Non-Profit Marketing (NPM) What Is It and Why It Matters

 

“Marketing “Mark eting for f or Non-Profit Organizations Organizations”  ” 

  on-Profit Marketing ( PM): What Wh at is it and and why it matters? By Dr. Muhammad Nouman

 

NPM: Myths and Realities? • While Non-Profits may address important social problems, the sector is not a major component of a society’ society’ss overall output • Most Non-Profits are organization-centred rather than customercentred • Non-Profits play a more important role r ole in developed countries but are not influential in the developing countries • Non-Profits need to focus more on their customer rather than the t he donor • With a few eceptions, non-profits are mostly small, local enterprises specializing in narrow domains • !he management challenges thatorNon-Profits face are relatively mundane compared to business for-profit organization organizations s

 

NPM: Myths and Realities? • Non-Profits are mostly run by "do-gooders# and "social-reformers#  who have a limited limited interest in efficient efficient management management of their organization • Non-Profits are overburdened by negative perceptions of the public regarding their $real’ role in the society • Wor%ing for Non-Profits is a poor career move for those t hose individuals individuals  who want to ma%e "big money# and ecel ecel professionally professionally • &usinesses &usinesses need to have only a to%en involvemen involvementt in the t he non-profit  world in order order to maintain good public public relations relations or to produce shortshortterm mar%eting gains

 

Understanding NPM • Non-Product Marketing involves the marketing mark eting of a product p roduct or service in which the oer itself is not intended to mak make e monetary benet for the marketer • It takes takes the notion of satisfaction and value-laden relationships to a dierent level by focusing not just on the customer but donor needs also

 

Defning Non-Proft Marketing

ctivities and strategies employed by a nonprot organi!ation organi!ation that are designed to spread the message me ssage of the organi!ation" as well as to solicit donations and call for volunteers# Nonprot marketing involves the creation of logos" slogans and copy" as well as the development of a media campaign to e$pose the organi!ation to an outside audience#  A nonproft organization can approach marketing in the same way as a or-proft business. It should identiy its target market (the one it wants to reach), deelop marketing materials to send to that target market, and determine the ob!ecties that a marketing campaign should meet. In this sense, the nonproft organization ollows the our "#s o marketing$ product, place, price and  promotion. %ource& www w ww#investopedia#com #investopedia#com

 

Why Study NPM? Why is Marketing applied as a discipline inside firms?

Non-Profit Organization Organizations s Donor

Clients Sta 

Volunteers Others

Interactions Non-Proft Sector

Corporate Sector Public Sector

 

The Marketing Mix or an NPO

Class an!out or Discussion

 

NPM: A Harder Bargain? From a marketing management perspective NPM involves exchanges other than where the consumer makes economic sacrifices for economic benefits •

Lack of secondary data available to non-profit marketer on consumer characteristics, behaviour be haviour,, preferences, attitudes

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Collecting data from consumers may involve data on central ego needs as well as attitudes and behaviours with respect to controversial and taboo topics Consumers may be asked to make sacrifices on issues regarding which they may be indifferent (e.g. ater conservation, environmental pollution!

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NPM: A Harder Bargain? •

Consumers may be re"uired to make significant changes in their attitudes and behaviours compared to private sector which makes consumers value a product more than they used to

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#n the private sector it is possible to modify a product to meet consumer needs and wants better$ much more difficult to do this in the non-profit sector 

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%he issues that non-profits deal with often re"uire e&change of large amounts of information with the consumer. %his means dealing with

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comple& consumer behaviours and attitudes Because many changes to be marketed involve intangible social and psychological benefits, its is often difficult to portray the offering in a tangible and understandable manner 

 

Defining a NonProfit !rgani"ation#s $n%ironment

• 'oes the organi!ation rely on donations in whole or in part( • Is the organi!ation)s performance likely to be

subject to public scrutiny( • Is marketing seen as undesirable from the standpoint of some or all members of the organi!ation or its major sponsors or reviewers( reviewers( • 'oes the organi!ation rely e$tensively on volunteers( • Is performance largely judged by non-marketing measures(