Managing Marketing

Student membership number: 10425158

I confirm that in forwarding this assignment for marking, I understand and have applied the CIM policies relating to word count, plagiarism and collusion for all tasks. This assignment is the result of my own independent work /investigation except where otherwise stated. Other sources are acknowledged in the body of the text and/or a bibliography is appended. The work that I have submitted has not previously been accepted in substance for any other award. I further confirm that I have not shared my work with other candidates.

1 |P a g e

Managing Marketing

Student membership number: 10425158

Student membership number: 10425158 Place of study: West Kent College Course title: Professional Diploma in Marketing Subject: Managing Marketing Assignment title: Option 1 - Introduction of Performance Measurement Standards 6534 words (excluding Executive Summary)

2 |P a g e

Managing Marketing

Student membership number: 10425158

RECCOMMENDATION REPORT

INTRODUCTION OF PERFORMANMCE MEASUREMENT STANDARDS

Prepared by: Fundraising and Marketing Manager

June 02, 2011

3 |P a g e

Managing Marketing

Student membership number: 10425158

Contents:
Executive Summary 1. Current Performance Measurement Standards 2. Alternative Standards 2.1. Quality Models 2.1.1. ISO 9001 2.1.2. European Foundation for QualityManagement (EFQM) Excellence Model 2.1.3. Practical Quality Assurance System for Small Organisations ( PQASSO) 2.2. Marketing Performance Measures 2.2.1. Balanced Scorecard 2.2.2. Benchmarking 3. Proposed standards 3.1. Marketing Performance Measures 3.1.1. Benchmarking 3.2. Competitive advantage 4. Changes required to the Fundraising and Marketing Team 4.1. Barriers 4.2. Proposed changes 5. The Role of the Marketing Manager 6. Budgets 7. Cost/Benefit Analysis Bibliography Appendix 1Tables and Graphs Appendix 2 The Heart of Kent Hospice Brief Background Appendix 3Existing Marketing Function Structure page 5 page 7 page 7 page 7 page 7 page 8 page 9 page 10 page 11 page 11 page 12 page 12 page 13 page 13 page 14 page 14 page 15 page 17 page 19 page 20 page 22 page 23 page 28 page 31

4 |P a g e

Managing Marketing

Student membership number: 10425158

Executive Summary (510 words)

This recommendation report seeks to assess exiting quality framework and performance measures at the Hospice with a view of introducing alternative standards along with a wide range of marketing performance measures in response to tighter regulation and greater scrutiny from funders and commissioners, as well as increasing competition for voluntary funding. The report identifies that existing Clinical Governance framework is not equipped to measuring performance across key areas of business. Although there are some attempts to measure marketing performance, these are rudimentary and dont play part in strategic evaluation and planning. It then goes further into exploring alternative approaches to quality and provides an overview of ISO 9001, EFQM and PQASSO models, outlining their benefits and limitations.The use of alternative marketing performance measures most appropriate for the Hospice are also considered along with other measurement techniques, such as Balanced Scorecard and benchmarking. It further recommends complementingtheframework with PQASSO and ISO 9001 standardsby introducing them concurrently with an aim of achieving a recognisable accreditation with both stakeholders and regulators. Marketing performance measures should include e a good balance of accounting, productivity, relationship, internal and innovation and learning measures. However, any measures and subsequent metrics introduced will need to be aligned with the Hospices overall mission, strategic aims and objectives. It is suggested that the implementation of the proposed standards starts with an initial self-assessment against all key areas. This will require collaborative approach from all members of the Fundraising and Marketing Team as well as input from other functional areas of the organisation. To overcome existing barriers, it is recommended to introduce the following changes to the team:
y y y y y y y y

Clarification of the teams purpose and priorities More resource for community fundraising Clearer definition of roles Reassessing current systems Internal marketing More integrated working Smarter working Fundraising and Marketing road shows

The existing structure of the team is augmented by adding 1FTE and 0.5 FTE to ensure successful implementation of the project. Fundamental to the delivery of the project is also the development of the team and the professional development of all individuals.Team learning and development needs analysis has been undertaken and the results are outlined in the report. The report further identified the role of the Marketing and Fundraising Manager as a lead responsibility for the implementation process. To achieve this, the manager will have to reconsider his management style from authoritarian to team-based decision making. Marketing Manager personal development plan is also outlined in the report. Overall it is estimated that the delivery of the plan will cost 21,718 over the two year period. Cost /benefit analysis undertaken suggests that the project will pay for itself in the second yearby increasing the level of voluntary, corporate and trusts donations by a total of 12/% on forecasted annual income totalling to 11,892, which after taking away the costs will leave a surplus of 4,992. Social benefits will also include raising the

5 |P a g e

Managing Marketing

Student membership number: 10425158

profile of the Hospice amongst palliative care professionals, improved staff motivation, reduced absenteeism and increased volunteer hours.

6 |P a g e

Managing Marketing

Student membership number: 10425158

1. Current Performance Measurement Standards

In an economic environment where funding sources are strained, the Heart of Kent Hospice is facing ever tighter regulation and greater scrutiny, with funders and commissioners and donors increasingly seeking for greater transparency and accountability. To satisfy its regulators requirements and to monitor the performance effectively,the Hospice adopted a hybrid approach to its quality assurance by combining clinical performance measures endorsed by the National Care Standards Commissionwith those based on cost accounting information. As such, a recently implementedClinical Governance framework,aimed to improve patient experience, clinical effectiveness and patient safety, is complemented by a range of accountingmeasures.Clinical Governance framework mainlyfocuses on clinical productivity and patients satisfaction KPIs, such as admission statistics and complaints register, with monthly results summarised in Clinical KPIs Chart (an example of which is shown in Appendix 1, p.24). Accounting measures are used to report on charitys financial viability and income generated by its fundraising activities; and include surplus and deficit accounts, balance sheet, cash flow and budgetary control. Cash flow, being imperative for the financial health of the charity, is particularly useful as it provides an insight into cash inflow fluctuations in areas most difficult to project such as legacies, in-memoriam donations or trusts funding. Budgetary controls, on another hand, allow to exercise control over financial resources available through monitoring and variance analysis. Monthly management budgets show expenditure levels against plan and enable timely decision-making and planning adjustment should the variance be of some significance. Other measures employed across the organisation are relatively unsophisticated and used in isolation from existing quality framework.Fundraising and marketing performance,in particular, is only measuredagainst its financial metrics, focusing purely on levels of income generated by pre-determined fundraising categories, whether they are events, corporate fundraising, legacies, in-memoriam donations or community fundraising.There are some attempts to measure the effectiveness of marketing communication by using metrics such as website hits, column inches, direct marketing response levels, HTML bulletins open rates, but these are rudimentary and dont play part in strategic evaluation and planning.

2. Alternative Standards
Increasing numbers of not-for profit organisations are demonstrating their quality to the outside world by working with comprehensive quality standards and introducing marketing performance measures initially developed for the commercial sector.

