Marketingfor Profit and Non-Profit Organizations
Theconventional marketing strategies that are applied in the service andmanufacturing sectors may not be applicable in the area of health.Healthcare organizations use marketing strategies that are heavilyinfluenced by external forces (Astuti& Nagase, 2014).For example, patients usually require a certain amount of empathywhen they visit a hospital since they feel a certain degree ofphysical or emotional discomfort. Thus, the demands of the healthindustry separate it from those of other sectors. A factor such asthe interaction of a patient with his physician will determinewhether that patient will become loyal or not. In essence, thepatient will feel at ease if the services that he receives produce apositive psychological and physical reaction. Considering theseassertions, the marketing concepts and strategies that areappropriate in other trades may not work in the healthcare industrybecause consumers cannot avoid or delay consumption because theyprefer receiving treatment from a particular health institution.
Marketingin the healthcare industry has become more of a necessity than aluxury. Although patients cannot delay using the services that aparticular health care institution provides, research reveals thatpatients can become loyal to the institutions that meet their needs.Thus, every contact between a client and a phase of the servicedistribution system is a chance to assess the quality of assistancethat the health provider offers. Such services can be evaluated interms of the opinion of the patient or the manner in which aphysician or nurse interacts with his patient. In this regard, themanner in which a provider communicates with his patient is moreimportant than the healthcare environment because the patient is moreinterested in recovering from his ailment. Nonetheless, everythingthat the patient feels, hears, sees, and experiences in a healthcareinstitution will be critical to building his trust in theorganization.
Themarketing strategies of for-profit and nonprofit organizations aresimilar however, the intentions of applying these techniques aredifferent. For example, both profit and nonprofit organizations focuson financial goals. Profit making organizations concentrate onpricing their products ideally to build strong relationships withtheir clients and maximize profits (Gherasim,2012).Conversely, nonprofit organizations place emphasis on the developmentof stringent financial goals and using tests of performance toevaluate progress (ReyGarcía, Álvarez González, & Bello Acebrón, 2012).Also, both for-profit and nonprofit institutions use corporate socialresponsibility to gain an upper advantage over the competition.Commercial organizations use this approach to enhance their presencein the market (Rangan,Chase, & Karim, 2012).Nonprofit groups, on the other hand, use corporate socialresponsibility to create shared value, and, by extension, buildpartnerships between corporations and nonprofits (ReyGarcía, Álvarez González, & Bello Acebrón, 2012).
Transitioningfrom a profit to a nonprofit organization requires one to develop amarketing strategy that fits a nonprofit entity. The marketingstrategy of a for-profit health organization is usually developed toaware the potential customers of the existence of a particular healthservice in their area of residence (Astuti& Nagase, 2014).The intention of this kind of marketing is to sell the variousservices that an organization provides to the target population.Thus, the health agency usually retains the money, and the customersenjoy the services that they receive. With these assertions in mind,if I were the manager of a for profit organization that hadtransitioned to a nonprofit organization, I would change themarketing strategy of my organization to market its cause. Theprimary aim of this approach would be to raise awareness among themembers of the public to gain support in terms of financial orvolunteer services. The “clients,” therefore, would be offeringmoney or services to the organization so as to get the opportunity tobe a part of the group that contributes to a particular cause. Justas in the for-profit entity, the nonprofit organization retains theproceeds that it receives from the public. However, these funds areusually channeled to supporting the cause of the organization.
Astuti,H. & Nagase, K. (2014). PATIENT LOYALTY TO HEALTHCAREORGANIZATIONS: RELATIONSHIP MARKETING AND SATISFACTION. InternationalJournal Of Management And Marketing Research, 7(2).Retrieved fromhttp://www.theibfr2.com/RePEc/ibf/ijmmre/ijmmr-v7n2-2014/IJMMR-V7N2-2014-4.pdf
Gherasim,A. (2012). Prices Marketing Strategies, 15(2).Retrieved fromhttp://www.ugb.ro/etc/etc2012no2/27_Gherasim_A_final.pdf
Rangan,K., Chase, L., & Karim, S. (2012). Why Every Company Needs a CSRStrategy and How to Build It, 2 – 4. Retrieved fromhttp://www.hbs.edu/faculty/Publication%20Files/12-088.pdf
ReyGarcía, M., Álvarez González, L., & Bello Acebrón, L. (2012).The untapped potential of marketing for evaluating the effectivenessof nonprofit organizations: a framework proposal. InternationalReview On Public And Nonprofit Marketing, 10(2),87-102. http://dx.doi.org/10.1007/s12208-012-0085-1