Description
Study on Public attitudes towards the use of marketing and communication by global non-profit organizations, A nonprofit organization, or not-for-profit organization , often called an NPO or simply a nonprofit and non-commercial organization, often called an NCO, is an organization that uses surplus revenues to achieve its goals rather than distributing them as profit or dividends.
STUDY ON PUBLIC ATTITUDES TOWARDS THE USE OF MARKETING AND COMMUNICATION BY GLOBAL NON-PROFIT ORGANIZATIONS
AB S T RACT
Background: The importance of the non-profit sector and the commercialization in it is increasing. The organizations have to deal with more competition in the fundraising market on the one hand, and they are on the other hand confronted with people who are blocking the recognition of conventional marketing expressions. Guerrilla marketing is seen as a possibility to penetrate the jungle of marketing and create word of mouth about the organization and its activities. Purpose: This thesis evaluates the public attitudes towards the increasing use of marketing and communication by global non-profit organizations and investigates for which objectives the use of guerrilla tactics in the marketing and communication mix would be accepted. Limitations: Though the data for this thesis was collected through questionnaires in Sweden, Germany and The Netherlands, there are no country dependent differences investigated. Theory: Classification of NPOs; aims of NPOs; basic model of communication; dynamic model of expectations; relationship between expectation, satisfaction and donations; marketing mix; guerrilla marketing; viral marketing; live buzz marketing; promotional mix; word of mouth. Method: Survey with more than 100 participants; interview with the fundraising responsible of Greenpeace Germany Findings and Conclusions: The public accepts the use of marketing and communication and the therefore necessary expenditures for the purpose to spread the message and gain donators. Openness and honesty in the NPOs' behaviour are considered more important than the use of less money for marketing and communication. Guerrilla marketing is not suitable for all aims of a NPO, but is accepted in order to spread the message and increase the media coverage.
I
Table of Contents
TABLE OF CONTENTS
ABSTRACT ...............................................................................................................................I ACKNOWLEDGMENT......................................................................................................... II TABLE OF CONTENTS...................................................................................................... III LIST OF ABBREVIATIONS................................................................................................VI LIST OF FIGURES ............................................................................................................. VII LIST OF TABLES ............................................................................................................... VII 1. INTRODUCTION................................................................................................................ 1 1.1 Background ...................................................................................................................... 1 1.2 Problem Discussion.......................................................................................................... 5 1.3 Research Question............................................................................................................ 7 1.4 Objective / Goal ............................................................................................................... 8 1.5 Limitations ....................................................................................................................... 9 1.6 Theoretical and Practical Relevance ................................................................................ 9 1.7 Structure of the Thesis.................................................................................................... 10 2. THE RESEARCH JOURNEY.......................................................................................... 11 2.1 Finding the Topic ........................................................................................................... 11 2.2 Finding the Organization and the Interviewees.............................................................. 12 2.3 The Problem of Gaining Access..................................................................................... 13 2.4 Adaptation of the Research Question............................................................................. 13 2.5 The Timetable ................................................................................................................ 14 3. METHODOLOGY............................................................................................................. 15 3.1 Pre-understanding and Personal Considerations ............................................................ 15 3.2 Research Strategy........................................................................................................... 16 3.3 Scientific Perspectives.................................................................................................... 18 3.3.1 Inductive versus Deductive Research Approach..................................................... 18 3.3.2 Positivistic versus Hermeneutic Paradigm.............................................................. 19 3.3.3 Qualitative versus Quantitative Approach .............................................................. 21 3.4 Data Collection Techniques ........................................................................................... 22 3.4.1 Theoretical Data Collection .................................................................................... 22 3.4.2 Empirical Data Collection....................................................................................... 22 3.5 Creditability.................................................................................................................... 23 3.5.1 Construct Validity ................................................................................................... 23 III
Table of Contents 3.5.2 Internal Validity ...................................................................................................... 24 3.5.3 External Validity ..................................................................................................... 24 3.5.4 Reliability................................................................................................................ 24 3.6 Summary of Methodology ............................................................................................. 25 4. THEORY............................................................................................................................. 26 4.1 Non-Profit Organizations ............................................................................................... 26 4.2 Aims of the Marketing of Non-Profit Organizations ..................................................... 28 4.3 Strategies and Methods to Achieve the Aims ................................................................ 29 4.3.1. Communication ...................................................................................................... 29 4.3.1.1 The Sender - Receiver Model .......................................................................... 30 4.3.1.2 Changing Perceptions and Expectations .......................................................... 32 4.3.1.3 Building and Enhancing Relationships ............................................................ 34 4.3.2 Marketing Mix......................................................................................................... 35 4.3.3 Guerrilla Marketing................................................................................................. 36 4.3.4 Promotional Mix ..................................................................................................... 37 4.3.5 Word of Mouth........................................................................................................ 40 5. EMPIRICAL FINDINGS .................................................................................................. 41 5.1 Findings of the Questionnaire ........................................................................................ 41 5.1.1 Demographic Background of the Interviewees....................................................... 42 5.1.2 Interviewees' Attitudes towards Non-Profit Organizations .................................... 42 5.1.2.1 Interest in Non-Profit Organizations ................................................................ 43 5.1.2.2 Support of Non-Profit Organizations ............................................................... 44 5.1.2.3 Knowledge about Non-Profit Organizations.................................................... 45 5.1.2.4 Marketing and Communication of Non-Profit Organizations.......................... 46 5.1.2.5 Guerrilla Marketing and Non-Profit Organizations ......................................... 52 5.2 Findings of the Interview with Greenpeace Germany.................................................... 55 6. ANALYSIS.......................................................................................................................... 61 6.1 Non-Profit Organizations ............................................................................................... 61 6.2 Marketing and Communication of Non-Profit Organizations........................................ 62 6.3 Public Judgement of the Use of Marketing by Non-Profit Organizations ..................... 67 6.4 Guerrilla Marketing........................................................................................................ 69 7. CONCLUSIONS................................................................................................................. 73 7.1 Results ............................................................................................................................ 73
IV
Table of Contents 7.2 Recommendations for Non-Profit Organizations........................................................... 75 7.3 Reflections...................................................................................................................... 76 7.4 Recommendations for Further Research ........................................................................ 77 REFERENCE LIST ............................................................................................................... 78 APPENDIX ............................................................................................................................. 82 Appendix A: Further Examples of Guerrilla Marketing by NPOs....................................... 82 Appendix B: The Questionnaire........................................................................................... 85 Appendix C: The Guideline of the Interview with the Organization ................................... 90 Appendix D: Additional Information ................................................................................... 93
V
List of Abbreviations
LIST OF ABBREVIATIONS
BRIS BUND CEO ed. ELIN et al. ICNPO IFAW mill. NBO NFP NGFO NGO NPC NPO PR PVO ROI UN UNICEF U.S. WHO WWF Barnens rätt i samhället Bund für Umwelt und Naturschutz Deutschland Chief Executive Officer Edition Electronic Library Information Navigator et alii [and others] International Classification of Nonprofit Organizations International Fund for Animal Welfare Million Non-Business Organization Not-For-Profit Non Government Funded Organization Non-Governmental Organization Non-Profit Corporation NonProfit Organization Public Relations Private and Voluntary Organization Return on investment United Nations United Nations Children's Fund United States World Health Organization World Wide Fund for Nature
VI
List of Figures / List of Tables
LIST OF FIGURES
Figure 1: Figure 2: Figure 3: Figure 4: Figure 5: Figure 6: Figure 7: Figure 8: Figure 9: Advertisement for the Hans Brink Budget Hotel in Amsterdam ............................ 2 World Water Day sticker campaign by Green Belgium.......................................... 4 The factors that contribute to pre-understanding .................................................. 15 Situations for different research strategies ............................................................ 17 Deductive and inductive approach ........................................................................ 18 The basic model of communication ...................................................................... 30 A dynamic model of expectations ......................................................................... 32 Relationship between donor's expectation, satisfaction and future donations...... 33 The 4 P's of marketing .......................................................................................... 35
Figure 10: Balloon campaign against CO2 by the BUND in Berlin. ...................................... 82 Figure 11: Magnet campaign against deforestation by Greenpeace in the United States....... 83 Figure 12: Campaign against pollution in China by the WWF. ............................................. 83 Figure 13: Fundraising campaign of the MS Laboratory in Australia.................................... 84
LIST OF TABLES
Table 1: Table 2: Timetable of the thesis .......................................................................................... 14 Comparison between hermeneutic and positivistic paradigm and our own approach ................................................................................................................ 20 Table 3: Table 4: Table 5: Table 6: Table 7: Table 8: Table 9: Summary of methodology. .................................................................................... 25 Classification of non-profit organizations according to the ICNPO ..................... 26 Gender of respondents........................................................................................... 42 Age of respondents ................................................................................................ 42 Profession of respondents...................................................................................... 42 Income of respondents........................................................................................... 42 Persons in the household ....................................................................................... 42
Table 10: Nationality of respondents..................................................................................... 42 Table 11: Description of the message by the respondents..................................................... 46 Table 12: Reasons why the respondents did not like the marketing expressions.................. 47 VII
List of Figures / List of Tables Table 13: Marketing expressions by other NPOs which the respondents named ................. 47 Table 14: Reasons why marketing is good for NPOs............................................................ 48 Table 15: Reasons why marketing is not good for NPOs...................................................... 48 Table 16: Aims for which the NPOs should use marketing .................................................. 48 Table 17: Explanations why it is okay that NPOs spend money for marketing .................... 49 Table 18: Explanations why it is not okay that NPOs spend money for marketing.............. 49 Table 19: Reasons for the need of statements of using money for marketing....................... 49 Table 20: Explanations why NPOs act like profit orientated ones in the marketing area..... 50 Table 21: Explanations why NPOs do not act like profit orientated ones in the marketing area ........................................................................................................................ 50 Table 22: Reasons for NPOs to increase their marketing and communications activities .... 50 Table 23: Reasons for NPOs not to increase their marketing and communication activities 50 Table 24: Explanations why people also donate if the NPO is using marketing agencies.... 51 Table 25: Explanations why people do not donate if the NPO is using marketing agencies 51 Table 26: Criteria the NPOs have to fulfil in order to receive support ................................. 51 Table 27: Marketing expressions the public is annoyed of ................................................... 52 Table 28: Public descriptions of guerrilla marketing ............................................................ 52 Table 29: Reasons why guerrilla marketing is a good tool in marketing strategies of NPOs53 Table 30: Reasons why guerrilla marketing is not a good tool in marketing strategies of NPOs ..................................................................................................................... 53 Table 31: Reasons why guerrilla marketing can be used in all non-profit segments ............ 53 Table 32: Reasons why guerrilla marketing can not be used in all non-profit segments ...... 53 Table 33: Tasks for which guerrilla marketing should be used............................................. 54 Table 34: The interesting aspects of guerrilla marketing for NPOs ...................................... 54
VIII
Chapter 1
Introduction
1. INTRODUCTION
This introduction chapter is meant to give the reader an overview of the subject and our motivation for the thesis. Beginning with a background part the reader gets an impression of marketing strategies of non-profit organizations and the increasing use of guerrilla marketing in general. The problem discussion part leads to the formulation of the research question that will be addressed. The theoretical and practical relevance are considered and finally the structure of the thesis is shown.
1.1 Background
There seems to be a general view that the importance of marketing and communication in nowadays economy is increasing. "Across all industries, 75% of marketers and non-marketers agree that marketing is far more important to corporate success than it was five years ago." 1 At the same time the size of the non-profit sector and the number of non-profit organizations is growing. Beside this, people have a higher awareness about non-profit organizations. "The non-profit sector is no longer invisible. It is a high-profile, high-impact community that affects the lives of people throughout the country and the world."2 For example, in the United States the number of non-profit organizations has already trebled between 1970 and 19983 and the numbers of non-profit employees grew from 3% of the U.S. labour force in 1960 to 9% in 2000.4 This growth in size and amount of the non-profit sector was a visible pattern of commercialisation in the sector. 5 Therefore, it is not a surprise that "marketing has also become a vital component in the strategies of many non-profit organizations"6.
The non-profit sector is not a homogenous sector. There exist local, regional and global organizations with different foci. In this thesis, only the non-profit organizations which act on an international level are regarded. Some examples of non-profit organizations, also often called non-governmental organizations, which act on a global level are: Amnesty International, the World Wide Fund For Nature, The Red Cross, and Doctors without Borders.
1 2 3 4 5 6
N.N. (2007). Marketing Department Priorities Often Differ From CEO's Agenda. O'Neill, M. (2002), Nonprofit Nation. A New Look at the Third America. Weisbrod, B. A. (1998), To Profit or not to Profit: The Commercial Transformation of the Nonprofit Sector. Hammack, D. C. (2002), Nonprofit Organization in American History. N Weisbrod, B. A. (1998), To Profit or not to Profit: The Commercial Transformation of the th onprofit Sector. Kotler, P. & Wong, V. & Saunders, J. & Armstrong, G. (2005). Principles of Marketing (4 ed.).
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Introduction
Since the last decades one can say that marketing and communication are everywhere. When people are living their daily life they get in contact with all different kinds of marketing expressions. On their way to the university or to work they see billboards at the bus stop, neon advertisements, flyers, or hear advertisements on the radio and are addressed by messages sent through other kinds of communication channels. Nobody can imagine a life without getting in contact with marketing and thousands of messages conveyed by different communication channels. But getting in touch with such high amounts of advertisements makes it more difficult for the single organization to get recognized by the public. Several studies show that the average customer is confronted by 3000 advertising messages a day in various types of media, but he only remembers very few of them.7 Customers are blocking themselves from the different marketing influences because there are just too much. Mass marketing is becoming less and less effective today.8 Conventional marketing media channels like radio spots, TV advertisements, and printed press campaigns are getting old fashioned and ineffective.9 The public is bored of conventional marketing and conventional communication channels; they pay more attention to new ways of marketing, which sometimes involve a change of rules by the advertiser.10
In the nowadays jungle of marketing, organizations are looking for a more effective way to reach their potential end consumers. The way to do marketing and communication in an unconventional way was first seen as something for small organizations with a lack of resources only. To explain the term 'unconventional', one can look at the example of "Hans Brink Budget Hotel" in Amsterdam. The hotel used dog excrements on the streets of Amsterdam as a communication channel. Flags with the name and the text "Now even more of this at our main entrance" were put into the dog dirt. Not only the communication channel is unconventional, but also the link between channel and message is out of the ordinary. Who thinks about animal excrements when it comes to finding a hotel to stay? And which hotel risks advertising with negative statements about themselves?
Figure 1: Advertisement for the Hans Brink Budget Hotel in Amsterdam (Source: Retrieved May 15, 2007 from www.bright.nl/top-5-guerrillamarketing)
7 8
Shenk, D. (1998), Data smog. Welsch, H. P. (2004), Entrepreneurship: the way ahead. 9 Silverman, G. (2003), The Secret of Why Only Some Marketing Programs Succeed And Most Others Fail. 10 Röthlingshöfer, B. (2006), Marketeasing.
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A small organization with a smaller advertising budget can still rely on innovation and creativity, which can lead to the same attention of the public than expensive traditional campaigns do. In the last years also multinational organizations accepted unconventional marketing as a good strategy to reach the end consumers. The reasons behind this change in mentality are that the positive aspects of unconventional marketing are clearer these days and the need for a different market approach increased. One of the best examples is the bloghttp://schlaemmerblog.tv/ of the German comedian Horst Schlämmer in which videos of him trying to get a driver's licence are shown. By the end of February the videos have been watched more than 1.4 million times.11 The sender of the video messages is Volkswagen, what was not visible when the blog started. But assumptions and rumours caused the clarification that Volkswagen is the initiator of the blog. This statement where made on the 20th of February.12
Instead of talking about unconventional marketing or untraditional marketing one can use the term guerrilla marketing. The term guerrilla marketing is up to discussion what it exactly means. Some argue that it is "unconventional marketing intended to get maximum results from minimal resources"13. According to Levinson's book from 1984 "guerrilla marketing is an unconventional way of performing marketing activities (primarily promotion) on a very low budget"14. The view of Levinson is nowadays not commonly supported anymore. There is a change visible from that low costs have to be a characteristic of guerrilla marketing to the hit and run characteristics of guerrilla marketing without the need of low costs.15 But the general view is still that guerrilla marketing uses unconventional marketing within unusual communication channels. According to Hospes guerrilla marketing has to be "original and unsuspected to create sympathy amongst the receivers"16. One of the other characteristics of guerrilla marketing is that the marketers do not care to stay in the legal frame. "When you know the [?] answer is not going to be what you want to hear, it is easier to ask for forgiveness than for permission"17, explains Brian Heffron, senior vice president of Boston-based marketing firm, Conover Tuttle Pace, how some advertisers work. Actions are done first and if the public and/or the government do not show sympathy with it, one asks for forgiveness.
11 12 13 14 15 16 17
Pitz, B. (2007), Freunde: Horst Schlämmer und Volkswagen. The clarification can be found onhttp://schlaemmerblog.tv/?p=32 N.N. (not dated), Guerilla Marketing Definition. Levinson J. C. (1984), Guerrilla Marketing: Secrets for making big profits from your small business. Hospes, C. (2007), Guerrillamarketing, nieuwe sluiproutes naar het hart van je klant. Hospes, C. (2007), Guerrillamarketing, nieuwe sluiproutes naar het hart van je klant. St. Martin, G. (2007), Council looks to reign in guerilla marketing.
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Introduction
To make clear what guerrilla marketing activities of non-profit organizations are, one example is presented below and some more can be found in the appendix A. For the world water day 2005 in Mexico the Belgian organization Green Belgium stuck more than 500 stickers in washbasins in cinemas, pubs, restaurants, public toilets, universities and stations in nine Belgian cities and in Mexico City. The shown text is: "It takes you 1 second to get drinking water. He has to walk 20 km. Water is a human right. Help us provide access to drinking water."
Figure 2: World Water Day sticker campaign by Green Belgium (Source: Retrieved May 4, 2007 from www.greenbelgium.org)
Two of the reasons why guerrilla marketing could be successful in the nowadays jungle of marketing are: First, people cannot block themselves that easy from recognizing the advertisement as they can do with a TV spot or newspaper ad. Secondly, they might not know who the initiator of the marketing campaign is or even that it is a marketing campaign at all. Like earlier mentioned, marketing is visible everywhere in the for-profit sector, but the importance of marketing in the non-profit sector is also growing18. Non-profit organizations use marketing to reach their ideals, not to increase their profit as for profit-organizations do. It is not surprising that non-profit organizations have the same problems in getting awareness
18
Weisbrod, B. A. (1998), To Profit or not to Profit: The Commercial Transformation of the Nonprofit Sector.
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Introduction
from the end-consumer in the jungle of marketing as profit-orientated organizations have. The amount of non-profit organizations is increasing and commercialization and criticism are growing in this sector.19 The non-profit organizations have to fight for attention among potential consumers like for-profit organizations have to. This is one of the reasons why also non-profit organizations could use guerrilla marketing in their marketing mix besides conventional or traditional marketing. It is not that guerrilla marketing replaces or will replace conventional marketing. There has to be always a coexistence of guerrilla and traditional marketing and communication.
1.2 Problem Discussion
To make a difference between for-profit and non-profit organizations one can say that the aim of the profit-orientated, like the words already say, is profit. These organizations try to maximize their turnover and to minimize their costs while non-profit organizations are also aiming for money, but only with the purpose to use this money in order to reach their ideals which are not related to capitalistic goals. To reach their ideals non-profit organizations need resources like forprofit companies need to compete and survive. This is the general rule in a capitalistic world; the aim is to have resources which others do not have. These resources can be monetary capital, knowledge, patent rights or employees.
The commercialisation in the non-profit sector20 and in the same time the increasing influence of marketing in the non-profit sector bring up a problem which is that some people argue that marketing is directly related to profit, like the Chartered Institute of Marketing does: "Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably."21 This view is similar to the one Levy and Zaltman had 30 years ago. They also had the opinion that marketing is only done in combination with profit: "Roughly stated the marketing concept called for a customer orientation on the part of the firm, backed by an integrated marketing effort designed to assure customer satisfaction as a means of obtaining long-term profit."22
19 20 21
Van der Horst, J. A. J. (2002), Marketing een wondermiddel voor non profit organisaties? Weisbrod, B. A. (1998), To Profit or not to Profit: The Commercial Transformation of the Nonprofit Sector. Imperative from the Chartered Institute of Marketing, in: Clarke, P. & Mount P. (2001), Nonprofit marketing:
T2he key to marketing's "mid-life crisis"? 2 Levy, S. J. & Zaltman, G. (1975), Marketing, Society and Conflict.
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Introduction
But there are on the other hand also people who already argued in the 80ies that marketing can be used in the non-profit sector like Kotler23. Bruce is even going one step further stating "what is needed is a greater adoption of a marketing approach in not-for profit organizations"24. Today Kotler et al.25 even go further than Bruce, arguing that marketing is a vital component for non-profit organizations.
We agree to the view of Kotler. This perspective is also taken by other authors. "Marketing consists of individual and organizational activities that facilitate and expedite satisfying exchange relationships in a dynamic environment through the creation, distribution, promotion, and pricing of goods, services, and ideas."26
But what might guerrilla marketing have to do with the marketing of non-profit organizations? In today's life potential end consumers get overwhelmed by different impulses from different organizations, the so-called jungle of marketing. The end consumer blocks a lot of this information and is looking for uniqueness and creativity. Guerrilla marketing is most of the time unique and creative and is almost always looking for a new approach to the end consumer. A second phenomenon of guerrilla marketing is the possibility of lower costs in comparison to conventional marketing. This makes it very interesting for organizations with a smaller marketing budget, because it can be an opportunity to compete with competitors.
Nowadays, not only small organizations, but also bigger organizations adapt guerrilla marketing in their marketing approach. It is clear that profit-orientated organizations are using this approach to fight in the jungle of marketing. But are non-profit organizations also adapting guerrilla marketing in their marketing strategy and is this approach effective for them or not?
The fact that the supporters of non-profit organizations are becoming more and more critical and that commercialisation in the non-profit sector is increasing influences the conditions for marketing of non-profit organizations.27 The decrease in the resources that governments give
23 24 25 26
Kotler, P. (1982), Marketing for Nonprofit Organizations. Bruce, I. (1995), Do not-for-profits value their customers and their needs? Kotler, P. & Wong, V. & Saunders, J. & Armstrong, G. (2005), Principles of Marketing (4th ed.). Dibb, S. & Simkin, L. & Pride, W. M. & Ferrell, O. C. (1994), Marketing: Concepts and Strategies (2 nd
E7uropean ed.). Houghton Mifflin Company, London, p. 5. 2 Van der Horst, J. A. J. (2002), Marketing een wondermiddel voor non profit organisaties?
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Introduction
to non-profit organizations28, or that these resources have to be divided over more different non-profit organizations29, constrain the organizations to find other sources of financial support. In conclusion, the general public and its opinion is becoming more and more important for the non-profit sector because the organizations depend more on donations. Another fact that has to be taken into consideration to evaluate the working conditions of the organizations is the "scope of the Welfare State" and the "Level of Development" which have according to Sergeant a high influence on the non-profit sector of the specific country.30 Due to the commercialisation in the non-profit sector, marketing bears an increased meaning in the overall strategy of the organizations. The question is, if the general public accepts this increased use of marketing? Do they agree on that it is necessary for a non-profit organization to use public relations and marketing, and the associated expenditures, in order to survive and to reach their goals? Is the general public still willing to donate money if a non-profit organization is spending more money for marketing and communications? What kind of marketing do they agree upon, is it maybe guerrilla marketing?
The reason that might make guerrilla marketing especially interesting for non-profit organizations are the possibility for low costs, because people who donate money to the organizations do perhaps not want that this bounties are wasted in expensive marketing campaigns. Furthermore, press and TV report about some out of the ordinary activities. This can create a word of mouth, but both positive or negative. The public opinion is maybe even more important for non-profit organizations than for profitorientated ones because NPOs depend on the public willingness to donate money.
1.3 Research Question
The problem discussion in chapter 1.2 leads to our research area. The tasks to be included in this thesis are how the public reacts to the increased commercialisation in the non-profit sector and the increasing use of marketing and communication in these organizations. What do they expect from the marketing and communication of non-profit organizations and what are the tasks the organizations have to fulfil in this topic in order to get financial and
28
Nährlich, S. (2002), Was sind die und bleibt von den Besonderheiten der Non-Profit Organisationen? Eine
ö9knonomische Betrachtung. 2 Doornbos, D. P. (2006), Plan Nederland krijgt geen subsidie. 30 Sargeant, A. (1999), Marketing for Nonprofit Organizations.
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Introduction
voluntary support? How does the public judge the actual efforts of non-profit organizations? Do these efforts seems to reach their targets in the view of the public or do they not even know the tasks and missions of certain organizations which shows that the organization's campaigns are ineffective in spreading their message? Finally, their attitudes concerning the use of guerrilla marketing in non-profit organizations are examined.
To sum up these thoughts, the research question of our thesis is: What is the public attitude towards the increasing use of marketing and communication by global non-profit organizations?
In order to remediate the possible ambiguity what attitude means, the following explanation is helpful. Almost every person evaluates his or her environment at any time. Attitudes are coming from this evaluation. "Thus, attitudes are defined as evaluations of entities, including behavior, that result in perceptions of favor or disfavor." 31 Beliefs, feelings, values and dispositions to act in certain ways are elements of the attitude a person has.
1.4 Objective / Goal
The purpose of this thesis is to describe the attitudes of the public concerning non-profit organizations and their marketing and communication efforts. Are there certain criteria the organizations have to fulfil in order to receive donations and is the public aware of what the single organization is standing for?
What should make this thesis different from existing publications and older research studies is that the investigation was not made on an external or internal perspective only. In order to identify if the organizations are aware of the public expectations and in order so see how the organizations act in practice, an interview with a fundraising responsible of Greenpeace Germany was done. The purpose of taking this internal perspective into account was to discover a possible gap between the expectations of the people and the statement of the organization and to give recommendations to overcome these threats.
31
Eagly, A. H. & Chaiken, S. (1993), The Psychology of Attitudes.
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Introduction
It is important to mention that the investigation of the public perceptions also included guerrilla marketing. The aim was to search out if this kind of marketing is recommended and accepted from the general public in order to make a hypothesis for the further development of guerrilla tactics in the non-profit sector.
1.5 Limitations
We have chosen a few limitations in order to be able to develop the field of marketing by nonprofit organizations in accordance with our own ideas and field of interest. At first, all small non-profit organizations with regional restrictions such as sport clubs or colleges are not regarded in this thesis because it would negate the possibility to draw conclusions for global NPOs. Furthermore, these organizations have often not the resources to do a lot of marketing and communication so that the public attitude towards these efforts is not very distinct. Secondly, in the range of fundraising bequest marketing is not attended within this paper, because it is in its infancy and only a few organizations are increasing their efforts in this marketing section. Thirdly, all the questionnaires are taking place in developed countries namely Germany, The Netherlands and Sweden. Therefore the public attitude of people in undeveloped countries is not measured. Finally, lobbying is not considered. These are efforts directed to increase the political importance of certain fields of interest of the non-profit organizations by influencing assemblymen.
1.6 Theoretical and Practical Relevance
The particular theoretical relevance of this thesis is the adaptation of general customer relationship management theories to the non-profit sector. The aim is to increase the understanding of the public attitudes towards marketing and communication done by non- profit organizations. Therefore, the theoretical framework presents the basic knowledge of the selected theories before the empirical findings are presented in chapter 5. The practical relevance of this thesis is the investigation which kind of marketing and communication by non-profit organizations is accepted by the public. How does the public
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Introduction
respond to communication efforts of the organizations in different communication channels? Furthermore, the judgment of guerrilla strategies for non-profit organizations by the public has relevance for the suitability of these methods for the organizations. Finally, the comparison of the public opinion about non-profit organizations' marketing with the actual practice in the instance of Greenpeace Germany, leads to starting points for actions to reduce the discrepancies between the organizations policy and the public expectations. These recommendations are not useful for Greenpeace Germany only, but for other non-profit organizations as well.
1.7 Structure of the Thesis
This thesis is separated into seven chapters. While the background of the research field as well as the specific research question were already presented in chapter one, chapter two describes the research journey which deals with the way of finding the topic and getting in contact with the investigated non-profit organization. The development and continuous adaptation of our research question during the thesis writing process is also presented. Chapter three deals with the different methodology approaches we have used for our research. The empirical findings of the interview with Greenpeace Germany and the results of the survey in the public are shown in chapter five. The before in chapter four presented theories are than related to the empirical data, which leads to the analysis in chapter six. After the results and suggestions what non-profit organizations have to be aware of are presented in the beginning of in chapter seven, the conclusion and the thesis close with a reflection on our own work and recommendations for further research.
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Chapter 2
Research Journey
2. THE RESEARCH JOURNEY
In this chapter the procedure of finding a topic and finding a suitable organization is described. Furthermore, we note how we got access and present our timetable for the thesis writing process. The development of the research question before and during the writing process is also contemplated.
2.1 Finding the Topic
It was not easy to find a topic for our thesis because we are interested in several different fields of business administration and marketing. Our first idea was to write about guerrilla marketing in general, "what is guerrilla marketing?", "which companies use this strategy in their marketing mix?", and "why do they use it?" We wanted to focus especially on non-profit organizations and if "it is interesting for them to adapt guerrilla marketing?" But also the rules and boundaries for guerrilla marketing in today's daily life were planned as an area for research.
After looking for literature and suitable theories to reflect on, we conclude that the literature available was not enough for a bachelor thesis. According to Yin, "the case study needs to use multiple converging sources or evidence to prove a point, because there are more variable than data point. Without a theory to guide them, researchers will not know what specific data to collect".32 During discussions not only between us, but also with our supervisor and other students we came to the conclusion that we had to change our topic a little bit. We still wanted to focus on non-profit organizations, because in our opinion they are an interesting part of daily life where marketing is used. None of us had before any knowledge about the combination of marketing and global nonprofit organizations. Therefore we decided to focus on this to get a deeper understanding of the subject. Especially what kind of marketing strategies do global nonprofit organizations use and are there differences or similarities between them?
After coming up with this research question, we discussed and looked for theories and information about this topic. We decided that it was necessary to get in contact with global
32
Yin, R. (2003), Case study research: Design and Methods (3rd ed.).
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Chapter 2
Research Journey
non-profit organizations in Sweden to get more information about their marketing strategies. We wanted to collect this information by interviewing persons in charge for marketing and communication in the non-profit organizations. Not only we wanted to collect data from the organizations itself, but also from the general public in order to investigate how they think about marketing by non-profit organizations. We wanted to study this with the help of questionnaires.
While we received more and more rejections from the organizations, we expanded our contact efforts to Germany and The Netherlands, but also these national departments were, except for Greenpeace Germany, not willing to give us interviews. Therefore, the research question had to be adjusted a third and last time according to the displaced focus towards the public perceptions and expectations of marketing and communication by non-profit organizations as the main research field.
2.2 Finding the Organization and the Interviewees
Our aim was to find suitable global non-profit organizations that were also active in Sweden. When we were thinking about possible organizations the first names which came to our mind were "Amnesty International", "Greenpeace", "The Red Cross" and "Médecins Sans Frontières" ("Doctors Without Borders"). These organizations were contacted by email and phone calls in Sweden, Germany and The Netherlands. Unfortunately only the German department of Greenpeace agreed to cooperate with us for this thesis. The interviewees for the survey were contacted in two different ways. While the Dutch and German respondents had to fill out the questionnaire on a website, the Swedish ones were contacted in the streets in Växjö. The aim was to get answers from approximately 30 persons out of each country. The website with the questionnaire was alluded in a few Dutch and German Internet portals in order to get response.
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2.3 The Problem of Gaining Access
In the beginning we thought that the location of the Swedish organizations is the biggest problem for getting access because they are all located in Stockholm. The distance between Växjö and Stockholm is quite big, so that trips have to be planned well. Nevertheless, we thought that face-to-face interviews were the best method to gain information.
But getting in contact with a suitable representative of the organizations was a bigger problem. Because we took advices of our opponent groups during seminar one, and recommendations of our tutor during the tutoring meeting into account, we were not able to contact the organizations until the end of March. We received only a few answers to our emails and phone calls ended in a lot of transmissions but without positive outcome. As mentioned above we finally got in contact with Greenpeace Germany and we were able to interview the fundraising assistant Christine Busch and had furthermore active email conversation with her.
2.4 Adaptation of the Research Question
When we planned to focus on guerrilla marketing and the situations in which it can be used our research question was,„Is guerrilla marketing an alternative way for every organization to communicate with their end consumers?" Due to the useful warnings of our supervisor and our own recognition of a lack of literature and theories, this question turned out to be inappropriate. After we had moved our focus to the marketing of non-profit organizations in general, we discussed possible focal points of them. Despite the adjustment of the topic we still wanted guerrilla marketing at least to be a part of our research area. After a good deal of thoughts we came up with our second research question which was "What are the differences and similarities of the marketing strategies of global non-profit organizations and to which extent do they use guerrilla marketing?" As a result of the denied access to a lot of organizations we moved our focus to the general public and came to the final research question: What is the public attitude towards the increasing use of marketing and communication by global non-profit organizations? 13
Chapter 2
Research Journey
2.5 The Timetable
The following table presents an overview about the temporal organization of the thesis:
PM 1
Time (Week No.) 10
PM 2 14 15 16 17
PM 3 18 19 20
Final Paper 21 22 23
11
12
13
Introduction Literature Study Method Theory Empirical Findings Greenpeace Empirical Findings Public Analysis Conclusions Final Adjustments Presentation
Table 1: Timetable of the thesis
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Chapter 3
Methodology
3. METHODOLOGY
The methodology chapter will describe how the research had been carried out, but also will show the quality and relevance of the study. The first part includes the concept of preunderstanding and a presentation of our personal background. Afterwards, the research strategy is presented. The following part about the scientific perspective includes the chosen approach and the scientific paradigm. Furthermore, the techniques used to collect the data, first on a theoretical point of view and later on an empirical point of view, are described. The credibility of this study is tested in the last part of this chapter.
3.1 Pre-understanding and Personal Considerations
According to Gummesson, the pre-understanding is of high importance because every researcher is influenced by his knowledge and experiences even if he is not aware of it. The preunderstanding permits an insight into a specific research field before the research process is started. While one could expect that the knowledge equals the pre-understanding of a person it is not like that. Gummesson states that it is much more; "it includes a researcher's personal experience as an essential element in the process of collection and analyzing information".33 The researcher's own attitudes and commitment are also based on the experience of others which the researcher assimilates through intermediaries such as seminars, research reports or textbooks to his own knowledge. Gummesson illustrates the concept of pre-understanding in the following figure:
Figure 3: The factors that contribute to pre-understanding (Source: Gummesson, 2000).
33
Gummesson, E. (2000), Qualitative Methods in Management Research (3rd ed.).
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Our own personal background can be described as follows. We are one Dutch and one German student of who one is studying business administration and the other one sports marketing and management. We both have read basic courses in management and economics.Because we are both in the fourth year of studies, we have an overview about the different subjects in business administration.
When it comes to the question, if it is positive to have a high level of pre-understanding, the answer has to be differentiated. On the one hand it is positive to have very much knowledge because the time to spend for collecting general information about the research field and identifying adequate models is less. But on the other hand the researcher might easily prejudice other approaches as insufficient and wrong, which is the negative expression of a high level of knowledge.
Before this study none of us had institutional knowledge about global non-profit organizations and none of us had special theoretical knowledge in the field of guerrilla marketing. However, one of us has six years of experience in working for a local newspaper as freelancer, so that we know which kind of organization's information can be published beyond the advertising section because it is interesting for the reader. These experiences helped us to understand the marketing efforts of the non-profit organizations and the restrictions media companies have to publish information about them without receiving financial reward.
Furthermore, both of us have gained experience with surveys through a lot of polls we have done in school and university projects. This knowledge helped us to formulate the questions directed to the public in an appropriate way in order to identify their assessment of marketing and communication of non-profit organizations.
3.2 Research Strategy
The research strategy describes the way a study is done. Different strategies like surveys, experiments, histories or case studies and the analysis of archival information are available to the researcher according to Yin's differentiation.34 These strategies differ from each other by the type of research question posed, the extent of control an investigator has over actual
34
Yin, R. K. (2003), Case Study Research: Design and Methods (3rd ed.).
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Methodology
behavioural events, and the degree of focus on contemporary events. Each of these strategies has advantages and disadvantages. The following table shows which strategy should be used, depending on the current research situation:
Strategy
Form of research question
Requires control of behavioural events ?
Focuses on contemporary events
Experiment
how, why?
Yes
Yes
Survey
who, what, where, how many, how much ?
No
Yes
Archival analysis
who, what, where, how many, how much ?
No
Yes/No
History
how, why?
No
No
Case study
how, why?
No
Yes
Figure 4: Situations for different research strategies (Source: Yin, 2003). The method we have chosen can be classified as mixture of a survey and a case study. In the part with the interview with the representative of the Greenpeace we work in accordance with the criteria of a case study. But in order to identify the public opinion of the marketing efforts of nonprofit organizations, a survey with qualitative questions is used. Nevertheless, according to Yin a case study is "an empirical inquiry that investigates a contemporary phenomenon within its reallife context"35. This definition does not exclude that it can be combined with a survey. Because the main part of the empirical part consists of the questionnaire, the general research strategy of this thesis is a survey.
35
Yin, R. K. (2003), Case Study Research: Design and Methods (3rd ed.).
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3.3 Scientific Perspectives
3.3.1 Inductive versus Deductive Research Approach
According to Gummesson the two general ways to do a research is to test an existing theory in practice or to generate a new theory out of empirical data. These two approaches are called deductive and inductive. The deductive research starts with existing theories and concepts and formulates hypotheses that are subsequently tested; its vantage point is received theory. "Inductive research starts with realworld data, and categories, concepts, patterns, models, and eventually, theories emerge from this input."36 In practice deduction means testing a theory or hypothesis which then are verified or falsified. In contrast, induction means creating a new theory or model by gathering data and looking for adequate theories and models in relation to these empirical findings. The following figure from Alvesson and Sköldeberg illustrates the different steps of the two approaches:
Figure 5: Deductive and inductive approach (Source: Alvesson & Sköldeberg, 2000).
For the sake of completeness the adductive approach has to be mentioned. It is a mix of the deductive and inductive approach and described as the incomplete perception from the deductive to the inductive research during the research. According to Gummesson it cannot be understood as a third approach.37
This thesis deals with the theory of marketing of non-profit organizations, with guerrilla practices in them and with the attitude of the public. Even if is the starting point of our
36 37
Gummesson, E. (2000), Qualitative Methods in Management Research (3rrdd ed.). Gummesson, E. (2000), Qualitative Methods in Management Research (3 ed.).
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questionnaire was a study of the literature in order to gain knowledge which kind of questions should be addressed to the public, this thesis does not follow a deductive approach. Furthermore, we are not testing a single theory in practice. Although Gummesson states that "all types of research become an iteration between the deductive and inductive"38, this study was mainly done in an inductive way. We did not formulate a hypothesis which than was tested, but we formulated a more general recommendation about the use marketing and communication by nonprofit organizations and about the suitability of guerrilla tactics within the marketing strategy of NPOs.
