Marketing

(ch. 12)

Rec, Parks, and Leisure Service Organization success entails?

(Ch. 12)

3 key items

1. attract sufficient resources
2. convert those resources into programs, facilities, or services
3. distribute those programs or services to various consuming publics

Exchange requires what 2 conditions?

(Ch. 12)

1. two or more parties for the transaction to take place
2. each party must have something that might be valued by the other party

What 3 benefits do consumers of Non-Profit enterprises receive?

(Ch. 12)

1. economic in the form of both goods and services
2. Social in terms of forming community and individual relationships
3. psychological or a sense of well-being

What is the "leisure market"?

(Ch. 12)

A Public

(Ch. 12)

Reciprocal Public

(Ch. 12)

Sought Public

(Ch. 12)

Unwelcome Public

(Ch. 12)

Marketing Segmentation

(Ch. 12)

3 Criteria needed to be met for developing successful market segments

(Ch. 12)

1. Size (should be sufficently large to increase resources)
2. Measurability (demographic variables, populations)
3. Accessibility (ability to communicate)

Three Basic Strategies used to select target markets

(Ch. 12)

1. Undifferentiated marketing
2. Differential marketing
3. Concentrated Strategy

Undifferentiated marketing

(Ch. 12)

Differential Marketing

(Ch. 12)

Concentrated Strategy

(Ch. 12)

Position Marketing

(Ch. 12)

Four P's of Marketing Mix

(Ch. 12)

1. Product (goods/services)
2. Price (actual cost, time, trouble, waiting)
3. Place (availability, accessibility)
4. Promotion (communication)

Pricing should be done in what 3 stages?

(ch. 12)

1. Pricing objective (reasoning for price)
2. Pricing Strategy (Ignoring Costs or Basing Price on Costs; Demand-Oriented Pricing/Competitive-Oriented Pricing)
3. When and whether a Price change is needed and how to implement it (psychology)

Demand-Oriented Pricing

(Ch. 12)

Competition-Oriented Pricing

(Ch. 12)

What are the 4 major decision problems that arise in designing and operating an efficient distribution system?

(Ch. 12)

1. Level and Quality of Customer Service
2. The number and location of Branches
3. The Design of Facilities
4. The Use of Third Parties

Public Relations

(Ch. 12)

touching every part of an organization's operations, it deals with caliber of service (employee manners over the phone, in person, and so on)

• primary communication tool
• influences attitudes
• does not define the goals of the organization

Partnerships and Collaborative Efforts

(Ch. 9)

alliances of two or more organizations who are seeking a win-win situation.

Partnerships are on-going agreements between two or more parties, based upon satisfying specifically identified, mutual needs

Collaboration is a process through which parties who see difference aspects of a problem can explore solutions to go beyond their own limited vision of what is possible

Three phases of Collaboration

(Ch. 9)

1. Problem Setting (define the problem)
2. Direction Setting (establish ground rules)
3. Implementation of the agreement

5 steps to building partnerships

(Ch. 9)

1. Educating oneself
2. Conducting a Needs Assessment and Resources Inventory
3. Identifying perspective partners
4. Developing a partnering proposal
5. Drafting a written document

What do Formal Agreements entail?

(Ch. 9)

Financial Management

(Ch. 11)

6 Financial Management Activities

(Ch. 11)

1. Planning
2. Importation
3. Allocation
4. Control
5. Recording/Reporting
6. Evaluating

Financial Management Planning

(Ch. 11)

Financial Management Importation

(Ch. 11)

Financial Management Allocation

(Ch. 11)

Financial Management Control

(ch. 11)

Financial Management Recording/Reporting

(Ch. 11)

Financial Management Evaluating

(Ch. 11)

6 Sources of Revenue

(Ch. 11)

1. Taxes
2. Fees and Charges
3. Bond Programs
4. Grants
5. Donations
6. Investments

Budget

(Ch. 11)

Budget Cycle

(Ch. 11)

4 Basic Budget Designs

(Ch. 11)

