Differences and similarities in public sector v.s. private sector marketing.

1. Institute of Management & Sciences (PAK Aims)
Marketing Management
PRIVATE SECTOR & PUBLIC SECTOR
Comparison of Marketing

2. 1
Table of Contents
Starting with Business..................................................................................................................... 3
Basic Forms of Business................................................................................................................. 3
Sole Proprietorships .................................................................................................................... 3
Partnerships................................................................................................................................. 4
Corporations................................................................................................................................ 4
Cooperatives................................................................................................................................ 4
Objectives of Business.................................................................................................................... 5
1. Economic Objectives: ............................................................................................................. 5
2. Social objectives ..................................................................................................................... 6
3. Human Objectives................................................................................................................... 7
4. National Objectives................................................................................................................. 8
Management That Reflects the Business ...................................................................................... 10
What is Market?............................................................................................................................ 10
What is Marketing?....................................................................................................................... 10
What is Marketing Management?................................................................................................. 11
Evolving Marketing Era’s............................................................................................................. 12
The Production Era ................................................................................................................... 12
The Product Era ........................................................................................................................ 12
The Selling/Sales Era................................................................................................................ 12
The Marketing Era .................................................................................................................... 13
The Societal Marketing Era ...................................................................................................... 13
Tools of Marketing Management.................................................................................................. 14
Seven P’s of Marketing Mix..................................................................................................... 14
Four C’s of Marketing Mix....................................................................................................... 16
Private Sector ................................................................................................................................ 17
Objectives of Private Sector...................................................................................................... 18
Public Sector ................................................................................................................................. 18
Objectives of Public Sector....................................................................................................... 18
Range of Business owned at Public Sector............................................................................... 19
Constrains in Public & Private Sector Marketing......................................................................... 20
Legislative restrictions .............................................................................................................. 20

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Political philosophies ................................................................................................................ 20
Lack of physical resources........................................................................................................ 20
Lack of financial resources ....................................................................................................... 20
PEST Analysis of Public & Private Sector ................................................................................... 21
SWOT Analysis of Public Organization....................................................................................... 22
SWOT Analysis of Private Organization...................................................................................... 23
....................................................................................................................................................... 24
Comparison of Public & Private Organisation Marketing............................................................ 24
Challenges in Public Sector Marketing......................................................................................... 24
Types of Marketing in Public Sector ............................................................................................ 25
Marketing of Product & Service ............................................................................................... 26
Social Marketing....................................................................................................................... 26
Policy Marketing....................................................................................................................... 27
DE Marketing or don’t use our Programs marketing................................................................ 27
Challenges in Private Sector Marketing ....................................................................................... 27
Types of Marketing in Private Sector ........................................................................................... 28
Promotional Strategies .............................................................................................................. 29
Online Marketing Strategies ..................................................................................................... 29
Aggressive Advertising............................................................................................................. 29
Use to Electronic and print Media ............................................................................................ 29
Societal Marketing.................................................................................................................... 29
Comparison of Strategies by Public and Private Organizations ................................................... 30
Conclusion .................................................................................................................................... 31

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Marketing Management
Starting with Business
A business, also known as an enterprise or a firm, is an organization involved in the trade of
goods, services, or both to consumers. Businesses are prevalent in capitalist economies, where
most of them are privately owned and provide goods and services to customers in exchange of
other goods, services, or money. Businesses may also be not-for-profit or state-owned. A
business owned by multiple individuals may be referred to as a company.
The etymology of "business" stems from the idea of being busy, and implies socially valuable
and rewarding work. A business can mean a particular organization or a more generalized usage
refers to an entire market sector, i.e. "the music business". Compound forms such as agribusiness
represent subsets of the word's broader meaning, which encompasses all the activity by all the
suppliers of goods and services.
Basic Forms of Business
From a legal point of view, there are four types of businesses:
1. Sole proprietorships
2. Partnerships
3. Corporations
4. Co-operatives
A brief description of each type is followed by a summary of their advantages and disadvantages.
For specific information on how or where to register or incorporate a business, contact your local
Canada Business service center.
Sole Proprietorships
This is the simplest way to set up a business. A sole proprietor is fully responsible for all debts
and obligations related to his or her business. A creditor with a claim against a sole proprietor
has a right against all of his or her assets, whether business or personal. This is known as
unlimited liability.
This type of business comes under provincial jurisdiction. If the proprietor chooses to carry on a
business under a name other than his/her own, he/she must register with the province. Your
business name registration, or renewal of registration, will be valid for a certain number of years.
If a sole proprietor establishes a business in his/her own name, without adding any other words,
it is not necessary to register the business.

