Marketing for Non-profit Organisation - Oxfam - Essay Example

Table of Contents Table of Contents 1.0 Introduction 2 Company Overview: Oxfam 3 Research Methodology 4 4.0 Situational Analysis 4 4 SWOT 5 4 1Strengths 5 4.1.2 Weaknesses 6 4.1.3 Opportunities 7 4.1.4 Threats 8 4.2 Analysis and Positioning 9 5.0 Marketing Strategy/Marketing Mix 10 6.0 Conclusion and Critique 12 7.0 References 13 8.0 Questionnaire 14 1.0 Introduction Management and marketing scholars have determined that public sector and non-profit organisations are largely modelled after the traditional bureaucratic organisational structure, as influenced by Weber (Gibson, 1966; Cane and Thurston, 2000; Dent, Chandler and Barry, 2004). The implication is that all of the four components of organisational structure-labour division, departmentalisation, span of control and scope of decision-making-are shaped by bureaucratic-traditionalist managerial theory. This, according to numerous management scholars, has only served to offset an organisation's inherent capacity for flexible response to changing external conditions and has, in the long run, resulted in the formulation of mechanistic and atrophying organisations (Gibson, 1966; Cane and Thurston, 2000; Dent, Chandler and Barry, 2004). Marketing scholars have similarly contended that the aforementioned only functions as an obstacle to public sector organisation's capacity for the design and, more importantly, implementation and adherence to marketing strategies and plans. Even though management and marketing scholars have tended towards the critical perception of public and non-profit organisations, others insist that these perceptions are, to a large extent, both outdated and misinformed. Certainly, many public and non-profit organisations tend towards the aforementioned characteristics but, many others do not. The failure of some marketing and management scholars to recognise this is an outcome of their own misconceptions regarding public and non-profit organisational models and structures and does not, necessarily, reflect the reality. Indeed, marketing scholars have proposed that the capacity of public and non-profit organisations to succeed, to respond to external environmental conditions and to achieve their strategic objectives is, to a large degree, predicated on the presence, versus absence, of a well-formulated marketing strategy. This is also the position that this research adopts and which it shall seek to establish through focus on Oxfam, a non-profit UK charitable organisation. By formulating a strategic marketing plan for Oxfam, the research shall establish that indeed, the key to organisational success is often, at least partially, dependant on a well-designed marketing plan. Company Overview: Oxfam The Oxford Committee for Famine relief, popularly known as Oxfam, was established in 1942, in the wake of the Nazi occupation of Greece, France and other European nations. From the outset, the organisation's objectives were specifically humanitarian and, more precisely, focused on the relief of hunger and famine aid. While it is a UK charitable organisation, its activities are global, seeking the address of famine and poverty wherever it may be found, irrespective of region, country or geographic and cultural boundaries (History of Oxfam,' 2007). In order to attain its objectives, Oxfam primarily relies on individual and private sector charitable donations. The proposition being forwarded in this research is, within the context of a global environment which is replete with charitable organisations, many of whom operate on a global level, accessing donations and accumulating the requisite resources for the fulfilment of strategic objectives is, more often than not, difficult. Quite simply stated, there is extreme competition, with the key to success being a marketing plan as which centralises the organisation in the minds/consciousness of potential donors. Research Methodology The study relies on two data collection methods. The first is secondary sources, or relevant literature, both academic as found in journal articles and books, and non-academic, although reliable, such as the Oxfam website. The second is primary data, as collected through a questionnaire. Needless to say, interviews with Oxfam employees and managers would have been the optimal primary data collection instrument but time-constraints and the difficulties the researcher experienced in trying to set up appointments for this purpose made this option unrealistic. It was, thus, that the researcher decided to collect primary data through questionnaires distributed among members of the general public, 30 in all. The purpose of the questionnaire was the determination of levels of public awareness and support for Oxfam, as would function as a guide towards a better understanding of the external environment's views on, and attitudes towards this organisation. 4.0 Situational Analysis The importance of conducting a situational/marketing analysis, as would aid in positioning decisions, emanates from the following: "VPNOs [voluntary non-profit organisations] are facing increasingly competitive and challenging operating environments in the new millennium" (Chew, 2003: p. 288). There are hundreds of thousands of registered charity organisations in the United Kingdom, not to mention globally, with the implication being that the capacity of any to attract the volume of donations necessary for operation and realisation of charitable objectives, ultimately dependant upon an accurate situational analysis and, proceeding from that, positioning. The determination of the stated is linked to the execution of a SWOT analysis: 4.1 SWOT A SWOT analysis is comprised of both the examination and evaluation of external and internal environmental conditions. Thus, be carrying out a SWOT analysis in relation to Oxfam, one can gain an insight into its internal environmental strengths and weaknesses, on the one hand, and the threats and opportunities existent in its external environment, on the other. 