‘92016 Marketing is Diferetin the Not For-profit World
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MarKETING Is DIFFERENT
IN THE Not-For-PROFIT WoRLD
Marketing has earned its place in the not-for-profit world. But marketing and development are
not the same. Marketing is about exchanging goods and services for money. Development is
about relationships — it is not about money.
Increasingly, not-for-profit organizations have taken to emulating the moncymaking practices
of corporations. These days, for example, most charitable institutions market themselves, a
practice that once was anathema, This powerful trend has three primary causes: the decrease in
funding from the public sector, the increase in competition for funds among an expanding
number of not-for-profit organizations, and the rise in funder pressure for not-for-profits to
‘operate in a "businesslike" manner.
Immersed in a capitalistic and materialistic society, development professionals were able to
effect a huge change in outlook and behavior after a relatively brief and easy transition. We
now are accustomed to calling our constituents "clients" and "customers." We segment our
"target market" and develop strategic marketing plans. We focus on the exchange of goods or
services for money. In all these efforts, we are aided by board members and other volunteers
from the for-profit world who are eager to embrace activities that to them are comfortable and
familiar.
The effects of the rise of marketing on the attitudes and practices of development professionals
hhave not always been for the better. We have refined to a science the execution of direct mail,
telemarketing and special events, making them predictable and rote. Unfortunately, the way we
imagine, plan and carry out these activities can lead us to think of our donors as numbers and
objects. Too often, we aim our communications at the masses rather than at individuals, In our
sophistication, we risk depersonalizing and devaluing our donor relationships.
In this article, I will attempt to make clear what I believe is a key distinction between
development and marketing. They are not the same thing, and ought not be confused. Also, I
will describe what I believe has been the impact of marketing on donor relations. Finally, I
will outline both the pitfalls and the proper role of marketing for not-for-profit organizations,
in the realms of social entrepreneurship, cause-related marketing, special events and
telemarketing,
IS IT MARKETING OR DEVELOPMENT?
Itis important for fund raisers to keep in mind that, while marketing can generate substantial
funds for charities, it is significantly different from development, Let us begin by defining
what we mean by the two terms.
Marketing is the promotion of the exchange of goods or services at a mutually agreeable price.
It involves a tangible, reciprocal transaction between a seller and a buyer.
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