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Partnerships
A partnership is an agreement in which two or more persons combine their resources in a
business. In order to establish the terms of the business and to protect partners/shareholders in
the event of disagreement or dissolution of the business, a partnership/shareholders agreement
should be drawn up with the assistance of a lawyer. Partners share in the profits according to the
terms of their agreement.
General Partnership
All members share the management of the business and each is personally liable for all the debts
and obligations of the business. This means that each partner is responsible for and must assume
the consequences of the actions of the other partner(s).
Limited Partnership
Some members are general partners who control and manage the business and may be entitled to
a greater share of the profits, while other partners are limited and contribute only capital. Limited
partners take no part in control or management and are liable for debts to a specified extent only.
A legal document, outlining specific requirements, must be drawn up for a limited partnership.
Corporations
A corporation is a legal entity that is separate from its owners, the shareholders. No shareholder
of a corporation is personally liable for the debts, obligations or acts of the corporation. This type
of business can be incorporated at either the federal or provincial level.
A corporation is identified by the terms "Limited", "Ltd.", "Incorporated", "Inc.", "Corporation",
or "Corp.". Whatever the term, it must appear with the corporate name on all documents,
stationery, and so on, as it appears on the incorporation document.
Private Corporation
A private corporation can be formed by one or more people. A majority of its directors must be
Canadian residents. If none of the directors reside in the province in which it does business, the
corporation must appoint a Power of Attorney who reside in the province. A private corporation
cannot sell shares or securities to the general public.
Public Corporation
A "public corporation" is one that issues securities for public distribution. Besides filing
incorporation documents, a public corporation must file a prospectus with the appropriate
Securities Commission in the province, must employ outside auditors and must distribute semi-
annual financial statements.
Cooperatives
A co-operative is a corporation organized and controlled by its members, who pool resources to
provide themselves and their patrons with goods, services, or other benefits. A cooperative
business structure provides:
 democratic control based on one member one vote;

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 open and voluntary membership;
 Patronage dividends.
Objectives of Business
Every business enterprise has certain objectives which regulate and generate its activities.
Objectives are needed in every area where performance and results directly affect survival and
prosperity of a business. Various objectives of business may be classified into four broad catego-
ries as follows:
1. Economic Objectives:
Business is basically an economic activity. Therefore, its primary objectives are economic in
nature. The main economic objectives of business are as follows:
(i) Earning profits:
A business enterprise is established for earning some income. It is the hope of earning profits
that inspires people to start business. Profit is essential for the survival of every business unit.
Just as a person cannot live without food, a business firm cannot survive without profit. Profits
enable a businessman to stay in business by maintaining intact the wealth producing capacity of
its resources.
Profit is also necessary for the expansion and growth of business. Profits ensure continuous flow
of capital for the modernization and extension of business operations in future. Profit also serves
as the barometer of stability, efficiency and progress of a business enterprise.
(ii) Creating customers:
Profits are not created by God or by the force of nature. They arise from the businessman's
efforts to satisfy the needs and wants of customers.
A businessman can earn profits only when there are enough customers to buy and pay for his
goods and services. In the words of Drucker, "There is only one valid definition of business
purpose; to create a customer.
The customer is the foundation of business and keeps it in existence. It is to supply the customer
that society entrusts wealth-producing resources to a business enterprise."
No business can succeed without providing customers value for their money. Business exists to
satisfy the wants, tastes and preferences of customers.
In order to earn profit, business must supply better, quality goods and services at reasonable
prices. Therefore, creation and satisfaction of customers is an important economic objective of
business.