3.3.2 Positivistic versus Hermeneutic Paradigm
Before we explain the attributes of the hermeneutic and positivistic paradigm the question 'What is a paradigm is?' should be answered. "A paradigm is a shared perspective of reality and a way of looking at the world as if through coloured spectacles. A paradigm is a 'worldview' or 'map', which provides a general outline and direction for scientific activity."39
In literature two scientific paradigms are described: the hermeneutic and the positivistic one. While the positivistic paradigm focuses on causal relationships by the use of statistical analysis and objective facts, the hermeneutic one uses a more personal interpretative process to "understand reality"40. Therefore, the hermeneutic paradigm is based on personal understanding through feelings and intuitions. Because the researcher is using his thoughts and there is no clear separation between his personal point of view and the facts, this approach is referred as subjective. Because of the quantitative and empirical nature of the positivistic paradigm, which only considers knowledge that has been acquired through measurement, it is often seen as the "correct scientific paradigm"41 and referred as objective.
Although our main paradigm is hermeneutic, we do not conform to it totally. Even if the inductive approach alludes to the hermeneutic paradigm, there are also elements of the positivistic paradigm in this thesis. Our role as external interviewers and observers is an indicator for this. Because of this ambiguity, we compare the criterions of the two paradigms
38 39 40 41
Gummesson, E. (2000), Qualitative Methods in Management Research (3rd ed.). Kuhn, T. (not dated). Conceptual or theoretical framework: Worldview orrd'Paradigm'. Gummesson, E. (2000), Qualitative Methods in Management Research (3rd ed.). Gummesson, E. (2000), Qualitative Methods in Management Research (3 ed.).
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in the figure below (Figure 1) and point out which point of view is chosen in this thesis. The fields with the grey background illustrate our approach for this thesis:
Positivistic paradigm Research concentrates on description and explanation. Well-defined, narrow studies. Vantage point is primarily deductive; thoughts are governed by explicitly stated theories and hypotheses. Research concentrates on generalization and abstraction. Research seeks to maintain a clear distinction between facts and value judgments, search for objectivity. Researchers strive to use a consistently rational, verbal, and logical approach to their object of research. Statistical and mathematical techniques as well as surveys for quantitative processing of data are central. Researchers take the role of an external observer. Distinction between science and personal experience. Researchers try to be emotionally neutral and to have a clear distinction between reason and feeling. Researchers discover an object of research external to themselves rather than creating the actual object of study.
Hermeneutic paradigm Research concentrates on understanding and interpretation. Narrow as well as total studies (holistic view). Vantage point is primarily inductive; researchers' attention is less focused and is allowed to "float" more widely. Research concentrates on the specific and the concrete but also attempts generalizations. Distinction between facts and value judgment is less clear, recognition of subjectivity. Pre-understanding that often cannot be articulated in words or is not entirely conscious - tacit knowledge - takes on an important role. Data are primarily non-quantitative. Researchers want to experience what they are studying from inside. Researchers accept influence from both science and personal experience. Researchers allow both feelings and reason to govern their actions. Researchers partially create what they study, for example, the meaning of a press or a document.
Table 2: Comparison between hermeneutic and positivistic paradigm and our own approach (Source: adapted from Gummesson, 2000).
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3.3.3 Qualitative versus Quantitative Approach
The two opposite approaches which can be used in research are the qualitative and the quantitative one. The quantitative approach relies "on the quantification in collecting and analyzing data and uses descriptive and inferential statistical analyses"42. This method is based on measurements and collecting data, for instance by questionnaires in which the respondents have to mark suitable answers among a preselection. "If data are presented in the form of word, diagrams, or drawings - and not as numbers - this portion is considered qualitative".43 In this method data is collected by using descriptive methods. According to Grinnell and Unrau the researcher is likely to use the qualitative approach if he has no or only little knowledge of the field he wants to study. Therefore one can say that this approach is often used to come to tendencies in advance of quantitative studies. Quantitative studies use explanatory questions while qualitative ones avail exploratory questions. As mentioned before, explanatory studies can be carried out if a profound knowledge in the specific research field exists.
We focused in this thesis on the qualitative approach and posed exploratory questions during the survey with the public. The respondents had mostly to justify the chosen answer in their own words and not only to mark one among a few options. The few explanatory questions about the personal characteristics in the questionnaire do not gainsay that we can call our general approach of this thesis 'qualitative'. The mention of how many of the respondents wrote down which answer does not mean that the questionnaire is analysed in a quantitative way. The data is still presented in words, and fulfils therefore the criteria of calling the approach qualitative according to Grinnell and Unrau. In the interview with the fundraising assistant of Greenpeace qualitative questions were asked only.
42
Grinnell, R. M. Jr. & Unrau, Y. A. (2005), Social Work Research and Evaluation: Quantitative and Qualitative Approaches (7th ed.). 43 Grinnell, R. M. Jr. & Unrau, Y. A. (2005), Social Work Research and Evaluation: Quantitative and Qualitative Approaches (7th ed.).
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3.4 Data Collection Techniques
It was very important for our thesis to get access to reliable data because the collected data led us to the analysis in the last part of the thesis. The process of data collection had therefore to be well defined and was divided into a theoretical and an empirical part.
3.4.1 Theoretical Data Collection
The first step of the theoretical data provision consisted of identifying and collecting various primary and secondary source materials. These sources included books, articles, reports, and the Internet sources as well as government documents and material published by the non- profit organizations themselves. The books and scientific articles we used were mostly found in the library of Växjö University and its online databases such as Ebrary and the Electronic Library Information Navigator (ELIN). In order to get a broader view and put recent information into account the Internet was also used as a source of data. We are aware that not all sources in the Internet are reliable and therefore constricted the search on Google Scholar, and websites from universities or public agencies.
3.4.2 Empirical Data Collection
Our most important source for gathering information was getting response from the public by the questionnaire. Apart from questions where the most important attributes out of a preselected sphere had to be named, we have asked open questions, where we were not expecting specific and one-word answers. As a result of our focus to the three countries Sweden, Germany and The Netherlands the questionnaire had to be done in each country. For Germany and The Netherlands the survey was uploaded tohttp://www.askallo.de/ from 24th of April to the 15th of May. The direct link to the page with the questionnaire was then posted in national forums for study polls. In order to gain the feedback of Swedish people, a two day survey was conducted in Växjö on the 7th and 8th of May. Because the Dutch and German participants had no chance to ask for explanations, the ones of Swedish participants in the questionnaire were not answered in order to not influence the outcome of the survey. The questions posed can be found in the appendix B.
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Methodology
Concerning the interview with the Greenpeace' representative we decided to use the semistructured interview method. "Semi-structured interviews allow the interviewer to pose all questions while providing the opportunity to pursue emergent issues and themes not included on the script. Such an approach is best suited to situations where complex interactions and processes are involved and where there is a concern of imposing restrictive a priori data classification."44 Although an unstructured approach has the advantage that the interviewee can focus on the parts he wants and the atmosphere is more like a talk than like an interview, we used an interview guideline in order not to loose the main field of interest. For the preparation of the interview, we have categorized our precast questions into the areas of "personal background of the interviewee", "background of the organization", "marketing and communication", "fundraising", "the view of the public" and "guerrilla marketing". Nevertheless, the guideline included open questions, which allowed us to respond and react to the interviewee's answers flexible. This way also supported the effort to create a conversional climate during the interview so that it was easier for the dialog partner to talk about the organization without thinking about what the next question would be.
3.5 Creditability
According to Yin four criteria allow the researcher to test the scientific quality of his research. These four criteria are the construct validity, the internal and external validity, and the reliability of the research.45
3.5.1 Construct Validity
Construct validity means to establish "correct operational measures for the concepts that are studied"46. The level of construct validity is increased by using multiple sources of evidence and establishing a chain of evidence. While our theoretical data derived from books, articles and research reports, our empirical one came from the survey, the interview with the organization's representative, observation of the organization's website and publications of
44
Imperatives from Adams & Schvaneveldt (1985) and Shaffir & Stebbins (1991), in: Bulla, M. & Starr-Glass, (2005), Marketing and non-profit organizations in the Czech Repdublic.
45 D. 46
Yin, R. K. (2003), Case Study Research: Design and Methods (3rrd ed.). Yin, R. K. (2003), Case Study Research: Design and Methods (3 ed.).
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Methodology
the organization itself. This proves that we used multiple sources in order not to be subjective in the data collection. We tried to establish a chain of evidence that allows the reader to follow the steps from the research question to the conclusions. Our suporvisor and our opponent groups secured that we fulfilled this condition by giving us important advices during the writing process of the thesis.
3.5.2 Internal Validity
Internal validity deals with "establishing a causal relationship, whereby certain conditions are shown to lead to other conditions"47. According to Yin, internal validity is only important for explanatory case studies in which causal relationships are examined. Our thesis is mainly exploratory and does not deal with causal relationships so that the criterion of internal validity is unimportant for us.
3.5.3 External Validity
External validity means to state "the domain to which a study's findings can be generalized"48. Therefore the theory has to be tested in several different settings and the findings have to be the same. Because we had a response of more than 100 questionnaires we had the possibility to generalize if the findings which were similar in a majority of the questionnaires. Nevertheless, as a result of our limitation of access to the organizations themselves, the findings of the interview with Greenpeace Germany cannot be generalized in a large extent as it is required for being verified on universal level.
3.5.4 Reliability
The task of the reliability test is to demonstrate "that the operations of the study - such as the data collection procedures - can be repeated with the same results"49. Therefore the objective is to minimize the study's errors and biases. Our study was based on a questionnaire among the public and an interview with the fundraising assistant of Greenpeace Germany, so that our interpretations and conclusions also rely on the answers of these persons, which might be subjective. We reduced this weakness by asking a larger amount of people for the survey.
47 48 49
Yin, R. K. (2003), Case Study Research: Design and Methods (3rrdd ed.). Yin, R. K. (2003), Case Study Research: Design and Methods (3rd ed.). Yin, R. K. (2003), Case Study Research: Design and Methods (3 ed.).
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Methodology
While interpreting the interview with Christine Busch we took publications of Greenpeace into account, because these data represent a more objective statement of the organization. To conclude, every researcher or investigator who will use the same interview and questionnaire partners as we did should come to the same conclusions. To ensure our reliability we explained every step we have taken in a detailed way in order to give the objective observer a guideline how to repeat our research process and to come to the same conclusions.
3.6 Summary of Methodology
The following table gives the reader a summary about the methodology used in this thesis: General methodology Research strategy Inductive vs. deductive research Positivistic vs. hermeneutic paradigm Qualitative vs. quantitative approach Theoretical data collection Empirical data collection Creditability Table 3: Summary of methodology. Thesis methodology Survey (with a small case study part) Inductive research Hermeneutic paradigm Qualitative approach Books, articles, research reports, Internet Survey among the public; Interview with organization's representative Construct validity, external validity, reliability
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Theory
4. THEORY
In this chapter we present the theoretical background of this thesis. Because our focus was on marketing and communication by non-profit organizations we first briefly define the term nonprofit organization. In the second step we introduce the aims of non-profit organizations. The following parts deal with how these aims can be achieved: Communication models, the marketing mix, guerrilla marketing, the promotional mix, and word of mouth are presented in this stage.
4.1 Non-Profit Organizations
Before talking about the non-profit sector is it useful to categorize those organizations by the nature of the work they do. The standard of the "International Classification of Nonprofit Organizations" (ICNPO) is a useful tool to classify non-profit organizations, but also has some shortcomings which are that some organizations cannot be classified to only one group. The classification is as follows:
Table 4: Classification of non-profit organizations according to the ICNPO But this classification does not describe what the non-profit sector exactly is. There is a lot of different terminology for the same type of organization. In literature one can find the terms notfor-profit [NFP], non-profit organization [NPO], non-governmental organization [NGO], non government funded organization [NGFO], non-business organization [NBO], non-profit
26
Chapter 4 corporation [NPC], private voluntary organizations [PVOs], the 'voluntary sector' and the 'third sector'.50 All these different terms refer to one and the same: the non-profit sector.
Theory
The other question is what a non-profit organization is? According to Sergeant a non-profit organization may be defined as "one that exists to provide for the general betterment of society, through the marshalling of appropriate resources and/or the provision of physical goods and services. Such organizations do not exist to provide personal profit or gain and do not, as a result, distribute profits or surpluses to shareholders or members. They may employ staff and engage in revenue-generating activities designed to assist them in fulfilling their mission."51
Another quite similar definition is that a non-profit organization is "one that has committed legally not to distribute any net earnings (profits) to individuals with control over it such as members, officers, directors, or trustees. It may pay them for services rendered and goods provided."52
In the following definition the reliability of the organization's director is included. "A legal structure authorized by state law allowing people to come together to either benefit members of an organization (a club, or mutual benefit society) or for some public purpose (such as a hospital, environmental organization or literary society). Non-profit corporations, despite the name, can make a profit, but the business cannot be designed primarily for profit-making purposes, and the profits must be used for the benefit of the organization or purpose the corporation was created to help. When a non-profit corporation dissolves, any remaining assets must be distributed to another non-profit, not to board members. As with for-profit corporations, directors of non-profit corporations are normally shielded from personal liability for the organization's debts."53
50 51 52 53
Sargeant, A. (1999), Marketing for Nonprofit Organizations. Sargeant, A. (1999), Marketing for Nonprofit Organizations.http://economics.about.com/cs/economicsglossary/g/nonprofit.htmhttp://www.nolo.com/definition.cfm/term/BAEAC86A-2B5A-4B59-95070F88FB82326E
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4.2 Aims of the Marketing of Non-Profit Organizations
Only because non-profit organizations have not to sell any goods or services as part of their core business, does not mean that they do not have to do marketing efforts. According to the view that the exchange of value for money is the core phenomenon in marketing, "a lot of the standard models and concepts have to a large extent been geared towards the task of creating exchanges"54. "The adaptation of marketing to all productive systems which perform services for thirds is based on the belief that market exchanges take also place when they are not compensated with money."55 While companies often used and use the "major part of their marketing communication budget for attracting new customers"56, "non-profit organizations spent a higher share of their resources for caring about the current donors"57.
The primary goal of non-profit marketing is to reach its social targets which depend on the specific field the organization is active in. Despite of the different foci each organization has, the overall goals of marketing and communication are quite similar in all sectors. The most important aims are fundraising, increasing the support for certain campaigns, volunteer assistance and improving the image of the organizations and as well as increasing the interest in certain activity fields.
Fundraising is an important pillar of the non-profit organization to reach the goals they want to reach. This term fundraising covers all efforts directed to gain money. Apart from caring for the relationships with current donors activities to gain new donors and financiers are part of the fundraising task. The organizations have to choose how much of their fundraising budget they want to use for donor recruitment or donor development. According to Sergeant, recruiting new donors for an organization is probably one of the most difficult tasks for fundraisers. Nevertheless spending the budget is not free of risk, because there is no guarantee that the resources expended will be earned back in a short period of time. Therefore, investing in new donors has to be seen as a long-term investment. As soon as the organization has donors, they can benefit from the relationship they have with them.
54 55
Grönroos, C. (2001), Service Management and Marketing: A Customer Relationship Management Approach. Schäflein, S. (1994), Freizeit als Faktor der Stadtentwicklungspolitik und -planung. Stadtmarketing für mehr
5L6ebensqualität. 57
Grönroos, C. (2001), Service Management and Marketing: A Customer Relationshthip Management Approach. Statement of Christine Busch (Greenpeace Germany) in the interview on April 30 , 2007.
28
Chapter 4 The donors can be divided into two groups. Namely the donors that give a small sum of money and the donors that give a large sum of money. Both are very interesting for the
Theory
organization, because they are interested and enthusiastic about the nature of the cause. On the other hand the organization has to pay a special interest in the donors that give a large sum of money.58
The second aim of a non-profit organization is to attract people to become a volunteer for the organization. Without volunteers a non-profit organization is unable to function. A NPO needs volunteers to reach its goals. The unpaid employees are an element of the nature of a non-profit organization.
The third aim is to get support for the nature of cause of the organization and make the general public aware of the existence of the organization. For these two tasks is it important to get publicity in the media. The awareness among the general public can help to attract new donors or to develop existing donors as well as that it helps spreading the message of the organization. Not only the awareness for the organization itself is important, but also the awareness for the tasks of the organization. With higher awareness and media coverage is it for the organization easier to reach their goals.
4.3 Strategies and Methods to Achieve the Aims
In order to achieve their aims organizations have several strategies how they can act and different methods and tools to be used but there are also coherences to be aware of. In the following a range of them is presented under the two sub areas communication and marketing.
4.3.1. Communication
Communication is a substantial part of the interactive marketing process. 59 Regardless if the organization is acting for profit or not, there are always messages which are communicated whether they are intended or unintended. As already Watzlawick stated, one cannot not
58 59
Sargeant, A. (1999), Marketing for Nonprofit Organizations. Grönroos, C. (2001), Service Management and Marketing: A Customer Relationship Management Approach.
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communicate because behaviour does not have a counterpart, there is no anti-behaviour.60 In order that the customers/end users, or in the case of non-profit organizations fundraisers and the public, understand the messages in the way it is intended by the organizations, the planning of communication is a central field.
4.3.1.1 The Sender - Receiver Model Each basic model of communication consists of four important elements. The first two are the sender and the receiver, while the involved communications tools are the message and the channel. Communication can be defined as the process of transmission of information of an originator to a receiver by means of the use of a message that it goes from one to another across a channel.61 Belch and Belch illustrate the connections between the elements and the within the framework arising functions of encoding, decoding, response/feedback and noise as follows:
Figure 6: The basic model of communication (Source: Belch & Belch, 2004). The source/sender which can either be an individual or a non personal entity is the starting point in the process information transmission. By selecting the words, pictures, style and symbols the source configures how they want to represent the message sent to the receiver. This process, when all the ideas and thoughts of the source are put into a symbolic form, is called encoding.62 The aim of the source is to encode the message in a way that the receiver
60 61
Watzlawick, P., & Beavin, J. H., & Jackson, D. D. (1967), Some tentative axioms of communication.http://www.mind-graph.net/foundations/linguistic/communication.htm 62 Belch, G. E. & Belch, M. A. (2004), Advertising and Promotion: An integrated Marketing Communications Perspective (6th ed.).
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understands the intended meaning. Therefore the sender should only use words, symbols and signs that are significant for the target group of the message.
The message consists of the information and the meaning that the sender wants to deliver. The form in which the message is presented must be appropriate for the channel that is being usedfor the communication.63 Verbal or non-verbal, and written or oral are some of the forms a message can have.
The method used for communicating the message towards the receiver is the channel. Personal and non-personal communication are the two possible categories. The personal communication is also called face-to-face communication. Expressions of these channels are friends, workers, family members, associates or other people the sender is in contact with. While the message is only sent do a view persons at a time by face-to-face communication, the nonpersonal channels reaches many individuals at the same time. Several kinds of mass media are examples for this channel type.
The receiver is the one to who the message is addressed. In order to understand the message it has to be decoded. At the end of the decoding process, which is influenced by the receiver's previous experience, knowledge or actual mood, the origin thoughts of the message should occur. If the receiver interprets, or in other words decodes, the message in a different way than it was decoded by the sender, the information he got is different from the one projected by the sender. A second problem is that the message is affected by noises during the transmission process. This noise is unplanned interference or torsion. It could also appear if the sender and the receiver do not have the common ground. It leads to an improper encoding of the message.
Up to this stage the communication was limited to one way. But in order to be successful four the sender the receiver should give a response. These actions can occur instantly, delayed or even not be able to be observed. The sender is furthermore interested in feedback in order to know how to decode the message and send it in the future.64
63
Belch, G. E. & Belch, M. A. (2004), Advertising and Promotion: An integrated Marketing Communications
P4erspective (6th ed.). 6 Belch, G. E. & Belch, M. A. (2004), Advertising and Promotion: An integrated Marketing Communications Perspective (6th ed.).
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4.3.1.2 Changing Perceptions and Expectations The borderline question of this chapter is what the donors and the public are expecting from an organisation, how they perceive the actions and behaviour of an organization and if these expectations and perceptions should be managed. It is obvious that the organization is not able to control the customers and therefore cannot and should not manage them.65 Similarly the nonprofit organizations cannot control their donors and should not manage them. But relationships itself can and should be managed.66 It is not easy to change people's minds, sometimes it is even impossible. But an organization should know what the public and especially the donors are thinking, particularly about the organization and its efforts. Even if the attitudes cannot be changed, the expectations of the people can be managed.
Ojasalo presents a dynamic model of expectations which describes the development during the relationship:
Figure 7: A dynamic model of expectations (Source: Ojasalo, J., 1999, extracted from Grönroos, 2002)
A fuzzy expectation exists when an individual expects that a problem is solved but does not have a clear understanding of what should be done.67 The challenge for the organization is to try to make these expectations explicit, not only to be able to fulfil it like it is the case for for- profit companies, but also for the use of not getting an image of an inactive organization. It is
65 66 67
Hougaard, S. & Bjerre, M. (2002), Strategic Relationship Marketing. Hougaard, S. & Bjerre, M. (2002), Strategic Relationship Marketing. Grönroos, C. (2001), Service Management and Marketing: A Customer Relationship Management Approach.
32
Chapter 4 better to state in a clear way that expectations cannot be fulfilled than to risk an image decrease and bad word of mouth in the public.
Theory
Explicit expectations are those where it is clear what the individual wants. These expectations can be realistic or unrealistic. While realistic ones can be fulfilled and will contribute positively to the organization's image and fundraising income; unrealistic ones are very dangerous because the individual expects the organizations to take certain actions which they do not want to take. This could lead to dissatisfaction and decreasing support. Implicit expectations are the ones the individuals take for granted to be fulfilled by the organizations. The problem in this field arises when the organization is not aware of these takenfor-granted expectations. Therefore, the intention is to make these implicit expectations to explicit ones. The other direction also appears, but the organizations should try to limit the amount of explicit expectations which become implicit ones.
The transformation of a consumer model for hospitals by Baron-Epel et al.68 to fundraising made by the authors of this thesis illustrates the outcome of unsatisfied expectations:
Figure 8: Relationship between donor's expectation, satisfaction and future donations
68
Baron-Epel, O. & Dushenat, M. & Friedman, N. (2001), Evaluation of the consumer model: relationship between patients' expectations, perceptions and satisfaction with care.
33
Chapter 4 The expectations of an interaction determine to a certain amount how this interaction is
Theory
perceived. In the customer relationship theory customers with lower expectations perceives the quality of a certain service level higher than customers with high expectations who a served on the same level. "The gap between the expected service and the perceived service is a result of four other gaps in the service quality model."69
4.3.1.3 Building and Enhancing Relationships In a recent study by O'Neil on 275 donors of a non-profit organization the association between the perceptions of public relationships and donor support where measured. "The findings of this study demonstrate long-term, successful public relationships impact behaviour."70 The model used in the O'Neil-study is an adaptation of Grunig71. Grunig's scholarly work is also the starting point for the four models of fundraising developed by Kelly. The two dimensions which form these models are the kind of the communication in the relationship (one-way communication versus two-way communication) and the balance of the intended effects (asymmetrical balance versus symmetrical balance). The first model is called 'press agency model' and characterized by one-way communication and an asymmetrical balance of intended affects. "This model is using the axiom 'There is a sucker born every minute'"72 and propagandizes a cause with emotional appeals that may or may not be entirely factual. The 'public information model' also consists of one-way communication but with a symmetrical balance. This means that truth and complete information are important because "donors are enlightened rather than emotionally hoodwinked"73. The third model consists of two-way communication and asymmetrical balance or intended effects. "It was developed in the 1920ies but is still the dominant one today." 74 Research is done by fundraisers on the donor's interests so that persuasive messages can be developed and communicated for planned campaigns which are tailored to the donor's desires. The fourth model is also characterized by two way communication but it is the only model in which donors are engaged as serious partners and collaborators rather than as repositories of
69 70
Grönroos, C. (2001), Service Management and Marketing: A Customer Relationship Management Approach. O'Neil, J. (2007), The link between strong public relationships and donor support. 71 Gruning developed four models of public relations, each formed by two criteria which were first the kind of communication [one-way, two way] and second the balance of the intended effects [asymmetrical, systrementical]. These models can for example be found in the article "Models of public relations and communications" (1992) or in the book "Managing public relations" (1984) which was written together with Hunt. 72 Hall, M. R. (2005), Building on Relationships: A Fundraising Approach for Community Colleges. 73 Sheehan, R. M. (2003), Fundraising Management. Sheehan, R. M. (2003), Fundraising Management.
74
34
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money. According to Kelly "these model is the optimal one because the organizations provide something that the public needs and values and the public provides something the organizations needs and values"75. It has to be stated that these interaction is more likely to happen on a regional or local level than on a global one. Nevertheless, the communication between the organization and the public has to be managed in order to build beneficial relationships.
Finally, one has to say "many other thoughtful fundraisers agree that relationships are the key to fundraising success"76.
4.3.2 Marketing Mix
Each message or other expression of communication from a company to the end user is part of marketing. But what is marketing? "Marketing consists of individual and organizational activities that facilitate and expedite satisfying exchange relationships in a dynamic environment through the creation, distribution, promotion, and pricing of goods, services, and ideas."77 In this definition made by Kotler one recognizes that the marketing mix consist out of 4 P's. These four P's are product, price, place and promotion.78
Figure 9: The 4 P's of marketing (Source:http://www.netmba.com/marketing/mix)
75 76 77 78
Hall, M. R. (2005), Building on Relationships: A Fundraising Approach for Community Colleges. Hall, M. R. (2005), Building on Relationships: A Fundraising Approach for Community Colleges. Dibb, S. & Simkin, L. & Pride, W. M. & Ferrell, O. C. (1994), Marketing: Concepts and Stthrategies (2nd ed.). Kotler, P. & Wong, V. & Saunders, J. & Armstrong, G. (2005), Principles of Marketing (4 ed.).
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The four p's form the basis for each single marketing program of an organization. But modern marketing calls for more than just producing good products, selling them for a price with a satisfying margin and making the products available for end users. Communication is also an essential part of the marketing mix.
Kotler states that the P of product "includes more than just tangible goods. Products include physical objects, services, persons, places, organizations, ideas or mixes of these entities"79. The P of place deals with how the product is distributed to the end users or potential end users. The P of price refers to the "sum of all the values that consumers exchange for the benefits of having or using the product"80. The P of promotion can be described with the promotion mix which consists of "the specific blend of advertising, personal selling, sales promotion, public relations and direct marketing tools that the company uses to pursue its advertising and marketing objectives"81.
4.3.3 Guerrilla Marketing
Guerrilla marketing is a loosely defined term. Ives gives the definition that it is "a broad range of advertising methods that strive to strike when people least expect it. Though publicity stunts have been turning heads forever, mainstream marketers are increasingly turning to guerrilla tactics as consumers prove more difficult to reach with traditional advertising"82. Levinson is a well-known author in this field and defines guerrilla marketing as an unconventional way of performing marketing activities (primarily promotion) on a very low budget. Instead of monetary resources time, creativity, and imagination are invested. The general view has in common that guerrilla marketing is unconventional marketing with the use of unconventional communication channels. Furthermore, there is a change visible from the necessary need of low costs towards the use of hit and run tactics without imperative low costs. Nevertheless it is still possible to do guerrilla marketing with less financial resources.
The senders of information have developed different promotional tools to get through the jungle of marketing. Some of these tools are seen as guerrilla marketing. These are in specific:
79 80 81 82
Kotler, P. & Wong, V. & Saunders, J. & Armstrong, G. (2005), Principles of Marketing (4th ed.). Kotler, P. & Wong, V. & Saunders, J. & Armstrong, G. (2005), Principles of Marketing (4th ed.). Kotler, P. & Wong, V. & Saunders, J. & Armstrong, G. (2005), Principles of Marketing (4th ed.). Ives, N. (2004). Guerrilla campaigns are going to extremes, but will the message stick?
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Chapter 4 Viral Marketing According to Marsden & Kirby viral marketing "describes any strategy that encourages
Theory
individuals to pass on a marketing message to others, creating the potential for exponential growth in the message's exposure and influence. Like viruses, such strategies take advantage of rapid multiplication to explode the message to thousands, perhaps to millions"83. Some marketers see the marketing activities of viral marketing as the digital form of word of mouth. The Internet provides forums, chat rooms, blogs, video sites and instant messaging programs. The idea behind viral marketing is to create a buzz, discussion on the Internet and especially on the targeted markets forums and websites.84
Live Buzz Marketing The word buzz is a slang word, but originally it comes from the sound that a bee makes, a buzzing sound. According to Marsden & Kirby "live buzz marketing is a technique that uses an event or performance to create a buzz"85. There are two kinds of live buzz marketing. One is 'live peer-to-peer' and the other 'live performer-to-peer' marketing. When the general public is spreading the word about a specific product this is called live peer-to-peer marketing. The persons that are talking about a specific product have the self-evaluation of being modern and having knowledge of the area the product is situated in. The live performer-to-peer marketing is present when high qualified and trained persons, sometimes called performers, are hired by an organization in order to create a buzz. This method has the advantage that the buzz can be controlled to a certain level of the spread, but on the other hand the disadvantage that it is not for free. Marsden & Kirby believe that live buzz marketing can be a good tool for an organization who wants to try a new way of marketing to reach end users.
4.3.4 Promotional Mix
Advertising is one of the most visible components of the promotional mix, but what is advertising? Advertising is according to Kotler "any paid form of non-personal presentation and promotion of ideas, goods, services by an identified sponsor"86. A closer look to this sentence gives us the words paid and non-personal. The word paid means that one has to buy
83 84 85 86
Kirby, J. & Marsden, P. (2006), Connected Marketing: The Viral, Buzz and Word of Mouth Revolution. Kirby, J. & Marsden, P. (2006), Connected Marketing: The Viral, Buzz and Word of Mouth Revolution. Kirby, J. & Marsden, P. (2006), Connected Marketing: The Viral, Buzz and Word of MouththRevolution. Kotler, P. & Wong, V. & Saunders, J. & Armstrong, G. (2005), Principles of Marketing (4 ed.).
37
Chapter 4 space in a particular channel to be able to send a message. The word non-personal can be interpreted as mass media, in other words without a direct opportunity for feedback.
Theory
The attribute that advertising has no direct opportunity for feedback has to be considered when the reaction of the people to the messages is investigated. The second character of advertising is that it is mass media. A lot of people are reached on the same time, but with a lot of waste outside the target group and the phenomenon of blocking the message.87
Direct marketing is the fastest growing form of promotion in the US economy88. According to Bennett direct marketing are "direct connections to carefully targeted individual consumers both to obtain an immediate response and to cultivate lasting customer relationships by the use of telephone, mail, fax, email, the Internet and other tools to communicate directly with specific customers"89. Direct marketing is more than only direct mailing campaigns or telephone campaigns. Direct marketing consists also out of customer database management, how to use telemarketing and direct response ads through direct mail. A relatively new way of direct marketing is the Internet. This medium increased the opportunities for direct marketing because by the use of cookies customers can be targeted individually. The Direct Marketing association gives another definition of direct marketing: "Direct marketing is an interactive marketing system that uses one or more advertising media to affect a measurable response and/or transaction at any location".
The next step in the promotional mix is public relations and publicity. A lot of times these two terms are used in the same sentence. Publicity, according to the American Marketing Association, "refers to any kind of non personal communications regarding a product, service, an organization, brand or an idea that not is directly paid"90. This means that the publicity comes from some kind of activity in the media like, news story, editorial, or announcement of a product. It is related to advertising in the sense of non-personal and mass media. The biggest difference is that one can control this to a lower extent, because one does not directly pay for it. It is a cheap form of marketing, since one can get a lot of space in different communication channels without spending many resources, but one cannot control what the different communication channels like TV or the newspaper say about the organization. According to
87 88 89 90
Welsch, H. P. (2004), Entrepreneurship: the way ahead. Belch, G. E., & Belch, M.A. (2004), Advertising and Prodmotion. Bennett, P. D. (1995), Dictionary of Marketing terms (2n ed.).http://www.marketingpower.com/mg-dictionary.php?SearchFor=publicity&Searched=1
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Kotler, the advantage of publicity is that the receivers are tending to perceive the message as more reliable then advertising.91 Not only is the reliability a plus of publicity, also that PR can reach many prospects that normally avoid and block themselves from salespeople and advertisements is an advantage. The reason is that the people regard it as news instead of a sales directed communication.92 On the other hand negative stories can cause a lot of damage to a company or organization.
Public relations can be used to control the reports in the media by providing information. But what does public relations exactly mean? The American Marketing Association describes it as "the form of communication management that seeks to make use of publicity and other non paid forms of promotion and information to influence the feelings, opinions, or beliefs about the company, its products or services, or about the value of the product or service or the activities of the organization to buyers, prospects, or other stakeholders". 93 "PR as a communication tool can take over several functions of traditional conventional marketing and advertising."94
Personal selling is the next part in the promotion mix. It is a form that exists out of person-toperson communication in which the firm's sales force attempts to persuade prospective buyers of the firm's product. This is a more direct form of marketing then for example advertising. The seller can constantly feel the reaction of the prospective buyer and can adjust the sales method. This method is also useful where a fast feedback procedure is needed and one wants to know if the campaign is successful or not.95
Internet and interactive marketing are the last part of the promotion mix. Because of the interactive character, it is possible to have more back and forth movements in the information. The users can easily participate and modify the form and content they receive or send in real time. 96 Another character of the Internet is that a receiver can look for more information and have interaction with other users at the same time.
91 92 93 94 95 96
Kotler, P. & Wong, V. & Saunders, J. & Armstrong, G. (2005), Principles of Marketing (4th ed.). Kotler, P. & Wong, V. & Saunders, J. & Armstrong, G. (2005), Principles of Marketing (4th ed.).http://www.marketingpower.com/mg-dictionary.php?Searched=1&SearchFor=public relations Kotler, P. & Wong, V. & Saunders, J. & Armstrong, G. (2005), Principles of Marketing (4th ed.). Kotler, P. & Wong, V. & Saunders, J. & Armstrong, G. (2005), Principles of Marketing (4th ed.). Belch, G. E., & Belch, M. A. (2004), Advertising and Promotion.
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4.3.5 Word of Mouth
Mouth to mouth communication is a very powerful source of information for customers97 and potential customers. These are in the case of non-profit organizations present and future volunteers, donators and supporters. Word of mouth is "oral person-to-person communication between a receiver and a communicator whom the receiver perceives as non-commercial, concerning a brand, a product or a service"98. It occurs when two or more people talk and discuss a commercial topic. Word of mouth is not always positive, it can be also negative. Potential consumers are looking for word of mouth when they think their purchase has some kind of risk. They can find positive word of mouth or negative word of mouth. Word of mouth about a certain product has a lot of influence especially when it comes from friends or family.99 Therefore, word of mouth is a powerful tool in the decision making process of people who are searching for the right product.
97
Smith, R. E. & Vogt, C. A. (1995), The Effects of Integrating Advertising and Negative Word of Mouth Communications on Message Processing and Response. 98 Kirby, J. & Marsden, P. (2006), Connected Marketing: The Viral, Buzz and Word of Mouth Revolution. 99 Kirby, J. & Marsden, P. (2006), Connected Marketing: The Viral, Buzz and Word of Mouth Revolution.
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Chapter 5
Empirical Findings
5. EMPIRICAL FINDINGS
In this chapter we present the empirical findings of the questionnaire and the findings of the interview we conducted with the fundraising representative of Greenpeace Germany.
5.1 Findings of the Questionnaire
In the following the response of the 103 people who participated in our survey is shown. This presentation is split into two sections. At first the demographic background of the interviewees is presented in 5.1.1, than their answer towards our questions about the thesis topic are given in 5.1.2 and its subchapters. Nevertheless, in order to understand the presentation of the findings, some notes are helpful: - The questionnaire itself can be found in appendix B. - In the questionnaire the term marketing includes all activities concerning communication, public relations and advertising. - When the questionnaire was handed out to public it was not separated in the subchapters mentioned in the presentation of the findings (chapter 5.1.2), but we the empirical findings in order to give the reader a better understanding of the different topics within the questionnaire. - Because the focus of this thesis is the attitude of the public concerning the use of marketing and communication by NPOs, we choose to present the answers that are in these subchapters (5.1.2.4 and 5.1.2.5) in tables. - To get a better understanding of the tables it is useful to know how they are built up. At first the total amount of "yes" and "no"-answers is given and than a single table is made for each group. The first column contains the answer that was given, the second one the amount of persons that gave this answer and in the last column the percentage of interviewees who gave this answer related to the total amount of answers given for this "yes" or "no"-group is shown. - To make the findings easier to read and to detect the predominant meaning of the public, we chose not to present every answer separately in a "word by word"-style. We identified the underlying meaning of each answer and combined similar ones. - As a result of questions which have been left void by some interviewees, the total amount of answers is not always 103 or a multiple of it. The amount of persons who did not reply is not mentioned separately, but results from the difference of "yes" plus "no"-answers to 103. - As a result of rounding the total percentage of all answers has not to be 100. 41
Chapter 5
Empirical Findings
5.1.1 Demographic Background of the Interviewees
The tables five till ten give the demographic characteristics of the respondents. With regard to the sex males were marginal over-represented at 54.4 per cent. The majority of the respondents were under 36 years of age. The largest fraction of the interviewees is clerk, followed by students and workers. Regarding the income, more than 50 per cent earn less than 2000 € a month. Only 15.5 per cent of the interviewees live in a household consisting of more than three persons. The nationalities are approximately uniformly distributed, although the Dutch are the largest group.
Gender Female Male
n 56 47
% 54.4 45.6
Income (befor0e taxes in €/month) < 100 1000 - 1999 2000 - 2999 3000 - 3999 > 4000
n 25 29 23 16 10
% 24.3 28.2 22.3 15.5 9.7
Table 5: Gender of respondents
Age < 18 19 - 25 26 - 35 36 - 65 > 65 n 4 33 27 29 10 % 3.9 32.0 26.2 28.2 9.7
Table 8: Income of respondents
Persons in household Living alone Two Three Four Five More than five n 28 37 33 11 23 % 27.2 35.9 32.0 10.7 1.92 .9
Table 6: Age of respondents
Profession Student Worker Clerk Freelancer Retired n 30 23 35 7 8 % 29.1 22.3 34.0 6.8 7.8
Table 9: Persons in the household
Nationality Dutch Swedish German n 36 34 33 % 35.0 33.0 32.0
Table 7: Profession of respondents
Table 10: Nationality of respondents
5.1.2 Interviewees' Attitudes towards Non-Profit Organizations
The following five subchapters of the questionnaire, which are presented in this chapter, represent the different areas of our survey. The first subchapter deals with the interest of the public in non-profit organizations and consists only of question 7. Afterwards, the support of NPOs by the public is the subject of consideration in subchapter two (questions 8 - 13). It includes an evaluation of the actual and past support of financial or personal aid. Also the reasons for supporting or not supporting an 42
Chapter 5
Empirical Findings
organization are given. The two questions (14 - 15) which form the third subchapter, deal with the knowledge that the public has about NPOs in general, and about the understanding what certain NPOs are doing. The fourth chapter (questions 16 - 29) is the main part of our investigation and goes deeper into the relation between marketing and communication within NPOs. It deals with the question how and why marketing can or cannot be used by NPOs. Furthermore, the actual and future state of marketing in NPO-sector is evaluated. This subchapter also contains information about the recognition of marketing expressions by the public. Also the criteria NPOs have to fulfil before the public is willing to donate money are presented. The fifth and final chapter (questions 30 - 34) lasts its focus on the relationship between guerrilla marketing and NPOs. It begins with an evaluation of what guerrilla marketing is for the public. After an explanation "what guerrilla marketing is", the public judgement of it is evaluated. The main focus lies on the purposes NPOs should use guerrilla marketing for and what the main aspect that makes guerrilla marketing interesting is.