2.1. Quality Models

Three of the most well-known and well-used quality models by non-profits in the UK are ISO 9001, EFQM and PQASSO which are discussed in term below (for a detailed comparison between the models see Table 2, Appendix 1).

2.1.1. ISO 9001

ISO 9001 is part of the International Organisation of Standardisation family of standards for quality management, which has over a million certified organisations worldwide. All requirements of ISO 9001 are generic and can be applied to any organisation, regardless of itstype, size and product or service provided.In the UK it is mainly used in the privatesector, but is also being increasingly used within the voluntary sector. ISO9001 focuses on the processes within an organisation and makes sure that they are effectively managed in order to meet customer needs. There are five main clauses in ISO 9001:
y
7 |P a g e

Quality management system

Each of the clauses has a number of detailed requirements that have to be met According to Sherratt (2009), the benefit of adopting the standard is that it helps organisations define key roles and responsibilities in quality management In addition, once an organisation has been accredited with ISO 9001, it will be able to provide evidence to its stakeholders that its quality management processes meet recognised international standards. ISO 9001 was designed for, and is only used for external certification. The downside ofISO 9001 when applied to a voluntary organisation is that it lacks the addressing of such areas as good governance, outcomes and charity related finance issues, which are essential for the effective governance and management of any charity. In addition, the implementation of ISO 9001 places high demand on staff time as the standard itself is of high complexity.
5 56

2.1.2. European Foundation for QualityManagement (EFQM) E cellence Model

EFQM Excellence Model is a self-assessment framework which enables organisations to develop sustainable excellenceacross all of its activities. While its origins lie in the private sector, it is designed for any organisation in any sector, although examples of use by third sector organisations are fairly limited. The model starts with the following premise: customer results, people results and society results are achieved through leadership driving policy and strategy, people, partnerships and resources leading ultimately to excellence in key performance results, as illustrated in Figure 1. There are nine criteria in the model that underpin this premise.These are further separated into five enablers leadership, people, partnerships, resources and processes which are concerned with how the organisation conducts itself, how it manages its staff and resources, how it plans its strategy and how it reviews and monitors key processes; and five results - people results, customer results, society results and key performance results which are what the organisation achieves.Each of the nine criteria is further divided to describe in more detail the concept of Excellence in that area and to examine how well an organisation is doing through a list of practical questions. EFQM runs the annual EFQM Excellence Award, which is designed to recognise organisations that have achieved an outstanding level of sustainable excellence (British Quality Foundation, 2011).

Fi 1: EFQM Model (Source: proveandi prove.org, available at http://www.bqf.org.uk/ex_framework.htm, accessed in May 2011)

The benefits of the model are that it is non-prescriptive and provides a broad set of assumptions of what is required for a good organisation and its management. In addition, it seeks to encourage a culture of continuous improvement and provides a clear overview of an organisations activities. However, the model doesnt offer formal mark or accreditation meaning it is less recognised byorganisations stakeholders.

8|

y y y y

M t responsi ilit Resource management Service planning and provision Measurement anal sis and improvement
2 ') 0) ( & ' &



ti

      

$#"!

Managing Marketing

Student membership number: 10425158

2.1.3. Practical Quality Assurance System for Small Organisations (PQASSO)

First introduced in 1997 by Charities Evaluation Services (CES), PQASSO was specifically designed for the third sector and can be applied to any type of voluntary organisation. PQASSO is built on 12 quality areas:
y y y y y y y y y y y y

Planning Governance Leadership and management User-centred service Managing people Learning and development Managing money Managing resources Communications and promotion Working with others Monitoring and evaluation Results

In each quality area, the standard itself is clearly defined and applies to all organisations.The model offers a staged approach to implementing quality through three levels of achievement, starting from self-assessment at level 1 and progressing onto an optional Quality Mark endorsed by the Charity Commission at levels 2 and 3 (CES, 2011). Designed as a workpack, it offers a flexible approach allowing the organisation to work at its own pace(CES, 2011). Each quality area includes the standard itself, benefits of working on the standard, as well as the elements of what the standard covers.Each standard also has a list of indicators that broadly show what the organisation should be doing to meet its desired level. Opposite each indicator, PQASSO sets out suggestions for sources of evidence that the indicator is met(CES, 2011). PQASSOs strength is that it gives a shared meaning of quality across quite disparate activities and can complement the use of other quality systems already in place, as it takes a holistic approach and considers all aspects of the organisation.Other benefits of using PQASSO include:
y y y y

Better communication and motivation among staff across the organisation Greater involvement of all customer groups and improved opportunities for providing customer feedback Continuous improvement over time following a plan-do -review cycle (as illustrated in Figure 2) Greater recognition and credibility from statutory trusts and corporate funders as well as service commissioners.

Although low in cost and complexity, PQASSO standards are not as widely recognised as ISO 9001 or EFQM.

9 |P a g e

Managing Marketing

Student membership number: 10425158

review

Review action

Evidence based selfassessments

plan

Implement agreed action

Collect information

Develop action plans

do
Figure 2: PQASSO Implementation Cycle (Source: adapted from Charity Evaluation Services)

2.2. Marketing Performance Measures

Historically, accounting and productivity were used as the earliest measures for marketing performance. However, as the discipline developed other non-financial measures, such as relationship marketing and customer related measures, internal, and innovation and learning measures, were identified. When adapted for use in nonprofits, these may include the following metrics as illustrated in Table 1:
7

Accounting

Productivity

Relationship Marketing/ ustomer Related

Overall donor satisfaction with the charitys activities

Internal Measures
Number of new donors recruited per period Donor acquisition costs

Innovation and Learning

Staff turnover

Frequency of donations

Growth in event ticket sales

Income per donor

Number of leads generated following trade exhibition Press coverage

Donors feelings of loyalty and/or commitment to the charity

Average number of days taken as sick leave

Number of training/development days, by department

% of marketing costs as proportion of total cost Income stream and campaign specific budget monitoring Penetration of specific segments of the donor market

% preferred donation method

Donor lifetime value

Public awareness of the charity and its services

Donor perceptions of effectiveness

Donor retention rate

Investment per number of staff

Recognition of the charity as a brand

Number of Facebook fans/Twitter followers

Staff satisfaction

10 | P a g e

Managing Marketing

Student membership number: 10425158

Share of the donor market within the charitys sector Marketing spend per donor

Number of first time donors converted into regular Number of contributions to an online survey

Table 1: Marketing Performance Measures

However, resource considerations might affect the degree to which a charity applies marketing metrics.

2.2.1. Balanced Scorecard

First developed by Kaplan and Norton in 1996, the Balanced Scorecard is a strategic planning and performance measuringtool which aligns business activities to the vision and strategy of the organisation, improve internal and external communications, and monitor organisation performance against strategic goals (Balance Scorecard Institute, 2011).Itrecognises the limitations of purely financial measurement of an organisation and introduces the concept of a balanced view by introducing three additional dimensions; customer, internal business and innovation and learning, as illustrated in Figure 3.

