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nonbusiness marketing organization

Nonbusiness entities are usually non-profit institutions that can and do borrow marketing methods and organization structures from business. There is growing acceptance of the concept that nonprofit institutions, as well as for-profit businesses, serve markets (i.e., customers) and that their success depends on how well they understand and cater to the needs and wants of these markets. Nonbusiness organizations often set marketing goals that are similar to those of business except for the absence of the profit goal. Examples drawn from nonprofit colleges and hospitals and from military organizations will illustrate this point. A major marketing goal of a nonprofit college or hospital is to bring in the income needed to operate the institution. A supportive marketing goal is to attract the number of college students or hospital patients that will fully utilize the institution's facilities. Another supportive marketing goal is to raise specific amounts of money from contributors for capital projects. A military organization is funded by the government and does not raise money. A major marketing goal of the military is to meet recruiting quotas in terms of the quantity and quality of personnel needed to perform its mission. Like companies, nonbusiness institutions can use marketing functions to help in setting their goals such as market research, personal selling, advertising, sales promotion, and product planning and development. Comment: Some nonbusiness organizations are reluctant to use marketing terms for fear of appearing too commercial, although the term marketing is often used. But a salesperson may be called "college representative"; advertising may be called "communications."

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  • Category: Advertising
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