Non-Profit Marketing

(noun)

Mission-driven marketing using the organization's core mission as the foundation, and marketing communications as the focus.

Related Terms

  • cause-related marketing
  • corporate social responsibility
  • Cause Marketing

Examples of Non-Profit Marketing in the following topics:

  • Societal Role and Nonprofits

    • Non-profit marketing focuses on goals in education, youth development, environmental protection, healthcare, poverty and spirituality.
    • Non-profits are allowed to generate revenue, but must do so in specific ways to maintain their non-profit status.
    • Non-profit marketing is mission-driven marketing using the organization's core mission as the foundation and marketing communications as the focus.
    • Despite their opposing objectives, for-profits and non-profits often come together to implement cause marketing programs.
    • Cause marketing or cause-related marketing activities involve the collaboration of for-profit businesses and non-profit organizations for mutual benefit.
  • Unique Issues in Nonprofit Marketing Strategies

    • Non-profits' marketing strategies enable them to focus on maximizing revenues in order to reach their goals rather than for profits.
    • A non-profit organization's (NPO) business goals tend to focus on the "organizational mission," which is the basis for the organization's governmental status or its non-profit, tax-exempt status.
    • However, non-profits may also focus marketing efforts on optimizing revenue.
    • The primary difference between for-profit and non-profit organizations is that for-profit organizations try to maximize wealth, while non-profit organizations look to provide a greater good to society.
    • Explain how the marketing strategies of non-profits differ from those of for-profit organizations
  • Differences in Messaging in For-Profit vs. Non-Profit Organizations

    • For-profit and non-profit organizations have different primary objectives and marketing strategies.
    • For-profit marketers measure success in terms of a company's sales and profit; a for-profit's continued existence is contingent upon its profits.
    • In contrast, non-profit institutions exist to benefit a society, regardless of whether they make a profit.
    • Although some non-profits have adopted the marketing practices of big businesses, most focus on fundraising or development as opposed to business-style marketing.
    • Some non-profits have sources of revenue that help sustain their operations.
  • For-profit marketing versus nonprofit marketing

    • As the terms connote, the difference between for-profit and nonprofit marketing is in their primary objective.
    • For-profit marketers measure success in terms of profitability and their ability to pay dividends or pay back loans.
    • Because of the implicit objectives assigned to non-profits, they are subject to an entirely different additional set of laws, notably tax laws.
    • While they are allowed to generate profits, they must use these monies in specific way in order to maintain their non-profit status.
    • There are several other factors that require adjustments to be made in the marketing strategies for nonprofits.
  • Defining Consumers

    • Any product, good, or service that is developed must have a target market in mind, in order to be effectively marketed and sold.
    • In marketing, there are six types of target markets:
    • Commercial Markets (consisting of service companies, non-manufacturing companies, and not-for-profit organizations)
    • International and Global Markets (several markets distinguished by different needs and different cultures)
    • Now, there is a trend in marketing to individualize the concept of "A Consumer. " Rather than generating broad demographic profiles and psycho-graphic profiles of market segments (which has been the norm), marketers are now starting to engage in personalized marketing, permission marketing, and mass customization.
  • Marginal Analysis

    • At the output level at which marginal revenue equals marginal cost, marginal profit is zero and this quantity is the one that maximizes profit.
    • Since total profit increases when marginal profit is positive and total profit decreases when marginal profit is negative, it must reach a maximum where marginal profit is zero.
    • If the firm is operating in a non-competitive market, changes would have to be made to the diagram.
    • For example, the marginal revenue curve would have a negative gradient, due to the overall market demand curve.
    • In a non-competitive environment, more complicated profit maximization solutions involve the use of game theory.
  • The Importance of Evaluating Marketing Performance

    • Evaluating marketing performance guides future marketing initiatives and helps a company achieve its goals.
    • Marketing performance metrics or key performance indicators (KPIs) are useful not only for marketing professionals, but also for non-marketing executives.
    • From the chief executive officer to the vice president of sales, the senior management team needs marketing KPIs to gauge how marketing activities and spending impact the company's bottom line.
    • As marketers face more and more pressure to show a return on investment (ROI) on their activities, marketing performance metrics help measure the degree to which marketing spending contributes to profits.
    • Establishing marketing performance metrics is integral to helping brands satisfy customers, establishing a clear company image, being proactive in the market, and fully incorporating marketing into the company's overall business strategy.
  • Marketing Information Systems

    • A marketing information system is a management information system designed to support marketing decision making.
    • Marketing intelligence is the province of entrepreneurs and senior managers within an agribusiness.
    • A marketing information system is a management information system designed to support marketing decision making.
    • Jobber (2007) defines it as a "system in which marketing data is formally gathered, stored, analysed and distributed to managers in accordance with their informational needs on a regular basis. " Kotler, et al. (2006) define it more broadly as "people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. "
    • A formal MkIS can be of great benefit to any organization, whether profit making or non profit, no matter what its size or the level of managerial finesse.
  • Types of Businesses

    • It can also be a for-profit or non-profit corporation.
    • Cooperative: Often referred to as a "co-op", a cooperative is a limited liability business that can organize as for-profit or not-for-profit.
    • Businesses also vary by industry due to the wide variety of products and service they offer to the market.
    • Information businesses generate profits primarily from the resale of intellectual property.
    • They make a profit by providing sales or distribution services.
  • Profit Margin

    • Profit margin measures the amount of profit a company earns from its sales and is calculated by dividing profit (gross or net) by sales.
    • Profit margin is one of the most used profitability ratios.
    • Net profit is the gross profit minus all other expenses.
    • The gross profit margin calculation uses gross profit and the net profit margin calculation uses net profit .
    • Companies need to have a positive profit margin in order to earn income, although having a negative profit margin may be advantageous in some instances (e.g. intentionally selling a new product below cost in order to gain market share).
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