 As-Salamu Alaikum Wa-Alaikum Wa-Alaikum As-Salam. Wasim As-San welcomes you to the virtual University of Pakistan by getting into lecture number 14 of Marketing for Non-Profits, MKT 628. The topic of learning is positioning. We are very well aware of the concept of positioning and the intention here is not to talk about what positioning is all about, rather to understand how it lays the ground for all operational strategies that we have to formulate to complete our programs and to achieve the mission. Basically, we also know it is the essence of the point of differentiation to which we want stuck and placed into the minds of our target market about our programs being different, getting some uniqueness of character and features. And those are the features which are beneficial to the target market. We know very well that the positioning has to be communicated with the essence of the brand being very different from the rest of the crowd. And if we succeed in communicating this particular feature, which is all about some extra benefit, or a benefit which is very different from the competitors, we are successful in positioning our brand into the minds of the target market. Another factor that we have to keep in mind is that the positioning becomes very important in the non-profit sector for the simple reason that we are operating at a competitive market stage. Anyone who thinks that for the reason that non-profits operate for noble causes and therefore nobody should be against those is kind of a misconception. The fact is that we have to compete for so many different things in the marketplace. We compete for stakeholders, we compete for funds, and we also compete for programs. If we have a similarity of programs being offered by two different non-profits or more than two non-profits, we certainly are into competition with those entities in terms of selling the product. Here we have to understand the nature of competition before we really can size up the competition and then formulate our position, meaning the most appropriate position. For the most appropriate position to take place, we have to size up competition and fully understand the nature of it. Whether it is the war on property or war on drugs or fighting against cancer or it's a question of getting into prosthetics that basically is providing and fixing artificial limbs on disadvantaged persons, all good causes for which apparently there is no competition but the fact remains there is competition in terms of seeking attention of different stakeholders. In direct competition and it goes without saying that direct competition is the one in which we compete for the same cause. Meaning if two NPOs are working on the same cause, they are direct competitors and that makes it even more important to differentiate our program from the other one so that we really can stand out. The difference between direct and indirect competition is that in direct competition we have to compete both backwards and forward. The backwards in the form of seeking stakeholders' attention and forward in terms of delivering the program because we are working out in the marketplace. In direct competition we compete just backwards but the fact remains the importance of positioning that makes itself felt whether we are operating indirectly or directly. Therefore the need to size up competition and measure it appropriately becomes even more intense because that is the only way to move forward in terms of formulating our strategies. Lack of understanding on part of donors and funders and their inability to go deep into the cause should give us a better reason to come up with differentiation and place our program into the minds of all the stakeholders in a way that it becomes their conviction that working for the program is going to be purposeful and that is the beauty of communicating the position. You can see here that the pivotal thing here is the point of differentiation which is communicated with the help of a positioning statement. The positioning statement as we all know communicates the promise that we make with the target market in terms of offering them the benefit that they are looking for and the benefit which already has made a place into their minds and if they already have a good place in their minds then our position is strong and well held by the target market. Getting back to the need for creating this point of differentiation let me add here that we have to win the war on two different fronts. One is the money front because we have to generate money. The other is hearts and minds and when I say hearts and minds obviously refers to the stakeholders and our customers. On the money front we have got to break the belief paradox according to which they think all causes are just about the same by differentiating our program and creating that conviction on their part that we really are different. In other words here our job is to prove it to them that if we stand to do things which are different we have the capability of doing them and achieving the goals and fulfilling our mission. This way our stakeholders, donors and funders in particular will take us seriously and look at our program through the same lens that we look at. The other front is that of the hearts and minds. It again is a function of creating a strong position into the minds of the stakeholders. In other words we have got to prove it to the stakeholders that the program that we are running is credible, it is reliable and it certainly carries a benefit for the target market which is different from the rest of the crowd and we have the capability to deliver that program. It is extremely significant to win the war on hearts and minds because this war takes place in there and not in the market. Once we have won the two wars we are all set to create a position which is credible and which is going to be well held in the minds of the target market. The next question is how do we establish this position that I am talking about? We have to go back to the concept of strategic intent. We know that it basically is the function of the resources, our capabilities and core competencies. Out of all that flows our sustainable competitive advantage and sustainable competitive advantage is the one which is not easy to copy, which is not easy to substitute and which is something that we can sustain for a long time to come. Once we are sure about the sustainable advantage that we have to ourselves, out of that flows the positioning of the brand. Knowing that a strong position homes into the