Market Orientation and Marketing in Non-profit Organizations: Indications for Fundraising from Victoria

Introduction

The research paper “Market orientation and marketing in non-profit organizations. Indications for fundraising from Victoria” by Brady, Brace-Govan, Brennan, and Conduit (2011) looks into the influence of market orientation on marketing techniques utilized by non-profit organizations in the state of Victoria, Australia. The author’s goals are to determine the characteristics that influence the capacity of charitable organizations to adopt a market orientation and the ways in which marketing adds to the effectiveness of fundraising efforts. The research adopts a mixed-methods approach to collect and evaluate data from non-profit organizations in Victoria, including a questionnaire and an in-depth case study analysis. The study’s findings provide vital insights into the elements that determine the marketing strategies of non-profit organizations and their success in fundraising due to such methods.

Goals and Research Questions

The main goal of this research article is to investigate the relationship between market orientation and marketing strategies in non-profit organizations. The study aims to address the following research questions:

1. To what extent do non-profit organizations in Victoria adopt a market orientation?
2. What factors affect a non-profit organization’s ability to adopt a market orientation?

• How do non-profit organizations in Victoria use marketing to achieve their fundraising objectives?

1. What is the relationship between market orientation and fundraising success in non-profit organizations?

Methods

The research employed a mixed-methods data collection and analysis strategy, primarily focusing on non-profit organizations in Victoria. This was accomplished mostly by replicating other studies that had previously been carried out to offer a point of reference for comparison. The survey was conducted among 401 non-profit organizations through Computer Aided Telephone Interviewing (CATI), and the response rate was 50%. The survey collected data on the organizations’ market orientation, marketing strategies, and fundraising success. The study also included a case study analysis of six non-profit organizations in Victoria to provide in-depth insights into the factors that affect non-profit organizations’ marketing strategies and fundraising success. The case studies were conducted by conducting semi-structured interviews with important stakeholders and an in-depth analysis of organizational records, all laid down in a table for the reader’s convenience.

Findings

The study found that non-profit organizations in Victoria need a higher level of market orientation. These findings suggest that the behaviours that comprise donor orientation, competitor orientation, and marketing integration are likely different in the context of Australia. Also, there are a lot of cross-product loadings, which would signal that the dimensions need to be more clear-cut in such a developed theoretical notion. Cross-product loadings are triggered whenever two distinct items are loaded together. Factors affecting a non-profit organization’s ability to adopt a market orientation include needing more resources, a limited understanding of market orientation, and competing priorities.

The study also showed that there is still work to adapt commercial (marketing) principles to the non-profit sector. Regarding market orientation and organizational success, many questions remain. For instance, looking into the mechanisms that enable market orientation without the seeming requirement to adopt a particular marketing culture is important. This conclusion raises the question of whether a mindset needs to be spread throughout the firm or if having processes in place ensures that activities geared toward the market happen. It is possible to anticipate the need to establish other justifications given the tension between marketing and other non-profit roles that has been documented for the UK. Conducting research that revealed the breadth and presence of marketing in non-profit organizations would be useful.

Moreover, the study found that marketing significantly affects non-profit organizations’ fundraising success. The successful non-profit organizations had a clear marketing strategy aligned with their fundraising objectives. In addition, the study found that market orientation is positively related to fundraising success in non-profit organizations.

Reactions and Application

This research piece offers significant insights into how market orientation and marketing methods influence the efficiency with which non-profit organizations raise money. Because I work in marketing, non-profit organizations must embrace a market orientation to fulfil the fundraising goals they have set for themselves successfully. The public’s knowledge of non-profit organizations and the demand for the services those organizations provide can be increased by the adoption of market orientation by these organizations. Consequently, an organization’s exposure will grow, which can result in an increase in the amount of money donated and the number of people volunteering their time. Marketing strategies that help non-profit organizations achieve the goals they have set for themselves should also be utilized by those organizations. For instance, there may be better choices than utilizing marketing strategies that are helpful for fundraising for an organization’s fundraising success if they choose to use those strategies. Suppose charitable organizations first try to learn their donors’ requirements and inclinations. In that case, they will have a better chance of adapting their fundraising techniques to satisfy the uncovered requirements. Also, the success of the fundraising effort can be considerably increased by utilizing a unique marketing strategy designed to complement the effort’s goals.

I will use some of the findings from this study in the project I am working on to develop a marketing plan for the fictitious charitable organization I created. For instance, I would ask a few of our donors about their preferences and requirements so that I can learn more about them. As a direct consequence of this, I will be able to adjust my approach to marketing and increase the amount of money I generate through fundraising. In addition, I can identify the factors determining how my team can adopt a market orientation. Consequently, I will be in a better position to prepare a conversation on how well my staff understands market orientation and how dedicated they are to it. I am finally in a position to develop and implement a fundraising strategy for the organization that is compatible with its strategy to advertise itself. With the help of this knowledge, I will be better able to adapt our techniques for fundraising so that we can fulfil the requirements of our patrons. In addition, I can devise a one-of-a-kind marketing plan for our efforts to raise money for a good cause, a plan that will stick to the goals we have outlined for the amount of money we hope to raise.

Discussion Points/Questions

1. How can non-profit organizations with limited resources adopt a market orientation and develop effective marketing strategies to achieve their fundraising objectives?
2. How can non-profit organizations measure the effectiveness of their marketing strategies and fundraising success?

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, 16(1), 84-98. https://doi.org/10.1002/nvsm.403