Effective marketing in non profit organizations

Because they must appease investors, funders, and the general public, marketing efforts at nonprofit organizations are complicated. The responses of these demographic groups to the marketing-generated image are typically influenced by perception. These demographics find positive marketing more appealing. Instead of drawing attention to the issues that are connected with showing negative effects during the marketing process, the paper focuses on the advantages of adopting a more optimistic approach. When marketing a non-profit organization, the premise is a more appealing strategy because it draws in funders and the general public.
From already published literature, qualitative data was gathered. Questionnaires were used in the survey process during the collection of quantitative data. There were 100 respondents (N=100) from a variety of age groups, genders and demographic backgrounds.

The data strongly indicates that perception is affected by marketing. From the research, it can be concluded that image perception, motivational factors, and volunteering are the major factors that indicate the significance of positive marketing.

Keywords: non-profit organizations, marketing, data, image perception, volunteering.



Perception and Effectiveness of Marketing in Non-Profit Organizations

Introduction

Marketing entails a variety of aspects and it may be difficult to define it in most circumstances. In this investigation, the concept of marketing is borrowed from the work carried out by Hartnett and Matan (2011, p. 6) who define it as “the process by which nonprofits combine a range of strategies that work together…by communicating effectively with a targeted audience”. From this approach, marketing generates the kind of structure and control that aims to continuously demonstrate the value of an organization to the public it serves. The role of marketing in any organization including non-profit entities is to attract the attention of the public.

Marketing practices used by for-profit organizations are not always applicable to non-profit firms. Pope et al. (2009) point out that marketing has a dominant exchange pattern that is ill equipped for deployment in a non-profit organization (p. 6). Hartnett and Matan (2011) state that non-profit organizations are supposed to appeal to three target markets; customers, funders and volunteers (p. 16). Customers, funders and volunteers are immensely distinct and their response to the marketing mix varies. People who work in non-profit organizations are passionate and this fact complicates the process of marketing.

With all of these marketing difficulties, non-profit organizations are supposed to maintain a positive perception of the organization. Non-profit organizations are involved in several types of sensitive transactions such as soliciting charitable contributions, contracting for charitable services, and maintaining custody over assets owned by the society (Akerlof and Kranton 2005, p. 11; Schlesinger and Nagel 2013, p. 64; Adkins 2000, p. 18). It is thus necessary for non-profit organizations to use marketing approaches that portray them as prudent and trustworthy to the public, funders and volunteers. This paper starts with analyzing the ontological and epistemological views of marketing in a non-profit organization. It then proceeds to confirming the hypothesis that H0= for a non-profit organization a positive approach to marketing is more appealing to the target entities.

The paper focuses on the benefits of using a more positive approach than showing the problems that may be associated with portraying negative consequences in the process of marketing. The research focuses on marketing in three non-profit organizations; the American Red Cross and the Rotary Club. The third organization was based on the choice of the respondents. The aim of this was to avoid bias in the choice of organizations.

Literature Review

Traditionally, non-profit organizations have always operated in an environment that is non-competitive in nature. In fact, most non-profit and/ or charitable organizations are viewed through the lens of being providers of essential social services (Haski-Leventhal and Meijs 2011, p. 129). In the past, there were always other non-profit organizations providing some of these social services to other charitable entities. However, there has been a significant increase and emergence in new non-profit organizations. As a result, there has been the development of a competitive mindset. Today, charitable organizations compete to receive funding; an aspect that is clearly explained by the Rotary Club as they solicit for funds (Rotary Club 2017). The limited resources have made it mandatory for non-profit organizations to engage in marketing endeavors that will portray them positively in the public. This way, it becomes easy to obtain funding and maintain the existence of such entities. More than often, non-profit organizations seek for financial resources such as donations, unpaid labor (or volunteers), and to please the rest of the community that supports its existence. As explained by Hartnett and Matan (2011), non-profit organizations have to portray themselves positively to the public so as to gain acceptance (p. 9).

