Marketing Plan for Non Profit Organization - Essay Example

To make a Marketing Plan as a Direct, Digital and Database marketing Expert for The Thames Vallet and Chiltern Air Ambulance Trust (TVCA) Various organizations/ societies/ institutions are commonly divided into three sectors namely, public or governmental, for-profit or corporate, and non-profit or independent. This number is sometimes reduced to two such as, public and private. The public sector includes governmental organizations/ institutions, while the private includes both for-profit and nonprofit organizations. Institutions within the nonprofit or independent sector are generally known as non governmental organizations (NGOs) or non profit organizations (NPOs). In general, such organization refers that it is not meant for any kind of profit and does not include any organizations in the corporate sector. NGOs or NPOs are generally committed to addressing social needs and improving the human condition. Further, some NGOs or NPOs engage volunteers for many of their activities, such as grassroots advocacy campaigns, services to the people in distress, etc. By focusing on a specific mission and drawing on the dedicated support of local communities and loyal volunteers, NGOs/ NPOs are able to address many difficult issues. With the rise of the modern nation state, it is more and more expected that the social development is the responsibility of government of a country. However, in spite of huge investment in social programs, governments in general have not been able to address fully the many critical needs of their citizens, nor are these needs often met by the corporate sector. NGOs/ NPOs have often tried to bridge the gap between what governments and corporations can do and what society needs or expects. Present-day NGOs/ NPOs are often having full-time staffs and governing boards and they sometime work in collaboration with government and/ or corporate bodies, each bringing their particular competencies to deal with a common issue. Some NGOs/ NPOs may receive occasional/ periodic government grant. However, NGOs/ NPOs generally roll their surplus revenues into ongoing activities or hold them in reserve to cover future requirements. The NPO under consideration i.e. "The Thames Vallet and Chiltern Air Ambulance Trust (TVCA)" does not receive any government grant and it has to generate itself the entire money necessary to keep it running, which is quite difficult and challenging. Therefore, TVCA needs to adopt a number of innovative methods to generate sufficient resources for sustaining its various operations/ activities smoothly. The income and expenditure statement for the year 2007 indicates as follows: total income - 1.77 million pounds; total expenditure - 1.29 million pounds; and retained earnings - 0.48 million pounds (approximately). The major objective should be to maximize the retained earnings of TVCA through various ways and means and without affecting its existing activities. At present the main fund raising activities of TVCA are as follows: weekly lotteries, selling various items of merchandise, organizing different charitable events, public donations, etc. In order to increase the earnings of TVCA various innovative methods shall need to be chalked out. In this regard, the following measures may be suggested: (1) Building a good database of citizens: It is observed that TVCA is mainly serving 3 counties of UK namely Berkshire, Oxfordshire and Buckinghamshire, with populations of around 798000, 605000 and 686000 i.e. a total population of approximately 2.09 millions (UK Census 2001). Initially, TVCA can selectively target citizens with age of 45+ and above and having fairly good income. As per 2001 Census the percentage of populations above 45 in UK is around 39.74% say 40% of total. Out of this, persons with fairly good family level of income may consist of around 5%. This means that in the 3 counties largely being served by the TVCA, the targeted population may be around 5% of 2.09 millions i.e. approximately 41,800. TVCA is required to develop a good database about its prospective customers/ clients as good database marketing involves collecting and storing customer and prospect information, and using it for more effective outreach. In fact, a detailed and accurate marketing database is expected to help the trust authority in segmenting its audience more precisely, so that it can provide a more relevant, customized message. It is also expected to help the trust in properly tracking its contact and sales history, and manage ongoing customer relationships more effectively. The list of customers (both existing and prospective) is the most valuable asset for the organization. It can be made even more valuable by implementing some basic database marketing practices. Ultimately this database and its proper analysis by TVCA is expected to help in determining how, why and what its prospective customers/ clients may buy from it in the form of products or services; and the development of tailored messages to those customers and prospects. The ultimate objective is to create the appearance of "one-to-one" marketing, where the trust can use its data to develop personalized campaigns based on each individual customer or prospect's needs. Such database can easily be maintained using Customer Relationship Management (CRM) Software Package, which is readily available in the market (such as SAP, ORACLE CRM or Microsoft CRM). The same can be procured by the trust. Initially the addresses/ telephone numbers of targeted citizens can be obtained by TVCA from telephone directories, personal contacts, etc. Brochures can be sent to such families with free gifts and requesting