Department of Business Administration

Title: Marketing Management in Non-Governmental- Organizations in

Kosovo

Author: Vjosa Mullatahiri

Personal number: 681223-T006

Research Paper

mMBA in Marketing Management

Study programme in
Master of Business Administration in Marketing Management

1
Research Paper
HIG – Högskolan i Gävle/ University of Gävle

Degree Programme: Master of Business Administration in Marketing Management

Identification 681223-T006
Number:
Author: Vjosa Mullatahiri
Title: Marketing Management in Non-Governmental Organizations in
Kosovo

Supervisor : Ernst Hollander

Abstract:
This research paper presents the marketing management of the nonprofit sector as a
prerequisite for NGO sustainability. It examines the existing literature on the nonprofit
marketing, the current situation of the local NGOs in Kosovo with regards to the
application of marketing. The research methodology follows the introduction and
presentation of the research objectives. The theoretical background introduces the
necessary baseline to analyze empirical findings. The empirical findings and analysis
reveal that nonprofit sector in Kosovo does not have a holistic marketing approach. The
focus of the research is to emphasize the importance of marketing orientation,
segmentation, and planning at nonprofit sector. Moreover, NGOs should create,
communicate and deliver values based on customers’ (beneficiaries, volunteers, and
donors) needs.
As a result of this research, a marketing plan guide was prepared. The guide aims to
educate NGOs in Kosovo about the benefits of having a holistic marketing approach and
will serve as basis for further marketing planning.
Keywords: Marketing management, Non-Governmental Organization (NGO),
Kosovo, marketing plan, beneficiaries, volunteer, civil society,
nonprofit sector
Number of pages 76
Language: English

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ACKNOWLEDGMENTS
This research paper is a result of a valuable contribution of 71 NGOs that responded to the
specifically designed questionnaire at the end of 2008 and beginning of 2009.

I would like to thank Professor Ernst Hollander, who guided me throughout the entire process
of thesis compilation and writing, and for advising me how to develop a useful tool for all
NGOs. Without Professor Hollander’s valuable experience with NGOs, this thesis and NGO
Marketing Plan Guide would have been just another “book in the shelf”.

I would also like to give credit and appreciation to Ms. Iris Duri for her invaluable assistance
throughout the entire process of questionnaire preparation and guidance through SPSS
(Statistical Package for Social Science) and data analysis.

Moreover, Lindita Baleta’s style and sincerity while editing my thesis and NGO Marketing
plan guide, made the research paper and user guide more understandable and user-friendly to
the NGO community.

My appreciation and gratitude go to Burim Korqa, Mentar Karjagdiu, Adem Nikqi and Faton
Peci, who assisted me with the interview process in every region in Kosovo.

Last but not least, I want to give my deepest appreciation to my family, whose support and
encouragement for my work throughout the entire thesis research and writing process never
wavered.

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TABLE OF CONTENTSDEPARTMENT OF BUSINESS ADMINISTRATION............................... 1
TITLE: MARKETING MANAGEMENT IN NON-GOVERNMENTAL- ORGANIZATIONS IN KOSOVO1
RESEARCH PAPER............................................................................................................................................. 1
ACKNOWLEDGMENTS ................................................................................................................................... 3
1 INTRODUCTION ...................................................................................................................................... 8
1.1 INTRODUCTION .................................................................................................................................... 8
1.2 BACKGROUND AND MOTIVATION FOR THE STUDY ............................................................................... 9
1.3 RESEARCH OBJECTIVES ...................................................................................................................... 12
1.4 RESEARCH QUESTIONS ...................................................................................................................... 13
1.5 DELIMITATION ................................................................................................................................... 13
2 RESEARCH METHODOLOGY ............................................................................................................ 13
2.1 INTRODUCTION TO THE RESEARCH DESIGN ........................................................................................ 13
2.2 PRIMARY AND SECONDARY DATA COLLECTION ................................................................................ 14
2.2.1 Sampling design ........................................................................................................................... 14
2.2.2 Questionnaire design - Challenges of the questionnaire design .................................................. 15
2.2.3 Primary data collection................................................................................................................ 16
2.2.4 Secondary data collection ............................................................................................................ 17
2.2.5 Research quality – reliability, validity and practicality of data ................................................... 17
3 THEORETICAL BACKGROUND ........................................................................................................ 18
3.1 INTRODUCTION TO LITERATURE REVIEW SHOULD BE SHORTENED AND THERE IS NO COHERENCE
BETWEEN THEORETICAL PART AND SURVEY ..................................................................................................... 18
3.2 NONPROFIT SECTOR CONCEPTS AND ROLES........................................................................................ 18
3.2.1 Definitions and terms (change the term customer to actors)........................................................ 18
3.2.2 NGO Importance and Roles ......................................................................................................... 19
3.3 WHAT IS MARKETING? ....................................................................................................................... 20
3.3.2 How marketing relates to nonprofit sector................................................................................... 23
3.3.3 Marketing challenges for nonprofits ............................................................................................ 24
3.3.4 Why marketing is relevant for nonprofit sector?.......................................................................... 25
3.4 THE MARKETING MANAGEMENT FOR NON-PROFIT SECTOR................................................................ 26
3.4.1 Marketing orientation................................................................................................................... 26
3.4.2 Market segmentation .................................................................................................................... 27
3.4.3 Marketing planning process......................................................................................................... 29
3.4.4 SWOT Analysis............................................................................................................................. 36
3.4.5 Developing marketing objectives ................................................................................................. 36
3.4.6 Key marketing strategies .............................................................................................................. 37
3.4.7 Defining Programs – Tactical marketing mix .............................................................................. 38
3.4.8 Budget .......................................................................................................................................... 41
3.4.9 Action Plans ................................................................................................................................. 42
3.4.10 Monitoring and Controlling .................................................................................................... 42
3.5 FUNDRAISING .................................................................................................................................... 42
3.5.1 Fundraising from individual donors ............................................................................................ 44
3.5.2 Fundraising from corporate donors............................................................................................. 44
3.5.3 Fundraising from Trust and Foundations .................................................................................... 45
4 EMPIRICAL FINDINGS ........................................................................................................................ 47
4.1 INTRODUCTION TO THE EMPIRICAL FINDINGS ..................................................................................... 47
4.2 THE SITUATION OF LOCAL NGOS IN KOSOVO .................................................................................... 47
4.2.1 Activities of the NGOs .................................................................................................................. 48
4.3 MARKETING APPLICATION BY LOCAL NGOS IN KOSOVO................................................................... 50
4.3.1 Basic information about NGOs - type of NGOs interviewed structures, frequencies by gender, age,
position and years of experience in civil society ........................................................................................ 50
4.3.2 Resource attraction and Resource allocation .............................................................................. 51
4.3.3 Research and planning process in the organization..................................................................... 52
5 ANALYSIS AND REFLECTION ........................................................................................................... 57

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 5.1 INTRODUCTION TO THE ANALYSIS AND REFLECTION .......................................................................... 57
5.2 THE ROLE OF NGO COMMUNITY AND HOW THEY ARE PERCEIVED BY THE COMMUNITY IN KOSOVO . 57
5.3 MARKETING MANAGEMENT AND LOCAL NGOS IN KOSOVO .............................................................. 58
5.3.1 Application of market orientation and market segmentation by Local NGO ............................... 58
5.3.2 Market planning process at LNGOs............................................................................................. 60
5.4 THE ROLE OF MARKETING FOR FUNDRAISING ..................................................................................... 63
6 RECOMMENDATIONS AND CONCLUSIONS.................................................................................. 65
Recapitulation............................................................................................................................................. 65
Theoretical and practical implications....................................................................................................... 66
Concluding remarks ................................................................................................................................... 67
7 REFERENCES ......................................................................................................................................... 68
APPENDIX 1. TABLES FROM THE PRIMARY DATA COLLECTION.................................................. 71

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LIST OF FIGURES AND TABLES

LIST OF FIGURES

Figure 1 The role of nonprofits in society (Fig1.2, Sargeant,) ........................................................................... 19

Figure 2 Holistic Marketing Dimension (Kotler and Keller, 2006, Fig.1.3, p.18) .............................................. 22
Figure 3 Marketing Orientation (adopted from Deng and Dart, 1994, by Sargeant).......................................... 27
Figure 4 The marketing planning process (adopted by Sargeant, 1999, Fig.4.1 and Westwood, 1997, Fig1.1) . 31
Figure 5.Positioning Map (taken from www. MarketingTeacher.com................................................................. 38

TABLE OF CONTENTS - TABLES

Table 1 Market Analysis in NGO (Sargeant, 1999, Fig4.3)................................................................................. 33
Table 2 Competitor Analysis in NGO (adopted from Sargeant, 1999) ................................................................ 34
Table 3Analysis of the public for NGO (adopted from Sargeant, 1999) .............................................................. 35
Table 4 Internal marketing analysis of the organization (adopted from Sargeant, 1999) ................................... 35
Table 5 The application of the Marketing plan by Type of NGO ......................................................................... 52
Table 6 Marketing plan possession vs Importance .............................................................................................. 53
Table 7 How often NGO's analyze the competition.............................................................................................. 54
Table 8 How often NGO's analyze customer's needs ........................................................................................... 54
Table 9 Primary and Secondary tools for analyzing customer needs .................................................................. 54
Table 10 Budget for conducting Marketing ......................................................................................................... 56

LIST OF TABLES IN APPENDIX 1

Table1. 1 NGO's indicated by Type...................................................................................................................... 71
Table1. 2 Organizational structure as per legal status........................................................................................ 71
Table1. 3 Break down by Position in the NGO * Years of the experience with NGO.......................................... 71
Table1. 4 Break down by Position in the NGO * Age .......................................................................................... 72
Table1. 5 Key funding sources targeted by local NGOs ...................................................................................... 72
Table1. 6 Resource allocation according to its priority - primary beneficiaries ................................................. 72
Table1. 7 Resource allocation according to its priority - secondary beneficiaries............................................. 73
Table1. 8 Marketing Plan and Body involved in planning................................................................................... 73
Table1. 9 Marketing plan and People involved in implementation...................................................................... 73
Table1. 10 How often Marketing plan is updated ................................................................................................ 73
Table1. 11 Primary and Secondary factors determining the direction of the organization ................................. 74
Table1. 12 Strengths categorized by their level of importance ............................................................................ 74
Table 1. 13 Weaknesses categorized by their level of seriousness ....................................................................... 74
Table1. 14 Opportunities categorized by their level of attractiveness ................................................................. 74
Table1. 15 Threats categorized by their level of seriousness............................................................................... 75
Table1. 16 Promotion Mix and the frequency of utilization of different promotional tools................................. 75
Table1. 17 Service evaluation .............................................................................................................................. 75
Table1. 18 Staff evaluation .................................................................................................................................. 76
Table1. 19 Level of satisfaction............................................................................................................................ 76

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ABBREVIATIONS AND TERMINOLOGY

BoD Board of Directors

CBO Community Based Organization
CSO Civic Society Organization
FDI Foundation for Democratic Institute
ICNPO International Classification of Non-Profit Organization
KCSF Kosovo Civic Society Foundation
KFOS Kosovo Foundation for Open Society
KHDR Kosovo Human Development Report
KPEP Kosovo Private Enterprise Program
LNGO Local Non Governmental Organization
MANGO My Own NGO
NGO Non Governmental Organization
PEEST Political Environmental Economical Social Technological
SOE Socially Owned Enterprises
SMART Specific Measurable Achievable Realistic Timely basis
SPSS Statistical Program
SWOT Strengths Weaknesses Opportunities Threats
UNDP United Nations Development Program
UNMIK United Nations Mission In Kosovo
YCP Yugoslavian Communist Party

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1 INTRODUCTION
1.1 Introduction
NGOs are engines that ensure civil society development and economic development (Drucker
P.), because of their strong links with community, businesses and the government.
Although NGOs tie together all these actors, they still struggle for recourses necessary to
accomplish their purpose. Besides, rapidly changing environment, globalization and
information technology, altered the way how NGOs were addressing community needs
(Sargeant, 1999) but also changed the way how NGOs compete for resources (Kotler and
Murray (1975). In this regard, Kotler and Levy (1969) were first to announce that marketing
goes beyond than just ‘satisfying customer needs profitably’, according to them marketing is
used also by NGOs although they do not recognize it. Nowadays, marketing is described as a
process through which individuals and groups satisfy their needs through ‘creating, offering
and freely exchanging services of value with others” (Kotler and Keller, 2006, p6).
Although nonprofit marketing as a concept was introduced since 1970, in Kosovo LNGOs
are not aware of its importance, moreover marketing is considered inappropriate for their
needs (Brennan and Brady, 1999).
Therefore, the purpose of the paper was to research how marketing is used by local NGOs in
Kosovo whilst indicating its importance in fundraising efforts and contribution to NGO
sustainability.
The paper comprises of six parts. The introduction gives a short background on Kosovo’s
situation and phases of development of the civil society; the research methodology indicates
the process of collecting secondary and primary data regarding LNGOs development. Due to
a large number of registered NGOs in Kosovo, the research was confined to the sample frame
of around 170 LNGOs. Although the interviews were conducted using different tools, such
as: e-mails, telephone and face to face interviews, only 41.7% of LNGOs responded.
The theoretical background introduces aspects of the marketing in general, its relation with
the nonprofit sector, and also stressing the importance of marketing plan to uphold
fundraising whilst contributing to sustainability of the NGOs.
The findings from the research are processed through SPSS and presented at the empirical
findings section, by indicating the structure of LNGOs, resource attraction and allocation,
research and planning process at the LNGO level including environmental scanning, SWOT
analysis, and marketing budget and staff performance evaluation.

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Subsequently, data from empirical findings were analyzed and commented on the analysis
and reflection section, indicating that LNGOs in Kosovo do not have a holistic approach to
marketing but this approach is rather superficial. Moreover, out of 19 NGOs who possessed
marketing plan, none of them had any marketing budget to implement it, the LNGOs
marketing is rather in carried out on project basis. All these factors indicate that LNGOs are
striving for survival because there is no holistic marketing approach on how to market their
services and raise funds from donors (individual, corporate or trust/foundations).
Finally, based on the theoretical background, empirical findings and results from the analysis
I’ve presented conclusions and recommendations. The paper indicates the importance of
marketing plan for fundraising efforts and NGO sustainability.
This paper is valuable for NGO community and for practitioners because for the first time in
Kosovo the issue of nonprofit marketing and how important its application is has been
addressed. Moreover, the marketing plan guide (in Albanian) will be sent to all NGOs who
contributed to this research, and this will assist them to address some important issues during
their planning process.
Lastly, the paper suggests a follow up research (with focus groups) in order to establish
whether LNGOs used the marketing plan guide, and if so, how it upheld fundraising and
NGO sustainability.

1.2 Background and motivation for the study

Kosovo was part (province) of ex-Yugoslavia (former socialist country), where social and
business life was regulated by the government. Ex-Yugoslavia was constituted of 6 republics
and 2 autonomous provinces led by a monist political system – the Yugoslav Communist
Party.
The self-governing socialism distinguished ex-Yugoslavia economy from other socialist
countries. The constitution of ex-Yugoslavia (1974) and Law on Enterprises (1988),
established grounds for a self-governing economy by transferring managerial powers from
state to workers, thus distinguishing Socially Owned Enterprises1 from Publicly Owned
Enterprises.
Although by law enterprises were governed by workers councils, decisions were still
influenced by the Communist Party, as the director was appointed by the Yugoslav
Communist Party (YCP).
1
Socially Owned Enterprises – are enterprises that were registered under the Law on Enterprises and the
majority of its assets are in social ownership or the majority of capital is social capital, Available at:
http://www.kta-kosovo.org/ktareg/UNMIK%20Regulation%20No.%202002-
12%20Establishing%20the%20KTA.pdf

9
As indicated above, although the economy was a self-governing one, business activities were
organized and regulated by YCP. The production volume and market demand were also
coordinated by this group. Everything was ‘planned’. There was no production surplus. On
the contrary, during the 70’s, Yugoslavia as any other socialist country faced scarcity of
commodity products; there were times when people were waiting in long queues for the basic
food items. As there was no competition, the demand was larger than supply. Hence, there
was no need to market products because the market was already secured and the attitude
toward the customer was “take it or leave it”.
Inter alia, social activities (volunteer and youth activities) were also organized by YCP while
not addressing the immediate needs of young people but the party’s political agenda. People
(youth) were obliged to participate in volunteer activities. Absence in any of these activities
had to be justified and certified by doctor (if sick) or if not, the student would get a bad mark.
There were no formal associations (unbiased, impartial) but there were some informal groups
such as craftsman groups, whose members were also members of YCP. This shortly explains
to the reader how social activities were regulated by YCP (state) before the 90’s.
After 1991, as a result of atrocities by Milosevic, ex-Yugoslavia faced economical drawbacks
and political deterioration. Slovenia was separated from ex-Yugoslavia, Croatia and Bosnia
& Hercegovina entered into war, while Kosovo’s autonomy was abolished and people of
Kosovo faced massive repression violating the basic human rights (education, freedom of
speech, health etc), of every Albanian in Kosovo ending with war genocide at 1999.
Attempting to find ways to survive the already difficult situation, the people of Kosovo were
organized in informal (called ‘illegal groups” by the Serbs) Civil Society Organizations
(CSO) that filled up the gap for political, educational and health systems. There were
humanitarian organizations such as Mother Teresa Association, Motrat Qiriazi, which helped
the population with food and other health services; political organizations, Democratic
League of Kosovo leading Kosovo Albanians during their most difficult stage; and human
rights organizations such as the Council for the Defense of Human Rights and Freedoms.
Although these structures were functioning ‘illegally’ (as labeled by Serbian Government),
they were well-known organizations among the population, which worked on voluntarily
basis to address the immediate need of the Kosovo community. At this stage (second phase)
of the Civil Society Organizations (CSO) development, there was no need for marketing. The
question is, why? Because the establishment of these organizations was based on the need, on
voluntarily work, joint effort to achieve the common goal, which united all people of Kosovo.

