For the individual assignment, a table in Word is fine. You can easily get your points across in the table, there is no need to write an entire paper. You should have three columns, the first listing the bullet points, the second column title “For profit” and the last “Not for profit”.
Create a matrix that contrasts the differences between marketing in for-profit and not-for-profit health care organizations.
Include the following in your matrix:
- Centralized versus decentralized format of management
- Strategic goals of the organizations
- Variation in the access to the capital market
- Strategic marketing differences between these two types of organizations
- Quality attributes of the two types of organizations
- The management of pricing and volume
Cite at least 3 reputable references to support your assignment (e.g., trade or industry publications, government or agency websites, scholarly works, or other sources of similar quality).
Expert Solution Preview
Introduction: Marketing strategies differ significantly between for-profit and not-for-profit healthcare organizations. This matrix will provide a comparison of the differences between these two types of organizations in terms of their management structure, strategic goals, access to capital markets, marketing tactics, quality attributes and management of pricing and volume.
Centralized versus decentralized format of management:
| Point | For-Profit | Not-For-Profit |
|——-|————|—————-|
| Management Structure | Centralized | Decentralized |
| Explanation | Decision-making authority centralizes on the top level, with fewer levels of hierarchy. | Decision-making is shared by several levels, with more levels of hierarchy. |
Strategic goals of the organizations:
| Point | For-Profit | Not-For-Profit |
|——-|————|—————-|
| Strategic Goals | Maximize profits | Maximize service provided |
| Explanation | The primary goal of for-profit organizations is to generate profit for the shareholders. | On the other hand, not-for-profit organizations prioritizes service overhead to maximize social responsibility. |
Variation in the access to the capital market:
| Point | For-Profit | Not-For-Profit |
|——-|————|—————-|
| Capital Market Access | Easy access | Limited Access |
| Explanation | For-profit organizations have fewer restrictions on raising loans and equity for financial purposes. | Not-for-profit organizations focus more on attracting donations instead of acquiring funds from capital markets. |
Strategic marketing differences between these two types of organizations:
| Point | For-Profit | Not-For-Profit |
|——-|————|—————-|
| Marketing Tactics | Drive Sale | Promote Value |
| Explanation | For-profit organizations highlight their products/services using advertisements and increased selling activities different from the value promotion activities from not-for-profit companies. |
Quality attributes of the two types of organizations:
| Point | For-Profit | Not-For-Profit |
|——-|————|—————-|
| Quality Attributes | Profit Margin | Quality Healthcare |
| Explanation | For-profit businesses concentrate on generating profits, and their quality assurance is based on profitability standards. | Quality of healthcare delivery is the primary concern of not-for-profit businesses, ensuring they provide the highest quality care services to their patients regardless of profit orientation. |
The management of pricing and volume:
| Point | For-Profit | Not-For-Profit |
|——-|————|—————-|
| Pricing and Volume | Market-driven techniques | Service-orientation techniques |
| Explanation | For-profit strategies target specific demographics using price segregation technology. Conversely, not-for-profit pricing is based on the cost of the service provided to encourage easy and affordable access to healthcare. |
References:
1. Lawton, A. (2018). Not-for-profit versus for-profit healthcare organizations: Advantages and drawbacks. Healthcare management forum, 31(5), 187-190.
2. Chakraborty, A., & Dobrzykowski, D. D. (2017). Differences between for-profit and nonprofit healthcare providers: A literature review. Journal of Nonprofit & Public Sector Marketing, 29(3), 261-286.
3. Xirasagar, S., Lin, H. C., & Hefner, J. L. (2018). Factors influencing organizational choice between for-profit and not-for-profit ownership structures in hospice services: a population-based study. BMC Health Services Research, 18(1), 542.
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