The Successful Marketing Strategies for Actionaid Australia - Research Proposal Example

THE SUCCESSFUL MARKETING STRATEGIES FOR ACTIONAID AUSTRALIA - PROPOSAL By Name Course Instructor Institution City/State Date Table of Contents THE SUCCESSFUL MARKETING STRATEGIES FOR ACTIONAID AUSTRALIA - PROPOSAL 1 Table of Contents 2 Abstract 3 1.0 Introduction 4 1.1 Background 4 1.2 Statement of the Problem 5 1.3 Significance of the study 6 1.4 Research Aims and Objectives 6 1.5 Research Question 7 2.0 Literature Review 7 2.1 Significance of NPOs’ Market Strategies 7 2.2 International Perspective of NPOs Marketing 8 2.3 The Construct of Market-Orientation 10 2.4 Integrated Marketing Communication 12 3.0 Research Design and Methodology 14 3.1 Hypotheses 14 3.2 Research Design 14 3.3 Primary Research 15 3.4 Secondary research 16 3.5 Population and Sample Selection 16 3.6 Data analysis 17 3.7 Expected Resources 18 3.8 Research Project Plan 18 4.0 References 20 The Successful Marketing Strategies for ActionAid Australia - Proposal Abstract The main objective of this study is determining the successful marketing strategies for the case organisation, ActionAid Australia, a not-for-profit organisation based in Australia. The organisation is a rights based agency that deals with the root causes of injustice as well as poverty. It appears that successful marketing strategies enable not-for-profit organisations (NPOs) sustain the resources as well as realised the business objectives. Therefore, this study will help ActionAid Australia improve its performance and be able to effectively reach the resources. The literature review will be rooted in the strategies and theories of marketing with specific emphasis on the process of strategic marketing. Besides that, the study will use qualitative research method so as to collect information and data needed to examine the situation of ActionAid Australia. Importantly, the data were gathered from interviews as well as questionnaires with representatives from ActionAid Australia. The objective was to understand whether NPOs utilise marketing strategies and level these strategies are utilised. 1.0 Introduction 1.1 Background In the modern-day sophisticated and dynamic market, the welfare activities’ demand has been increasing and the need for social assistance has turn out to be the key priority within the civil society. The NPOs are now considered as the major civil society figures whose work is to ensure balance is maintained on the society by participating in different public welfare activities. Lately, the number of NPOs has increased rapidly, and they have become a critical player in 21st century. NPOs, as mentioned by Otieno and Wallace (2016), have viewed as a partner in the state development because they address numerous issues on underdevelopment. Still, it is acknowledged widely that NPOs can hardly deliver what the public expects of them due to the hallow saintliness surrounding them. At the global level, NPOs are considered as a means to economic growth and democratisation, especially in the third world economies. Furthermore, NPOs are considered as the perfect alternatives for weak markets and states in promoting the development of the economy and basic services provision to the majority of people. In the late 1970s, scores of NPOs preferred not to espouse the existing marketing strategies since they were related to expensive advertising and the marketing of unnecessary goods. Often, the NPOS failed to communicate their needs to the society considering that it was imperative for them to demonstrate to the public what they could for them. However, after people started changing by developing the desire to discern how they can benefit, NPOs started adapting accordingly. Still, a number of NPOs have been struggling because most of their managers do not understand the different marketing aspects that are crucially important for every institution that seeks public support for their idea, service, or product, service. The NPOs are now part and parcel of the modern society and they are important because they offer important services like social welfare, health, as well as education. 1.2 Statement of the Problem Many NPOs are reluctant to adopt marketing strategies due to insufficient knowledge regarding marketing principles and majority of them see marketing as manipulative. In order for NPOs to effectively deliver services, they need successful marketing strategies. Though the NPOs are still depending on the traditional collaborative relationship, the modern-day challenges such as competition for funding have created the need for effective marketing strategies. Given that NPOs are voluntary, they are expected to fulfil their role effectively in order to improve the conditions of the people who are marginalised and socio-economically disadvantaged. For these reasons, NPOs should formulate marketing strategies that capitalise on the external opportunities tin order to reduce and avoid the effect of external threats. Imperatively, the NPOs must strategically position themselves to meet other expectations as well as achieve self-sustainability. Given that NPOs must market their causes as well as objectives to potential donors and volunteers, they need a marketing strategy that is well planned and which could allow them to create awareness. The success of the NPO’s marketing strategy is reliant on the straightforwardness and ability of the organisation to implement and measure and have assessment tools. 