 As-Salamu Alaikum Khawwati Universalat. Wasim As-San welcomes you to lecture number 23 of Marketing for Non-Profits, MKT 628 at the Virtual University of Pakistan. This component of learning is going to be an extension of the one I talked about earlier and therefore I am going to concentrate on two broad aspects of relationship marketing and internal marketing. Let us start talking about the relationship marketing and it goes without saying that this is a concept which really has caught on over the last couple of decades and the more the nonprofit sector grows, the more the importance of relationship marketing. It's because of the simple reason that it is because of maintaining long-term relationships that really help the organizations to sustain themselves Relationship marketers develop relations with different members of the audiences starting from donors to volunteers to any other stakeholders that can be supportive toward the cause of the organization and thus help it achieve its mission. And the fact is many organizations find themselves short of capable and requisite human resource that could match the level of growth they have attained and they need to talk with volunteers who can offer support to the organization in terms of execution of the programs. In terms of donations, I think it goes without saying that that happens to be the foremost factor responsible for sustaining the organization because not all nonprofits can generate their own revenues to the level of 100% and therefore whatever is the deficit, which generally is the case, is covered through donations. So seeking donations with the help of developing relationships is an important aspect and that is something which is very obvious. However, the aspect of professional support in terms of doing different kinds of jobs within a non-profit organization is something which may be rather obscure to many of us. The fact is that a non-profit organization may seek support in the area of marketing, in the area of inventory management supply chain and also in the area of finance. This is not to say that the organization is not really competent enough to carry out these jobs. It basically boils down to the fact that the organization is not fully equipped with the right human resource that can do all these jobs. For example, a non-profit may have to revamp its systems and procedures when it comes to developing the supply chain. They have to do a lot of purchasing, they have to manage the inventories and they have to ensure that whatever the need gets to the organization in time and therefore they may need the help of certain people, I mean professionals like you who may not be part of the organization but who are willing to offer their expertise in developing whatever they want to develop in terms of systems and procedures. They may need support in terms of developing a small feasibility report because they want to grow and they want to get into an area which is not yet part of the organization, meaning organizational operations and therefore they need outside support. They do have a finance and accounting department that are doing their job of maintaining books, yearly accounts and all related documents and reports they generate from time to time but they do not really have time to get into things like developing a feasibility report which happens to be something away from the mainstream of their responsibilities. Therefore they may need to go to a professional who can render her service in developing that feasibility report. Another example, just to make the perspective very clear, they may have to contact people like you because they want to improve their communication campaign. They know that they have to talk with the different audiences but they may not have the kind of professional expertise which you people have and it is you who are going to tell them they need to talk with different audiences and in order for them to talk with different members they need to have tailor-made campaigns that are focused on particular audiences like they need to have one campaign for donors, another one for volunteers and yet another one for other stakeholders. And on top of that they need to have a generic primary messaging platform which talks a lot of sense and which carries all the ingredients of the organizational level as well as the identity level of brand-raising process. To clarify the concept of relationship marketing we would like to draw a comparison between transactional marketing and relationship marketing. We know transactional marketing is a one-time thing because we make one transaction and it is over. This is not the case when you develop relationships. You develop relationships because you want to get into a long-haul transactional mode. The basis still remains the carrying out of transaction but on a repetitive basis over a long period of time. So in other words, you involve yourself more with your audience and you extract a higher level of motivation and engagement out of your audiences because you want them to come to you again and again and buy your product. How do they buy your product? Well, they make donations over and over again because they are bought into the concept or into the cost that you are selling and therefore they are loyal customers. They are paying you over and over again. And by the same token, you motivate volunteers to work for you over and over again for the same program or for different programs because it is not a one-time thing. Given the fact that relationship marketing is a long-term exercise it makes it very obvious that it becomes the basis on which organizations are sustained and I would repeat it just to summarize, you seek donations over and over again. You make your volunteers more and more motivated so that they can work more and more and don't forget this kind of an exercise is less expensive, meaning it is cost-effective and it is more effective in terms of making people play their roles more efficiently because they are doing one thing over and over again and like the brand loyal customer for whom you don't really have to carry out a lot of advertising. In other words, you don't really have to spend a lot of money in attracting that customer who is a loyal customer and automatically comes back to you for a repeat purchase. These members of the audiences who are regular donors or who are regular volunteers are the ones who make the whole thing more efficient and cost-effective and therefore we can say that your engagement, meaning your involvement and engagement as marketing managers is of higher importance because you are playing the role in making them graduate from basically the preparation and action stage to the maintenance stage and once they are into the maintenance stage you start developing relationships and this is exactly where the concept really fits in because maintaining such relationships is the essence of the whole marketing effort in terms of personal persuasions and the personal persuasion could be much more effective than advertising meaning paid