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Business creates customers through advertising and salesmanship. It satisfies the needs of
customers by producing the required goods and services and by creating utilities.
(iii) Innovations:
Business is an organ of dynamism and change. In these days of competition a business can be
successful only when it creates new designs, better machines, improved techniques, new
varieties, etc. Modern science and technology have created a great scope for innovation in the
business world. Innovation is not confined to the invention of a new machine.
It comprises all efforts made in perfecting the product, minimizing the costs and maximizing
benefits to customers. It involves improvements in management, production, selling servicing,
methods of personnel and accounting, etc. Business firms invest money, time and efforts in
Research and Development (R&D) to introduce innovations.
They develop new technology, introduce new designs and new tools and processes to minimize
costs and to satisfy ever increasing wants of customers. In order to create customers business has
to explore new markets and attract more customers. It has also to retain old customers by
providing better services to them.
2. Social objectives
Business does not exist in a vacuum. It is a part of society. It cannot survive and grow without
the support of society. Business must therefore discharge social responsibilities in addition to
earning profits.
According to Henry Ford, "the primary aim of business should be service and subsidiary aim
should be earning of profit." The socials objectives of business are as follows:
(i) Supplying desired goods at reasonable prices:
Business is expected to supply the goods and services required by the society. Goods and
services should be of good quality and these should be supplied at reasonable prices. It is also the
social obligation of business to avoid malpractices like boarding, Black marketing and
misleading advertising.
(ii) Fair Remuneration to employees:
Employees must be given fair compensation for their work. In addition to wages and salary a
reasonable part of profits should be distributed among employees in recognition of their
contributions. Such sharing of profits will help to increase the motivation and efficiency of
employees.
It is the obligation of business to provide healthy and safe work environment for employees.
Good working conditions are beneficial to the organisations because these help to improve the
productivity of employees and thereby the profits of business.
Employees work day and night to ensure smooth functioning of business. It is, therefore, the duty
of employers to provide hygienic working and living conditions for workers.

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(iii) Employment Generation:
Business should provide opportunities for gainful employment to members of the society. In a
country like India unemployment has become a serious problem and the Government is unable to
offer jobs to all.
Therefore, provision of adequate and full employment opportunities is a significant service to
society. If unemployment problem increases, the socioeconomic environment cannot be
congenial for the growth of business activities.
(iv) Fair return to investor:
Business is expected to pay fair return to shareholders and creditors in the form of dividend and
interest. Investors also expect safety and appreciations of their investment. They should be kept
informed about the financial health and future prospects of business.
(v) Social welfare:
Business should provide support to social, cultural and religious organisations. Business
enterprises can build schools, colleges, libraries, hospitals, sports bodies and research
institutions. They can help non-government organisations (NGOs) like CRY, Help Age, and
others which render services to weaker sections of society.
(vi) Payment of Government Dues:
Every business enterprise should pay tax dues (income tax, sales tax, excise duty, customs duty,
etc.) to the government honestly and at the right time. These direct and indirect taxes provide
revenue to the Government for spending on public welfare.
Business should also abide faithfully by the laws of the country. Thus, businessmen should
pursue those policies and take those actions which are desirable in terms of the objectives and
values of our society.
3. Human Objectives
Business is run by people and for people. Labour is a valuable human element in business.
Human objectives of business are concerned with the well-being of labour. These objectives help
in achieving economic and social objectives of business. Human objectives of business are given
below:
i.Labour welfare:
Business must recognize the dignity of Labour and human factor should be given due
recognition. Proper opportunities should be provided for utilizing individual talents and
satisfying aspirations of workers. Adequate provisions should be made for their health, safety
and social security. Business should ensure job satisfaction and sense of belonging to workers.

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ii. Developing human resources:
Employees must be provided the opportunities for developing new skills and attitudes. Human
resources are the most valuable asset of business and their development will help in the growth
of business.
Business can facilitate self- development of workers by encouraging creativity and innovation
among them. Development of skilled manpower is necessary for the economic development of
the country.
iii. Participative management:
Employees should be allowed to take part in decision making process of business. This will help
in the development of employees. Such participation will also provide valuable information to
management for improving the quality of decisions. Workers' participation in management will
usher in industrial democracy.
iv. Labour management cooperation:
Business should strive for creating and maintaining cordial employer employee relations so as to
ensure peace and progress in industry. Employees should be treated as honorable individuals and
should be kept informed.
4. National Objectives
National objectives of business are as follows:
(i) Optimum utilization of resources:
Business should use the nation's resources in the best possible manner. Judicious allocation and
optimum utilisation of scarce resources is essential for rapid and balanced economic growth of
the country.
Business should produce goods in accordance with national priorities and interests. It should
minimize the wastage of scarce natural resources.
(ii) National self-reliance:
It is the duty of business to help the government in increasing experts and in reducing
dependence on imports. This will help a country to achieve economic independence. This
requires development of new technology and its application in industry.
(iii) Development of small scale Industries:
Big business firms are expected to encourage growth of small scale industries which are
necessary for generating employment. Small scale firms can be developed as ancillaries, which
provide inputs to large scale industries.