hearts and minds of our customers and stakeholders, they get convinced that we can outperform our competition by putting our programs more efficiently and then delivering them according to the promise that we made. We also are in a position to better manage our funds. This is the feeling that stakeholders must have in order for them to continue giving their support to the cause that we are working for. There are certain attributes of a strong position in the first place, not all the features that we see attached to the program could be the basis of positioning. In other words, if we carry out the strategic process which basically is the backbone of the positioning, then we shall see that we have more strengths than one. And not all those strengths should be our positioning points. We have to pick just one of those. And the one that we pick is the one which can be very convincingly communicated to the target market in the first place and which carries the most meaningful benefit for the target market. The target market is not really concerned about all those strengths which go into the program to make it as beneficial as they want. So we have to talk about the benefit and it is that benefit which must be highlighted. So the feature that we pick is the one which most optimally conveys the point of differentiation. To take you back to the example of the food bank, I think the point of differentiation in that example is reliable distribution. We have such a distribution network that we fulfill our mission on a daily basis by providing food to all those deserving families who must get their daily quotas. Whether they get those through the wands that we have as part of our logistics or they come to the distribution point and collect their food, they do get it by the end of the day. And that basically is the effectiveness of the distribution network and therefore our positioning there has to be that of a reliable distribution company. The target market is not really concerned about our ability to integrate different constituents who through that integration and synergies create such a setup that it is in a position to distribute food as effectively as we do. And therefore it is the end thing which really matters to the target market because that's where the benefit lies. And do not lose sight of the fact that positioning must talk about the benefit and it must revolve around the benefit which can easily stick into their minds which is something they look forward to and when they look forward to something we have the opportunity of capitalizing on that by making that point our position. And another feature that we must attach to it that the positioning has to be very simple, strong and simple. When we talk about the liability factor in terms of distribution I think we are being quite simple and it is something which is understandable and not philosophical. If you start talking about those philosophical points which are parts of the backbone of the whole program it is something that should be a matter of concern in terms of internal marketing and not external marketing. It is not externally driven. Anything which is externally driven has got to be simple and strong. Yet another attribute that a good strong position must carry is our ability to support that point with our strength. It is a very simple statement which basically means that we have to be in a position to throw our weight behind our position. In other words, there may be certain features that we may find very attractive for the market as well as for the company but we may not find ourselves in a position to support those features. However beneficial those may be for the target market because we do not have the strength to support those features. We may not have resources. We may not have core competencies. We may have the basic capabilities which all of the competitors have but if we do not have something which carries that point of differentiation which adds to the capability meaning the basic capability and make it a core competence then we should not be considering that particular feature as the point of positioning. So position has got to center around something behind which we can throw our weight. Let us go back to the example of the nursing home. We are in a position to make a very good combination of our resourcefulness and our execution capabilities in order to make our position very strong there. What is the position? The position is not about offering a space for living to elderly people because that is what every nursing home does. We are doing something extra and additional and we are doing that maybe in partnership with other constituents. Whatever is the case we are in a position to offer them self-dignity through certain activities which they can choose and carry out as part of their hobbies as part of their normal living normal respectable living. It is not a place where they are just counting their days before they say goodbye to this world they are living at a place where they look forward to the rising of the next day. To summarize this particular attribute let me say here that if you happen to be rich in resources and also have the execution capability of doing something in a very different way that you really can excel at that then you should use all those strengths to support the position. Or in other words you have to create a position which can be created by that richness of resources. So the positioning from that point of view also has to be resource centric and also strategy centric because any strategy or a set of strategies that you formulate in order to communicate the positioning have to be supported with the richness of the resources and your execution capabilities. Here, I also would like to draw your attention toward the fact that the example does take into account integration of different constituents in the sense that this nursing home happens to be extremely efficient and different in that it has the support of certain partners. I'm referring to the example of Pawn's marketing whereby you get into partnership either with a hotel, a restaurant or maybe a clubhouse. Now these are the places that really can offer expertise to the nursing home for it to become what it really is in terms of it offering an enjoyable life to its residents and therefore the role of the constituents is extremely important and if you think that you can create a very strong position in partnership with somebody else you should not hesitate doing so. Even if the partnership is not long-lived it is going