advertising and needless to say that this happens to be a step forward in terms of the personal communications. We also can take a look at some new dimensions which relationship marketing has given a lot of impetus to. It is because of the relationships that we are in a position to talk with that portion of the population that has been influenced by our programs. Let's go back to the example of those key influencers who play a very important role in rehabilitating the drugies. Now these are the people who were drugies themselves at one time. It is because of their understanding of the program and their understanding of motivations of those addicts why they take to drugs and therefore these influencers are in a better position to play a very positive role in making the change happen which is the ultimate goal of any social marketing program. Another example of relationship marketing is from the academia. You know very well that universities like to develop relationships with their students well beyond their scholastic years because they want their ex-students to become donors, funders to their cause. When that happens they bring in more people because they can influence their peers into doing what they are doing meaning making them donate towards that cause as well. And it doesn't stop there. It is because of the relationships that universities can engage their ex-students into programs of higher learnings and attract those ex-students to seminars, higher education of the programs for executives and conferences. Thereby making that audience more contributory towards the cause and giving the cause more credibility and a new dimension. So if you take a look at relationship marketing you will realize that it can do a very effective job in publicizing the nature of the cause and keeping different audiences engaged to the cause. Now the question here is if relationship marketing is that important we obviously need to have relationship managers who are extremely competent in carrying out their responsibilities. And like I said it is a step further from the personal communications and therefore you need to have the personal communicators who could be good at developing relationships. The fact of life is that we have different kinds of people within organizations. We have people who are very energetic, outgoing and extroverted. Then we have people who are introverted, mild-mannered and submissive. These people are far from energetic. Now this is not to say that they are incompetent people, no. They have different traits and if they cannot be outgoing and the ones who should go out and develop relationships they can do an excellent job of providing different sets of information to those who are entrusted with the responsibility of developing relationships. So everybody has to play their respective roles and it is only a question of who is fit for what kind of a job. People who are very self-confident and really have a burning desire to get rewards against all odds, meaning in situations in which they know are going to be full of resistance and obstacles, they still take the challenge and jump into it because they know just one thing, that they have to win over factions of people they talk with because they have to develop relationships. Now in the words of an expert, these people know that the people they talk with are not the ones who love them, but still they go and they try to develop relationships because they have to win them over and that's the challenge which they must surmount. It is part of their psychology. Now in order to sustain relationships which these people develop, they have to do a few things which are extremely important because they keep their audiences engaged to the cause. And one of the important things that these people do is offering acknowledgement to their members of the audience who work for the organization or who donate on a regular basis or who contribute in any particular sense towards supporting the cause of the organization. And this acknowledgement mostly is done by giving them certificates of acknowledgement for rendering a particular service towards the cause and by giving mementos or even prizes at times with making the whole thing public in order to make others motivated as much as these people are and giving them a sense of patronizing the cause of the organization. When these people meaning members of the audience who have been acknowledged for the service they have rendered when they realize that they have been acknowledged as patrons towards the cause they feel even more motivated and they become even more committed to the cause. And this goes without saying when that happens they bring into the fold even more people who like to follow them in their footsteps. So we can say this is a great platform from where marketing people can not just motivate their existing members of the audiences but also can bring in more people into the fold who may follow into the footsteps of motivated audiences. And marketing people therefore should spare no effort in trying to put together all the reinforcers which can be shaped up as certificates of acknowledgement or mementos or rewards of different kinds. The basic idea here is to acknowledge what those people have done. And once they are acknowledged as patrons the word of mouth advertising done by those people goes miles and miles in terms of bringing promotional mileage to the cause. The next area I pointed out earlier is internal marketing. As much important as personal communication and relationship marketing internal marketing also has acquired a new dimension with the realization that all those people within any organization who come into contact with stakeholders play a marketing role. Why? Because they at their point of contact talk about things which are going on within the organization and anything that goes on within the organization is part of the program. And therefore these people can be good key influencers supplementing the efforts carried out by the marketing department. So the marketing job is not just confined to the marketing department per se. Good marketing managers think and are convinced that all the points of context within the organization have got to be highlighted and toward that they carry out an audit of the organization deliberate to see all the points where all such interactions take place between the people from the organization and stakeholders and then try to highlight the marketing effort which such people should carry out in coordination with the marketing department and it is not difficult to carry out this kind of an audit because we know the purchasing people within the organization are in touch with suppliers day in and day out. Now do not lose sight of the fact that your suppliers also can happen to be your donors at the same time and your suppliers may also like to be the part of the execution team of the volunteers because they think it is a noble cause they are doing business with the organization they are selling you certain parts offering certain supplies