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Unformatted text preview: n important strategy. It is often more cost-effective to hang on to existing customers
than to attract new ones.
KEY: CB&E Model Strategy OBJ: 12-5 | 12-6 TOP: AACSB MSC: BLOOMS Synthesis 11. What is nonprofit organization marketing? How does nonprofit marketing affect economic
activity in the United States?
Nonprofit organization marketing is the effort by nonprofit organizations to bring about mutually
satisfying exchanges with target markets by using the same marketing activities as for-profit
businesses. Unlike for-profit organizations, nonprofits do not have a bottom-line orientation.
Nonprofit organizations account for over 20 percent of the economic activity in the United States.
Government organizations collect revenues that amount to more than a third of the U.S. gross
KEY: CB&E Model Strategy OBJ: 12-8 TOP: AACSB MSC: BLOOMS Synthesis 12. What is a nonprofit organization? Discuss the marketing activities performed by nonprofit
A nonprofit organization is an organization that exists to achieve some goal other than the usual
business goals of profit, market share, or return on investment. Nonprofit organizations include a
wide variety of entities ranging from the government to private, not-for-profit churches. Although
nonprofit organizations differ substantially in size and purposes and operate in quite different
environments, most perform common marketing activities:
Identify customers (such as clients, patients,
members, or sponsors) they wish to serve or
Explicitly or implicitly specify objectives
Develop, manage, and eliminate programs and
Decide on prices (such as fees, donations,
tuition, fares, or rates) to charge
Schedule events or programs and determine where they will be held or where services will
Communicate their availability through
brochures, signs, public service
announcements, or advertisements
KEY: CB&E Model Strategy OBJ: 12-8 TOP: AACSB MSC: BLOOMS Synthesis 13. Discuss three issues relating to target markets that are unique to nonprofit organizations. Provide
an example of each issue.
APATHETIC OR STRONGLY OPPOSED TARGETS. While private-sector organizations
develop market segments that are most responsive to their offerings, nonprofit organizations must
develop marketing programs aimed at relatively unresponsive targets or people strongly opposed
to receiving their services. This includes targets for services such as vaccinations, family
planning, aid for substance abuse, and psychological counseling.
PRESSURE TO ADOPT UNDIFFERENTIATED SEGMENTATION STRATEGIES. Some
nonprofit organizations fail to recognize the advantages of segmentation, or they use an
undifferentiated approach for apparent economies of scale and low per-capita costs. Other
organizations are required to serve the maximum number of people by targeting the average user.
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This document was uploaded on 09/29/2013.
- Fall '13