to be a short-lived phenomenon. You still can create a very strong position and then you keep it strong by keeping your programs as effective as they have been or rather even giving them more strength. Having known the attributes of strong positioning the question that should flash into our minds is what is going to be the marketing implication of all that? Well, we as marketing people have to understand what exactly is in the minds of our target market. What exact position they carry in their hearts and minds and for that we have to carry out a little marketing research with the help of a focus group or something very close to it at times interviews also but the effort to unravel what they really think about the program and the organization has to go on from time to time and the ones we try to reveal that we may find that the target market has three different kinds of conceptions or positions regarding our organization in their minds. One could be that we are as good as anybody else meaning that we do not really have a very specific position in the minds of the market. It is not a good state of affairs. The second perception could be that we are carrying out the program in a very highly efficient manner which means that we carry a very strong position and the third perception could be that we are not really an efficient organization and therefore people do not really look upon us as a group of professionals that could fulfill the promise they made in the first place. A very difficult and challenging kind of a situation. Now how we deal with these situations one by one or whichever is the case is a matter of strategy that we have to pick. We can fix the damage but we have to have the right strategy and which flows out of the findings that I just talked about. If it is a question of over being as good as anybody else then it may be the question of the pre-contemplation stage and we may find that people are not really aware of the position of the program or the organization per se and therefore we have got to put together a communication campaign that can create that kind of awareness and encourage the use of the product or the program that we intend selling. The second perception relates over having a very strong position because the market looks at us as a bunch of professionals who are extremely efficient. Now here there is a need to continue reinforcing the action stage of the customer because they have changed their behavior. They are acting upon what has been professed and therefore there is a tremendous need on our part to be very active in pursuing the campaign that we put together and kicked off. So there is a need to come up with something which is a reputation of the same campaign or which may carry some additional elements. The best judge of the situation are the marketing people who know what to do with the mixed bag of communications and this goes without saying that it is the communication which basically takes over all the concepts that we have talked about so far because it is through communication that we become visible, we create awareness, we talk with the target market and they get to know what the whole thing is all about and what is it that we are trying to achieve. Communication strategies therefore are an extremely important part of the overall marketing strategies. The third perception that we have talked about is about our being an inefficient organization meaning that we cannot even deliver what we promised and this is a state of affairs which calls for probing into two different sites. The one is, is it that it is just a perception or is it a reality? If it is a perception we have to put together a plan that can come to grips with that misperception clarify it and do something which changes the position the negative position in the minds of the customers or the target market. It is a daunting task and we generally have to reposition our product or program for that matter because undoing something first and then redoing it is an effort than it takes in the first place to create a new position. However, whatever is the case it has to be dealt with appropriately. If it is just a question of a misperception then that misperception has to be cleared with the help of a very smartly put together communication campaign because the program is okay and all the ingredients of the program that are going to form the basis of execution in place, it only is a question of communication or the right communication not taking place and therefore you have to have a smart communication campaign that can clear that misperception. It is not going to be as easy as it is said but the fact is that probably is one of the better ways to come to grips with this kind of a problem. If it is a question of a reality in the meaning it happens also that we are not an organization of efficient people and we do not really have the basic capabilities and the core competencies then it requires a very comprehensive strategic analysis of the whole process. We have got to go back to the strategic intent and take stock of the whole situation. What is it that is causing this problem? Is it the lack of resources, financial resources, human resources or information systems or something else or is it that we do not really have the basic capabilities and we need to do something to revamp our human resource or is it that we do not have the financial resources and if that is the case we have got to go back to the donors and funders and for that we may also have to carry out some overhaul at the level of the board of directors or the top management or is it the question of core competencies? We have the resources basic capabilities but we cannot create a point of differentiation which could be pivotal in making the stage for that positioning to take place. So whatever is the situation or the challenge it is the job of the marketing people to deal with that accordingly so that a simple strong and unique position of the program can take place in the minds of the market. In this component I am going to provide you with an overview of branding. This concept is very closely intertwined with that of positioning and both flow out of the strategic process. Positioning of course takes precedence because it is an exercise toward highlighting what really is the point of differentiation. We communicate that with the help of a positioning statement and then doing everything which basically flows out of that meaning all our actions in terms of our strategic moves are a reflection of the positioning