5.1.2.1 Interest in Non-Profit Organizations The question "are you interested in NPOs?" was answered with yes by 76 persons (73.8 %), with no by 20 (19.4 %), while 7 (6.8 %) did not answer this question. The reasons for "Yes" answers were: 1. NPOs do good work which the government cannot or does not do. 2. The non-profit organizations provide the society with extra benefits. 3. NPOs have more valuable goals than for-profit organizations. 4. NPOs deal with important social and environmental issues. 5. Voluntary work is good. 6. NPOs are less corrupt than companies. The reasons for "No" answers were: 1. NPOs only do things which governments should do. 2. I am to busy with my own life and do not have any time to get involved in NPOs. 3. NPOs are spending too much money aside of their core field of activity. 4. The do not offer suitable jobs for me.
43
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Empirical Findings
5.1.2.2 Support of Non-Profit Organizations The question "do you or have you supported a NPO?" was answered with "Yes" by 59 interviewees (57.3 %), while 43 (41.7 %) said "No". The reasons for "Yes" answers were: 1. NPOs help people who live in worse conditions than I do. 2. Supporting NPOs is the easiest way for me to support other people. 3. I care about the environment myself, but the NPOs have penetrating power to achieve improvements. 4. NPOs fit to my personal interest and beliefs. 5. After disasters and natural catastrophes money helps to rehabilitate. 6. I profited from NPOs. The reasons for "No" answers were: 1. NPOs are spending too much money aside of their core field of activity. 2. The NPOs pay to much money to their managing board, especially to their CEO. 3. I am not interested in NPOs. 4. I only donate money to local projects where I can directly see the result. 5. I had no contact to them.
49 (47.6 %) of the respondents supported or still support a NPO with money and 16 (15.5 %) as volunteers.
Out of the fifteen organizations the respondents support, the most mentioned five ones were: 1. The Red Cross 2. International Fund for Animal Welfare (IFAW) 3. Greenpeace 4. Bund für Umwelt und Naturschutz Deutschland [BUND] 5. United Nations Children's Fund [UNICEF] The other organizations named were: UNA Sweden, SOS Children Valley, Attac, BRIS, Doctors without Borders, Humanitas, CliniClowns, the World Wide Fund for Nature (WWF), and local sport clubs as well as churches.
44
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Empirical Findings
Regarding the organizations the interviewees supported in the past and do not support any more, only four organizations were named. These are: 1. Greenpeace 2. Amnesty International 3. IFAW 4. CliniClowns
The reasons why the respondents do not support the organizations any more are: 1. Problems in the organization (Improper use of money, stealing, personal disagreements) 2. I moved/changed to another NPO. 3. I want to support local projects and not multinational ones. 4. My financial situation does not allow it anymore. 5. NPOs judge structural relations wrong and make unsuitable improvement proposals as a reason of that. 6. My husband does not want it any more.
The answers for the question how the supported NPOs are chosen were: 1. The newspapers and the TV reported about campaigns the organizations did or help the organizations provided after a disaster. 2. The NPO had an information desk in the shopping area and convinced me to support them. 3. Information about the organizations by friends and the Internet. 4. Bus stop adverts, TV commercials, or postcards in magazines called my attention. 5. The organization sent a letter to me, presented themselves and asked for a donation. 6. A relative is working in this NPO.
5.1.2.3 Knowledge about Non-Profit Organizations When the 103 interviewees were asked to name five NPOs which are active in their country they mentioned 28 different organizations. The top seven ones were: 1. Greenpeace 2. The Red Cross 3. Amnesty International 4. UNICEF 5. W W F 6. International Fund for Animal Welfare (IFAW) 45
Chapter 5 7. Doctors without Borders
Empirical Findings
These are complemented by UNA Sweden, BRIS, IQ, local churches, Robert Bosch Stiftung, BUND, Humanitas, CliniClowns, World Health Organization [WHO], Attac, Technisches Hilfswerk (THW), SOS Children Valleys, World Vision, Malteser Hilfswerk, Caritas, Stiftung Warentest, United Nations [UN], Unesco, Misereor, Brot für die Welt, Bundesverbraucherzentrum and local sport clubs.
The answer what the specific organizations are doing and what they are standing for were answered as follows for the top-seven organizations: 1. Greenpeace: Care about the environment, air pollution, and animals. 2. The Red Cross: Provide disaster relief; provide medical care during events and offers lectures in first aid. 3. Amnesty International: Work in the field of human rights and try to influence politicians. 4. UNICEF: Care about children in developing countries. 5. WWF: Care about the nature and animals. 6. International Fund for Animal Welfare (IFAW): Care about animals and the nature. 7. Doctors without Borders: Provide medical help in less developed countries and conflict areas. The description of what the other organizations are doing can be found in the appendix D.
5.1.2.4 Marketing and Communication of Non-Profit Organizations When the interviewees were asked if "they have ever seen an advertisement, a TV or radio spot, a flyer or any other marketing effort from Greenpeace, Médicines sans Frontières (Doctors without Borders), the Red Cross, or Amnesty International and what the message was?" 49 (47.6 %) did not remember any commercial. The other answers are shown in table no. 11.
Description of the message by the interviewees "A letter in which they tried to create mercy and said they need money to help!" "An advertisement in the newspaper where the asked for donations for a certain project" "An billboard in the town for the protection of human rights" "A postcard in the newspaper to be sent to support a campaign" "It was an information desk in the street and they tried to find donators" "I remember that I saw one, but I do not know what the message was" "Take care about your environment" n 16 11 88 54 2 % 29.6 20.4 14.8 14.8 9.37 .43.7
Table 11: Description of the message by the respondents 46
Chapter 5
Empirical Findings
Out of the 54 people who recognized any form of marketing by the four mentioned NPOs 16 (29.6 %) that they liked the "spot, flyer, ad", but only 2 (12.5 %) were able to describe why. Both respondents said because they were "emotionally touched". 38 people (70.4 %) did not like it. There reasons given by the respondents are presented in table no. 12.
Reason "It was nothing special, just an ordinary advertisement / spot / flyer" "It has been the same for a lot of years" "Because the were asking for money" "If it would have been interesting I would have not forgotten the message" n 26 5 4 3 % 68.4 13.2 10.5 7.9
Table 12: Reasons why the respondents did not like the marketing expressions
Out of the 54 people who recognized a marketing campaign 6 (11.1 %) donated money or supported the organization personally afterwards. From 6 the people who did so, 4 (66.6 %) said the reason was that "they felt bad and had compassion" after recognizing the campaign. The other 2 (33.3%) became backers after the conversations at the information desks in the streets.
When the interviewees were asked if "they know some marketing expressions from any other NPO apart from Greenpeace, Médicines sans Frontières (Doctors without Borders), the Red Cross, or Amnesty International" 70 persons (68.0 %) said they do not know any. The 31 people (30.1 %) who do so know the expressions and the organization, which are specified in table no. 13.
Organization Several local one s IFAW SOS Kinderdorf CliniClowns World Vision Marketing Expression "Articles in regional newspapers where churches and sport clubs asked for financial and/or personal support" "TV commercial about saving animals as whales and tigers" "A letter from the children's village with postcards that can be used as gifts made by the kids" "Information desks in the streets with clown handing out read noses" "Advertisement in a TV guide and a TV commercial aiming to people to take a godparenthood for a child in the third world" "TV commercial where IQ presented one of their projects with which they wants to achieve a change of attitudes in the society that lead to slimmed-down alcohol consumption" "TV spot to encourage and inform children that they can call BRIS when they have problems in school or at home." "Flyer to implement the questions the United Nations are faced with into the daily life" Not remembered n 9 7 5 3 2 % 29.0 22.6 16.1 9.7 6.5
IQ BRIS UNA Sweden BUND
2 1 1 1
6.5 3.2 3.2 3.2
Table 13: Marketing expressions by other NPOs which the respondents named 47
Chapter 5
Empirical Findings
The question "do you think it is good that NPOs use marketing?" were answered with "Yes" by 58 persons (56.3 %) while 43 (41.7 %) said "No". The reasons mentioned by the yes- saying people are shown in table no. 14, the ones by the deniers in table no. 15.
Reason "The organizations have to inform the public about what they are doing and that exist. Otherwise the public does not know them" "NPOs are just like for-profit organizations" "There is competition in the fundraising market" "NPOs need a good reputation" No reason given n 31 12 7 5 3 % 53.4 20.7 12.1 8.6 5.2
Table 14: Reasons why marketing is good for NPOs
Reason "It is a waste of money" "NPOs should focus on their core foci" "NPOs do not have to do marketing" No reason given n 19 13 7 4 % 44.2 30.2 16.3 9.3
Table 15: Reasons why marketing is not good for NPOs
The next task for the respondents was to mark the two most important aims out of the four preselected ones "fundraising", "personal support", "spreading their message" and "improving their image" or to name another aim, for which marketing should be used by non- profit organizations. The results can be found in table no. 16.
Aim Spreading their message Fundraising Personal support Improving their image Else: Inform the public about fundraising Else: Increase the publicity Else: Influence political decision makers n 46 36 10 5 3 1 1 % 45.1 35.3 9.8 4.9 2.9 1.0 1.0
Table 16: Aims for which the NPOs should use marketing
The question if NPOs are more active in the marketing field than in the past was answered with "Yes" by 78 respondents (75.7 %), while 25 (24.3%) said "No". Only four people mentioned a reason for their judgement. Two of the "Yes"-group said "marketing and media have an increased importance in a global world". One member of the "No"-fraction said "nothing has changed" and another one even said "there were more advertisements for environmental friendly behaviour in the 90ies than there are today".
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Concerning the question what the people "think of NPOs spending money for marketing?" 74 persons (71.8 %) answered that it is okay, while 27 (26.2 %) replied that is it not okay. The explanations made by the persons who have nothing against expenditures for marketing can be found in table no. 17; the ones by the deniers in table no. 18.
Explanation "The NPOs have to inform the public about what they are doing" "Without marketing the NPOs would get less donations" "The NPOs have better intensions / messages than money driven companies" "NPOs need to attract more people" "NPOs and for-profit organizations are closely related nowadays, so the NPOs cannot behave like amateurs" "NPOs do good things" n 36 17 7 6 4 4 % 48.6 23.0 9.5 8.1 5.4 5.4
Table 17: Explanations why it is okay that NPOs spend money for marketing
Explanation "The money could be used in a more useful way" "Marketing is a waste of money for NPOs" "Non-profit and marketing are not fitting together" n 15 9 3 % 55.6 33.3 11.1
Table 18: Explanations why it is not okay that NPOs spend money for marketing
99 people (96.1 %) of the interviewees agreed to the statement: "If a non-profit organization is using money for marketing, they have to communicate this in a clear way to their financial supporters." The reasons why the people agreed to this statement are shown in table no. 19. The 3 persons (2.9 %) who disagreed explained this all three with the reason that they "believe that everything the NPOs do is the best for them and explanations cost just resources which can be used more useful".
Reason "People who donate money have the right to know how it is used by the NPO" "Transparency is a quality dimension of NPOs" "The organizations should even provide information about how the money is used every month, not only mention it in the annual report" "I would appreciate to read on the account statement for what the organization has used my donation in specific. For instance, 'we bought one desk or used the money you donated for campaign XY'." n 81 8 6 % 81.8 8.2 6.1
1
1.0
Table 19: Reasons for the need of statements of using money for marketing
As answer to the question "do you think that NPOs are acting more like for profit organizations in the marketing area?" 77 respondents (76.2 %) wrote "Yes"; 24 (23.8 %) "No". The statements made by both groups can be found in the tables no. 20 and no. 21.
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Explanation "There is more marketing around NPOs" "NPOs use the same methods as for profit ones do" "NPOs compete with other NPOs for money" "NPOs just do so" No comment given
Empirical Findings
n 33 27 12 3 2 % 42.9 35.1 15.6 3.9 2.6
Table 20: Explanations why NPOs act like profit orientated ones in the marketing area
Explanation NPOs marketing is done by volunteers" "NPOs do not use professional advertising agencies" "NPOs are not that professional as for-profit organizations are" "The messages and aims of NPOs are different" "Scandals and mistakes are more harmful for NPOs / they have more to loose" No comment given n %"In 8 33.3 6 25.0 4 16,7 3 12,5 2 8,3 1 4,2
Table 21: Explanations why NPOs do not act like profit orientated ones in the marketing area
When the interviewees were asked "do you think it is necessary that NPOs increase their marketing and communication activities?" 24 ones (23.3 %) respond with "Yes", while 72 (69.9 %) returned "No". The reasons made by the persons who recommend an increase for marketing can be found in table no. 22; the ones by the deniers in table no. 23.
Reason "NPOs have to profile themselves better and more clear" "NPOs have to inform the public in a better way about what their activities" "People are connected to networks (work, friends, family) but NPOs are not widespread in these networks" No comment given n 12 10 1 1 % 50.0 41.7 4.2 4.2
Table 22: Reasons for NPOs to increase their marketing and communications activities
Reason "NPOs are active enough in this field / The level of marketing is high enough" "I do not want more money to get wasted in marketing and communication" "The money should be used four real actions, relief - and not for marketing" "Marketing is not the main focus of these organisations" No comment given n 25 23 16 53 % 34.7 31.9 22.2 6.94 .2
Table 23: Reasons for NPOs not to increase their marketing and communication activities
The matter of professional marketing agencies used by non-profit organizations where questioned also. 76 interviewees (73.8 %) said they "also would donate money if the NPO is using professional marketing agencies, while 26 persons (25.2%) said they would not. The explanations by the donors are shown in table no. 24; the ones of the deniers can be found in table no. 25. 50
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Empirical Findings
Explanation "As long as not too much money is spend for using the agencies" "I have no problems with NPOs using professional agencies" "It is necessary for the NPOs in order to inform the public about their existence and activities" "The non-profit sector is getting more professional so the marketing should also become more professional" "A professional marketing shows that the whole NPO acts professional" "NPOs do not have to pay the agencies the same amount as companies have, they get the services for a smaller price"
n 18 18 15 12 7 4
% 23.7 23.7 19.7 15.8 9.2 5.3
Table 24: Explanations why people also donate if the NPO is using marketing agencies
Explanation "Professional agencies are expensive" "The NPO can also market themselves; there is no need for professionals" "The agencies do business in a different way then the NPOs do" "The agencies are not geared for NPOs" No comment given n 11 9 4 2 1 % 42.3 34.6 15.4 7.7 3.8
Table 25: Explanations why people do not donate if the NPO is using marketing agencies
The participants in our questionnaire were asked to name the two most important criteria NPOs have to fulfil in their marketing area in order that the interviewees support them. The four preselections as well as the answers can be found in table no. 26.
Criteria Honesty Openness The money should be used for activities, not for bureaucracy Quick response to arisen questions Else: Prove why they should get the money and not another NPO n 87 74 29 18 2 % 84.5 71.8 28.2 17.5 1.9
Table 26: Criteria the NPOs have to fulfil in order to receive support
The final question of the marketing and communication part was not related to NPOs directly any more, but evaluates the marketing expressions the respondents are annoyed with. The most important three out of the eight below presented expressions were asked to be named. The results are presented in table no. 27.
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Marketing Expression Phone calls Emails Flyers thrown into the mailbox Flyers handed out in the streets Commercials in the TV Other: People ringing at the front door Commercials in the radio Advertisements in newspapers / magazines Billboards in the town
Empirical Findings
n 97 71 48 31 18 15 7 5 4 % 94.2 68.9 46.6 30.1 17.5 14.6 6.8 4.9 3.9
Table 27: Marketing expressions the public is annoyed of
5.1.2.5 Guerrilla Marketing and Non-Profit Organizations The question "What is guerrilla marketing for you?" was answered with "I have never heard about it" by 64 persons (62.1 %). The answers of the 37 persons (35.9%) who knew about it are presented in table no. 28.
Description beyond the usual/common meanings of marketing" "Marketing that is not common" "Hit and run tactics in the marketing area" "Polarizes and stays in mind" "Marketing on a low / zero budget" "Includes activities in areas where people do not expect to be addressed" "It is spontaneous / surprising" "A good way to combine message and humour" "Marketing that is not done by the company itself" "Very aggressive marketing" "Marketing that contravenes the law" "Marketing that addresses persons who are interested in weapons" "Minimize the price to get market share" n %"Lies 5 13.5 5 13.5 4 10.8 4 10.8 4 10.8 3 8.1 3 8.1 2 5.4 2 5.4 2 5.4 1 2.7 1 2.7 1 2.7
Table 28: Public descriptions of guerrilla marketing The respond to the question "Do you think guerrilla marketing is a good tool in the marketing strategy of NPOs?" was answered with "Yes" by 58 persons (56.3%) and with "No" by 43 persons (41.7%). The reasons mentioned by the "Yes"-saying persons are presented in table no. 29 and the reasons by the "No"-saying people are shown in table no. 30.
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Reason "It is different so it will get attention and remembered better" "Easier to spread a message for an idea of a NPO than for a normal product" "Lower costs, maximum effects" "It annoys less then normal advertisements like for example commercials in the mailbox or TV advertisements" "It generates free publicity" "New ideas are interesting" „It serves as a platform to speak" "It is a way to make a difference in marketing"
Empirical Findings
n 17 13 12 8 3 3 1 1 % 29.3 22.4 20.7 13.8 5.2 5.2 1.7 1.7
Table 29: Reasons why guerrilla marketing is a good tool in marketing strategies of NPOs
Reason "NPOs should be open and honest about what they do and not hide themselves" "I think marketing and NPO do not fit together" "Marketing for NPOs is a waste of money even if it is guerrilla marketing" "Guerrilla marketing will harm the transparency of the NPO" "I am against using money in marketing, but I think I am more positive about guerrilla marketing if it is not that expensive as for example TV commercials are" "Older people are the main donators and they do not understand guerrilla marketing activities" "Guerrilla marketing is often in conflict with regulations or the law" n 18 76 5 4 2 1 4.7 2.3 % 41.9 16.3 14.0 11.6 9.3
Table 30: Reasons why guerrilla marketing is not a good tool in marketing strategies of NPOs
The question "Do you think guerrilla marketing can be used in all segments of NPOs?" was answered with "Yes" by 66 persons (64.0 %) and with "No" by 34 (33.0 %). The reasons given by "Yes"-answerers are shown in table no. 31, the ones of the deniers in table no. 32.
Reason "Guerrilla marketing is cheap" "Guerrilla marketing is an option, but there are differences between the organizations, so not all activities are suitable for each NPO" "Guerrilla marketing is a good way for all organizations, also for-profit ones" "Yes, because there are not many differences between NPOs" "Guerrilla marketing proved itself also in for profit organizations" N 28 21 9 6 2 % 42.4 31.8 13.6 9.1 3.0
Table 31: Reasons why guerrilla marketing can be used in all non-profit segments
Reason "Guerrilla marketing leads more likely to negative feedback, it is less serious and has an unreliable touch" "Marketing and NPOs do not fit together" "The segments of the NPOs are different. / Greenpeace is an aggressive NPO but Amnesty International is more quite. / The guerrilla marketing activity has to fit to the profile of the NPO and sometimes guerrilla marketing does not fit." No comment given N 20 7 6 1 % 58.8 20.6 17.6 2.9
Table 32: Reasons why guerrilla marketing can not be used in all non-profit segments 53
Chapter 5
Empirical Findings
The next task for the respondents was to mark the most important target a NPO should use guerrilla marketing for. The different preselected answer opportunities were "Fundraising", "Personal support", "Spreading their message", and "Improving their image". It was also possible to name another task not mentioned in our list. The replies are presented in table no. 33.
Tasks Spreading their message Personal support Fundraising Improving image n 64 15 11 11 % 62.1 14.6 10.7 10.7
Table 33: Tasks for which guerrilla marketing should be used
The final question was totally open. The interviewees had to answer the question: "What aspect of guerrilla marketing do you think is the most interesting one for NPOs?" 82 persons (79.6 %) gave a feedback which is shown in table no. 34.
Aspect "The possibility for low costs" "Spreading the message in a way that the audience is not recognizing that it is marketing" "The surprise factor" "Guerrilla marketing can help NPOs to become 'hip', 'hot' and 'in'." "The high attention it can get " "People will talk about it" "Attracting new supporters" "To produce a feeling that makes one feeling the action makes a difference" "Targeting the youth" "Guerrilla marketing is suitable for new technologies like internet with websites as Youtube, blogs, web specials and Buddy's in chat programs" "Guerrilla marketing is especially suitable for NPOs because it is a rather cheap way to spontaneously address people with actions, which they will remember. As NPOs have rather ideas/moral to "sell", those guerrilla marketing promotions are good ways to touch people emotionally and catch their attention. It is necessary that the actions stick out from new commonly used information stands and leaflet distribution in pedestrian areas." n 23 14 13 7 6 5 4 4 3 2 % 28.0 17.1 15.9 8.5 7.3 6.1 4.9 4.9 3.7 2.4
1
1.2
Table 34: The interesting aspects of guerrilla marketing for NPOs
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Empirical Findings
5.2 Findings of the Interview with Greenpeace Germany
Organization of the interview The interview with Greenpeace Germany was conducted on the 30 th of April 2007 by telephone. Besides the information gained with this telephone call, emails and an information package sent by post formed the empirical data. The contact person at Greenpeace was in all cases Christine Busch. The interview with her lasted approximately 60 minutes and we got a lot of information about Greenpeace's fundraising efforts. The guideline we had developed in advance of the interview can be found in the appendix C. It has to be noticed that even if the questions were formulated in detail, they were not posted one after another. They just served as a checklist that we did not forget an important question we wanted to ask.
Occupational background of the interviewee Christine Busch is fundraising assistant and works for Greenpeace since 1992. Although she never did a fundraising apprenticeship she is now ranged second in the hierarchy of the ten headed fundraising department. She entered Greenpeace as a foreign language correspondence who already worked as a volunteer for non-governmental organizations during her studies. In reason of that she had the ability to fulfil her dream and work for Greenpeace.
Facts about Greenpeace Greenpeace was founded 1971 by peace activists in Vancouver. The German office exists since 1980 and 211 people were employed by it in 2006. Greenpeace Germany has 550.000 sustaining members and received donations to the amount of 39.98 mill. € in 2005. Greenpeace has offices in more than 40 countries and conducts actions and campaigns in the whole world. Their purpose is "to point out environmental problems in the whole world in a creative and peaceful way in order to achieve solutions. The aim is a green and peaceful future for the world and the life on it in all its diversity."100 Christine said that this definition about Greenpeace is still valid. The offices in the different countries are formal independent but get help and are also controlled by Greenpeace International. Nevertheless, each office is responsible for the marketing, fundraising and communication activities itself. The given reasons for this
100
Brown, M. & May, J. (1991), The Greenpeace Story.
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Empirical Findings
structure are at the legal terms and conditions are different in all countries, and that the wealth situation of the population in different countries cannot be compared. Examples for these explanations are that collection authorizations only exist in Germany and that in countries as Russia or Brazil a few contributors have a higher part in the total of summation of donations because of a smaller middle class. To stay independent, donations of more than 250 € are handled individually to secure that they are not coming from companies, political parties, or persons who have powerful positions in corporations or policy. Furthermore, all donations that are bound to conditions, for example by an annotation "only for the whales", are denied if the donator insists on the specific purpose. Otherwise the pressure only to be active on certain fields could be too high.101
Fundraising in Germany By reason that Greenpeace does not take any money from governments, industries or political institutions it relies heavily on fundraising. 95% of their income comes from donations, either from sustaining members or one-time contributors. Despite the high importance of donations the sustaining members are not only needed for financial support. Greenpeace wants the supporters to be active in campaigns, to send mails to politicians and industries, to demonstrate or to block out companies who are not acting in accordance with the interests of Greenpeace. The average donation is 70 €. Donations of less than 100 € build 73.2 % (29.26 mill. €) income, while the ones of more than 500 € compose 2.5 % (1.01 mill. €). Heritages contribute 3.21 million Euros (8%) to the income. Out of one donated Euro, 87 cents are used for campaigns and information issues, 9 cents for administration and 4 cents to secure further donations, which mean they are used for fundraising. The key condition for any of the marketing campaigns is that the activity has to be cheap and that Greenpeace is able to measure the return on investment on every single fundraising campaign. For example, when advertisements in newspapers are done, Greenpeace always attaches a postcard the receivers of the message can use to respond. Thereby Greenpeace can measure how many people they have reached with the certain campaign and how much money is generated from these new supporters. In some cases Greenpeace Germany benefits
101
Wallmeyer, G. (1996), Der Scheck als Stimmzettel - Ziele und Methoden des Fundraising. In: Greenpeace (1996), Das Greenpeace-Buch: Reflexionen und Aktionen.
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by the use of the back sites of advertisements by ordinary companies, and in fewer cases also by space in newspapers and magazines that is donated by the publishers. In contrast to the low cost approach, the most successful campaign ever done was an expensive telephone campaign. In advance of the currency changeover all 550.000 sustaining members where called and asked if the want to round up their supporting contribution in order to make it even. 80 percent of the members did so. However, there has also been one campaign which totally failed. Greenpeace tried to corporate with Felicitas in the 90ies. Felicitas is a joint project of several brand manufacturers that visits families with newborns in order to convince them to buy highquality healthy products for the children and themselves. But the speculation that these families are likely to become sustaining members was wrong so that a lot of leaflets could be thrown away when the cooperation was ended after a few years. In order to measure if a single advertisement was successful Greenpeace evaluates the amount of new donators they have gained by each advertisement. This is possible due to the postcards which are part of the ad in the newspapers. As long as the new sustaining members pay back 75 % of the campaigns cost within one year, the specific newspaper is judged as good to do marketing in. This 75 % rule can also be described as a return on investment borderline of 0.75.
The use of professional marketing agencies Greenpeace Germany only uses professional agencies for direct dialog marketing, namely for information desks in shopping malls and pedestrian areas where professional try to convince people to become supporters. The other tasks for which an agency is used are layout and organizational issues of advertisements on homepages. But even if agencies are involved, the ideas and strategies are always developed by Greenpeace itself. According to Christine there are some rotten apples in the market of agencies so that Greenpeace supported the foundation of an agency and is now working together with it. A woman who worked in the past as volunteer for Greenpeace and had knowledge in marketing was supported to start her own business and is still the owner of the only agency Greenpeace Germany is using. The advantage of this approach is that Greenpeace has influence on the payment policy of the agencies employees and the social image according to an appraisement of Christine Busch.
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Chapter 5 Spreading of the expenditures
Empirical Findings
Greenpeace Germany spent 40.8 million € in 2005. 7.7 million Euros (18.9 %) were used for communication, 1.1 mill. € (2.7 %) for administration, 1.7 mill. € (4.2 %) for advertising, while 15.4 mill. € (37.9 %) were used for campaigns and information in Germany, and 12.4 mill. € (30.5 %) for international campaigns and provision of information. The 7.7 million Euros of the communication area were spend as follows in 2005: Greenpeace News 1.3 mill. € (16.9 %), care for sustaining members 2.8 mill. € (36.4 %), and information (as leaflets, billboards, movies, commercials and documentations) 3.6 mill. € (46.7 %). Under advertising fall activities such as activities as mailings, legacy brochures, information desks, adverts in print media and acquisition of new sustaining members. Christine stated that the fundraisers of Greenpeace Germany use 40% of their budget for the acquisition of new sustaining members, and spend the rest for information about campaigns and activities. But it has to be pointed out that a payment form is included in the "action- letters" the sustaining members get four or five times per year in order to be informed about actual environment topics and activities Greenpeace is doing. The budget of the fundraising departments amounts to approximately 5 million Euros per year. It has to be mentioned that fundraising is not mentioned as a separate area in the annual report; it is split into campaigning, communication and advertisement. The main part of the budget for acquisition of new members is used for information desks in the streets (90 % of the budget) where professional advertisers try to convince people to support Greenpeace Germany in a direct dialogue. The remaining 10 % are on the one hand spent for advertisements in newspapers and big magazines and on the other hand for letters to people whose addresses Greenpeace bought from publishing companies.
Developments in the last years The income of contribution and donations decreased from 41.54 mill. € in 2004 to 39.98 mill. € in 2005. Thus, reserves of 0.8 m ill. € had to be used in 2005 in order to finance the expenditures. In 1995 the income was approximately 35 mill. €, and in 2000 33 mill. €. In spite of the reduced income in 2005, Christine said that the fundraising budget itself increased in the last decade every year because it is much more difficult to generate donations. According to her the reason for this is that the German government reduced and reduces the expenditures for social services, welfare and other support of voluntary organizations. These organizations and the churches which have financial problems now also try to generate bounties. Therefore, the pressure in the fundraising sector has increased. A
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Empirical Findings
second problem according to Greenpeace is that emergency aid got a higher importance in the recent years in general and many people redirected their donations towards tsunami aid or earthquake victims. While the information desks in the streets are nowadays the main method for gaining new donors, it was different until 2003. The origin of all fundraising efforts from Greenpeace are mailing to addresses bought from publishers. This direct marketing to newcomers was the main activity area until 2003. "There are two reasons why this tool is not that efficient anymore", explains Christine. "The first one is that the people do not react to mailings any more in the same extent they did before and the other one is that publishers do not sell their addresses any more."
Self-evaluation Greenpeace describes itself as a believable organization. The reasons mentioned in the annual report for this judgement are their financial transparency and that they mention to which corporations they are related to. Examples of relations are "Greenpeace Media GmbH" and "Greenpeace Energy eG" in which Greenpeace Germany has a holding in. Furthermore, Christine mentioned that Greenpeace still regards itself as having a unique portfolio of ideas and an unique focus, so that they have less direct competitors in their area of action. In her opinion the only organization in Germany with a comparable orientation is the BUND.
Evaluation of the public opinion While the opinion of the sustaining members is evaluated by random phone calls among them, no evaluation of the public opinion exist. The reason is that the acceptance of marketing efforts of the public is not regarded as being different from the one of the persons who are already sustaining members. Furthermore, in accordance to Greenpeace there exist studies of the acceptance of specific media channels. The proscription of collecting money at the front door in Germany, while it is accepted in Sweden and The Netherlands, is mentioned as an example. The opinion of volunteers is judged as high important and the volunteers are therefore informed in advance of special fundraising activities in their region.
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Chapter 5 Guerrilla Marketing
Empirical Findings
The Greenpeace representative says that she has heard the term 'guerrilla marketing' but does not know what it is. After a description of the term she mentioned that the fundraisers and marketers do not use these techniques, but the activists do so without calling it 'guerrilla'. An increasing importance of the topic for Greenpeace within the next five years is denied.
Assessment of future developments An increasing competition on the German fundraising market is expected for the future. The position of Greenpeace is estimated as good by itself because according to Christine the environment is becoming more important in the peoples' minds. In order to benefit from the high media coverage the organization is obtaining by its activities, a closer cooperation between the activists and the fundraisers / marketers is planned. Furthermore, the importance of the Internet for gaining donations is judged as increasing.
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Analysis
6. ANALYSIS
In this chapter the chosen theories are implemented to the empirical findings of the questionnaire and the interview with the representative of Greenpeace Germany.
Before the findings of the questionnaire are analyzed the demographic background of the respondents has to be taken into account. As visible in the tables five till ten in the empirical findings, the interviewees come from several demographic groups and there is no dominating type of persons. Thus, it is proven that this thesis is not based on a single group of the population, but takes several classes of the society into account. That is the reason why we can generalize and call our research group representative for "the public".
6.1 Non-Profit Organizations
Although there are several types of non-profit organizations existing according to the ICNPO (see table no. 4) the respondents mainly named organizations out of four groups only. These are in specific for group 5 "Environment" Greenpeace, WWF, IFAW and the BUND. The Red Cross, Doctors without Borders, UNICEF, IQ, WHO and Malteser Hilfswerk are the ones come under group 3 "Health". The out of group 4 "Social Services" mentioned organizations are The Red Cross, BRIS, Humanitas, CliniClowns, SOS Children Valleys, World Vision, Caritas, Misereor, Brot für die Welt and the United Nations. The seven most mentioned organizations which were Greenpeace, The Red Cross, Amnesty International, UNICEF, WWF, IFAW, and Doctors without Borders work all on an international level and therefore fall in category group 9 "International Activities".
It is remarkable that the majority of the organizations named by the respondents are working internationally. This was not due to our focus to three different countries because the international operating organizations were even mentioned the most in each separate country. Furthermore, four of the five most supported NPOs by the respondents are acting on an international level. Only the organization ranked on place four, the BUND, is only active in Germany. Finally, the respondents who stopped supporting a NPO mainly backed out from the global ones. It is obvious that organizations with more supporters are more likely to loose some of them and furthermore, if people wants to support local projects instead of international ones 61
Chapter 6 [this was the top 3 answer], only global NPOs are likely to loose support. The fact that
Analysis
Greenpeace is ranked first in the list of support loosers is interesting because the fundraising assistant of Greenpeace Germany mentioned the environment was not in the focus of the people in the last years but is nowadays gaining back some importance. But nevertheless, the amount of support will not increase by itself. The representative herself said that the competition on the fundraising market is increasing. That the respondents are thinking about global organizations when it comes to NPOs supports the focus on global organizations of this thesis. This has to be mentioned because if the interviewees would only think about regional organizations, the later answers to questions about the marketing of NPOs would not fit to our research approach.
When it comes to the knowledge about non-profit organizations the public knows not only which NPOs exist, but also in which field the specific one is active in. The knowledge about NPOs can be explained by the high amount of people who are interested in them. Almost three quarter of the respondents are interested in non-profit organizations, and even from the most mentioned reason why people are not interested in NPOs "because they only do what governments should do" one can conduct that there is knowledge about these organizations. The high interest in NPOs is also reflected by in the amount of interviewees who support or have supported a non-profit organization. 57.3 % support NPOs because non-profit organizations "help people who live in worse conditions", "it is easier for NPOs to help them as to do so on one's own" and because "the organizations have more penetrating power". On the other hand there are also reasons given for not supporting an NPO, even if some interviewees were interested in them. These are that NPOs spend too much money aside their core field of activity and the CEOs earn too much money.
6.2 Marketing and Communication of Non-Profit Organizations
With regard to the basic model of communication by Belch and Belch (see figure no. 6) the non-profit organizations are the source of the communication messages and the public is the receiver.
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Analysis
When a specific NPO wants to send a message to the public to achieve one of the three goals fundraising, volunteer or spreading their message, the organization has to take into account how the message has to be designed in order to fit the public expectations towards marketing used by non-profit organizations. According to the respondents honesty (84.5 %) and openness (71.8 %) are the most important criteria the organizations have to fulfil in their marketing behaviour to get support. The answer that "a quick response to arisen questions" is needed (17.5 %) is also a criterion similar to the two ones above. All these three expressions show that the importance of a clear and open way of communication is higher than only to communicate on a low cost level. Only less than one third of the interviewees said "the money should be used for activities, not for bureaucracy" (28.2 %). Apart from the communication behaviour of the NPO with the public, also the content of the message and the aim it wants to achieve matters. According to the public the two most important objectives for non-profit organizations to be achieved by marketing are "spreading their ideals and messages" (45.1 %) and "fundraising" (35.3 %).
Belch and Belch point out that the chosen channel for sending the message determines how the receiver perceives the messages and how he has to decode it to understand the intended meaning. The attitudes of a person towards a certain channel influence at first the decoding process, secondly the judgement of the content and finally the way the receiver responses and gives feedback to the NPO. 94.2 % of the interviewees are annoyed by the use of phone calls for marketing efforts, 68.9 % by emails and 46.6 % by brochures thrown in mailboxes. The channels the respondents are less annoyed are billboards in the streets (3.9 %), advertisements in newspapers and magazines (4.9 %) and commercials on the radio (6.8 %). But when we compare this with the answers that our interviewees gave to the question which marketing efforts by Greenpeace, Doctors without Borders, the Red Cross or Amnesty International in which channel they remember, letters were remembered most (29.6 %). Nevertheless, the respondents also keep in mind messages which were sent to them through channels they are not annoyed of. Advertisements in newspapers were remembered by 20.4 % and billboards and postcards included in magazines/newspapers with 14.8% both. Finally it has to be noted than 47.6 % did not remember any marketing effort by the mentioned organizations.
The trend towards a high awareness of letters, newspaper advertisements and billboard is only partly visible for other NPOs than the four mentioned ones. 30.1 % of the participants knew marketing expressions by other NPOs. 29.0 % of the ones who did so, mentioned articles in 63
Chapter 6 regional newspapers about several local organizations. Different to the remembrance of efforts by the four above mentioned NPOs is that 38.8 % of the interviewees who knew
Analysis
expressions of other organizations named several TV commercials. This amount results from the naming for IFAW (22.6 %), World Vision (6.5 %), IQ (6.5 %) and BRIS (3.2 %). It is notable that the 29.0 % who remembered the articles in media perceives them as marketing. According to the American Marketing Association these less controllable announcements are called publicity. Furthermore, we have to mention that the respondents in the case of remembering marketing expressions regard local sports clubs and churches as non- profit organizations because this is in contradiction to the answers they gave to the question where they had to name five organizations that are active in their country. There mostly global acting NPOs were mentioned.
Nevertheless, that people remember a marketing effort does not implicate that they also like it. 70.4 % of the people who remembered an effort from the four global NPOs did not like it. The reason were "because it was nothing special, just ordinary" (68.4 %), "has been the same for years" (13.2 %) and "the message was about donating money" (10.5 %). The two persons who liked the spot said they did so because "they were emotionally touched". The influence of recognition of a marketing campaign is that 11.1% of the people who experienced a marketing expression donated money after it. Remarkable is that four of the six persons who donated money did it because "they felt bad and had compassion". One of these persons even stated that he did not like the campaign, which is an example that at least some people support a non-profit organization if they do not like the marketing campaigns. Though 66.6 % of the persons who donated after a campaign had a bad compassion does not mean that the organizations act in accordance with the 'press agency model' by Grunig (see chapter 4.3.1.3) in which causing emotional appeals and hoodwinking are major elements to create income. Visible in the Greenpeace Germany example [phone calls], but not only done by this certain organization, the NPOs do research on the donators interests. It is questionable if the fact that Greenpeace Germany wants to get the sustainable members involved in writing to politicians and boycotting companies which are doing environmental unfriendly business can be called as a serious partnership where the donors are collaborators rather than repositories of money. According to Kelly (see chapter 4.3.1.3) this model is the optimal one, but dominant is still the one in which donors are just the disposers of money. The reason for
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organizations are doing. Who is able to fly to Africa and help children who suffer from hunger and who is willing to risk ones freedom by participating in activities which not always stay within the regular framework? Furthermore the most global organizations are not directed to organize the active involvement of people. This is mentioned by the Greenpeace representative.
Regarding the feedback people give to the NPO, Greenpeace Germany has a borderline when a specific advertising campaign or communication channel is not going to be used any more. Thereby that a lot advertisements in magazines and all letters sent out have a postcard to be taken out and returned in order to subscribe as sustaining member, punish a company or to demand a change by a politician, Greenpeace is able to evaluate the feedback of each conducted campaign. In the case of acquiring donators, the ROI of a fundraising action serves as the guideline for future campaigns. The borderline is around 0.75 which means that the specific activities should contribute a donation return of 75 % of its costs within the first 12 months after the activity was done.
