 As-Salaam-Alaikum-Khawwateena-Hazrat. I will seem as and welcome you to lecture number 8 of Marketing for Non-Profit Organizations, MKT 628 at the Virtual University of Pakistan. The very first component of this lecture is going to be about Drivers of Cause Marketing. In other words, we are going to look at the trends that have set the growth of cost marketing over the last 1-1.5 decades. But before I start talking about those drivers individually, let me take you back to the definition of cause marketing. The way you already have learned that cost marketing basically aligns corporate sector's brand, its marketing and its human resources with charitable causes brand and its assets. So in other words, with the wedding of all these factors on both sides, cause marketing basically generates value for shareholders, it connects different constituents, and it publicly communicates value. Shareholder value is not just confined to financial value or better financial ratios. It also is reputational value, which in turn means that the corporation derives so many different intangible benefits out of the cause relationship. And that certainly is one of the drivers. The cost marketing relationship connects different constituents. Here we are talking about an array of constituents who appear on a very wide spectrum of suppliers of the corporation, the management of suppliers, their board of directors, and then the corporation itself, their staff members, their whole management to the board of directors, all stakeholders like bankers to the finance institutions, so on and so forth. And then right down to the NPO itself, its management, the board of directors, activists, volunteers, and society at large. So you have seen that an array of constituents get together, they get connected, they get involved, and when they make their respective input, the whole it generates becomes much bigger than the sum of its parts. That is the beauty of the relationship that takes place between the corporate sector and NPO. So we have seen that the interpretation of the definition lets us draw certain very important and logical conclusions. And while drawing this conclusion, the one thing becomes very prominent, and that is the community itself. All the constituents happen to be part of the overall community, and the community gets better exposed, not only to the corporate sector, but also to the NPO's cause and their program. So the community becomes a very important factor in driving the corporate sector toward proving that they are good corporate citizens. Why do they really have to do that? Well, this has a history, which goes like one and a half decades back when a couple of huge US corporations got caught indulging in unethical behavior. And as a result of that, the people formed negative perceptions about the whole corporate sector and the society at large thought that the corporate sector is only concerned about making profits, and that also through unfair means. So there was a good cause for the corporate sector to wash themselves of that perception, which had formed a very dominant part of public memory and perception. In doing so, the corporations thought it was a very good opportunity to join hands and do something collaboratively by developing certain synergies that will let them execute social responsibility, and NPO's provided them with a very good platform to do that collaboratively by creating synergies. So in other words, we can say that ever since that tobacco took place in the US, corporations have become very sensitive to the fact that they've got to demonstrate certain ability and characteristics that lay the ground for their becoming better corporate citizens. At the same time, there is another marketing pressure on the corporations with which it makes it important for them to differentiate themselves from the rest of the crowd because of the competitive pressures, and the fact remains that most of the corporations produce good products and services, and therefore it becomes very important for them to do something in which sets them apart and which really can prove that the corporations stand not just for business and profitability, but there is something which is done by them in terms of social improvement, and that's where the NPO's come in, and that's where the driver comes in. NPO's find a very good opportunity of joining hands and making their programs more legitimate and more credible, and corporations, on the other hand, create the better value for the shareholders and for the corporation. So the community happens to be one of the greatest drivers because it keeps the corporate sector under scrutiny all the time, and this gives the corporate sector an opportunity to prove that they have the capability of doing a service to the community at large, and for that they join hands with the NPO's and they become very attractive for NPO's as a matter of fact, and NPO's in their right find it very advantageous because they can uniquely position themselves as an organization that is in collaboration with the corporate sector trying to improve the social welfare of the society. So we have seen that it works both ways. If it generates value for the corporate sector, it also gives legitimacy and credibility to the NPO's and their programs. The second driver which is responsible for the growth of cost marketing is socially conscious consumers because we know that consumers happen to be part of the marketing community which keeps the pressure on the corporations all the time and therefore those consumers who happen to be socially conscious are very sensitive to purchasing those products or services which are cost related. In other words, we can say if there are two products available on the market and they both have the same quality and the similar kind of pricing structures, there is a great possibility that socially conscious consumers will buy the product that is cost related and therefore it becomes kind of a pressure on the corporate sector to join hands with a good NPO offering a good program which has the potential to bring the corporate sector or the corporation into a positive limelight. Another driver which is responsible for the growth of cost marketing is good employees because we know that good employees contribute toward the financial results of any corporation and when they do that, corporations like to motivate them and retain them but once retained, those motivated employees work even better and they produce even better value. The fact is in terms of social welfare and the non-profit sector, the people have started working in their teens even before they enter the private sector or the corporate sector on social programs and I did point out in one of my previous lectures that if youngsters have to their credit working on a social cause