Last updated: May 20, 2019
Topic: ArtDesign
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1.0 Introduction
Marketing can be defined as an organisational function and a set of processes for communicating, creating, implementing and delivering value to customers and for managing customer-business relationships in a way that will benefit both the organisation and the stakeholders involved. Such processes succeed in moving people closer to making a decision to purchase and facilitate a sale. In the long run, these processes will anticipate, identify and try to satisfy customer requirements successfully and profitably. Marketing according to the Chartered Institute of Marketing[1], does involve all ranges of organisation s whether it is a profit making organisation or a non-profit organisation. All these groups of organisation s have their strategies focused on two factors (Lancaster, 1999). One is the acquisition (recruitment of new customers) and the other is base management (retaining and expansion of existing customers).

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2.0 Similarities
Marketing for ‘profit’ making and ‘no profit’ have some similar aspects[2] that both need to adopt in order to compete favourably because in any case each group has the challenge of competition These aspects will range from resource allocation, offerings, relationships, business models to customer satisfaction.

2.1 Resource allocation
It is obvious that companies with greater number of resources compete favourably with their competitors for limited market opportunities and it applies to both these resources include;

Financial-cash and cash reserves
Physical-plant and equipment
Human-knowledge and skills
Legal-patents and trademarks
Organisation al-policies, structure and competencies
Informational-knowledge of competitors and consumers
2.2 Relationships
In both situations relationships is very important between the organisation s and the target customers. Good relationships will result in retaining not only the confidence of the customers but also to reach out for more customers through the existing customers.

2.3 Management
Planning, analyses, control and implementation are managerial functions that are performed by a management team of an organisation. For both profit and non-profit making organisation, marketing requires a good management team to oversee the primary needs of their customers. They review marketing programs and monitor the reaction of the market. It is like asking a passer-by in a shopping mall to stop and taste the smell, consistency or odour of a product and then decide to either buy it or not.

2.4 Market strategies
Both profit and non profit marketing entails the design, implementation of strategies to market their services and products effectively. Regardless of an organisation s mission, goals or objective, marketing strategies are a must. This is a planning process that allows organisations to concentrate its resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. It serves as the fundamental underpinning of marketing plans designed to reach an organisation s marketing goals, policies and action tactics into a cohesive whole. Strategies based on market dominance under this form organisation s are classified based on the market share or dominance of organisation they are as follows, leader, challenger and follower.

Porter generic strategies-this is a strategy on the dimensions of the strategic scope meaning the market penetration and strategic strength referring to the firms, sustainable competitive advantage such as cost leadership, product differentiation and market segmentation.
Innovation strategies- this deals with the firm’s rate of new product development and business model innovation.
Growth strategies-this describes how the firm should grow it is normally done by either of the ways:-horizontal integration, vertical integration, diversification or intensification. (Kotler, 1996)
3.0 Differences
3.1 ‘Profit making’ marketing
Profit marketing entails the principle that it is the job of the marketer to provide the highest quality service, high profitability and productivity levels (Lancaster, 1999). When looking at profit marketing, an understanding of long term relationships with the customer is considered. In this case, the organisation is focused on both the market and the customer’s attitude. Such organisations first determine the desires and needs for its potential customers and then from that build the product or service. Once they convert the prospective buyer, they develop base management which shifts the marketer to building a relationship, nurture links and improve the product or service continuously hence protect the business from     competitive encroachment. In this kind of business, the competition is very high and competitors are very many in the market. To cope up with this challenge, a marketing strategy is required. The strategy adopted by most profit making organisation s is the operational marketing which executes marketing functions to attract and keep customers and to maximize the value derived. (Kotler, 1996)


3.1.1 Principles of profit marketing
In contrary to non-profit marketing sector, the organisations here have no business working under a loss. The main aim of marketing is therefore to maximize the amount of profit while minimizing the cost.  The following marketing principles are applied; Choice of product

The product to be chosen in this case is normally in conjunction with what the customers need. The demand and supply forces should be weighed very well in order to come up with something which will be easier to market. An example is the selling of Toyota cars in the U.S. It is known that Toyota models are very cheap, comfortable, safe and low fuel effective. Marketing of such automobiles will be easier in the U.S. Target market analysis

The target market analysis will be very crucial because these factors will guide in the creation of a marketing strategy. Cultural, opportunity, economic and environmental analyses help the marketer know more about the target market. Using the example above, the analyses of the U.S market will be to look into the population statistics of people in the U.S, diverse cultures, legal factors, price regulations, trade tariffs, political trends and economic analyses such as the GDP, currency value etc. Market entry strategy

Market entry strategies[3] in this case are many but depend on the costs of marketing and the sales force.