Ojasalo presents a dynamic model of expectations which occur during a relationship (see figure no. 7). Greenpeace Germany evaluates the satisfaction of the sustainable members by phone calls. The called members are randomly picked out of the database and asked how they judge the undertaken campaigns of the last year, the information provided by the organization and what they expect from Greenpeace in certain areas in the future. These calls therefore serve as evaluation of the realistic and unrealistic expectations existing among the sustainable members. Unrealistic expectations, like that 100% of the donations are used for activities, can thereby be evaded. It is not possible to fulfil the unrealistic expectations and according to the model Greenpeace should try to change those in realistic ones. By reason that Greenpeace is not focussing on satisfying individuals but on fulfilling the wishes of the majority of their supporters and the organizations aims, unrealistic explicit expectations are mostly removed. Cheques and donations which have a specific purpose of use are either not accepted or the donator is asked to accept a general use for Greenpeace's activities. The reason is that the organization cannot guarantee that the money is use for this specific action and also does not want to be dependent on certain donators for specific projects. The realistic expectations non- profit organizations have to be aware of and implement to their behaviour are honesty and
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Analysis
Nevertheless, there are also implicit expectations existing. There are always things which are taken for granted by the public but the NPO is not aware of. The phone calls of Greenpeace to their sustaining members can be identified as a way to try to put these implicit expectations into explicit ones.
Relationship between expectations and donations A person's expectation of a non-profit organization is influenced by prior experience and personal background as well as of word of mouth communication (see figure no. 8, transformed BaronEpel model). The model of the relationship between donor's expectation, satisfaction and future donations can also be used for persons who have not supported a NPO yet. 57.3 % of the respondents had prior experience because they supported a non-profit organization. These persons mentioned several reasons how they choose or have chosen the NPOs they support. Newspapers and TV reports about campaigns the organizations are doing are an important information source because they form a picture of the organization in the people's mind. Media coverage about "help the organizations provide and about recent activities" was the top answer to the question how NPOs to support are chosen. These impressions by media are completed by marketing expressions of the certain non-profit organization and word of mouth from other people about the organization. If all these information have the same underlying meaning and the thereby formed picture fits to the individual beliefs and the individual attitude of a person, he is willing to support the NPO. According to our respondents, news coverage is the main source for selecting the NPO one wants to support. Information desks in the streets where the respondent had direct face-to-face contact was the second source, while statements by friends (so called word of mouth) and information found in the Internet complete the most mentioned answers. After becoming a donor the evaluation process is not finished. The donor continuously evaluates the relationship between him, his personal expectations and the non-profit organization. If the contributor is dissatisfied with the NPO itself or with the relationship with the NPO, he can decide to stop or decrease the amount of support. Another possibility is that the donor moves to another organization. This behaviour is reflected in the answers of the questionnaire. It was the second most mentioned answer by our respondents to the question
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interviewees was "problems within the organization". These are improper use of money, stealing, and personal disagreements. If the degree of satisfaction with the organization is not decreasing and the personal expectations are perceived as being fulfilled by the NPO, the donator is likely to continue donating.
6.3 Public Judgement of the Use of Marketing by Non-Profit Organizations
After the focus in chapter 6.2 lay on the expectations of the public and the awareness of existing non-profit organizations and its marketing efforts this chapter deals with the public judgement of the use of marketing for NPOs in general.
The starting point for a deeper insight is if the public thinks it is good that marketing is used by non-profit organizations. A clear majority opinion does not exist as can be seen on the 56.3 % of the respondents who said "it is good", while 41.7 % think "it is not good". This answer is in contradiction to the results of the question what the interviewees think about NPOs which spend money for their marketing. Though 41.7 % said that it is not good that NPOs use marketing, 71.8 % gave the feedback that "it is okay that NPOs spend money for it. A reason for this contradiction can be the formulation of the two pre-given answer possibilities which had to be completed by the respondents with reason for their judgement. While the possibilities for answering the question if marketing is good were "good" and "not good" the ones for the expenditure of money were "okay" and "not okay". Nevertheless, the given justifications for both questions are very similar. 53.4 % of the participants who marked the "good" possibility and 48.6 % of the ones who marked "okay", state that NPOs have to inform the public of their existence and their activities. A closer look on the "not good" answers reveals that money is the main reason (44.2 %) why marketing is judged as not being good for NPOs. The explanations than can be found in the "it is not okay that non-profit organizations spend money for marketing"-answers. "Money should be spend in a more useful way" (55.6 %), "marketing is a waste of money for NPOs" (33.3 %) and "marketing does not fit to NPOs" (11.1 %) are the explanatory statements of the people who think that it is not okay that non-profit organizations spend money for marketing.
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But if non-profit organizations spend money for marketing almost all interviewees (96.1 %) agreed to the statement "the NPOs have to communicate this in a clear way towards their financial supporters". The most named reason is that "people have the right to know how the donate money is used by the NPO" (81.8%). Seven respondents would even appreciate more information, apart from the annual report, of how money is used. One interviewee suggests that every donator receives specific information for which purpose his or her money is used. It has to be mentioned that this wish would require more organizational work which would increase the administration costs and according to Greenpeace Germany it is even impossible to identify whose money have been used for which purpose. Furthermore, it could also increase the dependency on specific donators for certain activities. The opinion towards clear statements of the use of money is supported by the already mentioned importance of openness and honesty NPOs need to fulfil in their marketing area in order to receive donations.
Concerning the development of marketing and communication by NPOs in the last years, three out of four respondents (75.7 %) confirmed that non-profit organizations are more active nowadays. It is visible that this judgement is based on feelings and impression and cannot be explained by the respondents with reasons. Only four people gave an explanation, but these were not specific. Nevertheless, the origin for the people's assessment can be found in the judgement that "NPOs act more like for-profit organizations in the marketing area", which was made by 76.2 % of the respondents. The two major answers were that "there is more marketing around NPOs" (42.9 %) and that "NPOs use the same methods than the for-profit ones do" (33.5 %). Interesting is that 16.7 % of the deniers state that NPOs are not that professional as for-profit ones in the marketing area and another 25 % said that NPOs do not use professional advertising agencies. The major opinion that NPOs are acting like for-profit organizations could already be identified in the explanation "NPOs are just like for-profit organizations" which was given by 20.7 % of the people who think that it is good that NPOs use marketing on the question "It is good that NPOs use marketing?".
Though 75.7 % said that the use of marketing by NPOs increased in the last years only 23.3 % recommend that non-profit organizations should increase their marketing and communication activities in order to "inform the public in a better way about their activities" and for the
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purpose of "profiling themselves better and more clear". This supports the wish for openness and information. The reasons why NPOs should not increase their efforts any more are that "they are already active enough" and that the people "do not want more money to be wasted in marketing and communication". Also the third reason "the money should be used for actions and relief" has a financial character. The issue money was in addition the most important reason why the interviewees did not like marketing done by a NPO as mentioned before. Nevertheless, the use of professional marketing agencies - which get paid by the NPOs and thereby take some of the organizations' financial resources - is not a reason for the majority of the public (73.8 %) not to donate any more. However, it very important to note that 23.7 % of this people restricted that not too much money should be spend for the agencies. This restriction even has a stronger value because it was made as an explanation why people also donate if the NPO is using marketing agencies not as an answer to a question of what the NPOs have to be aware of if they use the agencies. Furthermore, 42.3 % of the people who would not donate money if the NPO uses a marketing agency (25.2 %) justify this with "professional agencies are expensive". Here the request that the donated money is used for actions and activities instead of for something else is visible.
6.4 Guerrilla Marketing
The focus of this thesis does not only lie on the public attitudes towards marketing and communication in general, but also on guerrilla marketing and its future importance in the overall marketing mix of a non-profit organization. The non-existence of a clear definition in literature even if there is an agreement of several authors on the main characteristics - is reflected by the knowledge the respondents have about guerrilla marketing. Nearly two third of the participants in the questionnaire have never heard about it and among the remaining third who did so, thirteen different descriptions existed. The majority explanations were that guerrilla marketing "lies beyond the usual/common meanings of marketing" and that "it is not common". These people did not explain in detail what "uncommon" means to them but when the view is directed to the less often mentioned answers one can see that the use of "hit and run tactics", "marketing on a low budget" and "spontaneous / surprising marketing" where "people to do not expect to be addressed" form the public definition of guerrilla marketing.
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Nevertheless, the imprecision of the understanding has also to be mentioned. Apart from the further explanations that guerrilla marketing is "very aggressive", "uses humour" and "contravenes the law", which can at least to some extent also be found in literature, two persons gave explanations which do not meet the characteristics of guerrilla marketing. These two were "marketing towards people who are interested in weapons" and that "the prize is minimized in order to get a higher market share". Though an explanation of what guerrilla marketing is was given by the authors of this thesis after the question in which the respondents had to define it by themselves, in order to make it possible for all participants to fill out the further questions about guerrilla marketing, one has to consider the variety of the persons' descriptions when the profound questions are analyzed. Furthermore, according to Belch and Belch (see figure no. 6) the interpretation of our description also depends on the individual decoding process of the participants, which also affects the feedback of the interviewees. The given explanation by us was: "Guerrilla marketing is unconventional way of performing mostly promotional activities by the use of hit and run tactics, sometimes on a very low budget, intended to get maximum results from minimal resources. Such promotions are sometimes designed in a way that the target audience is left unaware they have been marketed to and may therefore be a form of undercover marketing (also called stealth marketing). The ethics of guerrilla marketing have often been called into question due to an alleged deceptive, misleading, or subtle nature of the campaigns."
After the description was presented, 56.3 % of the interviewees evaluated guerrilla marketing as a good tool in the marketing strategy of NPOs. This amount has to be highlighted in detail, because exactly the same amount of persons responded that marketing should be used by NPOs before. Though it is not sure that the same people gave both answers, the aims for which marketing respectively guerrilla marketing should be used can be compared. The interesting results of this comparison is that only 10.7 % of the respondents think that guerrilla marketing should be used for fundraising, while 35.3 % of the interviewees think marketing in general should be used for this aim. In contradiction it is the other way round for the task to "spread the message". 62.1 % evaluate guerrilla marketing as being useful for it, while only 45.3 % of the respondents agreed on this task of general marketing. The reasons for these differences are already visible when the explanations why guerrilla marketing is good are considered. 22.4 % of the interviewees mentioned that "it is easier to spread a message for an idea of a NPO than for a normal product", and this product is in the 70
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case of a non-profit organisation the sustainable membership. Furthermore, the top reason (29.3 %) for the suitability of guerrilla marketing for NPOs given by the public is that it "is different" and will generate "more attention" and finally "will be better remembered". This is in accordance to the earlier given explanations why the interviewees do not like the marketing expressions they remembered from Greenpeace, Doctors without Borders, The Red Cross and Amnesty International, where 68.4 % stated that the expression was "nothing special, just ordinary" and 13.2 % mentioned that "it has been the same for many years". Finally, the "annoyance of marketing in the traditional way" is cited as reason for using guerrilla marketing by 13.8 %.
Nevertheless, when one takes a closer look on the reasons which were given by the interviewees on the question why guerrilla marketing is not a good tool for NPOs, it becomes apparent that a too positive consideration of guerrilla marketing is not advisable. 41.9 % of the deniers stated that NPOs "should be open and honest about what they do on not hide themselves" and another 11.6 % mentioned "guerrilla marketing will harm the transparency of the NPO". Two of the former reasons why marketing should not be used by non-profit organizations are also used to deny a suitability of guerrilla marketing. These explanations are in specific that "marketing and NPOs do not fit together" (16.3 %) and that "it is a waste of money even if it is guerrilla marketing" (14.0 %). The explanatory statement that "marketing and NPOs do not fit together" is also given by 20.6 % of the respondents who stated that guerrilla marketing cannot be used in all segments of NPOs, what is the opinion of 33.0 % in general. The "likelihood of guerrilla marketing to lead to negative feedback because it is less serious and has an unreliable touch" is the major reason (58.8 %) for the interviewees to deny suitability in all non-profit segments. Furthermore, another reason that has been made by the respondents (17.6 %) and is also supported by Hospes and confirmed by Greenpeace Germany is "that the segments the NPOs are acting in are different" and each organization has its own profile. Therefore the interviewees stated "the guerrilla marketing activity has to fit to the profile of the non-profit organization but sometimes does not." In addition, not all participants who approved the use in all segments (64.0 %) did it without any restrictions. 31.8% mentioned "guerrilla marketing is an option" but because of the differences between the organizations "not all guerrilla activities are suitable for each NPO". The major reason why guerrilla can be used in all segments is that "it is cheap" (42.4 %). This answer represents on the one hand that money is still of high importance, but on the other hand the high percentage could also be an outcome
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Analysis
Finally, when the interesting aspects of guerrilla marketing for NPOs had to be described by the interviewees, the two most often mentioned answers were also at least partly be tangent by the explanation of guerrilla marketing given by the others of this thesis. 28 % of the respondents wrote the "possibility for low costs" is the most interesting aspect, while 17.1 % stated "spread of the message in a way that the audience is not recognizing that it is marketing". It has to be mentioned that this explanation disagrees the demand for openness and honesty which were the main tasks a NPO has to fulfil in order to receive donations. Nevertheless, there were a lot of explanations given by the interviewees which were not able to be found in the given description of guerrilla marketing. These main ones are in specific the "surprise factor" (15.9 %), the possibility that "NPOs become 'hip', 'hot' and 'in' by using guerrilla marketing" (8.5 %), "that it gets high attention" (7.3 %) and that "people will talk about it" (6.1 %). According to Mardsen & Kirby (see chapter 4.3.3) the aspect that people will talk about it can be seen as "live peer-to-peer marketing", which is a category of buzz marketing. The high importance of a buzz and attention the organization gets in the media was confirmed by the representative of Greenpeace Germany. On the basis of the Greenpeace example it is visible that even organizations which in their own option do not know what guerrilla marketing is, use the tactics. The Greenpeace activistsuse these tactics but the campaigns are not connected to a fundraising appeal. Though the fundraising assistant denies that the use of guerrilla marketing for fundraising and marketing efforts will increase within the next five years, the perception of the use by the audience is likely to be changed. As a result of the weak interlocking between the campaigns and the fundraising efforts, the Greenpeace' fundraisers try to convince the activists that there has to be a stronger relation of the two divisions in order to use the media coverage of the activities for fundraising efforts. An outcome of this consideration could that the perception of the use of guerrilla tactics for fundraising increases, and thereby the use disagrees with the demand for openness and honesty.
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7 . CO NCL US I O NS
In this chapter at first the results of analyzing the questionnaire and the interview with Greenpeace Germany are presented. Afterwards we critically reflect our own thesis and describe the weaknesses and parts with could have done better. Finally, this thesis closes with the recommendation of areas of the marketing by non-profit organizations in which further research might be interesting.
7.1 Results
The main objective of this thesis was to evaluate the public attitudes towards the increasing use of marketing and communication by global non-profit organizations. To achieve this we conducted a survey with 103 persons and an interview with Greenpeace Germany which provides us an insight into an organizations marketing, communication and fundraising efforts from an organizational perspective.
Before we deal with the main conclusions of our research focus a few more general ones are presented. The first thing that can be said is that the public has organizations which act on a global level in their mind when being asked to think of NPOs. Furthermore, the public is interested in non-profit organizations and their activities.
The public is annoyed by phone calls, emails, and flyers thrown into the mailbox. A closer look to this result shows that marketing and communication channels, where the single person has no chance to decide if he or she wants to receive the message, are bothering the most.
The major reasons for a negation of the use of marketing in non-profit organizations are money related. Nevertheless, the use of professional marketing agencies is accepted by the majority of the public. However, an increase in the use of marketing is not judged as being necessary because the public perception is that there is already enough. This can be explained by the public perception that non-profit organizations are more active in marketing than in the past and that they use the same methods and techniques as for-profit organizations do. Nevertheless, the provision of information is demanded to a large extent in order to fulfil the requirement of being transparent.
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These circumstances, and the aims non-profit organizations should try to achieve with marketing mentioned by the respondents, lead to the major conclusion of this thesis. The objectives for which resources should be used in the marketing and communication field are in specific spreading of the message and fundraising. The final conclusion is that the public accepts the use of marketing and communication, and the therefore necessary expenditures, in NPOs as long as it is done in an open and honest way. Money is considered as being less important than openness and honesty.
Guerrilla Marketing Concerning guerrilla marketing the first result of our research is that the public do not really know what it is.
Though the majority of the people who do not like the marketing expressions reasoned this with its uncreative and conventional nature of being boring and nothing special; one should not recommend an unrestricted change towards the use of guerrilla techniques in the marketing mix. The demand for transparency has to be kept in mind when the amount of persons who think that guerrilla marketing is a good tool to be used by a NPO is regarded. If the use of guerrilla marketing tactics would increase, the level of openness and honesty is likely to decrease and would thereby affect the general acceptance of the use of resources for marketing and communication negatively.
As a result of the perceived advantages and disadvantages regarding the use of guerrilla marketing by non-profit organizations, there is no clear answer to the question if guerrilla marketing is as good tool for NPOs or not. Nevertheless, the majority of the public judge guerrilla marketing as being suitable for all segments of non-profit organizations as long the activities fit with the profile of the specific NPO.
Furthermore, the public assess guerrilla marketing as appropriate for spreading the message, but not for fundraising issues.
An explanation made by one respondent on the question "what the most interesting part of guerrilla marketing is" was "guerrilla marketing is especially suitable for NPOs because it is a rather cheap way to spontaneously address people with actions, which they will remember. As NPOs have rather ideas/moral to 'sell', those guerrilla marketing promotions are good
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ways to touch people emotionally and catch their attention. It is necessary that the actions stick out from new commonly used information stands and leaflet distribution in pedestrian areas." This statement fits at least partly to the results of the questionnaire which lead to the final conclusion of this thesis: Guerrilla marketing should only be used by non-profit organizations in order to spread the message and increase the media coverage. The use of guerrilla activities for other purposes, especially fundraising, is incompatible with the requirements of openness and honesty, and therefore not recommended.
7.2 Recommendations for Non-Profit Organizations
The main recommendation of this thesis is that non-profit organizations have to be open and honest in the marketing and communications expressions and in the messages sent to the public. Not only the persons who donate money expect to be fully informed of the use of money and the undertaken activities, but also the general public. The recommendation therefore is that the organizations are more specific in their statements of how their financial resources are used. Only statements in the annual reports where all activities are summed up and an aggregated sum for each departments is presented, is not enough. Doubtless, the increase in providing this information needs more resources and will increase the administrational costs of the organization. Some ideas that the public purposed, as example receiving a letter what had been done with their specific donation, are mostly not able to been fulfilled. But it should be a first step for the global non-profit organizations to make monthly financial statements. Organizations that act more on a project basis could also announce the specific costs for the finished ones. Nevertheless, one always has to consider that the information is not only available for the general public, but also for the opponents against who the projects are directed.
Furthermore, the NPOs should evaluate the perception of themselves by the public in order to be able to fulfil the specific expectations concerning their financial, organizational and ideological behaviour.
The organizations have to take the attitudes of the public towards certain communication channels in consideration. Even if the Internet is assessed as becoming a more important 75
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source for donations in the future, the organizations should not increase or start to use emails for fundraising efforts. The public is annoyed by messages they receive through this channel.
With regard to guerrilla marketing the recommendation is that is has to fit to the profile of the non-profit organization in order to be used as an instrument which helps to spread the message in the media, the so called buzz, and create a word of mouth among the public.
7.3 Reflections
In this subchapter we try to describe the weaknesses in this thesis, even if it is not always easy to see the shortcomings in one's own work. The first thing we have to mention is that we thought it would be easy to get access to several global non-profit organizations in Sweden. Our opinion that they will be willing to present their work more likely than for-profit organizations was not verified when we contacted the organizations. We were too optimistic and lost time which we could have used in a more productive way if our focus had been lain on the public earlier. Concerning the questionnaire, we recognized that the questions could have been structured into more different subchapters than only the three ones "personality", "attitudes concerning nonprofit organizations" and "guerrilla marketing". If we would had structured the questionnaire as we did it in the analysis, it would have been easier for the public to be aware of the coherences and also easier for us to analyze the answers. Furthermore, the description of guerrilla marketing presented in the questionnaire could have been specified with examples in order to help the interviewees to understand the term in a better way. In addition, that almost two third of the people did not know the meaning of guerrilla marketing before they read our explanation made it more difficult to judge the answers they gave to the following questions, but we still think that the answers are reliable. The reasons for this assessment are that one third had knowledge in guerrilla marketing and that the given description included both positive and negative aspects.
Despite the above mentioned weaknesses, we have the opinion that we answered our research question about the public attitudes towards the increasing use of marketing and communication by global non-profit organizations and that our results are valid and reliable. 76
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7.4 Recommendations for Further Research
During the literature study and during the analysis a few perspectives which are also interesting to be considered turned out. In order to specify our results a study about what openness and honesty means for the public, could be useful. In addition, as we now know of with communication channels the people are annoyed of, one can do research on why they are annoyed and which ones they recommend non-profit organizations to use.
Furthermore, a study about the division of donators in certain groups apart from the amount of the donation would be interesting and of use for the organizations. Especially, how younger people perceive non-profit organizations and how the organization can convince them to become supporters seems to be an important field to do research on in the future. On the other side, due to the obsolescence of the society it is also useful to do research in bequest marketing and especially on the attitudes of the public towards it.
The study of a specific marketing campaign of a non-profit organization is a possibility to get a more specific view on the elements and the connection between the elements included in the campaign.
We think that is furthermore interesting to take a closer look on the view on the non-profit sector from the media perspective to get an understanding how the organizations can increase their media coverage without spending more resources for advertising. When are the organizations parts of the news and why?
Finally, also internal marketing and communication seems to be an interesting field. As seen in the Greenpeace example, the different departments of the organization have unused possibilities to cooperate closer with each other. Therefore the communication between them could be investigated. "Are the messages and methods used compatible to the external ones?"
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References O'Neill, M. (2002). Nonprofit Nation. A New Look at the Third America. San Francisco, JosseyBass. Röthlingshöfer, B. (2006). Marketeasing: Werbung total anders. Berlin, Erich Schmidt. Sargeant, A. (1999). Marketing for Nonprofit Organizations. New York, Oxford University Press. Schäflein, S. (1994). Freizeit als Faktor der Stadtentwicklungspolitik und -planung. Stadtmarketing für mehr Lebensqualität. Frankfurt am Main, Universität Frankfurt IDG. Shenk, D. (1998). Data Smog: Surviving the Information Glut. San Francisco, Harper. Weisbrod, B. A. (1998). To Profit or not to Profit: The Commercial Transformation of the Nonprofit Sector. pp. 1-2. Cambridge, Cambridge University Press. Welsch, H. P. (2004). Entrepreneurship: the way ahead. New York & London, Routledge Taylor & Francis Group. Yin, R. K. (2003), Case Study Research: Design and Methods (3 rd ed.). London, Sage Publications.
Articles
Baron-Epel, O. & Dushenat, M. & Friedman, N. (2001). Evaluation of the consumer model: relationship between patients' expectations, perceptions and satisfaction with care. In: International Journal for Quality in Health Care. Vol.13, pp. 317-323. Brown, G. (1992). People, Brands and Advertising. New York, Millward Brown International. Bruce, I. (1995), Do not-for-profits value their customers and their needs? In: International Marketing Review. Vol.12, No.4, pp. 77-84. Bulla, M. & Starr-Glass, D. (2005). Marketing and non-profit organizations in the Czech Republic. In: European Journal of Marketing. Vol.40, No.1/2, pp. 130-144. Clarke, P. & Mount P. (2001). Nonprofit marketing: The key to marketing's "mid-life crisis"?In: International Journal of Nonprofit and Voluntary Sector Marketing. Vol.6, No.1, pp. 78- 91. Hall, M. R. (2005), Building on Relationships: A Fundraising Approach for Community Colleges. In: Community College Journal of Research and Practice. Vol.29, No.8, pp. 47-60. Hammack, D. C. (2002). Nonprofit Organization in American History. In: American Behavioral Scientist. Vol.45, No.11, pp. 1638-1675. Ives, N. (2004), Guerrilla campaigns are going to extremes, but will the message stick? New York Times: June 24, pg. C.6.
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References
Van der Horst, J. A. J. (2002). Markteting een wondermiddel voor non profit organisaties? In: Quanta NpM. February 2002. Retrieved April 23, 2007 from 28h ,http://www.quantanpm.nl/downloads/marketing_voor_non_profit_organisaties.pdf Nährlich, S. (2002). Was sind die und bleibt von den Besonderheiten der Non-Profit Organisationen? Eine öknonomische Betrachtung. Retrieved April 25, 2007 fromhttp://www.aktive-buergerschaft.de/vab/resourcen/beitraege/naehrlich02.pdf O'Neil, J. (2007). The link between strong public relationships and donor support. In: Public Relations Review. Vol.33, No.1, pp. 99-102. Sheehan, R. M. (2003). Fundraising Management. In: Nonprofit Management and Leadership. Vol.11, No.2, pp. 231-234. Smith, R. E. & Vogt, C. A. (1995). The Effects of Integrating Advertising and Negative Word of Mouth Communications on Message Processing and Response. In: Journal of Consumer Psychology. Vol.4, No.2, pp. 133-151. Sth. Martin, G. (2007). Council looks to reign in guerilla marketthing. In: Metro Boston, March 2007. Retrieved May 14 , 2007 from 7t ,http://boston.metro.us/metro/local/article/Council_looks_to_reign_in_guerilla_marketing/732 3.html Wallmeyer, G. (1996). Der Scheck als Stimmzettel - Ziele und Methoden des Fundraising. In: Greenpeace (1996), Das Greenpeace-Buch: Reflexionen und Aktionen. München, Beck. Watzlawick, P., & Beavin, J. H., & Jackson, D. D. (1967). Some tentative axioms of communication. In: Pragmatics of human communication: A study of interactional patterns, pathologies, and paradoxes. pp. 48-71. New York, W. W. Norton & Company.
Further Information Sourceshttp://www.blisscommunication.dehttp://www.bright.nl/top-5-guerrillamarketing Doornbos, D. P. (2006), Plan Nederland krijgt geen subsidie. Retrieved April 24, 2007 fromhttp://subsidie.blog.nl/algemeen/2006/09/24/plan_nederland_krijgt_geen_subsidiehttp://economics.about.com/cs/economicsglossary/g/nonprofit.htmhttp://www.greenbelgium.org Kuhn, T. (not dated). Conceptual or theoretical framework: Worldview or 'Paradigm'. Retrieved April 9, 2007 fromhttp://www.holisticeducator.com/paradigm.htmhttp://www.marketingpower.com/mg-dictionary.php?SearchFor=publicity&Searched=1http://www.marketingpower.com/mgdictionary.php?Searched=1&SearchFor=public relations 80
References
http://www.nolo.com/definition.cfm/term/BAEAC86A-2B5A-4B59-95070F88FB82326E N.N. (not dated). Guerilla Marketing Definition. Retrieved March 21, 2007 fromhttp://www.marketingterms.com/dictionary/guerilla_marketing/ N.N. (not dated). Communication. Retrieved April 29, 2007 fromhttp://www.mindgraph.net/foundations/linguistic/communication.htm N.N. (2007). Marketing Department Priorities Often Differ From CEO's Agenda. Retrieved April 18, 2007 fromhttp://www.marketingtoday.com/research/1204/mktg_priorities_differ.htm Pitz, B. (2007), Freunde: Horst Schlämmer und Volkswagen. Retrieved May 16, 2007 fromhttp://wissensforum.medialine.de/2007/02/26/freunde-horst-schlammer-und-volkswagen/ Shields, M. (2006). TV Station's Web Revenues Doubled in '05. Retrieved March 20, 2007 fromhttp://www.mediaweek.com/mw/news/tvstations/article_display.jsp?vnu_content_id=100180 8731. Silverman, G. (2003). The Secret of Why Only Some Marketing Programs Succeed And Most Others Fail. Retrieved April 30, 2007 fromhttp://www.mnav.com/WhySucceed.htm Zentralverband der deutschen Werbewirtschaft (2006). Netto-Werbeeinnahmen erfassbarer Werbeträger in Deutschland. Retrieved March 19, 2007 fromhttp://www.interverband.com/dbview/owa/IGservsearch1.opt4middlerow?puid=2104133&pai d=184&pccat=15060&pscat=4247&purl=/zaw
81
Appendix
APPENDIX
Appendix A: Further Examples of Guerrilla Marketing by NPOs
Example one: This guerrilla marketing campaign was done by the environmental protection organization BUND in Berlin against the discharge of CO2. Balloons were put over the exhaust of cars parked in town. They show the world blowing up while the engine is running. On the balloons were written: "The world can't take anymore CO2".
Figure 10:Balloon campaign against CO2 by the BUND in Berlin. (Source: Retrieved fromhttp://www.blisscommunication.de)
Example two: In this guerrilla marketing action for Greenpeace in the United States of America magnets were placed at strategic places in the shelves of several supermarkets. The aim was to reduce the deforestation of the rain forest. The text written on the magnets was: "If you and every other household in the U.S. replaced just one roll of paper towels with 100 % recycled ones, we could save 544.000 trees."
82
Appendix
Figure 11:Magnet campaign against deforestation by Greenpeace in the United States. (Source: Retrieved fromhttp://www.blisscommunication.de)
Example three: The World Wide Fund For Nature conducted a campaign in China against pollution. A car with a juge balloon were placed on public areas. After the engine was started the black balloon blew up and the text "Drive one day less and lock how much carbone monoxide you will keep out of the air we breathe" was readable.
Figure 12:Campaign against pollution in China by the WWF. (Source: Retrieved fromhttp://www.blisscommunication.de) 83
Appendix
Example four: The MS laboratory in Australia conducted a campaign in order to sensitize the public for donations towards scientific research. The scientist in the glass box placed in shopping areas did not start to work until people donate money.
Figure 13:Fundraising campaign of the MS Laboratory in Australia. (Source: Retrieved fromhttp://www.blisscommunication.de)
84
Appendix
Appendix B: The Questionnaire
___________________________________________________________________________ Note: In this questionnaire the term marketing includes all activities concerning communication, public relations and advertising. ___________________________________________________________________________
Personality
1. 2. 3. 4. Gender: Age: Profession: male < 18 student female 19-25 worker 1000-1999 26-35 freelancer 2000-2999 36-65 clerk >66 retired 3000-3999 else > 4000
Income before taxes: 5 else
Attitudes concerning non-profit organizations [NPOs]
7. Are you interested in NPOs?
Yes, because________________________________________________________________ No, because_________________________________________________________________
8.
Do you support or have supported a NPO?
Yes, because________________________________________________________________ No, because_________________________________________________________________
9.
Did/do you support them with money or as a volunteer?
Money
Volunteer
10. Which NPOs do you support? 1 . __________________ ______________ 3 . __________________ ______________ 2. _______________________________
85
Appendix 11. Which NPOS did you support in the past and don't support any more? 1 . __________________ ______________ 3 . __________________ ______________ 2. _______________________________
12. Why don't you support them any more? ___________________________________________________________________________
13. How do you choose the NPOs you support? _________________________________
14.
Name five NPOs that are active in your country: 2.____________________ 5.____________________ 3._____________________
1.__________________ 4.__________________
15. The one you named what are they doing and what do they stand for? No.1.______________________________________________________________________ No.2.______________________________________________________________________ No.3.______________________________________________________________________ No.4.______________________________________________________________________ No.5.______________________________________________________________________
16. Have you ever seen an advertisement, a TV or radio spot, a flyer or any other marketing effort of Greenpeace, Médicines Sans Frontières (Doctors without borders), the Red Cross, or Amnesty International? No, I haven't seen any. [Go on with question 19.] Yes, and the message was_____________________________________________________
17. Did you like this spot, flyer, add? Yes, because________________________________________________________________ No, because_________________________________________________________________
86
Appendix 18. Did you donate money or support the organization personally after recognizing the campaign? Yes, because________________________________________________________________ No, because_________________________________________________________________
19. Do you know some marketing expressions from any other NPO? Yes! From which one and what was it? No! _________________________________
20. Do you think it is good that NPOs use marketing? Yes, because________________________________________________________________ No, because_________________________________________________________________
21. For which aims should NPOs use marketing? (Mark only one task) Fundraising, Improving their image, Personal support, Spreading their message,
Something else: ____________________________
22.
Do you think that NPOs are more active in marketing than in the past?
Yes, because________________________________________________________________ No, because_________________________________________________________________
23.
What do you think of NPOs spending money for marketing?
It is okay, because____________________________________________________________ It is not okay, because________________________________________________________
24. Do you agree with this statement: "If a non profit organization is using money for marketing, they have to communicate this in a clear way to their financial supporters"? Yes, because________________________________________________________________ No, because_________________________________________________________________
87
Appendix 25. Do you think that NPOs are acting more like for profit organizations in the marketing area? Yes, because________________________________________________________________ No, because_________________________________________________________________
26. Do you think, it is necessary, that NPOs increase their marketing and communication activities? Yes, because________________________________________________________________ No, because_________________________________________________________________
27. Would you donate money to NPOs which use professional marketing agencies? Yes, because________________________________________________________________ No, because_________________________________________________________________
28. What criteria have NPOs to fulfil in their marketing area in order that you support them? (Mark the most important two) Respond quick to questions Honesty Openness Money is used for activities, not for bureaucracy Something else: ___________________
29. Which kinds of marketing expressions annoy you? (Mark the most important three) Phone calls Flyers in mailboxes Spots on the radio Emails Billboards in the town Spots on the TV Flyers handed out on the streets Advertisements in Newspapers Others: __________________________
Guerrilla marketing
30. What is guerrilla marketing for you? It is________________________________________________________________________ ___________________________________________________________________________ I have never heard about it.
88
Appendix Guerrilla marketing is unconventional way of performing mostly promotional activities by the use of hit and run tactics, sometimes on a very low budget, intended to get maximum results from minimal resources. Such promotions are sometimes designed in a way that the target audience is left unaware they have been marketed to and may therefore be a form of undercover marketing (also called stealth marketing). The ethics of guerrilla marketing have often been called into question due to an alleged deceptive, misleading, or subtle nature of the campaigns.
31. Do you think guerrilla marketing is a good tool in the marketing strategy of NPOs? Yes, because________________________________________________________________ No, because_________________________________________________________________
32. Do you think guerrilla marketing can be used in all segments of NPOs? Yes, because________________________________________________________________ No, because_________________________________________________________________
33. For which task should NPOs use guerrilla marketing? (Mark only one task) Fundraising, Improving their image, Personal support, Spreading their message,
Something else: ____________________________
34. What aspect of guerrilla marketing do you think is the most interesting one for NPOs? It is: _______________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________
89
Appendix
Appendix C: The Guideline of the Interview with the Organization
Introducing ourselves
Who are we? What is our topic? Why this topic? What are we going to do with the information we get?
Personal Background
What are your responsibilities inside the organization? Why are you working here? Since when are you working for the organization and in this position?
Organizational Background
Goals, history, amount of supporters and employees, the budget and the marketing budget of the organization? Which shares of your budget are financed in which way? (Donors, membership fees, state subsidy)
Marketing and Communication of the organization
How is the marketing budget divided? (Media types, current/permanent campaigns, events) Importance of marketing in the organization (own view similar to the organization's one or who sets the standards? How is the marketing organized? Do you use marketing agencies or develop the campaigns on your own? To which extent (in % of your marketing tasks) do you use agencies? 90
Appendix
If you use agencies, for which marketing activities do you use them? What are the pros and cons of using agencies for your organization? Is the marketing centralized or each regional location can do it by itself? How many people are working in your marketing department? Is a guideline for campaigns existing, specific rules that have to be followed or is it up to you when, where, and to which extent a marketing campaign is done? Do you have a written marketing strategy or written marketing plans? What are the three most important aims you want to achieve with marketing? Which strategies are used in order to achieve these aims? How do you monitor the results of marketing activities? Was there always marketing activities in the organization or was it recently introduced? How did the marketing develop in the last 5 years? (Changes in goals, strategy, budget, used media types) What was the most successful campaign and why? What was the less successful campaign and why? Self-evaluation: What are the strengths and weaknesses of your marketing department? Strengths: Weaknesses:
Fundraising
Is the fundraising a task of your marketing department or do you have a special fundraising department? How do you coordinate marketing and fundraising? Who are your competitors (for the people's donors) and how do you try to defend and enlarge the amount of donors and the amount of money spent? Do you do you differentiate your target group? (Gender, Age, Income, etc.) If you differentiate the target group, you do you use this information?
91
Appendix
The view of marketing of non-profit organizations in society
Are there any constraints or limitations you are faced with in your marketing because of the society's and the donors' expectations? What are the three most important things you have to fulfil in order that the public accepts that you do marketing?
Guerrilla Marketing
Have you heard about Guerrilla Marketing and what is it for you? Do you use it? (Why, why not?) Do you think the role of guerrilla tactics will increase in your organization in the next 5 years? (Why, why not?)
92
Appendix
Appendix D: Additional Information
Description what the rarely mentioned organizations are doing according to the public BUND: "Environmental protection and nature care" UNA Sweden: "Implementing the questions of the UN to the daily life" BRIS: "Crisis line for children who have problems of any kind" IQ: "Offering projects to convince people of a responsible use of alcohol" Local churches: "Pastoral care and social projects in the town but also worldwide" Robert Bosch Stiftung: "Supporting research and science" Humanitas: "Social work in under-developed countries" CliniClowns: "Relief for sick children in hospitals to make same feel being a child again" WHO: "Trying to improve the medical car in poor countries" Attac: "Fighting against globalization", "Demanding fair rules for globalization" Technisches Hilfswerk (THW): "Provide technical help in national and international disasters" SOS Children Valleys: "Provide orphans with a new house / family" World Vision: "Arranging godparenthoods for children in the third world" Malteser Hilfswerk: "Emergency care and social work" Caritas: "Take care about elderly people and human rights" Stiftung Warentest: "Help customers to find the right products" United Nations (UN): No comment given Unesco: "Healthcare on an international level" Misereor: "Social projects in the whole world" Brot für die Welt: „Palliate the hunger in the world by handing out food to poor people in South America, Africa and Asia" Bundesverbraucherzentrale: "Represents customers towards politics and economics" Local sport clubs: "Provide possibilities to do sports, and work with the youth"
93
doc_693770871.docx
Study on Public attitudes towards the use of marketing and communication by global non-profit organizations, A nonprofit organization, or not-for-profit organization , often called an NPO or simply a nonprofit and non-commercial organization, often called an NCO, is an organization that uses surplus revenues to achieve its goals rather than distributing them as profit or dividends.
STUDY ON PUBLIC ATTITUDES TOWARDS THE USE OF MARKETING AND COMMUNICATION BY GLOBAL NON-PROFIT ORGANIZATIONS
AB S T RACT
Background: The importance of the non-profit sector and the commercialization in it is increasing. The organizations have to deal with more competition in the fundraising market on the one hand, and they are on the other hand confronted with people who are blocking the recognition of conventional marketing expressions. Guerrilla marketing is seen as a possibility to penetrate the jungle of marketing and create word of mouth about the organization and its activities. Purpose: This thesis evaluates the public attitudes towards the increasing use of marketing and communication by global non-profit organizations and investigates for which objectives the use of guerrilla tactics in the marketing and communication mix would be accepted. Limitations: Though the data for this thesis was collected through questionnaires in Sweden, Germany and The Netherlands, there are no country dependent differences investigated. Theory: Classification of NPOs; aims of NPOs; basic model of communication; dynamic model of expectations; relationship between expectation, satisfaction and donations; marketing mix; guerrilla marketing; viral marketing; live buzz marketing; promotional mix; word of mouth. Method: Survey with more than 100 participants; interview with the fundraising responsible of Greenpeace Germany Findings and Conclusions: The public accepts the use of marketing and communication and the therefore necessary expenditures for the purpose to spread the message and gain donators. Openness and honesty in the NPOs' behaviour are considered more important than the use of less money for marketing and communication. Guerrilla marketing is not suitable for all aims of a NPO, but is accepted in order to spread the message and increase the media coverage.
