CHAPTER 22

MARKETING FOR NON

PROFIT ORGANIZATION

Marketing Management by Arun Kumar and N Meenakshi

© Vikas Publishing House Pvt. Ltd. 2006
 LEARNING OBJECTIVES
• Unique characteristics of marketing in non
profit organizations

• Marketing procedures for non profit

organizations: Understanding the nature of
clients and donors, and formulating the
marketing mix

Marketing Management by Arun Kumar and N Meenakshi

© Vikas Publishing House Pvt. Ltd. 2006
 Learning Objectives (Contd.)

• Ways of improving the efficiency and

effectiveness of non profit organizations

• Corporate philanthropy as a strategic

decision

• Understanding the nature and functioning of

for-profit social service organizations

• Non-profit organizations attempt to achieve

objectives other than profit
Marketing Management by Arun Kumar and N Meenakshi
© Vikas Publishing House Pvt. Ltd. 2006
 Learning Objectives (Contd.)

• Objectives are varied in nature and include

poverty alleviation, providing education to
less privileged children, increasing
awareness about health, etc.
• Most non-profit organizations operate in the
services sector
• Marketing important for non profit
organizations to generate funds in an
increasingly competitive environment

Marketing Management by Arun Kumar and N Meenakshi

© Vikas Publishing House Pvt. Ltd. 2006
 Learning Objectives (Contd.)

• Need to demonstrate how work is beneficial

to the society

• Lot of society’s welfare would be dependent

upon the effectiveness of non-profit
organizations

• NPOs need to be more marketing oriented

towards both their customers – Donors and
Clients

Marketing Management by Arun Kumar and N Meenakshi

© Vikas Publishing House Pvt. Ltd. 2006
 CHARACTERISTICS OF
MARKETING IN NON-PROFIT
ORGANIZATIONS
• Education versus meeting current needs

• Multiple publics

• Measurement of success and conflicting

objectives

• Public scrutiny
Marketing Management by Arun Kumar and N Meenakshi
© Vikas Publishing House Pvt. Ltd. 2006
 MARKETING PROCEDURES
FOR NON-PROFIT
ORGANISATIONS
• Target market and differentiation
Donors
Clients
• Developing a marketing mix
Product
Pricing
Distribution
Promotion
Marketing Management by Arun Kumar and N Meenakshi
© Vikas Publishing House Pvt. Ltd. 2006
 IMPROVING EFFICIENCY
AND EFFECTIVENESS
• Reduce cost of raising funds by adopting
marketing practices of commercial
organizations
• Greater investments in the early years of the
program would be more beneficial than the
same investments being spread over more
number of years

Marketing Management by Arun Kumar and N Meenakshi

© Vikas Publishing House Pvt. Ltd. 2006
 Improving Efficiency and Effectiveness (Contd.)

• Inefficient NPOs must benchmark their

activities with those who are doing them well
• Important to know whether the target
constituents have received the benefits and
whether their lot has improved
• Sharing resources, facilities and personnel with
other NPOs
• Donors should play the role of social investor
• Board members should push the NPO to
establish measure of effectiveness and
efficiency
Marketing Management by Arun Kumar and N Meenakshi
© Vikas Publishing House Pvt. Ltd. 2006
 CORPORATE
PHILANTHROPY
• Needs to extend beyond giving monetary
donations
• Corporate contribution programs are diffused
and unfocused
• Contributions often reflect personal beliefs and
values of executives or employees
• Focus on social needs that affect its corporate
context and utilize its strengths as corporation
to address them
Marketing Management by Arun Kumar and N Meenakshi
© Vikas Publishing House Pvt. Ltd. 2006
 Corporate Philanthropy (Contd.)

• Economic and social objectives are not distinct

• Competitive context has increased in
importance
• Where to contribute
• Selecting the best grantees
• Signaling other funders
• Improving the performance of the grant
recipients
• Advancing knowledge and practice
Marketing Management by Arun Kumar and N Meenakshi
© Vikas Publishing House Pvt. Ltd. 2006
 FOR-PROFIT SOCIAL
SERVICE ORGANIZATION
Lines between the non-profit, for-profit and
public sector blurred
• Governments are changing their strategies
• Strengths of for-profits
• Performance
• No-profits’ response
• Non-profits’ special competences
Marketing Management by Arun Kumar and N Meenakshi
© Vikas Publishing House Pvt. Ltd. 2006