MARKETING FOR NONPROFIT ORGANISATIONS.

Presented by
Hospital Administration
Department
JNMC, BELGAUM

DEFINITION
A nonprofit organization is an organisation that does not

distribute its surplus funds to owners or shareholders, but

instead uses them to help pursue its goals.
Examples

of NPOs include charities (i.e. charitable

organizations) , trade unions, and public arts
organisations.

Most governments and government agencies meet this

definition, but in most countries they are considered a

separate type of organisation and not counted as NPOs.
Ms Sophie

8/27/15

NON-PROFIT DISTINCTION
Whereas profit corporations distribute taxable business

earnings to shareholders, the NPOs exists only to

provide programs and services that are of public
benefit.
NPOs may put substantial funds into hiring leadership

and management personnel.

NPOs can achieve their missions more effectively by

using effective internal management, ensuring

accountability for results, and monitoring the
performance of different divisions or projects in order
to make the best use of their funds and people.
Ms Sophie

8/27/15
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STRUCTURE OF A NPO
The

two major types are membership and

board-only.
A membership organisation elects the board
and has regular meetings and power to amend
by laws.
A board-only organisation typically has a
self-selected board, and a membership whose
powers are limited to those delegated to it by
the board
Ms Sophie

8/27/15
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WHY STUDY NPO MARKETING?

Marketing is a discipline that applies whenever

one has the challenge

behaviour of others.

of

influencing

the

Managers

here, realize that their missions

involve influencing donors to give, volunteers to
come forward, clients to seek help and staff to
be client friendly. Hence a marketing mindset is
critical of their success.

Ms Sophie

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Players outside the NPOs are called to interact

with the NPOs.

Also many corporate managers at some time
volunteer to serve in NPOs.
Thus,
1. NPO managers need to know, how to be
better at influencing all the public whose
behaviour would in turn influence the NPOs
success.
2. Corporate marketers need to understand
NPO marketers to partner them effectively.

Ms Sophie

8/27/15
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Managerial Relevant Classification

2 key dimensions that what a manager can

do in a NPO.
1. The relation between the NPO and
regulatory/ supportive body.
2. Nature of basic exchanges the
organisation is trying to create.

Ms Sophie

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NATURE OF ORGANISATIONS
ENVIRONMENT
Is the organisation donative?
If

funded by pvt. or govt., marketing is

influenced in 2 major ways:
Funding

agencies may establish restrictions

based on procedural, certain activities, in
tackling segments that are difficult to influence.
Marketing task is doubled, plan programs aimed
at final consumers but also to ensure increased
outside support.

Ms Sophie

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 Is there a public scrutiny?

NPOs find their marketing options severely

restricted if they are constant to public

scrutiny.
Is marketing seen as undesirable?
Initially they said that good health, lawful

behaviour shouldnt be sold.

Marketing is seen as wasting publics money?
Fund raising should not exceed 35% of related
contributions.
A.

Ms Sophie

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B. Marketing seen as invasive?

Market research is dedicated to knowing the

wants, needs of the people but organisations
must show respect to peoples feelings for
privacy.
C. Marketing seen as manipulative?

Organizations must not use marketing to

manipulate the target market and hence
should use proper means of marketing.

Ms Sophie

8/27/15
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 Does the organisation depend heavily on

volunteers?
2 problems encountered.
1. Need for more volunteers- more marketing
programs to attract and retain personnel.
2. Based on fact that volunteers are unreliable,
hence manager uses his experience and
rule of thirds.
1/3rd eager to help
1/3rd who work little and want to tell their

friends they volunteered.

Middle 1/3rd is one that can make or break the
group.(managers interpersonal skill)
Ms Sophie

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 Is marketing judged by Non - marketing

studies?
If judged by funding agencies or boards they
have very less knowledge of day-day mgt.
Accomplishments are difficult to detect as they
are intangible.

Ms Sophie

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APPLICATION TO OPERATIONS
1. Management
Analysis,

planning, implementation, and control are

managerial functions performed by the board and staff for a
term of years.

The

group first measures the needs of its primary

constituents (clients, users, etc.) and then designs (or
redesigns) services to suit those needs.

The ability of a charitable nonprofit organization continually

to adjust its services to suit client need is key to ensuring

the organization's survival and its financial support.

Ms Sophie

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2. Exchange
The organization and the constituent each seek

something from each other.

