True/False Indicate whether the statement is true or
false.
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1.
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A substantial portion of the Canadian economy is composed of nonprofit
organizations. An estimated one in every ten service workers and one of every six professionals
are employed in the nonprofit sector.
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2.
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Unlike for-profit organizations, nonprofit organizations often possess some
degree of monopoly power in a given geographical area.
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3.
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Because nonprofit organizations lack a bottom-line goal like profit, it is
easier for them to set marketing objectives than it is for for-profit organizations.
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4.
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Most nonprofit organizations are unsophisticated and therefore are set up on the
basis of a standard organizational structure that is accepted in the nonprofit sector.
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5.
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The nonprofit sector is sometimes inefficient because two or more nonprofit
organizations in the same geographic area work toward the same “cause” resulting in
duplication or multiplication of effort.
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6.
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The three major types of marketing among nonprofit organizations are person
marketing, social marketing, and health marketing.
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7.
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An example of person marketing in the nonprofit sector is political leadership
campaigns.
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8.
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An example of organization marketing in the nonprofit sector is fundraising for
the United Way.
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9.
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Nonprofit organizations value marketing even more than for-profit organizations
do.
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10.
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In the nonprofit sector, the practices of improved accounting, financial
control, personnel selection, and strategic planning were all implemented before formal marketing
planning.
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11.
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Historically, a key weakness in the nonprofit sector from a marketing management
standpoint is that many decisions have been based on little, if any, market research.
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12.
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Historically, a key strength in the nonprofit sector from a marketing
management standpoint has been the recognition that heavy promotional efforts can overcome weaknesses
in product, pricing, or distribution.
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13.
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Pricing strategy is not an important part of the nonprofit marketing mix because
nonprofit organizations (a) do not “sell” their products or services, and (b) are not
profit-oriented.
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14.
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The government’s use of parking fines is an example of pricing to suppress
market demand. In the case of parking fines, the government is trying to deter people from
satisfying their need for a parking space by parking anywhere they wish.
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15.
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Direct distribution channels are more common in the nonprofit sector than
indirect distribution channels.
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16.
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The fact that many nonprofit managers see marketing communications as the
primary solution to their marketing problems diminishes the value of this marketing mix component in
a nonprofit setting.
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17.
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Nonprofit organizations generally do not use direct marketing techniques because
they do not have the funds for databases or because they view these techniques as being violations of
privacy.
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18.
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Due to the high costs of advertising media, nonprofit organizations often try to
obtain publicity to support their causes or mount fundraising campaigns.
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19.
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Many people in the nonprofit sector still view marketing with suspicion because
the nonprofit organizations that have adopted marketing techniques have used advertising agencies to
develop very sophisticated campaigns. These campaigns, such as those used by the Heart and
Stroke Foundation, are felt to be too “glitzy” and improper for a sector that is supposed
to be helping poor people and others in need.
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20.
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Nonprofit organizations do not have to be socially responsible in their
marketing because they are not profit-oriented.
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Multiple Choice Identify the choice that best completes the
statement or answers the question.
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21.
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The primary objective of nonprofit organizations is
a. | to change people’s behaviour. | b. | to help poor people. | c. | something other than
returning a profit. | d. | always non-financial in
nature. |
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22.
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The diversity of nonprofit organizational objectives that are possible in our
society is evidenced by
a. | the diversity of types of nonprofit organizations. | b. | the size of the
nonprofit sector. | c. | the importance of the United
Way. | d. | none of the above. |
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23.
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All of the following are usually nonprofit organizations in Canada except
a. | service clubs. | b. | labour unions. | c. | employment
agencies. | d. | churches. |
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24.
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The organizational characteristic generally shared by nonprofit organizations
and nonprofit services is
a. | standardization. | b. | intangibility. | c. | homogeneity. | d. | accessibility. |
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25.
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The multiple publics that nonprofit organizations must deal with include
a. | private donors. | b. | government granting
agencies. | c. | clients. | d. | all of the
above. |
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26.
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Because nonprofit organizations must deal with multiple publics
a. | customers may receive less attention than customers of for-profit
firms. | b. | customers may have less influence than customers of for-profit
firms. | c. | customers are more important than customers of for-profit firms. | d. | customers can be
varied and not very homogeneous. |
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27.