as part of their resume, they stand better chances of getting a better job. So therefore corporations keep looking for people who are exposed to the non-profit sector and such people who have worked in the non-profit sector find it very attractive to go for those corporations that have the potential or that have the history to have worked for a social cause. So it is kind of a two-way traffic. Good corporations look for good employees and good employees like to work for good corporations and in the process, both benefit and both become stronger. We know that good employees are responsible for better financial results. It happens because they are highly productive, they're highly energized and they're highly committed. Because of the energy and commitment they show, corporations like to retain them. As a result of that retention, what happens is the corporate memory or the corporate experiential bank that is created becomes very beneficial for the corporation in the longer run, not only in the longer run but also in the short and medium term. The corporation can draw on that experience whenever it needs. The corporation can modify that experience in line with the changing circumstances, in line with the changes in the environment. So the corporate memory which is formed by the working of good employees, it becomes kind of a corporate knowledge which gets documented. It is not only documented, it gets disseminated. And when I was talking about corporations drawing on that collective experience, I was referring to the dissemination of knowledge which gets generated because of the output of good employees. So good employees happen to be one of the important drivers of the cause marketing relationship because they provide the corporations a platform which is attractive for the NPOs and which makes the corporation very vibrant and which lets the corporation demonstrate that it does have the ability to connect different constituents because it is these employees who have the ability to connect all those constituents. They make the whole thing so motivating, so inspiring that the people form different constituents and they feel very passionate to start working for the corporation. And once the corporation is into a relationship with some kind of a non-profit program, all those constituents get the opportunity of making their inputs and if you relate that with the output of the employees, you will know the contribution made by the employees at their end and what it really means. So good employees could happen to be one of the important drivers of the growth that we see in the cause marketing area. On the NPO side, it is mostly the declining governmental funding which has made NPOs conscious of the fact that they need to have certain more supportive sources in addition to the government and governmental agencies. If governmental funding is declining, NPOs are growing and to keep their growth sustainable, they have to approach the corporate sector. So in other words, the corporate sector becomes a natural choice on part of the NPOs to join hands and to do something collaboratively. They create synergies and they collectively can work for a certain cause which creates value which connects different constituents and it publicly communicates value. By publicly communicating value with what it means that the values on part of both the partners, i.e. the corporate sector as well as the NPO get highlighted. The community gets to know that they both really believe in serving the society. The corporate sector is not just about profitability and doing business, rather it is doing something which is very ethical and which is improving the social lot, so to say. And the NPO sector without having to say benefits because of the legitimacy that is injected into the programs owing to the relationship. So these are some of the important and very interesting drivers that have led the growth of past marketing over the last couple of decades and it is important for us to understand that and like I said earlier, if we have a good understanding of the interpretation of the definition of cost marketing it is easy for us to connect different dots and then draw certain logical conclusions as to what it really is that is driving the growth of cost marketing. And once more I would like to say it works both ways. It is good for the corporate sector as well as for the NPO's. We now get into the second component of the lecture which is about strategic marketing process and of course it has to deal with the non-profit environment. We have developed a basic understanding for the non-profit environment and are able to say that there are more similarities between the corporate sector marketing and non-profit marketing than dissimilarities. But then at the same time it is these dissimilarities that make it very important for us to understand why they present themselves and how do we manage those dissimilarities. Well to begin with I can make a statement that because of the similarities that we have to go back into the principles of marketing management and adapt those principles to the non-profit environment due to the dissimilarities that the sector presents. I would like to repeat it to see in a summarized form because of the similarities we follow the principles of marketing and because of the dissimilarities that are there we make certain adaptations to those principles and these are the principles which basically stem from the variables of marketing mix and that is one area which I think we understand fully well from a couple of other marketing courses as well. Let me say here that whether we are dealing with generic marketing which is meant to bring about certain social improvement through products and services or we are dealing with social marketing which is meant to bring about certain social improvement through a behavior change the fact remains that an appropriate deployment of the variables of marketing mix is extremely important in order to make the whole program workable. As a matter of fact it is the application of these principles that lays the ground for program formulation and then takes us through the stages of execution and implementation. If you go back to the two examples that I cited in lecture number six you will realize whether you look at the dispensary offering services I mean medical services in emergencies or the inoculation program meant to prevent certain deadly diseases both these examples very convincingly manifest the four variables of marketing mix in terms of product, the promotion, the price and place. I don't really have to talk about those examples once more in detail at all because you have right in front of you my point here is that it is the application of these principles that make it very evident that non-profit marketing is at a