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Unformatted text preview: rtunately, there are few “average” users, and most nonprofit organizations benefit from
COMPLEMENTARY POSITIONING. Nonprofit organizations strive to provide services to those
individuals or groups who are not adequately served by private-sector organizations. Thus, the
goal is to complement rather than compete with the efforts of others. For example, a nonprofit
organization would seek to identify underserved market segments (low-income families) and
develop marketing programs that match their needs (low-cost health care or free vaccinations).
KEY: CB&E Model Strategy OBJ: 12-8 TOP: AACSB MSC: BLOOMS Synthesis 14. Discuss the three product-related distinctions between business and nonprofit organizations.
BENEFIT COMPLEXITY. Nonprofit organizations market complex behaviors and ideas, such as
the need to exercise or to stop smoking. The benefits are complex, long term, and intangible.
BENEFIT STRENGTH. The benefit strength of many nonprofit offerings is quite weak or
indirect. Most private-sector service organizations can claim direct, personal benefits.
INVOLVEMENT. Nonprofit organizations market products that elicit a wide range of
involvement levels, from very low involvement (don’t litter) to very high involvement (stop
smoking). Traditional promotional tools may be inadequate to motivate product adoption in either
of these extreme cases. PTS: 1
KEY: CB&E Model Product OBJ: 12-8 TOP: AACSB MSC: BLOOMS Synthesis 15. Discuss the limitations nonprofit marketers face when making promotion decisions and describe
how they overcome these limitations.
Many nonprofit organizations are prohibited from advertising, thus limiting their range of
promotion options. Most federal agencies fall into this category. Other nonprofit organizations do
not have the resources to retain advertising agencies, promotion consultants, or marketing staff
Despite these limitations, nonprofit organizations sometimes have access to professional
volunteers or donated media time or space. Professionals at advertising agencies or market
research firms can donate services. Sales promotion activities that make use of other existing
services or resources can be used. Public service announcements are similar to advertisements,
but the media donate the time or space. Finally, some nonprofit agencies have been successful in
offering forums for people to share experiences, which is an application of peer-to-peer
KEY: CB&E Model Promotion OBJ: 12-8 TOP: AACSB MSC: BLOOMS Synthesis 16. List and describe the five key characteristics that distinguish the pricing decisions of nonprofit
organizations from those of the profit sector.
PRICING OBJECTIVES. Nonprofit organizations are concerned with revenue production but
only to defray costs, not to achieve profits for distribution to stockholders. Income redistribution
takes the form of...
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- Fall '13