1. Marketing for Nonprofit Organizations
A presentation by Susan E. Hanford
Presentation Objectives
Present the purpose and elements of marketing, not a “how to do marketing” (later presentations)
Define a “Marketing Orientation” for a nonprofit organization
Compare marketing for a nonprofit with marketing for a for profit organization
Discuss constituency, relational, and integrated marketing
Offer a opportunity for questions and insights
Get feedback for further presentations.
QUESTION – What is marketing for a nonprofit, or for profit organization?

2. Three Alternative Views
From a study of 300 college administrators whose enrollments were declining
60 % - Sales, advertising, and public relations
28 % - Sales, advertising, or public relations
<10% - Needs assessment, marketing research, product development, promotion and advertising, public relations, pricing, and distribution
Three Alternative Views:
A recent survey of 300 college administrators whose enrollments were declining revealed that 60% viewed marketing as a combination of sales, advertising, and public relations.
The same survey revealed that 28% viewed marketing as only one of sales, advertising, or public relations.
A very small portion viewed marketing as having something to do with needs assessment, marketing research, product development, pricing, and distribution.
Most people view marketing as synonymous with sales and promotions. However, sales and promotions are only a small part of marketing. If appropriate products and services are offered, and pricing, distribution, and promotion is done effectively, selling goods and services is easy.
QUESTION – How many of you are associated with organizations who view marketing as having only the sales, advertising, and public relations functions?

3. Definition of Marketing
Using the Du Page Symphony Orchestra audience as an example
Identifying the needs and wants of target markets
(constituency groups)
Developing products and services for target markets
Developing pricing (transactions) for purchasing products and services
Developing communications about the products and services
Establishing marketing channels for products and services
QUESTION – What is the most effective definition of marketing?
Using the Du Page Symphony Orchestra audience as an example
Identifying the needs and wants of target markets (constituency groups)
Developing products and services for target markets
Developing pricing (transactions) for purchasing products and services
Developing communications about the products and services
Establishing marketing channels for products and services

4. Three Alternative Orientations
A Product Orientation holds that the major task of the organization is to provide a product, which it thinks, would be good for the public.
 A Sales Orientation holds that the main task of the organization is to stimulate interest in the public toward the organization's existing products and services.
A Marketing Orientation holds that the main task of the organization is to determine the needs, wants, and interests of target markets and to satisfy them through the design, communication, pricing, and delivery of appropriate and viable products and services.

5. Nonprofit vs. For Profit Differences
Provides products/services for a profit
Directed by corporate managers
Board of Directors has passive role
Fewer constituency groups
When working with nonprofit boards, I differentiate between marketing management for nonprofit and for-profit organizations.  In many ways, a good nonprofit should act like a business, but there is an important difference.  In managing for-profit organizations, the corporate management team has control over both the long-term and short-term strategies of the organization which are geared primarily to creating, promoting, and distributing products and services to target market(s).  As long as the management team meets the overall mission, is profitable, and abides by legal and ethical business practices, the Board of Directors and shareholders have a more passive role. 

6. Nonprofit vs. For Profit Marketing
Provides products/services for a profit
Board of Directors has active role
Fewer managers and employees
Ideal application of Constituency Marketing

7. Constituency Marketing
Definition: Developing a marketing plan for each of the major constituency groups of the nonprofit organization.
QUESTION – What is Constituency Marketing?
In the case of a nonprofit organization, the Board of Directors and outside constituencies, including government agencies, local governments, chambers of commerce, foundations, advertisers, conductor(s), staff members, players, volunteers, facilities managers, other nonprofit entities and the community-at-large have a more direct effect on the management of the organization.  Therefore, it is wise to develop a strategic integrated marketing plan for each of the organization's primary constituency groups, which I term Constituency Marketing.

8. Nonprofit Constituency Groups
Using the Quad City Wind Ensemble as an example
Audience, subscribers
Public and private foundations
Corporate and individual donors
Advertisers
Managers and employees
Volunteers
Media
Government
Other supporting organizations
QUESTION: What are common nonprofit constituency groups?
Example: The Quad City Wind Ensemble
Audience, subscribers
Public and private foundations
Corporate and individual donors
Advertisers
Managers and employees
Volunteers
Media
Government
Other supporting organizations

9. Relationship Marketing
Emphasizes the long term value of customer relationships rather than immediate sales
Develops a two-way communication between the organization and its customers :
understand and respond to customer needs
increase customer satisfaction with products and services
builds customer loyalty and retention.
Enhanced with the increased use of the Internet technology
internet search strategies to find potential customers
use online social/business media for communication
develop websites and online media for public relations
develop online tools to manage sales, marketing, and customer service activities. 
Coordinates all activities which directly interact with current and potential customers
QUESTION – What is Relationship Marketing ? Relationship marketing is a form of marketing that emphasizes the long term value of customer relationships rather than immediate sales.  This form of marketing develops a two-way communication between the organization and its customers in order to have a better understanding and response to customer needs and wants, increase customer satisfaction with products and services, and encourage development of customer loyalty and retention. Relationship marketing has been greatly enhanced with the increased use of the internet and other technologies.  Organizations can devise internet search strategies to find potential customers, use online social/business media for communication, develop websites and online media for public relations, and develop online tools to manage all customer relationships, including sales, marketing, and customer service activities.  When relationship marketing is fully-implemented, all company-wide business activities which directly interact with current and potential customers are coordinated so that people, processes, and technology work together to increase both the efficiency and effectiveness of the organization.

10. Integrated Marketing
Integrates advertising, sales promotion, public relations, and direct marketing activities
Establishes brand identity
Ensures a consistent marketing message
Provides most effective and efficient marketing impact
QUESTION – What is Integrated Marketing ?
Integrated Marketing is a management concept designed to accomplish the following:
make all aspects of marketing communication such as advertising, sales promotion, public relations, and direct marketing work together in unison, rather than in isolation from one another
establish a brand identity such that all communications present the same brand image
ensures that the marketing message is consistently sent through all media and stages of a promotional campaign
provides the most highly-effective and efficient impact on the largest possible number of people within the target market(s).