The Way in Which Direct Marketing Will Be Beneficial for Non-Profit Organizations - Term Paper Example

Contents Executive Summary 2 Introduction 3 Purpose of the report 4 Findings 5 Conclusion 9 Recommendation 10 Reference 11 Executive Summary Today non profit organisations are increasing but the increase in the number of organisation doesn’t matches to the increase in funds received. This is due to the fact that younger generation is not willing to donate. This has raised concerns and non profit organisations are finding it tough to continue with the programmes they have launched. To combat it non profit organisations are coming up with new ways. They are using direct marketing to attract donors. Since, they are cost conscious as the amount they spend is from the money they receive from donation so using it in an effective way is important. Non profit organisations are looking for newer ways to attract donors. “They are looking to find new ways to improve loyalty programmes”. Retaining and getting new customer for non profit organisation has become a priority. Having decided the target segment and using emails followed by calls to people who show interest will help to get new donors. To retain their old donors and make them donate non profit organisation needs to develop loyalty programmes and also show them the importance they hold. They should also send them regular updates on the way the donation was used. Thus, non profits organisation needs to concentrate and put all their efforts towards getting more donations. This will help the poor. It will help them to get food and make a good society. Introduction Today in this modern world people are looking for new ways to sell. Direct marketing is one. It is gaining prominence. It is a process where the product is marketed directly to the customer. Different mediums are used for it. Some of the ways are telephone, emails, catalogue, brochure and a few more. This is slowly shaping the modern society. This is helping as there is direct communication with the clients. Here in the case we see that non-profit organisation is making use of this way. This is because competition has become tougher. Younger generation prefer to spend then to donate. This is affecting the organisations. They are not able to generate the required sum to feed people. Even the increase in the number of organisation is affecting it. Even coming up with different campaign is not drawing many takers. The 40 hour famine campaign is also loosing relevance. The earlier generation used to donate the sum for the poor and skip their meals but the younger generation is reluctant to do so. This used to attract millions from all around the globe but slowly with the passage of time the numbers have dwindled. This has raised concerns. Today non-profit organisations are looking for newer methods to attract the younger generation. They are relying on direct marketing. This is because it is cost efficient and since they utilize the fund donated so they want it to be cheap. They are using medium like mails, telephone calls and press advertising. Still, non profit organisations doubt the efficiency of this system. They don’t know how many people will react positively. This is because people hardly have time to read as they have hundred of junk mails coming every day. To combat it they are providing details of the way funds are spent and also thanking the donors Purpose of the report The purpose of the report is to find out To identify the way in which direct marketing will be beneficial for non-profit organisations. This can be calculated by seeing how effective it is. To identify how the different market segment can be targeted and which medium would yield maximum results for non-profit organisations To identify how the direct marketing process can be improved so that the targeted customer respond and non-profit organisation gets maximum benefit for the sum invested. To identify how different loyalty programmes can be used to achieve customer being loyal to the non-profit organisations. To identify whether online marketing will be the future. Will the usage of mails and telephone calls be replaced by online marketing? To identify how World Vision will increase the clients at the same time utilize its existing customer effectively. Findings Direct marketing will be very beneficial for non-profit organisations. The research provides a bright picture as more and more people are using it and the success rate has grown. Some of the findings are Direct marketing is beneficial as this mode of promotion has gained success. The cost associated with it is also low. The detailed analysis has been provided further in the report. Non-profit organisations need to target the younger generation with different tools as they are the future and the highest user of technology. The detailed analysis has been provided further in the report. Non-profit organisation need to come with better loyalty programmes like giving a gift made from the poor to the customer as it gives satisfaction. “This will also help to improve the process both ways”. A more detailed analysis is provided further. Online marketing will have its place but it will be difficult to replace the other mediums as still there are millions of people who use those ways. Oorganisations need to make use of it. Non-profit organisations need to utilize their base effectively. This can be done by having more incentive schemes and programs which bind the clients. A token of appreciation will be good. It will help to retain customers Direct marketing Success Today nearly all companies are using this. The usage of it has grown manifold. The reason is that it is cheap. At the same time the response can be evaluated. For example, the non-profit organisation sends mail to 10,000 people. It can see response by finding out how many responded back. This helps to check the efficiency of the system. It also provides the organisation to deal with customers so a better understanding develops. “Today the industry has grown and is worth £18.34bn”. This shows that the usage has grown. This is the most widely used way in times of recession which the world is going through. The most used method is the Life Time Value method. Here the future earning is based on the number of existing customer during the period is used. This is helping to evaluate the success of it. Thus non-profit organization can use this method as it is successful. It can use its customer base and decide on the future. “It will also help to find out the future earning on the basis of new customer willing to donate”. Thus, it will help them. Target market & Segment Non-profit organisations need to target the younger generation. For this non-profit organisation should do a quantitative