The customer market domain: Managing relationships with buyers 147
The statements of income and expenditure account in Tables 2.6.4 and
2.6.5a and 2.6.5b illustrate the performance achieved from 1992 to 1996.
The surplus appears to fluctuate wildly from year to year but this reflects
the nature of some of their sources of income and the projects on which it
is spent. As a non-profit making organization the RSPB has to divide its
focus not only on income attraction but also on allocation of those funds.
Purchase of conservation areas may be more successful in some years than
others. In 1992 the Society was unable to complete on a number of trans-
actions and had a large surplus of funds whilst in 1993 they committed
themselves in excess of income. Legacies can also vary considerably and it
is impossible to have any notice over when and how much individuals will
leave to the Society.
However, an increase in income has recently come from a new division,
RSPB Sales Ltd, which was formed in 1993 in order to widen commercial
activities. Under this banner it is allowed to profit from sales that are not
normally allowed under its charitable status. By covenanting RSPB Sales
Ltd’s operating profit to the Society, it is able to recover the related income
tax. Income from this division in 1994 stood at £963 000 and is expected to
increase steadily over time.
This is a welcome addition, but it was apparent to Young that the exist-
ing marketing strategy would have to be altered if sufficient income was to
be generated to fund the impetus for growth. She set a target expenditure
of £38.2 million and a target of 1.2 million members by the year 2000 in
order to meet the planned ‘ends objectives’.
Marketing in the RSPB – ‘Towards 2000’
In Young’s first meetings with Frances Hurst, the Marketing Director, and
Karen Rothwell, Strategic Coordinator, much effort was focused on devel-
oping a marketing strategy that would concentrate upon increasing both
membership levels and donations. It was also recognized that a high per-
centage of RSPB income came from the membership product: the Society
needed to avoid over-reliance on this source and develop new areas of
fund-raising. A confidential document ‘Towards 2000’ was produced. It
laid down a strategy in which the role of the marketing department was
seen as paramount, some key aspects of which follow. Its overall mission
was to generate income which would be consistent with the policy aims of
the Society:
●to uphold the values within the ‘Future Directions’ document
●to operate within best charity fund-raising practice