details about their family members, with names, age, e-mail, areas of interest, hobbies, future plans, etc. Various prospective customers can also be sent SMS with the request to furnish data about themselves and their family to a particular e-mail address or toll free number and first few members may get early bird prize for such response. The same message can also be telecasted through local TV Channel. From these responses, a kind of data trend can be captured about the majority likings in respect of various items/ events, etc. Some of the volunteers of the trust may be entrusted with this task of target area wise data collection and put it in the software. Keeping detailed and current information about prospective customers is essential to effective database marketing. All customer interactions should be recorded so the information can be used and analyzed. In fact, the key to modern direct marketing is to effectively capture the individual customer details (Alan Tapp 2009). This enables the marketer to start a relationship with particular group of customers subsequently, by treating them differently over time to generate repeat business. It may be noted that the marketing database is only as good as the information that goes into it. Hence it needs to be ensured that all relevant volunteers are committed to updating it continuously. (2) Proper segmentation of the database: Identifying proper market segments from the database gathered can be the most challenging part of database marketing (Chaffey et al. 2009). Each segment needs to be large enough, in terms of potential sales, to justify a custom marketing strategy, but not so large that there are too many sub-segments that need minute individualized attention. Some typical methods of segmentation may include the following aspects: (i) Profitability: This allows an organization to focus on the marketing and sales on prospects that match the profile of its most profitable customers. (ii) Age Groups, Likings, Product Choice, etc: This may help the organization in properly tailoring its marketing messages to different groups of customers. (iii) Past purchases: The organization can tailor its offers based on cross-sell and up-sell opportunities. (iv) Role: This may enable the organization in figuring out what role a particular customer plays in the buying decision say, in a family. The various fields in the database may be as follows: (i) Contact information: The organization may start with the basics-name, address, e-mail, profession, business/ office address, phone, fax. (ii) Relationship: Is this a new or current or former customer, hot prospect, or cool prospect, may be noted. (iii) Buying history: It may record the products and services the client has previously bought from the organization (if any) and ideally, this may include products that are still active and those that have been retired. (iv) Buying cycle: If possible, the data about how quickly the customer makes buying decisions and who is involved in the family may be recorded. (v) Choice of products or services: The organization may want to segment its prospective customers based on the nature of chosen products or services by the latter; (vi) Prior contact: Data about aspects like what marketing materials has a prospective customer received earlier and how did they react to the same may be recorded. Also when these customers have interacted with the organization personnel, what issues have they raised, and how these have been addressed, etc., may also be noted. (3) Taking up of new initiatives: In order to substantially increase the internal resources, TVCA apart from running its existing activities is required to take up new initiatives in the form of introduction of new products and services. Some such typical new products and services that may be considered by the trust are suggested below. (A) Introduction of new items of merchandise: Based on the database of the citizens to be collected, TVCA shall have to chalk out new items of merchandise which can be introduced to its existing and prospective customers. Such items may not be very costly items and may belong to the category of common utility products or gift items such as, first aid box, perfumes, set of trousers and jeans, electronic items, garden equipment set, etc. The selection of such products will mainly depend on factors like majority customers' choice, affordability, cost, etc. The logo of TVCA along with some messages should be there in all its products to develop a cool brand image amongst the citizen. Such introduction of new products or item of merchandise are required to be initially introduced by the trust on an experimental basis in moderate quantities and which can be gradually increased depending upon the response from the customers. Periodic product shows/ exhibitions can be arranged by TVCA at its various gardens with suitable discount and/ or gift scheme. For this purpose TVCA can also suitably tie up with any franchisee or similar organization, if required. (B) Setting up of Old Age Home: During recent times better nutrition, improved health care and high living standards have resulted in increased life expectancy. The average life span is now ten years longer than it was a generation ago and senior citizens are the fastest-growing section of our society. It has been estimated that approximately one person in six is retired and the number of over 80s in the United Kingdom is growing by about ten thousand each year. Thus Old age - its status, problems and opportunities -- is presenting a challenge which cannot be overlooked. Very often older people are required to face drastic, and sometimes unwelcome, changes such as, moving home, retirement