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(iv) Development of backward areas:
Business is expected to give preference to the industrialization of backward regions of the
country. Balanced regional development is necessary for peace and progress in the country.
It will also help to raise standard of living in backward areas. Government offers special
incentives to the businessmen who set up factories in notified backward areas.

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Management That Reflects the Business
There are four major pillars or Heads of the Business.
 Financial Management
 Human Resources Management
 Marketing Management
 Operations Management (Administration)
Each pillar is important to the business. But we are concerned with the Marketing
Management more as we are dealing with the marketing of the Public and Private
organizations.
Marketing is more about creating value to the customer about the products and making
your product more viable and consumer friendly.
What is Market?
A medium that allows buyers and sellers of a specific good or service to interact in order to
facilitate an exchange. The price that individuals pay during the transaction may be determined
by a number of factors, but price is often determined by the forces of supply and demand.
What is Marketing?
Marketing is the process of communicating the value of a product or service to customers, for the
purpose of selling that product or service.

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What is Marketing Management?
Marketing management is a business discipline which focuses on the practical application of
marketing techniques and the management of a firm's marketing resources and activities.

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Evolving Marketing Era’s
Phillip Kotler categorized the five major marketing eras that have evolved throughout time.
Some of the concepts developed in each era are still around today, and marketing concept
remnants from each era compete with each other as organizations conduct their marketing
activities.
The Production Era
One of the oldest concept eras, it holds that consumers will favor those products that are widely
available and low in cost. Managers of production-oriented organizations concentrate on
achieving high production efficiency and wide distribution.
The Product Era
This era brought about marketing beliefs that consumers will favor those products that offer the
most quality, performance or innovative features. Marketing managers focus on making superior
products and improving them over time.
Although both production and product are important in the overall mix of healthy marketing,
there can be a problem with the remnants of both the production and product era, as they can
lead to a symptom called marketing myopia. Production- or product-oriented companies tend to
design their product with little or no customer input, as with some car manufacturers and many
insurance and financial products providers. No wonder they are such a hard sell. There is a
danger with developing a love affair with your production efficiency or product and not realizing
that the marketplace may be less turned on. Marketing managers become victims of the “better
mouse trap” fallacy, believing that a better mouse trap will lead people to their door.
The Selling/Sales Era
During this era, the primary marketing concept belief held that consumers if left alone would not
buy enough of the organization’s products; therefore, the organization must undertake an
aggressive selling and promotion effort. The selling concept assumes that the consumer must be
coaxed into buying. It also assumes that the organization has effective selling and promotional
tools to stimulate more buying. Today, this concept is still practiced most aggressively with
unsought goods, such as insurance, funeral plots and even fundraising activity by non-profit
groups. These industries have perfected various sales techniques to locate prospects and hard sell
them on their product benefits. Most firms practice the selling concept when their aim
(knowingly or unknowingly) is to sell what they make rather than make what the market wants.
In today’s competitive environment, most markets are buyer markets and sellers have to
scramble hard for customers. Prospects are bombarded with commercials, print ads, direct mail,
telemarketing and sales calls. At every turn, someone is trying to sell you something.
Unfortunately, as a result, the public often identifies marketing with hard selling and advertising.
Marketing based on hard selling is unhealthy and carries high risks, especially customer
dissatisfaction.
It is a surprise to most people when they learn that selling is not the most important part of
healthy marketing. Selling is only one part, be it an integral part, of the marketing mix. As
management and marketing guru Peter Drucker states: “There will always, one can assume, be a