Hartnett and Matan (2011) focus on the dual identity of non-profit organizations (p. 8). The researchers make it clear that any non-profit organization has an ideological image and a normative identity. Hartnett and Matan (2011) posit that a normative identity is the traditional and utilitarian or cost-effective aspect (p. 9). A non-profit organization is supposed to be cost-effective; it should work like a business for it to survive. From this standpoint, non-profit organizations are obliged to give explanations to their internal and external entities on how they operate in a traditional and utilitarian manner. As Haski-Leventhal and Meijs (2011, p. 129) and Schlesinger and Nagel (2013, p. 64) explain, non-profit organizations need transparency and accountability. To achieve this, an organization is forced to focus on positive activities or achievements that will portray the organization as one being cost effective.

While they retain transparency and accountability, non-profit organizations are further expected to respond to the changes in the dynamic environment (Pope et al. 2009, p. 13). Survival in such an environment requires the generation of a positive image the various forms of public, and cultivation of positive lines of communication (Dolnicar and Lazarevski 2009, p. 280). In their analysis of marketing in a non-profit organization, Pope et al. (2009) show that it is better to focus on positive images (p. 54). They explain that this encourages the various populations to analyze the organization from a cost-effective perspective. For example, the American Red Cross and the Rotary Club use positive aspects to create a positive image.

It is obvious that the current non-profit organizations are in a competitive marketplace - where such firms vie to get funding. Just like in a traditional marketplace setting, Pope et al., (2009) make it very clear that client satisfaction is an important differentiator for such entities (p. 60). This explains why the Rotary Club and the American Red cross market themselves on their websites. Stride (2006) explain that customer satisfaction is dependent on the degree to which a product meets or exceeds the expectation of the customer (p. 118). Stride et al. (2006, p. 118) and Haski-Leventhal and Meijs (2011, p. 130) agree that the level of customer satisfaction gives organizations a clear indication of their success. Customer satisfaction is an essential antecedent of loyalty. Haski-Leventhal and Meijs (2011) report that satisfaction is evident only when an organization focuses on the positive aspects of a product (p. 129). For this reason, it is necessary for the non-profit organizations to focus on the positive endeavors of that organization.

Pope et al., (2009) explain that the relationship between the public and the nonprofit organization is one characterized by reciprocity when it comes to expectations (p. 13). For instance, the public provides non-profit organizations with funds which they expect these organizations to use to achieve their endeavors. Akerlof and Kranton (2005) further explain that this relationship is one of a wager where the other party is supposed to perform as anticipated (p. 12). In other words, both the non-profit organization and the target market expect that the other will perform exceptionally. A non-profit organization is expected to fulfill the purpose of the public, volunteers and funders. In lieu to this, the non-profit organization is expected to engage in the kind of marketing that will portray positive things and not negative aspects related to the organization.

Pope et al., (2009, p. 23) and Akerlof and Kranton (2005, p. 13) analyze marketing in a non-profit organization from the perspective of the mental image a product or service is supposed to create in a consumer. Apparently, the mental representation of an object is the one that acts in its place or rather the cognitive approach toward that object. Normally, the mental image is an immediate set that gives a connotation inferred by an object. In other words, the mental image is the result of the subject's opinions, feelings, impressions and ideas regarding the non-profit organization. Mental images regarding non-profit organizations may be delivered by observers and the media. The public and the funders imbibe the positive aspects of an organization for as long as these images generate a positive perception. This way, the mental image remains positive and makes the organization appear as one that is focused on positive aspects.

The whole idea of marketing as explained by Stride (2006) is that it should create a positive brand image, and engrave the same ideology on the target market (p. 121). In their emphasis of creating a brand image that induces trust. Pope et al. (2009) explain that positive attitudes toward brands linked to higher levels of donation (p. 14). The researchers insist that in a non-profit organization, a positive brand is of greater significance than in any other commercial organization. Apparently, a positive image attracts the attention of the public – funders, volunteers and community/ stakeholder (Hartnett and Matan 2011, p. 28).

