Question

Briefly discuss how a nonprofit's marketing efforts may differ from a for-profit business.

Answer 1

Be it a non-profit business, or a profit one, the ultimate goal is to make money. They all need to make revenue. When it comes to marketing, the same strategy does not fit all. It has to be changed according to the dynamic organization.

1. Generating Revenue in Profit and Non-Profit Organizations:
Profit companies make money because they render products and services to customers. The non-profit organizations make money from donations. This affects how the companies are marketed and what strategies work for them. It is easier for the profit organizations to make money because they sell tangible products and render services to the customers. So, the customers see this as getting something (product or service) for their money's worth. But, it is hard for non-profit organizations to convince people to donate money for a good cause. People are more reluctant to contribute to a reason where they don't get anything in return.

2. Means of Attracting Customers or Donors:
The most important step in the marketing strategy of any organization is to attract customers. Profit-making companies can do so by advertising their products and generating interest in the customers that bring them to buy a product. The marketing strategy used by profit companies to attract customers is by simply educating potential customers about the product and the brand by determining the target market.
Non-profit organizations attract customers by building awareness about a cause or an issue. They see that it appeals to people's emotions. They use educational elements to show what a huge impact it can have just by making a small contribution.

3. Customer Satisfaction:
The profit-making organizations educate the customers about their brand and product/service and build up hype around it. This makes potential customers excited to buy the product. They make efforts to educate the people about the benefits of buying the item. This whole process, if done right will ensure customer satisfaction.
The non-profit organizations make people focus on how satisfying it feels to help others. They create a sense of fulfilment by pulling at people's emotions. They make them realize how lucky they are to have so much in life, yet there are people who are struggling to live and make ends meet. This gives a sense of satisfaction to the customers and helps build a desire in them to support a good cause.

4. Strong Buyer Relationships:
Profit organizations earn the trust of the customers by giving them guaranty and warranty at the time of purchase of the product. In case the customer has a problem with the product, he can approach the store at any time and sought it out. This helps the brand establish a strong relationship with the buyer.
Non-profit organizations want donors to feel connected to the brand deeply. It is important for the non-profit organization to nurture this relationship because it helps establish trust which increases the chances of getting future donations.