Non-profit

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Summary

Summary

For-profitorganizations marketing strategy involves selling products orservices directly to the customers. organizations domarket their goods and services however, the marketing process isrelatively complicated than that of for-profit. The essay is asummary of a YouTube video Marketing, whichprovides a detailed description of the non-profit marketing strategy.

organizations have to take considerations of certain crucial aspectsof the marketing strategy to become a success. The first component ofa non-profit marketing strategy is branding. According to thenarrator of the video, the mission of the organization is the brand.The mission elaborates the goal and the purpose of the organizationto venture into business. For this case, the mission is what thecompany will sell and advertise to the diversified audiences sincenon-profit organizations cater for different stakeholders. Themission statement of a non-profit organization should be clear,mission-driven, client-focused, and well-articulated because it holdsvalues and services, which entirely form the brand of the company.The brand is a significant component of a non-profit marketingstrategy because it caters for multiple stakeholders. The brandengages with diverse audiences such as board members, communitymembers, and donors among others. The manner in which non-profitorganizations deal with various stakeholders is what makes anon-profit marketing strategy different from a for-profit. Afor-profit marketing strategy involves dealing directly with thecustomers without involving other parties. A non-profit marketingstrategy primarily involves communication and branding of theirservices and products offered to various stakeholders hence, thecustomers are only a part of other stakeholders, which the non-profitorganization markets its products.

Thevideo further indicates that non-profit organization shouldcommunicate their mission and brand effectively to cultivatestakeholder loyalty. The strategy is significant because stakeholdersneed to trust the company and maintain their membership. Since thenon-profit marketing strategy offers more than just a service, itshould value all the needs of the stakeholders. Besides, the processof developing a non-profit marketing plan is similar to that of afor-profit. The non-profit marketing plan involves the four Ps, whichare price, promotion, product, and place. The video provides a simplepie chart that illustrates the four Ps in the marketing mix.Moreover, the video depicts significant factors to consider indeveloping a marketing plan. Before executing the program, factorssuch as the objectives of the business, marketing analysis, coremarketing message or proposition, marketing objectives, plans,implementation timetable, and budget should be considered. Since anon-profit marketing strategy deals with a diversified audience, itis crucial to come up with a stakeholder segmentation. The non-profitorganization should create different kinds of marketing strategies tocater for the various stakeholders under the umbrella of a corestrategy. The primary strategy will help the organization to providefor the employees, government, shareholders, pressure groups, endusers, local communities, clients, environment, and the future.

Thefirst P of the marketing mix is the product. organizationsthat are developing a marketing mix must clearly define the servicethey are going to offer. A precise definition will be guided by theexistence of a well-structured mission statement. The organizationsshould describe the tangible and intangible services. The videostates that the offers provided physically are the real services. Thecase of a homeless shelter is provided as an example where the bedsand meals provided are some of the real services. The narratorfurther exemplifies that in the case of a local symphony, thetangible provided is the sensation of listening to the music. Indefining intangible services using the example of the homelessshelter, the narrator states that the core values and the commitmentto take care of the shelter such that the occupants of the housingreceive respect are some of the intangible services provided by thenon-profit organizations. The local symphony, the intangible servicesrendered is the entertainment value of the music, the sense ofconnection to a particular community, and the pleasure that one getsafter listening to the music. For this case, non-profit marketers aresupposed to understand the hard (tangible) and the Soft (intangible)services offered by the organization. A non-profit organizationshould consider the price for it to have a clear understanding of theservices provided and to develop and cultivate the donors becausethey would at some point request a quote of the prices. There arefour ways that the organization can think about while evaluating thecost of its services, one way is the cost-oriented approach ormarket-based break-even point. Secondly, an organization can employthe competitive-based approach where the company can look at theprice of other homeless shelters in the similar market. Thenon-profit organization can also use a value-based pricing approachby thinking of the perceived value of the product offered such ascollege tuition. The company should consider whether their collegeeducation “is high enough or people will view it as important or ofhigh quality” ( Marketing, 2017). Additionally, somenon-organizations might decide to use a price discrimination policy.The approach considers the ability of individuals to pay for theservices, for instance, non-profit health clinics often charge theirclients based on the capacity to pay.

Theother P that should be considered while developing a marketing mix isthe place. The organization needs to contemplate the place where itwill offer its services to the clients. The homeless shelter can beused as a physical place for an organization to run its activities,while others might consider going online to reach the people andprovide their services on the Internet full time without occupying anoffice. Other organizations might mix the use of brick and mortar andthe virtual space to reach out to the intended audiences effectively.Finally, the company needs to consider the means in which it willreach out and promote its services and products to the customers. Asa result, the organization should be updated with the current marketvariables to understand the needs of the clients. The non-profitorganization needs to study the demographics change of their customerbase in five to ten years. The geography of the location also plays asignificant role in the organization to determine how their clientsare spread geographically to come up with a better approach todelivering their services. Moreover, the company should consider thebehavioral and psychographics of their customer base. The changingexpectation of the clients that the non-profit organization servesshould be considered. Understanding the psychographics will help thecompany in adjusting their programs to meet the changing expectationsof customers. Similarly, the stakeholder’s expectations should beevaluated for the organization to determine the means to promote andmarket their brand to them to satisfy their needs.

Thevideo concludes with a reflection question where the narrator asksthe listener to assume the position of the CEO of a homeless shelter.The audience is required to develop a marketing strategy for theservices offered using the four Ps.

References

Marketing. (2017, March 15). Nonprofitmarketing [Videofile]. Retrieved from https://www.youtube.com/watch?v=FhFOuBcxqJs

Non-Profit

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NON-PROFIT 4

Effectivefinancial management is critical for effective running of anyorganization. In the case of Hull House, issues dealing withfinancing and managerial accounting come into focus. For instance, itwas the responsibility of the board of the organization to diversethe sources of funds for the organization. Besides, the managementought to have insisted in receiving timely managerial accountinginformation, which is necessary for decision-making(Worth, 2013 ).

Despitethe financial challenges facing Hull House, closure of theorganization was not inevitable. Prudent and timely decisions wouldhave saved the organization from collapsing. As the former chiefexecutive officer suggested, Hull House should have entered into apartnership with other organizations immediately it startedexperiencing financial strain. Going into a partnership would havereduced its overhead costs, thus enabling it to survive the harsheconomic time characterized by the lack of funds.

Variousfinancial management principles are relevant to the financial crisisthat Corcoran faced, especially in regards to raising of adequaterevenue (Worth,2013 ).In particular, the management of Corcoran had a poor approach inmanaging its donors. In fact, Corcoran had a communication breakdownwith its donors some suggested they had not received any call fromthe organization for years. As a result, Corcoran was not able tofinance some of its programs.

Problemsof Corcoran related to financial management, policies undertaken bythe organization’s board, and changes in the environment that werebeyond its control. Under financial management, Corcoran had noproper plans for raising sufficient revenues. Similarly, it was not aprudent idea for the board to approve the funding of the plan tobuild a new wing in the face of financial strain. Corcoran also facedchallenges that were beyond its control. For instance, the financialcrisis significantly affected the ability of some of theorganization’s donors to fulfill their pledges.

References

Worth,M. J. (2013 ). NonprofitManagement: Principles and Practice.Thousand Oaks: SAGE Publications.