Non-Profit Organisations
- 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.
- Multiple Stakeholders
- 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
- Public Sector
- 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
- Characteristics
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