Figure 3: The Balance Scorecard (Source: Balanced Scorecard Institute, available at: http://www.balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/tabid/55/Default.aspx, accessed in May, 2011)

One or two UK hospices are already experimenting with the Balanced Scorecard technique, presenting their Boards with a simple one-page summary of a range of performance measures in four key areas of hospice activity (Help the Hospices, 2007).

2.2.2. Benchmarking
Benchmarkingis another useful way of measuring organisational processes and practices against those in other organisations. Although first developed in the private sector, benchmarking is now widely used in the third sector with over 62% of UK charities regularly engaging in benchmarking initiatives (CES, 2010).The benefits of benchmarking are that it can help to determinepriorities for performance improvement and to set meaningful and realistic targets. It would also help to provide reassurance for what is already working well.However, it
11 | P a g e

Managing Marketing

Student membership number: 10425158

might prove difficult to find a close match to the organisation under review. It is therefore best to take part in benchmarking at a sub-sectoral level, but even then consideration should be given to the size, vision, and strategic priorities of another organisation. As demonstrated above, many different approaches to quality management are available to the non-profit sector today, it is important however to ensure that the model chosen most closely meets the needs of the Hospice and does not require too heavy an investment of already scarce resources.

3. Proposed standards
Although quite comprehensive in its own right and fit for the purpose of reporting on clinical performance,the Clinical Governance frameworkcurrently in place is not equipped for embracing marketing related or indeed other areas performance measures under its remit. However, with no adequate measurement of marketing performance in place,the effectiveness of marketing activities is significantly diminished and is likely to affect future voluntary funding levels and ultimately the quality of service provided. To address this, we recommendcomplementing the framework with PQASSO and ISO 9001standards which will be introduced concurrently to ensure all areas of the charitys activities are covered with an aim of achieving a recognisable accreditation with both stakeholders and regulators and, in the longer term , improving the quality of the Hospices services.Both standards have been used extensively within the third sector and will complement each other in that ISO 9001 is extremely rigorous in its approach to quality and offers a widely recognised accreditation, whereas PQASSO is sector specific andcoversareas such asgood governance, outcomes and charity related finance issues, which are essential for the effective governance and management of the Hospice. At the same time evidence collectedand generated in meeting clinical governance standards will form a sound basis for rolling out both models. Both models are of relatively low cost, but will require high level of support from the senior management team and a fair amount of staff time.

3.1. Marketing Performance Measures

By introducing ISO9001 and PQASSO, the Hospice will ensure to have a robust processfor measuring performance in all areas of the charity; that is not excluding marketing.Most quality areas within the proposed standards will require measures related to marketing performance. These should include a good balance of accounting, productivity, relationship, internal and innovation and learning measures. However,any measures and subsequent metrics introduced will need to be aligned with the Hospices overall mission, strategic aims and objectives and corresponding marketing objectives(these are detailed in Appendix 1, p. 24).We would recommend to introduce the following quantitative and qualitative metric under each category as summaries in Table 2 below:
Type of Measure
y y

Suggested metrics:
market share the donor market within the hospices sector % of marketing costs as proportion of total cost % penetration of specific segments of the donor market marketing spend per donor Income stream and campaign specific budget monitoring % preferred donation method value of event sales Number of leads generated at Kent County Show and 20/20 Volume of coverage in the media % public awareness of the charity brand and its services % overall donor satisfaction with the charitys activities
y y y y y y y y y y y

Metrics Selection Rationale/Benefit

Provides clear indication of position in comparison to other competitors and sector averages, opportunity to adjust target Comparison with sector averages , opportunity to adjust target Growth or saturation future strategy decisions Expenditure planning Fundraising area/campaign/event effectiveness future strategy decisions Future strategy decision online donations, Direct Debit Future planning Star vs problem child High costs and demand on staff time can it be justified Comparison with other Hospices 250,000 footprint, yet not known how many are aware of the Hospice justifying the need to awareness and visibility Opportunity to improve, regular feedback

Accounting

y y y y y y y y

Productivity

Relationship

12 | P a g e

Managing Marketing

Student membership number: 10425158

Marketing and Customer Related

y y y y y y y y y y y

Internal

Innovation and Learning

Number of Facebook fans/Twitter followers Number of first time donors converted into regular Website hits and number of responses to an online survey Donor perceptions of effectiveness Number of new donors recruited per period Donor acquisition costs Donor retention rate Staff turnover Average number of days taken as sick leave Staff satisfaction surveyagainst target Number of training/development days, by department

y y y y y y y y

Comparison with that of other Hospices how can increase Strategy adjustment what work and what doesnt Future website improvements Feedback mechanism feeling better involved Trends, seasonality better recruitment activities planning Retention vs recruitment Justifies expenditure on relationship marketing activities Currently internal marketing virtually non -existent, poor communication will justify the need for internal marketing and enhanced communication Opportunity to improve Medical teams vs administrative should be seen as equally important to generate greater returns

y y

Table 2: Suggested Marketing Performance Measures

Use of the above measures will bring many advantages. As such, the suggestedaccounting measures will provide a clearer overview of where the charitys revenue comes from, indicating value of individual income streams. Ongoing and effective accounting measurement would allow to better control of resources, providing opportunity to adjust planning and future strategic decisions (Sherratt, 2009).

Productivity measures, on another hand, would identify the most and least productive fundraising areas and publics perceptual or behavioural responses to the Hospice brand within its catchment areaallowing for future decision making. Relationship and customer related measures are an absolute keyin ensuring donors satisfaction with the charitys activities and levels of accountability. This is something the Hospice has largely overlooked before. However, satisfied donors are more likely to act as ambassadors in promoting the Hospice in the local community, potentially leading to increasing donation levels, volunteer hours or corporate sponsorship. Donor profiling will help enormously in avoiding mass marketing activities in the future and better targeting for specific events/campaigns. Internal measures will report on the effectiveness of donor acquisition activities and evaluate donor retention levels providing sound basis for choosing between retention or recruitment strategies.
Finally, innovation and learning measures will address the issue of internal marketing and establish if there is need for improved internal communication.

3.1.1. Benchmarking
Benchmarking with other hospices of similar size should also be integrated into the ongoing process of measuring marketing performance. This will not only provide an extra dimension to performance results, but would also expand networking opportunities and help to identify partners for any future collaborative work. The Hospice should therefore adopt a more proactive approach to participating in benchmarking initiatives across the sector. These are often initiated by Help the Hospices or other fellow hospices across the country.

3.2. Competitive advantage

By having a robust quality management system in place with sound performance measures across all key areas and a well recognised accreditation, the Hospice will be able to provide sound evidence of its accountability to funders, regulators, donors and users alike. Above all, by regularly evaluating its marketing performance and subsequently applying better segmentation techniques, the Hospice will also be able to adopt a more differentiated approach to targeting, ultimately leading to greater responsiveness, and further strengthening the Hospices competitive advantage of being the only adult Hospice in the area.
13 | P a g e

Managing Marketing

Student membership number: 10425158

. Changes required to the Fundraising and Marketing Team

We suggest that the implementation of the proposed standards starts with an initial self-assessment against all key areas, which will provide the senior management team with an overview of the improvements needed in each area.This will require not only collaborative approach from all members of the Fundraising and Marketing Team, but also continuous support from the Senior Management Team, as well as input from other functional areas of the organisation. To achieve this, a number of changes to the way that the Fundraising and Marketing Team works and how they integrate with other functions will need to be instituted. These will address all the interrelated elements embodied McKinseys 7-S model illustrated in Figure 4.