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Currently, after the war in 1999, community needs changed, and with that CSOs agendas
changed as well. The promulgation of UNMIK Regulation No. 1999/22 On Registration and
operation of the Non-Governmental Organizations–NGOs opened the third chapter (stage) of
the CSOs development because it established foundations for the legal operation of these
organizations. Compared to other NGO regulations in the region Regulation No. 1999/22 is
very liberal, because it requires only three founders (one should be citizen of Kosovo) to
register the NGO.
This is one reason why the NGO community in Kosovo is blooming, from 130 registered in
2001 to 3000 registered as of 20052, and more than 4070 registered NGOs in 20083. The
other reason is that due to economical stagnation as a result of war, NGOs are viewed as job
creation structures.
The NGO community is fragile and has not reached the expected level of development4. The
level of development incorporates the specialization of the NGOs into specific areas and the
development of their strategic objectives including marketing strategies.
Moreover, the NGO community is donor-driven because their activities are not oriented
towards achieving their mission and/or based on their cause but as per donor requirements
and agendas. That is why in Kosovo, the concept donor driven is used very often.
Considering the above mentioned, the quantity not necessary means quality, thus having such
a large number of registered NGOs is not an indicator that the civil society is well-developed
or active (KCSF, 2005).
The KCSF report2 also indicates that approximately 600 or 14 % of the registered NGOs are
active, while this percentage is falling every year, due to lack of funding as a result of a
decreasing donor presence.
Moreover, the percentage is falling because NGOs have internal problems such as: failure to
take their roles and responsibilities seriously; failure to understand the importance of
membership and service provisioning; NGOs are identified with one person - MANGO
syndrome (My Own NGO); loosing their reputation due to being biased and politicized; and
failure to understand the importance of keeping their promises in order to attract new
members/volunteers.
To illustrate one of the issues, I will take an example from my UNDP experience working
with NGOs and volunteers. Most of volunteers complained that NGO leaders promised ‘that

2
Kosovo Civil Society Foundation, 2005, Mapping and analysis of Kosovo’s Civil Society, Prishtinë, Kosovë
3
Ministry of Public Affairs, 2007, List of registered local NGOs
4
Retrieved from http://www.freedomhouse.hu/images/fdh_galleries/NIT2007final/nit-kosovo-web.pdf

11
those who volunteered their time will benefit from training or study visit outside Kosovo or
payment of daily expenses’, however in most cases (without seeking to generalize) this did
not happen, because of nepotism (the benefits went to leaders’ family members).
As a result of such actions the NGO are losing reputation and the interest for volunteer work
is declining.
Ten years of experience working with NGOs from the donors perspective and as a leader of
the NGO from the implementer’s perspective, and two years study in the field of Marketing
Management motivated me to conduct a research study on how marketing is perceived,
understood and conducted (if conduced at all) by local NGOs in Kosovo, and whether well-
developed marketing plan and strategies have a positive effect on the fundraising activities to
contribute to NGO sustainability.
Being part of this sector for a long time, I truly believe that NGOs can improve public trust in
the volunteer sector by keeping their promises, as the most important part of marketing,
because “you can fool your customers/beneficiaries once, but not twice”; and improve their
credibility in service provisioning by practicing the substance of marketing strategies, not
only trappings (Brennan and Brady, 1999).
Hence, taking into account the above mentioned reasons, the aim of my research is to
contribute towards development and sustainability of the third sector (pillar) of the society
(Kotler and Murray, 1975).
In the course of my research, I have deemed it necessary to prepare a specific Marketing
Planning Guide for the nonprofit sector, as a point of reference when conducting their
marketing or parts of marketing. The guide will be distributed to all NGOs who have
responded to my questionnaire.

1.3 Research objectives

Until 1970, marketing was considered as a tool used only by for-profit (commercial) sector.
When Kotler and Levy first opened the debate on nonprofit marketing, they were criticized
for stretching the marketing beyond its range (Sargeant, n.d). Nonprofit sector performs
marketing activities (Kotler and Levy 1969, cited in Denney, 1998), although they do not
recognize it, or often consider it as inappropriate to their needs (Brennan and Brady, 1999).
Considering the above said the objectives of my research are:
- To identify how marketing is practiced by NGOs in Kosovo;
- To understand the Strengths, Weaknesses, Opportunities and Threats of the NGO
community in Kosovo with regards to marketing management;

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 - To develop marketing plan guide specifically for the nonprofit sector for Kosovo;

1.4 Research questions

Following are the research questions:
1. How marketing is perceived and utilized by NGOs in Kosovo?
2. Do NGOs in Kosovo perform marketing audit?
3. What are the main funding resources for NGOs in Kosovo?
4. What are their Strengths, Weaknesses, Opportunities and Threats?
5. Do NGOs in Kosovo have separate budget to perform marketing activities? and
6. How marketing plan is perceived by them?
The answers to all questions are introduced at the Chapter 4 – Empirical Findings,
summarized and elaborated at the Chapter 5 – Analysis and Reflection.

1.5 Delimitation
The main focus of the research paper is the marketing management of the nonprofit sector
and how marketing plan could improve fundraising and increase chances of sustainability. .
Compared to the International Classification of Non-Profit Organization (ICNPO) (Sargeant,
1999), which classifies non-profitable organizations into 12 groups5, the present law6 that
governs the registration and operation of the nonprofit sector in Kosovo, organizes this sector
in only two structures: as associations and as foundations and the field of operations is
determined by the establishment act.
Therefore, whenever I mention in this research the NGOs and the nonprofit sector, please
note that it partly covers cultural and recreational group; social services group; environmental
and international activities group; law advocacy and politics group; and one part of education
and training group.

2 RESEARCH METHODOLOGY
2.1 Introduction to the research design

Research design is the plan and structure of the investigation in order to obtain answers to the
research questions (Cooper and Schindler, 2003, p146).

5
Classification as per ICNPO (1= Culture and Recreation; 2= Education and Research; 3 =Health; 4 =Social
Services; 5= Environment; 6= Development and Housing; 7= Law Advocacy and Politics; 8=Philanthropic
Intermediaries and Volunteerism Promotion; 9= International Activities; 10=Religion; 11= Business
professional Associations and Unions; 12= Not Elsewhere Classified
6
UNMIK Regulation 1999/22

13
This study research is a formal study, built upon previously defined research questions; has
descriptive purpose; is cross-sectional since it represents a snapshot of the NGO situation
regarding marketing management and it occurs under the actual environment (under field
conditions). (Cooper and Schindler, 2003, p146-149).
A quantitative research is used, in order to conduct a thorough analysis in providing answers
to the research questions regarding how much marketing is understood and exercised by local
NGOs in Kosovo.

2.2 Primary and Secondary Data collection

The appropriate method for collecting the primary data for the purpose of this research was
interview/communication method through designing a questionnaire which was distributed to
local NGOs. The primary data was collected via e-mail, telephone, and face to face
interviews with executives and/or senior officers of the organizations.
With the intention of reducing the error in collected data, secondary sources from different
organizations such as Analysis of Civil Society in Kosovo (Kosovo Civil Society Foundation
– KCSF, 2005), Kosovo Human Development Report (KHDR) on Civil Society (UNDP data
analysis, 2008) and information from NGO registry office were used.
Course literature, journals, articles and reports from different governmental organization
enriched the secondary data by providing basic concepts of the theoretical background of the
study research.

2.2.1 Sampling design

The idea of sampling was to select representative elements from the total population of
registered NGOs in Kosovo which in this case is more than 4070 registered NGOs7. The
reason for using the sample was to reduce the cost; save time; provide accurate information;
and because not all registered NGOs are active (available).
According to KCSF Report of 2005 from the total population of registered NGOs,
approximately 600 are active, in other words 14%, which represent the sampling frame or the
total population of my research. The sample frame was created by screening and matching
the available information from three databases (NGO registry database, KCSF database and
UNDP database of active NGO’s), where a digit ‘1’ inserted for all active NGOs in the
registry list.

7
List of registered NGOs in Kosovo, Registry Office, Ministry of Public Services

14
There are 4 alternatives for probability sampling such as: 1) systematic sampling; 2) stratified
sampling; 3) cluster sampling and 4) double sampling (Cooper and Schindler, 2003, p188-
200).
For purposes of this research and in order to have representation from all regions I have used
a combination of cluster sampling by creating sample frame for 5 regions in Kosovo (14% for
each region) and systematic sampling by choosing every 5th element in the sample frame (or
20% of active NGOs).

2.2.2 Questionnaire design - Challenges of the questionnaire design

The questionnaire was one of the main instruments to collect the primary data. The main
purpose of it was to develop a structure of the quantitative data which will ascertain the size
of how much marketing management is utilized by NGOs in Kosovo.
The questionnaire was prepared in Albanian language. The respondents were informed about
the purpose of the interview and were assured that the data provided was strictly for the
purpose of the research and would be kept confidential.
The questionnaire included 43 questions structured in 5 sections: general information about
the respondent and the organization; organizational structure; sources of funds and
beneficiaries; the planning process at the organization; and the evaluation process for both
services and employees.
Every section had its pool of questions, which were close-ended questions with multiple
responses directing the respondent to choose 1 and/or 4 answers, and categorize the answers
based on importance/threat that presented/or priority for the organization, while depending on
the nature of the question the respondent had an opportunity to add his/her opinion..
Each section will be described below:
• General information on the respondent and organization - this section comprises of
12 questions covering information about the respondent’s position in the organization,
years of experience with the NGO community, region/municipality, the form of the
organization and organization’s year of the establishment. The section is important
because it provides valuable data regarding respondents experience with civil society,
and the basic information for the organization where the marketing plan guide will be
posted as a sign of courtesy for their time and effort.
• Organizational structure - comprises of 4 questions, one of which is multi-response
question. The section provides information regarding the structure of the organization,
number of the employees, and volunteers. The importance of this section lies in the

15
 respondents’ knowledge of the valid structures of the NGO as per the current
regulation6 and if the organization has volunteers because they can play an important
role for marketing of the organization,
• Sources of funds and beneficiaries – comprises of 3 multi-response questions which
provide information about the structure of funds, responsible body for fundraising and
primary/secondary beneficiaries or better say why the organization exists.
• The planning process at the organization – is the main section of my research that
contains 20 questions (10 multiple-response questions). The importance of this
section indicates respondents understanding regarding market research, SWOT,
environmental scanning, marketing techniques, structures involved in marketing
planning and implementation (if the organization has this plan), their opinion
regarding marketing and if their organization has a specific budget to conduct
marketing.
• The evaluation process for both services and employees – contains 4 questions
providing information on a very important issue of marketing such as evaluating and
monitoring services and staff compliance with customer needs and requirements.

In order to cover 5 regions of the Kosovo, the questionnaire was distributed via e-mail. In this
regard, initially the questionnaire was developed as WordDoc Template allowing the
respondent to fill only the required fields but after pilot testing with some NGOs, the
questionnaire was made more, practical while some questions were clarified and articulated
differently.
In consultation with IT and Data Wrangler Specialist, the questionnaire was converted into
PDF format, because this format allowed variable creation for every answer (to the question),
that is the extraction of the data from PDF into Excel and to SPSS was more practical to carry
out further analysis.

2.2.3 Primary data collection

Different international and local institutions in Kosovo have conducted research studies
concerning the CSO’s activism, sustainability, their role in the society, media, and
influencing political decision, but until now there is no data on research on NGO marketing
management as bases for their sustainability, directly relating with them being active in
community life and decision making processes.

16
Since the study research involved NGOs Kosovo wide, I must say that primary data gathering
was one of the main challenges.
My initial aim was to interview 100 NGOs (20 NGO’s per 5 regions), but during the phase of
sample design I reached the conclusion to conduct the research with 20% of the active NGOs
(14% of 4070 registered ones). Being aware of the fact the number of responses via-email
would be lower compared to other methods of research, and in order to have a representative
sample, the questionnaire was distributed to approximately 170 (28% NGOs).
The planned timeframe for sending questionnaires and receiving them back was 1 month.
During the scheduled time only 35 filled questionnaires were received, therefore a need to
switch the research method from e-mail to telephone interviews and face-to-face interviews
emerged, enabling me to gather both quantitative and qualitative data.

2.2.4 Secondary data collection

Secondary data was used to get better insight on the research topic, to develop better
understanding of the CSO’s situation in Kosovo and to design the sample frame and
questionnaire for retrieving the primary data.
Information on marketing management in nonprofit sector was retrieved from different
scientific articles from online libraries and journals, course literature, e-books, UNMIK
Regulations on NGO operation, governmental and donor reports.
Secondary data was essential to establishing the viable platform for the theoretical framework
constituting the bases of my research.
A thorough theoretical framework helped clarify dilemmas about nonprofit marketing as a
precondition for fundraising and NGO sustainability.

2.2.5 Research quality – reliability, validity and practicality of data

As indicated by Cooper and Schindler (2003, p229-236) validity, reliability and practicality
are three criteria for evaluating the research quality.
Validity indicates if the research is measuring correctly what we wanted to measure, whilst
there are three forms of validity 1) content validity; 2) criterion-related validity; and 3)
construct validity (Cooper and Schindler, p231). As per the researcher’s judgment the data
collection instrument (questionnaire) adequately covers the topic of marketing management.
Due to systematic and random errors coming from a) the participant/respondent; b) the
situation; c) the measurer; and d) the data collection instruments, the results of the research
can not be 100% accurate. The same was observed during this research i.e. some respondents
were reluctant to select answers which would create a bad impression for the organization;

17
this was mostly when they were asked to identify their weaknesses and prioritize them
according to their seriousness.

3 THEORETICAL BACKGROUND
3.1 Introduction to literature review should be shortened and there
is no coherence between theoretical part and survey
The following chapter will elaborate important theoretical aspects of the marketing
management for the non-profitable sector. The literature review is divided in four parts. The
first part presents important aspects of nonprofit sector, classifications and its role; the second
part introduces marketing concepts and how it relates with nonprofit sector; the third section
gives a short introduction of the fundraising hence clarifying and stressing the importance of
the well prepared marketing plan in fundraising efforts; while in the end important tips for
successful fundraising will be presented.
In the end the research paper will result with a practical guide for a Marketing Plan for
Nonprofit Sector Executives (in Albanian) to be distributed to NGOs that responded.

3.2 Nonprofit sector concepts and roles

3.2.1 Definitions and terms (change the term customer to actors)
Depending on country specifics, nonprofit organizations (NPO) or Non-Governmental
Organization (NGOs) are conceptualized differently. The existing literature defines NGOs as
organizations that have legal status (registered NGOs), or as groups of individuals who are
gathered on voluntarily bases; or as groups of private individuals who operate independently
from the state with a purpose of improving community life without any commercial benefit.
(KCSF, 2005).
Salamon and Anheier (1997, p27) in their efforts to analyze nonprofit sector in thirteen
countries, defined the term ‘nonprofit sector’ as a wide variety of institutional types that vary
in their basic composition depending from place to place.
Sometimes, nonprofit sector is referred to as a third sector: neither governmental, nor
business, but characterized by its orientation toward social responsiveness. (Keller and
Murray, 1975)
Nonprofit organizations are defined as organizations that exist for the benefit of the society,
for providing physical goods and services, not for gain or profit, as a result, do not distribute
profits or surpluses to shareholders or members (Sargeant,1999).