that's part of business but then working for the noble cause they may also offer their services in some other shape and form. People from the accounts and finance get into contact with all those possible stakeholders who get into contact with the organization and the same is the case with any other department that has the potential to talk with stakeholders. I mean the only department that may not have a lot of interaction with the stakeholders is the one that is involved in developing your computerized systems. You can say that they happen to be a back office that is concentrated on a certain objective of the organization cut off from the stakeholders in terms of talking about the program or involving themselves with the day to day activities in terms of carrying out the businesses or different dimensions of the organizational businesses or operations and therefore they may be the only people who may not play that kind of role but even they have to know the marketing effort and they must also know what the mission of the organization is and what is the elevator pitch because in their off hours when they interact with stakeholders or any portions of the population at large they may say a few things that they may carry a certain level of influence and may motivate people to do something for the organization anyway. My point here is that the points of contact within the organization have got to be highlighted by the marketing department and they have to come up with kind of a training course for all those people who occupy those points of contact where interaction with the outer world takes place and they should make them kind of an extended portion of the marketing team and the fact is that organizations who are sensitive to this particular development and can develop this supplement to their permanent marketing force are in a better position to evoke a higher level of positive responses for the cause than those who cannot do all this. So internal marketing carries a very high level of significance in terms of influencing your audiences because of their existence, mere existence in the department and for the fact that they interact with them and during those interactions anything they talk has to be centered on the cause. Now let us take a look at the overall impact of the three factors of the personal communications the meaning of the personal communications, relationship marketing and internal marketing. Well the fact is that the cumulative effect of the total effort is much greater than the sum of its parts. For the simple reason that it works a lot toward the concept that we all know, BCOS, benefits, costs, others and self-efficacy. If you can recall that particular concept the fact is that the cumulative impact of the three factors of the personal communications can have a lot of influence on what we call others. You know why? Because given the efforts undertaken by the external marketing people, here the external marketing people are the people from the organization because they are external for the audiences who have been influenced. Now assume that the bottom line of the efforts undertaken by the marketing people is the behavioral outcome that we desire then you have achieved the results. Meaning the external marketers have achieved the end result and the change of behavior has taken place. When that happens it automatically means that there are people who have adopted the behavior. The new adopters of the behavior are known as the new influencers and as a matter of fact they are the key influencers and they take the place of the external marketers who in the first place started the program and their importance from that point onwards diminishes and the importance of the key influencers from within the society increases and when that happens the impact of two more concepts really starts taking hold. One is the word of mouth and we know the power of the impact of the word of mouth advertising. It is not really the formal paid advertising carried out by the department of marketing. It is something which people talk out of their conviction. They are so much satisfied with the product they have bought meaning the program they have been subjected to that they talk about the outcome. The others can see that new behavior performed day in and day out and as a result of that they also like to be new adopters of the behavior and even if they have to ask a lot of questions to the early adopters they can ask them by dissecting the whole program and then in the footsteps of the early adopters to the benefit of the marketing people who originally set the program in and this is something which takes us to the proof of social power and that is the other concept that I referred to earlier. The social power is something that makes many people into the footsteps of all those people who are early adopters and most of the people like to follow others and when they realize it is something that offers a benefit or a set of benefits they like to follow the behavior. Let us now talk about non-personal communications. In other words paid advertising which is done through paid media and we all know that we classify paid media in terms of electronic media, print media, online media and a host of other traditional tools that we put together in order to communicate with our audiences. Here the concentration is going to be on advertising and therefore we can classify advertising in a non-profit context into four different areas. One is what we may call charitable advertising and the other one is private non-profit advertising and the third one is association advertising and the fourth one is social cause advertising. What is the difference? We all know that we have different advertising approaches or for that matter communication approaches for different audiences but then we also need to understand under what circumstances we advertise and what kind of resources we need to muster in order to advertise our campaigns. In charitable advertising we certainly go for generating donations on a regular basis or also in emergency situations because we need to have the money for a charitable cause and that is why we give that particular advertising the terminology that I just talked about. The second one is private non-profit advertising. This kind of advertising is basically done by institutions like education. For example, your university, the Worcester University advertises a lot in terms of offering different programs or in terms of also talking about the testimonials given by ex-students and so on and so forth. By healthcare units, hospitals, even museums in the western world or for that matter religious faith organizations they talk about their particular lines on which they want to attract the people and spread what they think is a very noble cause and they like to advertise and you see a lot of print media hidden there in towns carrying their particular message. The third one is association advertising. This is the kind of advertising undertaken by different associations because we know