concept. And then we create the brand because that basically is the ultimate of the differentiation exercise with the help of a brand or a brand name here we are with the program or with the product which looks like the following way it has the following features and that is how it is different from the rest of the market and that exercise is dependent on positioning and that's why I said the two concepts are closely intertwined. As a matter of fact we can say that the whole exercise of positioning is carried out so that we can come up with the right most brand an effective brand which carries a lot of power. Power in the sense that it carries all those benefits with one being very major that has the position in the minds and hearts of our target market. We take a look at different products on the commercial side every product is a brand there is no product which is unbranded and same should be the case on the non-profit side. The other fact is if we take a close look at the different the good non-profit organizations within the company we shall come up with a very satisfying kind of understanding that there are so many programs that are very strong brands if we talk about the cancer facility in Lahore or the kidney treatment center in Karachi or the eye care trust in Karachi we know that these programs are very strong because they have very strong differentiated positions and whatever they do they do in a very differentiated way and they command a lot of respect in the minds and hearts of the target market. Why is it that people like to go to all these places in preference of many other places that may happen to be extremely expensive but it is the reputation and marketing terminology the position they hold in the hearts and minds of their customers or the target market that attracts them to come towards them and develop a relationship with them. Brands therefore carry a lot of sentiments and emotions and they also carry a sense of brand loyalty which is extremely important to all the constituents of the program because they offer a lot of support toward the making and maintaining that brand and then nourishing it. So in other words it is extremely significant to nourish a brand on a continual basis because once you have made it and the fact is that nourishment to commercial brands comes with a via a revenue stream and profitability that brands create for themselves and they hire the brand creates for itself the stronger it is and for so many given reasons. By the same token a brand on the non-profit side should also be extremely strong and it can become strong only if it has a strong position it will have a strong position if it really rules the hearts and minds of all the stakeholders because for that nourishment that I talked about in relation to commercial brands it comes in the non-profit sector through the stakeholders they are the ones who on a continual basis lay the ground for that nourishment and they will do so only if they are convinced about the ability of the organization they are working for or they are supporting to deliver on the promise they have made with the target market and the pivot around which the whole thing revolves is again the positioning first and then the brand the brand is going to be taken seriously only if the organization is in a position to rule the hearts and minds of the target market donors and funders in particular and then all other important constituents including activists and volunteers by convincing them that their presence is not mere presence they exist to do something extremely special highly differentiated and they have the core competencies to fulfill the promise that they have made this is a statement that I have made so many times during different components of this lecture and also earlier but the fact remains that these are the pivot said on which all the strategies that we are going to have in place as part of the overall program will rest and therefore differentiation, positioning and branding have got to be given very special emphasis and concentration to avoid making the brand we have to put together their support that I was just talking about with our execution ability and the once we have done that we are all set to move towards creating a special brand identity because brand identity have to be then put together with the branding exercise in order to create and then the maintain a brand and as a matter of fact when we do that we basically emphasize the point of differentiation differentiation will never leave us whether we talk about positioning or branding or raising the brand to further heights this is something that remains the pivot therefore we can say with confidence that the two factors of brand identity and branding exercise bring the point of differentiation into a very sharp focus and the fact is that that happens to be the most important objective of creating a brand because through that brand that you are selling that differentiation therefore we in turn can say that these factors highlight the existence of the program and it encourages utilization of the particular program that we are offering it ensures its usage and satisfaction on part of the customers if they find a satisfactory which hopefully they do and it lays the ground for brand loyalty in times to come brand loyalty is a very important factor that has to be created through this exercise which starts with positioning and rather with the point of differentiation and then gets into positioning and then the branding exercise with the help of brand identity because it is something that has to do a lot with that side of customers behavior and values that make him connect himself with the brand in other words when the customer connects himself with the brand he develops a relationship once he develops the relationship he expresses certain values and behaviors and it is those values and behaviors that we want demonstration of that we want generated in order for the customer to go ahead and make that connection to develop that relationship so in very simple words we can say that brands have a relational side and customers have a way of expressing themselves with the help of the values and the behaviors they demonstrate by relating themselves with the brand and the relate themselves with the brand by buying it whether it is a product or a program if it is a non-profit program they subscribe to it and they subscribe to it by creating that relationship and while they create that relationship they express certain values so that is the key that