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PADM 7040 Nonprofit Management. Chapters 1 & 2 Overview Jerry Merwin. Chapters 1 & 2 Overview. I. DEVELOPING A CUSTOMER ORIENTATION. Chapter 1. The Growth and Development of Nonprofit Marketing. Chapter 2. Developing a Customer-Centered Mind-Set. Weeks 1 & 2 Overview (2).

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PADM 7040 Nonprofit Management

Chapters 1 & 2 Overview

Jerry Merwin


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Chapters 1 & 2 Overview

  • I. DEVELOPING A CUSTOMER ORIENTATION.

    • Chapter 1. The Growth and Development of Nonprofit Marketing.

    • Chapter 2. Developing a Customer-Centered Mind-Set.


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Weeks 1 & 2 Overview (2)

  • I also want to clarify a few things about our topics that might not be covered clearly in the textbooks.

  • First, let me explain that we generally talk about three types of organizations:

    • Private – or “for profit” – the typical business

    • Public – government organizations, including federal, state, and local (city or county)

    • Nonprofit – organizations created for some specific purpose, generally for the public good, and typically incorporated, with a board of directors, staff, and volunteers

      • “The primary purpose of nonprofits is to involve people in promoting the common good,” (Nonprofit Quarterly Newsletter, October 2003, Issue 27, copied from web August 21, 2005).


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Weeks 1 & 2 Overview (3)

  • There are many similarities among these three types of organizations and some important differences.

  • Nonprofits are regulated by the Internal Revenue Service (IRS).

    • While there are many types of nonprofits, as defined by the IRS, I believe our focus is the 501(c)(3).

    • The 501(c)(3) represents the number of the Internal Revenue Code (IRC) for the law covering charitable organizations.

    • These organizations are called charitable, or “tax exempt” in that contributors can deduct donations to these organizations from their income tax.


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Weeks 1 & 2 Overview (4)

  • Go to the IRS web site to learn more about “charitable organizations” and the requirements.

  • Check to see if the organization you are researching is classified as a 501(c)(3).

    • If not, please be sure to find out how the IRS classifies the organization.

    • It might still be OK to use the organization for your project, but check this early in your research and let me know.


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Strategic Marketing for NonProfit Organizations Chapter 1

  • Our first chapter in the marketing book gives us a good introduction to both nonprofits and the role of marketing.

    • You can get a good idea of some of the issues facing nonprofits today.

    • It is possible you will learn some things you did not know before about nonprofits and their importance.

    • You might wonder why marketing could be seen as undesirable…

    • Be sure to pay attention to the ethical issues.


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Strategic Marketing for NonProfit Organizations Chapter 1

  • The Growth and Development of Nonprofit Marketing

    • How can PDAs be useful to nonprofits or NGOs?

    • Which of the myths (on page 4) were part of your belief system before reading this book?

    • Why study nonprofit marketing? (page 5)

    • Where did the idea of nonprofit marketing originate? (page 7)


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Strategic Marketing for NonProfit Organizations Chapter 1 (continued)

  • The Growth and Development of Nonprofit Marketing

    • What are the four important developments carried over from the end of the 20th century? (pages 8-10)

      • Growth of social marketing

      • International dimension of nonprofit marketing

      • Corporate involvement in nonprofit sector

      • Ethics


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Strategic Marketing for NonProfit Organizations Chapter 1 (continued)

  • The Growth and Development of Nonprofit Marketing

    • What is the fundamental objective of this book? (page 10)

      • “Provides concepts, techniques, illustrations…” (Andreasen & Kotler, page 10)

    • What are the basic premises of the book?

      • “Marketing goes on everywhere in the nonprofit!” (A&K, p. 10) Any examples?

      • Characteristics of first-rate marketer are? (A&K, p. 10)


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Strategic Marketing for NonProfit Organizations Chapter 1 (continued)

  • The Growth and Development of Nonprofit Marketing

    • Explain the evolution of nonprofit organizations. (A&K, p. 11)

    • What are the “central contradictions” related to nonprofit (according to P. D. Hall, p. 12)?

    • What strikes you about the top 15 nonacademic nonprofits listed on page 13?

    • How important is the nonprofit sector:

      • In the U.S.? (p. 14)

      • In the world? (pp. 14-15)


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Strategic Marketing for NonProfit Organizations Chapter 1 (continued)

  • The Growth and Development of Nonprofit Marketing

    • What explanations do Andreasen and Kotler offer for the cross-country differences? (p. 17)

    • Explain cross-sector confusion. (p. 18)

    • How are nonprofit classified? (p. 20)

    • What is the national taxonomy of tax-exempt entities? (p. 21)


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Strategic Marketing for NonProfit Organizations Chapter 1 (continued)

  • The Growth and Development of Nonprofit Marketing

    • What is meant by “managerially relevant classification?” (Andreasen and Kotler, p. 22)

      • Environment?

      • Donative?

      • Scrutiny?

      • View of Marketing as Undesirable?

      • Volunteers?

      • Performance Judged by Nonmarketing Standards?

      • Nature of Exchanges? (p. 26)

        • See the Table 1-5 (p. 27) Cost/Benefit Matrix for the Profit/Nonprofit Sector


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Strategic Marketing for NonProfit Organizations Chapter 1 (continued)

  • The Growth and Development of Nonprofit Marketing

    • Explain the “uniqueness of nonprofit marketing?” (Andreasen and Kotler, p. 28)

    • What are the “ethical challenges in the nonprofit sector?” (Andreasen and Kotler, p. 29)

      • See the Exhibit 1-1 on page 30


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Strategic Marketing for NonProfit Organizations Chapter 1

  • Some questions for consideration:

    • Why is the legal status of the nonprofit important in the U.S.?

    • How is marketing different for nonprofit organizations?


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Cases and Applications in Non-Profit Management

  • Case 34 Three Go-Arounds Toward Assessing a Nonprofit

    • Read the “Instructions and Questions” at the end of the case (Page 168) and consider how they might help in the class project on the Nonprofit Overview.

  • Look at the “Web Links” page on our class web site and go to the pages for the Drucker Foundation and learn more about the Self-Assessment Tool.


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Strategic Marketing for NonProfit Organizations Chapter 2

  • Developing a Customer-Centered Mind-Set

    • What is a customer-centered or marketing mindset and why is it important?

    • Explain the “Boundaries of Marketing” according to Andreasen and Kotler (pp. 38-40)

    • Outline “Evolution of Marketing Philosophy” & relate to nonprofits. (pp. 40-43)

    • What are customer-centered organizations? (p. 44)

    • How can one detect “an organization-centered orientation?”(p. 45-49)


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Strategic Marketing for NonProfit Organizations Chapter 2

  • Developing a Customer-Centered Mind-Set

    • How can we determine if nonprofit managers have a customer-centered or marketing mindset? (p. 49-55)

    • Why is research seen as important to the customer-centered organization? (p. 51)

    • Explain some of the issues in introducing a customer orientation to a nonprofit. (p. 55-56)

    • Can the organization go too far with a customer-centered orientation? (p. 56-57)


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Cases and Applications in Non-Profit Management

  • Case 11 Dinosaurs Are Extinct: Should the Museum Be, Too?

    • How did the museum get into trouble?

    • What are the responsibilities of the different groups involved (Board, management, members)?


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Some Discussion Questions

  • Thread 1: Choose one question -

    • Why is the legal status of the nonprofit important in the U.S.?

    • How is marketing different for nonprofit organizations?

  • Thread 2: Choose one question -

    • Why is research seen as important to the customer-centered organization?

    • Explain some of the issues in introducing a customer orientation to a nonprofit.