Nonprofit Marketing:

Just How Far Has It Come?

How market-savvy are nonprofits? A recent study makes some stunning discoveries.
BY DON AKCHIN

M
ost nonprofit
managers agree
that marketing One must wonder just what the respondents
has become
essential for non-
meant by “marketing.”
profits that want
to compete for dollars in a market-
place culture. A recent study, howev- Attitudes Toward average respondent checked seven
er, reveals some alarming news. The Marketing items. The most often cited were
study suggests that few nonprofits fundraising (80%), event planning
Respondents were asked to rate (79%), public relations strategy (74%),
have incorporated a comprehensive
how essential were fundraising, pub- media relations (72%), marketing
approach to marketing. While many
lic relations, marketing, and volun- strategy (70%), and publications
nonprofits perform one or more mar-
teers to the success of their organiza- (69%). More than half also indicated
keting functions, few have embraced
tion. Marketing ranked highly, an responsibility for direct mail (57%),
a marketing approach to operations.
average of 4.37 on a five-point scale, advertising (57%), and database man-
A brief questionnaire was mailed
though not as high as public relations agement (51%). But when respon-
to “marketing, public relations, or
(4.62) or fundraising (4.53). The larg- dents were asked to rank these
communications” officers of organi-
er the budget, the higher the rating responsibilities in priority order, a
zations belonging to the Maryland
for marketing: Those with budgets of solid 53% chose fundraising as their
Association of Nonprofit Organi-
$1 million or more gave an average top priority. Marketing strategy was
zations. The survey drew 90 replies, a
30% response rate. The respondents rating of 4.51, while those with small- the top choice of 10%, media rela-
represented a full spectrum of non- er budgets rated it 4.14. tions and event planning the first pri-
profit organizations serving needs in In light of responses to other ority of 9%, with publications and
social services (48%), health (17%), questions, however, one must won- public relations strategy each named
education (16%), arts and culture der just what the respondents meant by 8%.
(9%), public affairs and policy (7%), by “marketing.” The picture that emerges is of
January • February 2001

and civil and human rights (3%). people in charge of many marketing
Masters of tasks, but whose marketing responsi-
Sixty-one percent of the respondents
worked for organizations with budg-
Multi-Tasking bilities are secondary to other priori-
ets of more than $1 million. The ques- The survey offered respondents a ties. It’s a picture of organizations
tionnaire was supplemented by in- choice of 14 job functions, all either that have added marketing tasks, but
depth interviews with six marketing directly or indirectly related to mar- envision marketing in narrow terms.
officers for colleges and universities keting, and asked them to check In-depth interviews with market-
throughout the nation. which were their responsibility. The ing directors in higher education con-

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 Table 1. Self-Assessment on Marketing Skills
Numbers are mean scores on a scale of 1 to 5, with 5 indicating complete agreement.

SKILL KNOW IT WELL WISH TO LEARN NEED TO LEARN

Writing press releases 3.78 3.24 2.98
Handling media 3.03 3.83 3.63
Managing databases 2.96 3.37 3.45
Producing publications 3.55 3.48 3.20
Running telemarketing campaigns 2.05 1.90 2.20
Conducting focus groups 2.56 2.73 2.44
Conducting surveys 2.70 2.38 2.30
Managing a Web site 2.13 3.61 3.61
Developing marketing plans 3.09 3.38 3.32
Developing communications plans 3.18 3.62 3.50
Running direct mail campaigns 3.16 2.97 2.63
Creating advertising 2.80 3.22 2.86
Conducting program evaluations 3.03 3.45 3.22
Writing grant proposals 3.49 3.60 3.32

firmed this impression. “I still have a What the college and university 2. Design your product or
hard time convincing people that pro- marketing directors mean by the service (considering factors such as
gram development and strategy are term “marketing” is more than a col- hours, locations, pricing, customer
legitimate marketing roles,” said the lection of independent functions service, and quality) to meet the
marketing director for a community such as advertising or publications. needs or desires of the market, as
college. “People see marketing as Rather, they see these tasks as pieces determined by the research.
synonymous with promotion. We get of a comprehensive approach. That
called at the back end to publicize approach, boiled down to its essence, 3. Promote your product or
something that may not have been is to find out what people want and service through advertising, publicity,
well conceived to begin with. I keep then see that they get it. While hardly publications, or special events (high-
insisting there needs to be more mar- revolutionary, it is vastly different lighting the benefits that research
keting effort on the front end.” from a more common approach of tells you are key to the market).
The marketing director for a businesses and nonprofits, which is 4. Evaluate the success of the
Nonprofit World, Vol. 19, No. 1

