Service Marketing

PRESENTATION ON THE TOPIC

OF

“ UNDERSTANDING NGO INDUSTRY ”

Under the guidance of

Ms. Poonam Sharma
(Faculty Amity University, Gurgaon)

Submitted by-
Puneet Nagpal
 KEY ISSUES
• NGO – An overview
• Types
• Objectives
• History
• Governments and NGO
• NGOs Today
• Why should NGOs get involved in markets
• NGOs problems
• Marketing strategies
• NGO’s role in the business environment
• NGO’s role in facilitating business services
• NGO strategies at the interface with public and profit
• Role of NGO with business
• Advantage and disadvantage of NGO involvement in market
 NGO - A Basic Overview
* NGO means Non-government organisation
* Any organisation who is doing non profit activity is called NGO
* The aim to make NGO is to do social activities
* These organisations do not involve in commercial activities
* NGO collects fund through donation
* The source of fund may be private or govt
* NGO are also known as “Private Voluntary Organisation”

It is estimated that 40000 NGO are working internationally and more

than 1.5 million NGO are only in India. Primary purpose of an
operational NGO is the design and implementation of development-
related projects
 Types of NGO
INGO means international non govt. organization e.g :- UNO and ILO

BINGO means business oriented international NGO e.g :- CARE, REDCross & Green
peace

ENGO means environmental NGO e.g :-Global 2000

DONGO means Donor Organized NGO

GONGO means govt. operated NGO

QUANGO means quasi autonomous NGO e.g :- ISO

CSO means civil society organisation

TANGO means Technical assistance NGO

 Objectives of NGOs
Improving the welfare of the disadvantaged
Support to poor children
Old-age Home
To Provide Medical Services
To Reduce poverty
Increase employment
Animal Care
Encouraging the observance of human rights
Other social welfare activities
Improving the state of the natural environment
 History of NGO Activity in India
• Concepts of daana (giving) and seva (service).
• During the second half of the 19th century
Friend-in-Need Society (1858), Prathana
Samaj (1864), Satya Shodhan Samaj
(1873), Arya Samaj (1875), the National
Council for Women in India (1875), and the
Indian National Conference (1887)
 Government
• The Societies Registration Act (SRA) was approved in 1860
to confirm the legal status of the growing body of non-
government organizations (NGOs)
• The first Five-Year Plan stated, “Any plan for social and
economic regeneration should take into account the
services rendered by these agencies and the state should
give them maximum cooperation in strengthening their
efforts.”
• The Central Social Welfare Board was established in 1953
to promote social welfare activities and support people’s
participation programs through NGOs
The establishment of the National Community Development
Program and the National Extension Service were early steps in
this direction in 1950 A.D.

International NGOs entered India in significant numbers to

provide drought relief during two consecutive agricultural
seasons, 1965–1966 and 1966–1967.

CAPART was formed by mandate of the 7th Five-Year Plan in

1986 as a nodal agency for catalyzing and coordinating the
emerging partnership between voluntary organizations and the
government for sustainable development of rural areas.

In May 2007, the cabinet of ministers of the Government of India

approved the National Policy on the Voluntary Sector12 as the
first step in a process to evolve a new working relationship
between the government and volunteer organizations.
 Methods in which NGO operates

a) Lobbying
b) Other Social welfare projects like project for providing food,
drinking water, and poverty alleviation.

Role of NGO in Consumer awareness

NGO plays a very important role in the consumer awareness.

NGO are created for providing awareness to consumer with the
help of print media , seminars & work shops. These NGO are
also helpful to give remedies to helpless consumers. Large no. of
advocates and legal experts work voluntarily in NGO
 NGOs Today
Today, about 1.5 million NGOs work in India
According to a survey conducted by Society for Participatory
Research in Asia (PRIA),
73.4% of NGOs have one or no paid staff
More than 19 million persons work as volunteers or paid staff
with NGOs.
 26.5% of NGOs are engaged in religious activities.
While 21.3% work in the area of community and/or social service.
About one in five NGOs works in education.
While 17.9% are active in the fields of sports and culture.
Only 6.6% work in the health sector.
why should NGOs get involved in markets
• Firstly, there is increasing recognition (although not
universal acceptance) that improving access to markets for
small producers in low-income countries is a route to
poverty reduction
• It is argued that NGOs have a better understanding of and
ability to represent the needs of the poor (Farrington and
Lewis 1993)
• Because they are driven by their mission rather than profit
or vote-seeking, they should be able to command more
trust from the potential beneficiaries of their actions.
 NGO ACTIVITIES
• Its activities can be summarised as:
• Trade
• Support
• Influence
NGOs Problems

 Inadequate market information,

 Limited bargaining power,
 Lack of access to credit,
 High transaction costs
NGOs marketing strategies:-
• innovation—identifying new approaches and models for
specific development activities and drawing upon their close
knowledge of local communities;
• accountability—helping ensure that project components are
implemented as envisaged and planned;
• responsiveness—encouraging the implementation of projects
to respond to local needs;
• participation—serving as bridges between project authorities
and affected communities, and providing structures for citizen
participation; and
• sustainability—nurturing continuity in project work, especially
when the implementing agencies lack capacity or when
staffing changes.
NGO’s role in the business environment
• International arena – campaigning around international
trade rules, ethical initiatives, corporate social responsibility
etc.
• National arena – advocacy for policies and regulations that
support poor producers, create a better investment climate,
development and capacity building of appropriate
institutions, representative organisations etc.
• Local arena – interventions to influence official attitudes
and practices, demonstration projects aimed at changing
cultural assumptions (e.g. gender-based constraints)
NGO’s role in facilitating business services

• Producer extension services – support or

facilitation of input and service providers
serving small-scale producers / farmers.
• Value-chain services – support or facilitation
of service providers serving buyers, traders
and other intermediary actors in the value-
chain
NGO strategies at the interface with public
and profit
 Role of NGO
• The following ten NGO roles can be distinguished at the market-civil
society interface
1. BONGOS (Business Oriented NGOs).
2. PONGOS (Partnership Oriented NGOs)
3. BINGOS (Business Interested NGOs e.g :- CARE, RED Cross & Green peace
4. SHANGOS (Shareholding NGOs).
5. STRONGOS (Strategic Stakeholder Oriented NGOs).
6. BRONGOS (Broker Oriented NGOs).
7. SUNGOS (Supervisory NGOs).
8. DONGOS (Discussion and Dialogue Oriented NGOs).
9. WONGOS (Watchdog Oriented NGOs
10. DANGOS (Direct Action oriented NGOs
 Advantages and disadvantages of NGO
involvement in markets
Advantages
• Fair trade is a niche market but is expanding rapidly
• Independent assessments have shown evidence of benefits to
producers for example to coffee growers in Bolivia, Brazil,
Costa Rica and Mexico (CI/IIED 2006).
• The provision of credit through microfinance is another area of
success
• NGOs have raised the
• profile of small producers in international advocacy while at a
more practical
• level have helped to fill gaps in support
• NGOs can be cost-effective because the
altruism of NGO staff, motivated by the
organisation’s mission rather than financial
gain, could imply lower labour costs or higher
quality, than for a comparable private firm
(Scott and Hopkins 1999).
• NGOs have greater potential for innovation
and flexible responses to changing external
pressures
Disadvantages
• lack of financial sustainability
• institutional sustainability
• potential conflict between the business goal
and the social development goals