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.

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 visit www.asifjmir.com, and my Lectures.

Promoting Sales


First stage marketing strategies should focus on sales promotions that will attract immediate customers and selling methods that will ensure repeat business. First stage companies can also benefit from sales and promotion activities, but with a focus on short term rather than long term benefits. Ideas include:

  1. Invite a local newspaper to write an article on some unique aspect of the company.
  2. Invite television reporters to cover a special event sponsored by the company (fund raising drive, a banquet honoring an employee, or the introduction of snappy new product).
  3. Start a charity book collection drive at local schools.
  4. Sponsor a young people’s athletic team.
  5. Sponsor a civic band or float in a local parade.
  6. Donate materials, space, or services to community theater groups.
  7. Sponsor a paper, glass, aluminum, or plastic recycling drive.
  8. Get behind a social cause.
  9. Donate used computers, office equipment, etc., to local schools, hospitals, or welfare agencies.

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 visit www.asifjmir.com, and my Lectures.

Mass Selling


Mass selling is communicating with large numbers of customers at the same time. The main form of mass selling is advertising—any paid form of non-personal presentation of ideas, goods, or services by an identified sponsor. Publicity—any unpaid form of non-personal presentation of ideas, goods, or services—is another important form of mass selling.

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 visit www.asifjmir.com, and my Lectures.

 

Public Relations (PR)


Public Relations is the management function that evaluates public attitudes, identifies the policies and procedures of an individual or an organization with the public interest, and executes a program of action to earn public understanding and acceptance. In other words a good public relations program has three steps:

  1. Listen to the public: Public relations starts with good marketing research (evaluates public attitudes).
  2. Develops policies and procedures that are in the public interest: One does not earn understanding by bombarding the public with propaganda; one earns understanding by having programs and practices in the public interest.
  3. Inform people of the fact that you are being responsive to their needs: It is not enough to simply have programs that are in the public interest. You have to tell the public about those programs so that they know you are being responsive.

Publicity is one of the major functions of the public relations department. Publicity is any information about an individual, a product, or an organization that is distributed to the public through the media and that is not paid for, or controlled by, the sponsor.

Other activities include:

  • Establishing contact with civic groups, consumer organizations, and other concerned citizens to learn their views of the organization, to answer their questions, and to provide information (or education).
  • Opening lines of communication with customers, suppliers, distributors, retailers, stockholders, government agencies, educators, and community leaders.
  • Conducting studies to find the economic, environmental, and social consequences of organizational practices and to learn how to make a more positive contribution to customers, stakeholders, and society.
  • Providing any assistance needed to adjust the goals, policies, practices, personnel policies, products, and programs of the organization to meet the needs of changing markets.
  • Assisting all members of the firm in developing effective programs of consumer information and education.
  • Sending speakers to schools, clubs, and other such groups to maintain an open dialogue with students and other socially active members of society.
  • Creating incentives for employees to participate in public-affairs activities such as raising funds for charitable groups.
  • Answering consumer and other complaints promptly and correcting whatever it was that caused the complint.
  • Training employees or volunteers to provide prompt, friendly, courteous, and helpful service to anyone who contacts the organization in person, by phone, or written correspondence.
  • Demonstrating to society the organization is listening, reacting, adjusting, and progressing in its attempt to satisfy its diverse publics.
  • Opening two-way communications with employees to generate favorable employee opinion and to motivate employees to speak well of the organization to others.

This is an incomplete description of all the activities and responsibilities of the PR people, but it at least gives some feeling for what they do.

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 visit www.asifjmir.com, and my Lectures.

 

Sources of Innovation


The environment constitutes a very important source of innovations. Since tacit technological and market knowledge is best transferred by personal interaction, local environments that are good sources of innovation can make it easier for local firms to recognize the potential of an innovation. Take the presence of related industries. Being close to the supplier or complementary innovators increase the chances of a firm’s being able to pick up useful ideas from them.

Being close to universities or other research institutions helps in two ways. First, these institutions train personnel that can go on to work for firms or found their own companies. The knowledge that they acquire gives them the absorptive capacity to be able to assimilate new ideas from competitors and related industries. Second, scientific publications from the basic research often act as catalyst for investment by firms in applied research.

Finally, governments play a critical role in the ability of firms to recognize the potential of innovations. Their role can be direct or indirect. The direct role may be in the sponsoring of research. The indirect role is in regulation and taxation: lower capital gains taxes or other regulations that allow firms to keep more of what they make can allow them to spend more on innovation.

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 visit www.asifjmir.com, and my Lectures.

When Project Financing can be Beneficial?


Project Financing has long been used to finance large natural resource projects involving several parties. A large project financing can, by facilitating a large-scale capital project, bring significant public benefits.

Given the complex decisions that have to be made in planning the financing of a major project, it is essential that the project sponsor(s) develop a thorough understanding of the proposed project—its risks, estimated investment requirements, and projected returns. Most importantly, the project sponsor(s) need to determine at the outset whether project financing is the most cost-effective method of financing the project.

