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PADM 7040
Nonprofit Management
Andreasen & Kotler Chapter 10 - Part 2
Pages 273 – 284
Debra Herrmann
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Managing Multinational Nonprofits
lNonprofit organizations that are located in more than one country (worldwide) are facing challenges and must decide on their marketing operations. =
lAndreason & Kotler list several options to take.
–Export Department
–Multinat= ional (or Multi-Local) Organization
–Global Organization
–(p. 273)
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Managing Multinational Nonprofits (Continued)
–
lExport Department
–Headquar= tered in a single country such as the US.  Marketing experts go from country to country.
lMultinational (or Multi-Local) Organization
–Operates= in numerous countries, each country has its own local management with a great deal of self-governing; coordination is hand= led at headquarters.
lGlobal Organization
–The worl= d is viewed as a single market, develops universal strategies that applies everywhere.  Local managers may adjust programs slightly to meet local needs.
lMultinational has been dominate in the early 21st=  cent= ury; however, as the nonprofit world becomes more globa= l, so will organizations.
l(p. 273)
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Multi-Site Organizations
lMarketi= ng through multiple sites in a single country is another challenge that nonprofit organizations are= facing.
lManager= s must decide if the control should be centralized or allow self-governing.
lThere a= re two important dimensions a manager must ask.
–“Should local units be independent
–and to what degree” (p. 274)?
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Multi-= Site Organizations (Continued)
lLocal offices of a central organization has two major <= span style=3D'position:absolute;top:38.25%;left:13.85%;width:78.46%;height:4.5%= '>challenges.
–“T= o what extent should marketing capability be built into the local <= span style=3D'position:absolute;top:45.75%;left:18.35%;width:74.15%;height:4.0%= '>operation?
–What sho= uld be the relationship with {headquarters}” (p. 274)?
lThe “local office” structure raises the acceptance of the= marketing strategies.
lLocal autonomy can be powerful which leads to more customer-centered campaigns and programs.
l“Headquarters must be sensitive to local needs and wants and to demonstrate the ways in which the desired behav= ior (cooperation) will meet local interests” (p.= 275).
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Organizational Design
lThe way a marketing department (e.g., national headquarters) is organized internally, as it grows= , can affect how the department is run and what type= s of people can be employed.
lAfter marketing has been established, what organizational structure is best for the organization?  = Andreason & Kotler says, “The options typically found in the priv= ate sector as design alternatives can be adapted to nonprofit marketing with limited rethinking” (p.275). 
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Organizational Design (Continued)
lThese alternatives are:
–Function= al Organization
lpublic relations, advertising, and marketing research are kept as separate functional units within marketing with a = single employee responsible for eac= h unit (initially); as the marketing group grows, each function will have its own manager
–Product/= Service-Centered Organization
lone person is put in charge of a specific product or service
–Customer= -Centered Organization
lfocus on marketing the needs and wants of the each customer group = ;
lIf not chosen as alternative, a customer perspective must be adopted&= #13;
–Mixed organization (p.275)
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Organizational Design (Continued)
lSee Figure 10-1 (= p. 276) in Andreasen & Kotler for the Alternative Organizational Designs/Structures lWhen c= hoosing one of the three alternative organizational structure designs, an= organization’s mission, objectives, goals, experience, and market conditions sh= ould be considered.
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Implem= enting a Customer Orientation
lThe marketing manager cannot make an impact on how the = people in the organization treat and act toward customers by choosi= ng a customer-oriented structure.
lIt is very important that the marketing manager gradually instills the proper philosophy to “build up a market-oriented organi= zation” (p. 279).
lAchieving a customer orientation requires the following measures, which will hopefully produce a market-or= iented organization within three to fi= ve years.
–Top Mana= gement Support
–Effective Organization Design
–In-Compa= ny Marketing Training
–Better Employee Hiring Practices
–Rewarding Market-Oriented Employees
–Planning System Improvement (p.279-281)
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Implementing a Customer Orientation (Continued)
lTop Management Support
–To devel= op a strong marketing orientation, the CEO must believe in it, understand it, want it, and wins the support of ot= her high-level executives.
lEffective Organization Design
–Marketing manager must be added in a staff or line position and be capable of influencing other top managers.
lIn-Company Marketing Training
–Marketing executive should first introduce marketing to the top corporate and divisional management at the organization̵= 7;s headquarters or at a retrea= t.  Should conduct professional presentations of concept, cases, and marketing planning exercises.
–Then presentations can be made to operations people, financial people, <= /span>and others in the organization to help them understand.  Presentations should include market opportunity identification, = market segmentation, market targeting and position, marketing planning and control, pricing, selling, marketing communication.
–
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Implementing a Customer Orientation (Continued)
lBetter Employee Hiring Practices
–Hire car= ing people.
–Require training for new employees emphasizing the importance of customer satisfaction.  Train them on skills in listening= and customer problem solving solutions. Teach them on how to handle complaining & abusive customers.  = 3;
lRewarding Market-Oriented Employees
–Employee= s who have done an outstanding job of serving customers should be commended by being acknowledged as employee of = the month, etc.  Post certificate for others to view.
lPlanning System Improvement
–Design a= nd install an organization planning system with good strong marketing data and analysis (p. 280-281).
l
l
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Customer-Driven Organizational Chang= e
lMost large and bureaucratic nonprofit organizations are resistant to change because of their success and the fact that they are very dominant or a monopoly in their field (p.281).
lCustomer-driven approaches can ensure effective organizational change particularly in large nonprofits whose national offices have regional divisions as customers.
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Customer-Driven Organizational Change (Continued)
lThe American Cancer Society is a good example of a large nonprofit who was resistant to change. = ;
–Regional= and local officials were criticizing the central operation.
–The bigg= est complaint was that “national” was not customer-oriented.
lA change was made to become customer-driven.
–Material= s and training programs were implemented to meet the needs and likes of the division. <= /span>
–A depart= ment could not grow unless it met the customer's (division) needs.