it from our understanding from one of the preliminary components of learning that associations basically are non-profit organizations even though they can represent industries that happen to be very resourceful and rich but associations are registered as non-profit organizations and therefore in most of the cases associations happen to be also resourceful and they advertise their causes from time to time and to give you an example I would like to draw your attention toward different kinds of appeals which different associations are going to make to the higher ups or even to the highest authority of the government in the newspapers drawing their attention to certain problems they are facing. And the fourth one is a kind of advertising which is a new concept but the fact is it is the most interesting part of the whole advertising effort undertaken by non-profits and this is what we call social cause advertising. This may sound like something extremely generic but the fact is it is a new concept and it happens to be the most interesting of the overall advertising effort undertaken by non-profits. This works like the following you basically create an association which is responsible to carry out advertising on behalf of different causes and these causes may spring up on a very wide spectrum carrying areas like education, health, environment and so on and so forth but the fact is that this association does not really take it for the advertising they undertake and at the same time non-profits who are following those causes from the areas that I just talked about do not pay for that. This association basically is entrusted with the responsibility of contacting advertising agencies, promotion agencies and event management companies and also media seek their support toward undertaking the whole effort. So in other words they are in touch with advertising and promotion agencies that help the association with developing ads for different causes and then they are in contact with the media to place those ads. They are in contact with television, with radio with other online tools and at the same time they are in contact with the print media and so on and so forth. So what I am saying is the beauty of the concept lies in making the whole thing free of cost and the association works on the donations which are made by donors and again the communication, this kind of association may have to undertake it has to be extremely convincing and powerful because they are kind of a third entity they are the go-between who are working on behalf of different nonprofits and they sell the basic idea behind different causes to advertising agencies and the media and make those programs more visible and heard among their respective audiences with this understanding of different kinds of advertising approaches in a non-profit context let's now proceed to the concept of establishing advertising objectives the reason I want to talk about how we establish our objectives is because they want to advance our understanding toward making budgets you remember I did talk about sticking to the budgetary exercise while we undertake our communication process because we would like to be extremely confident and sure about the kind of money we have and the kind of tools of experiential level that we can put together and afford all of them within our constraints and anything which we are not in a position to do we seek others help and we must know where we draw the line we cut off our resources and start getting resources from other sources and therefore the need for very specific budgets in this background we can say that advertising objectives flow out of two primary factors the one is the target market and the other one is the positioning of the program these two factors could be basically defined to what extent we should go for advertising and the kind of money that we need to advertise the program and therefore the size of the budget basically stems from the objectives that we put together and I think we don't really need to have a lot of debate on why it is positioning which defines advertising objectives if we have a complete clarity on the concept then it is very obvious there are certain positionings which may not call for a heavy amount of advertising whereas there are ones which will call for a huge level of advertising however given the constraints it is the responsibility of the marketing department of the organization to what extent they can really afford advertising for their particular program it basically is the target market which we need to understand in better clarity in relation to the advertising objectives and then budgeting because this also takes us to the overall exercise of the marketing mix now here one question may flash into your mind why I am talking about marketing mix well let's go back to the concept and we know that one of the P's is promotions and that's where advertising fits in so depending upon the extent and the magnitude of advertising that we think we should be putting together and the size of the budget we come up with a complete marketing mix for the overall program and therefore everything has its ripple effects and affect the other variables back to the target market we need to define it like I said in the context of advertising a little bit more and three factors that we need to comprehend here are the target market selection, target response and the target reach and frequency why is it that we really need to be clear about target market selection because we must know where they are and who they are if they happen to be in a remote area then the tools that we put together for advertising are going to be different and hence very different kinds of objectives and another example of the target market selection is the level of education of the target market if they happen to be highly educated people who are also the tech savvy that really will shift our objectives from one to one contact to the things like the online tools and therefore the shift in advertising objectives or rather concentration of advertising objectives on the basis of the target market we are going to be dealing with therefore who they are and where they are is extremely important and then the factor of the kind of different publics that they could be for example they could be individuals they could be different groups and together they could be the different huge chunks of audiences because we are trying to communicate with and this is an area that I have covered a lot in detail and together I am sure that you are experts on this particular aspect that you need to have different communications for different audiences because we need to talk about things which motivate that particular audience and we do not really cause overlaps that are meant for different audiences because those are the kind of things that we talk as part of our primary and generic messaging platform and therefore to summarize selection of the target market what really can be said in very plain words that we have got to be clear about