from a job, loss of a partner, etc. As the physical powers of the people at old age wane they may have to cope up with illness, pain or loss of mobility. Moreover, during old age loneliness is a very real problem, as contemporaries die and families move. Thus the old people become increasingly aware that their life on earth is nearly over and many are afraid of dying. Sometimes reduced finance can also cause concern, While our society provides a high level of medical and social care, the problems of the elderly are sometimes being aggravated by certain social and cultural trends. Smaller and more mobile families are leading to the break-up of the extended family unit and this disintegration is further encouraged by the instability of marriage and the practice of both husband and wife going out to work. The result is that we are moving towards a society in which all the young and able-bodied persons are fully occupied with their own lives and older people are left without any relatives able to help care for them. The development of the welfare state has not proved an unmixed blessing. It has created a "leave it to them" attitude with the tendency of the common citizen to shrug off his/ her own responsibilities with the comforting reflection that the state provides all that old people need. They are then abandoned to the mercy of an impersonal bureaucracy and starved of friendship and individual care. Under the above circumstances lot of demand is expected for getting accommodation in a good old age home particularly amongst people who are in the age group of 55+ and above. In fact, people nearing retirement age mostly wants to live with dignity and peace and yet not dependent on anybody either physically or mentally. However, what in general such people look for is a decent old age accommodation, which is not very costly but at the same time provides all common facilities such as, good food, minimum medical care, rich library, nice entertainment services, and above all a fine club, where people can chat comfortably, eat and drink without any feeling of loneliness. In view of above, it is felt that TVCA can conduct a survey in the form of e-mail questionnaire amongst the target families initially in the 3 counties they are serving, so as to assess the demand of such old age accommodation. It is however expected that demand for such type of old age accommodation shall be quite high. With around 21% of population above the age of 60+ (UK Census 2001) in the 3 counties will mean (21% of 2.09 millions in 3 counties mainly being served by TVCA) i.e.0.44 millions. Out of these it is expected around 1% i.e.4400 nos. may opt for getting a good and decent old age accommodation. Therefore, TVCA can consider setting up of an Old Age Home of reasonably good standard in any of their available/ vacant plots. Initially the trust can consider starting with 50 bed capacity in various categories such as, single bed, double bed, dormitory, etc. In the beginning instead of constructing a separate building, the Old Age Home can be started with some available rooms in an existing building (if any) and depending on the future response/ flow of revenue the trust authority may think of constructing separate building for the same at a later stage. (C) Arranging periodic charity fashion shows with celebrities: TVCA can consider arranging of periodic charity fashion shows in association with local groups of fashion designers and celebrities. It can initiate dialogues with local industry/ business house to get sponsorship for the events at a later stage. Various categories of tickets at different rates for entry into such shows can be worked out such as VIP Admission, Priority Admission, General Admission, etc. Typically tickets may be kept at rates ranging from 15 to 40 pounds per person or any other convenient rates depending on expected response. Such charity fashion shows can be followed by sale of dresses/ cloth items to be displayed by various designers groups at reasonable prices. Some special dresses can be put for auction also. Each fashion shows can be based on several themes such as casual and funky wears, couples paradise, office goers' delight, children specials, etc. Such shows can be conducted in any of the gardens with whom TVCA is having tie ups. The trust can also have dialogues with some celebrities who can spare time in joining such charity fashion shows. If such shows become popular or successful some cultural events with local artists can also be planned to be conducted along with the same. A costing in this regard can be easily worked out. (D) Arranging periodic charity flower shows: Periodic charity flower shows can also be arranged by TVCA in different gardens with whom it is having tie ups. It can be combined with sale of merchandise items. Such shows can be followed by picnic/ dinner/ events, etc. Various categories of entry tickets can be kept for such occasions. (E) Arranging periodic nursing training course: The TVCA is having a good force of volunteers, many of whom may be expert in nursing. Hence, the trust can consider introducing periodic nursing/ midwifery training courses of short term duration for interested persons for which certain course fees can be charged. A market demand survey in this regard can however be conducted by TVCA before venturing into such area. References: 1. Alan Tapp, Principles of Direct Database Marketing, Prentice Hall, Englewood Cliffs, 2009. 2. Chaffey, D., Ellis-Chadwick, F., Johnston, K. and Meyer, R., Internet Marketing, Pearson Education, Essex, 2006. 3. Kotler, Philip and Armstrong, Gary, Principles of Marketing, Prentice Hall, Englewood Cliffs, 1994. 4. Census of United Kingdom, 2001. Read More