Figure: 4 McKinsey Seven S Framework Source: easyfreeware available at http://www.easyfreeware.com/mckinsey_7s_model_software-31759-image.html, accessed in May 2011

4.1. Barriers
To define the changes, we first undertookanalysis of potential barriers, which are likely to affect successful implementation of the proposed standards. These are:

Goal problems -Team overall goals are poorly specified and therefore difficult to measure. Most team members are unclear about their individual objectives and overall expectations of the team. Although some team members have developed individual tactical plans, there is no overall operational plan for the department. Lack of resources - The team is currently under resourced with Events Co-ordinator also fulfilling Community Fundraiser role. This creates conflicting priorities, with both income streams suffering as a result. Role problems - There is some confusion in roles, with a certain amount of overlapping between jobs which causes further role conflict and duplication of work. Constraining systems - There is a talented team, who are constrained more by systems in place then they are by ability. The current management accounting systems and reporting mechanisms are very weak and do not provide information in a required format.Those staff using Raisers Edge dont have enough knowledge to utilise the system to its full capacity, resulting in inaccurate reporting. Resistance to change - There are some staff and volunteers who are suspicious of change.

1 |P a g e

Managing Marketing

Student membership number: 10425158

Working in silos - While efforts have been made to improve this there is still sense amongst the team that they are working in silos and not working collaboratively as a team. This is exacerbated by the office space which is series of small offices, with some staff working outside the fundraising office entirely. Team working too hard - This may seem an odd barrier to highlight, but it is clear that all the fundraising team are working very hard, but not always as productively as they could. The lack of administrative support for fundraisers means that they are doing too much of the administrative work themselves leaving them with little time to concentrate on their prime objectives. Lack of support from other functions The Hospice has functional hierarchal structure which although ensures central strategic control, discourages inter-functional interaction, with little communication and integration between teams.Although some staff in other parts of the Hospice recognise the good work that the Fundraisers do, others see Marketing and Fundraising as a resource drain.As a result, the team does not receive all the support it needs form other functions.

4.2. Proposed changes

To overcome the above barriers and therefore ensure successful implementation of the proposed standards within the marketing function, it would be necessary to introduce the following changes to the team:
y

Clarification of the teams purpose and priorities - All team members need to be made aware of what these are and what individual contribution they make in achieving these. Departmental operational plan in line with strategic priorities also needs developing. More resource for community fundraising -The post needs to be advertised as soon as possible (in conjunction with HR). This will bring the team back to its original capacity and make the workload more manageable without any compromises being made between event and community fundraising areas. Clearer definition of roles- Job descriptions in some areas need to be revisited and brought up-to-date ensuring there is no duplication. HR Manger will also need to be involved. Reassessing current systems - Managementaccounting systems need to revisitedin conjunction with Finance Team to ensure these provide meaningful information and in a format suitable for future decision making. Those staff using Raisers Edge need to have adequate training to bring them up-to speed in using the system effectively. Reporting and monitoring mechanisms need to be re-assessed to provide for accurate performance measurement in line with performance measures suggested earlier. Internal marketing -Reasons for change need to be clearly communicated to all staff emphasising that these are essential to the future stability ofthe Hospice. Ongoing feedback on progress is essential along with motivation, two-way communication and getting staff involved. It is important to identify supporters, neutrals, and opposers (Jobber, 2001, cited in Sheratt et al, 2009) and target them appropriately. Consider using influential supporters as ambassadors for change. Any fears/concerns should be taken seriously and addressed in a timely manner. More integrated working - With clearer definition in roles it should be easier to encourage joint working. Open plan offices would further improve co-operation. Specific investment in team-building and joint planning could help to improve this. It is also recommended that serious consideration is given to knocking down all the internal walls in the Fundraising and Marketing building and making it open plan. This would create much more pleasant working environment and would encourage joint working. Smarter working - The current administrative function needs to be redefined to ensurethat all team members receive the administrative support that they need. It is not envisaged that this means a great increase in admin staff. Rather it means that existing resources need to be deployed more effectively. Adding an internship position to the team structure would also take some of the pressure away.

15 | P a g e

Managing Marketing

Student membership number: 10425158

Fundraising and Marketing road shows - these will help to communicate the role Marketing and Fundraising Team play in delivering overall strategy to other staff in other functions. This will open a dialogue between teams and instigate open and honest discussion leading to better collaboration between functions.

We do not envisage a massive increase in fundraising and marketing staff to deliver the above changes. The existing structure is enlarged by adding 1FTE Community Fundraiser and 0.5 FTE Intern to ensure successful implementation of the project, as illustrated in Figure below:

Fundraising and Marketing Director (1 FTE) Team Administrator (1FTE) Marketing and Communications Manager (1FTE)

Intern (0.5 FTE)

Corporate Fundraiser (0.5 FTE)

Events Co-ordinator (1 FTE)

Trusts and Donor Development Officer (1 FTE)

Database Co-ordinator (0.5 FTE)

Community Fundraiser (1 FTE)

Figure 4: Fundraising and Marketing Team proposed structure

Fundamental to the delivery of this project is the development of the team and its individual members. As previously discussed, the team members arelackingsome of the skills necessary for fulfilling their roles successfully. This is not because they lack abilities, but rather support and training. The introduction of an overarching quality system and alternative performance measures will increase this gap even further. To address this, team learning and development needs analysis has been undertaken with results outlined in Table 3 below:
Role Corporate Fundraiser Critical skill/knowledge required for the role: Raisers Edge Budget monitoring Planning and reviewing IT skills - Microsoft Excel and Power Point PQASSO and ISO 9001 Raisers Edge Budget Monitoring Planning and prioritising Events management Social Media Net working What are the development needs: Tracking and managing information about constituents and gifts; using Batch for reporting Variance analysis, flexing budgets , forecasting Flowcharts; estimating resources, GANTT ChartsUsing charts and formulas, creating professional power point presentations Overview Staged approach Tracking and managing information about constituents and gifts; using Batch for reporting Variance analysis, flexing budgets, forecasting Planning resources and time, prioritising workload Budgeting; forecasting expenditure; managing health and safety; event risk assessment , evaluation Using fan pages, twit deck, hash tags, retwits Being more proactive and confident at industry events/ Town Centre management meeting/other networking opportunities Method/Solution: In-house with Database Coordinator In-house with Finance In-house - delivered by Pitman In-house- delivered by Pitman In-house with Marketing Manager In-house with Database Coordinator In-house with Finance 1 day course - Pitman centre 2-day course with Kent Trainers In-house with Catch 22 On the job supported by line manager

