Thursday 27 September 2007

Non profit marketing

Behind the jargon this seemed to me to be a very astute extract from a wikipedia article about marketing for not for profit organisations.
I'm doing some homework as I prepare a marketing plan for netgain - a training and support programme to help organisations with their ICT planning that scip starts running next month.
The turbulent environment comment seemed very pertinent as funding priorities are announced by capacity builders and the lottery - with no mention of ICT in either.

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Marketing Objectives for non-profit-making organizations

In the case of non-profit organizations the objectives may be less than clear. Keith Blois suggested five main reasons for the differences from `commercial' organizations:[5]

1. Ambiguous Goals [more actors and groups of actors are involved]

2. Lack of Agreement in Means-End Relationships [even where there is consensus on the goal there may be disagreement on how to get there]

3. Environmental Turbulence [non-profit organizations seem to be exposed more to turbulence than commercial ones]

4. Unmeasurable Outputs [unfortunately, by definition, non-profit organizations do not have the classically convenient simplicity of `bottom-line profit']

5. The Effects of Management Intervention are Unknown [the lack of precision caused by factors 1-4 is problem enough, but the `culture' seems to add further barriers to managing these organizations]

Even so, Kotler and Andreasen suggested some possible objectives for such organizations:[6]
1. Surplus Maximization [equivalent to profit maximization]
2. Revenue Maximization [as for profit-making organizations]
3. Usage Maximization [maximizing the numbers of users and their usage]
4. Usage Targeting [matching the capacity available]
5. Full Cost Recovery [breaking even]
6. Partial Cost Recovery [minimizing the subsidy]
7. Budget Maximization [maximizing what is offered]
8. Producer Satisfaction Maximization [satisfying the wants of staff]

Full article and references at http://en.wikipedia.org/wiki/Marketing_plan

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