Marketing Final Exam

Is to complement rather than compete with the efforts

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Unformatted text preview: rtunately, there are few “average” users, and most nonprofit organizations benefit from differentiated strategies. 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). PTS: 1 REF: 197 Communication 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. ANS: 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 REF: 197-198 Communication 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. ANS: 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 members. 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 communications. PTS: 1 REF: 198 Communication 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. ANS: 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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