Rural marketing


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Rural marketing, NGO,NGO'S,Marketing,Rural

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Rural marketing

  1. 1. NGOs in Marketing Vikram Dahiya IIM-Rohtak
  2. 2. “ NGO Marketing” <ul><li>A confusing topic with conflicting connotations </li></ul><ul><li>Non- Profit – Fair Trade – Producer Empowerment </li></ul><ul><li>Diverse legal forms – aims & objectives – approaches </li></ul><ul><li>Government sponsored – PPPs- Section 25 companies- Multi lateral agency promoted- Companies </li></ul><ul><li>Complex marketing challenges & issues </li></ul><ul><li>Variety of options – interventions – strategies </li></ul><ul><li>Few successes, many failures for IGPs </li></ul>
  3. 3. NGO Marketing Paradigms Organisation Development Approach Market Development Approach <ul><li>Service provider- One or all marketing operations </li></ul><ul><li>No encouragement for competition & market development </li></ul><ul><li>Works for a specific target group </li></ul><ul><li>Unsustainable unless run on commercial principles </li></ul><ul><li>Example: BAIF </li></ul><ul><li>NGO as a facilitator </li></ul><ul><li>Works to develop the market & promote competition </li></ul><ul><li>Sustainable if it succeeds in market development </li></ul><ul><li>Needs grants or outside subsidy </li></ul><ul><li>Difficult to run on commercial principles </li></ul><ul><li>Example: IDE </li></ul>
  4. 4. OD Approach: Jaipur Rugs Foundation Source: Jaipur Rugs Foundation Webpage
  5. 5. Continued Micro Markets Approach <ul><li>Work with local markets, local skills and local products </li></ul><ul><li>Analysis of haats and other weekly markets </li></ul><ul><li>Microfinance to micro enterprise through micro- planning </li></ul><ul><li>Mart 3 M Model </li></ul><ul><li>Example: Support for marketing under the aegis of WORLP in Orissa </li></ul>
  6. 6. 3 M Approach – MART Microfinance Micro markets Micro planning <ul><li>First input required to start income generating activity </li></ul><ul><li>SHGs already in existence and functioning systematically </li></ul><ul><li>Possible for a group member for starting a micro enterprise </li></ul><ul><li>Micro markets are perennial or periodic markets </li></ul><ul><li>Local markets are important for poor women entrepreneurs </li></ul><ul><li>Better access and control vis-a –vis distant town and city markets </li></ul><ul><li>To assess the local market demand pattern through surveys of local haats and village shops </li></ul><ul><li>Local resources available such as raw materials, infrastructure, skills & support services </li></ul>
  7. 7. Cont’d Source: Presentation by K P Mishra (Mart), XIMB -2004
  8. 8. 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 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)
  9. 9. 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
  10. 10. Solving Issues <ul><li>Comprehensive SWOT </li></ul><ul><li>Beneficiary (Client)- Business matching </li></ul><ul><li>Freeing the entrepreneur – Very often neglected issue </li></ul><ul><li>Kudumbashree – SIDBI RIP & Rajiv Gandhi Udyami Mitra Scheme are cases in point </li></ul><ul><li>Experience of Udyog Vikas </li></ul><ul><li>Group or individual approaches </li></ul><ul><li>Market efficiency criteria Vs Community benefit criteria </li></ul>
  11. 11. Product- Market Options Adaptation of Ansoff’s Product – Market Grid Identification of Product – Market Options & Product – Market fit vital for success Products Present Markets New Markets Present Products Market Penetration Market Development New Products Product Development Diversification
  12. 12. Cont’d Adapted from Dr. L K Vaswani, IRMA – 2005 Market Dimensions of Competition ( Indicative) Price Promotion Product Distribution Market Resistance Policies Micro Rural Semi- Urban Urban
  13. 13. Conclusion <ul><li>Map rational & emotional value chains </li></ul><ul><li>Identify opportunities presented by the value chain analysis </li></ul><ul><li>Decide on the approach & develop capacities after SWOT analysis </li></ul><ul><li>Map present position of the target group in the value chain and attempt one jump at a time </li></ul><ul><li>Marketing requires appropriate & separate organizational structure </li></ul><ul><li>Plan for viability from day one </li></ul><ul><li>Facilitation & service provision may cause conflict of roles and interests </li></ul>Adapted from Prof. D N Rao, XIMB 2004
  14. 14. Close of Session <ul><li>Thank You </li></ul>