MARKETING OF NON-PROFIT ORGANISATIONS

OBJECTIVES
Non-profit Organization attempt to achieve objectives other than profit Poverty alleviation Providing education to less privileged children Increasing awareness about health Empowerment of rural women Development of rural areas etc.,

INTERVENTIONS OF NON-PROFIT ORGANISATIONS

Women Empowerment
Self Help Groups. Adult Literacy

Family Counseling Centre Community Participation

Health Education Camps Education

Environment
Watershed Mgnt. Sanitation Awareness on Solar Energy

Rural Development Programme

Youth Programme

Prison Reform
Creche Vocational Training

Rural Governance
Panchayat Training

Vocational Training
Stitching & Computer Classes

Research Training and Documentation

Why Marketing for Non-profit Organization????

Need to generate funds in an increasingly competitive environment Rise membership fees or donations(communication is required) Persuaded to join organisation Motivate the public to rise funds

Why Marketing for Non-profit Organization????

Marketing can help you and your organization:
define your unique niche in the marketplace and ensure that you posses the right services to meet the needs of your donors and consumers; reach the audiences you want with a message that motivates people to respond; decide what you want, go after it, and become a more prosperous organization with increased resources to carry out its mission; stand out from the crowd and attract the kind of attention, support and enthusiasm you need and deserve; have a greater impact on the social welfare and agenda in your community and beyond.

Characteristics of Marketing in Non-profit Organization Education Vs meeting current needs Multiples publics Measurement of success and conflicting objectives Public scrutiny

Target Market and Differentiation

Donors- Donors may judge which clarity to give to on the

basis of awareness and reputation, the confidence that funds will not be wasted on excessive administration and perceived worthiness of the cause. The Charity needs to promote not only itself but also the cause it supporting.

Clients- Clients

are people and organizations who receive the services of the non-profit organization. People are suffering all around us and all of them should be willing recipients of the non-profit organizations services

Marketing plan
Focus of the plan Where are we now Marketing environment Step 1 Defining goals Environment analysis SWOT analysis

Step 2 Where we want to go? Markets, goals and tasks Step 3 Step 4

Choice of selected groups Setting of goals and tasks Market analysis and competitors analysis

Product definition of the market offer How we go there? Marketing strategies Step 5 Price focus on the cost Access (Distribution) Promotion developing messages and choosing of communication channels Step 6 How we stay Management of Development of plan for evaluation and monitoring

The 4 primary ways to influence behaviour

CONTROL

EDUCATE

DESIGN
EXCHANGE

DEVELOPMENT A MARKETING MIX

The marketing mix is a set of controllable elements that helps to produce a desired response within a target market. It is sometimes referred to as the 'Ps' of marketing. In the nonprofit world there are six of these elements to consider when developing your marketing strategy: Product Publics Price Place Production Promotion

DEVELOPMENT A MARKETING MIX

Product - For nonprofit organizations, product refers to the programs and services that are offered. When examining the product your organization offers keep in mind that nonprofits are mission driven as opposed to product driven. However, many nonprofit organizations pride themselves on offering quality programs and services for their constituent base. In the for-profit sector many companies make guarantees on their products in order to stress quality. The same is true for some nonprofit organizations, which helps them distinguish themselves from other organizations in the same sector. Some examples are a college guaranteeing small class sizes of less than 15 students, or a world hunger organization guaranteeing that 90% of monies raised will go directly to their cause. Publics - This element of the P's identifies those with whom you want to engage in transactions. Publics may include your board members, constituents and prospects. These may also include individuals, corporations and foundations you plan to exchange your product or service with. Your publics must understand these programs and their benefits to them. Having a clear understanding of your publics is a key element in planning your business and marketing strategies.

DEVELOPMENT A MARKETING MIX

Price - Price is an important element in the marketing mix because it establishes a perceived value for a program or service. At times we purchase a more expensive product if the perception is that it offers a greater value. This relationship between price and perceived value also exists in the nonprofit sector. An example would be a school that has a large endowment and brings in substantial funds via contributions. This allows them to keep tuition costs at a minimum even though other schools in the area are raising tuition. However, incoming parents admit that price is a gauge of quality. Therefore, in the community, parents perceive this school's academic programs as inferior. Place - This element refers to the location where the product or service is available. Location is a key factor when you are attracting constituents to your organization for programs and services. If you are a social service agency serving inner-city youth and move your offices to a more affluent location many clients will most likely stop coming to your organization. This impairs your organization's ability to accomplish its mission and goals.

DEVELOPMENT A MARKETING MIX

Production - Production refers to how well your organization can meet the demand for your products, programs and services. In order to be effective your operations team should focus on demand and supply that equates at a feasible level for your organization. If your demand is exceeding supply then you'll need to look for ways to increase production and/or productivity. Promotion - This is an element that is sometimes overlooked by nonprofit organizations. Even if an organization offers some of the best programs and services, if the market they were intended for has no knowledge of their existence the programs will not be utilized to the fullest. This could be dangerous for a nonprofit since constituents are reluctant to support an organization with which they are not familiar or which isn't clear about its mission and goals and how they plan to achieve them.

