Essential marketing principles for non-profit organisations: Views of marketing managers

Date
2017-03
Journal Title
Journal ISSN
Volume Title
Publisher
Stellenbosch : Stellenbosch University
Abstract
ENGLISH ABSTRACT: The non-profit organisations in South Africa, as in the rest of the world, are facing major funding challenges. Non-profit organisations rely on a wide range of income sources such as government subsidy, grants from foundations, corporate support, individual giving, church contributions, fees, product sales and special events. However, NPOs are struggling to keep up with the decline in financial resources, the increase in the number of non-profit organisations and the mounting competition among NPOs. A funding crisis in the non-profit sector in SA was foreseen since the global economic crisis in 2008. NPOs are in a sustainability crisis and marketing is one of the key elements to ensure sustainability. Marketing is critical to the success of every organisation, be it for-profit or non-profit organisations. Non-profit organisations are selling their organisation’s mission, their ideas, their programmes and their services and they need to increase their income to fulfil their mission. Non-profit organisations do realise the importance of marketing for their survival, but they still lack understanding of the principles underlying the marketing concept and how to operationalise it. The goal of the study was to determine the essential marketing principles for non-profit organisations as viewed by marketing managers. Permission to conduct the study was granted by the Research Ethics Committee for Human Research at the University of Stellenbosch. A literature study was conducted to investigate the scope and size of the NPO sector, the funding challenges of NPOs, the need for marketing, and the essential marketing principles for non-profit organisations. For the empirical study, the researcher identified 20 marketing managers who specifically have experience in working with or for non-profit organisations. A qualitative approach was deemed the most suitable in establishing the essential marketing principles according to marketing managers. Semi-structured, one-to-one interviews were conducted with the marketing managers in order to gather data on their views on essential marketing principles for non-profit organisations. The results of this study mostly confirmed the findings from the literature study which showed that marketing is a necessity for NPOs and that all the identified marketing principles are essential for NPOs. It became evident that NPOs should become more market-oriented and that they should implement marketing strategies. From the responses from the participants, it was also apparent that a lack of marketing expertise as well as inadequate leadership and management skills are prevalent in the NPO sector. Recommendations are aimed at developing the leadership, management and marketing skills of NPOs and applying the essential marketing principles. Suggestions for future research are also made to address the accountability of NPO leadership, to develop a framework for market-orientated organisations and to delve deeper into the marketing principles for NPOs in order to develop a strategy for non-profit marketing. Further research is also suggested regarding more innovative business models for NPOs to ensure sustainability.
AFRIKAANSE OPSOMMING: Die nie-winsgewende organisasies in Suid-Afrika, soos in die res van die wêreld, staar groot befondsings-uitdagings in die gesig. Nie-winsgewende organisasies maak op 'n wye verskeidenheid van inkomstebronne soos staatsubsidie, toekennings van stigtings, korporatiewe ondersteuning, individuele donasies, kerkbydraes, fooie, produkverkope en spesiale geleenthede staat. Tog sukkel nie-winsgewende organisasies om tred te hou met die afname in finansiële hulpbronne, die toename in die aantal nie-winsgewende organisasies en die toenemende mededinging tussen nie-winsgewende organisasies. 'n Finansiële krisis in die nie-winsgewende sektor in SA is sedert die wêreldwye ekonomiese krisis in 2008 voorspel. Nie-winsgewende organisasies is in 'n volhoubaarheidskrisis en bemarking is een van die belangrikste elemente om volhoubaarheid te verseker. Bemarking is van kritieke belang vir die sukses van enige organisasie, of dit nou winsgewende of nie-winsgewende organisasies is. Nie-winsgewende organisasies verkoop die missie van hul organisasie, hul idees, hul programme en hul dienste en hulle het nodig om hul inkomste te verhoog om hul missie te vervul. Die nie-winsgewende organisasies besef die belangrikheid van bemarking vir hul oorlewing, maar hulle het nie ‘n begrip van die beginsels onderliggend aan die bemarkingskonsep en hoe om dit te operasionaliseer nie. Die doel van hierdie studie was om die noodsaaklike bemarkingsbeginsels vir nie-winsgewende organisasies te bepaal, soos gesien deur bemarkingsbestuurders. Toestemming om die studie uit te voer is deur die Etiese Navorsingskomitee vir Geesteswetenskaplike navorsing van die Universiteit van Stellenbosch toegestaan. 'n Literatuurstudie is gedoen om die omvang en grootte van die nie-winsgewende sektor, die befondsings-uitdagings van nie-winsgewende organisasies, die behoefte aan bemarking, en die noodsaaklike bemarkingsbeginsels vir nie-winsgewende organisasies te ondersoek. Vir die empiriese studie het die navorser 20 bemarkingsbestuurders wat spesifiek ondervinding in die werk met of vir nie-winsgewende organisasies het, geïdentifiseer. 'n Kwalitatiewe benadering is gevolg in die vestiging van die noodsaaklike bemarkingsbeginsels soos gesien deur bemarkingsbestuurders. Semi-gestruktureerde, een-tot-een onderhoude is met die bemarkingsbestuurders gevoer om data oor hul standpunte oor noodsaaklike bemarkingsbeginsels vir nie-winsgewende organisasies in te samel. Die resultate van hierdie studie bevestig meestal die bevindinge van die literatuurstudie wat getoon het dat bemarking 'n noodsaaklikheid vir nie-winsgewende organisasies is en dat al die geïdentifiseerde bemarkingsbeginsels noodsaaklik is. Dit het duidelik geword dat nie-winsgewende organisasies meer markgerig moet word en dat hulle strategieë vir bemarking moet implementeer. Uit die antwoorde van die deelnemers het dit ook duidelik geword dat 'n gebrek aan bemarkingskundigheid, asook gebrekkige leierskap en bestuursvaardighede algemeen in die nie-winsgewende sektor voorkom. Aanbevelings is gemik op die ontwikkeling van leierskap-, bestuurs- en bemarkingsvaardighede en die toepassing van bemarkingsbeginsels vir nie-winsgewende organisasies. Voorstelle vir toekomstige navorsing word ook gemaak om die aanspreeklikheid van die nie-winsgewende organisasies se leierskap aan te spreek, ‘n raamwerk vir mark-oriëntasie vir nie-winsgewende organisasies te ontwikkel en om dieper te delf in die bemarkingsbeginsels vir nie-winsgewende organisasies om sodoende ‘n strategie vir nie-winsgewende bemarking te ontwikkel. Verdere navorsing in die ontwikkeling van meer innoverende besigheidsmodelle vir nie-winsgewende organisasies om volhoubaarheid te verseker, word ook voorgestel.
Description
Thesis (MA)--Stellenbosch University, 2017.
Keywords
Non-profit organisations -- Marketing, Marketing executives -- Observations -- Marketing, UCTD
Citation