Events Co-ordinator

16 | P a g e

Managing Marketing

Student membership number: 10425158

Overview Staged approach Team Administrator PQASSO and ISO 9001 Raisers Edge Budget Monitoring Event Genius ( as part of CMS training) Managing volunteers Data entry and events records in Events module Variance analysis, flexing budgets, forecasting Adding events onto the website and online payment gateway, uploading images/files using CMS Supporting and supervising volunteers

In-house with Marketing Manager In-house with Database Coordinator In-house with Finance In-house delivered by Impact In-house with Volunteer Services Development Officer and HR Manager 1/2 day course - Pitman centre In-house with Marketing Manager 2 day course with Blackboard 3 days at Richards House Hospice

Database Co-ordinator

Assertiveness skills PQASSO and ISO 9001 Raisers Edge Advanced

Delegating and managing workload Overview Staged approach Data entry in The Raisers Edge Events module, event records, registering participants for events, and recording registration fees, producing pre formatted reports, preparing labels and donor acknowledgement letters Overview Staged approach Tracking and managing information about constituents and gifts; using Batch for reporting Variance analysis, flexing budgets, forecasting Planning resources and time, prioritising workload Overview Staged approach Tracking and managing information about constituents and gifts; using Batch for reporting Overview Staged approach * Further skills gap and development needs will be
identified once the post is recruited for

Trusts and Donor Development Officer Community Coordinator*

PQASSO and ISO 9001 Raisers Edge Budget Monitoring Planning and prioritising PQASSO and ISO 9001 Raisers Edge PQASSO and ISO 9001

In-house with Marketing Manager In-house with Database Coordinator In-house with Finance 1 day course - Pitman centre In-house with Marketing Manager In-house with Database Coordinator In-house with Marketing Manager

Table 3: Fundraising and Marketing Team Development Needs Overview

By taking on board the proposed changes and having appropriate training and development, the team will be able to unfreeze the present level (Lewin, 1958 cited in Sheratt, 2009) of working and move on to a new level of working better as a team not only within the Fundraising and Marketing function boundaries, but within a broader team of colleagues from across the Hospice. Some of the training outlined will require for other functions across the organisation to share their knowledge and expertise with the Team. This should be seen as beneficial, as once again it would start the dialogue between the teams and help to establish collaborative relationship, something that has been largely overlooked to-date. However, this will have an implication on other teams team time and resources and will have to be carefully considered. Once the necessary training is provided, it will be necessary to review individual plans by conducting one-to-one interviews to ensure that the development needs have been met. It might be also beneficial to obtain a 360 degree feedback for all team members from their peers, volunteers, and colleagues in other departments they work most with. It does, however, needs to be anonymous and made clear that feedback will be used for identifying further personal and professional needs.

5. The Role of the Marketing Manager

To roll-out the implementation of the proposed measurement standards across the organisation, it will be necessary to set up a small working group. To ensure a full range of perspectives, the group should include staff, Board members, senior managers, volunteers, and users (if appropriate and willing). It is also important to bring in staff at different levels of the organisation, working in different functions, to generate a flow of ideas and enable a good blend of contributions. It is proposed that the Marketing Manager will take lead responsibilities for the implementation process by leading the working group and keeping the quality process on track. The responsibilities should include:
y

ensuring that quality working group meetings take place

17 | P a g e

Managing Marketing

Student membership number: 10425158

y y y y

chairing the working group meetings managing the implementation of the overall plan ensuring that the working groups progress is communicated to the rest of the organisation acting as a progress chaser, ensuring that action points are taken forward.

It is important that the Manager has a good understanding of how both PQASSO and ISO 9001 work. The necessary training on both systems needs to be provided at pre-implementation stage, following by an ongoing mentoring and consultancy support. It is important, however, that their role is not seen as the sole person responsible for all work relating to quality standards implementationthatis carried out within the organisation, as this would become burdensome andineffective. Apart from leading the implementation working group, the role of the Marketing Manager will equally involve implementing the standards within the Fundraising and Marketing Team. To achieve this, the Manager needs to demonstrate leadership; however the management style adopted will affect how this is received by the team. The current management style is that of a more authoritarian nature(Tannenbaum and Schmidt, 1973, cited in Sheratt et al, 2009). It is recognised that the style needs to be amended to team-based decision making to encourage open communication and trust within the team. The acknowledgment of team and individual contributions will help to make the team feel more involved and valued and will keep them motivated. Sustaining the changes to managerial behaviour, as well as promoting involvement and team work are essential for the success of the project. The introduction of the new standards and subsequently new processes and systems will no doubt be seen not only as big change, but also as a challenge.Purely focusing on getting the job done may be detrimental to other team members and affect how the team works. At the same time, pushing others to achieve difficult targets is well known to have a de-motivating effect on all. The Managers role will therefore also be to find the rightbalance between Task, Team and Individual goal, as illustrated byAction-Centred Leadershipmodeldevelopedby Adair (see Figure 5):

Figure 5: Adairs Action-Centred Leadership model (Source: Weybridge Associates, available at http://waybridge.com/tag/adair-model, accessed in May 2011)

Such balance can be achieved by carrying out appropriate planning, controlling, supporting, informing and evaluating functions throughout the implementation process.As such, it is expected that the Marketing Manager will perform the following functions in ensuring successful implementation of the standards:

y y

The reasons for introducing the standards will need to be clearly explained to the team, ensuring that individual members accept these and understand their individual contributions to the overall task Detailed action plans will need to be developed for the team and individuals, defining accountability, priorities, time frame, and targets. These will need to be monitored on monthly basis to ensure targets

18 | P a g e

Managing Marketing

Student membership number: 10425158

y y

are met. Any issues identified need to be addressed promptly, with necessary training/coaching provided as necessary. Feedback from all team members to be obtained as to whether the plan is working. Necessary adjustment need to be made at this stage. Team and individual efforts and progress achieved need to be recognised (internal marketing) and rewarded. At the same time, those individuals who cause concern need to be supported with their needs clearly identified and additional training /coaching provided, if necessary. To keep morale levels high and ensure team are motivated, personal example must be set at all times by the Manager. Once the actual implementation is completed it is important to review the process and learn the setback. Measuring performance does not end at the end of the implementation stage, but rather becomes an ongoing process.