1.3 Significance of the study The NPOs are organisations whose objective is to achieve some goals rather than the normal business goals of return on investment (ROI), market share, or profit. Akin to other types of business, NPOs must utilise marketing strategies in order to promote the goal and cause of the company. Normally, NPOs market complex ideas or behaviours. When NPOs market effectively, they are inclined to experience intangible, complex, and lasting benefits, but finding ways to communicate to the public is more challenging. Without a doubt, marketing strategies can enable the NPOs to confront complex and new problems in the marketplace. After gathering a marketing team, the NPO must analyse and define their context, partners, competitors, as well as customers. Using the learn-as-you-go tactic, the NPO managers would be able to handle the NPO marketing world that is relatively new. Scores of companies focus exclusively on a PR strategy but the revolutionary NPOs have started tapping into the social media marketing strategy. Using social media as a tool of marketing is considered effective and economical to the NPOs and can result in success. 1.4 Research Aims and Objectives 1. To assess the NPO marketing strategies and examine their relative impact on the organisation’s overall achievement, resource utilisation and effectiveness 2. To determine the benchmarks and success factors of social marketing approach 3. To measure and assess marketing strategies’ feasibility and cost 4. To compare the marketing operations’ differences existing across the world that significantly differs with the environment where the NPO operate 5. To analyse the actual state of marketing applied at ActionAid Australia and to explore the different marketing strategies that other NPOs have adopted 1.5 Research Question What are the successful marketing strategies for ActionAid Australia? 2.0 Literature Review This literature review critically analyse how marketing strategies can allow NPOs to effectively communicate their goals and missions to others. This literature review summarise the existing knowledge regarding the topic and points out any gaps and through secondary research. 2.1 Significance of NPOs’ Market Strategies In his study, Poudel (2011) established that the marketing concept used by NPOs has resulted in the development of new strategies that work more effectively that the traditional marketing strategies. He further states that the number of practice in the 21st is growing; therefore, new ideologies are being formed, which consequently have brought about increased interest in the non-profit sector. In the mid-20th century, Poudel (2011) posits that the NPOs were not using marketing techniques, but currently it is a practice that is well-accepted. Most of the marketing strategies can be utilised by the NPOs even though it is difficult to modify their mission cannot in line with market-needs. Poudel (2011) maintains that the marketing strategies practice can be put into practice to effectively communicate with potential customers, determine the segmenting market, and build a goodwill or brand. Therefore, NPOs are market oriented although they always practically deny that marketing is for the profit sector. Although it is generally agreed that NPOs need marketing strategies to operate effectively in contemporary society, Pope et al. (2009) posit that there is little agreement regarding how these organisations should approach marketing. Considering that most of the marketing theories in the present day focus on profit making. Given that the NPOs’ objective is not making profits, adapting such theories with the objective of developing a non-profit marketing strategy has become more challenging. A number of NPOs have tried to use the standard marketing strategies, but they need a lot of modifications so that they can fit the NPOs’ needs. Pope et al. (2009) indicate that the marketing for NPOs and for-profit organisations is much different because of approach utilised to exchanges. In the for-profit marketing, the sellers and buyers exchange money or goods with almost the same value, but this is not the case in the non-profit sector since volunteers and donors normally give time or money without anticipating getting the same value in return. The NPOs’ clients and customers normally get something of superior value as compared to their contribution. The consumers, volunteers and donors have to be motivated by a certain NPO in order to exchange money for no returns. 