We now see the techniques and principles of marketing applied to almost all organisations and, in fact, recent governments have encouraged this by introducing market mechanisms into most aspects of public services. This has been widely applied to the education sector; so schools and universities now develop specialist services to provide more choice to consumers, to not-for-profit (NFP) businesses, from traditional charities, who need to understand their donors and position themselves to meet their needs; to local voluntary groups, Scouts, Cubs, Youth Groups, without formal charitable status. NFP businesses operate in both the public and private sector, just as commercially oriented businesses do to,
so what are some basic differences;
. Combination of goals, i.e., raise £250,000 from government grants, increase client usage, find cure for disease, change public attitudes, and raise £750,000 from private investors. Goals also include number of clients to be served, amount of service rendered and quality of service provided - Social marketing - Pricing may be fixed (Zoo) or variable (fundraising), also significant is the opportunity cost of volunteers - May rely on infrequent fundraising efforts to generate funds as opposed to day to day TeVenuestream - Successful program may lose money if goods are provided at less than cost - Objectives can be complex since successor failure cannot be measured in financial terms . Usually three constituents (three distinct target markets)-Clients, Donors and Volunteers, need to develop a marketing mix for each target market . Many times, beneficiaries are not the contributors and vice versa. The owner is not the beneficiary, as in business marketing - May need to serve target market that is unprofitable to serve, e.g. Postal service . Legal advantages, tax deductible contributions, exemptions from sales and real estate taxes, reduced postal rates. - Primarily ideas and services as opposed to goods. Need to define what is being provided, i.e. vocational training health services, nutritional assistance and community development. - Very flat channels, non-business marketer to client. . Rely on personal selling (volunteer recruiting) and advertising sponsorship, Public service announcilents