To ensure that the above functions are carried out to their best, the Marketing Manager recognises the need for personal development and appropriate training prior to implementation. An outline of the personal development plan is provided below:
Actions: PQASSO Resources: PQASSO workshops, training, mentoring Timeframe: In stages to allow to become familiar with one aspect of the system before being trained on another Complete within 1 month Complete within 3 months Within 1 month Training be completed within 3 -5 months, seminars etc ongoing Complete within 6 months

ISO 9001 Budget Monitoring Change management Leadership management styles Implementing quality third sector Valuing, Supporting and Motivating others

ISO 9001 training, onsite consultancy, mentoring, online workshops/webinars In-house Finance Team/Training Training, attending topical seminars/conferences (with HR manager) Training, attending topical seminars/conferences (with HR manager) Join an online discussion group and Help the Hospices networking group, visiting other Hospices/charities in the area Training, attending topical seminars/conferences (with HR manager)

Ongoing

Within 6 months and ongoing

Theproposed changes are based on the assumption that the Hospice will adopt a market or customer oriented approach as its main strategic direction for the future. Failure to adopt such approach will lead to the Hospice continuing to provide excellent care to its beneficiaries, but not paying enough attention to its donors. This has already had a negative impact on the amount of voluntary income generated and should be addressed promptly, if the Hospice is to maintain its competitive position. It is critical that the proposal receives the buy in of the senior management team and the Chief Executive Officer to ensure that it is rolled out across the organisation and with support of other departments, such as Finance, IT, Family Services Team and Patient Services Department. Without such buy in and involvement of other relevant staff the delivery of this plan will be jeopardised. It is recommended that the Marketing Manger presents the plan to the Senior Management Team at the next Heads of Departments meeting to ensure is agreeable by all and if not amend the plan accordingly. We strongly believe that the implementation and achievement of PQASSO, ISO 9011 and above proposed performance measures will enable the Hospice not only meet the requirements of the Charity Commission, its funders and commissioners; but also to operate effectively and efficiently ensuring its future sustainability.

6. Budgets
Detailed budget for the introduction of the performance measurement standards within the marketing function for the period of the Year 1, and Year 2 is outlined below. This includes pre-implementation, implementation and post-implementation stages. Overall it is estimated that the delivery of the plan will cost21,718 over the
19 | P a g e

Managing Marketing

Student membership number: 10425158

two year period. Further costs may incur at post implementation stage. These will need to be reviewed at the end of Year 1. Staff cost are not included into the budget, but will of course need to be considered along with any variance to the expenditure throughout the implementation process.

PERFORMANCE MEASURES IMPLEMENTATION BUDGET - 2 YEAR VIEW Year 1 Year 2 Pre-Implementation Costs Q1 Q2 Q3 Q4 Q1 Q2 Q3 PQASSO PQASSO work pack and CD98 98 ROM Staff training 1,359 453 453 453 Consultancy fees 1,350 450 450 450 Internal seminars 150 50 50 50 ISO 9001 User guides 85 85 Staff Training 2,679 893 893 893 Consultancy fees 3,000 1,000 1,000 1,000 Internal seminars 150 50 50 50 Meetings 300 100 100 100 Development needs: 1,350 450 450 450 Staff training Team away day 500 500 Pre-Implementation totals: 11,021 4,129 3,446 3,446 0 0 0 0 Implementation Costs Q1 Q2 Q3 Q4 Q1 Q2 Q3 PQASSO Staff training 1,359 453 453 453 Consultancy contract with CES 800 800 800 2,400 Internal seminars 50 50 50 150 ISO 9001 Staff Training 1,338 446 446 446 Consultancy fees 3,500 1,000 1,000 1,500 Internal seminars 150 50 50 50 Meetings 300 100 100 100 Development needs: 900 300 300 300 Staff training 0 0 3,199 3,199 3,699 0 Implementation totals: 10,097 0 Post-Implementation Costs Q1 Q2 Q3 Q4 Q1 Q2 Q3 Post implementation review 600 600 Post implementation totals: 600 600 TOTAL for the project: 21,718

Q4

0 Q4

0 Q4

7. Cost/Benefit Analysis
To assess the merit of implementing the new quality standards, cost/benefit analysis has been conducted, as per below:

20 | P a g e

Managing Marketing

Student membership number: 10425158

Year by Year figures over 2 years Costs Pre-implementation stage User guides Staff training Consultancy fees Internal seminars/meetings Team away day Implementation stage Staff training Consultancy fees Internal seminars/meetings Totals per yr Benefits 5% increase on trust funding on expected annual income 1% increase legacies on expected annual income 5% increase on corporate sponsorship on expected annual income Reductions in mailout costs as a result of improved targeted marketing 1% Increase in regular donations Totals per yr Balance 3,837 4,200 1,075 2,480 2,480 300 2,480 -11,740 11,892 4,994 Year1 183 5,388 4,350 600 500 1,199 1,800 200 14,220 2,398 4,100 400 6,898 Year 2

It is clear that in financial terms only the project will pay for itself in the second year by increasing the level of voluntary, corporate and trusts donations by a total of 12/% on forecasted annual income totalling to 11,892, which after taking away the costs will leave a surplus of 4,992., with payback time being 2years. In addition, intangible benefits have to be taken into account as well. These will includewidening palliative care training provision for other health care providers in the local community, which although cannot be measure in financial terms, will raise the profile of the Hospice amongst palliative care professionals leading to increased commissioning opportunities. Other benefits will include improved staff motivation levels, reduced absenteeism and increased volunteer hours. Ongoing costs in post implementation will need to taken into consideration, these are however envisaged to be minimal, as once all the internal processes are in place these should naturally become part of the restructured teams workload.

21 | P a g e

Managing Marketing

Student membership number: 10425158

Bibliography
1. Balanced Scorecard Institute, http://www.balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/tabid/55/Default.aspx 2. British Quality Foundation, (2011) http://www.bqf.org.uk/performance-improvement/about-efqmexcellence-model 3. Charity Evaluation Services (2011) PQASSO and ISO 900. www.ces-vol.org.uk/pqasso. 4. Charity Evaluation Services (2011) PQASSO Strengthening third sector organisations for a better society. www.ces-vol.org.uk/pqasso. 5. Charity Evaluation Services (2011) PQASSO First steps in quality. www.ces-vol.org.uk/pqasso. 6. Gamble, A. (2008) Benchmarking in the third sector. Charity Evaluation Services, www.cesvol.org.uk/pqasso.

7. Help the Hospices, (2007) Ensuring an effective board, http://www.helpthehospices.org.uk/ourservices/publications

8. Proveandimprove.org, http://www.bqf.org.uk/ex_framework.htm 9. Sherratt, A. et al (2009) Managing Marketing. Oxford, Butterworth-Heinemann. 10. Weybridge Associates, http://waybridge.com/tag/adair-model 11. http://www.easyfreeware.com/mckinsey_7s_model_software-31759-image.html 12. http://www.bqf.org.uk/ex_framework.htm

22 | P a g e

Managing Marketing

Student membership number: 10425158

APPENDIX 1 Tables and Graphs

23 | P a g e

Managing Marketing

Student membership number: 10425158

The Heart of Kent Hospice KEY PERFORMANCE INDICATOR CHART

Month: April 2011 Comments Admissions
Bed occupancy No of referrals received in month No of discharges from service No of day therapy places 244 = 81% (246 = 79% March) 50 (50 March) 16 (9 March) 210 (180 March) Bed availability (based on 10 beds) No of bereavement contacts No of Drop-in clinic admissions No of day therapy attendances 300 (310 March) Not available 40 total (33 March) 94 (44.7%) (44.4% March) No of positive comments 1 No of negative comments 0 % addressed Target 100%

Annual Reports Patient Satisfaction Survey

% of patients satisfied most, or all of the time Currently being undertaken. Target: 90%

Staff Annual Performance Review

Annualised % of staff having received review 92% Target: 90% Target: 96% 99% - April audit identified no infection control issues.