I
Table of Contents
TABLE OF CONTENTS
ABSTRACT ...............................................................................................................................I ACKNOWLEDGMENT......................................................................................................... II TABLE OF CONTENTS...................................................................................................... III LIST OF ABBREVIATIONS................................................................................................VI LIST OF FIGURES ............................................................................................................. VII LIST OF TABLES ............................................................................................................... VII 1. INTRODUCTION................................................................................................................ 1 1.1 Background ...................................................................................................................... 1 1.2 Problem Discussion.......................................................................................................... 5 1.3 Research Question............................................................................................................ 7 1.4 Objective / Goal ............................................................................................................... 8 1.5 Limitations ....................................................................................................................... 9 1.6 Theoretical and Practical Relevance ................................................................................ 9 1.7 Structure of the Thesis.................................................................................................... 10 2. THE RESEARCH JOURNEY.......................................................................................... 11 2.1 Finding the Topic ........................................................................................................... 11 2.2 Finding the Organization and the Interviewees.............................................................. 12 2.3 The Problem of Gaining Access..................................................................................... 13 2.4 Adaptation of the Research Question............................................................................. 13 2.5 The Timetable ................................................................................................................ 14 3. METHODOLOGY............................................................................................................. 15 3.1 Pre-understanding and Personal Considerations ............................................................ 15 3.2 Research Strategy........................................................................................................... 16 3.3 Scientific Perspectives.................................................................................................... 18 3.3.1 Inductive versus Deductive Research Approach..................................................... 18 3.3.2 Positivistic versus Hermeneutic Paradigm.............................................................. 19 3.3.3 Qualitative versus Quantitative Approach .............................................................. 21 3.4 Data Collection Techniques ........................................................................................... 22 3.4.1 Theoretical Data Collection .................................................................................... 22 3.4.2 Empirical Data Collection....................................................................................... 22 3.5 Creditability.................................................................................................................... 23 3.5.1 Construct Validity ................................................................................................... 23 III
Table of Contents 3.5.2 Internal Validity ...................................................................................................... 24 3.5.3 External Validity ..................................................................................................... 24 3.5.4 Reliability................................................................................................................ 24 3.6 Summary of Methodology ............................................................................................. 25 4. THEORY............................................................................................................................. 26 4.1 Non-Profit Organizations ............................................................................................... 26 4.2 Aims of the Marketing of Non-Profit Organizations ..................................................... 28 4.3 Strategies and Methods to Achieve the Aims ................................................................ 29 4.3.1. Communication ...................................................................................................... 29 4.3.1.1 The Sender - Receiver Model .......................................................................... 30 4.3.1.2 Changing Perceptions and Expectations .......................................................... 32 4.3.1.3 Building and Enhancing Relationships ............................................................ 34 4.3.2 Marketing Mix......................................................................................................... 35 4.3.3 Guerrilla Marketing................................................................................................. 36 4.3.4 Promotional Mix ..................................................................................................... 37 4.3.5 Word of Mouth........................................................................................................ 40 5. EMPIRICAL FINDINGS .................................................................................................. 41 5.1 Findings of the Questionnaire ........................................................................................ 41 5.1.1 Demographic Background of the Interviewees....................................................... 42 5.1.2 Interviewees' Attitudes towards Non-Profit Organizations .................................... 42 5.1.2.1 Interest in Non-Profit Organizations ................................................................ 43 5.1.2.2 Support of Non-Profit Organizations ............................................................... 44 5.1.2.3 Knowledge about Non-Profit Organizations.................................................... 45 5.1.2.4 Marketing and Communication of Non-Profit Organizations.......................... 46 5.1.2.5 Guerrilla Marketing and Non-Profit Organizations ......................................... 52 5.2 Findings of the Interview with Greenpeace Germany.................................................... 55 6. ANALYSIS.......................................................................................................................... 61 6.1 Non-Profit Organizations ............................................................................................... 61 6.2 Marketing and Communication of Non-Profit Organizations........................................ 62 6.3 Public Judgement of the Use of Marketing by Non-Profit Organizations ..................... 67 6.4 Guerrilla Marketing........................................................................................................ 69 7. CONCLUSIONS................................................................................................................. 73 7.1 Results ............................................................................................................................ 73
IV
Table of Contents 7.2 Recommendations for Non-Profit Organizations........................................................... 75 7.3 Reflections...................................................................................................................... 76 7.4 Recommendations for Further Research ........................................................................ 77 REFERENCE LIST ............................................................................................................... 78 APPENDIX ............................................................................................................................. 82 Appendix A: Further Examples of Guerrilla Marketing by NPOs....................................... 82 Appendix B: The Questionnaire........................................................................................... 85 Appendix C: The Guideline of the Interview with the Organization ................................... 90 Appendix D: Additional Information ................................................................................... 93
V
List of Abbreviations
LIST OF ABBREVIATIONS
BRIS BUND CEO ed. ELIN et al. ICNPO IFAW mill. NBO NFP NGFO NGO NPC NPO PR PVO ROI UN UNICEF U.S. WHO WWF Barnens rätt i samhället Bund für Umwelt und Naturschutz Deutschland Chief Executive Officer Edition Electronic Library Information Navigator et alii [and others] International Classification of Nonprofit Organizations International Fund for Animal Welfare Million Non-Business Organization Not-For-Profit Non Government Funded Organization Non-Governmental Organization Non-Profit Corporation NonProfit Organization Public Relations Private and Voluntary Organization Return on investment United Nations United Nations Children's Fund United States World Health Organization World Wide Fund for Nature
VI
List of Figures / List of Tables
LIST OF FIGURES
Figure 1: Figure 2: Figure 3: Figure 4: Figure 5: Figure 6: Figure 7: Figure 8: Figure 9: Advertisement for the Hans Brink Budget Hotel in Amsterdam ............................ 2 World Water Day sticker campaign by Green Belgium.......................................... 4 The factors that contribute to pre-understanding .................................................. 15 Situations for different research strategies ............................................................ 17 Deductive and inductive approach ........................................................................ 18 The basic model of communication ...................................................................... 30 A dynamic model of expectations ......................................................................... 32 Relationship between donor's expectation, satisfaction and future donations...... 33 The 4 P's of marketing .......................................................................................... 35
Figure 10: Balloon campaign against CO2 by the BUND in Berlin. ...................................... 82 Figure 11: Magnet campaign against deforestation by Greenpeace in the United States....... 83 Figure 12: Campaign against pollution in China by the WWF. ............................................. 83 Figure 13: Fundraising campaign of the MS Laboratory in Australia.................................... 84
LIST OF TABLES
Table 1: Table 2: Timetable of the thesis .......................................................................................... 14 Comparison between hermeneutic and positivistic paradigm and our own approach ................................................................................................................ 20 Table 3: Table 4: Table 5: Table 6: Table 7: Table 8: Table 9: Summary of methodology. .................................................................................... 25 Classification of non-profit organizations according to the ICNPO ..................... 26 Gender of respondents........................................................................................... 42 Age of respondents ................................................................................................ 42 Profession of respondents...................................................................................... 42 Income of respondents........................................................................................... 42 Persons in the household ....................................................................................... 42
Table 10: Nationality of respondents..................................................................................... 42 Table 11: Description of the message by the respondents..................................................... 46 Table 12: Reasons why the respondents did not like the marketing expressions.................. 47 VII
List of Figures / List of Tables Table 13: Marketing expressions by other NPOs which the respondents named ................. 47 Table 14: Reasons why marketing is good for NPOs............................................................ 48 Table 15: Reasons why marketing is not good for NPOs...................................................... 48 Table 16: Aims for which the NPOs should use marketing .................................................. 48 Table 17: Explanations why it is okay that NPOs spend money for marketing .................... 49 Table 18: Explanations why it is not okay that NPOs spend money for marketing.............. 49 Table 19: Reasons for the need of statements of using money for marketing....................... 49 Table 20: Explanations why NPOs act like profit orientated ones in the marketing area..... 50 Table 21: Explanations why NPOs do not act like profit orientated ones in the marketing area ........................................................................................................................ 50 Table 22: Reasons for NPOs to increase their marketing and communications activities .... 50 Table 23: Reasons for NPOs not to increase their marketing and communication activities 50 Table 24: Explanations why people also donate if the NPO is using marketing agencies.... 51 Table 25: Explanations why people do not donate if the NPO is using marketing agencies 51 Table 26: Criteria the NPOs have to fulfil in order to receive support ................................. 51 Table 27: Marketing expressions the public is annoyed of ................................................... 52 Table 28: Public descriptions of guerrilla marketing ............................................................ 52 Table 29: Reasons why guerrilla marketing is a good tool in marketing strategies of NPOs53 Table 30: Reasons why guerrilla marketing is not a good tool in marketing strategies of NPOs ..................................................................................................................... 53 Table 31: Reasons why guerrilla marketing can be used in all non-profit segments ............ 53 Table 32: Reasons why guerrilla marketing can not be used in all non-profit segments ...... 53 Table 33: Tasks for which guerrilla marketing should be used............................................. 54 Table 34: The interesting aspects of guerrilla marketing for NPOs ...................................... 54
VIII
Chapter 1
Introduction
1. INTRODUCTION
This introduction chapter is meant to give the reader an overview of the subject and our motivation for the thesis. Beginning with a background part the reader gets an impression of marketing strategies of non-profit organizations and the increasing use of guerrilla marketing in general. The problem discussion part leads to the formulation of the research question that will be addressed. The theoretical and practical relevance are considered and finally the structure of the thesis is shown.
1.1 Background
There seems to be a general view that the importance of marketing and communication in nowadays economy is increasing. "Across all industries, 75% of marketers and non-marketers agree that marketing is far more important to corporate success than it was five years ago." 1 At the same time the size of the non-profit sector and the number of non-profit organizations is growing. Beside this, people have a higher awareness about non-profit organizations. "The non-profit sector is no longer invisible. It is a high-profile, high-impact community that affects the lives of people throughout the country and the world."2 For example, in the United States the number of non-profit organizations has already trebled between 1970 and 19983 and the numbers of non-profit employees grew from 3% of the U.S. labour force in 1960 to 9% in 2000.4 This growth in size and amount of the non-profit sector was a visible pattern of commercialisation in the sector. 5 Therefore, it is not a surprise that "marketing has also become a vital component in the strategies of many non-profit organizations"6.
The non-profit sector is not a homogenous sector. There exist local, regional and global organizations with different foci. In this thesis, only the non-profit organizations which act on an international level are regarded. Some examples of non-profit organizations, also often called non-governmental organizations, which act on a global level are: Amnesty International, the World Wide Fund For Nature, The Red Cross, and Doctors without Borders.
1 2 3 4 5 6
N.N. (2007). Marketing Department Priorities Often Differ From CEO's Agenda. O'Neill, M. (2002), Nonprofit Nation. A New Look at the Third America. Weisbrod, B. A. (1998), To Profit or not to Profit: The Commercial Transformation of the Nonprofit Sector. Hammack, D. C. (2002), Nonprofit Organization in American History. N Weisbrod, B. A. (1998), To Profit or not to Profit: The Commercial Transformation of the th onprofit Sector. Kotler, P. & Wong, V. & Saunders, J. & Armstrong, G. (2005). Principles of Marketing (4 ed.).
1
Chapter 1
Introduction
Since the last decades one can say that marketing and communication are everywhere. When people are living their daily life they get in contact with all different kinds of marketing expressions. On their way to the university or to work they see billboards at the bus stop, neon advertisements, flyers, or hear advertisements on the radio and are addressed by messages sent through other kinds of communication channels. Nobody can imagine a life without getting in contact with marketing and thousands of messages conveyed by different communication channels. But getting in touch with such high amounts of advertisements makes it more difficult for the single organization to get recognized by the public. Several studies show that the average customer is confronted by 3000 advertising messages a day in various types of media, but he only remembers very few of them.7 Customers are blocking themselves from the different marketing influences because there are just too much. Mass marketing is becoming less and less effective today.8 Conventional marketing media channels like radio spots, TV advertisements, and printed press campaigns are getting old fashioned and ineffective.9 The public is bored of conventional marketing and conventional communication channels; they pay more attention to new ways of marketing, which sometimes involve a change of rules by the advertiser.10
In the nowadays jungle of marketing, organizations are looking for a more effective way to reach their potential end consumers. The way to do marketing and communication in an unconventional way was first seen as something for small organizations with a lack of resources only. To explain the term 'unconventional', one can look at the example of "Hans Brink Budget Hotel" in Amsterdam. The hotel used dog excrements on the streets of Amsterdam as a communication channel. Flags with the name and the text "Now even more of this at our main entrance" were put into the dog dirt. Not only the communication channel is unconventional, but also the link between channel and message is out of the ordinary. Who thinks about animal excrements when it comes to finding a hotel to stay? And which hotel risks advertising with negative statements about themselves?
Figure 1: Advertisement for the Hans Brink Budget Hotel in Amsterdam (Source: Retrieved May 15, 2007 from www.bright.nl/top-5-guerrillamarketing)
7 8
Shenk, D. (1998), Data smog. Welsch, H. P. (2004), Entrepreneurship: the way ahead. 9 Silverman, G. (2003), The Secret of Why Only Some Marketing Programs Succeed And Most Others Fail. 10 Röthlingshöfer, B. (2006), Marketeasing.
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Introduction
A small organization with a smaller advertising budget can still rely on innovation and creativity, which can lead to the same attention of the public than expensive traditional campaigns do. In the last years also multinational organizations accepted unconventional marketing as a good strategy to reach the end consumers. The reasons behind this change in mentality are that the positive aspects of unconventional marketing are clearer these days and the need for a different market approach increased. One of the best examples is the bloghttp://schlaemmerblog.tv/ of the German comedian Horst Schlämmer in which videos of him trying to get a driver's licence are shown. By the end of February the videos have been watched more than 1.4 million times.11 The sender of the video messages is Volkswagen, what was not visible when the blog started. But assumptions and rumours caused the clarification that Volkswagen is the initiator of the blog. This statement where made on the 20th of February.12
Instead of talking about unconventional marketing or untraditional marketing one can use the term guerrilla marketing. The term guerrilla marketing is up to discussion what it exactly means. Some argue that it is "unconventional marketing intended to get maximum results from minimal resources"13. According to Levinson's book from 1984 "guerrilla marketing is an unconventional way of performing marketing activities (primarily promotion) on a very low budget"14. The view of Levinson is nowadays not commonly supported anymore. There is a change visible from that low costs have to be a characteristic of guerrilla marketing to the hit and run characteristics of guerrilla marketing without the need of low costs.15 But the general view is still that guerrilla marketing uses unconventional marketing within unusual communication channels. According to Hospes guerrilla marketing has to be "original and unsuspected to create sympathy amongst the receivers"16. One of the other characteristics of guerrilla marketing is that the marketers do not care to stay in the legal frame. "When you know the [?] answer is not going to be what you want to hear, it is easier to ask for forgiveness than for permission"17, explains Brian Heffron, senior vice president of Boston-based marketing firm, Conover Tuttle Pace, how some advertisers work. Actions are done first and if the public and/or the government do not show sympathy with it, one asks for forgiveness.
11 12 13 14 15 16 17
Pitz, B. (2007), Freunde: Horst Schlämmer und Volkswagen. The clarification can be found onhttp://schlaemmerblog.tv/?p=32 N.N. (not dated), Guerilla Marketing Definition. Levinson J. C. (1984), Guerrilla Marketing: Secrets for making big profits from your small business. Hospes, C. (2007), Guerrillamarketing, nieuwe sluiproutes naar het hart van je klant. Hospes, C. (2007), Guerrillamarketing, nieuwe sluiproutes naar het hart van je klant. St. Martin, G. (2007), Council looks to reign in guerilla marketing.
3
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Introduction
To make clear what guerrilla marketing activities of non-profit organizations are, one example is presented below and some more can be found in the appendix A. For the world water day 2005 in Mexico the Belgian organization Green Belgium stuck more than 500 stickers in washbasins in cinemas, pubs, restaurants, public toilets, universities and stations in nine Belgian cities and in Mexico City. The shown text is: "It takes you 1 second to get drinking water. He has to walk 20 km. Water is a human right. Help us provide access to drinking water."
Figure 2: World Water Day sticker campaign by Green Belgium (Source: Retrieved May 4, 2007 from www.greenbelgium.org)
Two of the reasons why guerrilla marketing could be successful in the nowadays jungle of marketing are: First, people cannot block themselves that easy from recognizing the advertisement as they can do with a TV spot or newspaper ad. Secondly, they might not know who the initiator of the marketing campaign is or even that it is a marketing campaign at all. Like earlier mentioned, marketing is visible everywhere in the for-profit sector, but the importance of marketing in the non-profit sector is also growing18. Non-profit organizations use marketing to reach their ideals, not to increase their profit as for profit-organizations do. It is not surprising that non-profit organizations have the same problems in getting awareness
18
Weisbrod, B. A. (1998), To Profit or not to Profit: The Commercial Transformation of the Nonprofit Sector.
4
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Introduction
from the end-consumer in the jungle of marketing as profit-orientated organizations have. The amount of non-profit organizations is increasing and commercialization and criticism are growing in this sector.19 The non-profit organizations have to fight for attention among potential consumers like for-profit organizations have to. This is one of the reasons why also non-profit organizations could use guerrilla marketing in their marketing mix besides conventional or traditional marketing. It is not that guerrilla marketing replaces or will replace conventional marketing. There has to be always a coexistence of guerrilla and traditional marketing and communication.
1.2 Problem Discussion
To make a difference between for-profit and non-profit organizations one can say that the aim of the profit-orientated, like the words already say, is profit. These organizations try to maximize their turnover and to minimize their costs while non-profit organizations are also aiming for money, but only with the purpose to use this money in order to reach their ideals which are not related to capitalistic goals. To reach their ideals non-profit organizations need resources like forprofit companies need to compete and survive. This is the general rule in a capitalistic world; the aim is to have resources which others do not have. These resources can be monetary capital, knowledge, patent rights or employees.
The commercialisation in the non-profit sector20 and in the same time the increasing influence of marketing in the non-profit sector bring up a problem which is that some people argue that marketing is directly related to profit, like the Chartered Institute of Marketing does: "Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably."21 This view is similar to the one Levy and Zaltman had 30 years ago. They also had the opinion that marketing is only done in combination with profit: "Roughly stated the marketing concept called for a customer orientation on the part of the firm, backed by an integrated marketing effort designed to assure customer satisfaction as a means of obtaining long-term profit."22
19 20 21
Van der Horst, J. A. J. (2002), Marketing een wondermiddel voor non profit organisaties? Weisbrod, B. A. (1998), To Profit or not to Profit: The Commercial Transformation of the Nonprofit Sector. Imperative from the Chartered Institute of Marketing, in: Clarke, P. & Mount P. (2001), Nonprofit marketing:
T2he key to marketing's "mid-life crisis"? 2 Levy, S. J. & Zaltman, G. (1975), Marketing, Society and Conflict.
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Introduction
But there are on the other hand also people who already argued in the 80ies that marketing can be used in the non-profit sector like Kotler23. Bruce is even going one step further stating "what is needed is a greater adoption of a marketing approach in not-for profit organizations"24. Today Kotler et al.25 even go further than Bruce, arguing that marketing is a vital component for non-profit organizations.
We agree to the view of Kotler. This perspective is also taken by other authors. "Marketing consists of individual and organizational activities that facilitate and expedite satisfying exchange relationships in a dynamic environment through the creation, distribution, promotion, and pricing of goods, services, and ideas."26
But what might guerrilla marketing have to do with the marketing of non-profit organizations? In today's life potential end consumers get overwhelmed by different impulses from different organizations, the so-called jungle of marketing. The end consumer blocks a lot of this information and is looking for uniqueness and creativity. Guerrilla marketing is most of the time unique and creative and is almost always looking for a new approach to the end consumer. A second phenomenon of guerrilla marketing is the possibility of lower costs in comparison to conventional marketing. This makes it very interesting for organizations with a smaller marketing budget, because it can be an opportunity to compete with competitors.
Nowadays, not only small organizations, but also bigger organizations adapt guerrilla marketing in their marketing approach. It is clear that profit-orientated organizations are using this approach to fight in the jungle of marketing. But are non-profit organizations also adapting guerrilla marketing in their marketing strategy and is this approach effective for them or not?
The fact that the supporters of non-profit organizations are becoming more and more critical and that commercialisation in the non-profit sector is increasing influences the conditions for marketing of non-profit organizations.27 The decrease in the resources that governments give
23 24 25 26
Kotler, P. (1982), Marketing for Nonprofit Organizations. Bruce, I. (1995), Do not-for-profits value their customers and their needs? Kotler, P. & Wong, V. & Saunders, J. & Armstrong, G. (2005), Principles of Marketing (4th ed.). Dibb, S. & Simkin, L. & Pride, W. M. & Ferrell, O. C. (1994), Marketing: Concepts and Strategies (2 nd
E7uropean ed.). Houghton Mifflin Company, London, p. 5. 2 Van der Horst, J. A. J. (2002), Marketing een wondermiddel voor non profit organisaties?
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Introduction
to non-profit organizations28, or that these resources have to be divided over more different non-profit organizations29, constrain the organizations to find other sources of financial support. In conclusion, the general public and its opinion is becoming more and more important for the non-profit sector because the organizations depend more on donations. Another fact that has to be taken into consideration to evaluate the working conditions of the organizations is the "scope of the Welfare State" and the "Level of Development" which have according to Sergeant a high influence on the non-profit sector of the specific country.30 Due to the commercialisation in the non-profit sector, marketing bears an increased meaning in the overall strategy of the organizations. The question is, if the general public accepts this increased use of marketing? Do they agree on that it is necessary for a non-profit organization to use public relations and marketing, and the associated expenditures, in order to survive and to reach their goals? Is the general public still willing to donate money if a non-profit organization is spending more money for marketing and communications? What kind of marketing do they agree upon, is it maybe guerrilla marketing?
The reason that might make guerrilla marketing especially interesting for non-profit organizations are the possibility for low costs, because people who donate money to the organizations do perhaps not want that this bounties are wasted in expensive marketing campaigns. Furthermore, press and TV report about some out of the ordinary activities. This can create a word of mouth, but both positive or negative. The public opinion is maybe even more important for non-profit organizations than for profitorientated ones because NPOs depend on the public willingness to donate money.
1.3 Research Question
The problem discussion in chapter 1.2 leads to our research area. The tasks to be included in this thesis are how the public reacts to the increased commercialisation in the non-profit sector and the increasing use of marketing and communication in these organizations. What do they expect from the marketing and communication of non-profit organizations and what are the tasks the organizations have to fulfil in this topic in order to get financial and
28
Nährlich, S. (2002), Was sind die und bleibt von den Besonderheiten der Non-Profit Organisationen? Eine
ö9knonomische Betrachtung. 2 Doornbos, D. P. (2006), Plan Nederland krijgt geen subsidie. 30 Sargeant, A. (1999), Marketing for Nonprofit Organizations.
7
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Introduction
voluntary support? How does the public judge the actual efforts of non-profit organizations? Do these efforts seems to reach their targets in the view of the public or do they not even know the tasks and missions of certain organizations which shows that the organization's campaigns are ineffective in spreading their message? Finally, their attitudes concerning the use of guerrilla marketing in non-profit organizations are examined.
To sum up these thoughts, the research question of our thesis is: What is the public attitude towards the increasing use of marketing and communication by global non-profit organizations?
In order to remediate the possible ambiguity what attitude means, the following explanation is helpful. Almost every person evaluates his or her environment at any time. Attitudes are coming from this evaluation. "Thus, attitudes are defined as evaluations of entities, including behavior, that result in perceptions of favor or disfavor." 31 Beliefs, feelings, values and dispositions to act in certain ways are elements of the attitude a person has.
1.4 Objective / Goal
The purpose of this thesis is to describe the attitudes of the public concerning non-profit organizations and their marketing and communication efforts. Are there certain criteria the organizations have to fulfil in order to receive donations and is the public aware of what the single organization is standing for?
What should make this thesis different from existing publications and older research studies is that the investigation was not made on an external or internal perspective only. In order to identify if the organizations are aware of the public expectations and in order so see how the organizations act in practice, an interview with a fundraising responsible of Greenpeace Germany was done. The purpose of taking this internal perspective into account was to discover a possible gap between the expectations of the people and the statement of the organization and to give recommendations to overcome these threats.
31
Eagly, A. H. & Chaiken, S. (1993), The Psychology of Attitudes.
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Introduction
It is important to mention that the investigation of the public perceptions also included guerrilla marketing. The aim was to search out if this kind of marketing is recommended and accepted from the general public in order to make a hypothesis for the further development of guerrilla tactics in the non-profit sector.
1.5 Limitations
We have chosen a few limitations in order to be able to develop the field of marketing by nonprofit organizations in accordance with our own ideas and field of interest. At first, all small non-profit organizations with regional restrictions such as sport clubs or colleges are not regarded in this thesis because it would negate the possibility to draw conclusions for global NPOs. Furthermore, these organizations have often not the resources to do a lot of marketing and communication so that the public attitude towards these efforts is not very distinct. Secondly, in the range of fundraising bequest marketing is not attended within this paper, because it is in its infancy and only a few organizations are increasing their efforts in this marketing section. Thirdly, all the questionnaires are taking place in developed countries namely Germany, The Netherlands and Sweden. Therefore the public attitude of people in undeveloped countries is not measured. Finally, lobbying is not considered. These are efforts directed to increase the political importance of certain fields of interest of the non-profit organizations by influencing assemblymen.
1.6 Theoretical and Practical Relevance
The particular theoretical relevance of this thesis is the adaptation of general customer relationship management theories to the non-profit sector. The aim is to increase the understanding of the public attitudes towards marketing and communication done by non- profit organizations. Therefore, the theoretical framework presents the basic knowledge of the selected theories before the empirical findings are presented in chapter 5. The practical relevance of this thesis is the investigation which kind of marketing and communication by non-profit organizations is accepted by the public. How does the public
9
Chapter 1
Introduction
respond to communication efforts of the organizations in different communication channels? Furthermore, the judgment of guerrilla strategies for non-profit organizations by the public has relevance for the suitability of these methods for the organizations. Finally, the comparison of the public opinion about non-profit organizations' marketing with the actual practice in the instance of Greenpeace Germany, leads to starting points for actions to reduce the discrepancies between the organizations policy and the public expectations. These recommendations are not useful for Greenpeace Germany only, but for other non-profit organizations as well.
1.7 Structure of the Thesis
This thesis is separated into seven chapters. While the background of the research field as well as the specific research question were already presented in chapter one, chapter two describes the research journey which deals with the way of finding the topic and getting in contact with the investigated non-profit organization. The development and continuous adaptation of our research question during the thesis writing process is also presented. Chapter three deals with the different methodology approaches we have used for our research. The empirical findings of the interview with Greenpeace Germany and the results of the survey in the public are shown in chapter five. The before in chapter four presented theories are than related to the empirical data, which leads to the analysis in chapter six. After the results and suggestions what non-profit organizations have to be aware of are presented in the beginning of in chapter seven, the conclusion and the thesis close with a reflection on our own work and recommendations for further research.
10
Chapter 2
Research Journey
2. THE RESEARCH JOURNEY
In this chapter the procedure of finding a topic and finding a suitable organization is described. Furthermore, we note how we got access and present our timetable for the thesis writing process. The development of the research question before and during the writing process is also contemplated.
2.1 Finding the Topic
It was not easy to find a topic for our thesis because we are interested in several different fields of business administration and marketing. Our first idea was to write about guerrilla marketing in general, "what is guerrilla marketing?", "which companies use this strategy in their marketing mix?", and "why do they use it?" We wanted to focus especially on non-profit organizations and if "it is interesting for them to adapt guerrilla marketing?" But also the rules and boundaries for guerrilla marketing in today's daily life were planned as an area for research.
After looking for literature and suitable theories to reflect on, we conclude that the literature available was not enough for a bachelor thesis. According to Yin, "the case study needs to use multiple converging sources or evidence to prove a point, because there are more variable than data point. Without a theory to guide them, researchers will not know what specific data to collect".32 During discussions not only between us, but also with our supervisor and other students we came to the conclusion that we had to change our topic a little bit. We still wanted to focus on non-profit organizations, because in our opinion they are an interesting part of daily life where marketing is used. None of us had before any knowledge about the combination of marketing and global nonprofit organizations. Therefore we decided to focus on this to get a deeper understanding of the subject. Especially what kind of marketing strategies do global nonprofit organizations use and are there differences or similarities between them?
After coming up with this research question, we discussed and looked for theories and information about this topic. We decided that it was necessary to get in contact with global
32
Yin, R. (2003), Case study research: Design and Methods (3rd ed.).
11
Chapter 2
Research Journey
non-profit organizations in Sweden to get more information about their marketing strategies. We wanted to collect this information by interviewing persons in charge for marketing and communication in the non-profit organizations. Not only we wanted to collect data from the organizations itself, but also from the general public in order to investigate how they think about marketing by non-profit organizations. We wanted to study this with the help of questionnaires.
While we received more and more rejections from the organizations, we expanded our contact efforts to Germany and The Netherlands, but also these national departments were, except for Greenpeace Germany, not willing to give us interviews. Therefore, the research question had to be adjusted a third and last time according to the displaced focus towards the public perceptions and expectations of marketing and communication by non-profit organizations as the main research field.
2.2 Finding the Organization and the Interviewees
Our aim was to find suitable global non-profit organizations that were also active in Sweden. When we were thinking about possible organizations the first names which came to our mind were "Amnesty International", "Greenpeace", "The Red Cross" and "Médecins Sans Frontières" ("Doctors Without Borders"). These organizations were contacted by email and phone calls in Sweden, Germany and The Netherlands. Unfortunately only the German department of Greenpeace agreed to cooperate with us for this thesis. The interviewees for the survey were contacted in two different ways. While the Dutch and German respondents had to fill out the questionnaire on a website, the Swedish ones were contacted in the streets in Växjö. The aim was to get answers from approximately 30 persons out of each country. The website with the questionnaire was alluded in a few Dutch and German Internet portals in order to get response.
12
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Research Journey
2.3 The Problem of Gaining Access
In the beginning we thought that the location of the Swedish organizations is the biggest problem for getting access because they are all located in Stockholm. The distance between Växjö and Stockholm is quite big, so that trips have to be planned well. Nevertheless, we thought that face-to-face interviews were the best method to gain information.
But getting in contact with a suitable representative of the organizations was a bigger problem. Because we took advices of our opponent groups during seminar one, and recommendations of our tutor during the tutoring meeting into account, we were not able to contact the organizations until the end of March. We received only a few answers to our emails and phone calls ended in a lot of transmissions but without positive outcome. As mentioned above we finally got in contact with Greenpeace Germany and we were able to interview the fundraising assistant Christine Busch and had furthermore active email conversation with her.
2.4 Adaptation of the Research Question
When we planned to focus on guerrilla marketing and the situations in which it can be used our research question was,„Is guerrilla marketing an alternative way for every organization to communicate with their end consumers?" Due to the useful warnings of our supervisor and our own recognition of a lack of literature and theories, this question turned out to be inappropriate. After we had moved our focus to the marketing of non-profit organizations in general, we discussed possible focal points of them. Despite the adjustment of the topic we still wanted guerrilla marketing at least to be a part of our research area. After a good deal of thoughts we came up with our second research question which was "What are the differences and similarities of the marketing strategies of global non-profit organizations and to which extent do they use guerrilla marketing?" As a result of the denied access to a lot of organizations we moved our focus to the general public and came to the final research question: What is the public attitude towards the increasing use of marketing and communication by global non-profit organizations? 13
Chapter 2
Research Journey
2.5 The Timetable
The following table presents an overview about the temporal organization of the thesis:
PM 1
Time (Week No.) 10
PM 2 14 15 16 17
PM 3 18 19 20
Final Paper 21 22 23
11
12
13
Introduction Literature Study Method Theory Empirical Findings Greenpeace Empirical Findings Public Analysis Conclusions Final Adjustments Presentation
Table 1: Timetable of the thesis
14
Chapter 3
Methodology
3. METHODOLOGY
The methodology chapter will describe how the research had been carried out, but also will show the quality and relevance of the study. The first part includes the concept of preunderstanding and a presentation of our personal background. Afterwards, the research strategy is presented. The following part about the scientific perspective includes the chosen approach and the scientific paradigm. Furthermore, the techniques used to collect the data, first on a theoretical point of view and later on an empirical point of view, are described. The credibility of this study is tested in the last part of this chapter.
3.1 Pre-understanding and Personal Considerations
According to Gummesson, the pre-understanding is of high importance because every researcher is influenced by his knowledge and experiences even if he is not aware of it. The preunderstanding permits an insight into a specific research field before the research process is started. While one could expect that the knowledge equals the pre-understanding of a person it is not like that. Gummesson states that it is much more; "it includes a researcher's personal experience as an essential element in the process of collection and analyzing information".33 The researcher's own attitudes and commitment are also based on the experience of others which the researcher assimilates through intermediaries such as seminars, research reports or textbooks to his own knowledge. Gummesson illustrates the concept of pre-understanding in the following figure:
Figure 3: The factors that contribute to pre-understanding (Source: Gummesson, 2000).
33
Gummesson, E. (2000), Qualitative Methods in Management Research (3rd ed.).
15
Chapter 3
Methodology
Our own personal background can be described as follows. We are one Dutch and one German student of who one is studying business administration and the other one sports marketing and management. We both have read basic courses in management and economics.Because we are both in the fourth year of studies, we have an overview about the different subjects in business administration.
When it comes to the question, if it is positive to have a high level of pre-understanding, the answer has to be differentiated. On the one hand it is positive to have very much knowledge because the time to spend for collecting general information about the research field and identifying adequate models is less. But on the other hand the researcher might easily prejudice other approaches as insufficient and wrong, which is the negative expression of a high level of knowledge.
Before this study none of us had institutional knowledge about global non-profit organizations and none of us had special theoretical knowledge in the field of guerrilla marketing. However, one of us has six years of experience in working for a local newspaper as freelancer, so that we know which kind of organization's information can be published beyond the advertising section because it is interesting for the reader. These experiences helped us to understand the marketing efforts of the non-profit organizations and the restrictions media companies have to publish information about them without receiving financial reward.
Furthermore, both of us have gained experience with surveys through a lot of polls we have done in school and university projects. This knowledge helped us to formulate the questions directed to the public in an appropriate way in order to identify their assessment of marketing and communication of non-profit organizations.
3.2 Research Strategy
The research strategy describes the way a study is done. Different strategies like surveys, experiments, histories or case studies and the analysis of archival information are available to the researcher according to Yin's differentiation.34 These strategies differ from each other by the type of research question posed, the extent of control an investigator has over actual
34
Yin, R. K. (2003), Case Study Research: Design and Methods (3rd ed.).
16
Chapter 3
Methodology
behavioural events, and the degree of focus on contemporary events. Each of these strategies has advantages and disadvantages. The following table shows which strategy should be used, depending on the current research situation:
Strategy
Form of research question
Requires control of behavioural events ?
Focuses on contemporary events
Experiment
how, why?
Yes
Yes
Survey
who, what, where, how many, how much ?
No
Yes
Archival analysis
who, what, where, how many, how much ?
No
Yes/No
History
how, why?
No
No
Case study
how, why?
No
Yes
Figure 4: Situations for different research strategies (Source: Yin, 2003). The method we have chosen can be classified as mixture of a survey and a case study. In the part with the interview with the representative of the Greenpeace we work in accordance with the criteria of a case study. But in order to identify the public opinion of the marketing efforts of nonprofit organizations, a survey with qualitative questions is used. Nevertheless, according to Yin a case study is "an empirical inquiry that investigates a contemporary phenomenon within its reallife context"35. This definition does not exclude that it can be combined with a survey. Because the main part of the empirical part consists of the questionnaire, the general research strategy of this thesis is a survey.
35
Yin, R. K. (2003), Case Study Research: Design and Methods (3rd ed.).
17
Chapter 3
Methodology
3.3 Scientific Perspectives
3.3.1 Inductive versus Deductive Research Approach
According to Gummesson the two general ways to do a research is to test an existing theory in practice or to generate a new theory out of empirical data. These two approaches are called deductive and inductive. The deductive research starts with existing theories and concepts and formulates hypotheses that are subsequently tested; its vantage point is received theory. "Inductive research starts with realworld data, and categories, concepts, patterns, models, and eventually, theories emerge from this input."36 In practice deduction means testing a theory or hypothesis which then are verified or falsified. In contrast, induction means creating a new theory or model by gathering data and looking for adequate theories and models in relation to these empirical findings. The following figure from Alvesson and Sköldeberg illustrates the different steps of the two approaches:
Figure 5: Deductive and inductive approach (Source: Alvesson & Sköldeberg, 2000).
For the sake of completeness the adductive approach has to be mentioned. It is a mix of the deductive and inductive approach and described as the incomplete perception from the deductive to the inductive research during the research. According to Gummesson it cannot be understood as a third approach.37
This thesis deals with the theory of marketing of non-profit organizations, with guerrilla practices in them and with the attitude of the public. Even if is the starting point of our
36 37
Gummesson, E. (2000), Qualitative Methods in Management Research (3rrdd ed.). Gummesson, E. (2000), Qualitative Methods in Management Research (3 ed.).
18
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Methodology
questionnaire was a study of the literature in order to gain knowledge which kind of questions should be addressed to the public, this thesis does not follow a deductive approach. Furthermore, we are not testing a single theory in practice. Although Gummesson states that "all types of research become an iteration between the deductive and inductive"38, this study was mainly done in an inductive way. We did not formulate a hypothesis which than was tested, but we formulated a more general recommendation about the use marketing and communication by nonprofit organizations and about the suitability of guerrilla tactics within the marketing strategy of NPOs.
3.3.2 Positivistic versus Hermeneutic Paradigm
Before we explain the attributes of the hermeneutic and positivistic paradigm the question 'What is a paradigm is?' should be answered. "A paradigm is a shared perspective of reality and a way of looking at the world as if through coloured spectacles. A paradigm is a 'worldview' or 'map', which provides a general outline and direction for scientific activity."39
In literature two scientific paradigms are described: the hermeneutic and the positivistic one. While the positivistic paradigm focuses on causal relationships by the use of statistical analysis and objective facts, the hermeneutic one uses a more personal interpretative process to "understand reality"40. Therefore, the hermeneutic paradigm is based on personal understanding through feelings and intuitions. Because the researcher is using his thoughts and there is no clear separation between his personal point of view and the facts, this approach is referred as subjective. Because of the quantitative and empirical nature of the positivistic paradigm, which only considers knowledge that has been acquired through measurement, it is often seen as the "correct scientific paradigm"41 and referred as objective.
