Question 1

McMaster Children's Hospital in Hamilton, Ontario, wants to notify the community about its upcoming rummage sale. As an experienced marketer and director of the program, what would you request when you visit several local radio and televisions stations?

Accepted Answer

The best choice would be public service advertising as the hospital is a non-profit organization and the rummage sale is for a good cause. Public service advertising is a type of advertising that is intended to promote a non-profit organization or a social cause. It is often provided free of charge by media outlets as a public service to the community.

Question 2

International Readers is a not-for-profit that helps teach immigrants to Canada to read and write in English. They have been told that they can advertise on local TV and not be charged money. What is this also known as?

Accepted Answer

This is known as public service advertising, which is also often referred to as PSA. It is a type of advertising that promotes important social messages or causes without charging the organization for advertising space. In this case, the goal is to promote literacy and language skills among new immigrants to Canada.

Question 3

Which of the following refers to the efforts of public and private nonprofit firms to bring about mutually satisfying exchanges with their target markets?

Accepted Answer

Nonprofit organization marketing refers to the efforts of public and private nonprofit firms to bring about mutually satisfying exchanges with their target markets. Nonprofit organizations operate with social objectives rather than for profit. They seek to attract donors, volunteers, and other supporters to enable them to achieve their mission.

Question 4

The Bridgespan Group is a not-for-profit strategic consulting firm dedicated to providing guidance for nonprofits. Which of the following would NOT be considered its target markets?

Accepted Answer

The Bridgespan Group is a consulting firm, and its target markets are non-profit organizations that need guidance. Its own administrative board would not be considered a target market because it is not a separate non-profit organization outside of Bridgespan.

Question 5

Habitat for Humanity renovates vacant houses and sells them at no-interest mortgage rates to low-income homebuyers. The organization relies on volunteers to provide the labour and funding for its renovations. How would Habitat for Humanity be classified?

Accepted Answer

Habitat for Humanity is a nonprofit organization as it operates for a social cause (providing affordable housing to low-income individuals) and does not operate for the purpose of making a profit.

Question 6

Mandeep is a local lawyer. She adopts underprivileged children based in Africa and pays for their health care and education. What is this also known as?

Accepted Answer

This situation is an example of separation between payers and users, where Mandeep, the payer, provides financial support for the healthcare and education of the children, who are the users.

Question 7

Why do nonprofit organizations face a unique challenge in terms of their target market?

Accepted Answer

The answer of Why do nonprofit organizations face a unique...

Question 8

Which of the following is NOT a strategy for nonprofit organizations?

Accepted Answer

Nonprofit organizations primarily aim to serve their communities or advance their causes rather than making profits for the employees. Their strategies focus on identifying target customers, specifying objectives, and sometimes deciding on prices for services or products, but not on generating profits for distribution among employees.

Question 9

Which of the following includes marketing activities conducted by individuals and organizations to achieve some goal other than normal business goals, such as profit, market share, or return on investment?

Accepted Answer

Nonprofit organization marketing involves marketing activities conducted by individuals and organizations to achieve some goal other than normal business goals, such as promoting social welfare, raising awareness, or achieving a specific cause. Cause-related sponsorship and social sponsorship are specific types of nonprofit organization marketing, but the term encompasses a broader range of activities. Service marketing, on the other hand, relates to marketing efforts aimed at promoting services rather than tangible products.

Question 10

What is a unique aspect of nonprofit organizational marketing strategies?

Accepted Answer

The answer of What is a unique aspect of nonprofit...

Question 11

In a nonprofit organization, which of the following are often concerned with partially or fully defraying costs rather than achieving a profit?

Accepted Answer

Nonprofit organizations often use pricing objectives to set prices that help cover costs rather than generate profit, aligning with their mission to serve rather than to earn profit.

Question 12

The International Society of Hospitality Purchasers raised $62,000 in donated goods for Gifts in Kind International, a nonprofit group that gathers and distributes new and used merchandise to charities nationwide. What do the society and its members, as well as the charities who are beneficiaries of the merchandise, compose?

Accepted Answer

The society and its members, along with the charities benefiting from the merchandise, compose the organization's target markets, as they are the groups that the organization aims to serve and engage with.

Question 13

Gifts in Kind International is a nonprofit organization that gathers new and used merchandise and distributes it to charities nationwide. Why might traditional promotional tools be inadequate to motivate its target markets?

Accepted Answer

Traditional promotional tools such as advertising and sales promotion are designed to motivate consumers to buy a product or service. However, in the case of Gifts in Kind International, the target market is primarily charities and nonprofit organizations who are not motivated by consumer involvement in the same way. Therefore, traditional promotional tools may not be effective in reaching this target market.

Question 14

Which of the following is NOT an example of a nonprofit organization?

Accepted Answer

Royal Sun Alliance is an insurance company, which is a for-profit organization. The other options (B, C, and D) are examples of nonprofit organizations.

Question 15

Dogs with Wings is a non-profit that trains seeing-eye dogs. It regularly asks for donations. When someone donates, the benefits of these donations are indirect to the donators. Bearing this in mind, what do the fundraisers from Dogs with Wings regularly face?

Accepted Answer

The fundraisers from Dogs with Wings regularly face low benefit strength because the benefits of the donations are indirect to the donators.

Question 16

Lululemon has grown into an international company specializing in athletic clothing for yoga and running. Lululemon's goal is to raise public awareness of the benefits of active living through building community hubs around the discussion of fitness techniques. What type of strategy is used by Lululemon?

Accepted Answer

Lululemon uses a promotion strategy to raise public awareness of the benefits of active living through building community hubs around the discussion of fitness techniques.

Question 17

One feature that distinguishes nonprofit organization pricing decisions from profit-sector pricing decisions is which of the following?

Accepted Answer

The answer of One feature that distinguishes nonprofit organization pricing...

Question 18

Which of the following statements best describes the marketing activities of a nonprofit organization?

Accepted Answer

Nonprofit organizations often use undifferentiated segmentation strategies because they aim to serve the broadest possible audience to fulfill their mission rather than targeting specific market segments for profit.

Question 19

What is one of the consequences of the Canadian Red Cross's nonprofit orientation?

Accepted Answer

The Canadian Red Cross, as a nonprofit organization, measures its success based on its impact and the fulfillment of its mission rather than financial profitability. This means that its achievements are evaluated in terms of how effectively it provides aid and support, rather than how much profit it generates.

Question 20

According to your text, which of the following statements best describes how a nonprofit organization should design its product offering?

Accepted Answer

The text emphasizes the importance of satisfying the needs of the target market for the success of a nonprofit organization. Therefore, the organization should design its product offering to meet these needs effectively. The other options, such as creating inventory or keeping the product offering simple, are not directly related to the success of the organization or meeting the needs of the target market.

Quiz 12: Services and Nonprofit Organization Marketing