Infection Control Audit

Green/Amber/Red

Complaints Register Non-Clinical

0 Green v 1-2 Amber 2 Red Targets no reds

Complaints Register - Clinical

0 Green 1-2 Amber 2 Red Target no reds v

24 | P a g e

Managing Marketing

Student membership number: 10425158

Quality models comparison

PQASSO
Experience of use in the sector Suitability for size and type of organisation Areas covered High All voluntary and community organisations All areas

ISO 9001
Medium/high All All, but focuses on quality management system High 85 High Publications Training Consultancy

EFQM
Low All All

Demand on staff time Cost to buy a copy of standards Complexity Support/training available

Medium 98 Low Workbook and CD-ROM for doing it yourself Local network of mentors Bespoke mentoring Training Consultancy support throughout implementation Free half-day workshop prior to implementation Two-day implementation course - 453 per person Yes

Medium 150 Medium How to use the Excellence Model - 15 The model in practice - 28 Consultancy support Reports Endorsed Adviser Network Free first consultation Comprehensive one-day workshops for members 125 + VAT and nonmembers 250 + VAT No

Cost of face-to-face support/training

1 day introductory cost 310 to 670 2-5 day onsite course

Availability of external accreditation

Yes

Table 2: Choosing between different approaches to quality

The Heart of Kent Hospice Mission Statement The Hospice has the following mission statement:
The Heart of Kent Hospice is a specialist team offering skilled care, comfort, compassion and hope to people facing the challenge of life-threatening illness. The Hospice will do this by: 1. Providing high quality specialist palliative care that is innovative and responsive to the needs of our patients, their families and their careers, irrespective of diagnosis. 2. Disseminating the principles and practice of palliative care to the wider community. 3. Engaging with the local community so that they understand what we offer and actively support us.

Corporate Objectives:
Objective Strategies adopted to deliver objectives 1. To satisfy 100% of customers by continuing to 1. By widening access to services with - increase in non cancer patients develop its services, keeping pace with changing - increase support for patients in care homes needs 2. By enhancing community service to support patient

25 | P a g e

Managing Marketing

Student membership number: 10425158

2. To increase income by 40% by the end of the three year period to continue to develop the services

1. To excel at key processes to ensure the way they do things enable them to deliver their mission

1. To have appropriate culture and skills to ensure these exist to achieve objectives 1 to 3.

and family choice at the end of life 3. By broadening the depth and range of outpatient services to meet patient and family support needs. 1. By maximising business opportunities that are available to the hospice in order to secure finances 2. By developing business plan for Fundraising and Marketing embracing all income streams with a significant focus on Regular Donor and Major Donor campaigns 3. By developing legacy campaign 1. By implementing the marketing plan and capitalising on the opportunities that digital media such as the website can bring. 2. By maximising the efficiencies that can be gained by appropriate use of information, communication and technology 3. By developing general awareness of End of Life Care to enable patients and carers to plan ahead appropriately and support the hospice in the work that is does 1. By developing innovative ways to encourage volunteer recruitment and retention so that the organisation is furnished with the right number and quality of volunteers, and continues to build on the strong volunteering culture that exists within Hospice care. 2. By ensuring that the Hospice has an organisational culture that embraces change, respects others and manages risk appropriately. 3. By ensuring that the organisations educational strategy meets the needs of staff, volunteers and trustees.

Marketing Objectives:
Marketing 1. To increase voluntary income by 30% by the end of the three year period
y

y y

2. To increase number of younger volunteers hours donated to the Hospice by 20% a year

y y

3. To raise awareness about the Hospice within targeted stakeholder groups (beneficiaries, the general public, donors, trustees, staff, suppliers, volunteers,
26 | P a g e

y y

Marketing Strategies By a combination of market penetration, product development and market development strategies, specifically by expanding the fundraising product range by introducing at least two high profile events per year and developing new products for existing donors markets By increasing the number of regular supporters to 500 by the end of the three year period generating 70k By developing legacy income through a planned and coordinated legacy campaign By targeting local secondary schools and collegesfor practical volunteering opportunities By engaging with younger audiences through social media means promoting Hospice's work and volunteering opportunities By targeting local community groups and businesses to adopt the Heart of Kent Hospice as charity of the year in 2011 By increasing press coverage by 20% on 2010/11

Managing Marketing

Student membership number: 10425158

funders) to ensure it becomes the charity they choose to support

y y y

By developing and implementing a robust internal communications strategy By increasing website traffic by 25% in the three year period By better communicating what the Hospice stands for and what it does, ensuring all communications (including corporate publications, the website, signage, correspondence and promotional material) are consistent and reflect the spirit of the Hospice.

27 | P a g e

Managing Marketing

Student membership number: 10425158

APPENDIX 2 The Heart of Kent Hospice Brief Background

The Heart of Kent Hospice

28 | P a g e

Managing Marketing

Student membership number: 10425158

Overview
The Heart of Kent Hospice opened in May 1991 as a result of the commitment and dedication of a group of volunteers, who set up the 'Wishing Well Appeal' in order to raise funds and build a hospice for local people. It is situated in the grounds of Preston Hall near Aylesford and covers Maidstone and the surrounding areas. The Hospice is a registered charity which provides specialist palliative care services to people facing the challenge of terminal illness. All services are provided free of charge. The Hospice is regulated by the Healthcare Commission and is also registered as an independent hospital specialising in palliative care. The Hospice employs around 80 full and part-time staff and relies on the support of over 500 active volunteers, who work both in the Hospice and in the community. The Hospice aims to support and complement the care provided by other statutory and non statutory organisations to patients and their families living in the Maidstone area. At any one time the Hospice supports up to 350 patients, plus their families and carers, by providing community service, inpatient beds for up to 12 patients and up to 45 day therapy places each week. The Hospice also has two wholly owned subsidiary companies, Heart of Kent HospiceTrading Limited ("Trading") and Heart of Kent Hospice Promotions Limited ("Promotions")."Trading" operates 12 shops selling donated goods, cards and other merchandise. "Promotions" runs a lottery scheme. Both companies gift aid their taxable profits to the Hospice. In addition, the Hospice has a programme of education offering a range of courses, designed to provide and promote knowledge, skills and confidence to professionals in clinical, non-clinical and voluntary roles within healthcare and other key service areas in order to spread best practice across the community.Besides its existing clinical courses it now offers high-quality training in a number of statutory and mandatory subjects, generating additional income for the Hospice. Annual running costs are over 3.6m. Of this around 29% comes from statutory sources, with further 71% being raised through a number of fundraising activities in the local community. The Hospices footprint is some 250,000 people, and while fundraising underperformed in the past, the arrival of a new Chief Executive and Director of Fundraising has seen significant income growth with the Hospice achieving a small surplus in the last two consecutive years, that is compared to a deficit of 300,000 in 2006/2007. To the end of March 2010, Hospices trading subsidiary and legacies and trusts achieved good results with an increase of 19% and 30% compared to previous year, respectively. Lottery saw a healthy increase of 9%. Fundraising and donations income, however, fell by 2% and 8% respectively. At the same times costs rose by 5.7% over previous year.

