Discuss the differences between a forprofit and a nonprofit

Discuss the differences between a for-profit and a nonprofit organization. Talk about how these organizations\' missions differ and brainstorm the differences and similarities between their marketing mixes.

Solution

A for-profit organization is formed for generating profit from selling its product or services and they retain this profit with them or distribute to its shareholders while a nonprofit organization is formed with a charitable purpose and they use their profit to fulfill that cause. For-profit organizations\' mission generally includes quality product or services to its customers at optimum price for higher customer satisfaction and maximization of shareholders profit. Nonprofit organizations\' mission generally includes promoting a social cause or supporting for a particular view which is related to long-term benefit of the society.

There are many differences and similarities between the marketing mixes of for-profit and a nonprofit organization.

The similarity in marketing mix are target market identification for their product or services, positioning of products, branding of its image, customer relationship management and advertising of its product and services from common media sources.

The differences between the marketing mixes of for-profit and a nonprofit organization are purpose for being in the business. For-profit organization market their product and services which can fulfill the requirement of their customers while a nonprofit organization market their cause where their customers can contribute through buying organization’s product and services and fulfill the requirements of others as the nonprofit organizations will pass their profit to that cause.