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Lesson 8 of 8Introduction to Marketing
Unit 1 · Lesson 8 of 8

Not-for-Profit and Global Marketing

Not-for-profit organizations market causes, ideas, and events to donors, volunteers, and clients, while global marketers decide what to standardize and what to adapt for other cultures.

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Key things to remember

  1. 1For-profit organizations measure success by profit; not-for-profits measure success by progress on their mission.
  2. 2Not-for-profits market to several audiences at once: donors, volunteers, and clients.
  3. 3Social marketing uses marketing techniques to change behaviour for the good of society.
  4. 4Standardization = same product and marketing everywhere (lower cost); adaptation = changed for local markets (better fit).
  5. 5Cultural considerations for global marketing include language, colours and symbols, numbers, religion and customs, values, and laws.

Marketing is not only for businesses trying to make a profit. A food bank needs donors, a hospital foundation needs people to buy lottery tickets, and a public health campaign needs teens to put their phones down while driving. At the other end of the scale, a small Ontario company that wants to sell overseas faces a new challenge: customers in another country may speak a different language, value different things, and read colours and symbols differently. This topic covers both situations, because both force marketers to think carefully about who their audience really is.

Marketing Without a Profit Motive

For-profit businessNot-for-profit organizationMain goalEarn a profit for the owners orshareholdersServe a mission or cause; any surplusgoes back into that missionWho they markettoCustomers who buy goods and servicesSeveral groups at once: clients served,donors, volunteers, and membersWhat ismarketedGoods, services, and brandsCauses, events (fundraising runs,galas), services, and ideas such as“don't drive impaired”Where the moneycomes fromSales revenueDonations, grants, memberships, eventtickets, and some salesSuccess ismeasured bySales, market share, and profitFunds raised, volunteers recruited,people helped, and awareness of thecauseBoth use research, segmentation, and the 4 Ps. What changes is the goal and the audiences.
Fig 1For-profit and not-for-profit organizations both market, but they measure success differently.
AFor-profit organization
  • Main goal: earn a profit for owners or shareholders
  • Success measured by sales, profit, and market share
  • Revenue comes mostly from customers who buy the product
  • Customers usually are the people who pay
BNot-for-profit organization
  • Main goal: advance a mission or cause
  • Success measured by impact: meals served, lives changed, behaviour changed
  • Revenue comes from donations, grants, fundraising events, and some fees
  • The people who pay (donors) are often not the people served (clients)

Because donors and clients are often different people, a not-for-profit has several target markets at once. It must attract donors who give money, volunteers who give time, and the clients or community members it serves. The marketing concept still applies: the organization must understand what each group needs. An exchange still happens too, even without a product — a donor gives money and receives the satisfaction of helping, recognition, and sometimes a tax receipt; a volunteer gives time and receives experience, friendships, and a sense of purpose.

  • Cause marketing — promoting an issue or charity, sometimes in partnership with a business that donates part of its sales.
  • Social marketing — using marketing techniques to change behaviour for the good of society, such as campaigns against distracted driving or for recycling.
  • Event marketing — promoting fundraising events such as charity runs, galas, and auctions, which raise money and awareness at the same time.
  • Donor and volunteer marketing — thanking, informing, and staying in touch with supporters so they give again.
Registered charities in Canada
Registered charities in Canada are registered with the Canada Revenue Agency and can issue official donation receipts, which donors can use to claim a tax credit. Charities often mention this in their marketing because it lowers the real cost of giving.

Going Global

Global marketing means marketing goods, services, or events in more than one country. Businesses go global to reach more customers, to grow when their home market is crowded, and to spread risk across several economies. The central decision is how much to change. Standardization uses the same product, packaging, and promotion everywhere. Adaptation (also called localization) changes the product or its marketing to suit each local market. Many businesses mix the two — keeping the core product the same while adapting the packaging, language, and advertising — an approach sometimes called glocalization.