Low price strategy-n a penetration price is necessary to allow  more products to sell at first but when it catches up, other pricing strategies are adopted
Product adoption strategy- making modifications to existing product
Availability and security strategy- countering perceived risks by overcoming transport risks
Technical strategy- demonstration of superior products
Total adaptation and conformity strategy- usually a foreign producer gives a straight copy to his/her customers Product branding

A good brand name should be; legally protect-able, easy to pronounce, easy to remember, easy to recognize and to attract attention. There are different kinds of brands that can be applied by Aston Martin limited, these are; Premium brands, Economy brands, fighting brand, and licensing brand. To market effectively in the U.S where almost all leading companies in the world are located, then there is need to brand the Toyota vehicles with something like, ‘Marion Jones’ and it will be easily noticed that it is in the market. Pricing

There are many ways by which Toyota can use to price its product in U.S. A price matrix[4] will be suitable that will incorporate factors such as demand, supply, quality and economy. The methods of pricing are;

i.            Premium pricing- use of high price which indicates uniqueness about Aston product. This approach is applicable where a substantial competitive advantage is in existence such as for luxuries.

ii.            Penetration pricing- the price for the car can be set to be lower than what is offered by other competitors so as to gain a market share.

iii.            Economy pricing- cost of marketing and manufacture are kept at a minimum hence becomes a no frills low price for a product.

iv.            Other pricing methods are; price skimming, psychological pricing, product line pricing, optional product price, captive product pricing etc.


3.1.2 Communications
Communications are crucial for the creation of good public image for the company. Marketing plans and strategies are usually made easier when there are good public relations. Using the same Toyota product, the communication between the Japanese manufacturers and the U.S car market may be in the form of internet marketing, radio advertising, news papers, billboards etc.


3.1.3 Sales force
The sales force of a profit making organisation comprises of professionals that originate from the organisation al structure. This sales team includes all the staff who will take part in the marketing and selling process; the sales staff, professional marketers and the sales management team. They are responsible for ensuring that market information is collected, researched and analysed. The sales force for Toyota Company in the U.S is composed of the technical team, Toyota promotion companies and the Trade and industry Department of Japan who are responsible for providing the logistics for the Toyota marketing team.

3.1.4 Marketing mix
A marketing mix is usually used especially on branding and advertising and as argued by Jerome McCarthy, the populous four Ps of marketing are utilized, these are;

Product-product marketing and management aspects deal with the specifications of the actual good or services and how it relates to customer needs.
Pricing-it is the process of setting a price for a product. It is not necessarily fixing a monetary value but simply what is exchanged for the product or service at stake e.g. attention, time etc
Promotion-promotion comes in various forms-personal selling, publicity, sales promotion or advertising and it refers to the various methods of convincing the customers to buy the brand, product or company.
Placement-it is also the distribution modes which refer to how the product gets to the customer. For example, placement of a coffee product can be the channel through which coffee is produced, manufactured and retailed in shops and hotel. (Kotler, 1996)
3.2 ‘Non-profit’ marketing
With a crowded marketplace, the non-profit sector needs to develop well defined niche for its marketing plan (Dibb, 2001) most non-profit organisation s do not sell products but rather their organisation ’s ideas, mission, services or programs. In a world where technology is changing faster, and information is at everybody’s fingertips, then a strong image is the key to awareness within the community or the target audience. To develop and maintain a visible and credible identity through marketing will lead to increased local and international support for the organisation.

3.2.1 Principles of non-profit marketing
Marketing principle for the non-profit organisation s was first designed by the marketing genius, Philip Kotler[5] in 1975 when he wrote about ‘marketing for the non-profit community”. He quoted the following principles as a must for every marketer in non-profit making organisation s.