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need for some selling. But the aim of marketing is to make selling superfluous. The aim of
marketing is to know and understand the customer so well that the product or service fits him
and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that
should be needed then is to make the product or service available.”
The Marketing Era
Evolving from and challenging the first three concept eras of marketing, this era holds that the
key to achieving organizational goals consists of being more effective than your competitors in
integrating and coordinating marketing activities toward determining and satisfying the needs
and wants of your target markets.
Marketing guru and Professor Theodore Levitt states, “Selling focuses on the needs of the seller,
marketing on the needs of the buyer. Selling is preoccupied with the seller’s need to convert his
product into cash; marketing with the idea of satisfying the needs of the customer by means of
the product and the whole cluster of things associated with creating, delivering and finally
consuming it.”
The marketing concept is the foundation of healthy marketing and rests on four pillars: target
market, customer needs, integrated marketing and profitability. The selling era concept takes an
inside-out perspective. It starts with the factory, focuses on the company’s existing products or
services and calls for heavy hitting selling and promotion to produce profitable sales. Unlike the
selling concept, the healthier modern era marketing concept takes an outside-in perspective.
Starting with a well-defined market, it focuses on customer needs, integrates all the activities that
will affect customers and produces profits by satisfying customers
The Societal Marketing Era
The newest to evolve, it holds that the organization’s task is to determine the needs, wants and
interests of target markets and to deliver the desired satisfaction more effectively and efficiently
than competitors in a way that preserves or enhances the consumers’ and the society’s well-
being.
Cause-related marketing is a version of the societal marketing concept. A growing number of
companies are using cause-related marketing. Organizations run cause- related marketing
campaigns for several purposes: to enhance their corporate image, thwart negative publicity,
pacify consumer groups, launch a new product or brand, broaden their customer base and/or
generate incremental sales.
This concept calls for marketers to really balance three considerations: company profits,
consumer want and satisfaction, and public interest.

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Tools of Marketing Management
Marketing has a number of tools at its disposal. The first of these is what is known as the 7Ps of
the Marketing Mix.
SevenP’s of Marketing Mix
In the pursuit of marketing objectives an organisation requires a strategy that makes Use of the
marketing mix. This term, originally used by Borden (1965), comprised of the 4Ps (Product,
Price, Promotion and Place). The original 4Ps of the marketing mix were considered by many
to be too restrictive, particularly with the developing Service economy. Other academics (e.g.
Booms and Bitner (1981), Moorthi (2002) and Gilmore (2003)) extended this framework to
include three additional variables – People, Physical evidence and Process – thus making the
7Ps. Each element affects the other and are all dynamic. A successful marketing mix will
combine these variables in a way that will facilitate meeting or exceeding organizational
objectives.

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However, as indicated by Elliott de Sáez (2002), the real issue is what constitutes the best way to
offer value to the user. Gilmore (2003) describes the services marketing mix as ‘the set of tools
and activities available to an organisation to shape the nature of its offer to customers’. She also
describes it as having distinguishing characteristics and say these are important in the design of
an appropriate marketing mix.
Here we will keep to the earlier nomenclature (the 7Ps) when referring to the marketing mix
while bearing in mind that it can be thought of from the more client-oriented approach.
In order to create stakeholder value the elements of the marketing mix have to be managed
effectively. This is achieved by recognizing that stakeholders make up different segments of a
market and that they will need to be addressed in different ways with different marketing
strategies. Individual strategies will require different marketing mixes. Each group of
stakeholders will have to be targeted in turn and the service positioned in stakeholders’ minds in
such a way that it will be perceived to create value for stakeholders.

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Four C’s of Marketing Mix
The 4Cs reflect a more client-oriented marketing philosophy, which meets with the principle of a
customer-centered approach to marketing.

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Private Sector
The private sector is that part of the economy, sometimes referred to as the citizen sector, which
is run by private individuals or groups, usually as a means of enterprise for profit, and is not
controlled by the state (areas of the economy controlled by the state being referred to as the
public sector).
The private sector employs most of the workforce in some countries.
The private sector is legally regulated by the state. Businesses within one country are required to
comply with the laws in that country.
In some cases, usually involving multinational businesses that can pick and choose their
suppliers and locations based on their perception of the regulatory environment, these regulations
have resulted in uneven practices within one company. For example, workers in one country may
benefit from strong labor unions, while workers in another country, even though they work for
the same employer, have very weak laws supporting labor unions. In some cases, industries and
individual businesses have chosen to self-regulate by applying higher standards for dealing with
their workers, customers, or the environment than the minimum that is legally required of them.
The private sector is usually composed of organizations that are privately owned and not part of
the government. These usually includes corporations (both profit and non-profit), partnerships,
and charities.
An easier way to think of the private sector is by thinking of organizations that are not owned or
operated by the government. For example, retail stores, credit unions, and local businesses will
operate in the private sector.
Historically, private sector rehabilitation typically has referred to services provided by privately
owned or proprietary (for-profit) organizations, paid for by private sources such as insurance
companies, for purposes of medical case management and vocational rehabilitation, with the goal
of providing prompt and cost effective rehabilitation services, reducing medical costs and benefit
payments (such as workers' compensation and long term disability), as well as settling personal
injury litigation lawsuits (Vencil 1995; Weed and Field 2001).

