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Chapter 21: Not-For-Profit Marketing



True/False
Indicate whether the statement is true or false.
 

 1. 

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.
 

 2. 

Unlike for-profit organizations, nonprofit organizations often possess some degree of monopoly power in a given geographical area.
 

 3. 

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.
 

 4. 

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.
 

 5. 

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.
 

 6. 

The three major types of marketing among nonprofit organizations are person marketing, social marketing, and health marketing.
 

 7. 

An example of person marketing in the nonprofit sector is political leadership campaigns.
 

 8. 

An example of organization marketing in the nonprofit sector is fundraising for the United Way.
 

 9. 

Nonprofit organizations value marketing even more than for-profit organizations do.
 

 10. 

In the nonprofit sector, the practices of improved accounting, financial control, personnel selection, and strategic planning were all implemented before formal marketing planning.
 

 11. 

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.
 

 12. 

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.
 

 13. 

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.
 

 14. 

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.
 

 15. 

Direct distribution channels are more common in the nonprofit sector than indirect distribution channels.
 

 16. 

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.
 

 17. 

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.
 

 18. 

Due to the high costs of advertising media, nonprofit organizations often try to obtain publicity to support their causes or mount fundraising campaigns.
 

 19. 

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.
 

 20. 

Nonprofit organizations do not have to be socially responsible in their marketing because they are not profit-oriented.
 

Multiple Choice
Identify the choice that best completes the statement or answers the question.
 

 21. 

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.
 

 22. 

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.
 

 23. 

All of the following are usually nonprofit organizations in Canada except
a.
service clubs.
b.
labour unions.
c.
employment agencies.
d.
churches.
 

 24. 

The organizational characteristic generally shared by nonprofit organizations and nonprofit services is
a.
standardization.
b.
intangibility.
c.
homogeneity.
d.
accessibility.
 

 25. 

The multiple publics that nonprofit organizations must deal with include
a.
private donors.
b.
government granting agencies.
c.
clients.
d.
all of the above.
 

 26. 

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.
 

 27. 

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.
 

 28. 

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.
 

 29. 

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.
 

 30. 

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.
 

 31. 

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.
 

 32. 

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.
 

 33. 

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
 

 34. 

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.
 

 35. 

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.
 

 36. 

A primary goal in fundraising is
a.
cost recovery.
b.
demand deterrence.
c.
providing market incentives.
d.
profit maximization.
 

 37. 

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
 

 38. 

“Personal selling” for nonprofit organizations can be done by
a.
paid staff.
b.
management.
c.
volunteers.
d.
all of the above.
 

 39. 

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
 

 40. 

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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