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There are different names for nonprofit organizations, in some textbooks they can be found
as NFPs (Non-For-Profits), NGOs (Non-Governmental Organizations), NPO (Nonprofit
Organizations), CSO (Civil Society Organization), NFGOs (Non-For-Gain Organizations),
the voluntary sector, charitable sector, independent sector, third sector, tax-exempt etc.
(Sargeant, 1999; Salamon and Anheier, 1997).
In general, there are at least five characteristics applicable to all nonprofits that is that NGOs
are organizations; not part of government; do not distribute profits to their stakeholders; are
self-governing; and serve a public purpose. (Salamon and Anheir, 1996; cited in Lowell,
2000, p1).
Given the fact that nonprofit sector is very broad, for the sake of simplicity, the research will
be focused only in NGOs which are registered as per UNMIK Regulation 1999/22, excluding
labor unions, universities, churches, mosques, hospitals which in Kosovo’s reality are
registered and operate under other regulations. In this report the terms NGO, CSO and
nonprofits are used interchangeably.

3.2.2 NGO Importance and Roles

NGOs or CSOs play an important role in the economic and social development of one
country. Peter Drucker indicated that civil society organizations are the engine toward
progress ensuring the development of one country (Drucker, 2005).
In developing countries, the development is seen as process where government has to work
for people rather than by people (HDR, 1993). Sometimes, government perceives civil
society structures as competition or opposition. This behavior is partly as a result of socialist
system, which implanted in peoples mind the idea that ‘if you are not with them you are
against them’. But it is obvious that governments cannot address all needs of the community
that is why NGOs should be seen as partners in addressing the particular community need
(Kotler and Murray, 1975). With time, people’s perceptions and attitudes are changing.
In other words, NGOs are filling the gap ‘between structures that lock people out and
strategies that welcome people in’ (Fazlon, 2007) by mobilizing the public to pressure
government for fast-acting and decision making for a particular issue; increasing peoples’
participations in decision making processes in central and local level; and raising awareness
and addressing the needs in health, economical and social sector. The role of nonprofits in the
society is figuratively explained by Sargeant (1999, p8), hence NGOs make the main node of
the relationship between all sectors involved.
Figure 1 The role of nonprofits in society (Fig1.2, Sargeant,)

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 Civil society

Nonprofit
organization

Government
Private
sector

Although NGOs play an important role in this circle, they strive for survival and resources
necessary to accomplish a purpose. In order to succeed organizations have to attract sufficient
resources, convert them into goods and services, and distribute the outputs to various
consuming public (Kotler and Murray (1975), since NGOs no longer compete just with one
another for funds, but also with private companies (Sargeant, 1999), as a result of which, the
ways for attracting resources changed from donations to commercial sales activity (Clarke
and Mount, 2000).

3.3 What is marketing?

As per Chartered Institute of Marketing (cited in Sargeant, 1999; Clarke and Mount, 2000),
marketing is ‘a management process responsible for identifying, anticipating and satisfying
customer requirements profitably’. The definition itself stipulates that marketing is perceived
more as a task exercised by businesses (profit sector).
Along the years the marketing focus shifted “from commodity focus (farms, products, goods
and services); to institutional focus (producer, salesman, wholesaler); to a functional focus
(buying, selling, promoting distributing, pricing, transporting); to a managerial focus
(analyzing, planning, organizing, coordinating); than in the end “to a social focus (social
impact, product quality, market efficiency)” Kotler (1972).
In general, Kotler (1972) argues that the disciplinary focus of marketing is both: the exchange
of values including time, money, knowledge, energy, goods and services between two
parties; and the process of creation, stimulation, facilitation and valuation of these
transactions (Kotler and Keller, 2006).

20
According to Sargeant, (1999), marketing is not a departmental task but a general
organizational approach towards its customers. The organization should place “customer’s
rights at the center…” and develop products and services based on their needs.
Some organizations establish marketing department to hard sell their products or services
(Sargeant, 1999) and not to ascertain, understand, and offer services as per customer needs
with which begins and end the marketing concept. (Sargeant, 1999, Kotler and Keller, 2006).
But to succeed in highly competitive market and capture customer value, the organization has
to consider the holistic marketing approach by “…integrating value exploration, value
creation and value delivery activities with the purpose of building long-term, mutually
satisfying relationships…among all stakeholders’ (Day,1994). The holistic marketing
approach constitutes of four marketing components described in Fig2. (Kotler and Keller,
2006, p18):

Relationship marketing – involves establishing and maintaining mutually satisfying
relationships with all stakeholders (customers, suppliers, distributors, employees,
investors, government) to outperform competition and ‘achieve a profitable
growth’.

Internal marketing – means hiring, training, and satisfying employees, who will
offer satisfactory services to the end customer. The internal marketing happens in
two levels: at the functional level where production, customer service, sales force
work together; and at managerial level when management should have “customer
center approach” (Kotler and Keller, 2006, p.20; Sargeant, 1999)

Social responsibility marketing – requires by the organizations to consider
organizational impact at the social welfare, because often company’s profits,
customer’s satisfactions and public’s interest contradict one another. Social
responsibility marketing aims to explore create and deliver value to customers
without endangering social wellness (Kotler and Keller,2006).

Integrated marketing – involves all marketing activities that create, communicate
and deliver value to customers.

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 Marketing
Customers
Department

Senior Internal Suppliers

Relationship
Management Marketing Distributors
Marketing

Other Partners
Departments
Holistic
Marketing

Ethics Communication

Environment Integrated Products &

Social
Marketing Services
Marketing
Legal
Communication
Community Channels

Figure 2 Holistic Marketing Dimension (Kotler and Keller, 2006, Fig.1.3, p.18)

The integrated marketing is achieved by utilizing marketing mix defined by McCarthy (cited
in Kotler and Keller, 2006) as 4 sets (Ps) of marketing tool for pursuing marketing objective.

3.3.1.1 Marketing Mix

The concept of marketing mix firstly was introduced by Neil Borden on 1950 then
categorized (simplified) by McCarthy in 4 groups labeled as 4 Ps such as Product, Place,
Promotion and Price (Grönroos, 1994; Waterschoot and Bulte, 1992).
The right mix (blending) of 4 Ps will give result toward achieving organizational goals.

Product – indicating quality, form, design, features, packaging, size, warranties,
brand name of the product etc. (Sargeant, 1999; Kotler and Keller, 2006)

Price – indicating the cost of the product and organizations profits (Sargeant, 1999)

Place – indicating to the location where the product will be placed and channels
through which product/service will be transported, distributed; (Sargeant, 1999)

Promotion – indicating sales promotion, advertising, sale agents, public relations,
direct marketing (Sargeant, 1999;Kotler and Keller, 2006; Waterschoot and Bulte,
1992) and all other tools applied to inform the customer about product existence.
Although, marketing mix became universal marketing model (or paradigm) Grönroos (1994)
argued that the mix is more from seller’s view point (product oriented) and does not cover
services nor fit to every market situation.

22
Thereupon to cover the aspect of intangible goods (services), Booms and Bitner (1981, cited
in Sargeant, 1999) proposed 3 additional Ps.:

Physical evidence – that refers to the environment where services are provided;

Process – that refers to the flow of the activities where customer involvement for
service delivery is necessary;

People – as the most important aspect of service marketing mix, refers to employees
who are in direct contact with the customers. Some extant literature defines people
with “the face of the organization”.

3.3.2 How marketing relates to nonprofit sector

The marketing definition itself “…satisfying customer needs profitably” excluded nonprofit
sector. In this regard, Kotler and Levy (1969) were the first to point out the social aspect of
marketing and indicate that nonprofit organizations exercise marketing activities (Denney,
1998) even though marketing is considered inappropriate for their needs (Brennan and Brady,
1999). From the societal perspective marketing is a process through which individuals and
groups satisfy their needs through ‘creating, offering and freely exchanging products and
services of value with others’ (Kotler and Keller, 2006, p6). Thus, marketing facilitates the
exchange process between organizations and the society for fulfilling the community needs.
Many authors have criticized this concept because marketing is concerned with markets
characterized by buying-and-selling whilst this exchange is not practiced at nonprofit sector,
therefore according to him marketing concept was stretched ‘to far’ Luck (1969).
Nevertheless, all organizations, be it profitable or non-profitable perform: financial function
(raising and managing money); production function (use inputs to produce outputs);
personnel function (hiring, training, assigning promoting and firing people); purchasing
functions (selecting sources of suppliers), in one word perform business functions.
If NGOs perform these functions then they also perform marketing functions, although NGOs
do not acknowledge it (Kotler and Levy,1969). The only difference of the marketing function
at the nonprofit sector is that there is ‘clear distinction between resource attraction (donors)
and resource allocation (beneficiaries)’ (Sargeant, 1999).
Every NGO has its customers or market (Kotler,1972) otherwise why attract resources if not
able to allocate them. Depending on type, function, and influence of the organization
different authors (Sargeant, 1999; Brennan and Brady, 1999) identified different categories of
customers with less formal relationships compared to for-profit sector (Gwin, 1990). IN the

23
other hand Brennan and Brady (1999) re-conceptualized NGO customers’, by using the ‘six-
markets model’:
- Customer market – comprises of recipients (beneficiaries) of the product/service
and donors;
- Referral market – comprises of people and/organizations who refer potential users
to the organization (i.e. current customers, suppliers friends and family);
- Influential market – comprising of influential people who are able to influence
others with word of mouth (artists, football players, singers etc);
- Suppliers market – are people and/or organizations which supply the goods and
services, ideas for customer markets (intermediaries, funding agencies);
- Internal market – are current employees, volunteers, board members of the
organization who are directly involved in service provisioning;
- Recruitment market – are potential employees, volunteers, and board members
who are interested to contribute to the community.
For the sake of simplicity in my report NGO markets are categorized in three broader groups:
Volunteers, or internal market, who offer their time, knowledge, and experience for the
benefit of the society but at the same time indirectly benefit themselves (Brennan and
Brady,1999);
Beneficiaries (customer market) who benefit directly from the reception of goods or services
provided by the organization; and
Donors (suppliers markets) comprising of all donors including individual donors, corporate
donors, government funders.

3.3.3 Marketing challenges for nonprofits

Although, nonprofits per se are not concerned with “profit”, they are becoming more and
more commercially aware (Clarke and Mount, 2000). However, the marketing concept is still
misunderstood since they adopt trappings instead of the substance of marketing, (Brennan
and Brady, 1999).
Since nonprofits are not concerned with ‘profits’ the objectives and the expected result are
stated in terms people served (benefited). The “non-financial objective” against which
performance is monitored and measured, is a challenge during the process of marketing
management (Drucker, 1990; Brennan and Brady, 1999).

24
The second challenge is that nonprofits mostly offer services that compared to material goods
(Zeithaml et al, 1985, citied by Sargeant, 1999) differ per their: Intangibility; Inseparability;
Heterogeneity; and Perishability..
Moreover, attracting, managing and motivating volunteers, who are cause-related advocates
like sales agents for business sector, is a great challenge because these people commit their
valuable time and knowledge free of charge.
Other challenges facing nonprofits are: the uncertainty what their future upholds for them due
to unpredictable changes in the environment; facing the strict control (scrutiny) from public;
pressure between accomplishing mission, what donors are interested and customer
satisfaction, while sometimes customer satisfaction (short-term goals) is sacrificed for the
benefit of society (long –term goals) (Sargeant, 1999); not having duly resources (financial
and marketing experts) to perform marketing.
Nonprofits also face the challenge of changing peoples’ attitudes, convincing beneficiaries
about an issue and then convincing them to do something about it (Brennan and Brady, 1999)
i.e. through non –smoking campaigns, indicate the consequences from smoking then ask
smokers not to smoke or also advocate for laws against smoking.
On the other hand they risk ‘losing their soul’ (Hollander, quote) and reputation when
advocating to government and working with business community. This is the case with some
NGOs in Kosovo.

3.3.4 Why marketing is relevant for nonprofit sector?

Although nonprofits perceive marketing as not necessary, distrustive (invading privacy),
immoral (misusing marketing tools), and as something that stifles innovation (Sargeant,
1999). Nevertheless, marketing is becoming very important for nonprofit sector, due to
globalization, deregulation, boosting of information technology and increased competition as
a result of large number of registered NGOs, while affecting the sustainability of the NGOs. .
In view of the above circumstances NGOs more and more are employing marketing
instruments thus becoming more like private firms (Clarke and Mount, 2000).
The advantages of employing marketing are: improved level of customer satisfaction;
assistance in resource attraction and allocation; identifying organization’s competitive
advantage; defining the framework in order to minimize the marketing resources (Sargeant
1999; Kotler and Murray, 1975).

25
3.4 The Marketing management for non-profit sector
There is no doubt to the point, if, nonprofit organizations should market their
products/services or not, but the issue is how to effectively manage marketing. Marketing at
nonprofits is not always the same as at for-profits. Rothschild (1979) argued that marketing
mix elements such as product and price are not applied with same efficiency as in for-profit
sector, due to the fact that NGOs should retain the core message of the product in order not to
loose their integrity (Brennan and Brady, 1999) while the price is subject to donor approval
due to subsidized resources. Thus, the only element which could be modified in order to best
communicate to customer is Promotion.
For the sake of simplicity the report will elaborate some of the main tools and techniques of
the marketing management process, serving as basis for analyzing the collected data,
although I understand that the process itself involves many other techniques.

3.4.1 Marketing orientation

Different authors (Doyle, 1987; Go and Pine, 1995; Palmer, 1994; cited in Sargeant 1999)
depict marketing orientation as “organization’s focus on its customers”. Being market
oriented implies understanding the needs/requirements of the people who decide to purchase
the product/service and permeating the same approach in all departments (Shapiro,1988).
According to Kohli and Jaworski (1990, cited in Sargeant, 1999) marketing orientation is:
‘the generation of appropriate market intelligence pertaining to current and
future customers’ needs and the relative abilities of competitive entities to
satisfy these needs; the integration and dissemination of such intelligence
across departments; the coordinated design and execution of the
organization’s strategic response to market opportunities”.

The definition was deciphered by Nartel and Slater (1990, cited in Sargeant, 1999) as
working with three levels of orientations: Customer orientation; Competition orientation and
inter-functional co-ordination. Modified by Kotler and Keller (2006, p40) as holistic
marketing orientation showing the interaction between customers, companies and
collaborators in one side and value exploration, value creation and delivery in the other side.
According to Sargeant (1999) Customer orientation, involves understanding the needs of the
target market while through customer services and product quality, create, communicate and
deliver customer value. Customers in nonprofit sector are those who supply funding (donors)
and time (volunteers and employees) and those who demand it (recipients). Ensuring
customer satisfaction means keeping the promise for delivering qualitative services as per
customer’s expectations.

26
Competition orientation refers to the organizations’ capabilities to analyze and understand
strengths/weaknesses of the current and potential competitors; create competitive advantage
to overcome the competition; and optimize resource utilization to the benefit of the society.
(Sargeant, 1999)
Inter-functional orientation refers to market information sharing and market functions
becoming an integral part of all departments.
In existing literature (Kotler and Keller, 2006, Dolincar and Randle, 2007, and Sargeant,
1999) employees and volunteers are considered as internal market, hence marketing tools
and techniques should be used with volunteers and employees to have successful inter-
functional orientation (Sargeant, 1999).
In the Fig 3 below Deng and Dart (1994, by Sargeant 1999), emphasized the importance of
interaction between three components for an effective marketing orientation. As described in
the figure, to be customer oriented an organization should offer products and services to
match customer expectations; market orientation also involves analyzing competitions to
build competitive advantage could be achieved only if there is interdepartmental approach.

Customer Services
Product Quality Customer Orientation
Customer Value

Analyzing competition
Competitor Orientation Market Orientation
Building competitive
advantage

Market info. Sharing

Inter-functional orientation
Interdepartmental integration

Figure 3 Marketing Orientation (adopted from Deng and Dart, 1994, by Sargeant)

3.4.2 Market segmentation

Once market orientation is attained, the next step of the process is to determine targeted
marketing segment. It is impossible to satisfy the needs of the general public, thus the
standardized approach becomes obsolete because it presents high risk of failure. Hence,

27
NGOs are embracing the concept of market segment – which consists of a group of
customers who share a similar set of needs and wants (Kotler and Keller, 2006, p240).
NGOs face the challenge of having diverse customers with diverse needs and wants, making
it difficult to maximize the benefits for mass markets. In this regard it is important to
determine if there exists a distinct pattern of customer needs (identifying segments), then
tailor unique marketing mix for each segment (Sargeant, 1999).
While some authors argue that dealing with specific segments requires additional time, raises
cost for service delivery, others argue that segmentation minimizes wastage, reduces
advertising cost in mass media and creates a pool of loyal customers, not price sensitive.
Green (1977) noted that researchers employ two approaches to segmentation that is:
A priori segmentation is when the cluster is chosen in advance based on projected custom
pattern then further examined for other mutual characteristics (demographics, or product
benefits) to identify the attractiveness of each segment.
Post hoc segmentation involves the initial research on the benefits sought, problems faced
with product, attributes of the product then defining the clusters. Subsequent to this each
cluster will be analyzed based on other characteristics which are not used in the original
profile. During this process the number clusters is not known. This method is useful when the
organization plans to offer the present service to new markets (market development) or offers
new products in new market segment (diversification).

