Post on 06-Apr-2018
transcript
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NGOs in Marketing
Prof. Rushen Chahal
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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
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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
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OD Approach: Jaipur Rugs
Foundation
Source: Jaipur Rugs Foundation Webpage
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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
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3 M Approach MART
Microfinance Micro markets Micro planning
First input required to
start income
generating activity
SHGs already in
existence and
functioning
systematically
Possible for a groupmember for starting a
micro enterprise
Micro markets are
perennial or periodic
markets
Local markets are
important for poor
women entrepreneurs
Better access and
control vis-a visdistant town and city
markets
To assess the local
market demand
pattern throughsurveys of local haats
and village shops
Local resources
available such as raw
materials,infrastructure, skills &
support services
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Contd
Source: Presentation by K P Mishra (Mart), XIMB -2004
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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
accessFor inputs & outputs
Institutional, logistical
and technologicalbarriers(3)
Poor price realisation,
distress sale in thecase of perishable
commodities ( 6)
Information
asymmetry
(3) & (1) Inability to exploit
opportunities (7)
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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 generatedfunds low (10)
(7) & Enterprises dont have
independent decision
making powers
Multiplicity of
goals
Programmes dictated
by donor priorities (11)
(4)
Discomfort with
commercialpartners
(8), (9) & (11) (4), (5) & (7)
Unique Complexities in NGO marketing
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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
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Product- Market Options
Products Present Markets New Markets
Present Products Market Penetration Market Development
New Products Product Development Diversification
Adaptation of Ansoffs Product Market Grid
Identification of Product Market Options & Product Market fit vital forsuccess
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Contd
Market Dimensions of Competition ( Indicative)
Price Promotion Product Distribution Market
Resistanc
e
Policies
Micro
Rural
Semi-
Urban
Urban
Adapted from Dr. L K Vaswani, IRMA 2005
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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
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Close of Session
Thank You