4.1.1 Strengths From within the context of its internal environment, Oxfam has several identifiable strengths. The first of these is the strength of the brand. Oxfam is one of the oldest charity organisations in the United Kingdom and with headquarters, offices and branches in three continents, has a high level of visibility, implying familiarity with the brand. Indeed, the results of the questionnaires distributed among members of the general public established the truth of the stated, whereby all responded had heard of Oxfam and regarded it as a respectable charitable organisation with whom, to their recall, no donation or charity scandals was ever associated. This leads us directly to its second strength, which is ethics. In brief, Oxfam is a respectable and renowned charity organisation. Other equally important areas of internal environmental strength are its infrastructure, capacity for efficient delivery, its human resources and its local area and language knowledge. Oxfam, as may have been deduced from the preceding, has a strong infrastructural base, spanning three continents and which has evolved and been invested in over a period of six decades. Its infrastructure, comprising both global scope and human resources, have allowed for an efficient and effective aid/service delivery mechanism. Furthermore, as may be inferred from Black's (1993) analysis, Oxfam's highly developed infrastructure, as defined in terms of the scale of its global operations, on the one hand, and its presence in three continents and dozens of countries on the other, has allowed it an intimate knowledge of the culture, countries and people whom it serves through its charitable missions. As it hires locals in these offices, Oxfam is not an outsider but an insider (Black, 1993). This too, is an area of intra-organisational strength. 4.1.2 Weaknesses Intra-organisational strengths, however, are confronted with a number of organisational weaknesses. Quite simply stated, the sheer size of Oxfam's global operations means that it is a resource-consumptive organisation. The cost of running the organisation and maintaining its operability is very high. Added to that, the sheet scale of this particular charity organisation lends to management problems (Black, 1993). Quite simply stated, it is difficult to maintain control over an organisation which operates in three continents and dozens of countries, all of which have their different sets of problems, different strategies fir addressing these problems and different priorities. In addition to the weaknesses outlined in the preceding paragraph, another source of intra-organisational weakness lies in Oxfam's relationship with its external environment, or with potential donors. As the questionnaire revealed, Oxfam is a high profile charity organisation and all respondents were very familiar with it. However, few were aware of the nature of the humanitarian activities Oxfam is involved in, or with the geographic scale of those activities. Added to that, few were aware of the channels for specifically donating to Oxfam's causes. This, in itself, indicates that the organisation does not maintain a strong and effective communication channels with its external environment and, hence, is an internal organisational weakness. 4.1.3 Opportunities Within the context of identifiable opportunities, as determined through an analysis of Oxfam's external environment, there most important is the organisation's high profile. Oxfam is a part of British life and has been synonymous with charity for over 60 years. The implication here is that, within the framework of its external British environment, Oxfam attracts the greater percentage of donations (Black, 1993). Another opportunity lies in the organisation's presence across the world, as a local, not a particularly British, organisation. The implication here is that it has immediate ties with the various environments within which it operates, placing it ahead of its competitors insofar as the attraction of donations is concerned (Black, 1998). 4.1.4 Threats The primary threat confronting Oxfam is competition. As Chew (2003; p. 290) writes: " the operating environment of charities in the UK is becoming increasingly competitive and share common market challenges with their counterparts in the public and private sector: they compete for revenues and scarce resources with other non-profit, private and public sector organisations; they operate within particular legal and regulatory boundaries; they are influenced by changes in the economic, technological and political environments; and they interact with different groups of stakeholders in the process of providing/delivering their services." The environmental threats confronting Oxfam, as with other charity organisations in the UK, are competition over scarce resources, the legal and political framework governing, and often limiting the activities of charity organisations, and their relationship with the external environment per se. 4.2 Analysis and Positioning Proceeding from the above stated, it is evident that there are a number of issues which Oxfam's marketing strategy need address. These are high visibility versus low levels of awareness regarding channels for contribution, management of the organisation, communication with the external environment and competition. Even as one claims these issues can be addressed through a marketing strategic plan, one has to qualify this with an emphasis on positioning as the predicator of successful marketing plans. Chew (2006; p. 335) more than amply establishes the importance of positioning when writing that "positioning is a managerial process within the organisation to develop an organisation-level positioning strategy that aims effectively to distinguish the organisation from other service providers." It is a strategy by which an organisation defines its place in the market in such a way as to emphasise its strengths, exploits existent opportunities and offset, or potentially negate, threats and weakness. In light of that which the SWOT analysis has uncovered about Oxfam and the environment within which it operates, one can say that its greatest strength is the brand itself - the Oxfam name and its place, not just within its external environment but in the history of British charity and humanitarianism. From a personal perspective, this sets Oxfam apart from its competitors, both as regards the young and the old. For the latter, Oxfam can arguably be presented as having been born with them, as being a part of their own life experiences. As regards the former, Oxfam represents the bridge between the past and the present and stands for continuity. More importantly, it stands for ethics, trust, accomplishment and global citizenry. The implication