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Marketing of non-profit organizations

1. The essence of marketing.
In the literature there are many definitions of marketing. Christopher Kowalsky – “Pozycjonowanie stron” – seomaniac.co.uk – argues that “marketing is a system of success in the market due to the orientation” on customers, constant research and study of their needs, the production of goods to better meet existing and agitated needs and deliver products to the customers together with information and advertising at the right time in the right places and at reasonable prices” .
Westwood, in turn, believes that “marketing is the process uniting possibilities of the enterprise and customer requirements”:

  • the consumer gets a product that satisfies his needs,
  • the company receives payment for its products and profits.

Marketing is also understood as “a new concept of management focused on the markets”.
Also called “integrated system of tools and actions related to the exploration and development of the market based on market rules of conduct”.

Modern marketing orientation involves the study of the needs and preferences of customers, and then such features of the product or services that highly satisfy the user.  Enterprises, public institutions, the so-called consumers, large corporate and non-profit organizations operating in accordance with the marketing concept needs to answer the following questions:

  1. What are the needs of consumers and which of them can be implemented by the company?
  2. What products satisfy the needs of consumers and whether the company can offer expected products?
  3. How the products should be delivered to the buyer, and in what conditions should to sell them?
  4. At what price should products be sold?
  5. How a company should report its proposed products?

2. The types of non-profit organizations.
Marketing is a universal concept that can be usefully applied also in organizations working in the field of social and public services. Called the Project “Center for Social Economy” co-financed by the European Union under the European Social Fund.

Because of the form of ownership can work in the public sector, private or on the border of these sectors.
Depending on the organizational form can be managed by the Board of Directors, professional or social Council.
Taking into account the source of funding, these organizations can act on the basis of subsidies from the budgets of Central and local, grant, private capital, revenue from the management of their own economic activities and fees from the customers of the organization.
The subject of the marketing activities of these organizations may be: service, people, ideas and organizations.
According to the criterion of the nature of relationships with clients and investors, we can distinguish non-profit organizations:
1. engaged in commercial activities, providing services to different degrees of payment
2. the overall benefits are funded mainly from membership fees,
3. charity, is funded by the founders.

Distinctive features of nonprofit organizations are:

  • diversification of counterparties, as a rule, sponsors and officials (customers),
  • the multiplicity of objectives, with a lesser degree of certainty than companies,
  • offer intangible benefits,
  • stronger public pressure (because of the way funding),
  • combined management of employment of administrative staff and professionals associated with the idea of functioning of the organization (e.g., doctors, artists, scientists).

From the point of view of interest a result of the activities of these organizations we can distinguish four categories of consumers:

  • customers of services, individual or collective,
  • supervisors, indirectly managing these organizations, often members of Supervisory boards,
  • which are important for the success of the organization,
  • audience, that is the active part of society, contributing to the development of your organization, for example, the founders and supporters
  • a society that uses the activities of these organizations in fact receive effects
    external actions of these organizations.

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