Chapter 17 - Not-for-profit & Social Marketing

Question 1

What are the four key characteristics of Not-for-Profit organisations?

Answer 1

1. Multiple stakeholders
2. Multiple objectives
3. Orientation
4. Customers’ perceptions

Question 2

What does multiple stakeholders imply?

Answer 2

Since their customers seldom pay the full costs incurred, many non-profits rely on stakeholders to finance operations. It is important to determine which stakeholders have the most interest and power to affect performance. The stakeholder mapping matrix identifies four groups:

• Group A: Key stakeholders with high level of interest and power. Need to be continuously engaged. Can be funding bodies or powerful regulators.
• Group B: High interest but low levels of power, such as individual donors to charities. They should be informed about activities to maintain their interest.
• Group C: Organizations with high power but low interest. It is important to increase information flow to these to increase interest so they can exert power in the non-profit’s interest, or keep them satisfied if they intend to use their power against the organization.
• Group D: the relationship with stakeholders who have little power or interest should be either disregarded or revived.

Question 3

What does Multiple objectives imply?

Answer 3

Profit is not the overriding goal, but there are multiples sets of tasks to achieve (generate awareness, motivating volunteers, lobbying for regulatory changes). Performance measurement can be difficult because of many objectives.

Question 4

What does Orientation imply?

Answer 4

As a general rule, non-profits deliver a service. The stronger the market orientation, the stronger the organization’s market performance. The principal focus is to motivate people to get involved and identify with the organization’s aims, rather than just being a customer.

Question 5

What does Customers’ perceptions imply?

Answer 5

Not-for-profit beneficiary customers do not always have a choice, since donors are free to give money to which charity they want or to not give at all. In reality, where there is only one effectively single source, pressure to deliver well can be based on an individual’s sense of duty and integrity, rather than formal organizational service policy/training.