Научная статья на тему 'THE PECULIARITIES OF MARKETING IN NON-GOVERNMENT ORGANIZATIONS'

THE PECULIARITIES OF MARKETING IN NON-GOVERNMENT ORGANIZATIONS Текст научной статьи по специальности «Экономика и бизнес»

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NPO / MARKETING MIX 4P / 4C / VALUE FOR THE CONSUMER / PROMOTION

Аннотация научной статьи по экономике и бизнесу, автор научной работы — Egikyan Garik Robertovich

The article presents an analysis of the use of basic marketing tools for nonprofit organizations, considering their specifics. The work examines the fundamental works and concepts of marketing that can be used for NPOs. For example, the article provides an analysis of the concept of 4P, each element of which (Price, Product, Place, Promotion) is disclosed according to the specifics of nonprofit organizations. The analysis of 4C is also given.

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Текст научной работы на тему «THE PECULIARITIES OF MARKETING IN NON-GOVERNMENT ORGANIZATIONS»

Научно-образовательный журнал для студентов и преподавателей «StudNet» №5/2022

Научная статья Original article УДК 33

ОСОБЕННОСТИ МАРКЕТИНГА В НЕКОММЕРЧЕСКИХ

ОРГАНИЗАЦИЯХ

THE PECULIARITIES OF MARKETING IN NON-GOVERNMENT

ORGANIZATIONS

Егикян Гарик Робертович, Студент, Российский Экономический Университет им. Г.В. Плеханова, Москва, Россия, egikvangarik@gmail.com

Egikyan Garik Robertovich, Student, Plekhanov Russian University of Economics, Moscow, Russia, egikvangarik@gmail.com

Аннотация: В статье представлена аналитика применения основных инструментов маркетинга для некоммерческих организаций, с учетом их специфики. В работе рассмотрены основополагающие труды и концепции маркетинга, которые могут быть использованы для НКО. Так, например, в статье приводится анализ концепции 4P, каждый элемент которого (Price, Product, Place, Promotion) раскрывается согласно особенностям некоммерческих организаций. Также приводится анализ 4C.

Annotation: The article presents an analysis of the use of basic marketing tools for nonprofit organizations, considering their specifics. The work examines the

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fundamental works and concepts of marketing that can be used for NPOs. For example, the article provides an analysis of the concept of 4P, each element of which (Price, Product, Place, Promotion) is disclosed according to the specifics of nonprofit organizations. The analysis of 4C is also given.

Ключевые слова: НКО, маркетинг микс 4P, 4С, ценность для потребителя, продвижение

Keywords: NPO, marketing mix 4P, 4C, value for the consumer, promotion

With the growing number of NPOs, the study of their marketing activities is an urgent task of modern management science. Nonprofit activities are often insufficiently effective due to the lack of profit indicators in evaluating an organization's activities, the independence of organization funding from performance, and the presence of monopoly in a particular market for nonprofit services.

Philip Kotler pays special attention to the concept of "image" in regard to NPO marketing, which, in his opinion, is mostly tried to maintain by NPOs seeking to earn a high reputation in society, thereby maintaining and multiplying their audiences. At the same time, other important elements of marketing recede into the background [4, c. 752].

The Russian scientist E.P. Golubkov, influenced by the authority of Philip Kotler, reveals the concept of social marketing as a type of marketing, which consists in the development, implementation and control of social programs aimed at increasing theperception of certain social ideas, movements or practical actions by certain layers of the public [3].

Another contemporary Russian scientist engaged in research in the field of nonprofitmarketing, Professor Sergei Nikolaevich Andreev, Doctor of Economics, notes thatmany works by scholars in the field of NPOs do not contain a holistic marketing concept, but include only individual tools and procedures [1, c. 34-36].

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As the review of scientific literature shows, this area has not been sufficiently studied, so there is no theoretical and methodological base that could become the basis for studying the marketing of any NPO in Russia. Another problem is the state regulation of marketing activities of a non-profit organization. In spite of the relative independence of these institutions, their marketing activities should not contradict the policies pursued by the state [10].

As such, the marketing approach began to be developed and implemented in the sphere of commercial exchange. The goal of marketing activity was profit maximization, which was achieved through purposeful activity in two main keys:

1. the study of consumer needs and expectations, followed by the manufacture of products that correspond to them;

2. Generating customer demand for products already being sold or produced.

Since the second half of the 20th century marketing technologies begin to penetratethe nonprofit sphere as well, with the primary goal of achieving a certain social effect, a positive response of society to the activities of NGOs, which was called "social marketing". Later on, this term was also used to refer to NCOs' activities to promote their services and goods. In the Russian Federation, the first NCOs to use marketing tools were organizations operating in a competitive environment - educational institutions and political parties. After them, marketing penetrated into other NCOs as well, getting the name "noncommercial marketing" [2, c. 59-67].

