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Module: Contemporary Issues in Marketing
Module code: M16 MKT
Report Title: Marketing strategies in non profitable organisations
Presented by: Syed Salman Yusuf Qhadri
.......................................................1 Sales mindset 2.................................................................2 1.......2 Physical evidence 7) Conclusion ..............................3 2..............................1 Promotion 5.........................5 4........................................2 Place 6) People ......................8 8) References ..........1 Marketing stratigies ratified for a social cause 2) Product mindset..............................7 6.......11 1 .....................................1 Traditional marketing mix 4........1 Process 6......................................................6 5..................................2 Product 5) Price ......................Table of Contents Topic.............................................................................2 Customer mindset 3) Social marketing...................Page number 1) Introduction.............................................4 4) Strategic planning and marketing mix......
brief comparison between non profitable and profitable organisations marketing strategies.Summary In this report we briefly discuss the various tools of marketing in non profitable organisations compared to profitable organisations. similarities and differences in approach as well. various marketing strategies implied. 2 . social marketing and its issues. the use of marketing mix and its extent.
Hence generating an adequate income in all these organisations is extremely critical. This has led educational institutions. socio-political organisations. The momentous contributions of educational.Marketing strategies in non profitable organisations INTRODUCTION Non profit organisations are those without a reasonable right to earn profit. This is where social and societal marketing plays a key role. Contemporary and innovative marketing strategies will create an awareness in the target audience and encourage them to support. religious and charitable organisations and other social organisations operate with a new spirit. Keeping quality and efficiency as their primary aim. hospitals and health care. non government organisations have to survive in order to serve the neglected parts of our society. healthcare. Kotler and zaltman (1971) and Shapiro (1974). As even a non profitable organisation has to bear a lot of expenses in order to keep the mission of the organisation accomplishable. hospitals and healthcare units should continue providing expert services for the well being of human life. charitable and other non government organisations in nurturing the calibre of human ability. Their ratification in exercising marketing strategies and instruments in the field of non profitable organisations should advocate a structured approach through strategic planning (Andreasen and Kotler. religious and charitable organisations have to carry out their responsibility of uplifting the targeted communities. perception and campaign. Marketing strategies ratified for a social cause The accentuation of marketing in non profitable organisations has been influenced by the work of Kotler and Levy (1969). donate or invest in order to build a relationship with these organisations to contribute to the society. religious. Services marketing in non profitable organisations has become quite significant throughout the globe. However. which invariably contributes to the development of the nations. this does not mean a good income is not permissible to the organisation. 3 .2003). development and the well being is undeniable. There are quite a few strategies and tools that are widely implicated by non profitable organisations. socio-political. Educational institutions have to function efficiently in order to literate the masses.
It is essential to introduce. their programs. In a world where customers are buried with propagandas.WG. their ideas. Yet a customer is more likely to remember a message if its constantly recapitulated through different mediums. design concept. Identifying the customers that are keen in supporting their mission (Market segmentation /Customer identification) Entailing a brand name that is developed to attract those customers (Product positioning). 2009). The customer mindset Organisations that understands the needs and wants of the customers in the target market and concentrates on fulfilling those demands through effective communication.S. change or modify a product that would widely be accepted and appreciated by the consumers. The sales mindset Organisations that have the ability to persuade the customers to accept their product or services instead of the ones being offered by the competitors. and Katie. Communicating through mediums that these customers are extremely familiar with (place). Mostly non profitable organisations trade their mission.2005) Even more important than developing strategies is to adopt a proper marketing mindset ( having a clear idea about the true potential of marketing and the benefits it can provide and appreciating them in an ethical manner) and also inculcating an ideology of marketing. their services and very rarely goods. basic business orientations that are extensively used in the private sector have to be studied. Non profitable organisations have to essentially develop a prominent niche in a market place of fierce competition. Most of the non profitable organisations aim diverse audience which require diverse approaches (Maynard. Drawing the attention of these customers by effective communicative messages (advertisement). where consumer is given the most importance. a buoyant notion will create market awareness. price and supply of competitive goods and services. are said to have a customer mindset. are said to have sales mindset. Along with market orientation which till a certain extent will help most of the non profitable organisations effectively (Dolnicar. The product mindset Organisations concentrate more on their product and are skeptical to change or innovate them even if the product is not appreciated by its customers. But 4 . In order to understand marketing mindset.
