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Impact of marketing activities on small business
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Communication is one of the most important aspects of any non-profit organization. How is an organization going to succeed and get their product or message out to the public if they do not make attempts to communicate? Like all businesses, non- profit organizations have struggles developing and executing effective communication effectively. Perhaps the main reason why non-profits do not successfully communicate with the public is due to their lack of budgeting in this area. No matter the side effects, large businesses spend millions of dollars every year on marketing and advertising in order to communicate their messages or products. However, the general majority of non-profits are on tighter budgets and do take in as much profit for their …show more content…
In order to market and advertise properly, organizations need to be intertwined with the everyday interactions of their aimed consumer. In the days of smart phones and tablets, and where everything is connected digitally, what better way is there for non-profits to get their message or product out there then this mean? Digital advertising is now one of the best means of advertising in America today. This is important to know for organizations because this mean is cheap and effective. Sadly, many managers and leaders of non- profit organizations often believe that investing in communication is an important aspect in their business. Roumen Dimitrov wrote an article entitled, The Strategic Response: an Introduction to Non-profit Communication in the journal Third Sector Review. In this article Dimitrov made the statement that, “Resource-poor non-profits often prefer to siphon all they have into a single purpose--that which they consider their mission.” He went on to conclude some managers simply believe, “Investing in communications is an idiosyncratic self-indulgence.” (Dimitrov, R., 2008) Because there are many managers and leaders that believe this, many marketing and communication experts in the organization have little to work …show more content…
These methods include everything from pamphlets and fliers, to billboards and vending tables. While these might seem a little old fashioned to some, they are still effective in building a respectable brand. Olusanmi Amujo and Adeyinka Laninhun wrote an article in the Third Sector Review entitled Organisational Brand Identity Management: A Critical Asset for Sustainable Competitive Advantage by Non-profits. In this article they laid out in detail the effective methods to build brand image and why it is important even for non-profits to consider. They wrote, “The element of brand image, such as brand cues, signals and brand messages, should be built on truthful communication in order to build a positive brand image perception among stakeholders, which may result in brand trust, brand loyalty and brand commitment.” (Amujo, C. O., & Laninhun, B. A. 2013). Communicating effective branding is important for the overall health and longevity of the
Cacija, L. N. (2013). Fundraising in the Context of Nonprofit Strategic Marketing: Toward a Conceptual Model. Management: Journal of Contemporary Management Issues, 18(1), 59-78. Retrieved from http://search.proquest.com/docview/1418199977?accountid=12085
When the consistency of the information is built, the credibility of the brand becomes higher (Bengtsson, Bardhi and Venkatraman, 2010). It is suggested that asymmetric information leads to consumer uncertainty, which would therefore have a negative impact on brand image (Erdem and Swait, 1998, p. 138). Accordingly, consistency of the information has become a key factor that leads to the successfulness of a global brand since it reduces the uncertainty and the thinking process time of consumers (Lee et al., 2007). Several effects have been found regarding to standardization of a brand (Erdem and Swait, 1998, p. 138). Marketers will have a better control of the brand if the brand meaning has been consistent over the time (Erdem and Swait, 1998, p. 138). First of all, it increases brand equity, which would therefore improve consumer’s brand awareness (Erdem and Swait, 1998, p. 138). Second, it would reduce consumers’ uncertainty of the brand, which would thus increase the reliability of the brand and brand loyalty (Erdem and Swait, 1998, p. 138). Third, it greatly reduces the conflict of consumers’ cognitive structures, which would lead them to trust more on the brand (Erdem and Swait, 1998, p.
For example, since they are not organized to pursue profits, nonprofits are more worthy of trust and therefore more reliable. Moreover, nonprofit comprise vast and growing sector of the national economy, and they are a vital partner with government to provide a wide range of social and human services. The American public will continue to value and support the nonprofit sector as long as it satisfies recognized needs not addressed by government or the for-profit sector. During the years, nonprofits sector provided historically valued services that public and private sectors failed to provide, and promoted new ideas, theories and policies to society. And finally, effective and appropriate use of technology is critical to maintaining a nonprofit organization 's accountability and relevance. A nonprofit should manage information with regard for confidentiality, safety, accuracy, integrity, reliability, cost-effectiveness, and legal compliance. A nonprofit should take the opportunity in incorporating the appropriate technology into its work to improve its efficiency, efficacy, and accuracy in the achievement of its
Increasing awareness of a personal and unique identity distinguishes us from the pack. A brand mantra differs from a tagline, explains Guy Kawasaki, as a mantra describes internal business, a standard for a company to abide by. A tagline is for customers and what they can expect to be delivered (Martinuzzi, 2014). John Jantsch, founder of Duct Tape Marketing defines branding "the art of becoming knowable, likable and trustable” (Martinuzzi, 2014). Many specialists on the subject agree that trust building is essential in success. Being honest is one of the top five steps Forbe’s advises when it comes to brand building (Biro, 2013). Some suggestions to follow from, How to Build an Unforgettable Personal Brand (2014) include, making sure customers are provided what is promised, leading with unwavering quality and being consistent in making good on one’s word. The article also warns that the public will assign a default brand if a
There are different challenges a non-profit organization face, although I believe that those same challenges are faced on for profit organization either at the same level or very similar. Trust is an issue that both non-profit and for profit organizations will encounter at some point in their business and therefore they would need to be as transparent as possible. Transparency entitles you to provide clear statements of where your money goes, how it is utilized in your organization, and how it is making your organization accomplish their goals. It is not the only thing that is necessary to make the stakeholders, other business, employees or anyone interested in other business to trust in your organization. For a non-profit organization trust is a key element to engage volunteers, donors and other business; without trust chances are that the organization might fail to achieve their mission. Trust is acquire by performing the goals you have set for your mission and not deviating from it, at least not too far from achieving the organizations goals either for non-profit or for profit organization. It is also important to have a plan (Taylor-Hamm) in case there is a catastrophic event that might jeopardize your organization, it will help you foresee adverse situations and you will be better prepared in case your first plan fails.