All existing approaches to the definition of the marketing mix provide an understanding of what factors influence the response of the target audience. However, none of the modern approaches explains exactly how it is necessary to manage these factors in order to obtain the necessary social effect, what volume of noncommercial services the organization will be able to offer if it will make an impact with a certain intensity. Thus, modern marketing concepts are mostly descriptive.

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As has already been noted, the marketing mix in the activities of both for-profit firmsand in the work of nonprofit organizations must be based on the most common marketing concepts.

One of the most well-known in the commercial environment marketing-mix concept"4P" includes 4 main components: Product + Price + Place + Promotion. In the context of the marketing of a nonprofit organization, the elements of the marketing-mix concept 4P will look as follows [6, c. 576].

"Product" - Marketing of services is a marketing policy for the formation of a rangeof services, their quality, the form of their provision, naming, branding, the image of the NPO providing the service, etc. Implementation of the product policy is basedon providing services demanded in the market, as well as on the orientation of the organization to the needs and requirements of the consumer (including potential). Inthis regard, there is a need for a competent policy of the range of services and study of their life cycle in order to respond to changes in a timely manner. Provided services should always be relevant, demanded and timely. Fulfillment of these conditions will allow not only to keep the existing positions on the market, but also to improve them.

"Price" - price marketing - has a place in the activities of NPOs, since according to the Civil Code, these types of organizations have the right to make a profit in the process of their activities. The policy is based on the development of the price level,methods of price promotion of sales and price competition. In today's market conditions, even for NPOs, price is an important factor that customers pay attentionto when deciding to purchase goods. In the process of pricing management, it is necessary to plan the pricing strategy as carefully as possible and consider all the essential features of the service itself (cost price, market position, competitors' policies, characteristics of potential customers).

"Place" - the place and time of the service. Sales marketing in this case is based on selection of optimal ways of service provision, organization of prompt response to requests (applications) of citizens. The category "place of service

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delivery" in marketing of nonprofit organizations becomes of paramount importance. The place is viewed from the standpoint of accessibility of the organization's services to its consumers. In the concept of "5P" management of this category makes it possible to effectively reach the target audience, competently locating branches and providing its clients with services where it is convenient for them.

"Promotion" - marketing of communications - this element of marketing is based on the formation of a system of informing potential customers, creating a positive opinion about the organization in different ways. Promotion" block includes a set of activities to promote the services of the non-profit organization, which includes: advertising, public relations (PR), direct marketing, propaganda, sales promotion, personal sales, etc. Since the quality of services provided by NCOs largely depends on the employees providing those services, in order to attract consumer attention, it is necessary to focus on the specialists who work in the organization.

The concept "4P" was born in 1960 thanks to Jerome McCarthy and was widely developed in 80-90s of the last century. Nowadays this model is actual in questionsof the organization marketing of the organization, however, as practice shows, it is more focused on the tangible goods, rather than on the intangible services which weare talking about when we investigate NCOs [7]

That is why later the concept of "5P" appeared, which is associated with the identification of the importance of such an element as people (thus, the concept of 4P is supplemented by another element "+ People").

"People" is relationship marketing. The "People" element complemented the existing "4P" concept relatively recently, in the 1990s, because marketers identified the need to develop an organization's HR policy on the "people interaction system".

In this case we are talking not only about clients, but also about outside organizationswith which the NPO has interaction in the course of its activities, as well as about internal personnel interactions - personnel policy, including the

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selection and training of personnel, focused on the goals of the organization and on the client; thesearch for potential clients. The "People" category can be used in NPO marketing to refer to activities to manage the client base, address the issue of streamlining and distribution of the flows of applicants (visitors). Using the example of the b2b sphere, relationship marketing in NCOs' activities helps to establish contacts with partners. This element of the marketing complex can rightfully rank first in terms ofimportance in NCO marketing.

Another stage in the development of the original marketing model was the emergence of the "7P" model. It is an even more advanced concept which supplements the marketing complex with two additional elements included in it:

"Process" - the study and organization of the service delivery process, and "Physicalevidence" - physical characteristics.

Also, later on, the marketing-mix concept was supplemented with two more elements, forming the "9P" model: "public relations" - public relations, and "personal selling" - personal sales. Regarding the appropriateness of considering these elements of the model, it can be noted that the final two elements included in the "9P" model are components of one of the previous ones - "promotion". In addition, it is difficult to talk about the concept of "personal sales" with regard to NCOs. This criterion should be replaced with the concept of "personal promotion" or "personal promotion," which should characterize not the work of an individual salesperson, but the work of an NCO employee in the direction of offering NCO services [9].

Currently, many organizations are actively interpreting the marketing mix model based on their specifics. New R's appear in the model that best fit their objectives.