Defining who the ‘customers are’
Measuring the needs of these’ customers’
Creating a visual identity
Select and use of appropriate media data
Designing programs  that will meet ‘customers’ satisfaction
Analyzing those results to improve its services
Finally, communicating the above to potential donors and other stakeholders
3.2.2 Community service organisation s e.g. World Vision
Many non-profit organisation s like World Vision believe on the premise that their programs and services will sell themselves based on their inherent achievements. In fact, even the best programs will fade unless these organisations spread the information about their mission to other groups, businesses, association and individuals and continually maintain that level of awareness within them. Through communication, change is advocated and understanding built. World Vision will need to implement a marketing strategy just as in the case of a profit making business. In an attempt to stand tall from the many non-profit organisation s being formed every day which offer the same service as World Vision, and become competitive in their service provision, then a good marketing plan is required. Services must be superior in order to meet the demand from their customers. In addition, a non-profit organisation must meet an un-provided need within a community which other organisation s also involve in, for example World Vision serves to give food to the poor people in third world countries. In order to market their relief services World Vision need to move around with the press or create their own documentaries and broadcast it via the existing media houses[6]. They needed to keep up with the struggle for limited resources offered by donors or the governments who fund not only the World Vision but other charitable organisation s.


3.2.3 Mission statement
When starting to form such an organisation  marketing strategy, the needs of the founder or the people involved normally is taken into account and it begins by identifying the benevolent goals and objectives that will inspire all the stakeholders. A mission statement defining the overall purpose of the organisation must be stated clearly. World Vision with a mission such as ‘to provide quality and equal basic needs to all humanity’ will be very appealing to all the people and organisation s funding it. The ability of World Vision organisation to continually adjust its services to suit customer’s needs is the key for its financial survival.

3.2.4 Fundraising
For the two last decades, competition between charitable organisation s for diminishing financial resources has inspired them to embrace new skills that will make it possible to improve their fundraising ability while serving their customers. Governments and donors are willing to support organisations which are well known. For instance, where there are conflicts e.g. the recent fighting in Sudan, World Vision was the first to reach there and provide humanitarian assistance. If such organisations are willing to organize a fundraising, then it will be easier for World Vision to market itself and get assistance very quickly. The level of satisfaction of the customers of the organisation’s services determines the success of the organisation.


3.2.5 Effective communication
This is the most important section for the non-profit sector when dealing with marketing. This is so because unlike in the profit making sector where the product if marketed well can be sold regardless of the quality or image of the company selling it[7]. The image of the organisation determines what both the donor for funding groups will give. The question which marketers in the non-profit sector need to ask themselves is, ‘how many people in the community are aware of the good work your organisation is doing?’ and ‘how many donors and private foundations see the financial relevance to provide grants to your organisation?’ with these questions in mind, an idea of effective communication should come into the marketing team. A foundation such as the Bill Clinton Foundation is established mainly because of the political inclination of the founder. Everybody knows about Bill Clinton in the world today. Such kind of foundation will require little communication investment in order to market its services. But for other organisation s in the non-profit sector, good communication will create a consistent image that will enhance the ability of both the donors and the locals to contribute towards a campaign or a project.


4.0 Conclusion
The difference and similarities between marketing in ‘for profit’ and ‘no profit sector’ are very insignificant in that ‘for profit’ organisation s deal with both products and services while ‘no profit sector’ dwell on services. Since it is complicated to market successfully a service then the marketers in this sector needs to equip themselves with more skills to reach their organisation’s goals and objective. It is therefore prudent to conclude that the differences and similarities between marketing in “for profit” and “no profit sector” are more perceptual than substantive.




5.0 References
Dibb, S. (2001): Non-profit Marketing, Concepts and Strategies; 4th European Edition Houghton Mifflin, Boston


Kotler, P.  (1996): Principles of Marketing; 4th European Edition Prentice Hall. Harlow (UK)


Lancaster, G. and Massingham, L. (1999): Essentials of Profit Marketing; Oxford Press, UK


Mark, D. (2001): Principles and Practice of Marketing; 3rd Edition of Chartered Institute of Marketing, Washington, U.S


[1] Mark, D. (2001): Principles and Practice of Marketing; 3rd Edition of Chartered Institute of Marketing, Washington, U.S
[2] Kotler, P.  (1996): Principles of Marketing; 4th European Edition Prentice Hall. Harlow (UK)
[3] Lancaster, G. and Massingham, L. (1999): Essentials of Profit Marketing; Oxford Press, UK.
[4] Lancaster, G. and Massingham, L. (1999): Essentials of Profit Marketing; Oxford Press, UK.
[5] Kotler, P.  (1996): Principles of Marketing; 4th European Edition Prentice Hall. Harlow (UK)
[6] Dibb, S. (2001): Non-profit Marketing, Concepts and Strategies; 4th European Edition Houghton Mifflin, Boston.


[7] Kotler, P.  (1996): Principles of Marketing; 4th European Edition Prentice Hall. Harlow (UK)