DEVELOPMENT A MARKETING MIX

Even in the smallest nonprofit organization with limited resources for marketing and promotion there are still ways to spread the word about your group. The following are just some examples of how to use free media and volunteer resources: 1. Send out news releases regularly to media representatives and other key people on your mailing list. 2. Cultivate relationships with local media representatives. These folks can be of great assistance in placing feature material, calendar information, and coverage of press conferences and events 3. Periodic public relations events can be planned and executed by volunteers. Any means of creating broader interest in your community, constituency, and the publicity will help the image of your organization. 4. Send out a newsletter periodically to your list of supporters. If there are different groups of people for which different messages are necessary then separate newsletters can be created. 5. Build relationships with local schools. Identify functions and initiatives they are learning that would benefit your organization.

Steps in Marketing for Non Profit Organization

Develop a Marketing Plan Before you actually start marketing, you need to develop a marketing plan for a non profit organization. This plan would guide you in the process of marketing. Identify the Market Be it a profit making or a non profit making organization - identify the target market. Identify the place where you want to work and to which section of society you wish to cater through your organization. In order to do this, you can research and approach some other non-profit organizations that work in a similar field. Get some necessary tips to reach the donors and publicize your organization. Advertising Advertising forms an important part of your marketing process. Once you have collected and gathered all the necessary information based on your research, start advertising. Begin with the distribution of brochures, contact some social networking websites and flash your advertisements on those websites. Social networking websites are a very useful medium to advertise your organization within the donor circles. Your advertisement should contain the necessary information such as the organizational values and mission statement, the services and the area of work, donation plans and strategies and also the benefits that people can get from your organization.

Steps in Marketing for Non Profit Organization

Continue Marketing Advertisement will surely help you in gaining donors, but do not stop once you have acquired some of them. Try to retain them for a long time and also keep on searching for new donors. The best ways of retaining your donors and getting new ones are, calling them up for special events, updating them on the change in donation strategies, emailing them frequently and keeping a follow up. Success Advertisement Advertising your organizational success is another effective marketing technique, which helps you in reaching greater heights. Through the advertisement of the achievements of your organization, you could be able to display the stability and recognition of your organization. You would therefore get some new projects and high profile contributors. Business Expansion Always look out for tie ups with huge profit making organizations, television media and print media. Send your representatives over there and make people aware of your organization and its work. This can help you in increasing the scope of your organization and also reach a larger group of the needy people.

Marketing Strategy and the Strategic Planning Process

There is a great deal of overlap between overall organizational strategy and marketing strategy. Marketing tools look at consumer needs and the organization's ability to satisfy them; these same factors guide the organization's overall mission and objectives. Marketing plays a key role in your organization's strategic planning in several ways. First, marketing provides a guiding philosophy the marketing concept that suggests your organizational strategy should revolve around serving the needs of your important groups, i.e. consumers or donors. Secondly, marketing provides inputs to strategic planners by helping to identify attractive opportunities among those groups and by assessing your organization's potential to take advantage of them. Finally, within individual branches of an organization, marketing designs strategies for reaching the branch's objectives. Once the branch's objectives are set, marketing's task is to carry them out effectively and cost efficiently.

Improving Efficiency and Effectiveness of Nonprofit Organization

Non-profit Organization spend about twenty percent of their total outlay on raising resources Non-profit Organization are righty concerned about the continuity of their programs and activities and should hold some reserves of resources There are some Non-profit Organization who excel in service delivery It is important to know whether the target constituents have received the benefits and whether their lot has improved The Non-profit Organization incur huge amount of administrative expenditure Donors will have an important role to a play Board members have very important role to play

???????? TO BE ASKED What has changed? Who or what is the competition? What are the challenges? What are the opportunities that are opening up?

The seven Cs of marketing strategy

Customeryou can solve his or her problem Central usermay be different from the customer Competitionwhat are they up to? Companydo you have the needed capabilities? Contextyou need to know the environment Collaboratorsyou always need help Commitmentare you willing to support the offering?

Problems in Non-profit Organization

Lack of proper management: An effective management and a board of directors play a major role in the success of any organization. Most non-profit organizations lack skillful management service and therefore, fail in maintaining quality of service. Lack of resources: Another major issue faced by non-profit organizations is lack of sufficient resources such as funds, employees, management services and other such resources. However, this can be built up with the support of other profit making organizations and government sectors. Strategic planning can also help these NPOs to successfully overcome this issue. Superimposed charges: Non-profit organizations often have to grapple with overhead charges required to carry out these services in an uninterrupted fashion. Most of them do not have a choice here. The funds they receive are barely sufficient to keep their projects afloat and not every one of them has volunteers to carry out the tasks.

Problems in Non-profit Organization

Fund raisers are a rare commodity: An additional issue these NPOs face is the problem of finding an appropriate fundraiser for their projects. Not much support is forthcoming from the governments and private enterprises and the entire burden of raising funds rests solely on these organizations. Often the fund provided may not be adequate to cover all the expenses involved and this then needs to be supplemented with commercial aids such as advertising, sponsorships and other grants. Newly imposed legal laws: The imposition of certain regulatory acts on the fundraising and distribution process performed by the NPOs is another obstacle in the development process of non-profit organizations. Non-profits organizations often lack money, time and useful resources to build a strategic plan or an efficient management. Better strategic planning under the guidance of a quality leadership management and support from government and private entities can help NPOs overcome all such common issues and work better for the greater good of the needy and society in general.