2.2 International Perspective of NPOs Marketing Pope et al. (2009) argue that the traditional marketing theories cannot be used by NPOs because the non-profit sector exists as a result of market failure. That is to say, the market is not completely efficient; therefore, the NPOs are filling the gaps. The majority of marketing theories were created with the objective of maximising the satisfaction of the customers. Whereas the majority of for-profit organisations are focussing on their relationships with their customers, the NPOs place emphasis on their relationships with volunteers as well as donors. For this reason, NPOs have been forced to create a number of marketing strategies intended for completely different markets. Besides, the benefits attributed to these different constituencies do not have monetary value; therefore, it becomes challenging for NPOs to effectively communicate benefits to such markets. In their study, Tabaku and Mersini (2013) observed that there are numerous crucial features that characterise the NPO sector, which together makes the sector’s competition in completely different from that encountered in the for-profit sector. The authors posit that NPOs are normally motivated by the social goals instead by maximisation of profits. The NPOs have to consider the needs of volunteers, donors and beneficiaries when selecting the suitable marketing strategy. Benefits and costs associated with the social marketing services are not the same as those of products provided by the for-profit business. Tabaku and Mersini (2013) opine that the declining families’ disposable incomes and stagnant growth attributed to the financial crisis has reduced spending both by the governments and people. Therefore, NPOs are recognising the need for marketing strategies in order to survive; therefore, they have started importing marketing techniques commonly utilised in the profit sector. Furthermore, NPOs survival depends on the different source of funding, which includes contracts and grants from the corporate support; governments; donations; direct contribution from individuals; art unions; church contributions; endowments income; investments, and so forth. Still, NPOs are finding it difficult to remain alive since the societal needs are rapidly changing, the competition between private and public sector is increasing, the attitudes of the clients are changing and financial resources are diminishing. In the presence of such difficulties, Tabaku and Mersini (2013) assert that the marketing strategies could provide a sustainable competitive advantage by creating improved customer value that consequently results in improved productivity and performance. Even though marketing is considered as a business activity by the majority of NPOs, Tabaku and Mersini (2013) established that marketing is very important for NPOs. Marketing could offer policy frameworks as well as management orientation, which could be well-matched with the perspectives of NPO. A number of studies such as Pope et al. (2009) and Tabaku and Mersini (2013) agree that adopting marketing strategy could enable NPOs to achieve sustainable competitive advantages as well as enhance their performance. 2.3 The Construct of Market-Orientation In spite of the increasing marketing interest in the non-profit sector, the majority of NPOs are still resisting it. They see marketing as a threat to their power or autonomy. In the long run, necessity has forced these organisations to adopt marketing ideas. Goswami et al. (2010) posit that marketing is considered as promotion and advertising, and not a radical new technique for viewing the institution together with its purposes. In India, Goswami et al. (2010) observed that the main challenges that NPOs face is creating and implementing volunteering activities that could lead to a purposeful outcome, to improve scope and opportunities for the volunteers/staff, and sustain the motivation. The majority of NPOs do not have a clear marketing strategy and the organisational team at times lack marketing training and experience. Goswami et al. (2010) maintain that the NPO sector needs professional and good marketers capable of removing the fallacies regarding. Dolnicar and Lazarevski (2009) support Goswami et al. (2010) assertion that only a few NPOs acknowledge the value of strategic marketing and market research. NPOs in Australia, the U.S., and the UK according to Dolnicar and Lazarevski (2009) are not different in terms of marketing and marketing operations, and there is some resemblance of market pressures, which are normally more influential as compared to the dissimilarities in the operating environments. Dolnicar and Lazarevski (2009) argue that if NPOs shift their marketing from the ‘organisation-centred’ approach to one that is ‘customer-centred’ they can improve their outcomes and increase their competitive advantage. Dolnicar and Lazarevski (2009) study results demonstrated that scores of NPOs are far from realising their full potential by means of marketing. This is mainly attributed to numerous reasons such as the limited application of marketing tools as well as the overreliance on promotion. Besides that, the authors found out that most NPOs are reluctant to adopt