Nonprofit organizations

“An investigation into effectiveness different forms of marketing communication tools used by non profit sector organizations”

Chapter 1


1.1 Background

“It has become a generally accepted truth in the non profit world that third-sector organizations must embrace the best practices of the for-profit, business world in order to survive. The mantra “no money, no mission,” is heard throughout the third sector.”

Bill E. Landsberg(2004)

There is no doubt that today nonprofit organizations must adopt all the tricks and techniques of for profit organizations. Kotler and Andresen agreed that the main reason for this is that business environment has become more competitive. Driven partly by cost and competitive pressures and partly by exciting promise marketing has to offer, practitioners in health care, education, and the arts rushed to embrace the new discipline and explore the possibilities (Kotler and Andresen, 1982). It is also understandable that government as well as private donors will chose to support those organizations which will send the best message to consumer.

Research shown that those two types of organizations differ each other in their approach and mission. I would like to focus now on differences between profit and non profit organizations in order to explore the effectiveness of non for profit business.

One of the biggest differences between profit and non profit sector is that non profit organizations must be able to demonstrate trust, integrity and they most show their honest intentions while private sector give very often minimal information about their finances. Non profit organizations can't be judged as financially incompetent and they need to avoid negative perceptions.

The main focus is not only to encourage and motivate people to be identified or to became involved in with the aims of organization but also to help people to solve the problem, or give them the information they need.

Profit organizations provide relatively easy measure of success. Within non profit organization, as the name suggest money profit is not the main goal. Public organizations often have multiple goals that are both vague and conflicting. There is no “bottom line” that it can be used as proxy measure of success (Hannagan, 2008).

Those organizations have a variety of aims and numerous tasks they need to achieve. Them main goals for them is to generate awareness, motivate people to became volunteer, distribute information, raise founds, and allocate grants. All those objectives make the non profit performance more challenging due to the fact that there are wider set of objectives.

Organization in the non profit section, rather then distributing and selling physical product they are oriented to deliver a service.

“In this sector rasing founds is an ongoing critical activity, one that is not directly linked with the service experience. Raising funds for charity requires people or donors to contribute money (…) A further important service orientation of non profit organizations concerns creating positive awareness about the organization's case of activity” (Baines, Fill and Page, 2008).

In the non profit sector customers don't always have a choice while private and profit organizations do realize that they need to fight for customers in order to get their attention and money.

Non profit sector relay manly on range of stakeholders in order to provide finance support to organizations while profit or private sector in order to achieve their business goals is focused on target market and shareholders. Revenue is transformed into profit and shareholders are rewarded with a bonus from earned profit. Non profits are supported mainly by government, tax payers and individual and corporate donations.

1.2 Importance of Study

I my research I want to investigate how use techniques of profit organization marketing are working for non profit businesses. It is obvious that without good advertising campaign and excellent use of different marketing communication tools some of organizations couldn't survive on tough market. In order to continue their existence they need to follow the rules of profit organizations.

The study will also focus on investigating how marketers are dealing with changing people perception and habits.

I would like to find out which form advertising is working the best for non profits. What kinds of techniques are used to make people believe in advertising when it is seen as something unethical? Is this kind of marketing no to manipulative for non profit business? And finally do people still trust?

1.3 Research question

Research title: An investigation into effectiveness of different marketing communication tools used by non profit sector

Research question: Do people believe non profit organization?

1.4 Research objectives

1.5 Limitation of study

1.6 Organization of study

Please be aware that the free essay that you were just reading was not written by us. This essay, and all of the others available to view on the website, were provided to us by students in exchange for services that we offer. This relationship helps our students to get an even better deal while also contributing to the biggest free essay resource in the UK!