competitive stage and if you really believe in that then I think it is very obvious that we work for the programs by making customer as the focus of the whole program. So in other words it is very obvious that because of the application of these principles the target market gets the center stage and if the target market gets the center stage then it again is very obvious that we have to make the process very strategic. The marketing management by itself inherently is strategic and if you believe that the principles do have an application in the non-profit environment through certain adaptations of course then we also have to believe that the process has got to be very strategic and it is because of strategy formulation that we can successfully, efficiently and productively implement our programs. Let's take a look at the concept of cost marketing which I just concluded in the previous component if you are going to join hands with a corporate entity you have got to be very strategic because the corporate sector works by following certain strategies without having a set of strategies the corporate sector does not move at all and it is the process of strategy making that we have to understand which starts from the fundamental understanding what the process is all about. Well, the strategic process is very important for the NPO sector because it is the one that makes it possible for the NPO sector to respond to competitive pressures just like in the corporate sector if you think that you are at the competitive market stage you have got to respond to the competitive pressures one great example of competitive pressures is of funding there are fewer sources than people would like to tap and there are more NPO's running after those sources so this is one example of the state of competition it is these kind of pressures that make it very important for the NPO sector to follow a strategic process which has a set of objectives and then certain goals and then certain strategy formulation it is because of this process that NPO sector is in a position to assess itself by looking at its resources and then allocating those resources in as rational and optimal way as it goes so we can say it owes to the process that NPO's are in a position to assess where they stand and the way they really want to go in the medium as well as the long term the strategic process starts with a strategic intent the intent basically is a function of the corporate resources its capabilities and core competencies I don't really have to take you back to the basic principles of management course in which you already have learned what capabilities are and what is meant by core competencies the point here is that the NPO has got to be in a situation to fully exploit and capitalize on its resources by deploying its capabilities and core competencies it is because of the application of these factors that NPO's move forward in a strategic way so to say first of all NPO's have to take stock of their internal environment when I talk about the internal environment it automatically means NPO's have got to assess the internal situation and then see how best they can optimize their capabilities and core competencies and deploy resources in order to implement their programs once they have done that they are in a position to define what really is the purpose of the organization and how they are going to fulfill that purpose and once they have fulfilled the purpose they as a matter of fact have completed the strategic process let me take you to a graphical presentation and to make my point more convincing in terms of the development of the strategic process as you can see from this slide we have right on top the internal environment which has to be assessed very objectively by the organization in order to make sure that whatever they have at their disposal is going to be good enough for their strategic intent in other words they have resources, then capabilities and certain core competencies which when put together let the organization come up with their strategic intent the strategic intent is all about the intention of the organization and let me give you one example here a social marketing company may like to be the best possible social marketing company in the country but it still remains an intent it is not a strategic formulation by the same token a hospital treating kidney patients or cancer patients may like to be the best possible treatment facilities in their own right but this thinking is just an intent or an intention it is not a strategic formulation so in other words the organization has to take stock of their three fundamental factors of resources capabilities and competencies in order to make sure that whatever the intent to do is achievable and is doable so in other words the intent or the internal environment is all about the desire on part of the organization so the intent or the internal environment tell us what is desirable the ones that we have done that we get on to the external environment because if we have an internal focus we need to have an external focus as well and the external environment consists of so many different segments of which the economic environment, the demographic the socio-cultural and legal and regulatory segment are extremely important to keep track of the way we are analyzing the environment the ones we have analyzed the internal environment and also have given a lot of consideration to the external environment by way of looking into the economic factors and seeing which direction the economy is moving and whether it is going to be feasible for the non-profit program to be kicked off the way that we are planning to do or not is something that the economic segment will give us a lot of leads into the next segment of the external environment that draws our attention is demographic we know very well that demographics deal with the population and its size its location, the geographic area the ethnic base and income distribution and these factors are to be considered before we devise our mission which basically should flow out of the analysis of internal as well as the external environment but going back to the external environment the next segment is socio-cultural basically is a reflection of values that drive the society and the society at large the fact of the matter is that socio-cultural values are the driving force behind so many different economic, demographic, legal, regulatory as well as technological changes in the society and the trends that take place in relation to all these segments so socio-cultural segment plays an important role while we analyze the external environment there is yet another segment known as the legal and regulatory this deals with the public policy and its mechanism NPO's have got to be sensitive to the fact what