The constituent needs specific services.
The charitable nonprofit has two needs:
(1) maximum use of its service so as to justify its

existence;
2) financial resources.
Each voluntarily seeks a response from the other,

and when those responses happen, it is called an

exchange of values, or a market exchange.
Ms Sophie

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3. Target markets
Some charitable nonprofits stop at defining their primary

constituency, i.e., that target market for which their

programs are designed.
As organizations begin to see the connections between

their needs and the groups which could supply those

needs, the organizations begin to define and prioritize a
secondary constituency.
Include board, staff, advisory committees, government

agencies, regulatory agencies, mass media, competitors,

suppliers, and financial contributors, sub-divided between
those for program development and potential funders.
Ms Sophie

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Social marketing is one of the best tools NPO

marketing.
These concepts include creating a service with
value that is offered at reasonable price, and
which is advertised through channels that
effectively reach a desired consumer group.
Raising awareness begins with understanding
the target population, such as identifying their
current views on a particular issue and
knowing how they receive their information.

Ms Sophie

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MARKETING STRATEGY
PLANNING
The marketing plan must be tied to the

strategic plan of the organization.

Research during this stage will help to inform
the overall marketing plan.
It is often helpful to bring in staff members
who communicate with specific groups of
stakeholders to gather input and build
consensus.

Ms Sophie

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 POSITIONING
Nonprofit organizations compete for attention

not only with other worthy causes, but with all

marketing messages targeting stakeholders.
The first challenge for a nonprofit, say Gomes
and Knowles, is becoming well-known to the
community it serves.
The next step is to influence the publics
perception to create a favorable image.
Finally, the nonprofit tackles the task of
differentiation
how people perceive the
organization in the context of similar nonprofits.

Ms Sophie

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 COMMUNICATING
A variety of tactics can be used to communicate

with different stakeholders.

Each audience will require its own set of tactics,
such as press releases advertising for volunteer
recruitment.
The list of communications activities should be
coordinated so that individuals from more than
one stakeholder group receive consistent
information in a respectful timetable.

Ms Sophie

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Adopting a consistent marketing

communications approach will help to:
Enhance your reputation through name
recognition
Build membership
Strengthen existing donor relations and
increase donations
Connect with new donors
Raise attendance at events
Generate momentum and support for the
organization and its programs

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Ms Sophie

8/27/15

 ATTRACTING RESOURCES
The ability of most nonprofits requires the

attraction of time, talent and treasure.

Time and talent refer to the contributions of
volunteers,
who
might
support
an
organizations service delivery
Treasure refers to the role of financial
donors, both large and small, in providing
the organization with money and in-kind
contributions to pay for the organizations
activities.
This marketing dimension must be carefully
coordinated to conform to best practices in
volunteer
management,
leadership
development and fundraising.
Ms Sophie

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ESSENTIAL ELEMENTS OF
SUCCESSFUL MARKETING
1. Identify target audiences.
2. Maintain consistent communication.
3. Create a visual identity.
4. Use message repetition and variation.
5. Employ multiple communications tactics
6. Select and use appropriate media.
7. Develop a strong, well-known identity

over time.

Ms Sophie

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UNIQUENESS OF NPO MARKETING

There

is minimum information available to the nonprofit

marketer about consumer characteristic, behaviour, attitude as
compared to that available in commercial business.

Very difficult to secure reliable research data for consumers to

serve as basis for marketing decisions.

Difficult to make the consumer bring a shift in attitude, wear a

seat belt etc.

Large amount of information needs to be communicated to the

consumer.
Difficult to market intangible, social and psychological benefits.

Ms Sophie

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ANALYZING EXTERNAL THREATS

A marketer works in an environment that is

constantly changing. The external

environment has 3 components:
1. The Public environment.
2. The Competitive environment.
3. The Macro environment.

Ms Sophie

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Public Environment
A public is a distinct of people whose both

potential and actual needs must be served.

Input Public
Donors, suppliers, regulatory public.

Internal Public
Management, board, staff and volunteers

Partner Public
Government agencies, marketing firms

Consuming public
Clients, media, activists.

Ms Sophie

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Competitive Environment
Consisting of groups and organizations that

compete for loyalty and attention from the

audiences of the focal organisation.
Desire competitors
general competitors
Form competitors
Enterprise competitors

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Macro environment
Forces that need to be watched are
Demographic
Economic
Technological
Political
Social factors.

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Impact of Strategic Marketing

Adopting a consistent marketing
communications approach will help to:
1. Enhance reputation through name
recognition
2. Build membership
3. Strengthen existing donor relations and
increase donations
4. Connect with new donors
5. Raise attendance at events
6. Generate momentum and support for the
organization and its programs
Ms Sophie

8/27/15
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REFERENCES
Strategic marketing for Nonprofit

organisation 6th edition Alan Andreason and

Philip Kotler.
Internet
www.wiley.com
www.scribd.com
www.amazon.com

Ms Sophie

8/27/15
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THANK-YOU !!!

Ms Sophie

8/27/15
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