Transcript PADM 7040 Nonprofit Management

PADM 7040
Nonprofit Management
Andreasen & Kotler
Chapter 10 - Part 2
Pages 273 – 284
Debra Herrmann
Managing Multinational Nonprofits
Nonprofit organizations that are located
in more than one country (worldwide)
are facing challenges and must decide
on their marketing operations.
 Andreason & Kotler list several options
to take.
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Export Department
Multinational (or Multi-Local) Organization
Global Organization
(p. 273)
Managing Multinational Nonprofits
(Continued)
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Export Department
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Multinational (or Multi-Local) Organization
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Operates in numerous countries, each country has its own local management with a
great deal of self-governing; coordination is handled at headquarters.
Global Organization
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Headquartered in a single country such as the US. Marketing experts go from country
to country.
The world is viewed as a single market, develops universal strategies that applies
everywhere. Local managers may adjust programs slightly to meet local needs.
Multinational has been dominate in the early 21st century;
however, as the nonprofit world becomes more global, so will
organizations.
(p. 273)
Multi-Site Organizations
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Marketing through multiple sites in a single country is
another challenge that nonprofit organizations are
facing.
Managers must decide if the control should be
centralized or allow self-governing.
There are two important dimensions a manager must
ask.
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“Should local units be independent
and to what degree” (p. 274)?
Multi-Site Organizations (Continued)
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Local offices of a central organization has two major
challenges.
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“To what extent should marketing capability be built into the local
operation?
What should be the relationship with {headquarters}” (p. 274)?
The “local office” structure raises the acceptance of the
marketing strategies.
Local autonomy can be powerful which leads to more
customer-centered campaigns and programs.
“Headquarters must be sensitive to local needs and wants and
to demonstrate the ways in which the desired behavior
(cooperation) will meet local interests” (p. 275).
Organizational Design
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The way a marketing department (e.g., national
headquarters) is organized internally, as it grows,
can affect how the department is run and what types
of people can be employed.
After marketing has been established, what
organizational structure is best for the organization?
Andreason & Kotler says, “The options typically
found in the private sector as design alternatives can
be adapted to nonprofit marketing with limited
rethinking” (p.275).
Organizational Design (Continued)

These alternatives are:
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Functional Organization
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Product/Service-Centered Organization
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one person is put in charge of a specific product or service
Customer-Centered Organization
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public relations, advertising, and marketing research are kept as
separate functional units within marketing with a single employee
responsible for each unit (initially); as the marketing group grows, each
function will have its own manager
focus on marketing the needs and wants of the each customer group
If not chosen as alternative, a customer perspective must be adopted
Mixed organization (p.275)
Organizational Design (Continued)
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See Figure 10-1 (p. 276) in Andreasen &
Kotler for the Alternative Organizational
Designs/Structures
When choosing one of the three alternative
organizational structure designs, an
organization’s mission, objectives, goals,
experience, and market conditions should be
considered.
Implementing a Customer Orientation
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The marketing manager cannot make an impact on how the
people in the organization treat and act toward customers by
choosing a customer-oriented structure.
It is very important that the marketing manager gradually instills
the proper philosophy to “build up a market-oriented
organization” (p. 279).
Achieving a customer orientation requires the following
measures, which will hopefully produce a market-oriented
organization within three to five years.
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Top Management Support
Effective Organization Design
In-Company Marketing Training
Better Employee Hiring Practices
Rewarding Market-Oriented Employees
Planning System Improvement (p.279-281)
Implementing a Customer Orientation
(Continued)
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Top Management Support
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Effective Organization Design
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To develop a strong marketing orientation, the CEO must believe in it,
understand it, want it, and wins the support of other high-level executives.
Marketing manager must be added in a staff or line position and be
capable of influencing other top managers.
In-Company Marketing Training
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Marketing executive should first introduce marketing to the top corporate
and divisional management at the organization’s headquarters or at a
retreat. Should conduct professional presentations of concept, cases, and
marketing planning exercises.
Then presentations can be made to operations people, financial people,
and others in the organization to help them understand. Presentations
should include market opportunity identification, market segmentation,
market targeting and position, marketing planning and control, pricing,
selling, marketing communication.
Implementing a Customer Orientation
(Continued)
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Better Employee Hiring Practices
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Rewarding Market-Oriented Employees
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Hire caring people.
Require training for new employees emphasizing the importance of
customer satisfaction. Train them on skills in listening and customer
problem solving solutions. Teach them on how to handle complaining &
abusive customers.
Employees who have done an outstanding job of serving customers should
be commended by being acknowledged as employee of the month, etc.
Post certificate for others to view.
Planning System Improvement
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Design and install an organization planning system with good strong
marketing data and analysis (p. 280-281).
Customer-Driven Organizational
Change
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Most large and bureaucratic nonprofit
organizations are resistant to change
because of their success and the fact that
they are very dominant or a monopoly in their
field (p.281).
Customer-driven approaches can ensure
effective organizational change particularly in
large nonprofits whose national offices have
regional divisions as customers.
Customer-Driven Organizational
Change (Continued)
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The American Cancer Society is a good example of
a large nonprofit who was resistant to change.
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Regional and local officials were criticizing the central
operation.
The biggest complaint was that “national” was not
customer-oriented.
A change was made to become customer-driven.
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Materials and training programs were implemented to meet
the needs and likes of the division.
A department could not grow unless it met the customer's
(division) needs.
(p.282)
Bibliography
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Andreasen & Kotler, “Strategic Marketing for
Nonprofit Organizations,” 2003 Prentice
Hall, Sixth edition.