policies are friendly to what their cause and the programs and what policies are constraining the ones that have taken stock of this situation they are in a better position to formulate their programs and before they can formulate their programs they can be very clear about devising their mission so as you can see from the interaction here right here the NPO has taken stock of the internal environment and the external environment and as a result of the analysis of both environments it is now in a position to devise its mission and the mission is all about the purpose of the company mission is the one which tells us what the company is all about what it is going to do and what is going to be the scope of its operations having said that we can now talk about what a mission is well like I just said the mission reflects the purpose of the organization and tells us what the organization is all about why the organization exists and what is it that it does and why it does and when it does that something what is it that it achieves so the mission is something very comprehensive it can be a very brief statement comprising of just about a couple of sentences although there is no bar on the length of the mission statement but the fact is that the mission statement reflects all the factors that I just talked about meaning what the organization is all about what it does, what is its purpose and what is the scope of its operations so it talks about almost everything which relates the both environments that I just talked about meaning the resources, capabilities and core competencies because these are the ones which are going to be deployed in order to make a program successful and it also talks about the external environment because automatically the analysis of the external environment has gone into the capability statement of the organization in other words the organization does feel that it is capable of carrying out the program which it intends to carry out so whatever its strategic intent is or whatever its thrust is all about it is in a position to do all that what it intends to do and its mission is to achieve that to fulfill that so this is what the mission is the mission let me tell you is all about the here and now orientation of an organization meaning what really is at hand what is it that the organization is supposed to be doing right now in order to achieve certain objectives it lets you achieve objectives it lets you assess yourself where you are and it also is an extremely good guide in terms of seeing how you are going to get there where you really want to reach there is a little difference between the mission and vision I have not just talked about the mission I also intend to say a few words about the vision of the company the marketing vision of the organization and how it differs from the mission of the organization well like I said if the mission is all about here and now vision is all about future and distant future it is something very inspiring it is very futuristic and it also happens to be abstract the mission statement has got to be very very focused whereas the vision statement tends to be a little abstract and futuristic although it happens to be an extension of the mission statement the reason why organizations like to make a differentiation between the mission statement and the vision statement is that they in future at times like to do things which are a little different from the programs they have at hand and if that is the case then what is to be done in future on lines very different from the ones you are falling right now becomes part of the vision and the mission is all about what you are doing right now many organizations tend to combine the two in other words the mission statement also takes into account the visionary part of it because they think they are going to stick with the kind of programs they are falling now and also in the midterm and the long term they will still be working on the lines they are working now and therefore the combination of the two back to the mission statement how is a mission statement constructed is a great challenge for organizations because it says what you are supposed to be doing and what is it that you are going to achieve you just cannot afford to say something which is out of focus or which lets you drift from your focus you are not to talk about things which are not feasible which you do not have the ability or capability to do and achieve and lets you stay on course in other words while constructing the statement the input of the management is extremely very important like it is said the more people are involved into the construction of the mission statement the better it is of course you are not supposed to be creating a crowd which may make the whole thing rather confusing but the fact remains that if mission statement has its roots of ownership into different vital strategic areas of the organization the better it is for the organization and then the input from the board of directors is extremely significant because again I would say it is a question of achieving the mission the mission statement has to have three very important features it has to be feasible it has to be motivating and it must be distinctive what it really means well feasibility basically stems from the fact that the resources of the organization have got to be in line with the goals of the organization meaning that what the organization is striving to achieve has to be supported with a compatible level of resources only that will make the program feasible if the staff members could have a feeling that the mission statement is not feasible because there is a gap between what we have in terms of resources and capabilities and the ultimate goal then people will not be making their inputs with the level of motivation and the level of commitment that is needed to make that program successful so any infeasible mission statement is injurious to the organization the second feature is that of motivation the statement should be such that it should inspire a lot of confidence into the people who are working for the cause that may those people be working for the organization as staff members they may be volunteers and may they be activists whoever they are all the constituents have got to get inspiration out of the statement because only then they will feel passionate to start making their inputs and here you see the factor of motivation is directly correlated with the feasibility if the mission statement is not feasible people are not going to feel motivated so there is a direct relationship between the two factors the third one is that of distinction the statement has got to be distinctive this basically is all about marketing differentiation the organization has got to position itself in a way that it really