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Rural marketing, NGO,NGO'S,Marketing,Rural
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NGOs in Marketing
Vikram Dahiya
IIM-Rohtak
“ NGO Marketing”
A confusing topic with conflicting connotations
Non- Profit – Fair Trade – Producer Empowerment
Diverse legal forms – aims & objectives – approaches
Government sponsored – PPPs- Section 25 companies- Multi lateral
agency promoted- Companies
Complex marketing challenges & issues
Variety of options – interventions – strategies
Few successes, many failures for IGPs
NGO Marketing Paradigms
Organisation Development Approach
Market Development Approach
•Service provider- One or all marketing operations•No encouragement for competition & market development•Works for a specific target group•Unsustainable unless run on commercial principles• Example: BAIF
•NGO as a facilitator•Works to develop the market & promote competition •Sustainable if it succeeds in market development•Needs grants or outside subsidy•Difficult to run on commercial principles• Example: IDE
OD Approach: Jaipur Rugs Foundation
Source: Jaipur Rugs Foundation Webpage
Continued
Micro Markets Approach
Work with local markets, local skills and local products
Analysis of haats and other weekly markets
Microfinance to micro enterprise through micro- planning
Mart 3 M Model
Example: Support for marketing under the aegis of WORLP in Orissa
3 M Approach – MART
Microfinance Micro markets Micro planning First input required to start income generating activitySHGs already in existence and functioning systematicallyPossible for a group member for starting a micro enterprise
Micro markets are perennial or periodic markets Local markets are important for poor women entrepreneursBetter access and control vis-a –vis distant town and city markets
To assess the local market demand pattern through surveys of local haats and village shops Local resources available such as raw materials, infrastructure, skills & support services
Cont’d
Source: Presentation by K P Mishra (Mart), XIMB -2004
NGO Marketing Issues Issue ( Indicative) Reasons( Indicative) Effect ( Indicative)
Small size & low value goods and services
Poor access to human, financial capital(1)
Stunted growth of enterprise (4)
Offering & market preference mismatch
(2) -Leading to poor market scoping & research process
“ Marketing myopia” (5)
Lack of market access
For inputs & outputs
Institutional, logistical and technological barriers(3)
Poor price realisation, distress sale in the case of perishable commodities ( 6)
Information asymmetry
(3) & (1) Inability to exploit opportunities (7)
Continued Non – Profit Objectives
Connected to Vision Mission & Goals (8)
Resistance of staff (9) & fear of change
Risk Aversion Programmes based on grants, application of own/ self generated
funds low (10)
(7) & Enterprises don’t have independent decision
making powers
Multiplicity of goals
Programmes dictated by donor priorities (11)
(4)
Discomfort with commercial
partners
(8), (9) & (11) (4), (5) & (7)
Unique Complexities in NGO marketing
Solving Issues
Comprehensive SWOT
Beneficiary (Client)- Business matching
Freeing the entrepreneur – Very often neglected issue
Kudumbashree – SIDBI RIP & Rajiv Gandhi Udyami Mitra Scheme are
cases in point
Experience of Udyog Vikas
Group or individual approaches
Market efficiency criteria Vs Community benefit criteria
Product- Market Options
Products Present Markets New Markets
Present Products Market Penetration Market Development
New Products Product Development Diversification
Adaptation of Ansoff’s Product – Market Grid
Identification of Product – Market Options & Product – Market fit vital for success
Cont’d
Market Dimensions of Competition ( Indicative)
Price Promotion Product Distribution Market Resistance
Policies
Micro
Rural
Semi- Urban
Urban
Adapted from Dr. L K Vaswani, IRMA – 2005
Conclusion
Map rational & emotional value chains
Identify opportunities presented by the value chain analysis
Decide on the approach & develop capacities after SWOT analysis
Map present position of the target group in the value chain and attempt one
jump at a time
Marketing requires appropriate & separate organizational structure
Plan for viability from day one
Facilitation & service provision may cause conflict of roles and interests
Adapted from Prof. D N Rao, XIMB 2004
Close of Session
Thank You