1. Line Item (budget is based on classification of agency; where agency falls on the line determines budget)
2. Program (emphasizes outcomes rather than costs)
3. Performance (breaks down activities into details for the purporse of developing specific cost for each)
4. Zero-Base (organization not allowed to request increase in budget)

Budget Audit

(Ch. 11)

Operating Expenditures

(ch. 11)

Capital Expenditures

(Ch. 11)

Public (gvmnt) Sector:

Taxes, Bonds, Fees/Charges, Sponsorships, Donations, Partnerships

Not-for-profit Sector:

Membership Dues, Gifts/Donations, Fees/Charges, Grants, Sponsorships, 3rd party reimbursement

For-Profit Sector:

Fees/charges, Membership dues, Commerical loans, Sale of Stock, Venture Capital

Comes from a Temporary Source (Grants); can be withdrawn at any time

i.e. in the 60's the Land & Water Conservation fund funded lots of recreational activity

is to bridge the gap between revenues that the agency's budget requires and the amount that the agency expects to derive from other local, state, and federal sources

Makes up a big part of governmental sectors (75%)

usually expressed in terms of dollars and cents per $100 of assessed value

Tax rate = local gvmnt budget - anticipated revenue for other sources/ total assessed value of property (tax base)

tax rate x assessed value = tax revenue due from the property

not for profits, gvmnt buildings, churches do not pay property tax

Used to programs and facilities that can generate money enough to survive and pay for itself (golf course, water park); = money from entrance fees, parking, renting fees, greenfees, etc.

Very beneficial

1. Strongest pledge of local government ususally produces lowest interest cost
2. Administrative aspects of preparing to borrow are simpler and normally cost less
3. Typically sold at competitive sale rather than negotiation, usually reducing the interest cost
4. A vote of the people confirms that the project or program is popularly supported

1. Necessity for vote may delay capital financing
2. Constrained by legal debt limit. Can be a problem if limit is less than state limit because of local legislation.
3. If paid by taxes, may not align benefits cost.
4. Project costs may not be aligned to useful life of improvement.

1. Allow for quick action because voters' approval is not required
2. Do not contribute to legal debt capacity
3. cost of debt is distributed to the benefiting users of the service (entrance fees, etc)
4. Financing costs must be paid within the useful life of the project

1. Usually require a higher interest rate
2. No voter approval; elected officials less accountable
3. Greater preparation and administrative costs
4. More apt to be sold through negotiations, thus increasing interest costs

Money we don't have to pay back, as an organization; used heavily by non-profit sector

• fundraising
• federal grants/state grants (matching contributions) state=PARTF; Federal =LWCF
• private foundations (Lily foundation)
• Corporate Sponsorship
• Individual Donations (land, money, etc.)
• Bequests from wills (someone leave something behind to facility after they are gone)

sets a fund-raising goal for the year and then seeks donors to the fund (United Way, YWCA, Boys & Girls clubs)

1. Recruit them
2. Train Them
3. Evaluate them
4. Recognize them

1. Services constitute a basic human need for greater good of society
2. Families least capable to afford fees are the ones that need it the most
3. Low-income families rely on public services
4. fees and charges appear to be double taxation
5. Fees create a profit orientation thus the philosophy of public service seeming like a hypocrit
6. Fees establish may question whether the agency will maintain governmental immunity in legal cases
7. Tax support may diminish as the public awareness of efforts to render public services self-supporting

-Balance the Budget: cannot spend more that what you bring in, need to be smart on how much money you will have to operate on

-Big Roles: Budget spenders/Budget Cutters

Cutter typically city council or finacial ceo

Doing your budget and justifying it. 3 Strategies:

1. Defend the base: guard against cuts in existing programs
2. increase the base: inch ahead w/ funding for exisiting programs
3. Expanding the Base: Start to add new programs

1. Services-Personnel
2. Services- Contractual
3. Commodities (consumed, worn-out)
4. Materials (permanent in nature, convertable for other uses, tools)
5. Current Charges (rental, insurance)
6. Current Obligations (fixed charges, Social Security, interest on debt)
7. Properties (costs on land, equipment, structures)
8. Debt Payments (annual payments made towards bonds)