stands out and the unique selling proposition the must present itself having its roots in differentiation if it is not distinctive the people are going to have the feeling that this happens to be one of those a run of a mill program and this is kind of a program which is being undertaken by so many other NPOs so what is so special about it so they will lack the inspiration and the passion needed to make the program distinctive and then successful after having talked about what a mission statement is and what is the purpose of having this statement and what should be its features I think that we should be asking ourselves a couple of fundamental questions and if we are convinced with the answers to those questions we should think that the mission statement is okay first of all we have got to take a look at this statement in terms of what it says is what it is supposed to do meaning the organization is supposed to do if the statement says something which does not clearly says what the organization is supposed to do then there is something wrong with the statement it must say something in very simple plain words what it does another question that you may ask yourself is how clearly it communicates the scope of operations to all the stakeholders or to all the constituents is it easily understandable or people may have their own interpretations if you think that the statement is worded in a way that may let people drift into areas away from the focus of the program then there is something wrong with the mission statement and you have got to revise it yet another question that we may ask ourselves about the mission statement is does this statement inspire confidence among all the stakeholders or the constituents does it have the ability to develop the kind of integrated connection among all the constituents the kind of connection to the rich NPO's and also the corporate sector if it happens to be the part of the cost marketing program like to develop and if the statement does reflect that then it is a good statement and if you think it lacks something on that particular account and it may not inspire confidence among all those people who really matter toward making their inputs then there is something wrong with the statement yet another question that you may ask yourself says does the mission statement reflect with your values, with your personality and your positioning if it does, it is a good statement but once you are done with the statement then the next important element of the process is objectives what is an objective, let me explain that to you well if the mission is all about the purpose of the company and the scope of operations and if it happens to be the one telling us where the organization wants to reach then objectives are the strategic guide that take us there in other words objectives are very strategic and they set the direction for the mission to be followed and then fulfilled because objectives are very strategic in nature they let the organization bring to the different steps into a strategic focus meaning how those steps are to be taken and what is it that is to be done in order to implement those steps let me give you an example of objectives relating to the social marketing company I do not really want to give you examples from those kinds of MPOs that are very well established because that makes the whole thing very obvious and the common sensible I really want to generate some creative thinking on your part and talk about those examples which are from the areas not as familiar as the ones already established are and therefore let me talk about a social marketing company that may like to set itself a set of objectives number one could be that the company may like to hire the more or better moderators, market researchers and communication experts the company may set to itself the objective of hiring the more medical and nursing staff because they want to carry out their marketing the program in an even more aggressive way how they do it I am going to talk about that as well the objective may as well be to differentiate itself from its competitors and offer something in a way that is not traditional but once we have understood the objectives we have to take a look at the next factor which is that of goals what is the difference between objectives and goals is something that we must understand actually there are certain experts who make this distinction by calling objectives strategic objectives and goals as financial goals the reason they make this kind of distinction is because goals are the translation of objectives into measurable terms we say that the objective of the company is to hire better staff then while we talk about goals we have to be very specific about the number as to who is it that the organization needs for example how many more doctors and what kind of doctors are going to be their remunerations and what is going to be the impact of that on to the financials so goals are measurable in terms of numbers in terms of time scale in terms of percentages and so on and so forth I think this could be the best possible explanation for the difference between objectives and goals or in other words between strategic objectives and financial objectives the goals are measurable because of that measurement that we are in a position to identify who are better managers and who are not so good managers and on the basis of that could we give increments, could we give promotions or we tell people that they have to pull themselves better and they have to perform better so that they can walk in step with those who are better managers if we are projecting a deficit while preparing of a business plan we shall take a good look at which objective is going to let us generate the requisite financing and only then we shall specify the goal so this basically is a translation of the right objective into certain specific measurable numbers while we specify goals. If a new program is in the offing we will have to see which objective it really advances and what resources are needed to advance that objective and we shall translate all this into numbers like how many more people we need and what kind of infrastructure if at all we need that we do need and what are the overall assets that are going to be required to advance that particular objective so translation of that objective into all those things that I just mentioned is going to be part of the goals like I said earlier I am going to give you a couple of examples in the next component which will make it very clear what is the difference between objectives and goals and I will start with the mission statement and then go right down to the goals making it very clear to all of us how a program should be put together while we proceed with the strategic marketing process Thank you