Non-Profit Organisations

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  • Created by: Sess
  • Created on: 11-05-15 06:23
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  • Non-Profit Organisations
    • Characteristics
      • Multiple Stakeholders
        • NPOs have consumers that dont necessarily pay the full cost of their services
        • The recipient and the income generator are not the same like in for-profit businesses
        • The public, government and corporate donors (or national lottery) need to be considered for resource attraction
        • The clients or concerns of the organisation need to be considered for a resource allocation POV
        • Great Orman Street Hospital is a childrens hospital raising 150m for a new hospital via employees doing marathons/ 3 peaks and help from NHS etc. It must balance all this with continuing to provide top healthcare to children.
      • Customer Perceptions
        • Customers have less choice e.g. you receive the NHS treatment that you receive.
        • You must pay the minimum donation or set price etc.
      • Transparency
        • where public  money is concerned, there is greater interest in where it actually goes.
        • An NPOs activities must be transparent and produce results.
        • Greenpeace prides itself on its transparency, uploading full cost reports every year. it never takes corporate money
      • Multiple Objectives
        • Rather than just generation of profit, NPOs have multiple objectives
        • These can be: generating revenue or solving a societal problem eg poverty or expanding geographical coverage
        • e.g. A charity may have short term goals and long term goals and different goals to get there (Freshly Ground Sounds)
      • Orientation
        • NPOs usually have a more service orientation than physical goods
        • They are usually out to raise awareness about a cause and to educate people on how to help themselves.
        • Donors are not benefitting from the service like for-profit businesses, therefore marketing orientation needs to be targeted towards donors supporting ethos of the charity.
    • Types
      • Public Sector
        • e.g. Rashid Hospital
        • Hospitals,
        • Libraries
        • Universities
      • Social Enterprises
        • A business whose surplus is invested wholly back into the community.
        • e.g. Welsh Water, Jamie Oliver's 15.
        • Quangos
          • Non-departmental government (unseen government)
          • E.g. The British Council
          • They address market failure
      • Private Sector
        • Private schools or hospitals
        • Charities
    • Cause Related Marketing
      • A private firm and a NPO working together for mutual benefit
      • Adkins 1995
      • An effective way to build brands and reinforce them positively
      • e.g. Box Tops for Books
    • Marketing Implications
      • NPOs usually have a larger product portfolio
      • Publicity is hugely useful for generating funds for a charity
        • This can occur through association with high profile corporations
      • Pricing
        • The recipients needs come before the ability to pay
      • The government is a monopolist provider regardless of demands
        • So most Charities are Public Private Partnerships

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