MARKETING

Marketing Communication Strategies in Non-profit Organisations



Table of Contents

Introduction3

The adoption of marketing by non-profit organizations6

National differences in non-profit environments8

Case Analysis12

Methodology12

Case Results14

Sample characteristics14

Marketing philosophies of non-profits17

Training of marketing staff22

Differences across countries23

Case Conclusions26

References30

Appendices37

Marketing Communication Strategies in Non-profit Organisations

Introduction

Non-profit organizations have started to adopt business-like techniques (Goerke, 2003) used in the for-profit sector as they are becoming increasingly confronted with market pressures typical of for-profit organizations, like competition for funding and the need to earn money to fulfil their mission (Andreasen and Kotler, 2003; Alexander and Weiner, 1998; Dolnicar et al., 2008). These techniques and approaches have been recognized as important to non-profits by the academic field (Gonzalez et al., 2002); one in particular is especially important - the marketing concept - which advocates an understanding of the customer (Day, 1994). It appears, however, that the competitive advantages that could be gained from using the full portfolio of the marketing toolbox are not harvested as successfully as they could be (Bruce, 1995). Instead of embracing the marketing concept and beginning the marketing process with the customer and investigating what the market actually needs and wants (Gonzalez et al., 2002), non-profit organizations have an “organization-centered” marketing mindset and may falsely believe that their product or service is needed by the market (Andreasen and Kotler, 2003). A number of other researchers agree with this viewpoint in emphasizing the importance of market orientation for the non-profit sector (Kara et al., 2004; Macedo and Pinho, 2006; Padanyi and Gainer, 2004; Sargeant et al., 2002).

The first research aim of this case study is to test whether there is empirical support for the call for greater market orientation through a “customer-centered” mindset and to gain detailed understanding of the nature of marketing operations undertaken by non-profit organizations internationally. The second aim of this case study is to compare whether differences in marketing operations exist across countries on different continents, which differ significantly with respect to the environment in which non-profit organizations operate. Differences especially in the competitiveness of markets (the number of non-profit organizations per capita of the population) can be expected to have a significant impact on the extent to which the marketing toolbox is harvested to survive in the marketplace and gain competitive advantage. (Patrick, 2007)

Although a significant amount of research has been undertaken in the area of non-profit marketing, there is a lack of agreement regarding the use of key terms. The non-profit “customer” is one of these terms. Bruce (1995, p. 77) classified non-profit customers into two groups:

End customers who may include “clients, patrons, patients, donors, volunteer workers, advocates, trustees, committee members, local government inspectors, the local community”.

Intermediary customers who are involved in the process but are not the prime customer group (for example, government agencies who refer patients to non-profit organizations).

However, Bruce preferred the term “beneficiary” to represent customers from non-profits as the word signifies those who receive a benefit from non-profits; beneficiary is also the preferred term of Gonzalez et al. (2002). Alternatively, others address the customer/client issue by stating there is a difference ...