AStandardization
  • Same product and message in every market
  • Lower costs through economies of scale
  • Consistent brand image worldwide
  • Risk: may ignore local tastes, laws, and customs
BAdaptation (localization)
  • Product or marketing changed for each market
  • Better fit with local tastes, culture, and laws
  • Customers feel the brand understands them
  • Risk: higher costs and a less consistent brand
Cultural considerationWhy it mattersExample
LanguageNames, slogans, and instructions must be translated accurately and sound naturalA catchy English slogan may be meaningless or awkward when translated word for word
Colours and symbolsThe same colour or image can carry different meaningsWhite is linked to weddings in some cultures and to mourning in others
NumbersSome numbers are considered lucky or unluckyIn parts of East Asia, the number 4 is avoided because it sounds like the word for death
Religion and customsBeliefs affect what people eat, wear, and celebrate, and when they shopFood products may need to meet halal or kosher requirements
Values and etiquetteAttitudes toward humour, family, gift-giving, and directness varyAn ad using sarcasm may seem rude in a culture that values politeness
Laws and regulationsRules on labelling, advertising, and product safety differ by countrySome countries restrict advertising aimed at children
Cultural and legal factors to research before entering a new market.
Canada is already a two-language market
Canadian marketers practise adaptation at home. Federal labelling rules require the mandatory information on most prepackaged consumer products to appear in both English and French, and Quebec has additional French-language requirements. A company that packages only in English is not ready to sell across its own country, let alone the world.

Worked examples

Reveal one step at a time and try to beat it to the next line.

Example 1
A hypothetical Oshawa food bank wants to increase support before the holidays. Identify its target audiences, the exchange with each one, and one way to measure success.
Example 2
A hypothetical Sault Ste. Marie hospital foundation runs a gala. It sells 320 tickets at $40 each, receives $2,000 from a local sponsor, and spends $3,500 on the venue, food, and decorations. How much money does the event raise for the hospital?
Example 3
A hypothetical Ontario maple syrup company, Northern Pour, wants to start selling in Japan, where gift-giving is an important custom. Decide what it should standardize and what it should adapt.

Where marks get lost

  • Assuming not-for-profits cannot earn more than they spend — they can have a surplus, but they use it for the mission instead of paying it to owners.
  • Treating donors and clients as the same target market — the people who pay a not-for-profit are often not the people it serves, so each needs its own message.
  • Choosing full standardization because it is cheaper without checking whether the product, name, or colours will offend or confuse the new market.
  • Relying on word-for-word translation of slogans instead of having native speakers check that the meaning and tone survive.
  • Forgetting that global marketing rules also apply at home — Canadian packaging generally needs English and French labelling.

Flashcards 8

Not-for-profit organization
Social marketing
Cause marketing
Three audiences of a not-for-profit
+ 4 more

Practice

1
What is the main goal of a not-for-profit organization's marketing?
2
Match each type of not-for-profit marketing to an example.
Social marketing
Event marketing
Donor marketing
Volunteer recruitment
3
A hypothetical Brampton animal shelter holds a trivia night. It sells 250 tickets at $30 each and spends $2,100 on the hall and prizes. How much does the event raise for the shelter?
$
4
A hypothetical Ontario literacy charity received $600,000 in donations and spent $450,000 of it directly on literacy programs. What percentage of donations went directly to programs?
%
5
A company sells exactly the same product, packaging, and ad campaign in every country. This is...
6
Which is a cultural consideration a business should research before launching in a new country?
7
What term describes changing a product or its marketing to suit a local market?
8
Put these steps for entering a new country in a sensible order.
  1. 1Decide what to standardize and what to adapt
  2. 2Launch and monitor the results
  3. 3Adapt packaging, language, and promotion as needed
  4. 4Research the country's culture, laws, and consumers
9
Why does a Canadian company selling prepackaged consumer products across Canada already need to think about adaptation?

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