Abstract

Research results concerning problems of marketization of domestic non-profits in the context of financial paradigm are presented in the paper. The aim of our research is to analyze the dimensions of marketing implementation into non-profit organization activity. The methods of the research are written surveys of leading Ukrainian non-profit organizations, systematic and comparative analysis of scientific literature. The study of the works of native and foreign scientists, as well as our own empirical research allowed to identify the most important factors of intensification of the marketization of domestic non-profit sphere, including the growth in the number of NPOs at various levels of reduced funding on existing significant donor dependence, increased competition for labour resources, the growing importance of human capacity and marketing culture. Study allows to identify a number of areas of the marketization of domestic NPOs: delineation of consumer and producer of social services through creation of quasi-markets; a shift towards short term contracts on the basis of competition, collateral and tax credit; measurement of the effectiveness of projects and social audit that are more adaptable foundations for the evaluation of the results of NPOs; the focus on the measurability of results, on achieving a positive rate of return philanthropic investments, in attracting donors to ensure the effective management of the organization; strengthening adaptation practices and ideals of business management to the management of NPOs; social enterprise development. In general, the marketization of domestic non-profit sector has a positive impact on social capital in two directions at least. On the one hand, a non-profit organization will become less dependent on public funding or donors, diversifying sources of revenues and gaining some financial independence. The dominance of the financial paradigm in the NPOs will make effectively wasting all the resources of the organization (including temporary) that affect a concentrated cooperation with the most valuable groups or representatives of interest groups, changing course with a total coverage of the entire market, when resources and attention are on targeted approach. On the other hand, NPOs are forced to improve their competitiveness and the quality of services due to competitive pressure in the market by commercial enterprises. The experience of the NGOs of developed countries confirmed the effectiveness of market orientation, such as principles of marketing, as the priority of the needs of consumers and focus on improving the quality of the proposal fully comply with the mission of NPOs.  Conclusions and directions of further researches. Some directions to intensify marketing activity of domestic NPOs are proposed, such as: differentiation of consumer and producer of social services; shifting toward short-term contracts based on competitive principle, measuring of projects’ efficiency and conducting of social audit focused on results; strengthening adaptation practices and ideals of business management to managing NPOs; intensifying social entrepreneurship. Further studies will be devoted to studying of the principles and elements of marketing mechanism of non-profit entities social function.  

Keywords: marketing, NPO (Non-Profit Organization), non-profit sector, price, product, promotion, place

JEL Classification: M31, L30.

Cite as: Borysova, T. (2015). Vectors of marketing implementation into domestic practice of non-profit entities. Marketing and Management of Innovations, 4, 59-67. https://doi.org/10.21272/mmi.2015.4-06

This work is licensed under a Creative Commons Attribution 4.0 International License

References

1. Andrieiev, S., & Melnichenko, L. (2000). Osnovy nekommercheskoho marketinha [Bases of Non–Commercial Marketing]. Мoscow: Prohress-Tradition [іn Russian].
2. Volokytina, L. (2009). Modernizatsiіa vyshchoi osvity: marketynhovyі aspekt [Modernization of higher education: marketing aspect]. Donetsk: DONNUET [іn Ukrainian].
3. Pavlyk, Kh., & Bordun, N. (2011). Efektivnist vуkorуstannia nekomertsiinoho marketуnhu hromadskуmy orhanizatsiiamy Ukrainy: rezultaty opituvannia, provedenoho u 2011 rotsi [The efficiency of marketing non-commercial public organizations of Ukraine : results of a survey conducted in 2011]. Lviv: Spolom [іn Ukrainian].
4. Likarchuk, N. (2012). Political marketing theory and practice [Politychnyі marketynh: teoriіa i praktyka]. Kyiv: NPU named after M.P. Drahomanov [іn Ukrainian].
5. Obolenska, T. (2002). Marketynh u sferi osvitnikh posluh [Marketing in the sphere of education services]. Extended abstract of candidate’s thesis. Kharkiv: Kharkiv State Economic University [in Ukrainian]. 
6. Salohubova, V. (2011). Pidvyshchennіa konkurentospromozhnosti vyshchoho navchalnoho zakladu na zasadakh marketynhu [Increasing of competitiveness of the higher educational establishments on the basis of marketing]. Lugansk: SNU named after V. Dal [іn Ukrainian].
7. Smirnova, Ye. (2006). Upravlinnya marketynhom nekomertsiynykh subіektiv [Marketing Management of nonprofit entities]. Extended abstract of candidate’s thesis. Donetsk: DonNUET named after M.Tuhan-Baranovskiy [іn Ukrainian].
8. Chukhrai, N., & Patora, R., & Lialiuk, A. (2008). Marketynh i lohistyka u vyshchomu navchalnomu zakladi: Monohrafiіa [Marketing and logistics in the higher educational establishment: а monograph]. Lutsk: Vezha [іn Ukrainian].
9. Shubin, S. (2011). Politychnyy marketynh v derzhavnomu upravlinni Ukrayiny: teoretyko-metodolohichni zasady ta mekhanizmy vprovadzhennia  [Political marketing in government of Ukraine: theoretical and methodological principles and mechanisms of implementation]. Mykolaiv: Ilion [іn Ukrainian].
10. Dolnicar, S., & Lazarevski, K. (2009). Marketing in non-profit organizations: an international perspective. International Marketing Review, 26 (3), 275-291 [іn English].