Even though these organisations constantly broadcast their messages and educate the masses through them. Non profitable organisations or public sector agencies use social marketing as a tool to influence behaviour's of the consumers for their own well being at times with a charge. P. Inculcating a customer oriented mindset and approach does not mean that the entire goal of a non profitable organisation has to be changed in order to cater to a customer's whims and fancies. and in another instance where organisations promote usage of recycled paper but law cannot back it up and make the usage mandatory. it depends on individual choice. M. A few illustrations are: To accept a new behaviour by controlling wastage of water. to have a good strategic marketing plan. well being. safety. and Rothschild. smoking cannot be completely banned hence smoking in public places is illegal. For instance. 2006) Social marketing consists of formulated planning and techniques applied mostly by non profitable organisations and public sector companies. (Kotler. (Lionel titman. P.this orientation can easily be misunderstood by managers in non profitable organisations as the name suggests.N. p. N. These philosophies have great attributes in non profit marketing sector. Whereas profitable organisations who market and sell goods and services immaterial their product benefits or harms the well being of the society. and Andreasen. environments and communities. A R. (Kotler. 2008) It is very challenging at times to influence the behaviour or conduct of an individual (consumer. Therefore just to make it a bit more clear. To reject a potentially harmful behaviour by not drinking and driving. To modify a current behaviour by illustrating harmful affects of smoking. society or target audience) but at times these promotions can be backed by the law of the land. customer mindset means that marketing planning should start with needs and wants. 1995) 5 . the main criteria always remains dicey whether the target audience bought the behaviour that was promoted in the first place by these organisations. communicate and supply value in order to persuade the target audience behaviors that will perquisite the society in terms of health. (Kotler. the commencement has to be by keeping the customers perception in mind. Lee. like for instance rule of using the seat belts while driving is pretty strict so in order to avoid the consequences the driver wears the seatbelt immaterial whether he/she likes it or not.. 2003) Social marketing It is a marketing discipline that cites fundamentally about the marketing strategies that are used to initiate. and Lee. it just indicates that. But many approaches have their limitations and cannot be completely backed by law and at times cant be backed at all. Rather.
and improved product. target market. This planning should include the concerned organisation's objectives. but in reference to non profitable organisations it 6 . treatment in a hospital. watches. (Kinell. It is essential as the price of a good or service is sold for establishes the profit of an organisation but that's only in reference to profitable organisations. analysis and system. These tools can be used to make both long term and short term strategies. Marketing should be a continuous process. and MacDougall. The way components of marketing mix determines the competitive positioning of the organisation in the target market. It all depends on how long does the product lifecycle sustain and how the organisation markets as the product faces so many challenges stage after stage.Strategic planning and marketing mix Strategic planning is a tool used extensively by the management of any profit and non profit organisations in order to plan well ahead of the time to come based on forecasted projections. It is a tool that makes marketing an easy and sound concept. services provided by tourism or hotel industry. promotion. felt or seen physically. 1997) Traditional marketing mix Product. This enables the designated management to sift in detail the status of the organisation and stipulate an outline for important decision making. J. These are structured tools used by the organisations in helping them take important business decisions that would suit their target customer needs. shoes. Every product goes through a lifecycle since its invention like: growth stage followed by maturity stage and finally as the sales drop down it witnesses the decline stage. customer date. with constant evaluation based on authentic information. M. macro and micro environments. price and place (4p's) are the components of almost all profitable and non profitable organisations. Products can be tangible or intangible. cosmetics. Price The appropriate amount paid by a customer for the product he/she purchases. Often replaced by another new. opportunities. This differentiates the organisation from its competitors. Marketing mix is a pattern that has had ascendancy over the entire marketing conception. and so on. Product A product refers to the commodity that satisfies a customer's needs and wants. Intangible products are service based which can be experienced but not touched. cars. services and pricing. better. touched and seen physically like: clothes. goals. issues. Tangible products are those that can be felt. like: a course at a university . products.
which were then termed as 7p's of service marketing as these were mostly service oriented. It consists of advertising. Strategical placement of the merchandize makes it extremely beneficial for the organisation and its customers. 7 . Induce consumers into purchasing the merchandize. Extended marketing mix As the organisations strategies were enhanced 3 tools were introduced into marketing mix. To enhance and sustain the image of the organisation. Customer perceived value of the product has to be analysed carefully by the organisation before marketing it. Promotion is generally referred to as the public face of a product and its company. Broadcast the advantages of purchasing their merchandize. location. Place Place comprises of distribution. emarketing and so on. Promotion is a key tool which helps any kind of non profitable organisation achieve it.just helps in survival and helps it get closer to its goal. In non profitable organisations creating a public profile is extremely essential to make ends meet. Promotion Promotion consists of all the strategies of communication an organisation uses in marketing their goods and services which provides valuable Intel about the merchandize. Promotion has a few main objectives: Develop a sense of recognition in the world of consumer about the merchandize. Altering the price can also affect the marketing strategy. demand and sales radically. Distinguish the merchandize from that of their competition. concerning the merchandize and the organisation or rather making it easily accessible for the consumers has made place a vital component in a marketing mix. and physical environment. sales promotion. telephonic marketing. personal selling. public relations. There are three pricing strategies: Market skimming strategy Market penetration strategy Neutral price strategy.
