Marketing for Non-Profit Organizations

Non-Profit Marketing (NPM):

What is it and why it
matters?
By
Dr. Muhammad Nouman

NPM: Myths and Realities?

While Non-Profits may address important social problems, the sector
is not a major component of a societys overall output
Most Non-Profits are organization-centred rather than customercentred
Non-Profits play a more important role in developed countries but are
not influential in the developing countries
Non-Profits need to focus more on their customer rather than the
donor
With a few exceptions, non-profits are mostly small, local enterprises
specializing in narrow domains
The management challenges that Non-Profits face are relatively
mundane compared to business or for-profit organizations

NPM: Myths and Realities?

Non-Profits are mostly run by do-gooders and social-reformers
who have a limited interest in efficient management of their
organization
Non-Profits are overburdened by negative perceptions of the public
regarding their real role in the society
Working for Non-Profits is a poor career move for those individuals
who want to make big money and excel professionally
Businesses need to have only a token involvement in the non-profit
world in order to maintain good public relations or to produce shortterm marketing gains

Understanding NPM
Non-Product Marketing involves the
marketing of a product or service in which
the offer itself is not intended to make
monetary benefit for the marketer
It takes the notion of satisfaction and
value-laden relationships to a different
level by focusing not just on the customer
but donor needs also

Defining Non-Profit
Marketing
Activities and strategies employed by a nonprofit organization
that are designed to spread the message of the organization,
as well as to solicit donations and call for volunteers. Nonprofit
marketing involves the creation of logos, slogans and copy, as
well as the development of a media campaign to expose the
organization to an outside audience.
A nonprofit organization can approach marketing in the same way
as a for-profit business. It should identify its target market (the
one it wants to reach), develop marketing materials to send to that
target market, and determine the objectives that a marketing
campaign should meet. In this sense, the nonprofit organization
follows the four P's of marketing: product, place, price and
promotion.
Source: www.investopedia.com

Why Study NPM?

Why is Marketing applied as a discipline inside firms?

Non-Profit Organizations
Donor

Clients
Staf

Volunteers
Others

Interactions
Non-Profit
Sector

Corporate
Sector
Public Sector

The Marketing Mix for an

NPO

Class Handout for Discussion

NPM: A Harder Bargain?

From a marketing management perspective NPM involves exchanges
other than where the consumer makes economic sacrifices for
economic benefits

Lack of secondary data available to non-profit marketer on

consumer characteristics, behaviour, preferences, attitudes
Collecting data from consumers may involve data on central ego
needs as well as attitudes and behaviours with respect to
controversial and taboo topics
Consumers may be asked to make sacrifices on issues regarding
which they may be indifferent (e.g. Water conservation,
environmental pollution)

NPM: A Harder Bargain?

Consumers may be required to make significant changes in their

attitudes and behaviours compared to private sector which makes
consumers value a product more than they used to
In the private sector it is possible to modify a product to meet
consumer needs and wants better; much more difficult to do this in
the non-profit sector
The issues that non-profits deal with often require exchange of large
amounts of information with the consumer. This means dealing with
complex consumer behaviours and attitudes
Because many changes to be marketed involve intangible social
and psychological benefits, its is often difficult to portray the offering
in a tangible and understandable manner

Defining a Non-Profit
Organizations Environment
Does the organization rely on donations in whole
or in part?
Is the organizations performance likely to be
subject to public scrutiny?
Is marketing seen as undesirable from the
standpoint of some or all members of the
organization or its major sponsors or reviewers?
Does the organization rely extensively on
volunteers?
Is performance largely judged by non-marketing
measures?