1. Prepared By :Ahmed Gamal ELKattan
Teaching Assistant at Thebes
Academy,NUB.
Ahmed.elkattan@thebes.edu.eg
2. Not-for profit organization Definition
• A non-governmental organization (NGO) is a non-profit, citizen-based group
that functions independently of government. NGOs, sometimes called civil
societies, are organized on community, national and international levels to
serve specific social or political purposes, and are cooperative, rather than
commercial, in nature
3. • A number of NGO variations exist, including:
• BINGO: business-friendly international NGO (example: Red Cross)
• ENGO: environmental NGO (Greenpeace and World Wildlife Fund)
• INGO: international NGO (Oxfam)
• QUANGO; quasi-autonomous NGO (International Organization for
Standardization - (ISO))
4. Key Differences
(1) Product—with not-for profi t ‘products’, there is typically a weaker unique selling proposition,
i.e. weaker direct benefits making it more difficult to direct customer or target audience
behaviour in the way desired. For example, giving to charity provides us with a sense of
‘doing good’ but this feeling may not be sufficient to induce many people to give.
(2) Price—this important component of the marketing mix has different connotations in not
for-profit situations. For example, in a political marketing context, what is the price when
marketing a political party? Is it the effort needed to go out and vote, or the economic costs of
voting for one party versus another? In relation to charities, the amount donated is often
left to the discretion of the donor and is in fact largely determined by the donor, rather than
being specified by the seller as in a commercial transaction. Pricing decision making in NGO.
5. (3) Involvement—whereas we speak of high and low involvement in commercial situations
in relation to the extent to which consumers become involved with a product or service
in order to learn more about it during the purchasing process, the involvement in nonbusiness
situations displays more extreme tendencies.
(4) Segmentation—in the not-for-profi t environment, it may be necessary to develop a
campaign to drive behaviour in all targets rather than a specific audience, as in commercial
markets.
For example, a road safety campaign might seek to encourage all adults, rather than a specifi c
audience, to drive at the speed limit.
6. 6. To promote environmental and pollution control awareness by seminars,
workshops, camps and arrangement of training classes for rural people living in far
flung areas.
7. To provide drinking water resources, low cost sanitation facilities and
construction of low cost house for peoples living below poverty line under JRY
and other schemes.
7. Non-government organizations have different aims and objective, from which some
common aims and objectives are:
1. To organize awareness campaign amongst the local people about the general
diseases and their prevention.
2. To organize campaign against the practices of female feticide and for the
promotion of adolescents reproductive health.
3. To establish medical institute to impart training in various disciplines i.e. diploma
in lab, X-Ray technology etc.
4. To make the community aware of relevance and importance of respect for each
other, humanity and co-operation.
ObjectivesofNGO
9. (1) Multiple Stakeholders
• Stakeholders are those groups with whom the organization has a
relationship, and which impact on the operations of the
organization, including shareholders (or trustees), regulatory
bodies, other charity or not-for-profit partners, supply chain
partners, employees, and customers.
• Stakeholders are less likely to have an influence on how the
organization’s profits are distributed
10. (2) Transparency
The use of public money and donations in not-for-profit organizations
requires that their source and allocation be easily understood,
audited, and tracked. Such public scrutiny or
transparency of funding is a feature that distinguishes these
organizations from their private sector counterparts.
11. (3) Multiple Objectives
Not-for-profit organizations have a range of goals, a multiple set of
tasks that they seek to achieve. These include generating
awareness, motivating people to be volunteers, distributing
information, contacting customers, raising funds, allocating grants,
and lobbying members of parliament for a change in regulations or
legislation
12. • (4) Orientation
• as a general rule, organizations in the not-for-profi t sector are
oriented to delivering a service. Developing a market orientation is
important for a not-for-profit, because the stronger the market
orientation, the stronger the organization’s market performance,
particularly for smaller charities (Seymour, Gilbert, and Kolsaker,
2006).
13. • (5) Customers’ Perceptions
In the not-for-profit sector, customers always have a choice. Donors
are free to give to one charity rather than
another or not to give anything at all. In the public sector, choice is
often limited, although governments do try to provide some choice
(e.g. in school provision).