3.4.2.1 Criteria for market segmentation

The basic segmentation criteria utilized by marketers are categorized by: Geographic,
Demographic, Psychographic and Behavioral factors (Sargeant, 1999; Kotler and Keller
2006)
Geographic segmentation – refers to dividing the market based on geographical units such as
neighborhoods, cities, regions, countries, states, and nations.
Demographic segmentation – segmenting the market based on age group, gender, family
size, life cycle, income, occupation, education, religion, race, generation, nationality, and
social class.
Psychographic segmentation – segmenting the market based on psychology and
demographic variables. SRI consulting Business Intelligences introduced VALS (Value and
Lifestyle Segmentation) attempting to measure and segment customers based on their
motivations, goals and values (Sargeant, 1999; Kotler and Keller 2006)

28
Behavioral segmentation – divides markets based on their knowledge, attitude and response
towards the product. In this regard behavioral variables are employed: occasions (how often
the customer buys the product); benefits (what customers seek); user-status and usage rate
(how frequently the product is used); loyalty status (how loyal customers are); buyer-
readiness stage (awareness of customers about the product), and attitude (how customers feel
for the product) (Kotler and Keller, 2006, p247-257). Some of the variables cannot be applied
in nonprofit sector (Sargeant, 1999). Hence, the A priori segmentation is more appropriate for
NGOs since clusters are defined in advance (Beneficiaries, Volunteers and Donors) further
examined other mutual variables (demographic, geographic, behavioral, and psychographic).
When identifying market segment, it is necessary to evaluate each segment if it is worth
pursuing, by using 7 criteria such as: Measurable – the information about the market segment
should be easily obtainable and cost effective; Accessible – it should be possible to design a
specific marketing mix to target the segment effectively; Substantial – the segment should be
large enough in terms of service provisioning (or sales volume), because the segment should
justify the expenses occurred during product/service development; Stable – segment is a
precondition to ensure future developments of a marketing mix or planning process;
Appropriate – the segment should fit to the organization’s mission and objectives; Unique
(Differentiable) – the segment should distinguish from other segments in terms of response
and to increase donors’ interest; Sustainable – segment refers to the extent that customer’s
categories can be sustained by the organization (Sargeant, 1999; Kotler and Keller,
2006,p262).

3.4.3 Marketing planning process

Marketing plan is an important part of strategic plan to identify marketing opportunities,
setting up marketing objectives and suggesting strategies to achieve them. Therefore, it
should be incorporated into the organizations’ overall planning and budgeting process.
Marketing plan is a central instrument that indicates methods for resource optimization
(financial and human) to achieve the organizational goal (Westewood, 1997, p.5; Kotler and
Keller, 2006,p27).
Once market orientation is determined, market segment is identified and a feasibility study is
made, the organization is then ready to start with the process of marketing planning.
As indicated by Sargeant marketing plan addresses three main questions:
- Where we are now?
- Where we want to be?

29
 - How we are going to get there?
There are many schemes that indicate steps for marketing planning process but the one
adopted by Sargeant with some modification taken from Westwood, can be easily adopted by
the NGO sector. This scheme in Fig 4 provides useful (visual) information on the steps to be
carried out by NGO executives in order to develop a marketing plan, but should not be
considered as the only model for developing a marketing plan.

30
 Mission Statement

Organization
Overall Objectives

The Marketing Audit

PEEST Market Competitor Analysis NGO

Analysis Analysis Analysis of Public Analysis

SWOT Analysis
(Make assumptions)

Set Marketing Objectives

Generating Marketing strategies

Defining programs
Tactical Marketing Mix

Product Promotion
P
E
O Process
Price P
L
E Physical
Place
Evidence

Budgeting

Scheduling

Monitoring and Control

Review and Update

Figure 4 The marketing planning process (adopted by Sargeant, 1999, Fig.4.1 and Westwood, 1997, Fig1.1)

3.4.3.1 Mission Statement

Indicating mission statement at the beginning of the marketing plan keeps the organization
focused and outlines aspects of organizations’ roles which demand further exploration in the

31
detailed marketing audit (Sargeant, 1999). Mission statement emphasizes the major policies
and values of the organization, it provides: “shared purpose” – where middle managers and
employees feel as important part of the organization; “directions” – assisting middle
managers in developing their operative plans to direct employees. Kotler&Keller (2006, p44);
“opportunities” - to customers, employees and managers.
Developing a mission statement requires answers to these questions: Why does the
organization exist? Who are groups of customers that will be served? What needs should be
met? What strategies (technologies) will be employed in order to satisfy those needs? and
What does the organization aim to achieve in 5 years? (Abell 1980, cited in Sargeant, 1999).
Based on answers to these questions, one has to keep in mind three major characteristics: to
focus in limited number of goals; to stress the organizations policies and values; to define
competitive advantage which makes the organization unique.

3.4.3.2 The Marketing Audit

Marketing audit provides detailed review of any factors (internal and external) which could
threaten/support the organization’s wellbeing. Marketing audit examines the organization’s
customers and competitors in the PEEST context, and its reputation to the general public.
(Westwood, 1997, p11).

3.4.3.2.1 Political Economical Environmental Social Technological Analysis

Organizations cannot perform in isolation but they operate in continuous interaction with
external environment, customers and competition. The word ‘external’ itself indicates that
factors influencing the organization are uncontrollable but can have a critical impact on its
wellbeing (Sargeant, 1999). Therefore, environmental scanning is crucial to identify potential
threats or opportunities that can be avoided or used to reduce or increase their impact on the
organization (Bischoff, 2004).
PEEST (external environment) refers to: Political, Economic, Environmental, Socio-Cultural,
and Technological factors:
Political Factors – comprise from attitudes of the government towards nonprofit (i.e. in
Kosovo NGOs are seen as competition); legal and fiscal framework could either hinder or
burst the progress of NGO community; governmental contracts the same could enforce
quality in services provided from NGOs and Activities of Pressure Groups
Economic Factors – Kotler and Keller (2006, p.85) indicated that in the commercial sector
the “purchasing” power and people are the main components, but in the nonprofit sector
economy is emphasized in a different context i.e. ‘lack of the purchasing power’ as a result of
unemployment, GNP trends, Interest rates, Inflation and business cycles (Sargeant, 1999).

32
Environmental Factors – Kotler and Keller, referred to it as ‘natural environment’, as a
major global concern. The environmental factors in the NGO context differ from for-profit
sector. While for-profit sector faces shortage of raw material and increased energy cost,
nonprofit sector sees it as a high level of environmental deterioration as a result of major
polluters (commercial companies).
Social – Cultural Factors – involves attitudes to recycling; awareness about environment;
decay; customer lifestyles; demographic patterns; content of school education; major
influences on consumers; behaviors and patterns of consumption (Sargeant, 1999).
Technological Factors – are having a large impact in shaping peoples’ lives (Kotler and
Keller, 2006, p92), in this regards impacted the way how NGOs approach their beneficiaries,
volunteers and donors.

3.4.3.2.2 Market Analysis

Market analysis means conducting a thorough research on target markets and how the
organization is perceived by customers (Sargeant, 1999). At this stage the organization
analyzes the primary and secondary data of its markets. Taking into consideration that NGOs
have three types of markets (customer/beneficiaries, internal and influential), it is slightly
complicated to monitor changes of each market; to pursue with decision on actions to be
taken and evaluate results (Westwood, 1997, p11).
Table 1. indicates general categories of data which are useful at this stage for every NGO
when examining the markets (Sargeant,1999). However market analysis varies as nature of
the organization varies.
Resource Allocation Resource Attraction
(Beneficiaries) (Donors/Influencial and Volunteers/internal)
Identify market size, growth and trends (by Identify market size, growth and trends (by
value and volume) value and volume)
Principle needs to be met Needs and interests of potential supporters
Patterns of needs Patterns of giving /Donor behavior
Geographic concentration of need Ability to segment donor market
Physical resources available in market to Current and future fundraising practices
meet the need
Relevant collaborators – Associations Main channel of communication
volunteers, private firms,
Behaviors of other bodies/institutions
Ability to contribute to general public
Common methods of distribution
Main methods of communication
Table 1 Market Analysis in NGO (Sargeant, 1999, Fig4.3)

33
3.4.3.2.3 Competition Analysis
By Sargeant, competitors at nonprofit sector were categorized in three groups based on their
approach towards resources. At this stage it is important for nonprofits to investigate:
Competitors for resource attraction – meaning those NGOs that do fundraising from the
same sources; Competitors for resource allocation – meaning those NGOs that provide same
services and decide to compete for government service contracts; Competitors with
competing missions – all organizations whose missions are opposite to NGOs mission when it
comes to issues such as smoking or adopt new forms of smoking.
To be able to compete in the market, there is a need for detailed analysis to find out the
competitor’s future strategies, strengths and weaknesses. Table 2. presents a checklist useful
for analyzing competition in nonprofit sector (Sargeant, 1999)

Competition Analysis Checked

Checklist for each competitor group
Collect contact details for each competitor
Identify the size and geographical location where each
competitor operates?
What is their financial performance?
What are their resource capabilities?
What were their past strategies?
Which tactical marketing mix was employed by them?
Did they form any alliances? With whom?
What are their strengths and weaknesses?
Table 2 Competitor Analysis in NGO (adopted from Sargeant, 1999)

3.4.3.2.4 Analysis of Public

The term ‘public’ is broader than just a customer term, since it includes all groups of people
and organizations including donor organization, governmental institutions, general public,
media, beneficiaries, volunteers, local communities etc (Sargeant, 1999).
Thus, marketing nonprofits takes a lot more effort than marketing commercial organization.
Table 3. presents a checklist very practical when the NGO is analyzing public needs.

34
 Analysis of the public Checked
Checklist
Identify each group of public important to your organization?
What are the requirements/needs/interests of each group?
What are their giving habits or their approach when requesting
services?
What are their attitudes?
How often is your organization exposed to media?
How is your organization perceived by each group?
Table 3Analysis of the public for NGO (adopted from Sargeant, 1999)

3.4.3.2.5 Organizational Analysis

After conducting a thorough analysis of the external organizational environment, it is always
important to conduct an internal analysis regarding the organization’s capabilities. Table 4.
provides a check list of the relevant information to taken into considered while conducting
internal analysis.
Resource Attraction Resource Allocation
Activities Activities
Divide the fundraising income as per source How do you manage your service
(individual, corporate and trust donors) provisioning (divide them by location,
segment and service category)?
Divide the fundraising income as per Conduct market share analysis. What is
employed methods for fundraising (through your market share compared to your
direct mail, direct contact, telemarketing, competition?
campaigns, fundraising events etc)
Income from governmental contract Cost effectiveness of services being
provided
Income from service provisioning (sales) What are your marketing procedures?
divided by regional offices channels
How attractive are your services to the What is your marketing intelligence
potential donor? system? (How does your organization
What were your marketing procedures? maintain data from its constituency/market
and shared among all interested customers?)
What is your marketing intelligence system? Was the applied marketing mix successful?
(How does your organization maintain data What was its drawback? Should it be
from its constituency/market and shared changed?
among all interested customers?)
Was the applied marketing mix successful?
What was its drawback? Should it be
changed?
Table 4 Internal marketing analysis of the organization (adopted from Sargeant, 1999)

To follow up the trends in service demand and donors interest, market audit should be carried
out systematically, not on ad-hoc basis because this information will be lost.
35
3.4.4 SWOT Analysis
Strengths Weaknesses Opportunities Threats analysis identifies and monitors internal and
external factors that impact the strategic planning & management of the organization (Yüksel
and Dağdeviren, 2007)
Hence the purpose of SWOT is to identify internal strengths, explore internal and external
opportunities, avoid external threats and improve weaknesses in order for organizations to
establish their competitive advantage. (Sargeant, 1999; Panagiotou, 2003).
Subsequently, SWOT analysis selects and categorizes key information retrieved from
marketing audit in its four categories (S W O T). Thus SWOT analysis enables the
organization “to find a fit between its internal capabilities, and opportunities and threats
presented by the external environment”, develop necessary strategies and marketing
objectives to maximize its impact and role in the community (Sargeant, 1999).
SWOT analysis also provides basis for developing appropriate marketing objective to achieve
the overarching objectives.

3.4.5 Developing marketing objectives

Drucker (1990, cited by Sargeant, 1999) noted that if commercial sector fails to meet set
objectives they waist their own money, but, if, nonprofits fail to do so they will waist donors
money. Hence, marketing objective serve as benchmark for monitoring, evaluating and
measuring the results of the organization. Objectives keep managers focused and provide the
route towards success without wasting valuable resources (Sargeant, 1999).
In the case of setting up the objectives for nonprofits two issues should be addressed:
specifying services that will be provided and to whom; the level of resources intended to
attract to offer the service.
While developing objectives, be it organizational and/or marketing objectives, one should
consider the SMART technique. The objectives should be Specific, related with a particular
aspect of marketing activity (Sargeant, 1999); Measurable, to be able to quantify or measure
results (Sargeant, 1999); Achievable, ambitious but attainable, otherwise it could have contra-
effect by de-motivating managers, employees, volunteers and donors.
Realistic and Relevant-to keep the organization focused and lead it towards desired direction.
Moreover, objectives should be relevant to donors and community in general as founders that
give spirit to the objectives by financing the activities.
Timely based –donors are interested to see the results of their contribution. Hence, every
objective should have assigned it’s time-frame when is expected to be accomplished.

36
3.4.6 Key marketing strategies
Once setting up the objectives, the next step is to identify key strategies for accomplishing
them. For profit sector employs more than ten marketing strategies, however Sargeant (1999)
pointed out that nonprofit organizations can use three categories of marketing strategies:
Overall Direction, Segmentation Strategy, and Positioning Strategy.

3.4.6.1 Overall marketing direction

Ansoff’s Matrix known as planning for growth8 is usually used by marketers who have
growing objectives (Sargeant, 1999; Kotler and Keller, 2006). Depending from product and
targeted markets, the matrix indicates four basic strategies that provide direction for the
organization.
Market Penetration strategy considers the possibility of enlarging its market share at the
existing markets with existing products, by price reduction, intensified marketing activities,
and improved distribution channels8.
Product/Service Development strategy considers the possibility of enlarging market share by
offering new service to the existing markets and conducting intensive promotion campaigns.
This strategy involves high risk (Westwood, 1997, p29), since R&D and promotion expenses
occurred whilst new service face uncertainty of being accepted by existing markets.
Market Development strategy looks for possibilities to expand its market share by offering
the existing services to new markets (customers). This strategy involves high risk because it
requires intensive promotion activities and establishing new distribution channels.
Diversification strategy is employed when the organization anticipates saturation of current
markets with existing product. This strategy considers the possibility of developing new
service for new market, hence represents high risk. The degree of risk depends to the
diversification relatedness. The related diversification is when the organization offers new
services to new markets but in same sector where the organization has experience. Unrelated
diversification involves expansion of service provisioning beyond organizations experience
to new target markets.

3.4.6.2 Segmentation Strategy

If the organization decides to apply market development or diversification strategy then it is
necessary to employ also segmentation strategy by determining the targeted market segments,
as elaborated in the market segmentation paragraph.

8
Marketing Teacher, 2000, http://www.marketingteacher.com/Lessonstore.htm#marketing_strategy

37
 3.4.6.3 Positioning Strategy
Subsequently to marketing strategies, the positioning strategy aims to build and/or improve
organization’s image in minds of its target customers. Positioning is defined as “the act of
designing the company’s offering and image to occupy a distinctive place in the mind of the
target market” Kotler and Keller (2006, p310). Positioning is about ‘perception’8 . Same
services are perceived differently from one person to another therefore marketers have
developed ‘positioning map’ which ‘allows them to be compared and contrasted in relation to
each other’8. The positioning map identifies two variables that organization considers
important for its positioning (reputation), then compares its position with other suppliers. The
positioning map is presented below.

High (Variable A)

SERVICE A
•

Low (Variable B) High (Variable B)

Low (Variable A)

Figure 5.Positioning Map (taken from www. MarketingTeacher.com

3.4.7 Defining Programs – Tactical marketing mix

Marketing tactics involve converting strategies into marketing mix or 7 Ps of service

provisioning (Product, Place, Price, Promotion, People, Processes and Physical goods).

