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Marketing for Nonprofit Organizations A presentation by Susan E. Hanford Three Alternative Views From a study of 300 college administrators whose enrollments were declining • 60 % - Sales, advertising, and public relations • 28 % - Sales, advertising, or public relations • <10% - Needs assessment, marketing research, product development, promotion and advertising, public relations, pricing, and distribution Definition of Marketing Using the Du Page Symphony Orchestra audience as an example • Identifying the needs and wants of target markets (constituency groups) • Developing products and services for target markets • Developing pricing (transactions) for purchasing products and services • Developing communications about the products and services • Establishing marketing channels for products and services Three Alternative Orientations • A Product Orientation holds that the major task of the organization is to provide a product, which it thinks, would be good for the public. • A Sales Orientation holds that the main task of the organization is to stimulate interest in the public toward the organization's existing products and services. • A Marketing Orientation holds that the main task of the organization is to determine the needs, wants, and interests of target markets and to satisfy them through the design, communication, pricing, and delivery of appropriate and viable products and services. Nonprofit vs. For Profit Differences Provides products/services for a profit • Directed by corporate managers • Board of Directors has passive role • Fewer constituency groups Nonprofit vs. For Profit Marketing • • • • Provides products/services for a profit Board of Directors has active role Fewer managers and employees Ideal application of Constituency Marketing Constituency Marketing Definition: Developing a marketing plan for each of the major constituency groups of the nonprofit organization. Nonprofit Constituency Groups Using the Quad City Wind Ensemble as an example • • • • • • • • • Audience, subscribers Public and private foundations Corporate and individual donors Advertisers Managers and employees Volunteers Media Government Other supporting organizations Relationship Marketing • Emphasizes the long term value of customer relationships rather than immediate sales • Develops a two-way communication between the organization and its customers : – understand and respond to customer needs – increase customer satisfaction with products and services – builds customer loyalty and retention. • Enhanced with the increased use of the Internet technology – – – – • internet search strategies to find potential customers use online social/business media for communication develop websites and online media for public relations develop online tools to manage sales, marketing, and customer service activities. Coordinates all activities which directly interact with current and potential customers Integrated Marketing • Integrates advertising, sales promotion, public relations, and direct marketing activities • Establishes brand identity • Ensures a consistent marketing message • Provides most effective and efficient marketing impact