Final answer:
Non-profit organizations engage in marketing to attract members and funds, and to develop services that fulfill their missions. This differs from for-profit entities as non-profits do not aim to increase shareholder value but to serve the community and advance their cause.
Step-by-step explanation:
It is imperative that non-profit organizations engage in marketing efforts to achieve success in their operations. Unlike for-profit businesses, non-profits do not exist to make profits for shareholders but rather aim to fulfill charitable, educational, or religious missions. Therefore, the assertion that marketing is essential for increasing the value for shareholders does not apply to these entities. There are several reasons why marketing is crucial for non-profit organizations:
- Attracting membership and much-needed funds is one of the primary reasons non-profit organizations should invest in marketing. Through effective marketing, non-profits can increase their visibility, convey their mission, and engage potential members and donors.
- Another reason why marketing is critical is that it supports these organizations in developing products and services that address the needs of their constituents. Non-profits may offer various services to benefit the community, and marketing can help to tailor these offerings to maximum effect.
While non-profit organizations do contribute to the U.S. economy and face economic pressures, such as layoffs, during recessions, these are not primary reasons for engaging in marketing. Instead, non-profit marketing focuses on expanding reach and resources, and supporting the development and delivery of their services.