3.4.7.1 Product/Service
Service components - The organization has to acknowledge the fact that customers see the
product/service ‘as complex bundle of benefits that satisfy their needs’, thus when developing
a product/service, first should be ‘identified the core needs that the product/service will
satisfy, then design the actual product and finally create the bundle of benefits that will best
satisfy the customers’ (Kotler et al, 1999).
Although, services per se are intangible George and Berry (1981) indicated that there are
tangibles associated with service provisioning (i.e. the environment where services are

38
performed). Hence, advertising services by using tangibles can reduce perceived customers’
risk, enhance customer’s satisfaction and loyalty towards organization i.e. health services
could be advertised by showing clean and warm facilities, real life examples how employees
treat patients and personalizing the information by including patients statements.
Service life cycle – Sargeant pointed out that understanding 4 stages (Introduction, Growth,
Maturity and Declining) is relevant for creating appropriate tactics for a successful marketing
management. Also, Wilson et al (1994, cited in Sargeant) indicated that services have finite
life cycle and pass through each stage (as product) while at the same time present a challenge
for service provider since each stage requires different marketing tactics and different
management styles.

3.4.7.2 Price
In a nonprofit sector when price is indicated it means service charges, contributions,
registration and tuition fee etc. When the service is offered to beneficiaries (people in need) it
usually is offered at minimum price or free of charge since expenses for service provisioning
are subsidized by donors. As indicated by Sargeant, there are 4 ways to set up the price per
service: Cost plus – where the price includes cost plus profit margin; What they can afford –
setting up the price as per beneficiaries expectations; Matching competitors’ price –
investigating what is competitor’s price per similar services then set up the price; At the
nonprofit sector, same as in business sector the organization chooses to offer different prices
depending on: market segment, place, time, service category, but in many times price is
subject to donor approval due to subsidized resources.

3.4.7.3 Place
The place identifies the channels through which services will be offered and are accessible to
different market segments. Sargeant 1999 pointed out that nonprofits have to indicate the
location appropriately for the sake of resource providers and resource consumers.
The appropriate location is important when the organization relies on volunteers (i.e. being
near to volunteer’s means no additional cost for them to travel); when the organization wants
to attract individual and corporate donors of specific geographical area, it should make
available collection boxes in all possible locations (in retail stores, sport halls, department
stores etc) (Sargeant, 1999).Considering technological developments, organizations should
make use of virtual locations. Nowadays many organizations utilize internet services (How to
Donate? - location), through which they attract broad range of individual donors.

39
The appropriate location is also important when the organization wants to make services
available to a wide range of beneficiaries (i.e. the organization should open offices nearer to
their neighborhoods).

3.4.7.4 Promotion
The purpose of promotion is namely: to inform and persuade current and potential customers
regarding benefits from the existing or new services; to inform customers about the service
uniqueness or to differentiate its services from other organizations (Sargeant, 1999).
Promotion involves all instruments employed to convey the right message, to the right group
of constituency, at the right time.
Many factors (noise, inappropriate media or person, vague message etc) can distort the
message (Sargearn, 1999), thus before developing and conveying the message these factors
should be taken into consideration because poorly conveyed message is coubter-effective.
Hence, communicating clarity and consistently to have maximum impact (Kotler and Keller,
2006) a promotion mix is used which is known as integrated marketing communication
“(Kotler,1999, p766). Promotion mix involves:
Advertising which is ‘any paid form of non-personal presentation and promotion of ideas,
goods or services by an identified sponsor’ (Kotler, 1999, p766);
Sales/Benefit Promotion known as ‘short-term incentives to encourage purchase (Kotler,
1999, p766; Sargeant, 1999) or in the context of nonprofits changes in the attitudes. This
could be achieved through gifts, discounts, premiums, contests, leaflets or product
demonstration, that give immediate results in terms of fundraising and service provisioning
Sargeant (1999);
The public relation is defined as relation building activity ‘with various stakeholders by
obtaining favorable publicity …’ Kotler (1999, p766), through press releases, publicity, NGO
bulletins, provisioning of expert speakers, lobbying and counseling tools (Sargeant, 1999);
Direct Marketing is customized message prepared quickly to appeal to the individual
customer; moreover the message can be changed as per received response (Kotler and Keller,
2006, p 556); it is conducted through direct mail and e-mail (during holiday seasons or when
organizing any events) tele-marketing (providing toll-free number for donors and clients to
contact the organization), door-to-door and personal selling.

40
 3.4.7.5 People
People are the core element of the marketing mix at the nonprofit sector, because they are in
direct contact with customers and donors. People are the face of the organization. To indicate
its importance, Sasser and Arbeit (cited in George and Berry, 1981) noted that ‘the company
first has to sell a job to employees before it can sell its service to customers’.
It is important to remember that ‘People buy from people that they like’8 thus organizations
have to recruit, train, motivate and stimulate individuals (either paid employees or
volunteers) that are friendly to customers and have pleasant nature, who reflect good image
for organization itself and for its services.

3.4.7.6 Processes
Processes are perceived as means to achieving the outcome, but in the context ‘marketing
mix processes is an element of services that sees the customer experiencing an organization’s
offering’8. Processes comprise from every little step of the customer interaction with
organization.

3.4.7.7 Physical evidence

As a final element of the marketing mix ‘is the material part of service8. As indicated
previously service is intangible with no physical attributes. Thus, marketers in their effort to
make services more attractive to customers are using different physical evidence to convey
the message about service quality, promptness and benefits i.e. the environment where
services are performed, create a good impression about the organization, brochures, uniforms,
business cards, paperwork, packaging, WebPages, etc.

3.4.8 Budget
Having a detailed plan about marketing objectives, marketing strategies and tactics, marketer
in cooperation with other department can easily calculate the marketing budget, as per extant
literature is referred to as ‘task method’ which rarely applies, due to financial constraints that
nonprofits face. The usual methods for setting marketing budget are: percentage of last’s year
donations/sales; percentage of projected budget from donations/sales; matching with
competitors budget; and what the organization can afford (Sargeant,1999).

41
3.4.9 Action Plans
After determining marketing tactics, the yearly activities can be specified in Gantt charts. All
marketing activities such as fundraising, attracting volunteers and training employees;
organizing promotion events etc have to be indicated in the chart (Sargeant, 1999).

3.4.10 Monitoring and Controlling

Monitoring and controlling should follow up after every marketing activity and process.
Managers should set up controlling mechanisms, to evaluate if marketing and organizational
objectives are achieved. If, monitoring and controlling is done correctly/properly it will
optimize the utilization of valuable resources, and will hence organizations’ reputation.

3.5 Fundraising
The importance of having the marketing plan as a tool for communicating the right message
to three market levels including supply market (donors) was emphasized throughout. The
aim of marketing is to gain new donors while retaining old donors. Thus, the expenditures for
recruiting new donors should be considered a long term investment of the organization
(Sargeant, 1999).
Michael Hohner, fundraising consultant and president of Hohner &Company (cited in Peri,
2007, p114) said that ‘fundraising is never easy, since thousands of NGOs pursue the same
donors’. Nevertheless, the right contacts in the community, effective networking and
marketing (Peri, 2007, p113), induced the fundraising cause (Sargeant,1999) and increased
chances for a successful fundraising.
Williams (1999) in the course of her research with 30 charities came to the conclusion that
‘fundraising has its life cycle that not necessarily runs in the steps of developments of
charity’. She identified five stages of fundraising which have ‘to do with sources of funding,
the status of the fundraisers and percentage of voluntarily income in total income’ and whilst
the transition from one stage to another is done by decision from board of directors.
Five stages of fundraising identified by Williams (1999) are spread within three phases.
Phase I -The Appeal includes: stage one (the passionate appeal); stage two (we need more
money);
Phase II – The Fundraising includes: stages three (we need more help) and four (leave it to
us). Both stages mark the transition from passionate fundraising (relying in volunteers) into
professional fundraising (establishment of fundraising department). Although at stage four

42
was established fundraising department, the organization not yet has the holistic marketing
orientation to fundraising.
Phase III- The Marketing includes stage five (lets all work on this together) indicates that
organizations ‘have learnt to harness the tools and techniques of marketing to the benefit of
fundraising, but also incorporated the ethos of marketing for the benefits of the organization
as a whole’ (Williams, 1999).
At this stage marketing becomes integral part of the organization where all departments work
together to achieve the final organizational goal. Moreover, the fifth stage ‘lifts an
organization onto a new level of effectiveness’ (Williams, 1999)
The quest to recruiting donors (fundraising) requires different approaches for different types
of donors (individual, corporate, governmental donors and volunteers). Recruiting donors is
an investment and they should be viewed as partners to achieving the mission (Sargeant et al,
2007)
The organization can use the same marketing segmentation techniques on donor recruitment
process, that is;
A priori approach is applied in cases when the organization does not have already developed
donor network therefore determines the donor recruitment activities before hand. Sargeant
and Bater (1996, cited at Sargeant, 1999) during their research concluded that donor
segmentation on the basis of their lifestyle variable, and nature of the cause gives better
results in fundraising activity.
Post-hoc approach applied in cases when donor network is established therefore the
organization analyzes their profiles and selects the future prospects. Sargeant indicated
potential donors categories such as: donors connected to the cause; geographical location;
known donor to other organization; income; lifestyle; age; magazine readership; gender;
match to database profile etc (Sargeant,1999).
Moreover, there are other variables to categorize the existing donors those are: original
source of gift; the highest amount; most recent donation; date of most recent donation;
frequency of donation; preferred timing of donation; what kind of relationship is required to
with specific donor (i.e. direct mail, direct contact, events, etc) (Sargeant,1999). The
categorization is useful for the organization because it provides information how to treat
different individual donors depending from their sum of money donated per year.
Some of these criteria are useful to be applied by Kosovo NGOs when establishing databases
of potential and existing donors.

43
Once recruiting donors it is important that the organization maintains and develops the
relationship to the stage of loyalty. Sargeant (1999) pointed out another aspect of fundraising
such as donor recognition through organization’s newsletters, invitations to the events;
citation in organization literature; certificates of acknowledgments, personalized
communication.

3.5.1 Fundraising from individual donors

Until now donor segmentation approaches were indicated but it is worth mentioning briefly
the marketing techniques when dealing with individual, corporate donors, trusts and
foundations.
Halfpenny and Lowe’s research with UK charities (cited at Sargeant, 1999) indicated specific
modes of how individual donors donate. They also pointed out that revenues generated by
charity collection activities are low alike with its minimal cost since the collection is done by
volunteers -‘devise for fundraising’. The individual modes of giving are: Door-to-door
collection; street collection; sponsoring someone in an event; pub and shop collection;
subscription/ membership fees; collection at work; television, email and telephone appeal;
appeal letters and advertising. There are many other ‘giving modes’ indicated by Halfpenny
and Lowe, but I’ve referred to some of which are more important and applicable by nonprofit
sector in Kosovo .

3.5.2 Fundraising from corporate donors

The most applied methodologies of fundraising from corporate donors are: cash support;
sponsorship (through supporting different events); secondment (asking from their staff to
work as volunteers); training (paying for start-up cost and training staff); in-kind support
(donating equipment, or other things that help the cause); and joint promotions.
One reason for corporate donations are cause or issue related with corporate and with
community or called corporate social responsibility (i.e. the cooperation between Fujitsu
Siemens and Swedish Society for Nature and Conservation namely creating win/win
partnerships). Cause related marketing is defined as:
‘process of formulating and implementing marketing activities that are
characterized by an offer from the firm to contribute a specified amount to a
designated cause when customers engage in revenue providing exchanges
that satisfy organizational and individual objectives’ (Varadarajan and Menon,
1988, cited in Sargeant, 1999).

As suggested by Sargeant, the steps to be followed when raising funds from corporate donors
are:

44
 1) Defining what kind of support it need from a potential donor; be careful when creating
links with corporate since there could be win/loss situations for the organization, if
this partnership is not perceived well by other constituencies; the organization should
be cautious for not “loosing their soul/cause”;
2) Creating the list of potential corporate donors; understanding corporate criteria for
donations, some of which are mentioned by Sargeant and Stenphenson (1997): local
cause, relevant to employees, relevant to business (creates good reputation for
corporate), size of organization (because they like for their funds to have larger
outreach);
3) Categorizing the list of donors based on two variables (corporate interest potential and
corporate giving potential) categorized at three levels; high, medium and low (Kotler
and Andreasen, 1996, cited in Sargeant, 1999) (i.e. if possible corporate interest
potential is high and corporate giving potential is high then the corporate is identified
as potential supporter of organization’s cause);
4) Defining communication strategies or tactics for communicating with them;
5) Monitoring and evaluating the process if it is giving the expected results or if actions
are not appropriate then the process should be revised and addressed properly
(Sargeant, 1999);

3.5.3 Fundraising from Trust and Foundations

Sargeant defines Trusts as organizations established to manage funds donated from an
individual/organization for some groups of beneficiaries, usually are specified by donor.
There are seven stages to approach Trust/Foundation:
1) Reviewing potential projects – this stage involves drafting projects proposals for
targeted beneficiaries;
2) Searching the initial trust – once drafting the project, the next step is establishing the
listing and identifying potential trusts that are interested for this project and group of
beneficiaries;
3) Networking search – the organization has to search for informal or formal
connections/links with identified Trusts (i.e. this link could be members of board or
other donors who have very good experience with you service provisioning);
4) Prioritizing and matching the Trust limits- the organization has to keep in mind and
match the donor criteria for application and stick to deadlines;

45
 5) Selection of Contact strategy – networking and establishing personal contact with
trustee, since these approaches could be more fruitful and ‘can generate a response’;
6) The written application – should be drafted carefully, professionally, no language
mistakes, sticking to donor criteria and clearly indicating the expected results;
7) Following up – means monitoring all successes and failures to improve in the future.
Although some methods are very successful in the quest of fundraising, Nichols (2003) still
argues that these old methods can not function in a new century, because of the fundraising
paradigm shift in four areas:
From methodology driven to donor driven – before organization drafted the fundraising plan
and specified activities, nowadays donors are the initiator of the process.
From homogenous audience to niche audience – before the organization targeted
homogeneous groups of beneficiaries nowadays due to increased competition, NGOs find
their niche ‘market’ and offer specific services for a specific target segment (defined by
ethnic group, race, gender).
From pre-second World War donors, to post-second World War donors – the former group of
donor was keen to donating due to the spirit of solidarity after the war, whilst the latter does
not donate at the same extend because they have to thing for their livelihood (longevity).
From mass marketing to one-on-one marketing – as indicated above donors have their
communication preferences. In this regard they organization have to change their mass
communication to individual communication.
Information technology has a great impact in fundraising methodology. Sargeant et al (2007)
study indicated that although many charities in UK raised a significant income by using
e-marketing, others are in the phase of build donor relationships whilst experiencing
problems with cost from web-maintenance. Sargeant et al, came to the conclusion that e-
philanthropy in UK is in its first stage of development.
In Kosovo’s case e-philanthropy is applied and yet cannot be applied because
people/corporates in Kosovo mostly apply bank transfers, personal donations (physically),
partly because they still do not trust the system and partly because NGOs in Kosovo did not
reach that level of trust and sophistication.

46
4 EMPIRICAL FINDINGS
4.1 Introduction to the empirical findings
The first part of the empirical section presents the situation of local NGO’s in Kosovo, their
development and role in community development in post-war period. These data are
collected from secondary sources such as local and international donor’s surveys and reports,
and the main findings of this report are the primary data collected from the three months
research with 71 local NGOs in Kosovo. The research was based in previously developed
questionnaire comprising of 43 questions structured in 5 sections: general information about
the respondent and the organization; organizational structure; funding source and
beneficiaries; the planning process at the organization; the evaluation process for both
services and employees.
The questionnaire first was tested with a couple of NGOs then it was distributed to previously
determined sample frame. At first the aim was to conduct the research via-email but due to
low response rate, the rest of the research was carried out through telephone and face to face
interviews. Although Kosovo has only 10,887 sq km9, it comprised of 5 specific
administrative regions10 (Prishtina, Prizren, Peja, Gjilan and Mitrovica), thereupon the
research was conducted in 5 regions, in order to have more comprehensive data.

