NFP’s and the NFP’s and the Marketing MixMarketing Mix

Is Not-For-Profit Legit Is Not-For-Profit Legit Business?!Business?!

Why Are Non-Profits Important To Study?Why Are Non-Profits Important To Study?

‘‘The reason is simple. Unfettered markets in The reason is simple. Unfettered markets in their current form are not meant to solve their current form are not meant to solve social problems and instead may actually social problems and instead may actually exacerbate poverty, disease, pollution, exacerbate poverty, disease, pollution, corruption, crime and inequality.’corruption, crime and inequality.’

The Statistics Say….The Statistics Say….

– 161,000 non profits across Canada161,000 non profits across Canada

– 9,200 cooperatives - contribute approx 85 billion to 9,200 cooperatives - contribute approx 85 billion to Canada’s GDP, with revenues exceeding 112 billionCanada’s GDP, with revenues exceeding 112 billion

‘‘The social economy has economic value that The social economy has economic value that transacts more than 100 billions of revenues, transacts more than 100 billions of revenues, has a workforce of over 100 million full time has a workforce of over 100 million full time equivalents, and armies of volunteers who equivalents, and armies of volunteers who

contribute over 2 billion hours annually.’ (The contribute over 2 billion hours annually.’ (The Social Economy, 2010).Social Economy, 2010).

The Social Economy! The Social Economy! It Already Surrounds Us..It Already Surrounds Us..

What Are Some Examples of Non-Profits?What Are Some Examples of Non-Profits?

Free The ChildrenFree The Children Habitat For HumanityHabitat For Humanity Amnesty InternationalAmnesty International Big Brothers, Big SistersBig Brothers, Big Sisters Rotary InternationalRotary International Sick KidsSick Kids Canadian Cancer SocietyCanadian Cancer Society Humane SocietyHumane Society MADDMADD PETAPETA

– And… the list goes on.. and on… and on…..And… the list goes on.. and on… and on…..

So what’s the difference between anSo what’s the difference between an NFP and MNC?! NFP and MNC?!

Two objectives: social mission and Two objectives: social mission and economic valueeconomic value

We’ve allowed ourselves to become We’ve allowed ourselves to become programmed in how we think about the termprogrammed in how we think about the term

CapitalismCapitalism Free EnterpriseFree Enterprise Multinational CorporationsMultinational Corporations Down-sizing – outsourcing – globalizationDown-sizing – outsourcing – globalization ‘‘Cut-throat’ – ‘Big Business’ – ‘Bottom Line’ Cut-throat’ – ‘Big Business’ – ‘Bottom Line’

thinkingthinking Business Education Programs todayBusiness Education Programs today

BUSINESS

The Statistics Say…The Statistics Say…

Capitalism is thrivingCapitalism is thriving Businesses continue to growBusinesses continue to grow MNCs are spreading into markets in the MNCs are spreading into markets in the

developing worlddeveloping world

BUT…. Global income distribution tells the story:

94% of world income – 40%94% of world income – 40% The remaining 60% live on only 6% of world The remaining 60% live on only 6% of world

incomeincome ½ of the world – less than $2.oo per day½ of the world – less than $2.oo per day One billion live on less than one dollar per dayOne billion live on less than one dollar per day

Okay.. So What’s This NFP All About?!Okay.. So What’s This NFP All About?!

Over-arching goes is to generate something OTHER than profitOver-arching goes is to generate something OTHER than profit

Includes a wide variety of activist, civic, religious, public service Includes a wide variety of activist, civic, religious, public service and public broadcasting organizations that work in the public and public broadcasting organizations that work in the public interest rather than with the goal of making moneyinterest rather than with the goal of making money

They may operate at the local, provincial, national or international They may operate at the local, provincial, national or international levellevel

Contrary to popular belief they are NOT prohibited from making a Contrary to popular belief they are NOT prohibited from making a profit – they MUST generate profit!profit – they MUST generate profit!

The difference is that they cannot use that profit for corporate The difference is that they cannot use that profit for corporate gain – there are limitations on what they can do with their profits gain – there are limitations on what they can do with their profits and how they go about making their moneyand how they go about making their money

Characteristics of Non For ProfitsCharacteristics of Non For Profits

They are Non-Stock, Non-Shareholder OwnershipThey are Non-Stock, Non-Shareholder Ownership

Governance By Members, Directors/Trustees and OfficersGovernance By Members, Directors/Trustees and Officers

Purpose is public service, civic or charitable in naturePurpose is public service, civic or charitable in nature

Revenue is applied to furtherance of the purposeRevenue is applied to furtherance of the purpose

Directors have ultimate control of the organizationDirectors have ultimate control of the organization

The organization will, for the most part, be exempt from The organization will, for the most part, be exempt from provincial and federal income taxprovincial and federal income tax

Why Do NFP’s Need To Market Themselves?Why Do NFP’s Need To Market Themselves?

They have something they want others to know about!They have something they want others to know about!

MAJOR competition for resources!MAJOR competition for resources!

Marketing fulfills their missionMarketing fulfills their mission

Increased numbers of NFP org’s in today’s society, thus, the Increased numbers of NFP org’s in today’s society, thus, the need to be more aggressive when seeking public attentionneed to be more aggressive when seeking public attention

Shrinking financial support base from government and now Shrinking financial support base from government and now must compete for limited $$$must compete for limited $$$

TaskTask Working with a partner, select one non profit Working with a partner, select one non profit

organization familiar to you and design a organization familiar to you and design a Marketing Mix outline for this organization. Marketing Mix outline for this organization. Include the following:Include the following:

– Target Market StrategyTarget Market Strategy– Product StrategyProduct Strategy– Placement/Distribution StrategyPlacement/Distribution Strategy– Pricing StrategyPricing Strategy– Promotional StrategyPromotional Strategy

** USE your key terms and concepts from this unit to ** USE your key terms and concepts from this unit to support your answer!support your answer!

Room numbersRoom numbers

The room numbers for this week are: The room numbers for this week are: Tuesday (April 15) : Portable 4Tuesday (April 15) : Portable 4 Wed (A 16): Room 112Wed (A 16): Room 112 Thurs (A 17) : Room 228Thurs (A 17) : Room 228 Tues (April 22) : Room 228Tues (April 22) : Room 228 Wed (April 23) : Room 228Wed (April 23) : Room 228

“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

Franck Riboud, Grameen Bank & Groupe DanoneFranck Riboud, Grameen Bank & Groupe Danone The world’s very first SOCIAL BUSINESSThe world’s very first SOCIAL BUSINESS

UNIQUE FEATURES:UNIQUE FEATURES:

Investors do not take profit from the business;Investors do not take profit from the business; Profit is re-invested in the business and used for expansion Profit is re-invested in the business and used for expansion

& development – furthering the cause;& development – furthering the cause; Yogurt fortified with micro-nutrients ;Yogurt fortified with micro-nutrients ; Ten year plan = 50 + plants, hundreds of distributions jobs Ten year plan = 50 + plants, hundreds of distributions jobs

& self-degradable packaging.& self-degradable packaging.

Danone: A Case Study In Social

Business

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.

Mission and Objectives

KIVA!!!!KIVA!!!!

Because Charity Isn’t Always The Answer…