Although our main paradigm is hermeneutic, we do not conform to it totally. Even if the inductive approach alludes to the hermeneutic paradigm, there are also elements of the positivistic paradigm in this thesis. Our role as external interviewers and observers is an indicator for this. Because of this ambiguity, we compare the criterions of the two paradigms
38 39 40 41
Gummesson, E. (2000), Qualitative Methods in Management Research (3rd ed.). Kuhn, T. (not dated). Conceptual or theoretical framework: Worldview orrd'Paradigm'. Gummesson, E. (2000), Qualitative Methods in Management Research (3rd ed.). Gummesson, E. (2000), Qualitative Methods in Management Research (3 ed.).
19
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Methodology
in the figure below (Figure 1) and point out which point of view is chosen in this thesis. The fields with the grey background illustrate our approach for this thesis:
Positivistic paradigm Research concentrates on description and explanation. Well-defined, narrow studies. Vantage point is primarily deductive; thoughts are governed by explicitly stated theories and hypotheses. Research concentrates on generalization and abstraction. Research seeks to maintain a clear distinction between facts and value judgments, search for objectivity. Researchers strive to use a consistently rational, verbal, and logical approach to their object of research. Statistical and mathematical techniques as well as surveys for quantitative processing of data are central. Researchers take the role of an external observer. Distinction between science and personal experience. Researchers try to be emotionally neutral and to have a clear distinction between reason and feeling. Researchers discover an object of research external to themselves rather than creating the actual object of study.
Hermeneutic paradigm Research concentrates on understanding and interpretation. Narrow as well as total studies (holistic view). Vantage point is primarily inductive; researchers' attention is less focused and is allowed to "float" more widely. Research concentrates on the specific and the concrete but also attempts generalizations. Distinction between facts and value judgment is less clear, recognition of subjectivity. Pre-understanding that often cannot be articulated in words or is not entirely conscious - tacit knowledge - takes on an important role. Data are primarily non-quantitative. Researchers want to experience what they are studying from inside. Researchers accept influence from both science and personal experience. Researchers allow both feelings and reason to govern their actions. Researchers partially create what they study, for example, the meaning of a press or a document.
Table 2: Comparison between hermeneutic and positivistic paradigm and our own approach (Source: adapted from Gummesson, 2000).
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3.3.3 Qualitative versus Quantitative Approach
The two opposite approaches which can be used in research are the qualitative and the quantitative one. The quantitative approach relies "on the quantification in collecting and analyzing data and uses descriptive and inferential statistical analyses"42. This method is based on measurements and collecting data, for instance by questionnaires in which the respondents have to mark suitable answers among a preselection. "If data are presented in the form of word, diagrams, or drawings - and not as numbers - this portion is considered qualitative".43 In this method data is collected by using descriptive methods. According to Grinnell and Unrau the researcher is likely to use the qualitative approach if he has no or only little knowledge of the field he wants to study. Therefore one can say that this approach is often used to come to tendencies in advance of quantitative studies. Quantitative studies use explanatory questions while qualitative ones avail exploratory questions. As mentioned before, explanatory studies can be carried out if a profound knowledge in the specific research field exists.
We focused in this thesis on the qualitative approach and posed exploratory questions during the survey with the public. The respondents had mostly to justify the chosen answer in their own words and not only to mark one among a few options. The few explanatory questions about the personal characteristics in the questionnaire do not gainsay that we can call our general approach of this thesis 'qualitative'. The mention of how many of the respondents wrote down which answer does not mean that the questionnaire is analysed in a quantitative way. The data is still presented in words, and fulfils therefore the criteria of calling the approach qualitative according to Grinnell and Unrau. In the interview with the fundraising assistant of Greenpeace qualitative questions were asked only.
42
Grinnell, R. M. Jr. & Unrau, Y. A. (2005), Social Work Research and Evaluation: Quantitative and Qualitative Approaches (7th ed.). 43 Grinnell, R. M. Jr. & Unrau, Y. A. (2005), Social Work Research and Evaluation: Quantitative and Qualitative Approaches (7th ed.).
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3.4 Data Collection Techniques
It was very important for our thesis to get access to reliable data because the collected data led us to the analysis in the last part of the thesis. The process of data collection had therefore to be well defined and was divided into a theoretical and an empirical part.
3.4.1 Theoretical Data Collection
The first step of the theoretical data provision consisted of identifying and collecting various primary and secondary source materials. These sources included books, articles, reports, and the Internet sources as well as government documents and material published by the non- profit organizations themselves. The books and scientific articles we used were mostly found in the library of Växjö University and its online databases such as Ebrary and the Electronic Library Information Navigator (ELIN). In order to get a broader view and put recent information into account the Internet was also used as a source of data. We are aware that not all sources in the Internet are reliable and therefore constricted the search on Google Scholar, and websites from universities or public agencies.
3.4.2 Empirical Data Collection
Our most important source for gathering information was getting response from the public by the questionnaire. Apart from questions where the most important attributes out of a preselected sphere had to be named, we have asked open questions, where we were not expecting specific and one-word answers. As a result of our focus to the three countries Sweden, Germany and The Netherlands the questionnaire had to be done in each country. For Germany and The Netherlands the survey was uploaded tohttp://www.askallo.de/ from 24th of April to the 15th of May. The direct link to the page with the questionnaire was then posted in national forums for study polls. In order to gain the feedback of Swedish people, a two day survey was conducted in Växjö on the 7th and 8th of May. Because the Dutch and German participants had no chance to ask for explanations, the ones of Swedish participants in the questionnaire were not answered in order to not influence the outcome of the survey. The questions posed can be found in the appendix B.
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Concerning the interview with the Greenpeace' representative we decided to use the semistructured interview method. "Semi-structured interviews allow the interviewer to pose all questions while providing the opportunity to pursue emergent issues and themes not included on the script. Such an approach is best suited to situations where complex interactions and processes are involved and where there is a concern of imposing restrictive a priori data classification."44 Although an unstructured approach has the advantage that the interviewee can focus on the parts he wants and the atmosphere is more like a talk than like an interview, we used an interview guideline in order not to loose the main field of interest. For the preparation of the interview, we have categorized our precast questions into the areas of "personal background of the interviewee", "background of the organization", "marketing and communication", "fundraising", "the view of the public" and "guerrilla marketing". Nevertheless, the guideline included open questions, which allowed us to respond and react to the interviewee's answers flexible. This way also supported the effort to create a conversional climate during the interview so that it was easier for the dialog partner to talk about the organization without thinking about what the next question would be.
3.5 Creditability
According to Yin four criteria allow the researcher to test the scientific quality of his research. These four criteria are the construct validity, the internal and external validity, and the reliability of the research.45
3.5.1 Construct Validity
Construct validity means to establish "correct operational measures for the concepts that are studied"46. The level of construct validity is increased by using multiple sources of evidence and establishing a chain of evidence. While our theoretical data derived from books, articles and research reports, our empirical one came from the survey, the interview with the organization's representative, observation of the organization's website and publications of
44
Imperatives from Adams & Schvaneveldt (1985) and Shaffir & Stebbins (1991), in: Bulla, M. & Starr-Glass, (2005), Marketing and non-profit organizations in the Czech Repdublic.
45 D. 46
Yin, R. K. (2003), Case Study Research: Design and Methods (3rrd ed.). Yin, R. K. (2003), Case Study Research: Design and Methods (3 ed.).
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the organization itself. This proves that we used multiple sources in order not to be subjective in the data collection. We tried to establish a chain of evidence that allows the reader to follow the steps from the research question to the conclusions. Our suporvisor and our opponent groups secured that we fulfilled this condition by giving us important advices during the writing process of the thesis.
3.5.2 Internal Validity
Internal validity deals with "establishing a causal relationship, whereby certain conditions are shown to lead to other conditions"47. According to Yin, internal validity is only important for explanatory case studies in which causal relationships are examined. Our thesis is mainly exploratory and does not deal with causal relationships so that the criterion of internal validity is unimportant for us.
3.5.3 External Validity
External validity means to state "the domain to which a study's findings can be generalized"48. Therefore the theory has to be tested in several different settings and the findings have to be the same. Because we had a response of more than 100 questionnaires we had the possibility to generalize if the findings which were similar in a majority of the questionnaires. Nevertheless, as a result of our limitation of access to the organizations themselves, the findings of the interview with Greenpeace Germany cannot be generalized in a large extent as it is required for being verified on universal level.
3.5.4 Reliability
The task of the reliability test is to demonstrate "that the operations of the study - such as the data collection procedures - can be repeated with the same results"49. Therefore the objective is to minimize the study's errors and biases. Our study was based on a questionnaire among the public and an interview with the fundraising assistant of Greenpeace Germany, so that our interpretations and conclusions also rely on the answers of these persons, which might be subjective. We reduced this weakness by asking a larger amount of people for the survey.
47 48 49
Yin, R. K. (2003), Case Study Research: Design and Methods (3rrdd ed.). Yin, R. K. (2003), Case Study Research: Design and Methods (3rd ed.). Yin, R. K. (2003), Case Study Research: Design and Methods (3 ed.).
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While interpreting the interview with Christine Busch we took publications of Greenpeace into account, because these data represent a more objective statement of the organization. To conclude, every researcher or investigator who will use the same interview and questionnaire partners as we did should come to the same conclusions. To ensure our reliability we explained every step we have taken in a detailed way in order to give the objective observer a guideline how to repeat our research process and to come to the same conclusions.
3.6 Summary of Methodology
The following table gives the reader a summary about the methodology used in this thesis: General methodology Research strategy Inductive vs. deductive research Positivistic vs. hermeneutic paradigm Qualitative vs. quantitative approach Theoretical data collection Empirical data collection Creditability Table 3: Summary of methodology. Thesis methodology Survey (with a small case study part) Inductive research Hermeneutic paradigm Qualitative approach Books, articles, research reports, Internet Survey among the public; Interview with organization's representative Construct validity, external validity, reliability
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4. THEORY
In this chapter we present the theoretical background of this thesis. Because our focus was on marketing and communication by non-profit organizations we first briefly define the term nonprofit organization. In the second step we introduce the aims of non-profit organizations. The following parts deal with how these aims can be achieved: Communication models, the marketing mix, guerrilla marketing, the promotional mix, and word of mouth are presented in this stage.
4.1 Non-Profit Organizations
Before talking about the non-profit sector is it useful to categorize those organizations by the nature of the work they do. The standard of the "International Classification of Nonprofit Organizations" (ICNPO) is a useful tool to classify non-profit organizations, but also has some shortcomings which are that some organizations cannot be classified to only one group. The classification is as follows:
Table 4: Classification of non-profit organizations according to the ICNPO But this classification does not describe what the non-profit sector exactly is. There is a lot of different terminology for the same type of organization. In literature one can find the terms notfor-profit [NFP], non-profit organization [NPO], non-governmental organization [NGO], non government funded organization [NGFO], non-business organization [NBO], non-profit
26
Chapter 4 corporation [NPC], private voluntary organizations [PVOs], the 'voluntary sector' and the 'third sector'.50 All these different terms refer to one and the same: the non-profit sector.
Theory
The other question is what a non-profit organization is? According to Sergeant a non-profit organization may be defined as "one that exists to provide for the general betterment of society, through the marshalling of appropriate resources and/or the provision of physical goods and services. Such organizations do not exist to provide personal profit or gain and do not, as a result, distribute profits or surpluses to shareholders or members. They may employ staff and engage in revenue-generating activities designed to assist them in fulfilling their mission."51
Another quite similar definition is that a non-profit organization is "one that has committed legally not to distribute any net earnings (profits) to individuals with control over it such as members, officers, directors, or trustees. It may pay them for services rendered and goods provided."52
In the following definition the reliability of the organization's director is included. "A legal structure authorized by state law allowing people to come together to either benefit members of an organization (a club, or mutual benefit society) or for some public purpose (such as a hospital, environmental organization or literary society). Non-profit corporations, despite the name, can make a profit, but the business cannot be designed primarily for profit-making purposes, and the profits must be used for the benefit of the organization or purpose the corporation was created to help. When a non-profit corporation dissolves, any remaining assets must be distributed to another non-profit, not to board members. As with for-profit corporations, directors of non-profit corporations are normally shielded from personal liability for the organization's debts."53
50 51 52 53
Sargeant, A. (1999), Marketing for Nonprofit Organizations. Sargeant, A. (1999), Marketing for Nonprofit Organizations.http://economics.about.com/cs/economicsglossary/g/nonprofit.htmhttp://www.nolo.com/definition.cfm/term/BAEAC86A-2B5A-4B59-95070F88FB82326E
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4.2 Aims of the Marketing of Non-Profit Organizations
Only because non-profit organizations have not to sell any goods or services as part of their core business, does not mean that they do not have to do marketing efforts. According to the view that the exchange of value for money is the core phenomenon in marketing, "a lot of the standard models and concepts have to a large extent been geared towards the task of creating exchanges"54. "The adaptation of marketing to all productive systems which perform services for thirds is based on the belief that market exchanges take also place when they are not compensated with money."55 While companies often used and use the "major part of their marketing communication budget for attracting new customers"56, "non-profit organizations spent a higher share of their resources for caring about the current donors"57.
The primary goal of non-profit marketing is to reach its social targets which depend on the specific field the organization is active in. Despite of the different foci each organization has, the overall goals of marketing and communication are quite similar in all sectors. The most important aims are fundraising, increasing the support for certain campaigns, volunteer assistance and improving the image of the organizations and as well as increasing the interest in certain activity fields.
Fundraising is an important pillar of the non-profit organization to reach the goals they want to reach. This term fundraising covers all efforts directed to gain money. Apart from caring for the relationships with current donors activities to gain new donors and financiers are part of the fundraising task. The organizations have to choose how much of their fundraising budget they want to use for donor recruitment or donor development. According to Sergeant, recruiting new donors for an organization is probably one of the most difficult tasks for fundraisers. Nevertheless spending the budget is not free of risk, because there is no guarantee that the resources expended will be earned back in a short period of time. Therefore, investing in new donors has to be seen as a long-term investment. As soon as the organization has donors, they can benefit from the relationship they have with them.
54 55
Grönroos, C. (2001), Service Management and Marketing: A Customer Relationship Management Approach. Schäflein, S. (1994), Freizeit als Faktor der Stadtentwicklungspolitik und -planung. Stadtmarketing für mehr
5L6ebensqualität. 57
Grönroos, C. (2001), Service Management and Marketing: A Customer Relationshthip Management Approach. Statement of Christine Busch (Greenpeace Germany) in the interview on April 30 , 2007.
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Chapter 4 The donors can be divided into two groups. Namely the donors that give a small sum of money and the donors that give a large sum of money. Both are very interesting for the
Theory
organization, because they are interested and enthusiastic about the nature of the cause. On the other hand the organization has to pay a special interest in the donors that give a large sum of money.58
The second aim of a non-profit organization is to attract people to become a volunteer for the organization. Without volunteers a non-profit organization is unable to function. A NPO needs volunteers to reach its goals. The unpaid employees are an element of the nature of a non-profit organization.
The third aim is to get support for the nature of cause of the organization and make the general public aware of the existence of the organization. For these two tasks is it important to get publicity in the media. The awareness among the general public can help to attract new donors or to develop existing donors as well as that it helps spreading the message of the organization. Not only the awareness for the organization itself is important, but also the awareness for the tasks of the organization. With higher awareness and media coverage is it for the organization easier to reach their goals.
4.3 Strategies and Methods to Achieve the Aims
In order to achieve their aims organizations have several strategies how they can act and different methods and tools to be used but there are also coherences to be aware of. In the following a range of them is presented under the two sub areas communication and marketing.
4.3.1. Communication
Communication is a substantial part of the interactive marketing process. 59 Regardless if the organization is acting for profit or not, there are always messages which are communicated whether they are intended or unintended. As already Watzlawick stated, one cannot not
58 59
Sargeant, A. (1999), Marketing for Nonprofit Organizations. Grönroos, C. (2001), Service Management and Marketing: A Customer Relationship Management Approach.
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communicate because behaviour does not have a counterpart, there is no anti-behaviour.60 In order that the customers/end users, or in the case of non-profit organizations fundraisers and the public, understand the messages in the way it is intended by the organizations, the planning of communication is a central field.
4.3.1.1 The Sender - Receiver Model Each basic model of communication consists of four important elements. The first two are the sender and the receiver, while the involved communications tools are the message and the channel. Communication can be defined as the process of transmission of information of an originator to a receiver by means of the use of a message that it goes from one to another across a channel.61 Belch and Belch illustrate the connections between the elements and the within the framework arising functions of encoding, decoding, response/feedback and noise as follows:
Figure 6: The basic model of communication (Source: Belch & Belch, 2004). The source/sender which can either be an individual or a non personal entity is the starting point in the process information transmission. By selecting the words, pictures, style and symbols the source configures how they want to represent the message sent to the receiver. This process, when all the ideas and thoughts of the source are put into a symbolic form, is called encoding.62 The aim of the source is to encode the message in a way that the receiver
60 61
Watzlawick, P., & Beavin, J. H., & Jackson, D. D. (1967), Some tentative axioms of communication.http://www.mind-graph.net/foundations/linguistic/communication.htm 62 Belch, G. E. & Belch, M. A. (2004), Advertising and Promotion: An integrated Marketing Communications Perspective (6th ed.).
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understands the intended meaning. Therefore the sender should only use words, symbols and signs that are significant for the target group of the message.
The message consists of the information and the meaning that the sender wants to deliver. The form in which the message is presented must be appropriate for the channel that is being usedfor the communication.63 Verbal or non-verbal, and written or oral are some of the forms a message can have.
The method used for communicating the message towards the receiver is the channel. Personal and non-personal communication are the two possible categories. The personal communication is also called face-to-face communication. Expressions of these channels are friends, workers, family members, associates or other people the sender is in contact with. While the message is only sent do a view persons at a time by face-to-face communication, the nonpersonal channels reaches many individuals at the same time. Several kinds of mass media are examples for this channel type.
The receiver is the one to who the message is addressed. In order to understand the message it has to be decoded. At the end of the decoding process, which is influenced by the receiver's previous experience, knowledge or actual mood, the origin thoughts of the message should occur. If the receiver interprets, or in other words decodes, the message in a different way than it was decoded by the sender, the information he got is different from the one projected by the sender. A second problem is that the message is affected by noises during the transmission process. This noise is unplanned interference or torsion. It could also appear if the sender and the receiver do not have the common ground. It leads to an improper encoding of the message.
Up to this stage the communication was limited to one way. But in order to be successful four the sender the receiver should give a response. These actions can occur instantly, delayed or even not be able to be observed. The sender is furthermore interested in feedback in order to know how to decode the message and send it in the future.64
63
Belch, G. E. & Belch, M. A. (2004), Advertising and Promotion: An integrated Marketing Communications
P4erspective (6th ed.). 6 Belch, G. E. & Belch, M. A. (2004), Advertising and Promotion: An integrated Marketing Communications Perspective (6th ed.).
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4.3.1.2 Changing Perceptions and Expectations The borderline question of this chapter is what the donors and the public are expecting from an organisation, how they perceive the actions and behaviour of an organization and if these expectations and perceptions should be managed. It is obvious that the organization is not able to control the customers and therefore cannot and should not manage them.65 Similarly the nonprofit organizations cannot control their donors and should not manage them. But relationships itself can and should be managed.66 It is not easy to change people's minds, sometimes it is even impossible. But an organization should know what the public and especially the donors are thinking, particularly about the organization and its efforts. Even if the attitudes cannot be changed, the expectations of the people can be managed.
Ojasalo presents a dynamic model of expectations which describes the development during the relationship:
Figure 7: A dynamic model of expectations (Source: Ojasalo, J., 1999, extracted from Grönroos, 2002)
A fuzzy expectation exists when an individual expects that a problem is solved but does not have a clear understanding of what should be done.67 The challenge for the organization is to try to make these expectations explicit, not only to be able to fulfil it like it is the case for for- profit companies, but also for the use of not getting an image of an inactive organization. It is
65 66 67
Hougaard, S. & Bjerre, M. (2002), Strategic Relationship Marketing. Hougaard, S. & Bjerre, M. (2002), Strategic Relationship Marketing. Grönroos, C. (2001), Service Management and Marketing: A Customer Relationship Management Approach.
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Chapter 4 better to state in a clear way that expectations cannot be fulfilled than to risk an image decrease and bad word of mouth in the public.
Theory
Explicit expectations are those where it is clear what the individual wants. These expectations can be realistic or unrealistic. While realistic ones can be fulfilled and will contribute positively to the organization's image and fundraising income; unrealistic ones are very dangerous because the individual expects the organizations to take certain actions which they do not want to take. This could lead to dissatisfaction and decreasing support. Implicit expectations are the ones the individuals take for granted to be fulfilled by the organizations. The problem in this field arises when the organization is not aware of these takenfor-granted expectations. Therefore, the intention is to make these implicit expectations to explicit ones. The other direction also appears, but the organizations should try to limit the amount of explicit expectations which become implicit ones.
The transformation of a consumer model for hospitals by Baron-Epel et al.68 to fundraising made by the authors of this thesis illustrates the outcome of unsatisfied expectations:
Figure 8: Relationship between donor's expectation, satisfaction and future donations
68
Baron-Epel, O. & Dushenat, M. & Friedman, N. (2001), Evaluation of the consumer model: relationship between patients' expectations, perceptions and satisfaction with care.
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Chapter 4 The expectations of an interaction determine to a certain amount how this interaction is
Theory
perceived. In the customer relationship theory customers with lower expectations perceives the quality of a certain service level higher than customers with high expectations who a served on the same level. "The gap between the expected service and the perceived service is a result of four other gaps in the service quality model."69
4.3.1.3 Building and Enhancing Relationships In a recent study by O'Neil on 275 donors of a non-profit organization the association between the perceptions of public relationships and donor support where measured. "The findings of this study demonstrate long-term, successful public relationships impact behaviour."70 The model used in the O'Neil-study is an adaptation of Grunig71. Grunig's scholarly work is also the starting point for the four models of fundraising developed by Kelly. The two dimensions which form these models are the kind of the communication in the relationship (one-way communication versus two-way communication) and the balance of the intended effects (asymmetrical balance versus symmetrical balance). The first model is called 'press agency model' and characterized by one-way communication and an asymmetrical balance of intended affects. "This model is using the axiom 'There is a sucker born every minute'"72 and propagandizes a cause with emotional appeals that may or may not be entirely factual. The 'public information model' also consists of one-way communication but with a symmetrical balance. This means that truth and complete information are important because "donors are enlightened rather than emotionally hoodwinked"73. The third model consists of two-way communication and asymmetrical balance or intended effects. "It was developed in the 1920ies but is still the dominant one today." 74 Research is done by fundraisers on the donor's interests so that persuasive messages can be developed and communicated for planned campaigns which are tailored to the donor's desires. The fourth model is also characterized by two way communication but it is the only model in which donors are engaged as serious partners and collaborators rather than as repositories of
69 70
Grönroos, C. (2001), Service Management and Marketing: A Customer Relationship Management Approach. O'Neil, J. (2007), The link between strong public relationships and donor support. 71 Gruning developed four models of public relations, each formed by two criteria which were first the kind of communication [one-way, two way] and second the balance of the intended effects [asymmetrical, systrementical]. These models can for example be found in the article "Models of public relations and communications" (1992) or in the book "Managing public relations" (1984) which was written together with Hunt. 72 Hall, M. R. (2005), Building on Relationships: A Fundraising Approach for Community Colleges. 73 Sheehan, R. M. (2003), Fundraising Management. Sheehan, R. M. (2003), Fundraising Management.
74
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money. According to Kelly "these model is the optimal one because the organizations provide something that the public needs and values and the public provides something the organizations needs and values"75. It has to be stated that these interaction is more likely to happen on a regional or local level than on a global one. Nevertheless, the communication between the organization and the public has to be managed in order to build beneficial relationships.
Finally, one has to say "many other thoughtful fundraisers agree that relationships are the key to fundraising success"76.
4.3.2 Marketing Mix
Each message or other expression of communication from a company to the end user is part of marketing. But what is marketing? "Marketing consists of individual and organizational activities that facilitate and expedite satisfying exchange relationships in a dynamic environment through the creation, distribution, promotion, and pricing of goods, services, and ideas."77 In this definition made by Kotler one recognizes that the marketing mix consist out of 4 P's. These four P's are product, price, place and promotion.78
Figure 9: The 4 P's of marketing (Source:http://www.netmba.com/marketing/mix)
75 76 77 78
Hall, M. R. (2005), Building on Relationships: A Fundraising Approach for Community Colleges. Hall, M. R. (2005), Building on Relationships: A Fundraising Approach for Community Colleges. Dibb, S. & Simkin, L. & Pride, W. M. & Ferrell, O. C. (1994), Marketing: Concepts and Stthrategies (2nd ed.). Kotler, P. & Wong, V. & Saunders, J. & Armstrong, G. (2005), Principles of Marketing (4 ed.).
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The four p's form the basis for each single marketing program of an organization. But modern marketing calls for more than just producing good products, selling them for a price with a satisfying margin and making the products available for end users. Communication is also an essential part of the marketing mix.
Kotler states that the P of product "includes more than just tangible goods. Products include physical objects, services, persons, places, organizations, ideas or mixes of these entities"79. The P of place deals with how the product is distributed to the end users or potential end users. The P of price refers to the "sum of all the values that consumers exchange for the benefits of having or using the product"80. The P of promotion can be described with the promotion mix which consists of "the specific blend of advertising, personal selling, sales promotion, public relations and direct marketing tools that the company uses to pursue its advertising and marketing objectives"81.
4.3.3 Guerrilla Marketing
Guerrilla marketing is a loosely defined term. Ives gives the definition that it is "a broad range of advertising methods that strive to strike when people least expect it. Though publicity stunts have been turning heads forever, mainstream marketers are increasingly turning to guerrilla tactics as consumers prove more difficult to reach with traditional advertising"82. Levinson is a well-known author in this field and defines guerrilla marketing as an unconventional way of performing marketing activities (primarily promotion) on a very low budget. Instead of monetary resources time, creativity, and imagination are invested. The general view has in common that guerrilla marketing is unconventional marketing with the use of unconventional communication channels. Furthermore, there is a change visible from the necessary need of low costs towards the use of hit and run tactics without imperative low costs. Nevertheless it is still possible to do guerrilla marketing with less financial resources.
The senders of information have developed different promotional tools to get through the jungle of marketing. Some of these tools are seen as guerrilla marketing. These are in specific:
79 80 81 82
Kotler, P. & Wong, V. & Saunders, J. & Armstrong, G. (2005), Principles of Marketing (4th ed.). Kotler, P. & Wong, V. & Saunders, J. & Armstrong, G. (2005), Principles of Marketing (4th ed.). Kotler, P. & Wong, V. & Saunders, J. & Armstrong, G. (2005), Principles of Marketing (4th ed.). Ives, N. (2004). Guerrilla campaigns are going to extremes, but will the message stick?
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Chapter 4 Viral Marketing According to Marsden & Kirby viral marketing "describes any strategy that encourages
Theory
individuals to pass on a marketing message to others, creating the potential for exponential growth in the message's exposure and influence. Like viruses, such strategies take advantage of rapid multiplication to explode the message to thousands, perhaps to millions"83. Some marketers see the marketing activities of viral marketing as the digital form of word of mouth. The Internet provides forums, chat rooms, blogs, video sites and instant messaging programs. The idea behind viral marketing is to create a buzz, discussion on the Internet and especially on the targeted markets forums and websites.84
Live Buzz Marketing The word buzz is a slang word, but originally it comes from the sound that a bee makes, a buzzing sound. According to Marsden & Kirby "live buzz marketing is a technique that uses an event or performance to create a buzz"85. There are two kinds of live buzz marketing. One is 'live peer-to-peer' and the other 'live performer-to-peer' marketing. When the general public is spreading the word about a specific product this is called live peer-to-peer marketing. The persons that are talking about a specific product have the self-evaluation of being modern and having knowledge of the area the product is situated in. The live performer-to-peer marketing is present when high qualified and trained persons, sometimes called performers, are hired by an organization in order to create a buzz. This method has the advantage that the buzz can be controlled to a certain level of the spread, but on the other hand the disadvantage that it is not for free. Marsden & Kirby believe that live buzz marketing can be a good tool for an organization who wants to try a new way of marketing to reach end users.
4.3.4 Promotional Mix
Advertising is one of the most visible components of the promotional mix, but what is advertising? Advertising is according to Kotler "any paid form of non-personal presentation and promotion of ideas, goods, services by an identified sponsor"86. A closer look to this sentence gives us the words paid and non-personal. The word paid means that one has to buy
83 84 85 86
Kirby, J. & Marsden, P. (2006), Connected Marketing: The Viral, Buzz and Word of Mouth Revolution. Kirby, J. & Marsden, P. (2006), Connected Marketing: The Viral, Buzz and Word of Mouth Revolution. Kirby, J. & Marsden, P. (2006), Connected Marketing: The Viral, Buzz and Word of MouththRevolution. Kotler, P. & Wong, V. & Saunders, J. & Armstrong, G. (2005), Principles of Marketing (4 ed.).
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Chapter 4 space in a particular channel to be able to send a message. The word non-personal can be interpreted as mass media, in other words without a direct opportunity for feedback.
Theory
The attribute that advertising has no direct opportunity for feedback has to be considered when the reaction of the people to the messages is investigated. The second character of advertising is that it is mass media. A lot of people are reached on the same time, but with a lot of waste outside the target group and the phenomenon of blocking the message.87
Direct marketing is the fastest growing form of promotion in the US economy88. According to Bennett direct marketing are "direct connections to carefully targeted individual consumers both to obtain an immediate response and to cultivate lasting customer relationships by the use of telephone, mail, fax, email, the Internet and other tools to communicate directly with specific customers"89. Direct marketing is more than only direct mailing campaigns or telephone campaigns. Direct marketing consists also out of customer database management, how to use telemarketing and direct response ads through direct mail. A relatively new way of direct marketing is the Internet. This medium increased the opportunities for direct marketing because by the use of cookies customers can be targeted individually. The Direct Marketing association gives another definition of direct marketing: "Direct marketing is an interactive marketing system that uses one or more advertising media to affect a measurable response and/or transaction at any location".
The next step in the promotional mix is public relations and publicity. A lot of times these two terms are used in the same sentence. Publicity, according to the American Marketing Association, "refers to any kind of non personal communications regarding a product, service, an organization, brand or an idea that not is directly paid"90. This means that the publicity comes from some kind of activity in the media like, news story, editorial, or announcement of a product. It is related to advertising in the sense of non-personal and mass media. The biggest difference is that one can control this to a lower extent, because one does not directly pay for it. It is a cheap form of marketing, since one can get a lot of space in different communication channels without spending many resources, but one cannot control what the different communication channels like TV or the newspaper say about the organization. According to
87 88 89 90
Welsch, H. P. (2004), Entrepreneurship: the way ahead. Belch, G. E., & Belch, M.A. (2004), Advertising and Prodmotion. Bennett, P. D. (1995), Dictionary of Marketing terms (2n ed.).http://www.marketingpower.com/mg-dictionary.php?SearchFor=publicity&Searched=1
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Kotler, the advantage of publicity is that the receivers are tending to perceive the message as more reliable then advertising.91 Not only is the reliability a plus of publicity, also that PR can reach many prospects that normally avoid and block themselves from salespeople and advertisements is an advantage. The reason is that the people regard it as news instead of a sales directed communication.92 On the other hand negative stories can cause a lot of damage to a company or organization.
Public relations can be used to control the reports in the media by providing information. But what does public relations exactly mean? The American Marketing Association describes it as "the form of communication management that seeks to make use of publicity and other non paid forms of promotion and information to influence the feelings, opinions, or beliefs about the company, its products or services, or about the value of the product or service or the activities of the organization to buyers, prospects, or other stakeholders". 93 "PR as a communication tool can take over several functions of traditional conventional marketing and advertising."94
Personal selling is the next part in the promotion mix. It is a form that exists out of person-toperson communication in which the firm's sales force attempts to persuade prospective buyers of the firm's product. This is a more direct form of marketing then for example advertising. The seller can constantly feel the reaction of the prospective buyer and can adjust the sales method. This method is also useful where a fast feedback procedure is needed and one wants to know if the campaign is successful or not.95
Internet and interactive marketing are the last part of the promotion mix. Because of the interactive character, it is possible to have more back and forth movements in the information. The users can easily participate and modify the form and content they receive or send in real time. 96 Another character of the Internet is that a receiver can look for more information and have interaction with other users at the same time.
91 92 93 94 95 96
Kotler, P. & Wong, V. & Saunders, J. & Armstrong, G. (2005), Principles of Marketing (4th ed.). Kotler, P. & Wong, V. & Saunders, J. & Armstrong, G. (2005), Principles of Marketing (4th ed.).http://www.marketingpower.com/mg-dictionary.php?Searched=1&SearchFor=public relations Kotler, P. & Wong, V. & Saunders, J. & Armstrong, G. (2005), Principles of Marketing (4th ed.). Kotler, P. & Wong, V. & Saunders, J. & Armstrong, G. (2005), Principles of Marketing (4th ed.). Belch, G. E., & Belch, M. A. (2004), Advertising and Promotion.
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4.3.5 Word of Mouth
Mouth to mouth communication is a very powerful source of information for customers97 and potential customers. These are in the case of non-profit organizations present and future volunteers, donators and supporters. Word of mouth is "oral person-to-person communication between a receiver and a communicator whom the receiver perceives as non-commercial, concerning a brand, a product or a service"98. It occurs when two or more people talk and discuss a commercial topic. Word of mouth is not always positive, it can be also negative. Potential consumers are looking for word of mouth when they think their purchase has some kind of risk. They can find positive word of mouth or negative word of mouth. Word of mouth about a certain product has a lot of influence especially when it comes from friends or family.99 Therefore, word of mouth is a powerful tool in the decision making process of people who are searching for the right product.
97
Smith, R. E. & Vogt, C. A. (1995), The Effects of Integrating Advertising and Negative Word of Mouth Communications on Message Processing and Response. 98 Kirby, J. & Marsden, P. (2006), Connected Marketing: The Viral, Buzz and Word of Mouth Revolution. 99 Kirby, J. & Marsden, P. (2006), Connected Marketing: The Viral, Buzz and Word of Mouth Revolution.
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Empirical Findings
5. EMPIRICAL FINDINGS
In this chapter we present the empirical findings of the questionnaire and the findings of the interview we conducted with the fundraising representative of Greenpeace Germany.
5.1 Findings of the Questionnaire
In the following the response of the 103 people who participated in our survey is shown. This presentation is split into two sections. At first the demographic background of the interviewees is presented in 5.1.1, than their answer towards our questions about the thesis topic are given in 5.1.2 and its subchapters. Nevertheless, in order to understand the presentation of the findings, some notes are helpful: - The questionnaire itself can be found in appendix B. - In the questionnaire the term marketing includes all activities concerning communication, public relations and advertising. - When the questionnaire was handed out to public it was not separated in the subchapters mentioned in the presentation of the findings (chapter 5.1.2), but we the empirical findings in order to give the reader a better understanding of the different topics within the questionnaire. - Because the focus of this thesis is the attitude of the public concerning the use of marketing and communication by NPOs, we choose to present the answers that are in these subchapters (5.1.2.4 and 5.1.2.5) in tables. - To get a better understanding of the tables it is useful to know how they are built up. At first the total amount of "yes" and "no"-answers is given and than a single table is made for each group. The first column contains the answer that was given, the second one the amount of persons that gave this answer and in the last column the percentage of interviewees who gave this answer related to the total amount of answers given for this "yes" or "no"-group is shown. - To make the findings easier to read and to detect the predominant meaning of the public, we chose not to present every answer separately in a "word by word"-style. We identified the underlying meaning of each answer and combined similar ones. - As a result of questions which have been left void by some interviewees, the total amount of answers is not always 103 or a multiple of it. The amount of persons who did not reply is not mentioned separately, but results from the difference of "yes" plus "no"-answers to 103. - As a result of rounding the total percentage of all answers has not to be 100. 41
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5.1.1 Demographic Background of the Interviewees
The tables five till ten give the demographic characteristics of the respondents. With regard to the sex males were marginal over-represented at 54.4 per cent. The majority of the respondents were under 36 years of age. The largest fraction of the interviewees is clerk, followed by students and workers. Regarding the income, more than 50 per cent earn less than 2000 € a month. Only 15.5 per cent of the interviewees live in a household consisting of more than three persons. The nationalities are approximately uniformly distributed, although the Dutch are the largest group.
Gender Female Male
n 56 47
% 54.4 45.6
Income (befor0e taxes in €/month) < 100 1000 - 1999 2000 - 2999 3000 - 3999 > 4000
n 25 29 23 16 10
% 24.3 28.2 22.3 15.5 9.7
Table 5: Gender of respondents
Age < 18 19 - 25 26 - 35 36 - 65 > 65 n 4 33 27 29 10 % 3.9 32.0 26.2 28.2 9.7
Table 8: Income of respondents
Persons in household Living alone Two Three Four Five More than five n 28 37 33 11 23 % 27.2 35.9 32.0 10.7 1.92 .9
Table 6: Age of respondents
Profession Student Worker Clerk Freelancer Retired n 30 23 35 7 8 % 29.1 22.3 34.0 6.8 7.8
Table 9: Persons in the household
Nationality Dutch Swedish German n 36 34 33 % 35.0 33.0 32.0
Table 7: Profession of respondents
Table 10: Nationality of respondents
5.1.2 Interviewees' Attitudes towards Non-Profit Organizations
The following five subchapters of the questionnaire, which are presented in this chapter, represent the different areas of our survey. The first subchapter deals with the interest of the public in non-profit organizations and consists only of question 7. Afterwards, the support of NPOs by the public is the subject of consideration in subchapter two (questions 8 - 13). It includes an evaluation of the actual and past support of financial or personal aid. Also the reasons for supporting or not supporting an 42
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organization are given. The two questions (14 - 15) which form the third subchapter, deal with the knowledge that the public has about NPOs in general, and about the understanding what certain NPOs are doing. The fourth chapter (questions 16 - 29) is the main part of our investigation and goes deeper into the relation between marketing and communication within NPOs. It deals with the question how and why marketing can or cannot be used by NPOs. Furthermore, the actual and future state of marketing in NPO-sector is evaluated. This subchapter also contains information about the recognition of marketing expressions by the public. Also the criteria NPOs have to fulfil before the public is willing to donate money are presented. The fifth and final chapter (questions 30 - 34) lasts its focus on the relationship between guerrilla marketing and NPOs. It begins with an evaluation of what guerrilla marketing is for the public. After an explanation "what guerrilla marketing is", the public judgement of it is evaluated. The main focus lies on the purposes NPOs should use guerrilla marketing for and what the main aspect that makes guerrilla marketing interesting is.
5.1.2.1 Interest in Non-Profit Organizations The question "are you interested in NPOs?" was answered with yes by 76 persons (73.8 %), with no by 20 (19.4 %), while 7 (6.8 %) did not answer this question. The reasons for "Yes" answers were: 1. NPOs do good work which the government cannot or does not do. 2. The non-profit organizations provide the society with extra benefits. 3. NPOs have more valuable goals than for-profit organizations. 4. NPOs deal with important social and environmental issues. 5. Voluntary work is good. 6. NPOs are less corrupt than companies. The reasons for "No" answers were: 1. NPOs only do things which governments should do. 2. I am to busy with my own life and do not have any time to get involved in NPOs. 3. NPOs are spending too much money aside of their core field of activity. 4. The do not offer suitable jobs for me.
