NFP’s and the Marketing Mix Is Not-For-Profit Legit Business?!

Why Are Non-Profits Important To Study? ‘The reason is simple. Unfettered markets in their current form are not meant to solve social problems and instead may actually exacerbate poverty, disease, pollution, corruption, crime and inequality.’

The Statistics Say…. –161,000 non profits across Canada –9,200 cooperatives - contribute approx 85 billion to Canada’s GDP, with revenues exceeding 112 billion ‘The social economy has economic value that transacts more than 100 billions of revenues, has a workforce of over 100 million full time equivalents, and armies of volunteers who contribute over 2 billion hours annually.’ (The Social Economy, 2010).

The Social Economy! It Already Surrounds Us..

What Are Some Examples of Non-Profits? Free The Children Free The Children Habitat For Humanity Habitat For Humanity Amnesty International Amnesty International Big Brothers, Big Sisters Big Brothers, Big Sisters Rotary International Rotary International Sick Kids Sick Kids Canadian Cancer Society Canadian Cancer Society Humane Society Humane Society MADD MADD PETA PETA –And… the list goes on.. and on… and on…..

So what’s the difference between an NFP and MNC?! Two objectives: social mission and economic value

We’ve allowed ourselves to become programmed in how we think about the term Capitalism Capitalism Free Enterprise Free Enterprise Multinational Corporations Multinational Corporations Down-sizing – outsourcing – globalization Down-sizing – outsourcing – globalization ‘Cut-throat’ – ‘Big Business’ – ‘Bottom Line’ thinking ‘Cut-throat’ – ‘Big Business’ – ‘Bottom Line’ thinking Business Education Programs today Business Education Programs today BUSINESS

The Statistics Say… Capitalism is thriving Businesses continue to grow MNCs are spreading into markets in the developing world B B UUUU TTTT ………….... G G G G llll oooo bbbb aaaa llll i i i i nnnn cccc oooo mmmm eeee d d d d iiii ssss tttt rrrr iiii bbbb uuuu tttt iiii oooo nnnn t t t t eeee llll llll ssss t t t t hhhh eeee s s s s tttt oooo rrrr yyyy :::: 94% of world income – 40% The remaining 60% live on only 6% of world income ½ of the world – less than $2.oo per day One billion live on less than one dollar per day

Okay.. So What’s This NFP All About?! Over-arching goes is to generate something OTHER than profit Over-arching goes is to generate something OTHER than profit Includes a wide variety of activist, civic, religious, public service and public broadcasting organizations that work in the public interest rather than with the goal of making money Includes a wide variety of activist, civic, religious, public service and public broadcasting organizations that work in the public interest rather than with the goal of making money They may operate at the local, provincial, national or international level They may operate at the local, provincial, national or international level Contrary to popular belief they are NOT prohibited from making a profit – they MUST generate profit! Contrary to popular belief they are NOT prohibited from making a profit – they MUST generate profit! The difference is that they cannot use that profit for corporate gain – there are limitations on what they can do with their profits and how they go about making their money The difference is that they cannot use that profit for corporate gain – there are limitations on what they can do with their profits and how they go about making their money

Characteristics of Non For Profits They are Non-Stock, Non-Shareholder Ownership They are Non-Stock, Non-Shareholder Ownership Governance By Members, Directors/Trustees and Officers Governance By Members, Directors/Trustees and Officers Purpose is public service, civic or charitable in nature Purpose is public service, civic or charitable in nature Revenue is applied to furtherance of the purpose Revenue is applied to furtherance of the purpose Directors have ultimate control of the organization Directors have ultimate control of the organization The organization will, for the most part, be exempt from provincial and federal income tax The organization will, for the most part, be exempt from provincial and federal income tax

Why Do NFP’s Need To Market Themselves? They have something they want others to know about! They have something they want others to know about! MAJOR competition for resources! MAJOR competition for resources! Marketing fulfills their mission Marketing fulfills their mission Increased numbers of NFP org’s in today’s society, thus, the need to be more aggressive when seeking public attention Increased numbers of NFP org’s in today’s society, thus, the need to be more aggressive when seeking public attention Shrinking financial support base from government and now must compete for limited $$$ Shrinking financial support base from government and now must compete for limited $$$

Task Working with a partner, select one non profit organization familiar to you and design a Marketing Mix outline for this organization. Include the following: Working with a partner, select one non profit organization familiar to you and design a Marketing Mix outline for this organization. Include the following: –Target Market Strategy –Product Strategy –Placement/Distribution Strategy –Pricing Strategy –Promotional Strategy ** USE your key terms and concepts from this unit to support your answer!

Room numbers The room numbers for this week are: The room numbers for this week are: Tuesday (April 15) : Portable 4 Tuesday (April 15) : Portable 4 Wed (A 16): Room 112 Wed (A 16): Room 112 Thurs (A 17) : Room 228 Thurs (A 17) : Room 228 Tues (April 22) : Room 228 Tues (April 22) : Room 228 Wed (April 23) : Room 228 Wed (April 23) : Room 228

“ We will only really change society when the achievement of social objectives is as central to the running of a business as the achievement of its financial goals.” Rob Greenland, The Social Business 2010

Franck Riboud, Grameen Bank & Groupe Danone Franck Riboud, Grameen Bank & Groupe Danone The world’s very first SOCIAL BUSINESS The world’s very first SOCIAL BUSINESS UNIQUE FEATURES: Investors do not take profit from the business; Investors do not take profit from the business; Profit is re-invested in the business and used for expansion & development – furthering the cause; Profit is re-invested in the business and used for expansion & development – furthering the cause; Yogurt fortified with micro-nutrients ; Yogurt fortified with micro-nutrients ; Ten year plan = 50 + plants, hundreds of distributions jobs & self-degradable packaging. Ten year plan = 50 + plants, hundreds of distributions jobs & self-degradable packaging. Danone: A Case Study In Social Business

Reduce poverty by a unique proximity business model that brings daily healthy nutrition to the low income class. To bring daily health nutrition to low income and nutritionally deprived population of Bangladesh. To alleviate poverty through the implementation of a unique proximity based business model. To contribute in creating independent business and job opportunities in the farming, processing, sales and distribution sectors. To provide easily affordable dairy products developed to fulfill the nutritional needs of children. Mission and Objectives

KIVA!!!! Because Charity Isn’t Always The Answer… Because Charity Isn’t Always The Answer…