Hartnett and Matan (2011) further explain that the only way of obtaining a positive brand is to portray the organization as one that focuses on giving its dependents the best service (p. 26). Generating support entails being known as more than just a non-profit organization. Without a positive image or brand, it becomes difficult to obtain even short-time volunteers or funders. It is the brand that attracts attention, and then proceeds to create trust. The organization is not supposed to focus on the negative aspects of calamities but the benefits of offering help as it goes a long way in developing trust in the public (Hartnett and Matan 2011, p. 28).

In their analysis of effective marketing, Pope et al. (2009) explain that it is better for a non-profit entity to use cause-related marketing (p. 13). In this case, the organization focuses on the development of a cognitive brand by capturing the overall objectives of a company in a marketing endeavor that attracts the public. The researchers say that the public is more than ready and willing to respond to something good and this is why marketing should always focus on positive things. The idea here is to ensure that the first or last image in the mind of the public relating to a charitable organization is that it is focused on improving the world by making it a better place. This way, it is possible to develop a scenario where the public finds it easy to support the endeavors of the organization.

The theory of relationship marketing posited by Stride (2006) states that the trust of the public toward an organization is a reflection of the way an organization projects itself (p. 117). Granovetter (2005) explains that this is portrayed through the social capital of an organization including its values, networks, norms, and goals (p. 40). For a non-profit organization, social capital is more like a brand and it is obtained through the development of trust and loyalty (Stride 2006, p. 118). Trust is simply an anticipation that the other one (trustee) will act in a manner that presents their shared values and social capital. It encompasses morality and ethics, and the trust in the other entity. For example, the Rotary Club and the American Red Cross Society focus on their positive contributions to the society so as to make the public trust them.

In their analysis, Akerlof and Kranton (2005) posit that the organization can only be viewed from a sociological point of view (p. 13). From this standpoint, the organization is depicted sociologically based on how it projects itself to the public. Using the analogy of a school, Akerlof and Kranton (2005) says that people choose such institutions based on the way it is congruent with their goals, identities, and objectives (p. 18). It is thus the work of an organization to create an identity that mirrors the expectations of the public. This way, it creates a social capital that encourages that public to enter into a mutual agreement and develop a relationship. As the ties in this relationship get stronger, the public becomes a representation of the objectives of the organization. For this reason, it is mandatory for the non-profit organization to create a positive image as it attracts the public way better than negative images.

One of the most applicable approaches to positive perception is founded on the tenets of the agency theory. As per this philosophy, an agent is normally hired only because a principal has to depend on the discretion of the agent (Granovetter 2005, p. 39). This means that an agent has superior information or data that is timely in nature. In this case, the agent that is given the competing exigencies is the non-profit organization (Granovetter 2005, p. 40). The public expects them to make the most suitable decision on behalf of the people it serves. According to Hartnett and Matan (2011) such a relationship requires extensive trust and thus the need for the non-profit organization to use strategies that will portray it in a positive picture (p. 18).

The Rotary Club and the Red Cross are some of the largest non-profit organizations in the world. These two organizations owe their success to the millions of funders and volunteers that they have across the globe. The organizations use their websites to market their endeavors and they only focus on the positive things that they do. According to Pope et al. (2009) non-profit organizations should market the organization as one that is focused on contributing to positive change in the community (p. 19). In the case of the American Red Cross Society, they focus on contributing to positive change during instances of natural calamities such as floods and famine. In their website, the organization uses images to show how it has made several positive contributions to the society (Red Cross 2017). Similarly, the Rotary Club explains that its endeavor as one bent on ensuring that the community does not suffer (Rotary Club 2017).

