Transcript April 14 Non Profit Organization

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
 Habitat For Humanity
 Amnesty International
 Big Brothers, Big Sisters
 Rotary International
 Sick Kids
 Canadian Cancer Society
 Humane Society
 MADD
 PETA
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– 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
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Capitalism
Free Enterprise
Multinational Corporations
Down-sizing – outsourcing – globalization
‘Cut-throat’ – ‘Big Business’ – ‘Bottom Line’ thinking
Business Education Programs today
The Statistics Say…
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Capitalism is thriving
Businesses continue to grow
MNCs are spreading into markets in the developing
world
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BUT…. Global income distribution tells the story:
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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
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Okay.. So What’s This NFP All About?!
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Over-arching goes is to generate something OTHER than profit
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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
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They may operate at the local, provincial, national or international
level
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Contrary to popular belief they are NOT prohibited from making a
profit – they MUST generate profit!
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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
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They are Non-Stock, Non-Shareholder Ownership
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Governance By Members, Directors/Trustees and Officers
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Purpose is public service, civic or charitable in nature
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Revenue is applied to furtherance of the purpose
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Directors have ultimate control of the organization
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The organization will, for the most part, be exempt from
provincial and federal income tax
Why Do NFP’s Need To Market Themselves?
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They have something they want others to know about!
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MAJOR competition for resources!
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Marketing fulfills their mission
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Increased numbers of NFP org’s in today’s society, thus, the
need to be more aggressive when seeking public attention
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Shrinking financial support base from government and now
must compete for limited $$$
Task
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Working with a partner, select one non profit
organization familiar to you and design a Marketing Mix
outline for this organization. Include the following:
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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:
 Tuesday (April 15) : Portable 4
 Wed (A 16): Room 112
 Thurs (A 17) : Room 228
 Tues (April 22) : Room 228
 Wed (April 23) : Room 228
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“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
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Franck Riboud, Grameen Bank & Groupe Danone
The world’s very first SOCIAL BUSINESS
UNIQUE FEATURES:
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Investors do not take profit from the business;
Profit is re-invested in the business and used for expansion &
development – furthering the cause;
Yogurt fortified with micro-nutrients ;
Ten year plan = 50 + plants, hundreds of distributions jobs &
self-degradable packaging.
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.
KIVA!!!!
Because Charity Isn’t Always The
Answer…