marketing instruments and strategies since they consider marketing is an immoral act used to manipulate people; therefore, it is not compatible with NPO’s work. For that reason, NPOs have been sluggish in accommodating the marketing-related benefits. Even though marketing is perceived broadly as a crucial tool for organisations seeking to attract resources from external sources, the use of marketing approaches according to Brady et al. (2011) is still limited. Brady et al. (2011) posit that the inaccurate and relatively inadequate view of marketing as advertising or public relations has made some NPOs to negatively perceive marketing. This erroneous view can be solved through relationship marketing. Hussain et al. (2014) indicate that relationship marketing is a crucial strategy that can enable NPOs to manage long-term relationships effectively with the public, donors, volunteers and other stakeholders. Therefore, improvements and adjustments should be made at NPOs in order for relationship marketing to be facilitated and incorporated. Hussain et al. (2014) further maintain that regular communication between NPOs and the stakeholders would make it easy for the organisation needs to be well-known. More importantly, the various communication channels such as websites and social media must be made accessible for use. Having an open atmosphere for communication could enable NPOs to build as well as manage relationships. 2.4 Integrated Marketing Communication Perkins et al. (2011) concur with Hussain et al. (2014), asserting that NPOs could largely benefit from creating lasting relationships with the stakeholders. The authors established that NPOs can attract donors by extending their relationship with the stakeholders. The most important stakeholders for NPOs are donors, volunteers and consumers. Communication and marketing strategies, which emphasises on the building relationships are considered to be successful with the main stakeholders. As cited by Perkins et al. (2011), there are five tactics for building a relationship with the stakeholders: i) paying attention (listening); ii) two-way communication; iii) face-to-face contacts; iv) database marketing; and v) relationship advertising. Higher satisfaction levels and higher quality relationships can be achieved by NPOs using relationship marketing. The concepts of trust, commitment, and relationships have been explained by the social exchange theory, which states that people evaluate relationships based on the consequences. All relationships have rewards and costs related to it, and the relationship consequences could be seen in terms of the costs incurred as well as rewards received. According to Perkins et al. (2011), costs are shortcomings considered as an unpleasant or reduce the likelihood of the organisation realising the goal. On the other hand, rewards are benefits considered as pleasant or help the organisation realise a certain aspiration. Social exchange theory can be applied in the relationship between NPOs and the stakeholders, where costs include emotional investment, time, monetary costs, as well as social commitment while rewards include social affiliation benefits, donations’ tax advantages, and satisfaction achieved by helping others. Relationships are perceived by social exchange theory as a matter that is extremely selective since different relationships result in varying consequences for various individuals. Therefore, when an individual decides to enter into a new relationship, he/she first examines the expected benefits and required investments. In this case, the person contrasts the expected outcome of the relationship, or the ratio between cost and benefit, to his/her comparison level. Comparison level as defined by Perkins et al. (2011), is the standard used to assess the relationship attractiveness or how its satisfactory level. Therefore, when the expected outcome is close to her/her CL, there is a high chance that the person would be satisfied with the relationship. As opined by Parthasarathy (2013), formal and systematic training in the techniques of marketing using experts could result in improved effectiveness. Parthasarathy’s (2013) study results highlight the significance of funds for successful NPOs marketing operations; therefore, NPOs are required to diversify their self-generation and sources of the funds for continued existence. Given that the style of leadership enormously influences the effectiveness of social marketing, trained and committed leadership appears to be critical. Therefore, programs espoused to improve this aspect could be valuable. The authors also established that NPOs should ensure continuous training the operating staff and supervisory quality is improved since marketing effectiveness is influenced by the quality of management. They also maintain that NPOs must find institutionalised and meaningful techniques of mutually consulting the primary stakeholders so as to facilitate two-way involvement. Services delivery is a crucial marketing trait, which must be strengthened by redesigning delivery techniques to suit behavioural as well as cultural attributes of certain market segments. 