Ontological and Epistemological View of Positive Perception

One of the major roles of non-profit organizations is to solicit for funds, and for them to obtain this from the public they must develop some form of trust through positive advertising. A good example of such a scenario that is related to the sociological point of view of an organization is the American Red Cross (ARC) and the occurrences that took place during the Hurricane Katrina disaster. The public was requested to give directly to the ARC so that the organization could improve its potential to help its victims. In as much as the ARC was a simple conduit, the organization has already developed a charter that compels it to help such individuals. This charter is available to the public so that they understand the mandate of the ARC. Using their previous track records, the public have never found it difficult to provide the ARC with all forms of help – voluntary or monetary. The ARC has already exemplified the utility of relationship marketing in building trust and a positive image. The roles that the organization plays in the public domain during disasters are a form of marketing that induces the public to provide funding and voluntary help.

From the above, it is obvious that understanding marketing in a non-profit organization requires an analysis of both qualitative and quantitative data. The ARC realizes the importance of displaying its mandate to the public. If the organization appears to be contributing positively to an organization, then it appears attractive. This way, the ARC obtains funding and people to volunteer. However, this is affected by the image they create. For this reason, it is important to focus on factors that create a positive image. The pertinent question here is to find out whatever pushes the public to volunteer or donate funds to the organization. Using factors such as motivation and consideration it becomes possible to comprehend that which the organization uses to attract the attention of the public.

Methodology

This research is exploratory approach with pragmatic tactic. The researches uses a variety of scholarly articles for qualitative data from research articles. For this research, survey questionnaires were used to collect quantitative data. All the qualitative data was collected from existing research including information regarding the outstanding performance of trustworthy non-profit organizations. For the purpose of this research, seven scholarly articles were used to analyze the importance of positive perception to analyze marketing in non-profit organizations.

The quantitative data was collected from participants recruited using intercepts in shopping centers in a local university. For the purpose of minimizing recruitment bias, other participants were recruited using an online platform, and this cluster of individuals had to be different from the first cluster (students or individuals in the local university). The data set of respondents who answered the questionnaire was made of individuals who came from a variety of populations and cultural backgrounds. For this research, gender, age and occupation were found to be of great significance. They affect the time that people have for volunteering and perception influences the mental image of a non-profit organization in an individual.

For this research, respondents were asked to focus on three major organizations; the Red Cross, the Rotary Club and an international organization of their choice (each respondent could choose based on their knowledge). These two organizations were chosen due to their representation of a broad variation of emergency and humanitarian services. The respondents were also asked to choose an organization that they thought portrayed similar characteristics. The questionnaire focused on three major items; motivation, consideration, image perceptions.

In relation to image perception, the respondents were requested to focus on five organizational attributes. These are inclusive of whether the organization supports local communities, is committed to its endeavors, organized, reliable, and contributes positively to the community. These items are chosen based on the fact that they affect the branding of any non-profit organization. Participants were expected to tick a box with a number between 1 and 5 that represented the organization. On the aspect of consideration, the respondents were expected to analyze at volunteering aspects. The answers were based on the views of the respondents regarding whether it is a complementary or exclusive activity. The respondents were asked which of the organizations they were willing to volunteer. In relation to consideration, the respondents were asked to tick a box which represented their motivation to volunteer. There were various aspects related to motivation including aspects such as values – a chance to help others in need, or even social – it gives a one a chance to socialize among others.

In their analysis, Akerlof and Kranton (2005) posit that the organization can only be viewed from a sociological point of view (p. 13). From this standpoint, the organization is depicted sociologically based on how it projects itself to the public. Using the analogy of a school, Akerlof and Kranton (2005) says that people choose such institutions based on the way it is congruent with their goals, identities, and objectives (p. 18). The methodology chosen for this research is bound to work effectively through focusing on the sociological aspects of the organization. It is thus the work of an organization to create an identity that mirrors the expectations of the public. This way, it creates a social capital that encourages that public to enter into a mutual agreement and develop a relationship. As the ties in this relationship get stronger, the public becomes a representation of the objectives of the organization. For this reason, it is mandatory for the non-profit organization to create a positive image s this attracts the public way better than negative images.

