14/06/2013

Non-Business Marketing

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Non-business marketing includes marketing activities conducted by individuals and organizations to achieve some goals other than normal business goals such as profit, market share, or return on investment. Non-business marketing can be divided into two viz: social marketing and non-profit organization marketing.


Social Marketing:

 

This concerns the application of marketing methods to spread socially beneficial ideals and/or behaviors. Social marketing involves efforts to get people to seek help for social problems such as alcohol, drug dependency, and child or spouse abuse. Social marketing is also used to urge people to vote, stop smoking,
refrain from polluting, avoid forest fires, contribute to a foundation for AIDS research and other socially beneficially causes.


Non-Profit Organization Marketing


Non-profit organization marketing involves the application of marketing concepts and techniques to organizations such as the hospitals, churches, mosques, social institutions such as universities and charitable organizations. These organizations have services and ideas, which they can market to target groups. It, therefore follows that non-profit organization marketing refers to the effort of public and private non-profit organizations to bring about mutually satisfying exchanges with their target market.
Whether it is accepted or not, non-profit organizations perform certain activities which are marketing oriented. It is, therefore important for marketers to understand the various activities of these organizations and the various types of goods and services to consume. The activities performed by these organizations include:

  • Identifying the customers (otherwise called clients, patients, members, sponsors etc) whom they wish to serve or attract.
  • Specifying objectives to be achieved.
  • Developing, managing and eliminating programs and services (product development)
  • Deciding on prizes (fees, duration, tuition, fare, fine etc) to charge.
  • Scheduling and determining where events or programs will be held or services controlled.
  • Communicating their availability through brochures, signs, public service announcements or advertisements.



Difference between Profit Making Marketing and Non-Profit Marketing

    
It has been established that non-profit making organizations engage in exchanges just like the profit-oriented organizations. They must therefore develop marketing strategies that bother on the difference between the two types of organizations.

  1. By meaning, non-profit organizations do not make profit.
  2. As a result of their non-profit making objective, revenue from ordinary sales cannot cover cost; hence they rely on additional revenue from donations and/or tax.
  3. Tension may arise between non-profit organization mission and customer satisfaction especially in the area of stopping people from smoking, drinking, reckless driving.
  4. Most public and non profit organizations are concerned with services and social behaviors rather than manufactured goods.
  5. Non profit organizations face more regulations face more regulations and directions from external sources such as political groups, regulatory agencies, industries and professional associations.
  6. Managers of non-profit organizations are often able to attract donations of money, labor and services.
  7. Non- profit organizations are subjected to more scrutiny from government officials, media and general public who often expect them to uphold higher standards of behavior.

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