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5.1.2.2 Support of Non-Profit Organizations The question "do you or have you supported a NPO?" was answered with "Yes" by 59 interviewees (57.3 %), while 43 (41.7 %) said "No". The reasons for "Yes" answers were: 1. NPOs help people who live in worse conditions than I do. 2. Supporting NPOs is the easiest way for me to support other people. 3. I care about the environment myself, but the NPOs have penetrating power to achieve improvements. 4. NPOs fit to my personal interest and beliefs. 5. After disasters and natural catastrophes money helps to rehabilitate. 6. I profited from NPOs. The reasons for "No" answers were: 1. NPOs are spending too much money aside of their core field of activity. 2. The NPOs pay to much money to their managing board, especially to their CEO. 3. I am not interested in NPOs. 4. I only donate money to local projects where I can directly see the result. 5. I had no contact to them.
49 (47.6 %) of the respondents supported or still support a NPO with money and 16 (15.5 %) as volunteers.
Out of the fifteen organizations the respondents support, the most mentioned five ones were: 1. The Red Cross 2. International Fund for Animal Welfare (IFAW) 3. Greenpeace 4. Bund für Umwelt und Naturschutz Deutschland [BUND] 5. United Nations Children's Fund [UNICEF] The other organizations named were: UNA Sweden, SOS Children Valley, Attac, BRIS, Doctors without Borders, Humanitas, CliniClowns, the World Wide Fund for Nature (WWF), and local sport clubs as well as churches.
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Regarding the organizations the interviewees supported in the past and do not support any more, only four organizations were named. These are: 1. Greenpeace 2. Amnesty International 3. IFAW 4. CliniClowns
The reasons why the respondents do not support the organizations any more are: 1. Problems in the organization (Improper use of money, stealing, personal disagreements) 2. I moved/changed to another NPO. 3. I want to support local projects and not multinational ones. 4. My financial situation does not allow it anymore. 5. NPOs judge structural relations wrong and make unsuitable improvement proposals as a reason of that. 6. My husband does not want it any more.
The answers for the question how the supported NPOs are chosen were: 1. The newspapers and the TV reported about campaigns the organizations did or help the organizations provided after a disaster. 2. The NPO had an information desk in the shopping area and convinced me to support them. 3. Information about the organizations by friends and the Internet. 4. Bus stop adverts, TV commercials, or postcards in magazines called my attention. 5. The organization sent a letter to me, presented themselves and asked for a donation. 6. A relative is working in this NPO.
5.1.2.3 Knowledge about Non-Profit Organizations When the 103 interviewees were asked to name five NPOs which are active in their country they mentioned 28 different organizations. The top seven ones were: 1. Greenpeace 2. The Red Cross 3. Amnesty International 4. UNICEF 5. W W F 6. International Fund for Animal Welfare (IFAW) 45
Chapter 5 7. Doctors without Borders
Empirical Findings
These are complemented by UNA Sweden, BRIS, IQ, local churches, Robert Bosch Stiftung, BUND, Humanitas, CliniClowns, World Health Organization [WHO], Attac, Technisches Hilfswerk (THW), SOS Children Valleys, World Vision, Malteser Hilfswerk, Caritas, Stiftung Warentest, United Nations [UN], Unesco, Misereor, Brot für die Welt, Bundesverbraucherzentrum and local sport clubs.
The answer what the specific organizations are doing and what they are standing for were answered as follows for the top-seven organizations: 1. Greenpeace: Care about the environment, air pollution, and animals. 2. The Red Cross: Provide disaster relief; provide medical care during events and offers lectures in first aid. 3. Amnesty International: Work in the field of human rights and try to influence politicians. 4. UNICEF: Care about children in developing countries. 5. WWF: Care about the nature and animals. 6. International Fund for Animal Welfare (IFAW): Care about animals and the nature. 7. Doctors without Borders: Provide medical help in less developed countries and conflict areas. The description of what the other organizations are doing can be found in the appendix D.
5.1.2.4 Marketing and Communication of Non-Profit Organizations When the interviewees were asked if "they have ever seen an advertisement, a TV or radio spot, a flyer or any other marketing effort from Greenpeace, Médicines sans Frontières (Doctors without Borders), the Red Cross, or Amnesty International and what the message was?" 49 (47.6 %) did not remember any commercial. The other answers are shown in table no. 11.
Description of the message by the interviewees "A letter in which they tried to create mercy and said they need money to help!" "An advertisement in the newspaper where the asked for donations for a certain project" "An billboard in the town for the protection of human rights" "A postcard in the newspaper to be sent to support a campaign" "It was an information desk in the street and they tried to find donators" "I remember that I saw one, but I do not know what the message was" "Take care about your environment" n 16 11 88 54 2 % 29.6 20.4 14.8 14.8 9.37 .43.7
Table 11: Description of the message by the respondents 46
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Empirical Findings
Out of the 54 people who recognized any form of marketing by the four mentioned NPOs 16 (29.6 %) that they liked the "spot, flyer, ad", but only 2 (12.5 %) were able to describe why. Both respondents said because they were "emotionally touched". 38 people (70.4 %) did not like it. There reasons given by the respondents are presented in table no. 12.
Reason "It was nothing special, just an ordinary advertisement / spot / flyer" "It has been the same for a lot of years" "Because the were asking for money" "If it would have been interesting I would have not forgotten the message" n 26 5 4 3 % 68.4 13.2 10.5 7.9
Table 12: Reasons why the respondents did not like the marketing expressions
Out of the 54 people who recognized a marketing campaign 6 (11.1 %) donated money or supported the organization personally afterwards. From 6 the people who did so, 4 (66.6 %) said the reason was that "they felt bad and had compassion" after recognizing the campaign. The other 2 (33.3%) became backers after the conversations at the information desks in the streets.
When the interviewees were asked if "they know some marketing expressions from any other NPO apart from Greenpeace, Médicines sans Frontières (Doctors without Borders), the Red Cross, or Amnesty International" 70 persons (68.0 %) said they do not know any. The 31 people (30.1 %) who do so know the expressions and the organization, which are specified in table no. 13.
Organization Several local one s IFAW SOS Kinderdorf CliniClowns World Vision Marketing Expression "Articles in regional newspapers where churches and sport clubs asked for financial and/or personal support" "TV commercial about saving animals as whales and tigers" "A letter from the children's village with postcards that can be used as gifts made by the kids" "Information desks in the streets with clown handing out read noses" "Advertisement in a TV guide and a TV commercial aiming to people to take a godparenthood for a child in the third world" "TV commercial where IQ presented one of their projects with which they wants to achieve a change of attitudes in the society that lead to slimmed-down alcohol consumption" "TV spot to encourage and inform children that they can call BRIS when they have problems in school or at home." "Flyer to implement the questions the United Nations are faced with into the daily life" Not remembered n 9 7 5 3 2 % 29.0 22.6 16.1 9.7 6.5
IQ BRIS UNA Sweden BUND
2 1 1 1
6.5 3.2 3.2 3.2
Table 13: Marketing expressions by other NPOs which the respondents named 47
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The question "do you think it is good that NPOs use marketing?" were answered with "Yes" by 58 persons (56.3 %) while 43 (41.7 %) said "No". The reasons mentioned by the yes- saying people are shown in table no. 14, the ones by the deniers in table no. 15.
Reason "The organizations have to inform the public about what they are doing and that exist. Otherwise the public does not know them" "NPOs are just like for-profit organizations" "There is competition in the fundraising market" "NPOs need a good reputation" No reason given n 31 12 7 5 3 % 53.4 20.7 12.1 8.6 5.2
Table 14: Reasons why marketing is good for NPOs
Reason "It is a waste of money" "NPOs should focus on their core foci" "NPOs do not have to do marketing" No reason given n 19 13 7 4 % 44.2 30.2 16.3 9.3
Table 15: Reasons why marketing is not good for NPOs
The next task for the respondents was to mark the two most important aims out of the four preselected ones "fundraising", "personal support", "spreading their message" and "improving their image" or to name another aim, for which marketing should be used by non- profit organizations. The results can be found in table no. 16.
Aim Spreading their message Fundraising Personal support Improving their image Else: Inform the public about fundraising Else: Increase the publicity Else: Influence political decision makers n 46 36 10 5 3 1 1 % 45.1 35.3 9.8 4.9 2.9 1.0 1.0
Table 16: Aims for which the NPOs should use marketing
The question if NPOs are more active in the marketing field than in the past was answered with "Yes" by 78 respondents (75.7 %), while 25 (24.3%) said "No". Only four people mentioned a reason for their judgement. Two of the "Yes"-group said "marketing and media have an increased importance in a global world". One member of the "No"-fraction said "nothing has changed" and another one even said "there were more advertisements for environmental friendly behaviour in the 90ies than there are today".
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Concerning the question what the people "think of NPOs spending money for marketing?" 74 persons (71.8 %) answered that it is okay, while 27 (26.2 %) replied that is it not okay. The explanations made by the persons who have nothing against expenditures for marketing can be found in table no. 17; the ones by the deniers in table no. 18.
Explanation "The NPOs have to inform the public about what they are doing" "Without marketing the NPOs would get less donations" "The NPOs have better intensions / messages than money driven companies" "NPOs need to attract more people" "NPOs and for-profit organizations are closely related nowadays, so the NPOs cannot behave like amateurs" "NPOs do good things" n 36 17 7 6 4 4 % 48.6 23.0 9.5 8.1 5.4 5.4
Table 17: Explanations why it is okay that NPOs spend money for marketing
Explanation "The money could be used in a more useful way" "Marketing is a waste of money for NPOs" "Non-profit and marketing are not fitting together" n 15 9 3 % 55.6 33.3 11.1
Table 18: Explanations why it is not okay that NPOs spend money for marketing
99 people (96.1 %) of the interviewees agreed to the statement: "If a non-profit organization is using money for marketing, they have to communicate this in a clear way to their financial supporters." The reasons why the people agreed to this statement are shown in table no. 19. The 3 persons (2.9 %) who disagreed explained this all three with the reason that they "believe that everything the NPOs do is the best for them and explanations cost just resources which can be used more useful".
Reason "People who donate money have the right to know how it is used by the NPO" "Transparency is a quality dimension of NPOs" "The organizations should even provide information about how the money is used every month, not only mention it in the annual report" "I would appreciate to read on the account statement for what the organization has used my donation in specific. For instance, 'we bought one desk or used the money you donated for campaign XY'." n 81 8 6 % 81.8 8.2 6.1
1
1.0
Table 19: Reasons for the need of statements of using money for marketing
As answer to the question "do you think that NPOs are acting more like for profit organizations in the marketing area?" 77 respondents (76.2 %) wrote "Yes"; 24 (23.8 %) "No". The statements made by both groups can be found in the tables no. 20 and no. 21.
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Explanation "There is more marketing around NPOs" "NPOs use the same methods as for profit ones do" "NPOs compete with other NPOs for money" "NPOs just do so" No comment given
Empirical Findings
n 33 27 12 3 2 % 42.9 35.1 15.6 3.9 2.6
Table 20: Explanations why NPOs act like profit orientated ones in the marketing area
Explanation NPOs marketing is done by volunteers" "NPOs do not use professional advertising agencies" "NPOs are not that professional as for-profit organizations are" "The messages and aims of NPOs are different" "Scandals and mistakes are more harmful for NPOs / they have more to loose" No comment given n %"In 8 33.3 6 25.0 4 16,7 3 12,5 2 8,3 1 4,2
Table 21: Explanations why NPOs do not act like profit orientated ones in the marketing area
When the interviewees were asked "do you think it is necessary that NPOs increase their marketing and communication activities?" 24 ones (23.3 %) respond with "Yes", while 72 (69.9 %) returned "No". The reasons made by the persons who recommend an increase for marketing can be found in table no. 22; the ones by the deniers in table no. 23.
Reason "NPOs have to profile themselves better and more clear" "NPOs have to inform the public in a better way about what their activities" "People are connected to networks (work, friends, family) but NPOs are not widespread in these networks" No comment given n 12 10 1 1 % 50.0 41.7 4.2 4.2
Table 22: Reasons for NPOs to increase their marketing and communications activities
Reason "NPOs are active enough in this field / The level of marketing is high enough" "I do not want more money to get wasted in marketing and communication" "The money should be used four real actions, relief - and not for marketing" "Marketing is not the main focus of these organisations" No comment given n 25 23 16 53 % 34.7 31.9 22.2 6.94 .2
Table 23: Reasons for NPOs not to increase their marketing and communication activities
The matter of professional marketing agencies used by non-profit organizations where questioned also. 76 interviewees (73.8 %) said they "also would donate money if the NPO is using professional marketing agencies, while 26 persons (25.2%) said they would not. The explanations by the donors are shown in table no. 24; the ones of the deniers can be found in table no. 25. 50
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Explanation "As long as not too much money is spend for using the agencies" "I have no problems with NPOs using professional agencies" "It is necessary for the NPOs in order to inform the public about their existence and activities" "The non-profit sector is getting more professional so the marketing should also become more professional" "A professional marketing shows that the whole NPO acts professional" "NPOs do not have to pay the agencies the same amount as companies have, they get the services for a smaller price"
n 18 18 15 12 7 4
% 23.7 23.7 19.7 15.8 9.2 5.3
Table 24: Explanations why people also donate if the NPO is using marketing agencies
Explanation "Professional agencies are expensive" "The NPO can also market themselves; there is no need for professionals" "The agencies do business in a different way then the NPOs do" "The agencies are not geared for NPOs" No comment given n 11 9 4 2 1 % 42.3 34.6 15.4 7.7 3.8
Table 25: Explanations why people do not donate if the NPO is using marketing agencies
The participants in our questionnaire were asked to name the two most important criteria NPOs have to fulfil in their marketing area in order that the interviewees support them. The four preselections as well as the answers can be found in table no. 26.
Criteria Honesty Openness The money should be used for activities, not for bureaucracy Quick response to arisen questions Else: Prove why they should get the money and not another NPO n 87 74 29 18 2 % 84.5 71.8 28.2 17.5 1.9
Table 26: Criteria the NPOs have to fulfil in order to receive support
The final question of the marketing and communication part was not related to NPOs directly any more, but evaluates the marketing expressions the respondents are annoyed with. The most important three out of the eight below presented expressions were asked to be named. The results are presented in table no. 27.
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Marketing Expression Phone calls Emails Flyers thrown into the mailbox Flyers handed out in the streets Commercials in the TV Other: People ringing at the front door Commercials in the radio Advertisements in newspapers / magazines Billboards in the town
Empirical Findings
n 97 71 48 31 18 15 7 5 4 % 94.2 68.9 46.6 30.1 17.5 14.6 6.8 4.9 3.9
Table 27: Marketing expressions the public is annoyed of
5.1.2.5 Guerrilla Marketing and Non-Profit Organizations The question "What is guerrilla marketing for you?" was answered with "I have never heard about it" by 64 persons (62.1 %). The answers of the 37 persons (35.9%) who knew about it are presented in table no. 28.
Description beyond the usual/common meanings of marketing" "Marketing that is not common" "Hit and run tactics in the marketing area" "Polarizes and stays in mind" "Marketing on a low / zero budget" "Includes activities in areas where people do not expect to be addressed" "It is spontaneous / surprising" "A good way to combine message and humour" "Marketing that is not done by the company itself" "Very aggressive marketing" "Marketing that contravenes the law" "Marketing that addresses persons who are interested in weapons" "Minimize the price to get market share" n %"Lies 5 13.5 5 13.5 4 10.8 4 10.8 4 10.8 3 8.1 3 8.1 2 5.4 2 5.4 2 5.4 1 2.7 1 2.7 1 2.7
Table 28: Public descriptions of guerrilla marketing The respond to the question "Do you think guerrilla marketing is a good tool in the marketing strategy of NPOs?" was answered with "Yes" by 58 persons (56.3%) and with "No" by 43 persons (41.7%). The reasons mentioned by the "Yes"-saying persons are presented in table no. 29 and the reasons by the "No"-saying people are shown in table no. 30.
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Reason "It is different so it will get attention and remembered better" "Easier to spread a message for an idea of a NPO than for a normal product" "Lower costs, maximum effects" "It annoys less then normal advertisements like for example commercials in the mailbox or TV advertisements" "It generates free publicity" "New ideas are interesting" „It serves as a platform to speak" "It is a way to make a difference in marketing"
Empirical Findings
n 17 13 12 8 3 3 1 1 % 29.3 22.4 20.7 13.8 5.2 5.2 1.7 1.7
Table 29: Reasons why guerrilla marketing is a good tool in marketing strategies of NPOs
Reason "NPOs should be open and honest about what they do and not hide themselves" "I think marketing and NPO do not fit together" "Marketing for NPOs is a waste of money even if it is guerrilla marketing" "Guerrilla marketing will harm the transparency of the NPO" "I am against using money in marketing, but I think I am more positive about guerrilla marketing if it is not that expensive as for example TV commercials are" "Older people are the main donators and they do not understand guerrilla marketing activities" "Guerrilla marketing is often in conflict with regulations or the law" n 18 76 5 4 2 1 4.7 2.3 % 41.9 16.3 14.0 11.6 9.3
Table 30: Reasons why guerrilla marketing is not a good tool in marketing strategies of NPOs
The question "Do you think guerrilla marketing can be used in all segments of NPOs?" was answered with "Yes" by 66 persons (64.0 %) and with "No" by 34 (33.0 %). The reasons given by "Yes"-answerers are shown in table no. 31, the ones of the deniers in table no. 32.
Reason "Guerrilla marketing is cheap" "Guerrilla marketing is an option, but there are differences between the organizations, so not all activities are suitable for each NPO" "Guerrilla marketing is a good way for all organizations, also for-profit ones" "Yes, because there are not many differences between NPOs" "Guerrilla marketing proved itself also in for profit organizations" N 28 21 9 6 2 % 42.4 31.8 13.6 9.1 3.0
Table 31: Reasons why guerrilla marketing can be used in all non-profit segments
Reason "Guerrilla marketing leads more likely to negative feedback, it is less serious and has an unreliable touch" "Marketing and NPOs do not fit together" "The segments of the NPOs are different. / Greenpeace is an aggressive NPO but Amnesty International is more quite. / The guerrilla marketing activity has to fit to the profile of the NPO and sometimes guerrilla marketing does not fit." No comment given N 20 7 6 1 % 58.8 20.6 17.6 2.9
Table 32: Reasons why guerrilla marketing can not be used in all non-profit segments 53
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Empirical Findings
The next task for the respondents was to mark the most important target a NPO should use guerrilla marketing for. The different preselected answer opportunities were "Fundraising", "Personal support", "Spreading their message", and "Improving their image". It was also possible to name another task not mentioned in our list. The replies are presented in table no. 33.
Tasks Spreading their message Personal support Fundraising Improving image n 64 15 11 11 % 62.1 14.6 10.7 10.7
Table 33: Tasks for which guerrilla marketing should be used
The final question was totally open. The interviewees had to answer the question: "What aspect of guerrilla marketing do you think is the most interesting one for NPOs?" 82 persons (79.6 %) gave a feedback which is shown in table no. 34.
Aspect "The possibility for low costs" "Spreading the message in a way that the audience is not recognizing that it is marketing" "The surprise factor" "Guerrilla marketing can help NPOs to become 'hip', 'hot' and 'in'." "The high attention it can get " "People will talk about it" "Attracting new supporters" "To produce a feeling that makes one feeling the action makes a difference" "Targeting the youth" "Guerrilla marketing is suitable for new technologies like internet with websites as Youtube, blogs, web specials and Buddy's in chat programs" "Guerrilla marketing is especially suitable for NPOs because it is a rather cheap way to spontaneously address people with actions, which they will remember. As NPOs have rather ideas/moral to "sell", those guerrilla marketing promotions are good ways to touch people emotionally and catch their attention. It is necessary that the actions stick out from new commonly used information stands and leaflet distribution in pedestrian areas." n 23 14 13 7 6 5 4 4 3 2 % 28.0 17.1 15.9 8.5 7.3 6.1 4.9 4.9 3.7 2.4
1
1.2
Table 34: The interesting aspects of guerrilla marketing for NPOs
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5.2 Findings of the Interview with Greenpeace Germany
Organization of the interview The interview with Greenpeace Germany was conducted on the 30 th of April 2007 by telephone. Besides the information gained with this telephone call, emails and an information package sent by post formed the empirical data. The contact person at Greenpeace was in all cases Christine Busch. The interview with her lasted approximately 60 minutes and we got a lot of information about Greenpeace's fundraising efforts. The guideline we had developed in advance of the interview can be found in the appendix C. It has to be noticed that even if the questions were formulated in detail, they were not posted one after another. They just served as a checklist that we did not forget an important question we wanted to ask.
Occupational background of the interviewee Christine Busch is fundraising assistant and works for Greenpeace since 1992. Although she never did a fundraising apprenticeship she is now ranged second in the hierarchy of the ten headed fundraising department. She entered Greenpeace as a foreign language correspondence who already worked as a volunteer for non-governmental organizations during her studies. In reason of that she had the ability to fulfil her dream and work for Greenpeace.
Facts about Greenpeace Greenpeace was founded 1971 by peace activists in Vancouver. The German office exists since 1980 and 211 people were employed by it in 2006. Greenpeace Germany has 550.000 sustaining members and received donations to the amount of 39.98 mill. € in 2005. Greenpeace has offices in more than 40 countries and conducts actions and campaigns in the whole world. Their purpose is "to point out environmental problems in the whole world in a creative and peaceful way in order to achieve solutions. The aim is a green and peaceful future for the world and the life on it in all its diversity."100 Christine said that this definition about Greenpeace is still valid. The offices in the different countries are formal independent but get help and are also controlled by Greenpeace International. Nevertheless, each office is responsible for the marketing, fundraising and communication activities itself. The given reasons for this
100
Brown, M. & May, J. (1991), The Greenpeace Story.
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Empirical Findings
structure are at the legal terms and conditions are different in all countries, and that the wealth situation of the population in different countries cannot be compared. Examples for these explanations are that collection authorizations only exist in Germany and that in countries as Russia or Brazil a few contributors have a higher part in the total of summation of donations because of a smaller middle class. To stay independent, donations of more than 250 € are handled individually to secure that they are not coming from companies, political parties, or persons who have powerful positions in corporations or policy. Furthermore, all donations that are bound to conditions, for example by an annotation "only for the whales", are denied if the donator insists on the specific purpose. Otherwise the pressure only to be active on certain fields could be too high.101
Fundraising in Germany By reason that Greenpeace does not take any money from governments, industries or political institutions it relies heavily on fundraising. 95% of their income comes from donations, either from sustaining members or one-time contributors. Despite the high importance of donations the sustaining members are not only needed for financial support. Greenpeace wants the supporters to be active in campaigns, to send mails to politicians and industries, to demonstrate or to block out companies who are not acting in accordance with the interests of Greenpeace. The average donation is 70 €. Donations of less than 100 € build 73.2 % (29.26 mill. €) income, while the ones of more than 500 € compose 2.5 % (1.01 mill. €). Heritages contribute 3.21 million Euros (8%) to the income. Out of one donated Euro, 87 cents are used for campaigns and information issues, 9 cents for administration and 4 cents to secure further donations, which mean they are used for fundraising. The key condition for any of the marketing campaigns is that the activity has to be cheap and that Greenpeace is able to measure the return on investment on every single fundraising campaign. For example, when advertisements in newspapers are done, Greenpeace always attaches a postcard the receivers of the message can use to respond. Thereby Greenpeace can measure how many people they have reached with the certain campaign and how much money is generated from these new supporters. In some cases Greenpeace Germany benefits
101
Wallmeyer, G. (1996), Der Scheck als Stimmzettel - Ziele und Methoden des Fundraising. In: Greenpeace (1996), Das Greenpeace-Buch: Reflexionen und Aktionen.
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by the use of the back sites of advertisements by ordinary companies, and in fewer cases also by space in newspapers and magazines that is donated by the publishers. In contrast to the low cost approach, the most successful campaign ever done was an expensive telephone campaign. In advance of the currency changeover all 550.000 sustaining members where called and asked if the want to round up their supporting contribution in order to make it even. 80 percent of the members did so. However, there has also been one campaign which totally failed. Greenpeace tried to corporate with Felicitas in the 90ies. Felicitas is a joint project of several brand manufacturers that visits families with newborns in order to convince them to buy highquality healthy products for the children and themselves. But the speculation that these families are likely to become sustaining members was wrong so that a lot of leaflets could be thrown away when the cooperation was ended after a few years. In order to measure if a single advertisement was successful Greenpeace evaluates the amount of new donators they have gained by each advertisement. This is possible due to the postcards which are part of the ad in the newspapers. As long as the new sustaining members pay back 75 % of the campaigns cost within one year, the specific newspaper is judged as good to do marketing in. This 75 % rule can also be described as a return on investment borderline of 0.75.
The use of professional marketing agencies Greenpeace Germany only uses professional agencies for direct dialog marketing, namely for information desks in shopping malls and pedestrian areas where professional try to convince people to become supporters. The other tasks for which an agency is used are layout and organizational issues of advertisements on homepages. But even if agencies are involved, the ideas and strategies are always developed by Greenpeace itself. According to Christine there are some rotten apples in the market of agencies so that Greenpeace supported the foundation of an agency and is now working together with it. A woman who worked in the past as volunteer for Greenpeace and had knowledge in marketing was supported to start her own business and is still the owner of the only agency Greenpeace Germany is using. The advantage of this approach is that Greenpeace has influence on the payment policy of the agencies employees and the social image according to an appraisement of Christine Busch.
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Chapter 5 Spreading of the expenditures
Empirical Findings
Greenpeace Germany spent 40.8 million € in 2005. 7.7 million Euros (18.9 %) were used for communication, 1.1 mill. € (2.7 %) for administration, 1.7 mill. € (4.2 %) for advertising, while 15.4 mill. € (37.9 %) were used for campaigns and information in Germany, and 12.4 mill. € (30.5 %) for international campaigns and provision of information. The 7.7 million Euros of the communication area were spend as follows in 2005: Greenpeace News 1.3 mill. € (16.9 %), care for sustaining members 2.8 mill. € (36.4 %), and information (as leaflets, billboards, movies, commercials and documentations) 3.6 mill. € (46.7 %). Under advertising fall activities such as activities as mailings, legacy brochures, information desks, adverts in print media and acquisition of new sustaining members. Christine stated that the fundraisers of Greenpeace Germany use 40% of their budget for the acquisition of new sustaining members, and spend the rest for information about campaigns and activities. But it has to be pointed out that a payment form is included in the "action- letters" the sustaining members get four or five times per year in order to be informed about actual environment topics and activities Greenpeace is doing. The budget of the fundraising departments amounts to approximately 5 million Euros per year. It has to be mentioned that fundraising is not mentioned as a separate area in the annual report; it is split into campaigning, communication and advertisement. The main part of the budget for acquisition of new members is used for information desks in the streets (90 % of the budget) where professional advertisers try to convince people to support Greenpeace Germany in a direct dialogue. The remaining 10 % are on the one hand spent for advertisements in newspapers and big magazines and on the other hand for letters to people whose addresses Greenpeace bought from publishing companies.
Developments in the last years The income of contribution and donations decreased from 41.54 mill. € in 2004 to 39.98 mill. € in 2005. Thus, reserves of 0.8 m ill. € had to be used in 2005 in order to finance the expenditures. In 1995 the income was approximately 35 mill. €, and in 2000 33 mill. €. In spite of the reduced income in 2005, Christine said that the fundraising budget itself increased in the last decade every year because it is much more difficult to generate donations. According to her the reason for this is that the German government reduced and reduces the expenditures for social services, welfare and other support of voluntary organizations. These organizations and the churches which have financial problems now also try to generate bounties. Therefore, the pressure in the fundraising sector has increased. A
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second problem according to Greenpeace is that emergency aid got a higher importance in the recent years in general and many people redirected their donations towards tsunami aid or earthquake victims. While the information desks in the streets are nowadays the main method for gaining new donors, it was different until 2003. The origin of all fundraising efforts from Greenpeace are mailing to addresses bought from publishers. This direct marketing to newcomers was the main activity area until 2003. "There are two reasons why this tool is not that efficient anymore", explains Christine. "The first one is that the people do not react to mailings any more in the same extent they did before and the other one is that publishers do not sell their addresses any more."
Self-evaluation Greenpeace describes itself as a believable organization. The reasons mentioned in the annual report for this judgement are their financial transparency and that they mention to which corporations they are related to. Examples of relations are "Greenpeace Media GmbH" and "Greenpeace Energy eG" in which Greenpeace Germany has a holding in. Furthermore, Christine mentioned that Greenpeace still regards itself as having a unique portfolio of ideas and an unique focus, so that they have less direct competitors in their area of action. In her opinion the only organization in Germany with a comparable orientation is the BUND.
Evaluation of the public opinion While the opinion of the sustaining members is evaluated by random phone calls among them, no evaluation of the public opinion exist. The reason is that the acceptance of marketing efforts of the public is not regarded as being different from the one of the persons who are already sustaining members. Furthermore, in accordance to Greenpeace there exist studies of the acceptance of specific media channels. The proscription of collecting money at the front door in Germany, while it is accepted in Sweden and The Netherlands, is mentioned as an example. The opinion of volunteers is judged as high important and the volunteers are therefore informed in advance of special fundraising activities in their region.
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Empirical Findings
The Greenpeace representative says that she has heard the term 'guerrilla marketing' but does not know what it is. After a description of the term she mentioned that the fundraisers and marketers do not use these techniques, but the activists do so without calling it 'guerrilla'. An increasing importance of the topic for Greenpeace within the next five years is denied.
Assessment of future developments An increasing competition on the German fundraising market is expected for the future. The position of Greenpeace is estimated as good by itself because according to Christine the environment is becoming more important in the peoples' minds. In order to benefit from the high media coverage the organization is obtaining by its activities, a closer cooperation between the activists and the fundraisers / marketers is planned. Furthermore, the importance of the Internet for gaining donations is judged as increasing.
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Analysis
6. ANALYSIS
In this chapter the chosen theories are implemented to the empirical findings of the questionnaire and the interview with the representative of Greenpeace Germany.
Before the findings of the questionnaire are analyzed the demographic background of the respondents has to be taken into account. As visible in the tables five till ten in the empirical findings, the interviewees come from several demographic groups and there is no dominating type of persons. Thus, it is proven that this thesis is not based on a single group of the population, but takes several classes of the society into account. That is the reason why we can generalize and call our research group representative for "the public".
6.1 Non-Profit Organizations
Although there are several types of non-profit organizations existing according to the ICNPO (see table no. 4) the respondents mainly named organizations out of four groups only. These are in specific for group 5 "Environment" Greenpeace, WWF, IFAW and the BUND. The Red Cross, Doctors without Borders, UNICEF, IQ, WHO and Malteser Hilfswerk are the ones come under group 3 "Health". The out of group 4 "Social Services" mentioned organizations are The Red Cross, BRIS, Humanitas, CliniClowns, SOS Children Valleys, World Vision, Caritas, Misereor, Brot für die Welt and the United Nations. The seven most mentioned organizations which were Greenpeace, The Red Cross, Amnesty International, UNICEF, WWF, IFAW, and Doctors without Borders work all on an international level and therefore fall in category group 9 "International Activities".
It is remarkable that the majority of the organizations named by the respondents are working internationally. This was not due to our focus to three different countries because the international operating organizations were even mentioned the most in each separate country. Furthermore, four of the five most supported NPOs by the respondents are acting on an international level. Only the organization ranked on place four, the BUND, is only active in Germany. Finally, the respondents who stopped supporting a NPO mainly backed out from the global ones. It is obvious that organizations with more supporters are more likely to loose some of them and furthermore, if people wants to support local projects instead of international ones 61
Chapter 6 [this was the top 3 answer], only global NPOs are likely to loose support. The fact that
Analysis
Greenpeace is ranked first in the list of support loosers is interesting because the fundraising assistant of Greenpeace Germany mentioned the environment was not in the focus of the people in the last years but is nowadays gaining back some importance. But nevertheless, the amount of support will not increase by itself. The representative herself said that the competition on the fundraising market is increasing. That the respondents are thinking about global organizations when it comes to NPOs supports the focus on global organizations of this thesis. This has to be mentioned because if the interviewees would only think about regional organizations, the later answers to questions about the marketing of NPOs would not fit to our research approach.
When it comes to the knowledge about non-profit organizations the public knows not only which NPOs exist, but also in which field the specific one is active in. The knowledge about NPOs can be explained by the high amount of people who are interested in them. Almost three quarter of the respondents are interested in non-profit organizations, and even from the most mentioned reason why people are not interested in NPOs "because they only do what governments should do" one can conduct that there is knowledge about these organizations. The high interest in NPOs is also reflected by in the amount of interviewees who support or have supported a non-profit organization. 57.3 % support NPOs because non-profit organizations "help people who live in worse conditions", "it is easier for NPOs to help them as to do so on one's own" and because "the organizations have more penetrating power". On the other hand there are also reasons given for not supporting an NPO, even if some interviewees were interested in them. These are that NPOs spend too much money aside their core field of activity and the CEOs earn too much money.
6.2 Marketing and Communication of Non-Profit Organizations
With regard to the basic model of communication by Belch and Belch (see figure no. 6) the non-profit organizations are the source of the communication messages and the public is the receiver.
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Analysis
When a specific NPO wants to send a message to the public to achieve one of the three goals fundraising, volunteer or spreading their message, the organization has to take into account how the message has to be designed in order to fit the public expectations towards marketing used by non-profit organizations. According to the respondents honesty (84.5 %) and openness (71.8 %) are the most important criteria the organizations have to fulfil in their marketing behaviour to get support. The answer that "a quick response to arisen questions" is needed (17.5 %) is also a criterion similar to the two ones above. All these three expressions show that the importance of a clear and open way of communication is higher than only to communicate on a low cost level. Only less than one third of the interviewees said "the money should be used for activities, not for bureaucracy" (28.2 %). Apart from the communication behaviour of the NPO with the public, also the content of the message and the aim it wants to achieve matters. According to the public the two most important objectives for non-profit organizations to be achieved by marketing are "spreading their ideals and messages" (45.1 %) and "fundraising" (35.3 %).
Belch and Belch point out that the chosen channel for sending the message determines how the receiver perceives the messages and how he has to decode it to understand the intended meaning. The attitudes of a person towards a certain channel influence at first the decoding process, secondly the judgement of the content and finally the way the receiver responses and gives feedback to the NPO. 94.2 % of the interviewees are annoyed by the use of phone calls for marketing efforts, 68.9 % by emails and 46.6 % by brochures thrown in mailboxes. The channels the respondents are less annoyed are billboards in the streets (3.9 %), advertisements in newspapers and magazines (4.9 %) and commercials on the radio (6.8 %). But when we compare this with the answers that our interviewees gave to the question which marketing efforts by Greenpeace, Doctors without Borders, the Red Cross or Amnesty International in which channel they remember, letters were remembered most (29.6 %). Nevertheless, the respondents also keep in mind messages which were sent to them through channels they are not annoyed of. Advertisements in newspapers were remembered by 20.4 % and billboards and postcards included in magazines/newspapers with 14.8% both. Finally it has to be noted than 47.6 % did not remember any marketing effort by the mentioned organizations.
The trend towards a high awareness of letters, newspaper advertisements and billboard is only partly visible for other NPOs than the four mentioned ones. 30.1 % of the participants knew marketing expressions by other NPOs. 29.0 % of the ones who did so, mentioned articles in 63
Chapter 6 regional newspapers about several local organizations. Different to the remembrance of efforts by the four above mentioned NPOs is that 38.8 % of the interviewees who knew
Analysis
expressions of other organizations named several TV commercials. This amount results from the naming for IFAW (22.6 %), World Vision (6.5 %), IQ (6.5 %) and BRIS (3.2 %). It is notable that the 29.0 % who remembered the articles in media perceives them as marketing. According to the American Marketing Association these less controllable announcements are called publicity. Furthermore, we have to mention that the respondents in the case of remembering marketing expressions regard local sports clubs and churches as non- profit organizations because this is in contradiction to the answers they gave to the question where they had to name five organizations that are active in their country. There mostly global acting NPOs were mentioned.
Nevertheless, that people remember a marketing effort does not implicate that they also like it. 70.4 % of the people who remembered an effort from the four global NPOs did not like it. The reason were "because it was nothing special, just ordinary" (68.4 %), "has been the same for years" (13.2 %) and "the message was about donating money" (10.5 %). The two persons who liked the spot said they did so because "they were emotionally touched". The influence of recognition of a marketing campaign is that 11.1% of the people who experienced a marketing expression donated money after it. Remarkable is that four of the six persons who donated money did it because "they felt bad and had compassion". One of these persons even stated that he did not like the campaign, which is an example that at least some people support a non-profit organization if they do not like the marketing campaigns. Though 66.6 % of the persons who donated after a campaign had a bad compassion does not mean that the organizations act in accordance with the 'press agency model' by Grunig (see chapter 4.3.1.3) in which causing emotional appeals and hoodwinking are major elements to create income. Visible in the Greenpeace Germany example [phone calls], but not only done by this certain organization, the NPOs do research on the donators interests. It is questionable if the fact that Greenpeace Germany wants to get the sustainable members involved in writing to politicians and boycotting companies which are doing environmental unfriendly business can be called as a serious partnership where the donors are collaborators rather than repositories of money. According to Kelly (see chapter 4.3.1.3) this model is the optimal one, but dominant is still the one in which donors are just the disposers of money. The reason for
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Chapter 6 this is that it is very hard or even impossible to participate in the global activities the
Analysis
organizations are doing. Who is able to fly to Africa and help children who suffer from hunger and who is willing to risk ones freedom by participating in activities which not always stay within the regular framework? Furthermore the most global organizations are not directed to organize the active involvement of people. This is mentioned by the Greenpeace representative.
Regarding the feedback people give to the NPO, Greenpeace Germany has a borderline when a specific advertising campaign or communication channel is not going to be used any more. Thereby that a lot advertisements in magazines and all letters sent out have a postcard to be taken out and returned in order to subscribe as sustaining member, punish a company or to demand a change by a politician, Greenpeace is able to evaluate the feedback of each conducted campaign. In the case of acquiring donators, the ROI of a fundraising action serves as the guideline for future campaigns. The borderline is around 0.75 which means that the specific activities should contribute a donation return of 75 % of its costs within the first 12 months after the activity was done.
Ojasalo presents a dynamic model of expectations which occur during a relationship (see figure no. 7). Greenpeace Germany evaluates the satisfaction of the sustainable members by phone calls. The called members are randomly picked out of the database and asked how they judge the undertaken campaigns of the last year, the information provided by the organization and what they expect from Greenpeace in certain areas in the future. These calls therefore serve as evaluation of the realistic and unrealistic expectations existing among the sustainable members. Unrealistic expectations, like that 100% of the donations are used for activities, can thereby be evaded. It is not possible to fulfil the unrealistic expectations and according to the model Greenpeace should try to change those in realistic ones. By reason that Greenpeace is not focussing on satisfying individuals but on fulfilling the wishes of the majority of their supporters and the organizations aims, unrealistic explicit expectations are mostly removed. Cheques and donations which have a specific purpose of use are either not accepted or the donator is asked to accept a general use for Greenpeace's activities. The reason is that the organization cannot guarantee that the money is use for this specific action and also does not want to be dependent on certain donators for specific projects. The realistic expectations non- profit organizations have to be aware of and implement to their behaviour are honesty and
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Chapter 6 openness. These are the two most important criteria an NPO has to fulfil in order to get support from the public.
Analysis
Nevertheless, there are also implicit expectations existing. There are always things which are taken for granted by the public but the NPO is not aware of. The phone calls of Greenpeace to their sustaining members can be identified as a way to try to put these implicit expectations into explicit ones.
