Non-Profit Marketing

(noun)

Mission-driven marketing using the organization's core mission as the foundation, and marketing communications as the focus.

Related Terms

Examples of Non-Profit Marketing in the following topics:

  • Societal Role and Nonprofits

    • Non-profit marketing focuses on goals in education, youth development, environmental protection, healthcare, poverty and spirituality.
    • Non-profits are allowed to generate revenue, but must do so in specific ways to maintain their non-profit status.
    • Non-profit marketing is mission-driven marketing using the organization's core mission as the foundation and marketing communications as the focus.
    • Despite their opposing objectives, for-profits and non-profits often come together to implement cause marketing programs.
    • Cause marketing or cause-related marketing activities involve the collaboration of for-profit businesses and non-profit organizations for mutual benefit.

  • Unique Issues in Nonprofit Marketing Strategies

    • Non-profits' marketing strategies enable them to focus on maximizing revenues in order to reach their goals rather than for profits.
    • A non-profit organization's (NPO) business goals tend to focus on the "organizational mission," which is the basis for the organization's governmental status or its non-profit, tax-exempt status.
    • However, non-profits may also focus marketing efforts on optimizing revenue.
    • The primary difference between for-profit and non-profit organizations is that for-profit organizations try to maximize wealth, while non-profit organizations look to provide a greater good to society.
    • Explain how the marketing strategies of non-profits differ from those of for-profit organizations

  • Defining Consumers

    • Any product, good, or service that is developed must have a target market in mind, in order to be effectively marketed and sold.
    • In marketing, there are six types of target markets:
    • Commercial Markets (consisting of service companies, non-manufacturing companies, and not-for-profit organizations)
    • International and Global Markets (several markets distinguished by different needs and different cultures)
    • Now, there is a trend in marketing to individualize the concept of "A Consumer. " Rather than generating broad demographic profiles and psycho-graphic profiles of market segments (which has been the norm), marketers are now starting to engage in personalized marketing, permission marketing, and mass customization.

  • Marginal Analysis

    • At the output level at which marginal revenue equals marginal cost, marginal profit is zero and this quantity is the one that maximizes profit.
    • Since total profit increases when marginal profit is positive and total profit decreases when marginal profit is negative, it must reach a maximum where marginal profit is zero.
    • If the firm is operating in a non-competitive market, changes would have to be made to the diagram.
    • For example, the marginal revenue curve would have a negative gradient, due to the overall market demand curve.
    • In a non-competitive environment, more complicated profit maximization solutions involve the use of game theory.

  • The Importance of Evaluating Marketing Performance

    • Evaluating marketing performance guides future marketing initiatives and helps a company achieve its goals.
    • Marketing performance metrics or key performance indicators (KPIs) are useful not only for marketing professionals, but also for non-marketing executives.
    • From the chief executive officer to the vice president of sales, the senior management team needs marketing KPIs to gauge how marketing activities and spending impact the company's bottom line.
    • As marketers face more and more pressure to show a return on investment (ROI) on their activities, marketing performance metrics help measure the degree to which marketing spending contributes to profits.
    • Establishing marketing performance metrics is integral to helping brands satisfy customers, establishing a clear company image, being proactive in the market, and fully incorporating marketing into the company's overall business strategy.

  • Types of Businesses

    • It can also be a for-profit or non-profit corporation.
    • Cooperative: Often referred to as a "co-op", a cooperative is a limited liability business that can organize as for-profit or not-for-profit.
    • Businesses also vary by industry due to the wide variety of products and service they offer to the market.
    • Information businesses generate profits primarily from the resale of intellectual property.
    • They make a profit by providing sales or distribution services.

  • Nonprice Competition

    • Since price competition can only go so far, firms often engage in non-price competition.
    • Non-price competition is a marketing strategy "in which one firm tries to distinguish its product or service from competing products on the basis of attributes like design and workmanship. "
    • Non-price competition typically involves promotional expenditures (such as advertising, selling staff, the locations convenience, sales promotions, coupons, special orders, or free gifts), marketing research, new product development, and brand management costs.
    • Firms will engage in non-price competition, in spite of the additional costs involved, because it is usually more profitable than selling for a lower price and avoids the risk of a price war.
    • Non-price competition may also promote innovation as firms try to distinguish their product.

  • Profit

    • Increasingly, marketers are expected to generate volumes that meet the target profits of their firm.
    • The purpose of profit-based sales target metrics is to ensure that marketing and sales objectives mesh with profit targets.
    • In , the linear total revenue curve represents the case in which the firm is a perfect competitor in the goods market, and thus cannot set its own selling price.
    • If, contrary to what is assumed in the graph, the firm is not a perfect competitor in the output market, the price to sell the product at can be read off the demand curve at the firm's optimal quantity of output.
    • This linear total revenue curve represents the case in which the firm is a perfect competitor in the goods market, and thus cannot set its own selling price.

  • Other Pricing Strategies

    • Pricing strategies for products or services encompass three main ways to improve profits.
    • Non-price competition means that organizations use strategies other than price to attract customers.
    • Business people prefer to use non-price competition rather than price competition, because it is more difficult to match non-price characteristics.
    • Pricing above competition generally requires a clear advantage on some non-price element of the marketing mix.
    • By controlling costs and reducing services, these firms are able to earn an acceptable profit, even though profit per unit is usually less.

  • Ansoff Opportunity Matrix

    • Marketing penetration - This growth strategy uses current products and current markets with the goal to increase market share.
    • Other ways include attracting non-users of your product or convincing current clients to use more of your product.
    • Market development targets non-buying customers in currently targeted segments.
    • Before developing a new market, companies should think about the following: Is it profitable?
    • Diversification seeks to increase profitability through greater sales volume obtained from new products and new markets.