First of all, the Nonprofit Sector has proven to be a positive part of the US economy. Nonprofits hire a large number of employees. These nonprofit employees have access to long-term employment, and benefits just like the for-profit employees. By hiring a large number of employees, nonprofits have an active part in being an economic stimulator.
Nonprofits are organizations whose income is not used for the benefit or gain of stockholders, directors or any other persons with an interest in the organization. The nonprofit sector is very diverse; it includes tax-exempt organizations that are educational, scientific and cultural, as well as civic and social welfare organizations. Nonprofits usually work to advance a cause or interest or to accomplish some good work. Some job seekers overlook nonprofit organizations, assuming that opportunities are limited and salaries are uniformly low. This is not true.
Worth, M. (2014). Nonprofit management: Principles and Practice. 3rd Ed. Thousand Oaks, CA: SAGE Publications, Inc.
Nonprofit and for-profit businesses have multiple similarities and differences. For-profit organizations are very different from non-profit organizations because the driving goal of a for-profit organization is increasing its revenue whereas a non-profit organization will not go out of business if it suffers financial loss or does not have a bottom-line. The marketing process also differs, with the biggest differentiating factor of profit marketing is to encourage customers to buy and while the nonprofit marketing purpose is usually to encourage people to give. This means that the return on investment differs between the two. Although the principles of marketing remain the same, some of the methods must, of necessity, be different. Because of the intense involvement in the community as well as support from government, agencies non-profit firms should not compete in the same markets as for profit companies nor in anyway position their organization in any way to give the impression that their efforts could be commercial based (Nelson, 2002).
[a] company may have a unique vision, a superior product, strong management and an efficient distribution system – yet if it is not able to convey the core benefits of the brand to its target audience it will ultimately fail. [5]
Increasingly, not-for-profit organisations have taken to emulating the moneymaking practices of corporations. This trend has three primary causes: the decrease in funding from the public sector, the increase in competition for funds among an expanding number of not-for-profit organisations and the rise in funder pressure for not-for-profit organisati...
Throughout U.S. history the nonprofit and government sectors have addressed needs that are not being met by the marketplace through the provision of a variety of social goods and services ranging from health and human services to environmental conservation. In response to increased demand for these services, the number of nonprofits has grown by 59% over the past 20 years (Powell and Steinberg, 2006; NCCS, 2010). There are now over 1.5 million nonprofit organizations in the U.S. which account for 5 percent of GDP, 8.1 percent of the economy’s wages, and 9.7 percent of jobs (Wing, 2008). Over the same time period, government social programs also rapidly expanded in number and per capita cost (OCED, 2010) .
Today's modern concept of branding grew out of the consumer packaged goods industry and the process of branding has come to include much more than just creating a way to identify a product or company. Branding is used to create emotional attachment to products and companies. Branding efforts create a feeling of involvement, a sense of higher quality, and an aura of intangible qualities that surround the brand name, mark, or symbol.
Public relations is everywhere today. It is a practice that has become an important aspect of any business venture. Whether an organization is not for profit, for profit, or governmental, they still need and desire to communicate their purpose within the community and public relations allows this to happen. There are several publics in which the PR practitioner must correspond with and each requires a different means of communication. Internal publics are inside the organizations such as clerks, managers, and stockholders. "External publics are those not directly connected to the organization: the press, government, educators, customers, suppliers, and the community" (Seitel, 2004). Each public plays a key role in the PR of the organization. The many functions of PR can also be categorized based on what purpose they serve the organization.
All humans are exposed to branding and marketing on a daily basis. Commercials, internet ads, t-shirts, television shows. In today’s fast moving society, we’re constantly bombarded by the marketing and branding practices of businesses. As a new business owner, it can be daunting to step from being the observer to a creator of marketing and branding.