Certified Fund Raising Executive (CFRE) Practice Test

What is the first step in creating an effective marketing plan for a nonprofit organization?

1. Establishing a target audience

2. Conducting a marketing audit

3. Setting measurable marketing goals

4. Designing promotional materials

The correct answer is: Conducting a marketing audit

The first step in creating an effective marketing plan for a nonprofit organization is conducting a marketing audit. This step involves reviewing the current marketing efforts, assessing the organization's strengths and weaknesses, analyzing market conditions, and understanding the competitive landscape. A comprehensive marketing audit provides insights into what strategies have worked previously, what didn’t, and why. It forms the foundation on which the marketing plan can be built. By conducting a marketing audit, organizations can gather valuable data about their positioning, branding, and outreach effectiveness. This understanding enables the organization to make informed decisions when establishing a target audience, setting measurable marketing goals, and designing promotional materials. Essentially, the audit serves to align the marketing strategy with the organization's mission and objectives, ensuring that subsequent steps are relevant and focused on the unique context of the nonprofit. On the other hand, while establishing a target audience, setting measurable marketing goals, and designing promotional materials are all crucial components of a successful marketing plan, they should follow the comprehensive understanding gained from a marketing audit. Without this initial assessment, organizations may risk targeting the wrong audience or creating ineffective goals and materials.