Responses

Difference Between For Profit and Not For Profit Marketing

The purpose of for-profit and not for-profit organizations is to make money. For this purpose marketing is used in for-profit businesses to sell the goods and services and to generate profits and in return owners get profits. Not for profits business strategy is different. They fund their mission by raising money for example in charitable work, any school etc.

Funding is the main difference between for profit and not-for profit businesses. For-profit organization customers are encouraged to buy the goods and in not for-profit organization customers are encouraged to donate.

For profit business marketing: The strategy of for-profit business is “u need something? Buy from us”. In return customers pay and they get the desired goods and when they use goods they feel self-satisfaction (McDonald & Wilson 2016). Not for profit businesses marketing: They encourage the customers to give them funds and in return the customers don’t take anything (physical). They give donations to any shelter house, schools, hospitals etc. this is all about ethics and emotions of customers. For example somebody gave a donation to a hospital so they are happy that they saved somebody’s life or for the betterment of the hospital facilities (Fine, S 2017). 

In a non-profit organization if money is spent on marketing then it cannot be helpful for the organization. They cannot run campaigns but advertise only on social media, for example people will get to know from social media that some hospital needs funds. So people will donate after knowing it while in for profit organization they spend a lot of money so that customers will be attracted towards them. As they need a large quantity of customers so they also give free samples it costs them a lot and in return they get a lot profit.

References

McDonald, M., & Wilson, H. (2016). Marketing Plans: How to prepare them, how to profit from them. John Wiley & Sons.

Fine, S. H. (2017). Marketing the public sector: Promoting the causes of public and nonprofit agencies. Routledge.