prestigious university’s law school to sell people what you have, regard- promotion, learn how the market
said he’s had some support for mar- less of (or in spite of) what they need responds to the product now, and
keting’s involvement in packaging or want or prefer. determine whether to redesign some
new courses, but “as for research, Translated into action, an organi- more.
everyone is okay with the idea, zation adopting a marketing approach
but there’s never enough money to is driven by a four-step process: What They Know—And
do any.”
1. Do research to learn what
Want To Know
At another law school, the direc-
tor of advertising and publications the market wants, what it needs, and One way to gauge the acceptance
says that “the ‘M’ word [marketing] is what it thinks of you and your com- of a marketing approach is to assess
never used.” petition. the skills of the individuals charged
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with marketing functions. The ques- In-depth interviews with market- have adopted a comprehensive mar-
tionnaire asked respondents to rate ing directors in higher education keting approach to their operations.
themselves according to 14 skills, yielded a similar impression. “Come A majority of those performing mar-
indicating how well they knew those to think of it, I never had a marketing keting now came into their jobs with-
skills, whether they wanted to learn course in college,” said the marketing out formal training in marketing; they
more, and whether they needed to director for a state university. rate their knowledge high on some
learn more. (See Table 1.) A marketing director at another marketing skills, low on others, but
The respondents rated them- school was hired to produce publica- they demonstrate little interest in
selves highest on their ability to write tions, recognized a need to do adver- learning what they don’t yet know in
press releases, produce publications, tising, and had it added to his such critical areas as research and
and write grant proposals. On other responsibilities. direct marketing. While low salary
skills important in marketing, such as “I was a newspaper reporter,” structures are a problem in attracting
running telemarketing campaigns, said the marketing director for a law top talent, the larger problem may be
conducting direct mail campaigns, school. “I was hired by a college and nonprofit leaders who don’t appreci-
conducting focus groups, conducting liked the environment. I picked up ate marketing as a comprehensive
surveys, and managing Web sites, marketing working for a business process and aren’t fully committed to
respondents rated their skills lower. school.” incorporating the marketing ap-
What was most striking, however, is Higher education marketers did proach into their operating strategies.
that in each of these areas in which include individuals who came to the Marketing is a successful part of
they rated their skills low—with the nonprofit world with experience in the for-profit world. It can prove
exception of managing Web sites— corporate marketing. “I took a pay highly effective for nonprofits, too,
they indicated only a low interest in cut to work in higher education that are willing to give it a fair test. ■
learning more. because it looked like an interesting
Selected References
Because research plays such a new challenge,” said a university
Amherst H. Wilder Foundation, Marketing
marketing director whose experi-
crucial role in the total marketing Workbook for Nonprofit Organizations.
ence included a dozen years with Brinckerhoff, Peter C., “Using Surveys and
process, the lack of interest in learn-
advertising agencies. The marketing Focus Groups to Gather Market Data,”
ing more about focus groups and Nonprofit World, May-June 1995.
director for a private college left a
conducting surveys is puzzling and Dickson, John P. & Sarah S. Dickson, “How
frenzied corporate existence in to Plan a Marketing Research Project,”
suggests that those performing the
hopes of a higher quality of life—also Nonprofit World, four-part series, November-
marketing functions don’t see mar- at a pay cut. December 1994 through May-June 1995.
keting as a larger, comprehensive The issue of salary differentials Lauer, Larry D., “How to Use a Total
endeavor. One explanation may be in also explains the preponderance of Marketing Approach to Renew Your
the educational backgrounds of the Organization and Make an Impact,” Nonprofit
“accidental marketers” in nonprofits. World, May-June 1995.
respondents. In the survey, nearly two-thirds of Muehrcke, Jill, ed., Marketing, Leadership
the respondents had a salary ranging Series.
The Accidental from $30,000 to $50,000. About 17% Skloot, Edward, “Market Research: Useful
Marketers earned less than $30,000 (including
Tips, Key Questions,” Nonprofit World,
March-April 1988.
Based on the survey results, it part-timers and volunteers), and 19%
appears that few people performing earned more than $50,000. These publications are available through
At these salary levels, nonprofits the Society for Nonprofit Organizations’
marketing tasks in nonprofits Resource Center, 608-274-9777, Ext. 221,
received formal training in market- can’t compete with corporations for www.danenet.org/snpo.
ing. Only 22% had a bachelor’s or bright business school graduates or
master’s degree in business. Another marketing superstars. “Accidental
15% had degrees in communications marketers”—or the rare corporate Don Akchin is communications program
January • February 2001

or media. The remainder found their dropout looking for a challenge or a director of the Enterprise Foundation,
way into their current jobs from a lifestyle change—are the only mar- which works with partners and almost
keters nonprofits can attract. 1,500 nonprofit organizations to provide
varied assortment of educational low-income people with affordable housing,
backgrounds, from social work and safer streets, and access to jobs and child
law to English and fine arts. This sup-
Conclusions care. He may be reached at 6017 Bellona
ports an impression that marketing in While a number of nonprofits are Avenue, Baltimore, Maryland 21212.
nonprofits is performed, by and large, adding marketing functions and the Nonprofit World • Volume 19, Number 1 January/February 2001
by “accidental marketers” who learn personnel to manage them, research Published by the Society for Nonprofit Organizations
6314 Odana Road, Suite 1, Madison, WI 53719 • (608) 274-9777
it by doing it. strongly suggests that few nonprofits www.danenet.org/snpo

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