NGOs in Marketing
Xavier Institute of
ManagementBhubaneswar
“ 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
•Service
Market Development Approach
provider- One or all •NGO as a facilitator
marketing operations
•Works to develop the market & promote
•No encouragement for
competition
competition & market
•Sustainable if it succeeds in market
development
development
•Works for a specific target
•Needs grants or outside subsidy
group
•Difficult to run on commercial principles
•Unsustainable unless run on
• Example: IDE
commercial principles
• Example: BAIF
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
Mart
to micro enterprise through micro- planning
3 M Model
Example:
Support for marketing under the aegis of WORLP in Orissa
3 M Approach – MART
Microfinance
First
input required to
start income
generating activity
SHGs already in
existence and
functioning
systematically
Possible for a group
member for starting a
micro enterprise
Micro markets
Micro
markets are
perennial or periodic
markets
Local markets are
important for poor
women entrepreneurs
Better access and
control vis-a –vis
distant town and city
markets
Micro planning
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)
Small size & low
value goods and
services
Reasons( Indicative)
Poor access to human,
financial capital(1)
Effect ( Indicative)
Stunted growth of
enterprise (4)
Offering & market
(2) -Leading to poor
preference mismatch 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
Micro
Rural
SemiUrban
Urban
Adapted from Dr. L K Vaswani, IRMA – 2005
Market
Resistanc
e
Policies
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