Relationship between expectations and donations A person's expectation of a non-profit organization is influenced by prior experience and personal background as well as of word of mouth communication (see figure no. 8, transformed BaronEpel model). The model of the relationship between donor's expectation, satisfaction and future donations can also be used for persons who have not supported a NPO yet. 57.3 % of the respondents had prior experience because they supported a non-profit organization. These persons mentioned several reasons how they choose or have chosen the NPOs they support. Newspapers and TV reports about campaigns the organizations are doing are an important information source because they form a picture of the organization in the people's mind. Media coverage about "help the organizations provide and about recent activities" was the top answer to the question how NPOs to support are chosen. These impressions by media are completed by marketing expressions of the certain non-profit organization and word of mouth from other people about the organization. If all these information have the same underlying meaning and the thereby formed picture fits to the individual beliefs and the individual attitude of a person, he is willing to support the NPO. According to our respondents, news coverage is the main source for selecting the NPO one wants to support. Information desks in the streets where the respondent had direct face-to-face contact was the second source, while statements by friends (so called word of mouth) and information found in the Internet complete the most mentioned answers. After becoming a donor the evaluation process is not finished. The donor continuously evaluates the relationship between him, his personal expectations and the non-profit organization. If the contributor is dissatisfied with the NPO itself or with the relationship with the NPO, he can decide to stop or decrease the amount of support. Another possibility is that the donor moves to another organization. This behaviour is reflected in the answers of the questionnaire. It was the second most mentioned answer by our respondents to the question
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Chapter 6 why they stopped to support a certain NPO. The most important reason given by the
Analysis
interviewees was "problems within the organization". These are improper use of money, stealing, and personal disagreements. If the degree of satisfaction with the organization is not decreasing and the personal expectations are perceived as being fulfilled by the NPO, the donator is likely to continue donating.
6.3 Public Judgement of the Use of Marketing by Non-Profit Organizations
After the focus in chapter 6.2 lay on the expectations of the public and the awareness of existing non-profit organizations and its marketing efforts this chapter deals with the public judgement of the use of marketing for NPOs in general.
The starting point for a deeper insight is if the public thinks it is good that marketing is used by non-profit organizations. A clear majority opinion does not exist as can be seen on the 56.3 % of the respondents who said "it is good", while 41.7 % think "it is not good". This answer is in contradiction to the results of the question what the interviewees think about NPOs which spend money for their marketing. Though 41.7 % said that it is not good that NPOs use marketing, 71.8 % gave the feedback that "it is okay that NPOs spend money for it. A reason for this contradiction can be the formulation of the two pre-given answer possibilities which had to be completed by the respondents with reason for their judgement. While the possibilities for answering the question if marketing is good were "good" and "not good" the ones for the expenditure of money were "okay" and "not okay". Nevertheless, the given justifications for both questions are very similar. 53.4 % of the participants who marked the "good" possibility and 48.6 % of the ones who marked "okay", state that NPOs have to inform the public of their existence and their activities. A closer look on the "not good" answers reveals that money is the main reason (44.2 %) why marketing is judged as not being good for NPOs. The explanations than can be found in the "it is not okay that non-profit organizations spend money for marketing"-answers. "Money should be spend in a more useful way" (55.6 %), "marketing is a waste of money for NPOs" (33.3 %) and "marketing does not fit to NPOs" (11.1 %) are the explanatory statements of the people who think that it is not okay that non-profit organizations spend money for marketing.
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But if non-profit organizations spend money for marketing almost all interviewees (96.1 %) agreed to the statement "the NPOs have to communicate this in a clear way towards their financial supporters". The most named reason is that "people have the right to know how the donate money is used by the NPO" (81.8%). Seven respondents would even appreciate more information, apart from the annual report, of how money is used. One interviewee suggests that every donator receives specific information for which purpose his or her money is used. It has to be mentioned that this wish would require more organizational work which would increase the administration costs and according to Greenpeace Germany it is even impossible to identify whose money have been used for which purpose. Furthermore, it could also increase the dependency on specific donators for certain activities. The opinion towards clear statements of the use of money is supported by the already mentioned importance of openness and honesty NPOs need to fulfil in their marketing area in order to receive donations.
Concerning the development of marketing and communication by NPOs in the last years, three out of four respondents (75.7 %) confirmed that non-profit organizations are more active nowadays. It is visible that this judgement is based on feelings and impression and cannot be explained by the respondents with reasons. Only four people gave an explanation, but these were not specific. Nevertheless, the origin for the people's assessment can be found in the judgement that "NPOs act more like for-profit organizations in the marketing area", which was made by 76.2 % of the respondents. The two major answers were that "there is more marketing around NPOs" (42.9 %) and that "NPOs use the same methods than the for-profit ones do" (33.5 %). Interesting is that 16.7 % of the deniers state that NPOs are not that professional as for-profit ones in the marketing area and another 25 % said that NPOs do not use professional advertising agencies. The major opinion that NPOs are acting like for-profit organizations could already be identified in the explanation "NPOs are just like for-profit organizations" which was given by 20.7 % of the people who think that it is good that NPOs use marketing on the question "It is good that NPOs use marketing?".
Though 75.7 % said that the use of marketing by NPOs increased in the last years only 23.3 % recommend that non-profit organizations should increase their marketing and communication activities in order to "inform the public in a better way about their activities" and for the
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purpose of "profiling themselves better and more clear". This supports the wish for openness and information. The reasons why NPOs should not increase their efforts any more are that "they are already active enough" and that the people "do not want more money to be wasted in marketing and communication". Also the third reason "the money should be used for actions and relief" has a financial character. The issue money was in addition the most important reason why the interviewees did not like marketing done by a NPO as mentioned before. Nevertheless, the use of professional marketing agencies - which get paid by the NPOs and thereby take some of the organizations' financial resources - is not a reason for the majority of the public (73.8 %) not to donate any more. However, it very important to note that 23.7 % of this people restricted that not too much money should be spend for the agencies. This restriction even has a stronger value because it was made as an explanation why people also donate if the NPO is using marketing agencies not as an answer to a question of what the NPOs have to be aware of if they use the agencies. Furthermore, 42.3 % of the people who would not donate money if the NPO uses a marketing agency (25.2 %) justify this with "professional agencies are expensive". Here the request that the donated money is used for actions and activities instead of for something else is visible.
6.4 Guerrilla Marketing
The focus of this thesis does not only lie on the public attitudes towards marketing and communication in general, but also on guerrilla marketing and its future importance in the overall marketing mix of a non-profit organization. The non-existence of a clear definition in literature even if there is an agreement of several authors on the main characteristics - is reflected by the knowledge the respondents have about guerrilla marketing. Nearly two third of the participants in the questionnaire have never heard about it and among the remaining third who did so, thirteen different descriptions existed. The majority explanations were that guerrilla marketing "lies beyond the usual/common meanings of marketing" and that "it is not common". These people did not explain in detail what "uncommon" means to them but when the view is directed to the less often mentioned answers one can see that the use of "hit and run tactics", "marketing on a low budget" and "spontaneous / surprising marketing" where "people to do not expect to be addressed" form the public definition of guerrilla marketing.
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Nevertheless, the imprecision of the understanding has also to be mentioned. Apart from the further explanations that guerrilla marketing is "very aggressive", "uses humour" and "contravenes the law", which can at least to some extent also be found in literature, two persons gave explanations which do not meet the characteristics of guerrilla marketing. These two were "marketing towards people who are interested in weapons" and that "the prize is minimized in order to get a higher market share". Though an explanation of what guerrilla marketing is was given by the authors of this thesis after the question in which the respondents had to define it by themselves, in order to make it possible for all participants to fill out the further questions about guerrilla marketing, one has to consider the variety of the persons' descriptions when the profound questions are analyzed. Furthermore, according to Belch and Belch (see figure no. 6) the interpretation of our description also depends on the individual decoding process of the participants, which also affects the feedback of the interviewees. The given explanation by us was: "Guerrilla marketing is unconventional way of performing mostly promotional activities by the use of hit and run tactics, sometimes on a very low budget, intended to get maximum results from minimal resources. Such promotions are sometimes designed in a way that the target audience is left unaware they have been marketed to and may therefore be a form of undercover marketing (also called stealth marketing). The ethics of guerrilla marketing have often been called into question due to an alleged deceptive, misleading, or subtle nature of the campaigns."
After the description was presented, 56.3 % of the interviewees evaluated guerrilla marketing as a good tool in the marketing strategy of NPOs. This amount has to be highlighted in detail, because exactly the same amount of persons responded that marketing should be used by NPOs before. Though it is not sure that the same people gave both answers, the aims for which marketing respectively guerrilla marketing should be used can be compared. The interesting results of this comparison is that only 10.7 % of the respondents think that guerrilla marketing should be used for fundraising, while 35.3 % of the interviewees think marketing in general should be used for this aim. In contradiction it is the other way round for the task to "spread the message". 62.1 % evaluate guerrilla marketing as being useful for it, while only 45.3 % of the respondents agreed on this task of general marketing. The reasons for these differences are already visible when the explanations why guerrilla marketing is good are considered. 22.4 % of the interviewees mentioned that "it is easier to spread a message for an idea of a NPO than for a normal product", and this product is in the 70
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case of a non-profit organisation the sustainable membership. Furthermore, the top reason (29.3 %) for the suitability of guerrilla marketing for NPOs given by the public is that it "is different" and will generate "more attention" and finally "will be better remembered". This is in accordance to the earlier given explanations why the interviewees do not like the marketing expressions they remembered from Greenpeace, Doctors without Borders, The Red Cross and Amnesty International, where 68.4 % stated that the expression was "nothing special, just ordinary" and 13.2 % mentioned that "it has been the same for many years". Finally, the "annoyance of marketing in the traditional way" is cited as reason for using guerrilla marketing by 13.8 %.
Nevertheless, when one takes a closer look on the reasons which were given by the interviewees on the question why guerrilla marketing is not a good tool for NPOs, it becomes apparent that a too positive consideration of guerrilla marketing is not advisable. 41.9 % of the deniers stated that NPOs "should be open and honest about what they do on not hide themselves" and another 11.6 % mentioned "guerrilla marketing will harm the transparency of the NPO". Two of the former reasons why marketing should not be used by non-profit organizations are also used to deny a suitability of guerrilla marketing. These explanations are in specific that "marketing and NPOs do not fit together" (16.3 %) and that "it is a waste of money even if it is guerrilla marketing" (14.0 %). The explanatory statement that "marketing and NPOs do not fit together" is also given by 20.6 % of the respondents who stated that guerrilla marketing cannot be used in all segments of NPOs, what is the opinion of 33.0 % in general. The "likelihood of guerrilla marketing to lead to negative feedback because it is less serious and has an unreliable touch" is the major reason (58.8 %) for the interviewees to deny suitability in all non-profit segments. Furthermore, another reason that has been made by the respondents (17.6 %) and is also supported by Hospes and confirmed by Greenpeace Germany is "that the segments the NPOs are acting in are different" and each organization has its own profile. Therefore the interviewees stated "the guerrilla marketing activity has to fit to the profile of the non-profit organization but sometimes does not." In addition, not all participants who approved the use in all segments (64.0 %) did it without any restrictions. 31.8% mentioned "guerrilla marketing is an option" but because of the differences between the organizations "not all guerrilla activities are suitable for each NPO". The major reason why guerrilla can be used in all segments is that "it is cheap" (42.4 %). This answer represents on the one hand that money is still of high importance, but on the other hand the high percentage could also be an outcome
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Chapter 6 of our given explanation 'what guerrilla marketing is', where the possibility of a "very low budget" is mentioned.
Analysis
Finally, when the interesting aspects of guerrilla marketing for NPOs had to be described by the interviewees, the two most often mentioned answers were also at least partly be tangent by the explanation of guerrilla marketing given by the others of this thesis. 28 % of the respondents wrote the "possibility for low costs" is the most interesting aspect, while 17.1 % stated "spread of the message in a way that the audience is not recognizing that it is marketing". It has to be mentioned that this explanation disagrees the demand for openness and honesty which were the main tasks a NPO has to fulfil in order to receive donations. Nevertheless, there were a lot of explanations given by the interviewees which were not able to be found in the given description of guerrilla marketing. These main ones are in specific the "surprise factor" (15.9 %), the possibility that "NPOs become 'hip', 'hot' and 'in' by using guerrilla marketing" (8.5 %), "that it gets high attention" (7.3 %) and that "people will talk about it" (6.1 %). According to Mardsen & Kirby (see chapter 4.3.3) the aspect that people will talk about it can be seen as "live peer-to-peer marketing", which is a category of buzz marketing. The high importance of a buzz and attention the organization gets in the media was confirmed by the representative of Greenpeace Germany. On the basis of the Greenpeace example it is visible that even organizations which in their own option do not know what guerrilla marketing is, use the tactics. The Greenpeace activistsuse these tactics but the campaigns are not connected to a fundraising appeal. Though the fundraising assistant denies that the use of guerrilla marketing for fundraising and marketing efforts will increase within the next five years, the perception of the use by the audience is likely to be changed. As a result of the weak interlocking between the campaigns and the fundraising efforts, the Greenpeace' fundraisers try to convince the activists that there has to be a stronger relation of the two divisions in order to use the media coverage of the activities for fundraising efforts. An outcome of this consideration could that the perception of the use of guerrilla tactics for fundraising increases, and thereby the use disagrees with the demand for openness and honesty.
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7 . CO NCL US I O NS
In this chapter at first the results of analyzing the questionnaire and the interview with Greenpeace Germany are presented. Afterwards we critically reflect our own thesis and describe the weaknesses and parts with could have done better. Finally, this thesis closes with the recommendation of areas of the marketing by non-profit organizations in which further research might be interesting.
7.1 Results
The main objective of this thesis was to evaluate the public attitudes towards the increasing use of marketing and communication by global non-profit organizations. To achieve this we conducted a survey with 103 persons and an interview with Greenpeace Germany which provides us an insight into an organizations marketing, communication and fundraising efforts from an organizational perspective.
Before we deal with the main conclusions of our research focus a few more general ones are presented. The first thing that can be said is that the public has organizations which act on a global level in their mind when being asked to think of NPOs. Furthermore, the public is interested in non-profit organizations and their activities.
The public is annoyed by phone calls, emails, and flyers thrown into the mailbox. A closer look to this result shows that marketing and communication channels, where the single person has no chance to decide if he or she wants to receive the message, are bothering the most.
The major reasons for a negation of the use of marketing in non-profit organizations are money related. Nevertheless, the use of professional marketing agencies is accepted by the majority of the public. However, an increase in the use of marketing is not judged as being necessary because the public perception is that there is already enough. This can be explained by the public perception that non-profit organizations are more active in marketing than in the past and that they use the same methods and techniques as for-profit organizations do. Nevertheless, the provision of information is demanded to a large extent in order to fulfil the requirement of being transparent.
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These circumstances, and the aims non-profit organizations should try to achieve with marketing mentioned by the respondents, lead to the major conclusion of this thesis. The objectives for which resources should be used in the marketing and communication field are in specific spreading of the message and fundraising. The final conclusion is that the public accepts the use of marketing and communication, and the therefore necessary expenditures, in NPOs as long as it is done in an open and honest way. Money is considered as being less important than openness and honesty.
Guerrilla Marketing Concerning guerrilla marketing the first result of our research is that the public do not really know what it is.
Though the majority of the people who do not like the marketing expressions reasoned this with its uncreative and conventional nature of being boring and nothing special; one should not recommend an unrestricted change towards the use of guerrilla techniques in the marketing mix. The demand for transparency has to be kept in mind when the amount of persons who think that guerrilla marketing is a good tool to be used by a NPO is regarded. If the use of guerrilla marketing tactics would increase, the level of openness and honesty is likely to decrease and would thereby affect the general acceptance of the use of resources for marketing and communication negatively.
As a result of the perceived advantages and disadvantages regarding the use of guerrilla marketing by non-profit organizations, there is no clear answer to the question if guerrilla marketing is as good tool for NPOs or not. Nevertheless, the majority of the public judge guerrilla marketing as being suitable for all segments of non-profit organizations as long the activities fit with the profile of the specific NPO.
Furthermore, the public assess guerrilla marketing as appropriate for spreading the message, but not for fundraising issues.
An explanation made by one respondent on the question "what the most interesting part of guerrilla marketing is" was "guerrilla marketing is especially suitable for NPOs because it is a rather cheap way to spontaneously address people with actions, which they will remember. As NPOs have rather ideas/moral to 'sell', those guerrilla marketing promotions are good
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Conclusions
ways to touch people emotionally and catch their attention. It is necessary that the actions stick out from new commonly used information stands and leaflet distribution in pedestrian areas." This statement fits at least partly to the results of the questionnaire which lead to the final conclusion of this thesis: Guerrilla marketing should only be used by non-profit organizations in order to spread the message and increase the media coverage. The use of guerrilla activities for other purposes, especially fundraising, is incompatible with the requirements of openness and honesty, and therefore not recommended.
7.2 Recommendations for Non-Profit Organizations
The main recommendation of this thesis is that non-profit organizations have to be open and honest in the marketing and communications expressions and in the messages sent to the public. Not only the persons who donate money expect to be fully informed of the use of money and the undertaken activities, but also the general public. The recommendation therefore is that the organizations are more specific in their statements of how their financial resources are used. Only statements in the annual reports where all activities are summed up and an aggregated sum for each departments is presented, is not enough. Doubtless, the increase in providing this information needs more resources and will increase the administrational costs of the organization. Some ideas that the public purposed, as example receiving a letter what had been done with their specific donation, are mostly not able to been fulfilled. But it should be a first step for the global non-profit organizations to make monthly financial statements. Organizations that act more on a project basis could also announce the specific costs for the finished ones. Nevertheless, one always has to consider that the information is not only available for the general public, but also for the opponents against who the projects are directed.
Furthermore, the NPOs should evaluate the perception of themselves by the public in order to be able to fulfil the specific expectations concerning their financial, organizational and ideological behaviour.
The organizations have to take the attitudes of the public towards certain communication channels in consideration. Even if the Internet is assessed as becoming a more important 75
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Conclusions
source for donations in the future, the organizations should not increase or start to use emails for fundraising efforts. The public is annoyed by messages they receive through this channel.
With regard to guerrilla marketing the recommendation is that is has to fit to the profile of the non-profit organization in order to be used as an instrument which helps to spread the message in the media, the so called buzz, and create a word of mouth among the public.
7.3 Reflections
In this subchapter we try to describe the weaknesses in this thesis, even if it is not always easy to see the shortcomings in one's own work. The first thing we have to mention is that we thought it would be easy to get access to several global non-profit organizations in Sweden. Our opinion that they will be willing to present their work more likely than for-profit organizations was not verified when we contacted the organizations. We were too optimistic and lost time which we could have used in a more productive way if our focus had been lain on the public earlier. Concerning the questionnaire, we recognized that the questions could have been structured into more different subchapters than only the three ones "personality", "attitudes concerning nonprofit organizations" and "guerrilla marketing". If we would had structured the questionnaire as we did it in the analysis, it would have been easier for the public to be aware of the coherences and also easier for us to analyze the answers. Furthermore, the description of guerrilla marketing presented in the questionnaire could have been specified with examples in order to help the interviewees to understand the term in a better way. In addition, that almost two third of the people did not know the meaning of guerrilla marketing before they read our explanation made it more difficult to judge the answers they gave to the following questions, but we still think that the answers are reliable. The reasons for this assessment are that one third had knowledge in guerrilla marketing and that the given description included both positive and negative aspects.
Despite the above mentioned weaknesses, we have the opinion that we answered our research question about the public attitudes towards the increasing use of marketing and communication by global non-profit organizations and that our results are valid and reliable. 76
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7.4 Recommendations for Further Research
During the literature study and during the analysis a few perspectives which are also interesting to be considered turned out. In order to specify our results a study about what openness and honesty means for the public, could be useful. In addition, as we now know of with communication channels the people are annoyed of, one can do research on why they are annoyed and which ones they recommend non-profit organizations to use.
Furthermore, a study about the division of donators in certain groups apart from the amount of the donation would be interesting and of use for the organizations. Especially, how younger people perceive non-profit organizations and how the organization can convince them to become supporters seems to be an important field to do research on in the future. On the other side, due to the obsolescence of the society it is also useful to do research in bequest marketing and especially on the attitudes of the public towards it.
The study of a specific marketing campaign of a non-profit organization is a possibility to get a more specific view on the elements and the connection between the elements included in the campaign.
We think that is furthermore interesting to take a closer look on the view on the non-profit sector from the media perspective to get an understanding how the organizations can increase their media coverage without spending more resources for advertising. When are the organizations parts of the news and why?
Finally, also internal marketing and communication seems to be an interesting field. As seen in the Greenpeace example, the different departments of the organization have unused possibilities to cooperate closer with each other. Therefore the communication between them could be investigated. "Are the messages and methods used compatible to the external ones?"
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References
REFERENCE LIST
Books
Alvesson, M d. & Sköldeberg, K. (2000). Reflexive Methodology: New Vistas for Qualitative Research (2n ed.). London, Sage Publications. Belch, G. E. & Belch, M. A. (2004). Advertising and Promotion: An integrated Marketing Communications Perspective (6th ed.). Boston, Irwin/McGraw Hill. Bennett, P.D. (1995). Dictionary of Marketing terms (2nd ed.). Chicago, McGraw-Hill. Brown, M. & May, J. (1991). The Greenpeace Story. London and New York, Dorling Kindersley Inc. Dibb, S. & Sdimkin, L. & Pride, W. M. & Ferrell, O. C. (1994). Marketing: Concepts and Strategies (2n European ed.). London, Houghton Mifflin Company. Eagly, A. H. & Chaiken, S. (1993). The Psychology of Attitudes. Orlando, Harcourt Brace Jovanovich. Grinnell, R. M. Jr. & Unrau, Y. A. (2 h005). Social Work Research and Evaluation: Quantitative and Qualitative Approaches (7t ed.). New York, Oxford University Press. Grönroos, C. (2001). Service Management and Marketing: A Customer Relationship Management Approach (2nd ed.). Chichester, John Wiley & Sons Ltd. Hospes, C. (2007). Guerrillamarketing, nieuwe sluiproutes naar het hart van je klant. Haystack. Hougaard, S. & Bjerre, M. (2002). Strategic Relationship Marketing. Berlin, Springer-Verlag. Kirby, J. & Marsden, P. (2006). Connected Marketing: The Viral, Buzz and Word of Mouth Revolution. Oxford, Butterworth-Heinemann. Kotler, P. (1982). Marketing for Nonprofit Organizations. Englewood Cliffs, New York, Prentice Hall. Kotler, P. & Wong, V. & Saunders, J. & Armstrong, G. (2005). Principles of Marketing (4th ed.).Harlow, Prentice Hall. Levinson, J. C. (1984). Guerrilla Marketing: Secrets for making big profits from your small business. Boston and New York, Houghton Mifflin Company. Levinson, Jr.d C. (1998). Guerrilla Marketing: Secrets for making big profits from your small business (3 ed.). Boston and New York, Houghton Mifflin Company. Levy, S. J. & Zaltman, G. (1975). Marketing, Society and Conflict. Englewood Cliffs, New York, Prentice Hall. 78
References O'Neill, M. (2002). Nonprofit Nation. A New Look at the Third America. San Francisco, JosseyBass. Röthlingshöfer, B. (2006). Marketeasing: Werbung total anders. Berlin, Erich Schmidt. Sargeant, A. (1999). Marketing for Nonprofit Organizations. New York, Oxford University Press. Schäflein, S. (1994). Freizeit als Faktor der Stadtentwicklungspolitik und -planung. Stadtmarketing für mehr Lebensqualität. Frankfurt am Main, Universität Frankfurt IDG. Shenk, D. (1998). Data Smog: Surviving the Information Glut. San Francisco, Harper. Weisbrod, B. A. (1998). To Profit or not to Profit: The Commercial Transformation of the Nonprofit Sector. pp. 1-2. Cambridge, Cambridge University Press. Welsch, H. P. (2004). Entrepreneurship: the way ahead. New York & London, Routledge Taylor & Francis Group. Yin, R. K. (2003), Case Study Research: Design and Methods (3 rd ed.). London, Sage Publications.
Articles
Baron-Epel, O. & Dushenat, M. & Friedman, N. (2001). Evaluation of the consumer model: relationship between patients' expectations, perceptions and satisfaction with care. In: International Journal for Quality in Health Care. Vol.13, pp. 317-323. Brown, G. (1992). People, Brands and Advertising. New York, Millward Brown International. Bruce, I. (1995), Do not-for-profits value their customers and their needs? In: International Marketing Review. Vol.12, No.4, pp. 77-84. Bulla, M. & Starr-Glass, D. (2005). Marketing and non-profit organizations in the Czech Republic. In: European Journal of Marketing. Vol.40, No.1/2, pp. 130-144. Clarke, P. & Mount P. (2001). Nonprofit marketing: The key to marketing's "mid-life crisis"?In: International Journal of Nonprofit and Voluntary Sector Marketing. Vol.6, No.1, pp. 78- 91. Hall, M. R. (2005), Building on Relationships: A Fundraising Approach for Community Colleges. In: Community College Journal of Research and Practice. Vol.29, No.8, pp. 47-60. Hammack, D. C. (2002). Nonprofit Organization in American History. In: American Behavioral Scientist. Vol.45, No.11, pp. 1638-1675. Ives, N. (2004), Guerrilla campaigns are going to extremes, but will the message stick? New York Times: June 24, pg. C.6.
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Van der Horst, J. A. J. (2002). Markteting een wondermiddel voor non profit organisaties? In: Quanta NpM. February 2002. Retrieved April 23, 2007 from 28h ,http://www.quantanpm.nl/downloads/marketing_voor_non_profit_organisaties.pdf Nährlich, S. (2002). Was sind die und bleibt von den Besonderheiten der Non-Profit Organisationen? Eine öknonomische Betrachtung. Retrieved April 25, 2007 fromhttp://www.aktive-buergerschaft.de/vab/resourcen/beitraege/naehrlich02.pdf O'Neil, J. (2007). The link between strong public relationships and donor support. In: Public Relations Review. Vol.33, No.1, pp. 99-102. Sheehan, R. M. (2003). Fundraising Management. In: Nonprofit Management and Leadership. Vol.11, No.2, pp. 231-234. Smith, R. E. & Vogt, C. A. (1995). The Effects of Integrating Advertising and Negative Word of Mouth Communications on Message Processing and Response. In: Journal of Consumer Psychology. Vol.4, No.2, pp. 133-151. Sth. Martin, G. (2007). Council looks to reign in guerilla marketthing. In: Metro Boston, March 2007. Retrieved May 14 , 2007 from 7t ,http://boston.metro.us/metro/local/article/Council_looks_to_reign_in_guerilla_marketing/732 3.html Wallmeyer, G. (1996). Der Scheck als Stimmzettel - Ziele und Methoden des Fundraising. In: Greenpeace (1996), Das Greenpeace-Buch: Reflexionen und Aktionen. München, Beck. Watzlawick, P., & Beavin, J. H., & Jackson, D. D. (1967). Some tentative axioms of communication. In: Pragmatics of human communication: A study of interactional patterns, pathologies, and paradoxes. pp. 48-71. New York, W. W. Norton & Company.
Further Information Sourceshttp://www.blisscommunication.dehttp://www.bright.nl/top-5-guerrillamarketing Doornbos, D. P. (2006), Plan Nederland krijgt geen subsidie. Retrieved April 24, 2007 fromhttp://subsidie.blog.nl/algemeen/2006/09/24/plan_nederland_krijgt_geen_subsidiehttp://economics.about.com/cs/economicsglossary/g/nonprofit.htmhttp://www.greenbelgium.org Kuhn, T. (not dated). Conceptual or theoretical framework: Worldview or 'Paradigm'. Retrieved April 9, 2007 fromhttp://www.holisticeducator.com/paradigm.htmhttp://www.marketingpower.com/mg-dictionary.php?SearchFor=publicity&Searched=1http://www.marketingpower.com/mgdictionary.php?Searched=1&SearchFor=public relations 80
References
http://www.nolo.com/definition.cfm/term/BAEAC86A-2B5A-4B59-95070F88FB82326E N.N. (not dated). Guerilla Marketing Definition. Retrieved March 21, 2007 fromhttp://www.marketingterms.com/dictionary/guerilla_marketing/ N.N. (not dated). Communication. Retrieved April 29, 2007 fromhttp://www.mindgraph.net/foundations/linguistic/communication.htm N.N. (2007). Marketing Department Priorities Often Differ From CEO's Agenda. Retrieved April 18, 2007 fromhttp://www.marketingtoday.com/research/1204/mktg_priorities_differ.htm Pitz, B. (2007), Freunde: Horst Schlämmer und Volkswagen. Retrieved May 16, 2007 fromhttp://wissensforum.medialine.de/2007/02/26/freunde-horst-schlammer-und-volkswagen/ Shields, M. (2006). TV Station's Web Revenues Doubled in '05. Retrieved March 20, 2007 fromhttp://www.mediaweek.com/mw/news/tvstations/article_display.jsp?vnu_content_id=100180 8731. Silverman, G. (2003). The Secret of Why Only Some Marketing Programs Succeed And Most Others Fail. Retrieved April 30, 2007 fromhttp://www.mnav.com/WhySucceed.htm Zentralverband der deutschen Werbewirtschaft (2006). Netto-Werbeeinnahmen erfassbarer Werbeträger in Deutschland. Retrieved March 19, 2007 fromhttp://www.interverband.com/dbview/owa/IGservsearch1.opt4middlerow?puid=2104133&pai d=184&pccat=15060&pscat=4247&purl=/zaw
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Appendix
APPENDIX
Appendix A: Further Examples of Guerrilla Marketing by NPOs
Example one: This guerrilla marketing campaign was done by the environmental protection organization BUND in Berlin against the discharge of CO2. Balloons were put over the exhaust of cars parked in town. They show the world blowing up while the engine is running. On the balloons were written: "The world can't take anymore CO2".
Figure 10:Balloon campaign against CO2 by the BUND in Berlin. (Source: Retrieved fromhttp://www.blisscommunication.de)
Example two: In this guerrilla marketing action for Greenpeace in the United States of America magnets were placed at strategic places in the shelves of several supermarkets. The aim was to reduce the deforestation of the rain forest. The text written on the magnets was: "If you and every other household in the U.S. replaced just one roll of paper towels with 100 % recycled ones, we could save 544.000 trees."
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Figure 11:Magnet campaign against deforestation by Greenpeace in the United States. (Source: Retrieved fromhttp://www.blisscommunication.de)
Example three: The World Wide Fund For Nature conducted a campaign in China against pollution. A car with a juge balloon were placed on public areas. After the engine was started the black balloon blew up and the text "Drive one day less and lock how much carbone monoxide you will keep out of the air we breathe" was readable.
Figure 12:Campaign against pollution in China by the WWF. (Source: Retrieved fromhttp://www.blisscommunication.de) 83
Appendix
Example four: The MS laboratory in Australia conducted a campaign in order to sensitize the public for donations towards scientific research. The scientist in the glass box placed in shopping areas did not start to work until people donate money.
Figure 13:Fundraising campaign of the MS Laboratory in Australia. (Source: Retrieved fromhttp://www.blisscommunication.de)
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Appendix
Appendix B: The Questionnaire
___________________________________________________________________________ Note: In this questionnaire the term marketing includes all activities concerning communication, public relations and advertising. ___________________________________________________________________________
Personality
1. 2. 3. 4. Gender: Age: Profession: male < 18 student female 19-25 worker 1000-1999 26-35 freelancer 2000-2999 36-65 clerk >66 retired 3000-3999 else > 4000
Income before taxes: 5 else
Attitudes concerning non-profit organizations [NPOs]
7. Are you interested in NPOs?
Yes, because________________________________________________________________ No, because_________________________________________________________________
8.
Do you support or have supported a NPO?
Yes, because________________________________________________________________ No, because_________________________________________________________________
9.
Did/do you support them with money or as a volunteer?
Money
Volunteer
10. Which NPOs do you support? 1 . __________________ ______________ 3 . __________________ ______________ 2. _______________________________
85
Appendix 11. Which NPOS did you support in the past and don't support any more? 1 . __________________ ______________ 3 . __________________ ______________ 2. _______________________________
12. Why don't you support them any more? ___________________________________________________________________________
13. How do you choose the NPOs you support? _________________________________
14.
Name five NPOs that are active in your country: 2.____________________ 5.____________________ 3._____________________
1.__________________ 4.__________________
15. The one you named what are they doing and what do they stand for? No.1.______________________________________________________________________ No.2.______________________________________________________________________ No.3.______________________________________________________________________ No.4.______________________________________________________________________ No.5.______________________________________________________________________
16. Have you ever seen an advertisement, a TV or radio spot, a flyer or any other marketing effort of Greenpeace, Médicines Sans Frontières (Doctors without borders), the Red Cross, or Amnesty International? No, I haven't seen any. [Go on with question 19.] Yes, and the message was_____________________________________________________
17. Did you like this spot, flyer, add? Yes, because________________________________________________________________ No, because_________________________________________________________________
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Appendix 18. Did you donate money or support the organization personally after recognizing the campaign? Yes, because________________________________________________________________ No, because_________________________________________________________________
19. Do you know some marketing expressions from any other NPO? Yes! From which one and what was it? No! _________________________________
20. Do you think it is good that NPOs use marketing? Yes, because________________________________________________________________ No, because_________________________________________________________________
21. For which aims should NPOs use marketing? (Mark only one task) Fundraising, Improving their image, Personal support, Spreading their message,
Something else: ____________________________
22.
Do you think that NPOs are more active in marketing than in the past?
Yes, because________________________________________________________________ No, because_________________________________________________________________
23.
What do you think of NPOs spending money for marketing?
It is okay, because____________________________________________________________ It is not okay, because________________________________________________________
24. Do you agree with this statement: "If a non profit organization is using money for marketing, they have to communicate this in a clear way to their financial supporters"? Yes, because________________________________________________________________ No, because_________________________________________________________________
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Appendix 25. Do you think that NPOs are acting more like for profit organizations in the marketing area? Yes, because________________________________________________________________ No, because_________________________________________________________________
26. Do you think, it is necessary, that NPOs increase their marketing and communication activities? Yes, because________________________________________________________________ No, because_________________________________________________________________
27. Would you donate money to NPOs which use professional marketing agencies? Yes, because________________________________________________________________ No, because_________________________________________________________________
28. What criteria have NPOs to fulfil in their marketing area in order that you support them? (Mark the most important two) Respond quick to questions Honesty Openness Money is used for activities, not for bureaucracy Something else: ___________________
29. Which kinds of marketing expressions annoy you? (Mark the most important three) Phone calls Flyers in mailboxes Spots on the radio Emails Billboards in the town Spots on the TV Flyers handed out on the streets Advertisements in Newspapers Others: __________________________
Guerrilla marketing
30. What is guerrilla marketing for you? It is________________________________________________________________________ ___________________________________________________________________________ I have never heard about it.
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Appendix Guerrilla marketing is unconventional way of performing mostly promotional activities by the use of hit and run tactics, sometimes on a very low budget, intended to get maximum results from minimal resources. Such promotions are sometimes designed in a way that the target audience is left unaware they have been marketed to and may therefore be a form of undercover marketing (also called stealth marketing). The ethics of guerrilla marketing have often been called into question due to an alleged deceptive, misleading, or subtle nature of the campaigns.
31. Do you think guerrilla marketing is a good tool in the marketing strategy of NPOs? Yes, because________________________________________________________________ No, because_________________________________________________________________
32. Do you think guerrilla marketing can be used in all segments of NPOs? Yes, because________________________________________________________________ No, because_________________________________________________________________
33. For which task should NPOs use guerrilla marketing? (Mark only one task) Fundraising, Improving their image, Personal support, Spreading their message,
Something else: ____________________________
34. What aspect of guerrilla marketing do you think is the most interesting one for NPOs? It is: _______________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________
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Appendix C: The Guideline of the Interview with the Organization
Introducing ourselves
Who are we? What is our topic? Why this topic? What are we going to do with the information we get?
Personal Background
What are your responsibilities inside the organization? Why are you working here? Since when are you working for the organization and in this position?
Organizational Background
Goals, history, amount of supporters and employees, the budget and the marketing budget of the organization? Which shares of your budget are financed in which way? (Donors, membership fees, state subsidy)
Marketing and Communication of the organization
How is the marketing budget divided? (Media types, current/permanent campaigns, events) Importance of marketing in the organization (own view similar to the organization's one or who sets the standards? How is the marketing organized? Do you use marketing agencies or develop the campaigns on your own? To which extent (in % of your marketing tasks) do you use agencies? 90
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If you use agencies, for which marketing activities do you use them? What are the pros and cons of using agencies for your organization? Is the marketing centralized or each regional location can do it by itself? How many people are working in your marketing department? Is a guideline for campaigns existing, specific rules that have to be followed or is it up to you when, where, and to which extent a marketing campaign is done? Do you have a written marketing strategy or written marketing plans? What are the three most important aims you want to achieve with marketing? Which strategies are used in order to achieve these aims? How do you monitor the results of marketing activities? Was there always marketing activities in the organization or was it recently introduced? How did the marketing develop in the last 5 years? (Changes in goals, strategy, budget, used media types) What was the most successful campaign and why? What was the less successful campaign and why? Self-evaluation: What are the strengths and weaknesses of your marketing department? Strengths: Weaknesses:
Fundraising
Is the fundraising a task of your marketing department or do you have a special fundraising department? How do you coordinate marketing and fundraising? Who are your competitors (for the people's donors) and how do you try to defend and enlarge the amount of donors and the amount of money spent? Do you do you differentiate your target group? (Gender, Age, Income, etc.) If you differentiate the target group, you do you use this information?
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The view of marketing of non-profit organizations in society
Are there any constraints or limitations you are faced with in your marketing because of the society's and the donors' expectations? What are the three most important things you have to fulfil in order that the public accepts that you do marketing?
Guerrilla Marketing
Have you heard about Guerrilla Marketing and what is it for you? Do you use it? (Why, why not?) Do you think the role of guerrilla tactics will increase in your organization in the next 5 years? (Why, why not?)
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Appendix D: Additional Information
Description what the rarely mentioned organizations are doing according to the public BUND: "Environmental protection and nature care" UNA Sweden: "Implementing the questions of the UN to the daily life" BRIS: "Crisis line for children who have problems of any kind" IQ: "Offering projects to convince people of a responsible use of alcohol" Local churches: "Pastoral care and social projects in the town but also worldwide" Robert Bosch Stiftung: "Supporting research and science" Humanitas: "Social work in under-developed countries" CliniClowns: "Relief for sick children in hospitals to make same feel being a child again" WHO: "Trying to improve the medical car in poor countries" Attac: "Fighting against globalization", "Demanding fair rules for globalization" Technisches Hilfswerk (THW): "Provide technical help in national and international disasters" SOS Children Valleys: "Provide orphans with a new house / family" World Vision: "Arranging godparenthoods for children in the third world" Malteser Hilfswerk: "Emergency care and social work" Caritas: "Take care about elderly people and human rights" Stiftung Warentest: "Help customers to find the right products" United Nations (UN): No comment given Unesco: "Healthcare on an international level" Misereor: "Social projects in the whole world" Brot für die Welt: „Palliate the hunger in the world by handing out food to poor people in South America, Africa and Asia" Bundesverbraucherzentrale: "Represents customers towards politics and economics" Local sport clubs: "Provide possibilities to do sports, and work with the youth"
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