3.0 Research Design and Methodology 3.1 Hypotheses H1 - Marketing at the NPO is channelled through a consumer-centred mindset. H2 - The NPOs’ marketing portfolio is run by individuals who lack adequate marketing skills and with no formal training on marketing. H3 - The NPO’s marketing operations are the same across different countries since it faces a similar market pressure and its institutional practises have been globalised. 3.2 Research Design In order to learn more regarding successful marketing strategies in NPOs, a qualitative research will be carried out at ActionAid Australia. The qualitative research will be conducted with the objective of exploring issues, answering questions and understanding the marketing phenomena. Qualitative research will be more preferable because it is naturally exploratory and would help develop a more in-depth understanding of marketing strategies that would be successful for the NPOs. Qualitative analysis is an important tool for collecting a wider understanding and this will be achieved through questions that are well designed and structure in a way that would help identify insight, themes, and generate meaningful conclusions. Both interviews and questionnaires would be used to make clear the different strategies used by NPOs to operate effectively. Extensive field notes would be made during the interviews by developing numerical and comprehensive five-point rating scale that would facilitate the quantification of the data. Depth Interviews will also be developed for the NPO, donors, experts as well as volunteers. The interviews will be important because they will generate lots of discussions as well as rich information. The interviews would be utilised to integrate ‘phenomenological’ examination in the qualitative research design, where professionals will be asked to explain their experience with marketing strategies employed in the NPO sector. Quantitative research would be utilised to measure awareness, facts, and opinions collected through questionnaires, analysed and quantified using statistical tests in order to prove or refute the hypotheses. A focus group will be utilised to explore consumers and volunteers attitudes as well as ideas. A group of people (10-15) will be meeting in a room containing video and audio capabilities, whereby the moderator would lead the group's discussion by focusing on the areas of the topic. The focus groups would be carried out in two weeks. 3.3 Primary Research The primary research will involve both quantitative research using a structured questionnaire and a qualitative research in the form of depth interviews, observation, and focus groups. Given that the study examines the perceptions of the NPO, volunteers, donors and consumers, both the qualitative and quantitative research will be designed in a way that would facilitate the gathering of information from the four respondent categories. As mentioned earlier, primary research will involve interviews, observation, analysis and surveys. Primary research would be beneficial because the information gathered will be first-hand, genuine account, which will be unaltered by other researchers. Primary research facilitates direct recording of words, feelings, observations, and thoughts, which certainly solidifies studies to which readers can easily relate. Primary research pursues a scientific technique that involves creating a hypothesis and gathering information from experiments to verify whether the hypotheses are right or wrong. 3.4 Secondary research Secondary research will also be used as part of the research methodology. Different secondary sources like related dissertations, journals, books, NPOs’ websites and theses would be used in the research. Secondary research will involve information that has already been generated, historical and contemporary as well as quantitative and qualitative. The secondary research will involve gathering information from sources like magazine articles, NPOs websites, as well as reports on marketing research. It will also include information gathered previously by marketers from external and the internal source. The information will be sourced from letters, research papers, documents, and autobiographies. The secondary research will be beneficial because it will help save money and time and would offer access and information to NPO’s marketing strategies. Importantly, the use of secondary data will facilitate the access of valuable information and would help align the focus of the primary research. Mostly, the secondary research originators include information regarding how they gathered their data. This could involve the information that details the procedures utilised in gathering the data as well as challenges experienced while conducting the primary research. The detailed challenges would help the researcher prepare before conducting the primary research. 