evaluation. Here they should consider various factors like cost of getting a new client, sales penetration to different regions, expectation of people who donate, the usage of the money donated and a few more. This will help in better evaluation of the market. Using the Life Time Value Model will help to determine whether the target market was correct. “It will also help them to determine whether what they had planned was achieved”. Still, since the youngster are the user of technology the segment will be that but the age group targeted will be found by doing the above analysis. Evaluation of other methods Non- profit organisation can use other methods like distributing catalogue or brochures. This will add additional pressure. The cost involved is high. There are still doubts regarding the success of this. People instead of reading it just drop it in the bins. This will thus not help much for certain groups. The above method has its application in suburbs. Here people have less access to technology. Using this way would help. “People would come to know about the non profit organisation”. This will help to get additional donation from those section. “The success of such a method is still doubtful”. More research needs to be done. This would help to evaluate the success. The other way could be television. The cost involved here will be substantial. This reduces its feasibility. Since, non profit organisation spends from the donations received so it would not be a very effective way. Non-profit organisation as they see after the growth of the society so they also need to be ethical in all they do. “It will create a positive impression and will help to win more clients”. To increase the customer non profit organisations need loyalty programmes. They can give gifts to people who donate. A small gift made from the poor would be great. Even when the donor’s name is displayed on their website along with address it will help. It gives satisfaction. More such ways need to be found out so that the existing customers also favour it. It will also help to win new customer. Non profit organisation need to show concern for their existing base and should turn back to them. It will help to build loyalty. They should also disclose the way the funds are used. Improving Performance of direct marketing Non profit organisation needs to use efficient ways to improve their relation with customer. Since, here humans are involved the situation needs to be dealt with care. Organisation needs to understand the behaviour. “The steps which will help to achieve the objective are firstly to identify the target group”. In this case it’s the younger generation. Then they need to find the age group. “This can be found by using the Life Time Value method”. After this deciding the medium is important. Non profit organisations would prefer methods which have mass appeal and are cheaper. Then the drafting of message is important. It should contain all information. “The donor should be provided with a detail of the way the money was used”. Even loyalty programs must be in place. There should be a feedback process which will help to improve performance. Retaining and getting new donor should be the objective. The technology used should also be decided. Like using electronic media helps to create a better appeal and eyes nearly all the segment. “The use of technology will depend on the target customer”. Using emails would be beneficial as it is cheap and is widely used. This thus, shows that online marketing will hold its place. Still other ways like tele calling will be good as it will help to understand what the customer feels and will help to clarify the doubts at that place. Using the Life Time Value method will help to know the potential the current donors have for them in the future. It will also help to find out that whether the segment and group targeted was correct. It will thus help the non profit organisation to achieve its goal. Conclusion Direct marketing will be very beneficial for non profit organisation. With the penetration of technology being high it will give maximum leverage. Here, the most important for non profit groups would be to build a rapport. “They need to use the medium to get new donors”. The process they will use will be as follows The above step will help to build new donor. Since, non profit organisation works on the funds they receive from donors so they are more cost conscious. Following this approach will help them. They need to come with new loyalty programmes. Even highlighting the donors and showing them how important they are will help the non profit organisation to get funds in the future. Non profit organisation also needs to put in their effort towards using its workforce well. “They should penetrate at far off places and try to cover as much area as possible”. Also they should have a god feedback. It is important that the donors are realised for the amount they donate. This all will help them to regain some lost ground. Highlighting their efforts towards the goodwill will act as a push and help get new donors. Recommendations The important things for non profit organisation is to get new donors at the same time retain the present one. As the cost involved in both is high so it needs to be taken care of. Since, donors are the ones who donate and non profit organisation work on the funds provided by them so keeping them is important. To get new clients non profit organisation needs to target the correct segment. Here they need to target the youngsters. The age group should also be decided so that they are better able to concentrate. The medium used should be mails as it is cheap. It can be sent to large groups. They should revert back to those people by calling them only when a certain people show interest. They should revert back to them only. They should send mail regularly keeping abreast of what is going on. The mail should be drafted in such a way that it gains maximum attention. This will encourage people to be part of this. Using the different medium to test the efficiency as the Life Time Value Method will help. This process will help to get new clients. To retain the old customer and see that they donate towards the well being different programmes should be designed. People who donate should be given respect and their names should be there on the website. “It will make them part of the organisation”. Also sending regular updates about the new programmes launched will help. Also communicating the way in which the funds were used will help to win confidence. A feedback from the customer will also help to develop and perform the task well. Reference Kotler P, Adam S, Brown L & Armstrong G, 2003, Principles of Marketing, 2nd Edition, Prentice Hall Read More