioral Goals for Key Publics, 331
4. Develop Cost-Effective Public Relations Strategies, 332
5. Prepare for Public Relations Crises, 333
6. Work the Media, 334
7. Monitor Web Sites Bloggers, 335
8. Measure the Effects, 336
Campaign-Level Public Relations, 336
Public Advocacy, 338
Social Agendas, 339
Tools and Tactics, 340
A Reminder: Public Advocacy Must Be Audience-Centered, 344
Section IV. Developing Resources, 347
Chapter 15. Generating Funds, 349
Balancing Mission and Resources, 350
Financial Resources, 350
Mission Creep, 350
Sources of Funds, 351
Fundraising, 353
Customer-Centered Fundraising, 354
Fundraising in the Twenty-First Century, 357
Understanding Sources of Funds, 358
Foundations, 358
Corporations, 361
Community Foundations, 364
Government, 364
Individual Givers, 365
Types of Individual Fundraising, 368
Annual Giving, 369
A Caveat, 374
Major Giving, 374
Planned Giving, 377
Revenue from Sales and Services, 378
Chapter 16. Attracting Human Resources: Staff, Volunteers, and Board Members, 383
Attracting Staff, 385
Recruiting and Managing Volunteers, 386
Cross-National Comparisons, 387
Recruiting Volunteers, 389
Managing Volunteers, 394
Boards of Directors and the Marketing Function, 397
The Influence of Boards on Marketing, 397
Recruiting Board Members, 399
Chapter 17. Working with the Private Sector, 404
Advertising Agency Partnerships, 406
The Ad Council, 406
Other Marketing Alliances with the Private Sector, 414
Corporate–Nonprofit Alliances, 416
Other Alliances, 419
Results, 422
Risks, 423
Developing a Sound Cause-Related Marketing Strategy, 426
The Collaboration Continuum, 428
Portfolio Management, 430
Section V. Organizing and Controlling Marketing Strategies, 439
Chapter 18. Organizing for Implementation, 441
Introducing Marketing—Pushing or Pulling?, 442
Marketing’s Position in the Organization, 443
Recruiting Great Marketers, 446
The Salary Problem, 446
Two Cultures, 447
Marketing Marketing, 448
Managing Multinational Nonprofits, 450
Multi-Site Organizations, 451
Organizational Design, 452
Functional Organization, 452
Offering-Centered Organization, 454
The Target Audience-Centered Organization, 456
Implementing a Target Audience Orientation, 456
Top Management Support, 457
In-Company Marketing Training, 457
Better Employee Hiring Practices, 457
Rewarding Market-Oriented Employees, 458
Target Audience-Driven Organizational Change: An Example, 458
Chapter 19. Marketing Evaluation, Monitoring, and Control, 463
Monitoring and Control of Campaigns, 465
A Caution, 466
Types of Monitoring Tools, 467
Tracking Target Audience Behavior, 468
Non-Behavioral Measures, 468
Measuring Change, 468
Tracking Target Audience Satisfaction and Likely Repeat Behavior, 470
Doer–Ex-Doer–Non-Doer Analysis, 474
Relation Between Target Audience Member Satisfaction and Other Goals of the Organization, 474
Determining Causation, 475
Comprehensive Monitoring Systems, 475
Evaluation: Problems and Suggestions, 478
A Comment About Governance and Ethics, 480
Index, 485

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