3.5 Population and Sample Selection The sampled population will include consumers, experts, donors, and volunteers at ActionAid Australia. The focus of the research will be on ActionAid Australia, from different departments (managerial and operational levels). The total number of participants will be 230, and they will be selected according to the role they play at ActionAid Australia. Participants will be selected through random sampling, whereby all members of the sample population have an equal opportunity of being selected as a participant. Random sampling will be the easy way of assembling the study sample and will is also the fair way choosing the sample. Random sampling is more preferable because of the ease of use as well as representation accuracy. This sampling technique would make it easy for a large population to be sampled and creates no need for the population to be divided into sub-populations. The researcher will generate a simple random sample through a comprehensive list of the larger population. Then the respondents to take part in the study will be selected randomly. The respondents selected for this study (n = 230) will include ActionAid Australia managers (n = 15), experts in marketing (n = 30), volunteers (n = 60), consumers (n = 125). 3.6 Data analysis Data from the questionnaires, interviews and focus groups will be verified first before being analysing data statistically by the SPSS. Information that will be deemed less useful will not be analysed. The objective of using the SPSS is attributed to the fact that it interprets participants’ responses very fast and also represents data in a way that could easily be interpreted. In addition, SPSS will be utilised to calculate the descriptive measures like mode, frequencies, median, mean, as well as percentages. For that reason, the descriptive analysis will be used to represent the respondents’ response central tendencies; in consequence, facilitating the calculation of the nominal. In view of the topic area, the SPSS will be utilised to provide the distribution of percentages. 3.7 Expected Resources The research will involve a lot of resources such as a laptop, Tablet and mobile device with an internet connection as well as software such as Microsoft Excel, Microsoft word, and SPSS. Besides that, the research will require office materials such as papers and pen and a temporary premise for coordinating the research process and activities. Some amount of money (approximately $3,000) will be used to print materials, make calls, send mails, make visits, and for the research’s food and water. The online scholarly database, Google Scholar, and other platforms will be used to facilitate secondary research. 3.8 Research Project Plan Task Person(s) Liable September – October November -December January –February March – April Topic Selection Literature review Preliminary research and field work Developing research question and hypotheses Conducting Research Completing the draft proposal Research methods and Data Collection Data analysis Thesis writing Publications Thesis submission 4.0 References Brady, E., Brace-Govan, J., Brennan, L. & Conduit, J., 2011. Market Orientation and Marketing in Nonprofit Organizations. Indications for Fundraising from Victoria. International Journal of Nonprofit and Voluntary Sector Marketing, vil. 16, no. 1, pp.84-98. Dolnicar, S. & Lazarevski, K., 2009. Marketing in non-profit organizations : an international perspective. International Marketing Review, vol. 26, no. 3, pp.275-91. Goswami, S., Maheshwari, M. & Dhiman, M., 2010. Marketing strategy for Non‐Profits in developing economies: Volunteer market segmentation. Research Paper. Hauz Khas, New Delhi: Department of Civil Engineering Indian Institute of Technology. Hussain, S.B., Rawjee, V.P. & Penceliah, S., 2014. The applicability of relationship marketing at non-profit organizations: a developing country perspective. Problems and Perspectives in Management, vol. 12, no. 4, pp.155-60. Otieno, L.A. & Wallace, A., 2016. Strategic Factors Influencing Successful Implementation of Strategic Plans: A case of Non-Governmental Organization in Migori County, Kenya. Imperial Journal of Interdisciplinary Research, vol. 2, no. 7, pp.6-14. Parthasarathy, V., 2013. Social Marketing Strategies of Successful NGOs- A Strategic Perspective with Reference to Selected NGOs in the States of Karnataka & Tamil Nadu. International Journal of Business, vol. 7. no. 1, pp.28-62. Perkins, A., Algren, M. & Eichhor, K.C., 2011. The Use of Integrated Marketing Communications by U.S. Non-profit Organizations. Working Paper. Weimer St, Gainesville, FL: Institute for Public Relations. Pope, J., Isely, E.S. & Asamoa-Tutu, F., 2009. Developing a Marketing Strategy for Nonprofit Organizations: An Exploratory Study. Journal of Nonprofit & Public Sector Marketing, vol. 1, pp.1-26. Poudel, D., 2011. Strategic Marketing Plan for Silver Lining Creation Ry. Thesis. Helsinki: Arcada University of Applied Sciences. Tabaku, E. & Mersini, M., 2013. Overview of Marketing Means Used by Non-Profit Organizations: A Detailed Overview of NPOs Operating in the District of Elbasan. Journal of Marketing and Management, vol. 4, no. 2, pp.78-95. Read More