To Market or Not To Market: Case Study
Differences Between Profit vs. Nonprofit Organizations
According to Folland, et al., 2013:
Generally, nonprofits do not pay corporate, property, or sales taxes although for-profits do. The only tax advantage enjoyed by for-profits is the ability to write off losses during bad years…On one hand, numerous profit-making firms provide important goods and services to the community, and many provide basic goods, such as food and housing, to the poor. On the other hand, nonprofit firms often serve the well-to-do, and they compete with for-profits. (Folland, et al., 2013, p. 269, 265)
Mission and Problem
“Community Health Care (CHC) is a non-profit health care organization operating out of Anytown, USA. Its mission is to provide routine check-ups and immunizations at no cost to the economically challenged areas of Anytown. CHC secured a small grant from the state and used the vast majority to purchase all necessary equipment, computers, furniture, and a large supply of gloves, syringes, etc. There is a little money left over that has been set aside for purchasing the vaccinations. They originally believed that through their individual professional networks, they would not need to market CHC. They felt offering such a valuable service for free would result in packed waiting rooms. Unfortunately, the current use of their services is only at an estimated 7% of original expectations. Several individuals within CHC have mentioned shutting down. Others, including [me], want to try to market CHC to the community.”
Because CHC is a non-profit organization and it does not pursue profit for its own benefit as in the case of a for-profit organization; many in CHC including me believe that we must invest in marketing strategies because it would be beneficial to do so, as it would help us grow, fund, and prosper. Without marketing, our mission