Wednesday, May 4, 2011

Marketing: Gold-plated Charitable Dreams

In the Consumer Packaged Goods (CPG) world marketing is king. It may be the first budget to get trimmed when sales volumes are soft, but it’s still king. Many charitable leaders look with envy at those impressive ad campaigns and dream of running such a gold-plated media campaign in support of their organizations

Sadly for those charitable leaders it’s actually not that easy, nor possibly even that advisable to launch the campaign even if the funds are available, and here’s why:
  • For any charity to spend that much on any media vehicle might well scare off new donors, let alone offend existing donors. If you publish too glossy an Annual Report some donors worry about mis-spent gifts, so just imagine the questions about your new TV and print campaign. "If they have that much money why do they need more of mine
  • Charities are complex. Getting your whites whiter, or selling "fewer cavities", are simple messages. Charities do need to figure out effective ways to communicate a simple and impactful version of their message – but even once that’s done how much time and effort (and money) do you want to spend educating the broad mass of prospects on the real complexities of your activities
  • CPG marketing departments are full of bright minds who spend a lot of time figuring out the "key message", and once that’s done spend a lot more time and money with their agency figuring out how to most cost effectively reach their target audience. Very few charities have those resources, so there is a very real risk of spending money on media that doesn’t reach your target audience. In other words a shotgun approach is expensive and may be doomed to failure anyhow
In the end, for most charities the biggest distinction on the Marketing side is about products versus feelings. CPG Marketing is fundamentally about meeting an unmet need, real or perceived, by trading the consumer’s money for a product. By definition every charity meets a need, but charities ultimately trade a donor’s money for a good feeling. And selling a feeling is a very tricky thing. Done well both CPG Marketers and charities can achieve greatness through selling feelings (just ask Apple or Nike). But its hard to do well, particularly on a small budget

That’s why most charities stick to marketing in ways they know best. For example, stewarding donors well, getting articles in the local paper, or sharing a well-written newsletter. Solid, less glamorous but certainly less risky ways to consistently build a charitable brand.

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