Services Marketing

Chapter 30 : Charities Marketing

The Role of Marketing in Charities

Business Functions in Charities Marketing

Financial Function Production Function Personnel Function Purchasing Function Management Tasks in Charities Marketing Marketing Audit
Market Analysis Market Segmentation

Marketing Planning and the Marketing Mix

Product
Price
Promotion
Place
People
Process and Physical Evidence

Charity Organizations in India

Chapter Summary

Charity organizations are not-for-profit organizations, which are established with the purpose of serving the public. They may serve downtrodden sections of society or assist victims of natural disasters or wars. Some charities also serve pet animals and birds and stray animals and wild life. Others strive to prevent pollution and protect the environment.

Unlike commercial organizations, charities need to serve two types of customers – donors, who supply funds and beneficiaries, who receive the charity's services. Charities use similar strategies to those adopted by corporate firms to market their services. The application of commercial marketing methods by charities to evoke a positive response in society to their social welfare programs is called social marketing.

Charities attempt to maintain a close relationship with donors to ensure a continuous supply of funds. They also enter into partnerships with commercial firms for mutual benefit. Charity organizations accept donations in cash or kind. Charities need to perform marketing, finance, production, personnel and purchasing functions effectively with the limited resources they have.

The finance function includes collecting funds from various sources such as individuals, corporates, government and foundations and allocating them for various projects. The production function includes utilizing the funds to serve customers efficiently. The personnel function involves recruiting, training, motivating, controlling and coordinating employees and volunteers to achieve the goals of the organization.

The purchasing function includes obtaining quotations from different suppliers, selecting the best supplier, placing orders, receiving products and services and paying the bills. Charities also need to perform marketing management tasks like marketing audit, marketing analysis and market segmentation.

As a part of the first, charities evaluate the effectiveness of their promotion activities and attempt to formulate strategies to improve promotion methods and utilize their resources better. Charities also collect information from customers, analyze and interpret it, and understand threats and opportunities in the market, before formulating strategies to deal with them.

They also attempt to identify different segments in the market and cater to the segment to which they can offer services efficiently. Charities chalk out a detailed marketing plan to guide them into the future. The marketing plan covers all elements of the marketing mix like product, price, place, promotion, people, process and physical evidence.