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Marketing Final Exam

Economic activity in the united states ans nonprofit

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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. PTS: 1 REF: 194-196 Communication 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? ANS: 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 domestic product. PTS: 1 REF: 196 Communication 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 organizations. ANS: 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 attract Explicitly or implicitly specify objectives Develop, manage, and eliminate programs and services 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 be offered Communicate their availability through brochures, signs, public service announcements, or advertisements PTS: 1 REF: 196-197 Communication 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. ANS: 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. Unfo...
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