Marketing

MARKETING 5

for profit entities and marketing for not-for profit entities aresimilar and equally different on the same breath. forprofit seeks to make profit as the name suggests while marketingnon-profit seeks to build awareness about an issue. in bothorganizations is also similar due to the fact that both entities haveto consider basic elements in marketing such as their target marketand both seek to generate revenue at the end of the day. While thereare some similarities in marketing for profit and marketing fornot-for profit organizations the main differences in marketingbetween the two organizations is both organizations have to considervarious marketing elements however it is the way the twoorganizations conduct their business that makes the difference. Inthis essay, the author will discuss the similarities and differencesin marketing for not-for profit services and marketing for profitservices. for profit and marketing for not-for profit issimilar due to the fact that both organizations use marketing inorder to generate revenues.

Revenuesgeneration is key in any organization and it does not matter whetheran organization is a profit making entity or a not-profit makingorganization. Revenue helps an organization grow. However, there is adifference in the way the revenue between the is entities isexecuted. In for profit organizations, marketing is conducted inorder to drive the sales of products up. In other words, theorganization generates revenue through the sale of goods andservices. Therefore, the marketing strategy used in profit makingbusiness is titled towards making the customers come back for asimilar experience hence generating more revenue. When it comes tonot-for profit organizations, the revenue is generated throughdonations. This is method of generating revenues for non-profitmaking organizations is different in that it does not involve theexchange the goods and services for money but instead relies on thepeople’s realization on the need to make a difference in thesociety. Therefore, the marketing strategy used has to changepeople’s mindset and help them resist about thinking aboutthemselves and rather think about making a difference(Speier,2015).

Anothersimilarity in marketing for profit and marketing for not-for profitis that both entities have to answer the question of who is theirtarget market. The target market is the audience a marketing strategyintends to influence. Both entities have to know who their targetmarket is before embarking on a given marketing strategy. However,just like in revenue generation both companies have to use differentstrategies in marketing their products to their target market. Forprofit organizations educate their target market about their productsand they spend time showing the audience what benefits the consumerwill experience from using the products. On the other hand, not-forprofit organizations attract their target market through buildingawareness on certain issues with the hope that the information willillicit certain emotions. In turn the target audience will becompelled to make a donation that will go towards changing the stateof affairs.

Themost notable difference between marketing for profit and marketingfor not-for profit organizations is the purpose. Profit makingentities seek to make money and the purpose of marketing infor-profit entities is to create value for the consumers. For profitorganizations have to make the consumer believe that their needs willbe met as this the only way the customers will make the purchase. Thebranding used in for profit organizations seeks to emphasizeindividualism because it is all about making the customer happy.

Thesituation is different in not-for profit organizations in that theneed to make profit is not the motivating factor. Therefore, themarketing strategy used in such organizations seeks to resonate withtarget audience in helping them achieve their goals. This is why thebranding in not-for profit organizations is always modest as opposedto that in for profit organizations(Lorette,2015).The branding in not-for profit organizations seeks to bring thepeople together and in most cases utilizes the words we, all and theenvironment such words that resonate with each individual in thesociety.

Bothfor profit organizations and not-for profit organizations seek todevelop relationships between the buyer and the organization and theorganization and a donor for the case of not-for profitorganizations. Building relationships is especially important fororganizations because most of the buyers and donors thatorganizations have are comprised of repeat customers and donors. Forprofit organizations put more emphasis on building relationships whencompared to their non-profit counterparts. The marketing servicesutilized in for profit organizations seek to enquire if the customerswere satisfied by the company’s product and services. This isespecially the case when customers spend a lot of money in purchasingexpensive or durable products. However, in not-for profitorganizations, it is all about establishing trust with the donor andconnecting with them.

Inconclusion, for profit marketing services are similar but differentto those used in not-for profit entities. The reason behind thedifference is the fact that both institutions have different purposesbut at the end of the day the end is the same which is to generatemoney and grow.

References

Lorette,K. (2015). About in Non-Profit Organizations.Retrieved April 21, 2015, from Chron:http://smallbusiness.chron.com/marketing-non-profit-organizations-747.html

Speier,K. (2015, February 10). For-Profit vs. Nonprofit Businesses: What Are the Differences?Retrieved April 21, 2015, from Main Street Host:http://blog.mainstreethost.com/for-profit-vs-nonprofit-business-marketing