Why Organization's Fail

Organization failure begins at the top. Rotary did not stop growing because people were not interested in joining local Rotary clubs. The number of people joining Rotary clubs proves that. It stopped growing because its leaders assumed it was in the business of supplying humanitarian services rather than in the business of creating Rotarians; they were product oriented instead of member oriented.

Red Text Note

==============Red text has a link to a previous Rotatorial or referenced document.==============

Friday, March 13, 2015

108 - Marketing Rotary for Non-Professionals - Market Segmentation Existing Member Segment

In this series, Rotary refers to the enterprise of Rotary International and The Rotary Foundation.
Please review Marketing Rotary for Non-Professionals 107 and this Marketing Rotary Schematic.

Rotary and its member clubs have two market segments from which to sustain membership - existing members and potential members.  Similarities exist, but each segment must be treated differently.  Two issues of prime importance in doing so is recognizing that:
1.  Rotary membership is a niche market; it is not for everyone.
2.  Both segments are motivated by personal desires.

   For marketing purposes, each primary segment must be separated into four secondary segments - Behavioral, Demographic, Psychographic, and Geographic
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   To improve retention rates, it is vital that Rotary and its member clubs understand that existing Rotarians, particularly those who have been members for three or more years, are loyal Rotarians.  Loyalty is a Behavioral characteristic and is gained, not because of what Rotary or clubs do, but because of the satisfaction Rotarians receive by being members of local clubs.  Data indicates that Rotary and its member clubs have between one and three years for new Rotarians to evolve into loyal Rotarians.  Issues like the time Rotary takes and how being a Rotarian affects their family, business, and/or personal activities are important.  The recognition, prestige, honors, and other benefits accorded them, particularly in their local settings, helps them justify to themselves and others the reasons for their loyalty.
  Demographic segmentation addresses members' age, race, religion, gender, political affiliation, family size, ethnicity, income, and education, all of which closely tie to members' wants and needs.  When clubs center on members' wants and needs, it is easier to retain them.  It is a serious marketing breach to believe that each demographic has the same Psychographic profile.  They don't.  Demographic differences often affect members' Behavior.
   Psychographic segmentation addresses members' personality traits, values, attitudes, interests, and lifestyles.  This is perhaps the most difficult of all segments for Rotary to address. Rotarians (and clubs) participate in activities and attributes according to their interests and attitudes.  Conflicts frequently arise within clubs because members have different specific interests, attitudes, traits, and understandings but almost always want to improve their lives in general.
   Geographic segmentation addresses land masses and transportation distances.  Geographic issues are of minimal importance in retaining Rotarians, but are quite important in creating new Rotarians.

The characteristics of each secondary segment continually interact to some degree in all Rotarians.  Rotary and its member clubs should tailor their attributes and activities to deliver value satisfactory to all Rotarians regardless of their years in Rotary.  And the only accurate measure of whether or not clubs are effective at doing so is their ability to retain and create loyal members!

109 - Marketing Rotary for Non-Professionals - Market Segmentation

Potential Member Segment