efficient and an expert staff or employees. the kind of well equipped. A prompt and efficient service or delivery of goods speaks volumes for an organisation. honest. Judgements are made by the customer based on the environment created by the organisation where in the service is being is being offered. This always gives the organisation a scope of improvement.People An important component for any service providing profitable or non profitable organisation is the appropriate use of staff and people. Therefore physical evidence plays a dominant role in marketing mix of an organisation 8 . For instance the ambulance service that a health care unit provides takes only a couple of minutes to reach the point of emergency and back. Process The technique used by non profitable organisations to supply goods or services to their consumers. Depending on which the organisation can measure their proficiency. For instance the clean and hygienic environment in a hospital while a patient (consumer) is being treated. market positioning and brand value in the market. dedicated. It is extremely essential for any organisation to hire a hard working. Physical environment Physical environment is an element of service that determines the perception of a customer. Customers take the decisions and give their views about the services that are being offered to them which gives the organisation a competitive advantage and provide as source of feedback. highly facilitated and expert environment provided in our own university gives us as students (consumer) an extremely good perception about the service being offered. It is also equally essential to educate the employees about their services that they have to carry out in order to propel the organisation forward into the market.
. Yet the principles. The primary and most dominant difference being the motive of earning a profit exists only within a profitable organisation. educating the masses. existing social problem. However. reaching the masses. Profitable organisations and non profitable organisations share one thing in common and that is facing the competition in the target market. influencing behaviours.blogspot. Profitable sector chooses the market where it can generate maximum sales and financial return. providing healthcare and so on. strategies and methods used in both remain the same. Ref: http://genzmarketing. In non profitable sector primary aim is to have societal gain.com/ Conclusion From the above report it can be concluded that there are important differences between marketing in profitable organisations and marketing in non profitable organisations. their competitors may differ 9 . In profitable sector primary aim is to have financial gains. Non profitable sector chooses the segments of market that are based on a criteria. whereas in non profitable organisation the monetary motive is to take care of the expenses and survive but the main motive being achieving their mission.
completely from each other. Donating blood. educational services. Help conserve water. There are also various similarities that are faced by profitable and non profitable organisations. Avoiding wastage of food. earning huge profits by expert medical care. donations. avoid or hesitate doing. Having a customer centred approach. competitor in the profitable sector will also be selling similar goods and services for competitive prices. Avoiding drunken driving. Adopting a healthy lifestyle but at times with a price. Save water. Save fuel. Law of exchange remains crucial for both. fund raisers. charities. However it is quite obvious and evident from recent observations that non profitable organisations are earning more profits than profitable organisations by misusing the tax rebates. fitness industry and so on. Ignoring peer pressure. turn off your engines at traffic signals. Strategies must be altered to suit customer needs and wants. Invoking a civic sense. Donating eyes and other vital organs after death. Seeking medical help with a chunky price tag. 10 . Whereas competitors in non profitable sector will still be offering similar services along with similar societal motives. Seeking education with a price. Marketing in non profitable sector is far more challenging than profitable sector as they have to influence people to do things that they often tend to ignore. keeping their primary aim as maximum sales and profit. Donating in charitable and religious institutions. All the 7p's of marketing mix are utilized by both. Spending more money to purchase recycled paper. Refrain from wearing animal skin and fur. Driving within a speed limit. Marketing strategies are used throughout the system. like: Giving up an addiction. Like it is mentioned earlier. Feedback is always evaluated for further improvements.
N R. 2005. W. M. Kinnell. Marketing in not for profit sector. 2 Maynard. International marketing review. 2005. 6 Jha. P. 26. and Kaye. 2008. L. and Kotler. 2009. S M. 11 . P. Marketing in non-profit organisation. 2008. and MacDougall. Social marketing influencing behaviours for good. Andreasen. The impact of nonprofit marketing in the social sector Strategic marketing for non profit organisations. J. 2009.References Dolnicar. and Lee. Strategic marketing for non profit organisations. Marketing non profitable organisations Titman. Non profit success requires ongoing marketing. and Kotler. P. M. Marketing in the new public sector Kotler. A R. 2003. J. Allison. Strategic planning for non profitable organisations. S. 275-291 Andreasen. 1995. 1997. A R. an international perspective.
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