Results and Analysis

The results of this investigation are presented in three major stages based on the image perceptions, motivation and consideration. The first part of the results portrays the image perceptions related to volunteering. The image perceptions are examined based on the extent to which two organizations are attributed as similar when describing the willingness of individuals to volunteer for them. The results of this analysis are then used to group the organizations together. The presentation of this section concludes with an examination on whether the groups of organizations have any similarity.

Quantitative data is scrutinized using a method known as Perceptions Based Market Segmentation (PBMS). This method is described in Dolnicar and Lazarevski (2009, p. 280). The questionnaire is in the appendix. The PBMS method uses the perception of an individual regarding multiple objects in order to identify the images and perceptions created by the object. In this case, the object is the non-profit organization. The images in this case are synonymous to brand archetypes as described by Dolnicar and Lazarevski (2009, p. 281). The main purpose of the brand archetype is to appeal to a particular population so that the non-profit organization can get volunteers and funders. PBMS is an approach that relies on a single analysis in order to derive aspects related to competitiveness including segmentation and positioning.

For this research, all the perceptions of the three organizations (brands) and the attributes were treated as a single set of data. The main attributes considered were of greater significance and they were compared to each non-profit organization. All perceptions included in the questionnaire were collected using an outspread answer format. All the questions without answers were placed in a neutral cluster. The aim of this investigation was to confirm that positive approaches are more attractive. The respondents were expected to mark all answers that they felt were right or close to something that they believed as true.

100 participants were part of the study and all of them gave back their questionnaires. From the questionnaires, 12 % of the respondents (n= 12) made it clear that they would never consider volunteering for all 3 organizations. 20% (n=20) said they would consider volunteering for all the three organizations (the third one being that of their choice). 22 % (n= 22) would consider offering volunteering services to the two organizations suggested but they would never consider volunteering for the one that they chose. All the rest of the individuals (n= 46) had no problem volunteering for all the organizations.



Figure 1: Number of Organizations where Respondents Would Volunteer

From the data shown in Figure 1, there is a large percentage of individuals willing to volunteer for more than one non-profit organization. 80% (n=80) of the respondents were more than willing to volunteer for all the three organizations. In fact, the highest percentage is of those individuals that are willing to volunteer for all 3 organizations. Only 20% (n=20) were willing to volunteer for less than 3 organizations.

The next analysis was performed using the PBMS to find out the similarity between volunteering brands using the information provided by the respondents. From the answers given by the respondents, the attractiveness of an organization was largely based on its positive contribution to a society. 80% (n=80) of the individuals strongly agreed that they would consider volunteering for an organization because it contributes positively to an organization. The respondents who chose all three organizations as potential places for volunteering made it clear that they considered the positive contribution of that organization to a society. Most of them said that they would consider volunteering in those organizations because they had the notion that those organizations made significant contributions to the society. The third aspect in this research was consideration. A great percentage of the respondents were more than willing to offer their services to an organization that was already deemed caring and focused on the community.

The research used respondents from all types of demographic backgrounds. The motivation for volunteering was multifaceted. 78% said they are likely to volunteer because it is an opportunity to help other people who are in need. 80% said that volunteering is a way of giving back to the community and thus they offer to volunteer. Another 80% made it very clear that volunteering is a worthy cause because it gives them a chance to support a good cause. 82% of the population said they volunteer because it is an opportunity to meet a variety of people. 87% of people said they volunteer because it is a way of helping their community.

Discussion

The major objective of this investigation was to analyze the impact of perception in non-profit marketing affects the way individuals view the organization. The results strongly indicate focusing on marketing the positive attributes of an organization makes it appear appealing to a lot of people. As a result, a lot of people are willing to volunteer to an organization that is marketed using its positive accomplishments. An appropriate strategy in this case is to create a positive brand image. This impacts the motivation of an individual to volunteer or offer help to such an organization. Volunteers consider certain organizations as heroes based on their marketing strategies. Individuals who view an organization as one that seeks a good cause are more likely to volunteer for them. Only a few individuals consider volunteering simply because it is a chance for socializing as the brand image and perception was considered of great significance. A sample of the questionnaire is in appendix I.