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 visit www.asifjmir.com, Line of Sight

Barriers to Team Progress


  • Insufficient training. Teams cannot be expected to perform unless they are trained in problem-solving techniques, group dynamics, and communication skills.
  • Incompatible rewards and compensation. In general, organizations make little effort to reward team performance. Because of a strong focus on individual rewards it is difficult for individuals to buy into the team concept. Similarly, performance appraisals do not accept input from peers or team members.
  • First-line supervisor resistance. Supervisors are reluctant to give up power, confident that they can do the work better and faster, are concerned about job security, and are ultimately held responsible.
  • Lack of planning. A lack of common direction or alignment on the use of collaborative efforts, internal competition, redundancy, and fragmented work processes all prevent team progress.
  • Lack of management support. Management must provide the resources and “buy into” the quality council/sponsor system.
  • Access to information systems. Teams need access to organizational information such as business performance, competitive performance, financial data, and so forth.
  • Lack of union support. Organizations need union support for the team to be successful.
  • Project scope too large. The team and organization are not clear on what is reasonable, or management is abdicating its responsibility to guide the team.
  • Project objectives are not significant. Management has not defined what role the team will play in the organization.
  • No clear measures of success. The team is not clear about its charter and goals.
  • No time to do improvement work. Values and beliefs of the organization are not compatible with the team’s work. Individual departmental politics interfere with the team’s progress. Management has not given the team proper resources.
  • Team is too large. The organization lacks methods for involving people in ways other than team membership.
  • Trapped in groupthink. Team members all have a mind-set that no actions are taken until everyone agrees with every decision.

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 visit www.asifjmir.com, Line of Sight

Release of Free Cash Flow


The project entry typically has a finite life. Its dividend policy is usually specified contractually at the time any outside equity financing is arranged. Cash flow not needed to cover operating expenses, pay debt service, or make capital improvements—so-called free cash flow—must normally be distributed to the project’s equity investors. Thus, the equity investors, rather than professional managers, get to decide how the project’s free cash flow will be reinvested.

 When project is financed on a company’s general credit, the project’s assets become part of the company’s asset portfolio. Free cash flow from the project augments the company’s internal cash resources. This free cash flow is retained or distributed to the company’s shareholders at the discretion of the company’s board of directors.

 Project financing eliminates the element of discretion. Investors may prefer to have the project company distribute the free cash flow, allowing them to invest it as they choose. Reducing the risk that the free cash flow might be retained and invested without the project’s equity investors’ approval should reduce the cost of equity capital to the project.

 The sponsor is not necessarily placed at a disadvantage under this arrangement. If the sponsor is considering additional projects that it believes are profitable, it can negotiate funding for these projects with outside equity investors. If they agree to fund any of these additional investments within the project entity, the dividend requirement can be waived by mutual agreement and the funds invested accordingly.

 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 visit www.asifjmir.com, Line of Sight

Strategic Planning Process


The process is orderly, deliberative, and participative and has following ten steps:

  1. Initiate and agree upon a strategic planning process.
  2. Identify organizational mandates.
  3. Clarify organizational mission and values.
  4. Assess the organization’s external and internal environments to identify strengths, weaknesses, opportunities, and threats.
  5. Identify the strategic issues facing the organization.
  6. Formulate strategies to manage these issues.
  7. Review and adopt the strategic plan.
  8. Establish an effective organizational vision.
  9. Develop an effective implementation process.
  10. Reassess strategies and the strategic planning process

These steps should lead to actions, results, and evaluation. It must be emphasized that action, results, and evaluative judgments should emerge at each step in the process. In other words, implementation and evaluation should not wait until the “end” of the process but should be an integral and ongoing part of it.

The process is applicable to public and nonprofit organizations, boundary-crossing services, inter-organizational networks, and communities. The only general requirements are a dominant coalition that is willing to sponsor and follow the process and a process champion who is willing to push it.

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 visit www.asifjmir.com, Line of Sight

Structure, Roles, and Rules


What sort of structure would help the team function innovatively? The purpose of any structure is to make sure that certain essential tasks, especially repetitive tasks, get done. Structure need not be incompatible with creativity if it realeases time and energy for creative work rather than blocking creativity with excessive rules, specialization, centralization, etc. What, therefore, needs to be done is to make an inventory of tasks that must be performed more or less repitively, and allocate these tasks to individuals within or outside the team.

 However, the roles of team members should not be defined only in terms of these tasks;  there are only minimum elements of their roles. It is important to define roles broadly and not too strictly. Some ambiguity helps interaction and role clarification, not by the leader but by the situation. Indeed, it heps to have versatile team members, i.e., persons who can double for others should the need arise. Periodic interchange of roles within the team can help develop this verstality. Researchers have indicated some specific roles in innovative teams beyond those for effective teams. The creative scientist/engineer/idea man is one role. The entrepreneur (vis-à-vis the outer world) and the intrapreneur (vis-à-vis the team members) are further roles. The entrepreneur seeks new missions for the group. The intrapreneur seeks new activities within the broad mission for group members. The protector-defender-sponsor is a fourth role, whose function is to get the team the resources it needs for innovative work from the larger system of which it may be a part, and also to defend the team from external pressures or attacks. The gatekeeper is a fifth role, that of bringing to the team essential market, technical, or political intelligence from outside that can become the basis for meaningful divergent thinking. These roles need not be played by different individuals. The important point is that they should get played.

 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 visit www.asifjmir.com, Line of Sight

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