Current Services Range 1. Palliative Care Services Patients accepted for care have flexible access to the following services according to need and subject to availability: y Inpatient Care - Inpatient Unit consists of eight single en-suite bedrooms and one four bedded bay and can provide in-patient care for up to 12 people at any one time with a team of doctors and nurses to provide symptom control, support, respite and terminal care. There is no set length of time for an admission with length of stay being dependent upon meeting the assessed needs on an individual basis. y Community Care - Community Team provides high quality specialist palliative care for patients with a progressive terminal illness who are being cared for at home, and offer support to their family, carers and friends. y Day Therapy - has up to 15 places each day meeting a variety of needs with access tophysiotherapy, occupational therapies as well as counselling and spiritual support. It also provides patients with an opportunity to meet others facing life-threatening illness. y Pre and Post Bereavement Support is offered to the patients and/or their carers. y Complementary Therapies - are used alongside medical treatments for patients, and are offered to families and carers to aid relaxation and promote a sense of well-being. Therapies offered include: aromatherapy, body massage, reflexology, hand and foot massage and Bowen technique. y Counselling, Social work and Chaplaincy support - are provided by the Family Services Team. These include psychological, social and spiritual care to patients and their families and can help people talk

29 | P a g e

Managing Marketing

Student membership number: 10425158

through their problems in a safe and confidential way.

Customer Base
The Hospices customer base consists of two broad groups, specifically beneficiaries and supporters. In summary, the Hospice concentrates its efforts on meeting the needs of its beneficiaries with programme of care, being tailored to their individual needs, but doesnt recognise supporters as an equally significant group of customers. 1. Beneficiaries group includes: patients of 16 years of age and over with any advancing, progressive, life limiting illness in need of specialist care; patients family members and /or carers of any age, and bereaved of any age. All beneficiary groups have access to care regardless of their race, religion, sex, or nationality. To benefit from the range of services provided beneficiaries need to reside within the Hospices catchment area. Each patient undergoes an initial pre-assessment, where programme of care, tailored to their individual needs is agreed. 2. Supporters group includes: individual and corporate donors, voluntary workers, and purchase The rs. Hospice has over 9,500 individual and corporate donors registered, who have given a donation to the Hospice in the last three years, but only 238 of these are regular donors. Although no demographic profiling or buying behaviour available for the majority of supporters, it is, however, known that corporate donors and bereaved families form the strongest supporter groups; generating 20.4% and 18.3% of the total voluntary income respectively. It is also estimated that over 50% of all donors would be involved in at least five or more fundraising activities. Average donation accounts to 50 per donor. The Hospice had three major donors donating to the Hospice in the last four years.There over 500 active volunteers, 70% of which are aged 60 and over. No purchasers data was made available to the researcher as the trading subsidiary has a separate strategic plan to that of the Hospice.

Position in the Market in Relation to Competitors

Although there are currently three other independent adult hospices in Kent, the Hospice is in no direct competition for patients with any other of them, or indeed any other care providers, due to demand far exceeding supply. The charity does however compete for statutory and voluntary income, volunteers time, as well as charitable grants with not only other hospices in the area, but also with over 30 other local charities, as well as many national and international voluntary organisations. In relation to its main voluntary income competitors in the local area, namely Kent Air Ambulance Trust and Demelza House Childrens Hospice, the Hospice appears to be the most successful in its fundraising activities. To put this into perspective, in 2009 the Hospice raised 1.15m from its catchment area, estimated at 250,000 people. In the same year, Demelza raised over 4,99m of voluntary income from a combined population of Kent, East Sussex, Surrey and South London estimated at some 3 million twelve times the footprint of the Hospice. Kent Air Ambulance similarly raised just over 3m from the whole of Kent, East and West Sussex and Surrey, estimated at 3.6 million people fourteen times the footprint of the Hospice. It is however recognised that both of the above have recently become more aggressive with their fundraising in the Maidstone area posing a threat to the Hospice. Further pressure comes from an alleged growth of compassion fatigue (Balabanis, et al, 1997) with public having too many charitable demands on their budgets. A series of world-wide disasters, e.g. Haiti earthquake, Pakistan and India floods, West Africa food crisis, also siphons away some of the revenue. Finally, it can be argued that the Hospice also competes for funds with high street retailers where donors are most likely to spend their disposable income on non-essentials for themselves, as opposed to donating to the charity.

30 | P a g e

Managing Marketing

Student membership number: 10425158

APPENDIX 3 Existing Marketing Function Structure

31 | P a g e

Managing Marketing

Student membership number: 10425158

Marketing Function Overview

The Hospice has no dedicated marketing department at present and its marketing function is combined with that of fundraising. The Fundraising and Marketing Department employs three full time and two part time staff, who report to Fundraising and Marketing Manager. As shown on Diagram 1 below, the team consists of Corporate Fundraiser, Events Co-ordinator, Trusts and Donor Development Officer, Database Co-ordinator, Marketing and Communications Manager and Team Administrator.

The scope of the service

The marketing function is devolved across the Team with the Fundraising and Marketing Manager, who also manages the team, providing marketing and communications advice and support to other departments and the Hospices two subsidiaries. The post is responsible for developing annual marketing operational plan, setting budgets, managing all marketing and communications activities, including PR, advertising, publications, direct marketing and social media campaigns, as well as website development and maintenance. PR and design are outsourced to an external agency. Some activities are devolved to other team members, including booking advertising, copywriting, budget monitoring, and direct mail campaigns. In addition, the post is reliant on a pool of freelancers, who provide a variety of services including copywriting, HTML design and web development. The post also relies on a few regular volunteers as well as adhoc interns to help with press cuttings, industry/competitor research, and facebook/twitter updates. The Team Administrator also provides support with coordinating large mailings, proofreading, website updates and budget monitoring. Specific projects are often assigned to marketing interns; these would normally include specific market research projects or events analysis. Diagram 1 provides the Fundraising and Marketing Department structure. In addition to the Fundraising and Marketing Team, some marketing activities are devolved to other departments within the organization, although fall under the general banner of marketing. As such, Volunteer Services Development Officer, who is generally responsible for volunteer recruitment and retention, produces quarterly newsletter targeted at existing 500 Hospice volunteers. On another hand, trading produce their own signage, design posters and organise events in Hospice shops.

Fundraising and Marketing Director (1 FTE) - Vacant Marketing and Communications Manager (1FTE) Team Administrator (1FTE)

Corporate Fundraiser (0.5 FTE)

Events Co-ordinator (1 FTE)

Trusts and Donor Development Officer (1 FTE)

Database Co-ordinator (0.5 FTE)

Diagram 1: Fundraising and Marketing Department Structure

32 | P a g e