Not-for-Profit Marketing

Non-for-Profit organizations encounter a special set of characteristics that influence their marketing activities. Like profit making firms, not-for-profit organizations may market tangible goods and/or intangible services. One important distinction exists between not-for-profit organizations and profit oriented companies. Profit-seeking businesses tend to focus their marketing on just one public—their customers. Not-for-profit organizations, however, must often market to multiple publics, which complicates decision-making regarding the correct markets to target. Many deal with at least two major publics—their clients and their sponsors—and often many other publics, as well. Political candidates, for example, target both voters and campaign contributors. A college targets prospective students as clients of its marketing program, but it also markets to current students, parents of students, alumni, faculty, staff, local businesses, and local government agencies.

A second distinguishing characteristic of not-for-profit marketing is that a customer or service user may wield less control over the organization’s destiny than would be true for customers of a profit-seeking firm. A government employee may be  far more concerned with the opinion of a member of the legislature’s appropriations committee than with that of a service user. Not-for-profit organizations also often possess some degree of monopoly power in a given geographic area.

Perhaps the most commonly noted feature of the non-profit-organization is its lack of a bottom line—business jargon referring to the overall profitability measure of performance. Profit-seeking firms measure profitability in terms of sales and revenues. While not-for-profit organizations may attempt to maximize their return from specific services, they usually substitute less exact goals, such as service-level standards, for overall evaluation criteria. As a result, it is often difficult to set marketing objectives that are aligned specifically with overall organizational goals.

A typical aspect of a non-for-profit organization is the lack of a clear organizational structure. Not-for-profit organizations often respond to constituencies that they serve, but these usually are less exact than, for example, the stockholders of a profit-oriented corporation. Not-for-profit organizations often have multiple organizational structures.

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Just about Culture

Culture is a) a pattern of basic assumptions, b) invented, discovered, or developed by a given group, c) as it learns to cope with its problems of external adaptation and internal integration, d) that has worked well enough to be considered valid and, therefore, e) is to be taught to new members as f) the correct way to perceive, think, and feel in relation to these problems.

As a concept borrowed by organizational theorists from anthropology, culture can also be viewed as shared meanings or understandings that are largely tacit and unique to group members. It draws attention to facets of organizational life previously unattended to, and through shared interpretations it focuses action.

Managers use culture in a variety of ways. It can, for example, set the stage for the implementation of an organization’s business strategy. Culture can also prescribe acceptable ways for managers to interact with external constituencies such as shareholders, the government, or customers. Staffing decisions and performance criteria can flow from the organization’s culture. It can also guide the nature of acceptable interpersonal relationships within the company and the selection of an appropriate management style. It also has significance for organizational effectiveness: The culture’s strength and consistency, emphasis on employee involvement in decision making, facilitation of corporate adaptability to organizational change, and clarity of mission are key predictors of organizational effectiveness. Currently managers in many companies view the organizational culture as supporting team-based efforts.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact, Line of Sight

21st Century Leadership

The model of leadership that was relevant yesterday is no longer apt today for dealing with complex problems of 21st century. Leadership today rests in individuals who must be capable of inspiring and influencing others to solve problems and achieve goals. A new model of leadership is based on bottom-up transformation fueled by shared power. The organization of 21st Century expresses the fluid, distributed, and action-oriented leadership. My Consultancy–Asif J. Mir – Management Consultant–transforms organizations, makes them relevant, and suggests solutions for succes. For details please contact Asif J. Mir