Among the most appropriate to the activities of nonprofit organizations are: "Positioning" - positioning to manage the right image and associations in the mind of the target consumer; "Purchase" - the process of making a purchase (receiving a service), which helps to highlight in the marketing plan the programs designed to

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manage the process of receiving a service, build a process model, develop activities that attract the consumer to the brand at each stage. The right awareness of the process of receiving a service helps to build the right brand communication - to be in the right place with the right offer.

All of the considered variations of the marketing-mix model are used in commercial marketing to promote, predominantly, merchandise. Nonprofit organizations are mostly engaged in providing services, so it is necessary to define the essence of theservice and find the optimal marketing model that is appropriate for it [8, c. 39-41].

The concept "4C" is used in the consideration and selection of tools that can generateconsumer sympathy and interest in specific services.

The author of the "4C" concept is R.F. Lauterborn, a professor at Columbia University, who in the late 1980s made a reorientation of "4P" marketing complex to "4C". Philip Kotler, the founder of modern marketing, interprets the "4C" model as follows: "The concept of "4C", where the product is comparable to the value for the consumer (Customer value), the price - with the costs of the consumer (Customer costs), the place - with the accessibility of the goods for the consumer (Customer convenience), and the promotion - with the awareness of the consumer (Customer communication)" [5, c. 26].

As a result of a detailed analysis of the elements of the presented model "4C" the reasons for its effectiveness for service organizations become obvious. Consideration of values and needs, costs and expenses, availability, and awareness of consumers allows for organizing the process of service provision in the most effective way. At the same time, there is a formation of a loyal consumer and long-term relationship with him, which is the most advantageous for the company, rather than a constant search for new consumers.

The service itself is intangible, which means that the organization providing it is forced to apply all possible marketing tricks so that the potential consumer turned toit for services.

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This model allowed to justify the necessity of forming programs in any organizationaimed at the formation of consumer loyalty. "4C", first of all, is aimed at its consumer: his desires, and preferences. Application of this model means joint fruitful cooperation and getting feedback from your client in order to further improve your services, as well as mechanisms and technologies of their provision.

The study of non-profit organizations highlighted a number of their features. First, non-profit organizations do not aim to make a profit. Secondly, they provide mainlyintangible services to the population, characterized by the properties of the inseparability of provision and consumption, variability and inability to be stored, as well as services that are subject to demand fluctuations. To be effective, the developed marketing management methodology should be based on the peculiarities of non-profit organizations and the specifics of services.

Литература:

1. Андреев С.Н. Процесс потребительского поведения некоммерческой продукции // Инициативы XXI века. 2014, №4, С. 34-36.

2. Борисова Т.М. Векторы внедрения маркетинга в отечественную практику некоммерческих организаций. Инновационный маркетинг и менеджмент. 2015. № 4. С. 59-67

3. Голубков Е.П. Основы маркетинга: Учебник. Москва: Изд-во "Финпресс", 1999. - 656 с. ISBN 5-8001-0018-7

4. Котлер Ф., Армстронг Г., Вонг В., Сондерс Дж. Основы маркетинга. 5 -е изд. Москва: И.Д. ООО «Вильямс», 2012. 752 с.

5. Лаутерборн, Р.Ф. Новая маркетинговая литания: 4Ps Passe; 4Cs берут на себя / R.F. Лаутерборн//Век рекламы, 1990.-1 окт.- с. 26

6. Липшиц И.В. Маркетинг. Учебник для студентов бакалавриата. Москва: ГЭОТАР-Медиа, 2012 - ISBN 978-5-9704-2112-3 - 576 с.

7. Скоробогатых И.И., Муртузалиева Т.В. Маркетинг: учебник / М.: РЭУ им. Плеханова, 2014. Коллектив авторов. Глава. 10 (0,70 п.п.), Глава 15 (0,75 п.п.).

8. Сысолятин А.В. Модели маркетинга услуг. Проблемы современной науки и образования. 2014. № 11 (29). С. 39-41.

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10. Жариков Г.А., Становкин С.К. Маркетинг и его особенности в России. Монография / Москва, 2014.

References:

1. Andreev S.N. The process of consumer behavior of noncommercial products// Initiatives of the XXI century. 2014, No4, P. 34-36.

2. Borysova T.M. Vectors of marketing implementation into domestic practice of non-profit entities. Innovation marketing and management. 2015. No. 4. pp. 5967

3. Golubkov E.P. Fundamentals of Marketing: Textbook. Moscow: Publishing house "Finpress", 1999. - 656 p. ISBN 5-8001-0018-7

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© Егикян Г.Р., 2022 Научно-образовательный журнал для студентов и преподавателей «StudNet» №5/2022.

Для цитирования: Егикян Г.Р. ОСОБЕННОСТИ МАРКЕТИНГА В НЕКОММЕРЧЕСКИХ ОРГАНИЗАЦИЯХ// Научно- образовательный журнал для студентов и преподавателей №5/2022.

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