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Objectives of Private Sector
Public Sector
The public sector refers to the part of the economy concerned with providing various
government services. The composition of the public sector varies by country, but in most
countries the public sector includes such services as the military, police, public transit and care
of public roads, public education, along with healthcare and those working for the government
itself, such as elected officials. The public sector might provide services that a non-payer cannot
be excluded from (such as street lighting), services which benefit all of society rather than just
the individual who uses the service.
Businesses and organizations that are not part of the public sector are part of the private sector.
The private sector is composed of the business sector, which is intended to earn a profit for the
owners of the enterprise, and the voluntary sector, which includes charitable organizations.
Objectives of Public Sector
Public Sector business are done for the well-being of the General public and for the welfare of
the state. Public organization also helps in supporting the expenses of the State or Country.
Private Sector
Market
Power
Quality
Innovation
Image
Reputatuion
Profits

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 Access
Basic services are available to all regardless of location or income. Education facilities, hospitals
and Health care Services offered by the state to the People and public parks and other things for
the well-being of the people of the state
 Quality
Quality is all about avoiding the waste and utilizing it to the maximum use. Waste means
utilizing the Products and services at its maximum level.
 Affordability
Services offered at the Public sector are quite cheap and in some cases it is also free of cost as
compared to the Private Sector. There are few private organizations which work on it but they
depend upon the Donations they are receiving.
 Equity
Equity means everything is available to everyone. There is no discrimination in all of it. All the
people have equal right and the product or service which Government or Public sector own
should be equally and is distributed equally.
Range of Business owned at Public Sector
Public
Sector
Health &
Care
Planning
Energy
Sources
Schools
Museums
Roads

21. 20
Constrains in Public & Private Sector Marketing
The public sector is constrained in terms of the services it is obliged to provide and hence may be
unable to implement a customer-led approach even if this is desired Constraints may include:
Legislative restrictions
A legislature is a decision-making organization, usually associated with national government that
has the power to enact, amend and repeal laws. Legislatures observe and steer governing actions
and usually have exclusive authority to amend the budget or budgets involved in the process.
Political philosophies
Political parties have their own motives behind Public and Private Sector. So the Philosophies of
the Political party also affect it.
Lack of physical resources
Physical Resources also affects the marketing. Physically certain things need to be looked. Like
geographically things need to be proved and should be applicable.
Lack of financial resources
Another factor that affects the marketing is the Financial Resources of Public and Private
organizations. Generally it is observed that Public Organizations are not willing to pay for the
Marketing as compared to the Private organizations, they invest heavy on the marketing and thus
there WOM becomes very strong in the minds of the People.

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PEST Analysis of Public & Private Sector
Political Economical
· Legislation (current and pending)
· Laws relating to the industry
· Tax laws
· Regulation of transfer for capital and
labour
· Stability of the political system
· Membership in free trade areas
· Development of relevant economic
indicators
· Business cycles
· Unemployment
· Availability of relevant resources
· Key industries, industrial clusters
· Industry structures
Socio-Cultural Technological
· Population and demographics
· Distribution of income
· Mobility
· Level of education
· Customer behaviour
· Savings rates
· Preferences for branded / unbranded
products
· Technological level of
· The economy
· The own industry
· Supplier and customer industries
· State and private R&D expenses
· Lifecycle phases of relevant products

