Techniques for for-Profit and Non-Profit Organizations, Essay Example

Marketing techniques for for-profit and non-profit organizations are similar. However, it is essential to emphasize the fact that the primary goal of non-profit groups is to encourage people to give money or goods while the primary goal of for-profit companies is to try to get people to buy something. As a consequence, the marketing techniques used by each type of company will be similar, but their differences will lie in the fact that each type of company has a different promotions goal. A summary of the differences in marketing techniques that will be utilized by for-profit and non-profit organizations is discussed below.

For-profit organizations typically work with different variables than non-profit organizations. In for-profit marketing, the service is typically at a set price, the goods are both tangible and measurable, all transactions conducted are typically one-way, and good service will increase the likelihood of repeat customers. In non-profit organizations the amount of money earned will depend upon a particular donor, non-tangible goods must be promoted through awareness, they must appeal to how their business will help individuals other than the donor, transactions are typically two-way, and experience with the organization typically encourages repeat donors (Dilenschneider, 2010).

Some of the marketing techniques that are used by both non-profit and for-profit organizations include using a website to promote the product or service, direct mail advertisements such as event announcement for non-profits and coupon for for-profits, displaying advertisements in high traffic locations such as television or transportation hubs, and occasional public relation events that help make the population aware of the product or service (TheNonProfit Times, 2012).

As a manager of a start-up healthcare organization that previously had a for-profit structure, but has achieved non-profit status, several alterations in my marketing strategy will need to be made. Firstly, it is essential to consider the product that is being sold. When the product was for-profit, it likely had a different target market than the company will need to market to now. In addition, the way that the company will raise funds will differ According to “Strategies for Introducing Marketing into Nonprofit Organizations”, a necessary first step in marketing a nonprofit good or service is to research the grants and other forms of financial support that are available to get the initiative started (Kotler, 1979). In the case of this new company, it is necessary to begin this process from scratch. When the company was primarily for-profit, funds were gained from sales. In this case, funds must be obtained by earning donations and gifts, and services will be provided by using these donations and gifts. It is therefore essential for the company to conduct research to determine which organizations and individuals are most likely to contribute funds to the organization. Next, it must determine who will benefit from the goods and services, and from this group determine which category donors would be most willing to donate to.

An example of the aforementioned processes is a business that distributed medical equipment to homes in exchange for payment. If the company were to switch to a non-profit model, it must learn how to gain income from individuals that are not their clients. Furthermore, their target population will change. While the company may have originally delivered the equipment to anyone who would be willing to pay for its services, it may now prefer to work with groups such as terminally ill children and geriatric patients. If the company is able to reach donors who are sympathetic to these specific groups, the newly formed non-profit company will be more likely to earn the funds it needs to stay open.

An article entitled “Marketing Planning in the Public and Non-profit Sectors” focuses on the need of non-profit organizations to develop annual marketing plans (Cousins, 1990). In the case of the newly developed company, it is possible that they will be able to use a similar marketing plan as the one that was used when they were for-profit. However, it would be necessary for them to consider that the target market has changed for both donors and the client. If it is found that a major adjustment is not necessary, it is certainly possible for their former plan to be adapted. Furthermore, certain marketing techniques should be added or subtracted based on the needs of the clients or their ability to appeal to the correct audience.

For example, a major marketing strategy that the for-profit company could have had to advertise its product is television commercials. If the non-profit company decided to maintain this strategy, it would likely perform well in reaching the new target population. However, promotional items such as coupons or discounts offered by the for-profit company would be irrelevant in this situation. To bypass this, it would be useful to focus on communication between the company and its donors or target market. To do so, it could hold events that discuss how this service changes the life of many people in need and exposes the costs of the product when it is being sold to the individual rather than donated.

References

Cousins L. (1990). Marketing Planning in the Public and Non-profit Sectors. European Journal of Marketing, (24)7: 15 – 30.

Dilenschneider C. (2010). The Contrasting Mindsets of Nonprofit and For-Profit Marketers. Retrieved from http://colleendilen.com/2010/06/18/the-contrasting-mindsets-of-nonprofit-and-for-profit-marketers/

Kotler P. (1979). Strategies for Introducing Marketing into Nonprofit Organizations. Journal of Marketing, 43: 37-44.

The NonProfit Times. (2012). 10 Vital Nonprofit Marketing Techniques. Retrieved from http://www.thenonprofittimes.com/news-articles/10-vital-nonprofit-marketing-techniques/