The world of nonprofit in the U.S. is large, with over 1.5 million qualifying as 501(c)3. If you are working in this group, you know this is a different market than the typical business market, but there are also many similarities. You also should know that identifying the similarities and differences is the first step in successfully marketing to your audience.
Similarities in marketing to nonprofit audiences:
- Target audience: Nonprofits and businesses both have target audiences, and identifying your target audience is necessary to market your products, services, or causes. This could involve market research, analyzing demographics, and maybe even creating representations of your target customers (also called a buyer persona).
- Branding: Building a strong brand and writing your mission or message is essential for both nonprofits and businesses. You need to communicate your value and establish a connection with your audience to have support, no matter what kind of support you need.
- Communication channels: Nonprofit marketing and for-profit marketing both use communication channels to reach target audiences. This includes traditional methods like print media, television and radio, as well as digital platforms such as websites, social media, email marketing and content marketing. You need to have someone creating and implementing your marketing on an ongoing basis. This may be an employee, or you could hire a business who focuses on these kinds of communication.
Differences in marketing to nonprofit and business audiences:
- Objectives: The objective of marketing for nonprofits and businesses are typically different. Businesses focus on generating profit, but nonprofits raise awareness, advocate for a cause and support their mission.
- Value: Nonprofits need to emphasize their social impact and the benefits they bring to their target audience. Their value is centered around the positive change they create, rather than their product or service features.
- Funding strategies: Nonprofits rely on various funding sources, including donations, grants, sponsorships and fundraising events. Their marketing efforts may involve promoting these fundraising initiatives and communicating the impact of donations. Businesses primarily focus on revenue generation through sales and gaining customers.
- Measurements of success: Nonprofits often measure success through increased awareness, volunteer engagement, donor retention rates and the impact achieved in their target communities. Businesses focus on revenue, profit margins and customer acquisition/retention.
- Emotional connection: Nonprofits rely on creating an emotional connection. The nonprofit’s purpose aligns with the values and beliefs of supporters. Using storytelling and other techniques shares the mission; this includes impactful stories of individuals or communities being helped or helping others, and it creates a deeper connection.
How does a nonprofit benefit from hiring a marketing business?
- Saving money: Hiring a full-time employee can cost much more than hiring a marketing business. This will depend on your situation and need, but it is worth comparing the numbers to make a decision.
- Flexibility and scalability: Nonprofits often experience ups and downs in marketing needs, such as during special events or campaigns. Hiring an outside marketing business provides the flexibility to scale up or down quickly based on specific project requirements or budget constraints.
- Expertise and specialized skills: Those in the marketing field often have a diverse range of skills and expertise, or access to these. By hiring a marketing business, nonprofits can access professionals with specialized knowledge in areas such as digital marketing, social media management, content creation, graphic design, or SEO. This allows the nonprofit to tap into skills they need for specific campaigns or projects without the need for extensive in-house training or hiring.
- Fresh perspectives and creativity: Marketing businesses typically work with multiple clients across different industries, which exposes them to various challenges and opportunities. This exposure brings fresh perspectives and creativity to the table, allowing nonprofits to benefit from innovative marketing strategies and ideas they may not have considered.
- Time efficiency: Nonprofit organizations often have limited staff and resources, making nonprofit marketing difficult. Hiring a marketing business can help alleviate the burden of marketing tasks, allowing the nonprofit’s internal team to focus on their core activities and mission-related work. This can lead to increased productivity and efficiency.
- Access to a network: Those in the marketing industry often have their own networks of professionals, including designers, copywriters, photographers, and web developers. By hiring a freelance marketing business, nonprofits can gain access to this network, which can be beneficial for future projects.
There are many similarities and difference between nonprofit marketing for-profit marketing, and it is worth taking the time to consider what your similarities and differences are. Understanding these differences is crucial for developing effective marketing strategies. If you have more questions or are in need of marketing assistance, feel free to reach out to Exploring Creative, LLC, and we will be happy to help you find your answers or complete your project.