23. 22
SWOT Analysis of Public Organization

24. 23
SWOT Analysis of Private Organization

25. 24
Comparison of Public & Private Organisation Marketing
In the broadest sense, the term private corporation refers to any business not owned by the state.
This usage is often found in former communist countries to differentiate from former state-
owned enterprises, but it may be used anywhere when contrasting to a state-owned company.
The term Privately Held Company is more often used to describe for-profit enterprises whose
shares are not traded on the stock market.
Challenges in Public Sector Marketing
In the 1990s, the public sector in various European countries started to see its clientele as
customers and perceived the benefits of applying marketing tools and strategic marketing
planning (Cousins, 1990), in order to ‘sell’ policies to citizens.
Public organisations employ four types of marketing, which differ from each other in the
objectives underlying them:
• First:
‘Marketization’ means that certain aspects of public sector activities become a kin to
commercial marketing in the private sector by subjecting products and services to the
competitive forces of the commercial marketplace. The aim is to bring down the price level and
to bring the standard of quality more into line with customer demands.
• Second:
All organisations use marketing for promoting their self-interest. For instance, Burton (1999)
suggests that public organisations use stakeholder marketing to secure their continued existence
by support from the market and society.
• Third:
In the case of local authorities, marketing is used to promote the area under the responsibility of
the public organisation, such as city marketing.
• Finally:
Marketing may be instrumental in promoting key political objectives, i.e. the realization of social
effects.

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Types of Marketing in Public Sector
One
of the
greatest obstacles to using marketing effectively in government is a lack of understanding of the
different types of marketing in which governments can engage. Although books often portray
public sector marketing as a monolith, the research reveals that marketing in government is quite
diverse. A typology of four different branches of marketing shows the major forms of marketing
that occur in government organizations.

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Marketing of Product & Service
The First thing the Public sector is to market their Products and services. In Public Sector the
most important thing is there services offered to the people. They market them in such a way that
it is far better than other services offered in the market. Public sector products and services are
for the well-being of the General public. They should meet the requirements of the society and
they should be through the proper channel. The thing which is looked behind the marketing of
Products & Services is to meet the Revenue targets set by the Government. Following things
should be in mind before conducting it.
 Forming a Proper Marketing Committee to lead all its Process.
 Conducting marketing Education, training and proper Research.
 Develop a Formal Marketing Strategy
Social Marketing
Social marketing – marketing that attempts to change the behaviors and attitudes of targeted
groups – is the second type of marketing commonly practiced by government organizations. For
instance, when Parks Canada develops a marketing campaign encouraging visitors to its parks to
take more responsibility for their personal safety while hiking, mountain climbing or canoeing, it
is engaging in social marketing. Similarly, when Health Canada develops an advertising
campaign intended to persuade young Canadians not to start smoking, it is engaging in social

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marketing. Although the private sector also engages in social marketing (e.g., don’t drink and
drive, or don’t drink while pregnant), such campaigns play a minor role compared to the
traditional marketing of goods and services.
Policy Marketing
The third type of marketing that governments engage in might best be called “policy marketing.”
This typically occurs when governments launch marketing programs to convince specific sectors
of society to accept their policies. For instance, when the government attempts to convince the
public of the benefits of the Free Trade Agreement or changes to the Canada Pension Plan, it is
engaging in policy marketing. Policy marketing by governments is most similar to “advocacy
advertising” by private companies, i.e., companies advocating their virtues as good corporate
citizens.
DE Marketing or don’t use our Programs marketing
DE marketing campaigns are launched by governments to advise and/or persuade targeted
groups not to use government programs that have been available to them in the past. In recent
years, DE marketing campaigns have been developed in tandem with downsizing efforts. For
example, many departments that previously provided funding to community-based organizations
have experienced significant decreases in such funds. In response to this development,
departments have had to notify these organizations of their lost revenue and some have provided
marketing training to staff of the affected organizations to assist them in establishing alternative
funding bases. In the private sector, rather little DE marketing occurs, since businesses engage
primarily in promoting the consumption of goods and services.
Challenges in Private Sector
Marketing
Private Sector Development (PSD) is a
strategy for promoting economic
growth and reducing poverty in
developing countries by building
private enterprises, membership
organizations to represent them, and
competitive markets that are stronger
and more inclusive.
 Business Environment
Reforms
Where entrepreneurship and markets
are stifled by inappropriate regulation,
excessive taxation, lack of fair