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Which of the following situations describes a problem often faced by nonprofit
organizations that for-profit firms do not have?
a. | A donor gives a large amount of money to help fund a library and then wants to be
heavily involved in decisions such as naming the library or determining the book collections that it
will carry. | b. | A customer demands that a Goodwill store provide new and better services, as well as
make changes to the type of goods it carries. | c. | The company printing the posters for the United
Way’s upcoming fundraising campaign cannot produce the required quantity by the set due
date. | d. | None of the above — these situations are faced by both nonprofit and for-profit
organizations. |
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28.
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The objectives set by nonprofit organizations are typically
a. | more easily measured than the profit goals set by for-profit
firms. | b. | oriented toward market share since financial goals cannot be set. | c. | less measurable than
those set by for-profit organizations. | d. | all focused on customer/client
service. |
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29.
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Which of the following statements is true with regard to competition in the
nonprofit sector?
a. | Nonprofit organizations compete for clients, donor support, and
personnel. | b. | Nonprofit organizations only compete for donor support. | c. | Nonprofit
organizations are inherently noncompetitive since they do not seek profit. | d. | Nonprofit
organizations compete because their efforts often overlap or are seen as duplicating each
other. |
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30.
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Efforts undertaken to remind Catholics about the importance of Pope Paul II and
his views on world and personal issues can be classified as
a. | social marketing. | b. | publicity. | c. | person
marketing. | d. | marketing communications. |
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31.
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Unlike all other forms of marketing, social marketing is
a. | not recognized by the American Marketing Association because it does not deal with
goods or services. | b. | very difficult to measure with regard to its
effectiveness. | c. | not about exploiting society. | d. | explicitly intended to benefit its target
audience by influencing their behaviour. |
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32.
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The strategic components of a nonprofit organization’s marketing mix
are
a. | product, packaging, and promotional materials. | b. | marketing
communications and distribution. | c. | product, distribution, promotion, and
price. | d. | pricing, distribution, and marketing communications. |
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33.
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When MADD (Mothers Against Drunk Driving) was being organized, its founders had
to make which of the following decisions related to product strategy?
a. | branding | b. | service/product line | c. | target
market | d. | all of the above |
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34.
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In the nonprofit sector, successful product strategies result from
a. | adjusting product offerings to reflect customer demand. | b. | management intuition
and personal experience with target market needs. | c. | extensive product and service
testing. | d. | all of the above. |
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35.
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The cost of university in Canada is subsidized by taxpayers. The tuition,
or price, charged to students is designed to achieve which of the following goals?
a. | profit maximization. | b. | cost recovery. | c. | creation of market
incentives. | d. | market suppression. |
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36.
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A primary goal in fundraising is
a. | cost recovery. | b. | demand deterrence. | c. | providing market
incentives. | d. | profit maximization. |
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37.
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Many small communities across Canada have nonprofit little theatres. The
directors, performers, and backstage personnel are all local volunteers. Their performances are
held in a variety of venues, from high school auditoriums to professional theatres. The
location of their performances involves which component of a little theatre’s marketing
strategy?
a. | product | b. | distribution | c. | positioning | d. | situation
analysis |
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38.
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“Personal selling” for nonprofit organizations can be done by
a. | paid staff. | b. | management. | c. | volunteers. | d. | all of the
above. |
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39.
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The Canadian Cancer Society runs an annual lottery as part of its fundraising
efforts. The lottery has several cash and merchandise prizes, and sells a limited number of
tickets, all at $100 each. TV ads are run to encourage people to purchase tickets (since they
cannot be claimed as charitable donations) and let people know how many tickets are left. The
Executive Director of the Canadian Cancer Society, as well as many other executives and board
members, are interviewed on national and local TV and radio programs, and newspapers are provided
with information on recent developments in cancer research and projects the new funding might be used
to support. Based on the information provided above, what does the Cancer Society’s
marketing communications mix consist of?
a. | sales promotion, advertising, and publicity | b. | personnel selling,
advertising, and direct marketing | c. | advertising and publicity | d. | sales promotion,
publicity, and personal selling |
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40.
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Many people in the nonprofit sector still view marketing with suspicion
because
a. | research has shown it is a for-profit business practice that does not work well in
the nonprofit sector. | b. | they view it as simply marketing communications
and do not recognize the full range of strategic thinking involved in marketing. | c. | they view it as
unaffordable for an organization that is not profit-oriented. | d. | they view its real
purpose as being to sell people something that they do not need. |
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