we have to be very sensitive to because that leaves the ground for brand managers to not just create the brand but rather further nourish it let's take an example of the relational side of the branding you happen to be a donor who wants to patronize the fight for cancer and the moment you donate certain values because you are a sympathetic person you think that this is a fight that has to be won and that can be won only if you make the organization that offers that program rich in resources so you donate toward that organization by expressing certain values if you take a look at the commercial side when you buy a product you are out to buy a motorbike for example and you value the sporty side of the bikes and you express your values by buying a motorbike which you think really is very sporty and if you think it is sporty it has to be that way because you are the customer and it is the customer the approval of the real position of a product and that real approval of the product is given the moment you develop the relationship by buying that product so you have bought the product you have developed a relationship and you have expressed certain values so by the same token on the non-profit side you express your values by getting into another program that deals with the environment toward an environmental cause because you think that controlling environmental pollution should be of paramount importance to the society that is the way you think and your thinking has got to be respected and you make donation toward that cause and the moment you do that by developing that relationship you are expressing yet another set of values now if you happen to be a different consumer and then the one who is supporting the fight for cancer you are a different segment whether you are the same consumer customer a donor or you are two different individuals the fact remains you fall into two different segments and that takes us back to how to draw boundary lines among different segments and this is an example of value based segmentation that you are segmenting two different groups of donors on the basis of their certain values and they express those values through brand loyalty and they have a loyalty toward a certain program the next important question for the marketing people here is they should think what is in there for them to do and act on well the fact is that marketing people should try to develop before their brand in a way that it ends up attracting prospective stakeholders who can relate themselves with their program meaning with their brand and express their values if they relate themselves with the program it obviously is going to lead toward expression of their values and that really is the consummation of the action that the marketing people look for in other words stakeholders have subscribed to the program whether they happen to be donors and funders activists or volunteers or the actual target market for which you are working because they are the subjects of the behavior change the action is done and the product or brand is created and you have created the equation following which the target audiences have shown their willingness to subscribe. Let us talk about certain factors which are to be considered by the marketing people before they set out to creating that identity and try to evoke the kind of expressions on part of the target market they need for development of the relationship that I just talked about. Well in the first place they have got to fully understand the market and then they have got to have a very clear understanding of the segment they want to really approach or a set of segments they want to approach you remember with one program you can approach with more than one segment so a clarity on the mental constitution is of very high importance for the marketing people it's not only that it also is a complete understanding of the position of your competitors and understanding of all the variables that are responsible for making the position of your competitor the way it is. So it is not just an understanding of the segment you are going to approach with the position that you have for your program it also is an understanding of the positions of other competitors or other competitors programs this calls for a very high level of appreciation of all the factors of internal marketing because we are getting back into the strategic process which basically started with the strategic intent and I tell you in a repetitive manner that this is where the real rub is if you pay attention to this particular concept of the strategic process you will not go wrong when it comes to creating core competencies and then sustainable competitive advantage and then the point or points of differentiation and then positioning branding and so on and so forth the importance of internal marketing in which you fully understand what the organization is all about and where your strengths are and where the weaknesses lie and how you are going to lay your hands on the opportunities that the marketplace presents by warding off the threats we have to understand that branding is a very comprehensive and integrated kind of an exercise in which basically is a reflection of a host of different strategies put together by different constituents of the organization and it is not just the name of the product the way it looks like or the colors it represents it is much more than that and much beyond that with that I would also like to add one more factor to it and that is the understanding on part of the marketing people of the imperatives of the external marketing they have to take into consideration the importance of coherence and coordination for example in the strategy or distribution of food you have to have a well put together communication campaign that talks about the reliability factor and assures the target market that food will always be available for those who deserve that but then you are not in a position to put the distribution strategy in place as effectively as you have promised that is a reflection of a short circuiting here you see there is no match between two different strategies meaning the communication strategy and the distribution strategy so in terms of imperatives of external marketing marketing people have got to be very sensitive to the need for having very well coordinated strategies that draw on the resources of the organization in a way that the strategy critical factors are addressed most efficiently in a way that there is no mismatch and there is no short circuiting