4.2 The situation of local NGOs in Kosovo

When Kosovo was a communist country it had the same faith as other communistic
countries: everything was regulated by state (one party – the Socialist League). Moreover,
from 1981 until 1999, the Kosovo society faced different forms of repression from Serbian
regime which directly affected the lives of every citizen in Kosovo. This period is also known
as the breakthrough period for civil society initiatives, whilst first initiatives were promoting
and advocating for basic human rights and helping people in need due to deterioration of the
economic and political situation. These were more community based organizations (not
registered – the Serbian regime labeled them as ‘illegal) operating under difficult
circumstances. Although there was no possibility to conduct marketing CBOs were well-
known among the community in general and diaspora11. USAID assessment on civil society
also indicates one important fact that the established CBOs focused in their agendas with no

9
See: http://www.fco.gov.uk/en/about-the-fco/country-profiles/europe/kosovo
10
See: http://www.geocities.com/eugjilani/Kosovo_Map1.jpg
11
Albanians’ who are living and working abroad

47
fundraising opportunities while after the war most of the NGOs were donor driven, and
justifying their missions based on donor agendas12.
For the sake of simplicity the report will elaborate the civil society development at the post-
war period, known as a period when civil society bloomed. From 1999 until 2008 there are
more than 4070 registered NGOs. Although the number of registered ones is so large, most of
NGOs are inactive, partly due to lack of funding as a result of donor withdrawl2 and partly
because NGOs still did not reach the fourth and fifth stage of fundraising.
The KCSF report2 indicates that approximately 600 (or 14 %) are active, while this
percentage is falling every year.
The registration of the NGOs is regulated with UNMIK regulation 1999/226, which is
implemented by NGO Registration Office under the auspices of the Ministry of Public
Affairs. The Regulation is evaluated as most ‘permissive’12 in the region offering an
opportunity to all people of good will to establish an NGO. The Regulation foresees the
establishment of only two structures: association (three founders to be established) and
foundation (one founder). The simple registration process and no monitoring and evaluation
from NGO Registration Office, and complicated closure procedures (requiring all reports and
at least 10 signatures from its members that the NGO will be closed) are additional reasons
for a huge number of registered NGOs and a large percentage of inactive ones.
Anyway, some donors evaluated, that the NGO community in Kosovo is community
organized compared to other regions, because strong networks and ad-hoc coalitions that
achieved to compel specific changes12 were established.
On the other hand, the KCSF report indicates that civil society organizations are “moribund
or dormant or lacking sufficient capacity to carry out meaningful activities’2, and the NGO
community is uncoordinated thus failing to attract the attention of the government and
UNMIK whilst losing the trust of the community.
The NGO community in Kosovo has a crucial role in promoting democracy and human
rights, holding accountable authorities; promoting civil participation in decision making
process and playing ‘watchdog’ of our fragile democracy.2

4.2.1 Activities of the NGOs

Most NGOs in Kosovo are not cause and/or mission oriented but donor driven. Therefore,
due to lack of funding many NGOs carry out activities that are not in line with their mission
nor with immediate community needs but with donor agendas. This is maybe due to high

12
USAID Kosovo, Civil Society Sector Assessment, May 2004

48
rates of unemployment, around 44% especially among youth (70% of whole population)13,
where are seen as job creation opportunity not to say that by community at large the NGOs
are considered like ‘profitable business’.
Moreover, there are NGOs who carry out quite a broad range of activities starting from
education, humanitarian work; community building; psychosocial; cultural; economic
development; youth and gender issues2, without having necessary human and financial
resources or without needs assessment. In fact there are rare cases when NGOs conduct a
research in order to assess the needs of the community and then develop a project fit to the
community needs. In most of the time is vice versa projects are developed and implemented
because there are money available (donor money).
Some NGOs have a clear mission statement but do not abide by it or there are even cases
when mission statements are changed as donor agendas change. Nichol’s (2003) indicated
shifts in paradigm ‘from methodology driven to donor driven’ not in the sense of changing
the organization’s mission to fit the donor’s agenda but in a sense donor–grantee relationship
building.
The NGO community in Kosovo is still fragile in a sense that it does not have strong
foundations upon which their capacities are developed and maintained. The majority of them
do not have a clear vision nor action plans on how to achieve their vision (if they have one).
The majority of NGOs in Kosovo are struggling for survival on daily basis but to my
surprise, most interviewed NGOs (not to say all) do not have clear plans to support their
fundraising efforts which directly could contribute to their sustainability and achieving their
final goal.
To my bigger surprise, donors are investing heavily in increasing capacities of local NGOs,
through trainings and workshops such as communication with media, public relations,
managing NGO, advocacy and lobbying, project proposal writing, fundrasing but never a
comprehensive training on NGO marketing. NGO sustainability is the most interested area,
attracting many donors but not much is done in this field.
There are many research papers on civil society’s role in community development, their role
with media, their role in advocating or lobbying for a cause but there was no research on how
marketing is employed by NGOs (if employed) as a platform for creating, communicating
and delivering value to its customers including beneficiaries, volunteers and donors.

13
UNDP Kosovo, Youth Human Development Report, 2006,
http://www.ks.undp.org/repository/docs/hdr_eng.pdf

49
During my 10 years of experience working for and with NGOs, I have been in a position to
practice both roles, from the civil society point of view (while leading an NGO) and from the
donor point of view while working for UNDP and USAID Kosovo Private Enterprise
Program. My observations during all these years are that some NGOs are in an unfavorable
situation because they want to stick to their mission but due to lack of financial resources
they sacrifice their long term goal for short term achievements and finances. This fact has an
impact in their effort to specialize (be profiled) in the specific field and become sustainable.
Moreover, NGOs doing project on behalf of another does not allow them prepare their
strategic or action plans and work towards their sustainability.
From my experience NGOs that were specialized were more successful and sustainable
because their activities are planed and marketed to individual, corporate donors and trusts.
That is why I saw it necessary to conduct the research in the field of marketing, and develop a
marketing plan guide for NGOs in order to increase chances for their sustainability.

4.3 Marketing application by local NGOs in Kosovo

The research was conducted with 71 local NGOs from 5 regions. The questionnaire had 5
sections: general information about the respondent and the organization; organizational
structure; sources of funds and beneficiaries; the planning process at the organization; the
evaluation process of service and staff that provides necessary information regarding how
much marketing is employed by local NGO’s in Kosovo. Collected data was processed with
SPSS and the results from the interviews will be presented from different angles starting from
organizational structure, utilization of volunteer services, do they conduct Marketing Audit,
SWOT, how employees are evaluated, do NGOs have marketing plan/strategic plan, do they
have planned budget for marketing, how promotion is conducted and other information
indicating their attitudes towards marketing.

4.3.1 Basic information about NGOs - type of NGOs interviewed

structures, frequencies by gender, age, position and years of
experience in civil society
This section presents basic respondents information broken down by type of NGOs, available
structures of the organization, age and years of experience with civil society, which to some
extent could be indicative variables in the context of planning and managing process. The
research was conducted with 71 NGOs from which 96% are Associations and only 4% are
Foundations. The percentage could not be compared with the total number of registered
associations and foundations as the main database of the NGO Registration Office - Ministry

50
of Public Affairs does not have data broken down based on their status. All registered entities
are recorded only as NGOs. Appendix 1, Table 1.1, indicates the percentages and number of
NGOs per their status.
According to UNMIK Regulation, the highest governing body of the Association is the
Member’s Assembly while the Board of Directors serves the Foundation. The results of the
survey indicate that from 68 Associations only 49 have Members’ Assemblies (28%) which
is a clear indicator that the associations are not correctly structured or that NGOs lack
awareness regarding the associations’ legal structure, although 70% of respondents had high
level positions (Executive Directors and Presidents of the Board) and have extensive
experience (7-9 years) working with the NGO community (80%). (Appendix 1, Table 1.2.
and Table 1.3.)
Maybe the reason for not well structured NGOs is the lack of a controlling mechanism from
the government, which could obligate NGOs to establish their structures.

4.3.2 Resource attraction and Resource allocation

On the question, which are your main funding sources (donors) the NGOs could choose three
key funding sources and also had an option to specify any other source of funding other than
those mentioned in the questionnaire.
This question provides information about who are the targeted donors for local NGOs.
The research indicates that 40.4% of NGOs target and use funds from international donors;
while 25% apply for funds to local donors (who manage international donor funds) (KCSF,
KFOS, FDI)14 , in general the percentage of utilization of international donor funds (directly
or indirectly) is more than 65% ; 16.7% of respondents have income from their services
which impacts their sustainable development; only 11.5% of NGOs utilize funds from
corporate donors. As specified by local NGOs, other funding sources are membership fee;
and local government. (Appendix 1, Table 1.5).
The NGOs were also asked to indicate the resource allocation, by specifying their primary
and secondary beneficiaries and any other targeted beneficiary (if not indicated in the
questionnaire). The results indicate that primary beneficiaries targeted by the NGOs, are
young people (56.3%), women (12.7 %) and community in general (16,9%).(Appendix 1,
Table 1.6).

14
Kosovo Foundation for Open Society (KFOS) ; FDI (Foundation for Democratic Institute)

51
On the other hand the results for secondary beneficiaries indicate that NGOs target the
general community (35.2%), while again youth makes the largest percent of secondary
beneficiaries with 14.1%. (Appendix 1, Table 1.7)
If results from both tables are collected, by far youth is the target group that more than 70%
of respondents are interested to work with and provide services for them. This is partly
because Kosovo has the youngest population in Europe where more then 50% of population
13
is aged between 15-24 (70% unemployed) and partly because donors interest is in youth
unemployment.
Whilst, only 10% of respondents specified other groups of secondary beneficiaries that are:
NGO community, agribusiness, business associations, students, local institution, refugees etc.

4.3.3 Research and planning process in the organization

This is the main section of the research because it provides data regarding how NGOs
conduct marketing audit and SWOT before their planning process. If NGOs have marketing
plans, what are their main tools for conducting promotion, do they have budget for
conducting marketing as compared to last year how the budget changed? In addition, the
results of the interview indicate, whether the marketing plan is perceived as an important tool
for fundraising by executives of the NGOs.

4.3.3.1 Marketing plan importance and bodies responsible for

drafting and implementing it
Table 5 indicates how many NGOs (broken-down by their legal status) have marketing plans.
As it is presented only 25% (17) organizations have marketing plans (not complete), while
out of three foundations interviewed, two of them have marketing plans.
Does your organization have
marketing plan?
No Yes Total
Type of Association 51 75.0% 17 25.0% 68 100.0%
NGO
Foundation 1 33.3% 2 66.7% 3 100.0%

Total 52 73.2% 19 26.8% 71 100.0%

Table 5 The application of the Marketing plan by Type of NGO

The results from Table 6 indicate that more than 73% of respondents do not have marketing
plans, while the majority 66.7% them find marketing plans as very important tools for
fundraising and 23.5% as important tools for fundraising. (see Table11.1)

52
 Marketing plan is:
Neither
Very important nor Somehow
important Important unimportant important Total
Does your organization No 66.7% 23.5% 7.8% 2.0% 100.0%
have marketing plan? Yes 73.7% 26.3% 100.0%
Total 68.6% 24.3% 5.7% 1.4% 100.0%
Table 6 Marketing plan possession vs Importance

It is very odd that the majority of respondents around 92.9% of total respondents find
marketing plans as a very important tool but only 26% of them have it.
With the purpose of finding whether NGOs perceive marketing as one person responsibility;
departmental process; or organizational goal, the NGOs were asked who is involved in the
planning process. The respondents were able to choose all structures involved in the planning
and implementation process of marketing. The results indicate that the Board of Directors
(68%) and Assembly members (42.1%) are the main bodies involved at marketing plan
preparation, but there is also involvement of other structures such as Executive Directors,
experts and employees. Regarding involvement at the implementation stage it was obvious
that the executive director is in charge (57.9%) in cooperation with employees (5.3%) with
directions of BoD (42.1%). (Appendix 1, Table 1.8 and Table 1.9).
While more than 72% of respondents indicated that the marketing plan or action plans are
updated in yearly basis, although the results should be taken with reservation (Appendix 1.
Table 1.10).

4.3.3.2 Marketing Audit

There are cases when NGOs do not have marketing plans but have conducted market
research to analyze competition and beneficiaries’ needs. The tables below indicate the
frequency of market analysis conducted by NGOs: 42.1 % of NGOs stated that they analyze
their competition every quarter while 50% of respondents analyze customer needs every
quarter.
In this regard it is worth mentioning that during telephone and face to face interviews there
was a need for explanation what is meant with competition because the immediate answer
was ‘they do not have competition’. These were some indicators that NGOs conduct informal
marketing research but they do not see it through.

53
 Table 7 How often NGO's analyze the competition
How often you analyze your competition?
Once per Once in
Once per six Once a two
quarter months year years Total
Did you conduct Yes
market research ? 42.1% 39.5% 15.8% 2.6% 100.0%
Total 42.1% 39.5% 15.8% 2.6% 100.0%

How often you survey changes in community

(beneficiaries) needs?
Once per Once in
Once per six Once a two
quarter months year years Total
Did you conduct Yes
market research ? 50.0% 34.2% 13.2% 2.6% 100.0%
Total 50.0% 34.2% 13.2% 2.6% 100.0%
Table 8 How often NGO's analyze customer's needs

Even though NGOs do not have marketing plan, in one way or another they carry out market
research and promotion. The results from the research indicate that NGOs employ different
tools to analyze customer need. The majority of the respondents indicated that the main tool
assessing the needs of their beneficiaries was through direct interviews (64.1%),
questionnaires (12.8%), while the other percentages do not pose any relevance.

No Direct Donor Unoffical Focus Telephone Questio Direct

answer interview reports convers groups convers nnaires e-mail Total
Primary tools 1 25 2 2 2 1 5 1 39
Total by
2.6% 64.1% 5.1% 5.1% 5.1% 2.6% 12.8% 2.6% 100.0
percentage (%)

Secondary tools 2 3 5 5 5 3 15 1 39
Total by
5.1% 7.7% 12.8% 12.8% 12.8% 7.7% 38.5% 2.6% 100.0
percentage (%)
Table 9 Primary and Secondary tools for analyzing customer needs

The research also indicates that to some extent NGOs perform environmental scanning, while
some factors weigh more and others less. The table below indicates the primary and
secondary factors determining organizational direction.

54
The results indicate that social (42%) and political factors (37.2%) are the primary factors
that impact organizational direction, while economic factors (20.9%) are weighed as
secondary factors leading the organization. (Appendix 1 Table 1.11)

4.3.3.3 SWOT Analysis

The respondents were also asked if they conduct SWOT analysis to identify organizational
strength, weaknesses, opportunities and threats. Respondents identified and weighted their
Strengths (main, medium and satisfactory); Weaknesses (serious, improvable, small-time);
Opportunities (attractive in near future; attractive and realistic; attractive hardly achievable);
and Threats (very serious, serious but avoidable; not so serious). The analysis includes results
of all respondents who stated that they performed SWOT analysis.
The most important strengths identified by NGOs are: professional management (52%);
organization’s experience (32.7%); and special expertise (31%). As their serious weaknesses
they listed: lack of regional offices (47.3%); and lack of expertise in the specific field. It is
worth mentioning that NGOs, when identifying their strengths/weaknesses, were very
subjective by overestimating their capacities and by failing to respond honestly when
identifying their weakness (in most of cases they did not provide answers).
However, the attractive and realistic opportunity that impacts the sustainability of the NGOs
are: approval of the Law on Sponsorship (23.6%) and Fundraising by using Marketing Plan
(23.6%). On the other hand threats that are risking the wellbeing of the NGOs (identified as
very serious/ avoidable threat) are: NGOs are being politicized (47.3%); lack of funds
(32.7%) and NGOs are perceived as opposition by government (14.5%). (Appendix1. Table
1.12; 1.13 ; 1.14; 1.15).

4.3.3.4 Promotion Mix

Although only 26.7% of NGOs had marketing plans, all of them employ mixed promotional
tools to achieve their project objectives. Based on the interviews, the NGOs do not promote
the organization as a whole but only projects that are in due course of implementation. That is
as a result of their limited (or no) budget for promoting the organization. The results of the
research indicated that most of NGOs do not have a separate budget line to conduct
marketing (see Table 11).
The results of the research indicate that most frequently used instruments of local NGOs are:
brochures (45.1%), direct contacts with donors (32.4%); website (15.5%); direct contacts
with beneficiaries (14.1%) and employees and volunteers (12.7% and 9.9%). (Appendix 1.
Table 1.16)
55
 4.3.3.5 Marketing budget
Around 26.7% of NGOs indicated the existence of the marketing plan or action plan, neither
of them had separate budget line (planned) for implementing the plan. Around 73% of the
respondents indicated that marketing (promotion) is conducted on project basis, while 11.7%
through direct contacts with donors and beneficiaries.

Marketing is conducted through

Direct contacts
Direct contacts Other
Projects with
with donors specify Total
beneficiaries
Does your organization No 73.3% 11.7% 11.7% 3.3% 100.0%
have a separate
budget for marketing? Yes 0.0% 0.0% 0.0% 0.0%
Total 73.3% 11.7% 11.7% 3.3% 100.0%
Table 10 Budget for conducting Marketing

4.3.3.6 Evaluation and monitoring

The last section of the questionnaire involved questions regarding monitoring and evaluation
process and tools used for evaluating their staff, services, and their level of satisfaction
regarding the organization’s achievements.
The results indicate that the quality of their services quality is evaluated by using direct
interviews with beneficiaries (39.4%); evaluation forms filled by customers (28.2%) and
conducting site visit to their beneficiaries (16.9 %) (Appendix 1 Table 1.17).
The respondents were also asked if staff performance is evaluated because the dissatisfaction
of the employees could directly impact customer/beneficiaries satisfaction, especially in
service provisioning organizations. The results indicate that staff is evaluated on monthly
basis (32 %) while monthly reports (25% ) are the tools used to evaluate the progress of their
staff. (Appendix 1 Table 1.18)
Although, it was apparent (during interviews) that NGOs are lacking financial and human
resources, and are facing constrains in the process of achieving organizational objectives,
more than 60% of the respondents were satisfied and around 24% were very satisfied with
the performance of the organization . This is another indicator that most of the respondents
were subjective when answering questions such their weaknesses and performance.
(Appendix 1 Table 1.19).