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competition, lack of voice or an unstable policy environment, growth and poverty reduction are
likely to suffer. Typically, donors first fund business environment analyses, such as the World
Bank's Doing Business Reports, identifying the major constraints to business growth.
 Business linkage & Value Chain Development
A value chain is a series of activities that enterprises undertake when they produce a good or
service, adding value to the inputs at each stage. Value Chain Development thus seeks to
maximize the value of any given type of product, whilst incurring the least possible cost to the
producers, in the places along the production chain that give the most benefit to poor people.
 Business Culture Relationship
Another thing that becomes a challenge for the marketer to market their product is to build the
cultural relationship of that product with the society. Cultural importance in the marketing
describes the success of the marketing priorities of the firm. Marketer face the major problem in
the cultural understanding. While looking at the Pakistan, the Pakistan is the diversified nation
many cultures prevails there. So marketers have to think very smartly to overcome that and to
cover all aspects.
 Administrative affairs with the Government
While dealing with the marketing the marketer have to go side by side with the Government
authorities. There are many challenges while having the administrative affairs with the
government. Marketers are bound to work according to their rules n regulations.
The marketer job is to cover all the obstacles he/she faces during their work and make the
best out of it. Every negative have the positive as well. Marketing in the private sector makes the
100% use of it. These challenges faced by the marketer can also be the positives if he/she is able
to come out if it.
Types of Marketing in Private Sector
The private sector has considerable experience with tools aimed at influencing consumer choice,
and some of these tools may also be applicable to public efforts to promote healthier eating. This
phase aims at identifying success stories and good practices in marketing actions within the food
sector that can possibly be transferred to policy applications.
This will be pursued through 3 specific sub-objectives:
 Identification of a set of marketing techniques that have proven useful for influencing
consumer food choice
 An evaluation of their effectiveness and transferability to social marketing in the healthy
eating area
 Specification of conditions for transfer of these techniques

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Promotional Strategies
Private organization and sector use many promotional strategies to target there customer and
increase their revenues. Promotional strategy is another tool to increase the sale and also to
introduce its product to the market and to the customer. Promotional strategies are also used to
achieve the economies of the scale.
Online Marketing Strategies
Today’s 21st century is all about marketing and advertising the products and services. Social
media is a very big shot now a days like Facebook, Twitter, Orkut and My Space etc. Private
companies are using social and other online marketing sources very well for the development of
the services and product.
Aggressive Advertising
Private Sector believes in the aggressive marketing, and flow of the product and services. They
want to make their product more visible and accessible to the people. The best example is of the
Q Mobile in the Pakistan. They used aggressive marketing technique to attain the market share.
Use to Electronic and print Media
Electronic and print media is also used by the Private sector very well. Sometimes the private
organizations also hold their share in the media cells. Private organizations are also using it for
their marketing.
Societal Marketing
Private organizations have looked and studied a lot. They have started a societal marketing
concept in which the work something for the society and then advertise it. It is also a channel of
Green Marketing concept.

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Comparison of Strategies by Public and Private Organizations
Promotional Tool Public Sector Private Sector
Advertisement on TV YES YES
Advertisement on News
paper
YES YES
Personal Selling/Personal
Contact
NO YES
In Journals and Magazines YES YES
Tele calling NO YES
Outdoor advertising YES YES
Schemes/Gifts/Prizes for the
Customer
NO YES
Events and Programs YES YES
Online Marketing YES BUT FEW YES
Pamphlets NO YES
Letter and Mails NO YES
Publishing News in News
Paper
YES BUT FEW YES

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Conclusion
Marketing is the basic tool in the product and services. Marketing strategies define the product
ratio of success and failure. Public and Private sector both have the marketing channel but
private sector is much aggressive and advanced as compared to the Public sector.
Another thing came to the Knowledge that Public sector does not do much Marketing of their
products and services as there is no competition for them. Public and Private sector have their
own divisions. But the changes are seen with the passage of time. Earlier the Public sector did
not bothered to do the marketing but the now they have realized the importance and logic of the
Marketing. The competition is very high and public organizations also go towards the Marketing.
Private organizations where into the marketing bit but they are quite aggressive now a days.
They are fully utilizing the each and every mode of the marketing and advertising the mode.
Private organizations are using social and every mode to target there market. Today’s customer
does not want to take any hassle Private organizations provide them all the services at the door
step and make it valuable and worth for the customer.
Marketing Era, the Today’s Era is all about the Understanding of the customer needs and wants.
Today’s customer is also much aware of the products and services. They also know today what
the product is and what is required to fulfill their requirements.