here is that Oxfam can be position to address all generations of income-earning Britons. However, given that Oxfam is, in an age of globalisation, a long-time advocate and proponent of global citizenry and considering that while it may be a UK charity organisation, it is truly a global/international one, I believe that it should more solidly position itself towards a greater focus on the future - the younger, cross-national generation. This is because its history has already established it with the older generation but it is the younger one which is largely unaware, as the questionnaire revealed, of Oxfam's activities and which needs to be drawn in. Therefore, focus should be on the younger generation. Nevertheless, Oxfam's capacity to successfully position itself vis--vis this generation is predicated on its marketing mix. 5.0 Marketing Strategy/Marketing Mix As earlier noted, the sheer size of its operations renders Oxfam a resource consumptive organisation, with the implication here being that it does not have the resources for an intensive, high profile marketing campaign. This, however, is not a problem especially when we recall that the focus/audience was identified as the younger generation, a technology-savvy generation. It is precisely because of this that the proposed marketing strategy should focus on the Internet. The Internet is a powerful marketing medium, especially because its two-way, interactive model allows for the formation of relationships between an organisation and its public or, at least, the impression of a relationship. The advantage of the internet as an IMC tool is that it exploits both two-way asymmetrical and two-way symmetrical communication models. As Dozier, Grunig and Grunig (1995: p. 41) write in thus regard, "in both two-way models, research provides feedback provides feedback from publics to management, closing the loop and making communication two way." In other words, relationships are established and, of equal, if not more, importance, the organisation attains a unique insight into the modes of thought of potential donors an, therefore, is able to respond to their demands and requirements. In order to better understand the logic behind the aforementioned medium as the focal point of Oxfam's proposed marketing strategy, it is necessary to recall that the primary objective of marketing is to draw in potential consumers/donors./service users to the organisation in question. At the same time, consumers/donors/service users want organisations to ear their voice, to respond to their suggestions and demands (Dozier, Grunig and Grunig, 1995). The two-way communication model, in direct comparison to the one way medium afforded by TV, radio, print ads or even celebrity endorsements, allows both the public and the organisation to communicate with, and influence one another, to negotiate a position which addresses the concerns and objectives of both. It will give Oxfam an edge over its competitors and will allow it to establish a personal' relationship with potential donors. It is precisely because of this that the internet has been proposed here as the medium of communication and the marketing channel through which Oxfam will establish a relationship with its external environment. 6.0 Conclusion and Critique There is no doubt that the proposed marketing plan is rather radical, insofar as it ignores other mediums of communication and focuses exclusively on the Internet. There is also little doubt that the popularisation of Oxfam's internet presence will, in itself, require marketing. Consequently, in the earlier stages of implementation, it is necessary to use the more traditional marketing channels to popularise Oxfam's web presence and, it will also e necessary to continue that marketing, although on a lesser scale, to maintain and sustain Oxfam's name-recognition. However, beyond that, the focus will be upon the stated medium for two reasons. In the first place, it is the channel through which to reach the identified audience. In the second place, it allows for two-way communication, thereby personalising and humanising the organisation. It is further ideally suited to Oxfam given the fundamentally transnational identity of the Internet and Oxfam's global presence. It will, in other words, allow it to address and communicate with a cross-national audience. These, therefore, are the reasons for the selection of this medium. 7.0 References Black, M. (1993) A Cause for Our Times - Oxfam: The First Fifty Years. Oxford: Oxford University Press. Cane, P., and Thurston, A. (2000) A Strategic Resource for Public Sector Management. London: Stylus Publishing LLC. Chew, C. (2003) What factors influence positioning strategies in voluntary non-profit organisations Towards a conceptual framework.' Local Governance, 29(4). Chew, C. (2006) positioning and its strategic relevance.' Public Management Review, 8(2). Dent, M., Chandler J. and Barry, J. (2004) Questioning the New Public Management. London: Ashgate Pub. Dozier, D.M., Grunig, J.E. and Grunig, L.A. (1995) Manager's Guide to Excellence in Public Relations and Communications Management. New Jersey: Lawrence Erlbaum. Gibson, J.L. (1966) Organisational theory and the nature of man.' The Academy of Management Journal, 9(3). Oxfam (2007) About us.' http://www.oxfam.org.uk Oxfam (2007) History.' http://www.oxfam.org.uk 8.0 Questionnaire Dear participant, This questionnaire is designed to help me better understand the marketing strategies which non-profitable charitable organisations in the UK should adopt. In my study, I am focusing on Oxfam and your feedback will help me better understand public perceptions of the organisation and whether or not Oxfam has maintained efficient and effective communication channels with its external environment. Thank you for your time and patience. About You 1. Gender male female 2. Age 20-30 31-45 46-60 61-75 3. Do you contribute to charity no yes Oxfam 4. Are you familiar with the Oxfam name Yes No 5. Are you aware of the types of activities Oxfam is involved in (combating poverty and hunger). Yes No 6. Have you ever contributed to Oxfam No, I regularly contributed to other organisations No, I do not know how or where to make my contribution Yes 7. As far as you are concerned, the Oxfam name (tick as many as appropriate). inspires trust is synonymous with charity is a symbol of British charity leaves you unaffected Read More