what to say, when to say the way to say and who should say it and I would like to draw your attention toward testimonials this is part of who should say it I just talked about one example in the context of advertising from your particular university you will recall testimonials by your ex-students who are enjoying good positions and they talk about their placements owing everything to the university's program and this could be one example of choosing the right target audience and then working on the right advertising tool or vehicle the next factor is that of the target response extremely significant because the marketing people in advance has to be clear about the kind of response they think they should be getting they will never get response which is absolutely satisfying in the 100% terms but the factors they are basically working for a behavioral outcome and I am not intentionally using the terminology behavioral change it automatically means the outcome is going to be there but to what extent that is something they should be clear about the kind of response they will get and in order to be clear about the kind of response that they should get it takes us back to the behavioral change model and therefore the advertising that we should put together has to be in line with the stage where our audience happens to be and therefore we pick advertising tools and put our objectives accordingly we have one set of objectives for people who are into contemplation stage and by the same token you have different sets of objectives for the next stage and the next and the response level therefore has got to be established in advance which gives marketing people a lot of clarity in terms of putting together numbers that they are talking about because here we are talking about establishing objectives toward determining our advertising and marketing budget the third factor which forms the target market of course is the target market reach and frequency again a very important factor because it is here that the marketing people are faced with the formidable challenge of determining again in advance what kind of reach they are expecting there is hardly any marketing organization that really can have outreach spread over 100% geographical area or 100% of their audiences whatever they are even if they are not sparsely situated they have to be clear about the percentage of reach they think or rather they envisage that they will achieve and that brings a lot of clarity into establishing objectives by the same token another factor which is a part of this the variable is that of frequency as to how frequently we go for the advertising exposure exposure over a certain period of time now this basically is established with the kind of potential which the different segments of the market offer us as the marketing people we must know the potential level of the different segments and if you go back to the segmentation exercise we will realize that segment A for example may dictate that the frequency of advertising should be double that of the exposure given to segment B because the potential for segment B is not as that great as a matter of fact to see the potential of segment B is half that of segment A and hence half of advertising for the potential of the segment which is weaker and double the exposure for the segment having a higher level of potential with the meaning potential of response so this is how you establish your advertising objectives and I would like to summarize once again the basic variables that form our target market and then become the broad basis of our advertising objectives and those are the target market selection and it may sound very simple but I would like to rub this in over and over again this is where many marketing people start taking things for granted and go wrong and therefore we've got to be very sensitive to drawing lines between different segments of the market that we are going to be dealing with and be very clear about the one that we want to pick for the advertising or communication exercise the other variable is the target response meaning the response level in terms of the target market being at one particular stage of the behavior change model and the third variable is that of target reach and the frequency reach cannot be 100% but it's got to be made optimal and we make it optimal by looking at the response level of different segments or different portions, different sub-segments within an overall segment and then decide which sub-segment or which portion deserves a higher level of advertising exposure in order to make our advertising exercise more optimal and effective with this we are all set to go for putting together our budget, how do we put together budget I think it is a simple exercise which we have learned from other courses as well and in terms of an advertising budget which is part of the overall marketing budget I think what we have to keep in mind is that we go for a cost spread across the categories or all across the communication and advertising tools that we think we have to put together to come up with a comprehensive or an integrated marketing campaign meaning a marketing communication campaign if we think that we are going to confine to the online tools and alongside the portions of the print media ok so be it, if we think that we need to have our presence spread all across the available tools then the budget is going to contain all those categories with costs associated in other words we go for a cost spread that specifies all the tools of the experiential level that are going to be part of our specific advertising campaigns all around the year and we talk about the different cost factors month by month and we specify them broken into the parts and sub parts so that we have a lot of clarity in terms of executing our campaigns so that when we start comparing what we had budgeted with what we have achieved because once we are into the execution mode we get about the variances and that is the beauty of the budget that's why we come up with the budget so that we know we are on the right line and the moment we are off track when we see a huge variance from what we had budgeted that there is something wrong and that is where we stop and start thinking what really has cost this erroneous situation so that's the beauty of budgets now a few more words about the budgeting you divide your costs not in terms of just the advertising and communication tools but you also talk in terms of geographical spread in other words if you are working for a cost which is national then you have to talk about your advertising budgets and tools which are going to be used for a wider spread all across the geographical regions and then again depending upon the response level you establish the kind of budgets or the amount of the rupee spread which you associate with each region and also with the tools all these details have to be part of the budget so that you can later on track and monitor your own developments that you had planned as part of the budgeted process