rural marketing- ngo's in marketing

8/3/2019 Rural Marketing- NGO's in Marketing

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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

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