56
5 ANALYSIS and REFLECTION
5.1 Introduction to the analysis and reflection
The empirical findings of the local NGOs in Kosovo are analyzed based on theories and
concepts of the marketing management.
Initially, we discuss the role of local NGOs in Kosovo (ex-communist country) and how
communism affected the community perceptions about civil engagement and social trust.
That is followed by concepts and marketing management aspects which are correlated with
local NGOs in Kosovo. Moreover, this section will analyze NGO structures; perception of
NGOs about marketing; what marketing instruments are mostly used by NGOs and how
successfully implemented marketing plan correlates with fundraising.
In conclusion, this section emphasizes the importance of marketing for NGOs sustainability.

5.2 The role of NGO community and how they are perceived by the
community in Kosovo
No matter how developed a country is, no state can address all needs of the community. The
NGOs are established to fill in the gap ‘between structures that lock people out and strategies
that welcome people in’ (Fazlon, 2007). Although the NGOs fulfill their role in a good way
they still cannot and should not perform the task of a government (even in countries in
transition). But their role is crucial in consolidating democracies and economic development
by addressing the needs in health, economical and social sector and by mobilizing and
engaging civil society to pressure government for fast-acting and decision making for a
particular issue.
The best practice of civil engagement which demonstrates the importance of social networks
for job placement; and many other economic outcomes and performance of representatives of
government is United States (Putnam, 1995).
Putnams’ research with 35 countries indicated that the civil engagement and social trust as
aspects of social capital15, are strongly related. During last two decades, trends have indicated
that social capital is eroding even in countries known as ‘civil’ countries i.e. political
scandals of the 60’s decreased social trust of American people towards their government,
have resulted with lack of citizen’s participation in elections and social life (Putnam, 1995).
I must say that correlation between “civil engagement” and social trust at ex-communist
countries did not exist, because even if there was not social trust (taking the case of Kosovo

15
Social capital refers to networks, norms and social trust that facilitate the coordination and cooperation for the
mutual benefit (Putnam, 1995)

57
in ex-Yugoslavia), “civil engagement” was regulated by the state. The concept civil
engagement in communist countries was contradictory in terms because participation into
social activities was mandatory not from the free volition. Kosovo was one of the countries
that faced the same fate. “Volunteer” and “social” activities were regulated by YCP. In one
way or another people were forced to conduct “volunteer” work (see chapter Motivation and
Background).
In post communist countries including Kosovo, it is evident the absence of civil engagement
spirit, because for years every thing was regulated by state including “volunteer” work.
Therefore, even now the community passively relies on the state to regulate their lives. On
the other hand, government officials have a tendency (following the communist tradition) to
control everything including associations and/or ‘autonomous’ agencies, whilst the
community does not take any action.
Still after 10 years, local NGOs do not take their role very seriously, some of them are
politicized, some are biased, some change their mission very often (according to political
agendas or donor interest), and are not social oriented. NGOs also face the problem of
attracting volunteers. The problem persists partly because people are not willing to volunteer
due to their previous experience and partly because post war volunteers were ‘misused’ by
NGOs since there was no legal infrastructure, which regulated the volunteer work.
Besides, by general public NGOs are seen as a perfect way to attract donor funds (either
international donors or governmental money) or job creation structure, and are risking ‘to
lose their soul’ and community trust.

5.3 Marketing management and local NGOs in Kosovo

Local NGOs in Kosovo perceive marketing management as an activity that involves only for-
profit sector. The first remark by some NGOs was “we are nonprofit sector we do not
conduct marketing”, while some them identified marketing with promotion. Although in one
way or another NGOs were conducting marketing activities they still were not aware that
marketing has to do with identifying community (customer) needs; developing,
communicating and delivering services/products based on these needs.

5.3.1 Application of market orientation and market segmentation by

Local NGO
While international NGOs are embracing marketing strategies and market orientation in order
to create competitive advantage and serve best their customers. LNGOs in Kosovo still do not
consider marketing as important tool where they should invest human resources.

58
Although around 71% of local NGOs (LNGO) analyze their competition and 84% of them
analyzed customer needs on quarterly/ six month bases, only 26.8% of LNGOs have
marketing plans, and no organizational structures (human resources) to implement it.
From 19 NGOs who have marketing plans, only 21.1% have indicated that marketing
planning process is a joint effort which involved all structures, while 57% of them indicated
that marketing plan is implemented by the Executive Director and 47.4% indicated that the
marketing plan is implemented by employees. It could be concluded that approximately 42%
of 19 LNGOs involved all structures in market planning while the implementation is mostly
seen executive director’s and employee’s responsibility.
Market orientation works in three levels of orientation: customer, competition and inter-
functional orientation. The research indicates that LNGOs to some extend are working on
customers’ orientation since they are using different research methods and tools to identify
customer needs including beneficiaries, donors and volunteers. But there is no follow up to
the findings of the research with regards to creating, communicating and delivering customer
value.
Moreover, although 71% of the LNGOs indicated that they analyze strengths and weaknesses
of the competition, there is no competition orientation since the information is not used to
create competitive advantage to overcome competition, but just copying what competition is
doing. As a result of which many LNGOs are doing the same thing or are donor driven.
Inter-functional orientation which refers to market information sharing and integration of the
market functions into organizational structures its non existent at the LNGO structures.
Although, the research indicates that all 71 LNGO executive’s/manager’s carry out staff
performance evaluation, there is no motivation for successful employees/volunteers.
Employees/volunteers are not seen as internal customers’, besides when personally
interviewed employees/volunteers it was obvious their dissatisfaction. LNGO
executives/managers should be aware that unsatisfied employee is equal to unsatisfied
customers including beneficiary and client (donor), resulting with decreased chances.
In order to compete more effectively LNGOs have to embrace the concept of the market
segment by identifying the groups of customers who have similar sets of needs.
LNGOs in Kosovo defined their market segment by using A priori segmentation where
segments are identified in advance then examined for mutual characteristics. The research
shows that more than 90 % of LNGOs have youth as their primary/secondary beneficiaries;
16.7% have women as primary/secondary beneficiaries; while 16.9% have indicated that
community in general is their primary beneficiary (segment) and 35.2% indicated that

59
community in general is their secondary beneficiary. Only a small percentage of NGOs
(10%) have more specific target groups such as agribusiness, NGO community, wood
processing companies, local institutions etc.
As indicated above LNGOs used A priori segmentation but the exercise for examining the
mutual characteristics (demographic, behavioral and physiographic) are done in project bases
not as a general approach of the organization. This approach weakens LNGO position and
reputation because this makes them donor driven, and not sustainable. This also indicates that
NGO’s are established not because the need is there but because of donor funding.

5.3.2 Market planning process at LNGOs

Planning is an important tool for every process and organization. The same applies for
marketing. Marketing planning is very important because the organization identifies
objectives and target markets, designs marketing strategies, develops marketing programs
and assigns resources (human and financial) to achieve these objectives.
Although organizations do not have a written marketing plan around 90% of them view it as
an important tool for achieving their objectives. Nevertheless, organizations perform
marketing audit and analysis, SWOT Analysis, develop organizational objectives, but lack
defining their marketing strategies, defining marketing tactics although they use some
elements of marketing mix. Moreover, no LNGO had separate marketing budget, including
those who had written marketing plan, which oppugns the existence of the marketing plan
and implementation.

5.3.2.1 Environmental scanning at LNGO level

Environmental scanning is practiced by LNGOs in Kosovo. The research indicates that social
factors (76.8%) and political factors (53.5%) have greater impact in determining
organizational direction although Kosovo as declared its independence. One observation,
although Kosovo is facing high level of unemployment as a result of low level of economic
development, economic factors are less (34.9%) influential to the NGO’s direction.
As mentioned above LNGOs in Kosovo employ limited market analysis. Customer market is
analyzed but not in depth. NGOs have three different levels of customers (beneficiaries,
donors and volunteers) needs to identify, understand and create value as per their interest.
LNGOs in Kosovo are not aware of their competition. LNGOs do not understand that
nonprofit sector faces three levels of competition (competition for resource attraction,
resource allocation, and competing missions).

60
 5.3.2.2 SWOT analysis at LNGOs level
Nonprofit sector has to evaluate/analyze resource allocation and resource allocation activities
in order to identify in which sphere the organization should improve.
SWOT analysis – Identifying strengths and weakness, exploring opportunities and avoiding
threats requires all staff efforts. The research reveals that LNGOs in Kosovo performed
SWOT and identified their strengths (sometimes overestimating their capacities), weaknesses
(were not sincere); opportunities and threats.
An observation during the research, NGOs were reluctant to select their (three most serious)
weaknesses, which implies that LNGOs are not mature enough and do not understand the
purpose of SWOT because identifying weaknesses gives them advantage to do something
about it before competition.
The research points out that LNGOs consider that professional management (72.7%),
organizational experience (61.7%), clear programs (48.2%) and special expertise (43.6%) are
their most important/medium strengths. This raises the issue of NGO sustainability and viable
programs. If NGOs have professional management and organizational experience then why is
there no NGO sustainability, why more than 80% of registered NGOs are not functional?
On the other hand, LNGOs identified that lack of regional offices (58.2%), lack of experience
in the specific field (25.4%), untrained personnel and lack of managerial experience with
(9.9%) are their serious/improvable weaknesses. KPEP (2009) research indicated that 43%
(of 16 business association) have low institutional capacity, understaffed and lack financial
resources to achieve organizational goal. The report also indicates that associations are
unable to raise funds therefore they rely only on membership dues and donor funds.
These results again raise sustainability issue. The question is: if NGOs are struggling to
sustain one office (one person), how they can sustain 5 other regional offices? Increasing
running cost is not a solution, because they rely heavily on donor funding.
It could be concluded that LNGOs in Kosovo conduct SWOT analysis but the findings are
not elaborated to improve their weaknesses, emphasize their strengths in order to create their
competitive advantage to use the potential opportunities.
Opportunities selected by LNGO have different levels of actualization and attractiveness, but
although NGOs selected as an attractive and realistic opportunity they are not committed or
working out to utilize these opportunities to the best of their interest.
Threats are categorized according to the level of seriousness and the research indicates that
NGO politicizing is anticipated as a very serious threat (with 47.3%) and serious but
avoidable (with 23.6%); lack of funding is also anticipated as a serious threat (with 32.7%)

61
and serious but avoidable (with 34.5%); most NGOs are identified with one person NGOs
which is also perceived as a threat for NGO community but not so serious (21.8%).
The most serious threat for NGOs, is their negligence to competition, the results of the
research indicate NGOs do not perceive competition as very serious threat (0%), furthermore
only 7% indicated that it could be avoided and 9% indicated that competition is not serious
threat. In the other hand they are complaining for lack of funding (more than 66%).

5.3.2.3 Application of Marketing strategies and Marketing mix by

LNGO
As indicated by Sargeant (1999), nonprofit sector can employ three different strategies:
overall marketing direction, segmentation and positioning strategy.
The fact that only 26% of NGOs have marketing plan, and none of them have budget for its
implementation, is an indicator that LNGOs do not have viable marketing strategy. Mostly
NGOs employ market development tactics whereby they try to expand their market share in
other regions, and to some extent product/service development strategy when NGOs forecast
saturation of existing services or if its foreseen donor’s shift of interest from one service (or
target group) to another .
Converting strategies into tactics by using marketing mix is another step that NGOs should
employ during their process of marketing plan. Marketing mix at nonprofit sector involves 7
P of Marketing (Price, Promotion, Product, Place, Processes, People and Physical goods).
The research indicates that LNGOs in Kosovo mostly employ promotion; product and some
extend people whilst other marketing mix elements are used once in awhile.
Promotion involves all instruments employed to inform and persuade current and prospect
customers about the benefits they will experience from utilizing a service (Sargeant, 1999).
There are different instruments to be used in order to convey the right message, to right
customers at the right time.
The research indicates that elements of the promotion mix interlock very well when
promoting a project. LNGOs indicated that they use brochures (45.1%); direct contacts with
donors (32.4%); Website (15.5%); and direct contacts with beneficiaries (14.1%).
It is important to emphasize that 73.3% of NGOs practice promotion on project basis, due to
lack of marketing budget. Hence, this hinders LNGO to achieve their marketing objective
because the right message is not conveyed at the right time to right customers.
People are crucial in nonprofit sector because they are in direct contact with beneficiaries and
donors. The research indicated that employees and volunteers (12.7% and 9.9%) are involved

62
at the promotion mix but not as it should. Moreover, during my working experience with
UNDP, volunteers (including employees) have indicated that their services and capacities are
misused.

5.4 The role of marketing for fundraising

As indicated in literature marketing plan is a road map that keeps the organization focused,
moreover it serves as a tool for gaining new donors while retaining old ones. Most NGOs
including business association cannot survive without donor funding. The research done by
KPEP (2009) with 16 business association concluded that although 80% of business
associations have strategic plans (which include marketing activities), they have no capacity
to implement it.
Moreover, the research (KPEP, 2009) indicates that business associations do not apply
marketing or brand image. Resulting with low income due to their incapability to create,
communicate and deliver value (services/products) to their membership.
KPEP research also indicates that business associations rely heavily at international expertise
offered by donors but don’t use the opportunity to create local expertise which could
contribute to the NGO sustainability, while only 16.7% generate income by selling their
services (Mullatahiri research, 2008).
In addition to it business associations overestimate their capabilities for fundraising but
external evaluation points out different figures compared to their self-evaluation.
That said, I would like to stress once again Michael Hohne’s statement “fundraising is never
easy, since thousands of NGOs pursue the same donor.” This means that only NGOs that are
mature, SMART and capable to get donors commitment can survive.
Williams (1999) pointed out that fundraising has life cycle consisting of five stages spread
out in three phases varying based on “sources of funding, status of fundraiser and percentage
of voluntarily income in total income”
The Appeal (phase one) includes the first stage when the NGO is established because the
founders are passionate about the cause therefore use all available resources and bring a lot of
effort to achieve the organizational; than comes the second stage when the passion starts to
fade and there is a need for more money.
For LNGOs in Kosovo, the first stage was encountered before the war and after the war until
2000-2001. Beginning of year 2001, LNGOs entered the second stage (we need more
money).
Then comes the Fundraising (phase two) is transition phase from passionate volunteers to

63
professional fundraisers. This phase comprises from stage three when NGOs need help and
support from donors to increase human capacities capable of management and create services
which contribute towards sustainability; then comes stage four when NGOs are ready to take
over and become self-sustainable. At this stage NGOs are aware about the importance of
establishing fundraising and communication departments.
The research indicates that depending on the NGOs experience, LNGOs in Kosovo are still
struggling between second and third stage. The same was indicated by KPEP research (2009).
The Marketing (phase three) is the phase when NGOs become aware of marketing as integral
part of the organization where all teams work together to achieving the overall goal.
Most of LNGOs in Kosovo are far beyond this stage, it could be said that only nine or ten
(0.2%) LNGOs that have international experience have reached this stage.
Hence, marketing is the highest stage or maturity stage (sustainability) for the NGOs.
It is obvious that NGOs have to raise fund in order to be sustainable, but fundraising should
be done in organized way. Sargeant (1999) indicates that with donors, NGOs should use the
same marketing segmentation (a priori approach and post-hoc approach) as with any other
customers. Sargeant (1999) also categorized donors in three groups: individual, corporate and
Trusts/Foundations, hence each group requires different marketing techniques.
The research points out that NGO resource in 54.9% of cases come from local donors (local
foundations and individual donors). Thus, LNGOs in Kosovo are using some of the
individual fundraising techniques such as membership fees, sponsoring someone in the event,
pub and shop collection, but as indicated by Halfpenny and Lowe these fundraising
techniques do not generate big revenues. Therefore, NGOs should establish solid marketing
strategies and fundraising techniques in order to ensure sustainability.
The research also indicates that only in 25.4% of cases the NGO resources come from local
businesses or corporate donors. Hence, in order to be successful, NGOs should define the
type of support needed by corporate donor, understand the corporate donor interest/cause,
categorize donors based on their Interest potential and Giving potential, define the
communication strategy, and monitor/ evaluate the activities (Sargeant, 1999), but at the
same time should be very careful not to lose public trust. Sometimes, corporate donors have a
tendency to create their ‘social responsibility’ reputation through sponsoring associations but
if organizational cause is in contradiction with corporate cause, the NGO will loose it
reputation.
In this regard, due to lack of funding, some LNGOs in Kosovo are not taking into
consideration the threat of damaging their reputation. Moreover there is no categorization of

64
the corporate donor interest and giving potential, sometimes LNGOs do not bother to
establish good communication tactics with donors. The research also indicates that only
11.7% of LNGOs communicate directly with donors, which indicates that LNGOs are not
client oriented. This is a clear indication that institutional relationship marketing is not
applied by LNGO.
Taking into consideration that in Kosovo during these 10 years many foundations were
present, raising funds from Trusts/Foundation was general approach of Kosovo’s LNGOs
(88.7% of cases). In order to be successful in this process, Sargeant indicated 7 steps, but
sometimes Kosovo’s LNGOs skip some steps or develop project as per the Foundation’s
criteria whilst surpassing organization’s mission.
Thus, marketing is an important tool in the process of raising funds from different donors
because if used correctly ensures sustainability and increases organization’s reputation.