Both organizations chosen in this study had particular aspects in their marketing that show that they focus on positive aspects. The Rotary Club and the American Red cross use the positive experiences of other people to spread the message regarding their success (The Red Cross Society 2017). On their website, the American Rotary club says “By increasing the public's understanding of Rotary, we're strengthening our ability to make an impact in communities around the world” (Rotary 2017). According to Pope et al. (2009, p. 20) and Schlesinger and Nagel (2013, p. 64) using positive accomplishments is of the most effective ways of marketing a non-profit organization. When people are used to show the positive side of an organization, people tend to want to volunteer or be part of the endeavors of such an organization. From this standpoint, it is possible to understand why most of the respondents believe they would volunteer for such organizations.

Similarly, using the community as a subject is an important way of marketing an organization. In their website, the Rotary club says that their intention is to develop a movement of individuals who are passionate on making a positive impact on the society (Rotary 2017). The American Red Cross makes it very clear that by working with them, one makes an impact in the community and also gets an opportunity to meet with people from diverse communities. As Pope et al. (2009) explain, this makes an individual feel like they are part of a good cause (p. 20). The positive relationship portrayed using this approach is highly effective in attracting individuals to work with the organization.

For the individuals who consider offering volunteering services for more than one organization, their motivations differed greatly. In as much as the motivation emanated from a variety of factors, individuals wanted to volunteer for organizations with a positive image. They also considered the fact that they got opportunities to meet and socialize with other people. This implies that organizations should reinforce both egotistic sources of motivation (such as the need for socializing) and altruistic ones (such as giving back to their community). In their analysis of marketing in non-profit organizations, Hartnett and Matan (2011) explain that it is important to focus on multiple factors to encourage people to volunteer and provide funding (p. 39). For example, the Rotary club uses the fact that it is for a good cause, it cares about the community and the social life of individuals (Rotary 2017). This explains why the organization raises a high amount of money each year for its development.

The findings strongly indicate the need for the development of positive brand images as this have major impacts on whether or not to provide funding or volunteer for a non-profit organization. It supports the ideas presented by Granovetter (2005), who makes it very clear that achieving competitiveness for an organization requires the presentation of a strong positive brand image (p. 40). From the research, the American Red Cross was quite popular among the people because they believed that the organization was popular during most calamitous events. They would thus volunteer for an organization like this one because of the way they viewed its contribution to major changes in the society. Stride (2006) says that most brand images creates a generic assumption of being good and thus non-profit organizations should focus their marketing strategies based on aspects that affect perception (p. 120). Even the individuals who opted for personal organizations based their answers on the fact that the organization had a good cause.

Conclusion

Marketing is a process where non-profit organizations combine a variety of strategies that work together to attract the attention of a targeted audience. The main aim of marketing strategies is to generate a structure that will enable the non-profit organization demonstrate its value to the community. While other entities market their products for the purpose of earning profits, non-profit organizations do it specifically to earn the trust of the public so that they will end up having volunteers and funding. This is why the marketing strategies deployed by for-profit organizations are not always applicable to non-profit firms. Non-profit organizations market their products specifically to meet the needs of the public, shareholders and potential funders.

As such, it is important for non-profit organizations to maintain a positive perception of the organization. Apparently, non-profit organizations are involved in sensitive transactions and should be involved in marketing approaches that portray them as prudent and trustworthy to the public, funders and volunteers. The main purpose of this research was to find out the impact of perception in marketing approaches used by non-profit organizations. The hypothesis is “for a non-profit organization a positive approach to marketing is more appealing to the target entities”. Using exploratory approach with mixed methods (qualitative and quantitative), the researchers collected data that confirms the hypothesis.

In the research, the quantitative and qualitative data confirm that individuals will only volunteer for an organization with a positive brand image. Aspects such as the portrayal of support to the...