Nonprofit

Management

Chapter 10: Marketing and

Communications

Defining and Understanding Marketing

Approaches to marketing
Commercial marketing -- seeks additional customers
for programs and services
Social marketing -- seeks to change human behavior
and improve society
Cause-related marketing seeks to both increase sales
of for-profit company while also providing benefits to
nonprofits cause

Marketing mindsets
Product mindset effective marketing depends on the
quality of the product
Sales mindset effective marketing depends on
convincing consumers
Target-audience mindset effective marketing
depends on focusing on the needs of consumers

Need for Marketing

Nonprofit organizations operate in a

competitive environment
Competition for funding from corporations,
foundations, and individuals
Competition in advocating a particular cause or
social goal
Competition for attention amidst everyday
noise
Competition against other nonprofits, for-profit
companies, and public organizations engaged in
similar activities
Generic competition against alternative uses of
individuals time and money

Communication and Marketing

Communication and marketing are not

synonymous
Communication -- the transmission or
exchange of information
Understanding the principles by which
information is transmitted and received
Understanding the various technologies that can
be employed

Marketing -- communications with the purpose

of influencing the behavior of someone else
Draws on theories of communication
Involves an exchange

THE MARKETING MIX

The Marketing Mix

Product -- the good or service being offered

(including intangibles)
Place -- the location at which the product or
service is available
Promotion -- the visible efforts undertaken to
gain visibility and notice for the organizations
products
Market segmentation and target markets

Demographic variables, geography, and behavioral

measures
Psychographics
Marketing to the individual

Price -- the cost of the good or service (or the

benefits exchanged)

Pricing

Cost-oriented pricing: set to allow

NPO to break even
Competition-oriented pricing: set at a
rate comparable to its competitors
Value-based pricing: set to
distinguish the NPOs perceived value
from its competitors
Price discrimination: charging
different prices to different segments

Branding Terminology

Brand -- a name, term, sign, symbol, design, or a

combination of these that is intended to identify
the goods and services of one seller or group of
sellers and differentiate them from those of
competitors (Burnett, 2007, p. 179)

Logos

Branding Terminology

Brand -- a name, term, sign, symbol, design, or a

combination of these that is intended to identify
the goods and services of one seller or group of
sellers and differentiate them from those of
competitors (Burnett, 2007, p. 179)
Brand attributes -- the collection of perceived
qualities of the organization or its products
Brand promise -- the expectations that you have
about what you will receive when you buy a
specific product or service
Brand equity -- the monetary value that a brand
image brings to an organization

Effective Marketing

Integrated Marketing Communication (IMC) -- the

messages and values that an organization
communicates permeate every aspect of the
organizations work
Marketing and branding as rooted in reality

Organizations brand unlikely to settle too far from the

reality of what the organization actually does or what it
really is
Official publications and communication via news
media unlikely to outweigh firsthand knowledge and
communication via word-of-mouth

Effective messages are those that CRAM (Andresen,

2006)

Establish a Connection
Promise a Reward
Inspire Action
Stick in Memory