6 RECOMMENDATIONS AND CONCLUSIONS

Recapitulation
As a summary it can be pointed out that a comprehensive research in the area of how
marketing management is utilized by local NGOs in Kosovo. The project report comprises of
6 chapters, starting with introduction of the topic and presentation of the research objectives
and questions at the first chapter, following with presentation of the research methodology at
the second chapter. Subsequently, the third chapter provides a thorough review of the extant
literature regarding marketing management at the business and nonprofit sector, including the
fundraising techniques for sustainability. The following chapter provides a detailed report of
the empirical data about the situation and structure of the local NGOs in Kosovo, and how
marketing is managed by LNGOs as an effort for fundraising and being sustainable. The
process of data collection was interesting yet very hard since the research involved LNGOs
from 5 regions. The fifth chapter presents the analysis of the empirical findings based on the
theoretical data. The empirical findings were examined step by step based on marketing
planning steps. At this stage it was established that LNGOs in Kosovo are partially in line
with what the existing literature indicates. Secondly, as a result of this project the marketing
plan guide will be presented. The guide will serve as model to support nonprofit sector in
their effort to perform marketing and will be distributed to all NGOs who contributed to this
report with their information. The research indicates that the theory on marketing
management does not give answers to all issues encountered in the real life. Different

65
countries have different particularities which impact civil society development with it, the
effectiveness of doing marketing by using different marketing techniques.

Theoretical and practical implications

The objective of this research was to identify how marketing is utilized by LNGOs in Kosovo
and to what extend; understand Strengths, Weaknesses, Opportunities and Threats facing the
NGO community; and based on findings develop the marketing plan guide for the nonprofit
sector in Kosovo.
Basically, the results of the research indicate that the marketing management at non-profit
sector is still unexplored in Kosovo, because NGOs perceive marketing as promotion. Since
1999, many studies and surveys were carried out by different institutions (including donors)
with regard to analyzing civil society development in the field of advocacy & lobbying,
education and training, relations and influences with government etc.
Every study report indicates that LNGOs in Kosovo are not sustainable because they heavily
depend on donor funding. Hence, as soon as donor funding ends, they will cease to exist or
change their mission (very often) as per donor agendas.
Maybe the research and my thesis will not make a great contribute to the state of art but it
definitely contribute to the increased awareness regarding the NGO marketing management
in Kosovo, as one area that should be developed further. I’ve been working for and with
nonprofit sector since 10 years now, but until today no study research was done in the field of
non-profit marketing management. Hence, this paper is highly valuable for NGO community
and for marketing practitioners because it emphasizes the importance marketing at the
nonprofit sector for establishing better relationships based in trust with all stakeholders
involved as a starting point for a successful planning and implementation, and sustainability
of the NGOs in Kosovo.
I must say that civic society development differs from one country to another every country.
Even in countries of ex-Yugoslavia, which came out from the same socialistic system, civic
society development has its particularities. Therefore, the findings of the research are
analyzed and commented based on my experience with this sector, which emphasizes the fact
that for NGOs in Kosovo, marketing entails dialogue, better communication channels and
commitment to build trustful relationships between all parties involved.
Thus, marketing plan guide (practical model) distributed to all 71 NGOs, will be a tool to
educate nonprofit sector about the benefit of having a holistic marketing approach (focusing
more in relationship and internal marketing); and will also serve as basis for marketing

66
research, environmental scanning, conducting SWOT, and preparing a plan, feasible enough
to be implemented by LNGO.
As a follow up to this paper a focus group discussion with NGOs (71 interviewed) can be
conducted within a period of two years, in order to evaluate the results of this paper by
addressing questions such as: Did your NGO use marketing plan guide and did they prepare
an NGO marketing plan? Where they successful? How did the marketing plan formulation
and implementation support their endeavors to fundraising? How did it affect NGO
sustainability?

Concluding remarks
During my research I found out that the local NGOs in Kosovo face communications
problems with their customers, including donors, beneficiaries, employees and volunteers
Moreover, the research indicated that nonprofits perceive marketing as not necessary. This is
partly because there is no tradition of holistic marketing approach, as a result of the
communist system that regulated the level of production, markets and the market price, and
therefore nobody deemed it necessary to market products/services. Therefore, both for profit
and non-profit organizations have a lot to learn as far as marketing is concerned, to ensure
use of appropriate marketing techniques and achieve sustainability.
To achieve this, LNGOs should be aware that certain services should be individualized and
tailored to customer needs.
Furthermore, local NGOs that are using marketing face many challenges with regards to
marketing planning and implementation, meaning that: marketing objectives are stated in
terms of beneficiaries (non-financial); motivating volunteers; facing strict control from
public; NGO mission accomplishment vs. donor interest; threat for losing their soul etc
To overcome these challenges NGOs should define and clarify their mission and objectives,
develop and deliver services as per customer (beneficiaries) needs, identify marketing
orientation, identifying their marketing segment, have straight forward marketing strategies
and tactics which are apparent for all involved in marketing implementation.
These activities are a pre requisite for NGO functionality and for fulfilling their role in good
way.
Therefore, the NGO Marketing plan guide was developed to provide a useful tool for NGOs
and fill in the gap existing in the marketing management theory in Albanian language. By
using marketing plan guide and applying the recommended steps, LNGOs will improve their
marketing strategies and will increase their chances for being sustainable.

67
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APPENDIX 1. Tables from the primary data collection

Table 1.1 Indicates the break down per legal structures (Association and Foundation),
regulated by UNMIK Regulation 1999/22.

Frequency Percentage
Association 68 96%
Foundation 3 4%
Total 71 100%
Table1. 1 NGO's indicated by Type

Table 1.2. Indicates the structure of NGOs as per their status.

Organizational structure as per legal status Type of NGO

Association Foundation Total
Structure of the Members'
49 0 49
Organization(a) Assembly
Board of
57 3 60
Directors
Executive
50 1 51
Director
President 16 2 18
Total 68 3 71
Percentages and totals are based on respondents.
a. Dichotomy group tabulated at value 1.
Table1. 2 Organizational structure as per legal status

Tabel 1.3. Indicates the break down results of the respondents by years of the experience and
the position at the NGO.

Years of the experience with NGO

1-3 4-6 7-9 over 9 Total
Position in the Executive Director 2 10 22 7 41
NGO
28.6% 47.6% 78.6% 46.7% 57.7%
President of the 3 3 1 2 9
Board 42.9% 14.3% 3.6% 13.3% 12.7%
Board Member 2 2 4
.0% 9.5% .0% 13.3% 5.6%
Project Manager 1 4 3 1 9
14.3% 19.0% 10.7% 6.7% 12.7%
Program Manager 1 2 2 3 8
14.3% 9.5% 7.1% 20.0% 11.3%
Total 7 21 28 15 71
100.0% 100.0% 100.0% 100.0% 100.0%
Table1. 3 Break down by Position in the NGO * Years of the experience with NGO

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Table 1.4. Indicates break-down by position and age.

Age
18-25 25-35 35-45 over 45 Total
Position in Executive Director 4 16 13 8 41
the NGO
33.3% 61.5% 68.4% 57.1% 57.7%
President of the Board 5 3 1 9
41.7% 11.5% .0% 7.1% 12.7%
Board Member 1 1 2 4
8.3% 3.8% .0% 14.3% 5.6%
Project Manager 1 4 4 9
8.3% 15.4% 21.1% .0% 12.7%
Program Manager 1 2 2 3 8
8.3% 7.7% 10.5% 21.4% 11.3%
Total 12 26 19 14 71
100.0% 100.0% 100.0% 100.0% 100.0%
Table1. 4 Break down by Position in the NGO * Age

Table 1.5. Indicates the focus of NGOs with regards to resource attraction or donors.

Responses Percent of
Number Percent Cases
NGO Resources International Donors
63 40.4% 88.7%
come from (a) Funds
Local Donors Funds 39 25.0% 54.9%
Local businesses Funds 18 11.5% 25.4%
Income from services 26 16.7% 36.6%
Other Funds (specify) 10 6.4% 14.1%
Total 156 100.0% 219.7%
a. Dichotomy group tabulated at value 1.
Table1. 5 Key funding sources targeted by local NGOs

Table 1.6. Indicates the focus of NGOs with regards to resource allocation/primary
beneficiaries.

Frequency Percentage
Primary Youth 40 56.3%
beneficiaries Women 9 12.7%
Minorities 1 1.4%
Children 1 1.4%
Persons with special
4
needs 5.6%
Community in general 12 16.9%
Business community 3 4.2%
No answer 1 1.4%
Total 71 100.0%
Table1. 6 Resource allocation according to its priority - primary beneficiaries

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 Table 1.7. Indicates the focus of NGOs with regards to resource allocation to secondary
beneficiaries.

Frequency Percentage
Secondary Youth 10 14.1%
beneficiaries Women 3 4.2%
Minorities 9 12.7%
Children 9 12.7%
Persons with special needs 6 8.5%
Community in general 25 35.2%
Business community 2 2.8%
No answer 7 9.9%
Total 71 100.0%
Table1. 7 Resource allocation according to its priority - secondary beneficiaries

Table 1.8; 1.9; 1.10. Indicates the correlation between marketing plan and structures
involved in the planning process and the frequency of updating the marketing plan.

Bodies involved in Marketing planning(a)

Assembly Board of Executive I don't

members Directors Director President Expert Employees know Total
Does your Y 8 13 7 7 8 4 3 19
organization have
marketing plan? 42.1% 68.4% 36.8% 36.8% 42.1% 21.1% 15.8%
Total 8 13 7 7 8 4 3 19
Percentages and totals are based on respondents. a. Dichotomy group tabulated at value 1.
Table1. 8 Marketing Plan and Body involved in planning

Who is responsible for Market Plan implementation (a)

Board of Executive Marketing
Directors Director President Manager i Employees Others Total
Does your Y 8 11 2 3 9 1 19
organization have
marketing plan? 42.1% 57.9% 10.5% 15.8% 47.4% 5.3%
Total 8 11 2 3 9 1 19
Percentages and totals are based on respondents. a. Dichotomy group tabulated at value 1.
Table1. 9 Marketing plan and People involved in implementation

Marketing plan is updated

Every
Once a Twice a second Every fifth
year year year year Total
Does your Y 13 2 2 1 18
organization have
marketing plan? 72.2% 11.1% 11.1% 5.6%
Total 13 2 2 1 18
Percentages and totals are based on respondents.
Table1. 10 How often Marketing plan is updated

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Table 1.11. Presents primary and secondary factors for determining organizational directions.

Primary factors Secondary factors

Environmental scanning was Political Factors 37.2% 16.3%
conducted Economical Factors 14.0% 20.9%
Social Factor 41.9% 34.9%
Technological Factor 2.3% 7.0%
Environmental 4.7% 14.0%
Total 100.0% 100.0%
Table1. 11 Primary and Secondary factors determining the direction of the organization

Table 1.12; 1.13; 1.14; 1.15: Specify strengths, weaknesses, opportunities and threats that
NGOs weighted as important, serious and attractive.

Profession
al Organization Having Low
Special managem 's Clear Marketing Qualit/ fee/Servi Full equip Regional
expertise ent experience Programs Plan Services ces office Offices
Important
Strength 30.9% 52.7% 32.7% 16.4% 0% 12.7% 3.6% 7.3% 5.5%
Medium
Strength 12.7% 20.0% 29.1% 21.8% 1.8% 14.5% 3.6% 9.1% 1.8%
Satisfactory
strength 5.5% 1.8% 16.4% 10.9% 10.9% 14.5% 12.7% 27.3% 5.5%
No Answer 50.9% 25.5% 21.8% 50.9% 87.3% 58.2% 80.0% 56.4% 87.3%
100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Note: 1.8% responded 'don't know'
Table1. 12 Strengths categorized by their level of importance

Lack of
expertise Lack of Lack of Lack of Unqualita
Untrained in specific Managerial regional organiz.. Unclear tive Lack of
personnel field experience offices experience programs services equipmen
Serious
1.8% 14.5% 3.6% 47.3% 0% 0.0% 0.0% 14.5%
weakness
Improvable
9.1% 10.9% 7.3% 10.9% 3.6% 7.3% 3.6% 14.5%
weakness
Low time 9.1% 9.1% 1.8% 7.3% 3.6% 9.1% 3.6% 9.1%
No Answer 80.0% 65.5% 87.3% 34.5% 92.7% 83.6% 92.7% 61.8%
100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Note: 12.7% responded 'don't know'
Table 1. 13 Weaknesses categorized by their level of seriousness

Approval of the
Law on Establishing local & Fundraising through NGO - Opening
Sponsorship international networks Marketing Plan specialization regional offices
Attractive in near
21.8% 20.0% 9.1% 5.5% 3.6%
future
Attractive and
23.6% 14.5% 23.6% 10.9% 5.5%
realistic
Attractive hardly
20.0% 25.5% 7.3% 21.8% 3.6%
achievable
No answer 34.5% 40.0% 60.0% 61.8% 87.3%
100.0% 100.0% 100.0% 100.0% 100.0%
Table1. 14 Opportunities categorized by their level of attractiveness

74
 Lack of Perceived as Large
One person = One cooperation opposite by Competition
NGO politicized Lack of funds NGO among NGO's Instit..
Very serious 47.3% 32.7% 9.1% 5.5% 10.9% 0.0%
Serious but
avoidable 23.6% 34.5% 21.8% 10.9% 14.5% 7.3%
Not so serious 12.7% 7.3% 12.7% 21.8% 27.3% 9.1%
No answer 16.4% 25.5% 56.4% 61.8% 47.3% 83.6%
100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Note: 1.8% responded 'don't know'
Table1. 15 Threats categorized by their level of seriousness

Table 1.16. Presents the correlation between promotion mix tools and the frequency of
utilization.

Values are indicated by Very Time after Sometime Once No Total

percentage often time s Answer
Brochures 45.1 11.3 7.0 9.9 26.8 100.0
Website 15.5 14.1 4.2 5.6 60.6 100.0
Direct contact with donors 32.4 18.3 18.3 1.4 29.6 100.0
Direct contact w/t beneficiaries 14.1 29.6 19.7 4.2 32.4 100.0

Daily Newspapers 7.0 5.6 11.3 4.2 71.8 100.0

Promotion Mix

Media TV 8.5 7.0 11.3 9.9 63.4 100.0

Bulletins 2.8 4.2 4.2 7.0 81.7 100.0
Posters 5.6 2.8 7.0 8.5 76.1 100.0
Billboards 2.8 - - - 97.2 100.0
Commercials at e-tonic Media 4.2 1.4 5.6 2.8 85.9 100.0
Employees 12.7 8.5 1.4 8.5 69.0 100.0
Direct mail 2.8 1.4 1.4 1.4 93.0 100.0
Electronic mail 4.2 4.2 7.0 5.6 78.9 100.0
Professional Agencies 1.4 1.4 0.0 1.4 95.8 100.0
Volunteers 9.9 5.6 21.1 8.5 54.9 100.0
Table1. 16 Promotion Mix and the frequency of utilization of different promotional tools.

Table 1.17; 1.18; 1.19 Present evaluation tools for services, staff and level of satisfaction
used by NGOs.
Evaluation tools Percentage
Services are Evaluation forms 28.2%
evaluated through Direct interviews with
beneficiaries 39.4%
Visits to beneficiaries 16.9%
Telephone calls 1.4%
Evaluations through web 2.8%
Donor evaluations 9.9%
I don't know 1.4%
Total 100.0%
Table1. 17 Service evaluation

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 Evaluation tools Percentage
Staff's performance is Monthly evaluations 32.4%
evaluated through Evaluations based in
contract 12.7%
Joint visits in the field 14.1%
Weekly reports 15.5%
Monthly reports 25.4%
Total 100.0%
Table1. 18 Staff evaluation

Level of satisfaction Percentage

Satisfaction with Very satisfied 23.9%
performance of the Satisfied
organization
60.6%
Neither satisfied nor
unsatisfied 12.7%
Unsatisfied 1.4%
Very unsatisfied 1.4%
Total 100.0%
Table1. 19 Level of satisfaction

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