Investigating the Use of Integrated Marketing Communication in Non-Profit Organizations
Introduction
The emergence of non-profit organizations has been accompanied by significant developments in the economies of many nations. This follows the enormous revenues that these organizations inject into the economies of nations in which they operate (Spiller, 2013). Besides, these organizations have been witnessed to register immense profits, which have enabled them expand their operations in the recent years. As such, many non-profits organizations have opted to venture into the world of business in the view of developing like their counterparts. Currently, it is estimated that the number of non-profit organizations that are found in the Unites States is 1.4 million. This follows the report that was released by the Urban Institute in 2006 (Kitchen, 2008). Furthermore, it is estimated the recent gross domestic product that is constituted by the nonprofit sector in the U.S. is 5.2 %. This represents approximately $1.4 trillion in terms of the revenue generated. On the other hand, the amount of assets generated by this sector in terms of dollars is 1.3 trillion. It has also been noted that 9% of the U.S. workforce is employed in the non-profit sector (Mihart, 2012). Thus, the non-profit sector happens to one of the most competitive sectors in the world. This has made many companies or organizations employing much effort in attracting employees, donors, media attention and grant funding.
Several non-profit organizations have shifted to the adoption of strategies and philosophies, which were known to be practiced by for-profit corporations, so that they can have an advantage (Dant, 2011). Some of these mechanisms involve famous marketing concepts like database marketing, branding, market segmentation and market orientation among others. These techniques have managed to propel many non-profit organizations towards profit-making. In the view of marketing techniques that are employed by these organizations to maximize their operations, IMC (Integrated Marketing Communications) has emerged to be a significant approach. IMC can be defined as the integration or incorporation of public relations, advertising, sales promotion and direct marketing into a comprehensive scheme or plan (Herron, 1997). Non-profit firms that embrace this approach are often focused on establishing relationships with their supporters and utilizing tactics of communication such as face-to-face communication donor appreciation and recurring newsletters. This is because they believe that this approach provided an efficient means of accomplishing these goals.
Research Questions
This study aims at expanding the knowledge concerning the non-profit organizations’ present use of Integrated Marketing Communications (IMC) in building relationships with stakeholders. As such, this research focuses on accomplishing three goals, which are illustration of the content and application of IMC strategies in organizations, determination of the nonprofit organization types that employ IMC currently and to examine the efficiency or success of these IMC strategies that are used by these organizations. Thus, the research aims at addressing the following questions:
- What are the non-profit organization types that have a high probability of embracing or adopting relationship-building as a significant organizational approach?
- What communication strategies are considered efficient by non-profit organizations that embrace the significance or relationship-building?
- Does the success of given strategies relate to success of establishing and maintaining associations with specific stakeholders?
- Does the success of given strategies relate to benefits that the non-profit organization view as significant to stakeholders?
Literature Review
Studies have revealed that non-profit organizations always gain from developing long-term associations with their supporters. Moreover, studies have demonstrated that new donors do not become profitable in relation to the net income, which is obtained by nonprofit organizations for duration between 12 and 18 months (Clow, 2013). Thus, for these organizations to ensure that their investments in hiring or recruiting donors are worthwhile, they need extend their relationships with donors for periods that exceed 18 months.
In many no-profit organizations, two stakeholder groups that are considered vital are the people who gain from services that are offered by these organizations and supporters who are involved in the donation of time and money. Communication and marketing approaches that aim at establishing relationships with have managed to be successful when applied to all these stakeholders. Researchers such as Barkensjo and Bennett conducted a study on five association-building strategies with people who obtain services that are offered by human welfare organizations or charities in Great Britain. These relationships tactics included two-way communication, database marketing, and relationship advertising. In addition, listening and face-to-face contacts were studied. In their research, the two individuals identified that high satisfaction levels and high quality associations were noted by service recipients who happened to be linked to organizations that employed high quality tactics of relationship-building.
Social exchange theory can be employed in the illustration of the concept of dedication, associations and trust in relation to organizations. This theory was developed in 1959 by Harold Kelly and John Thibaut (Andreasen, 1995). According to this theory, people often assess associations based on consequences. Each association has rewards and costs that are liked to it. Moreover, the consequences that are associated with relationships can be perceived in terms of costs incurred and rewards obtained. Costs are always viewed as drawbacks, which are undesirable and serve block organizations from attaining their goals. On the other side, rewards are often perceived as benefits, which are enjoyable or aid in achieving certain aspirations. In the view of these statements, the social exchange theory can be applied to the association between a non-profit entity and individual (Chen, 2011). As such costs of relationships are the individual’s monetary costs, social dedication, time and emotional investment. On the other hand, rewards d o vary one from one person to another and may include gains from social affiliation between the individual and organization, tax benefits of donations and satisfaction that is obtained from helping other individuals.
Social exchange theory often considers associations a matter which has a high magnitude of selectivity. This is because different associations possess different consequences for different individuals (Andreasen, 1995). When an individual is involved in the exploration of venturing into a novel relationship, this person may be engaged in the assessment of the expected benefits and required investments. As a result of this, this person can be noted to be involved in the comparison of the cost-benefit ratio or association’s anticipated outcomes to this person’s comparison level (CL). CL is refers to the measure against which an individual may assess or evaluate the magnitude of attraction that is linked to a relationship or its level of satisfaction (Quesenberry, 2012). As such, the nearness of the evaluated satisfaction to that of the individual’s CL often leads to high satisfaction level on the part of this individual. Thus, this person can derive a high satisfaction from the relationship in which he or she wants to join.
An individual often chooses whether to break or maintain the association he or she is involved in by considering her or his CLalt (comparison level of alternatives). CLalt refers to the minimum level of results that an individual can accept in relation to the opportunities, which are available in a relationship. The magnitude of CLalt is dependent on the quality level that is linked to the existing alternatives, which are considered appropriate to a person (Quesenberry, 2012). When the relationship’s results go below an individual’s CLatl, this person is often expected to drop this association.
As associations meet results of expectations for costs and rewards, trust is always developed between partners in a relationship. Therefore, partners do gain confidence or self-assurance with each other’s integrity and reliability. The present confidence represents the relocation from a relationship, which is unpredictable to one that is predictable. Predictable relationships are usually associated with stability or robustness as behaviors and motives of partners are can be envisaged. Moreover, as partners continue to meet their expectations in the association, the magnitude of their attraction towards each other always increases. As a result of this, partners do get inspired to continue investing in their relationship. This is because the satisfaction levels that they expect usually continue to rise up (Chen, 2011). On the contrary, the amounts of existing alternatives, which are associated with the achievement of the same satisfaction level, do decrease. Dedication between relationship members happens when satisfaction attains a level, which precludes the anticipated results of all the existing alternative relationships. Consumer loyalty or accomplishment of this level of commitment is the ultimate aim that is linked to the development of relationships for many organizations.
The approaches of dedication and confidence are vital for the establishment of robust relationship alongside. As a result of this, these two concepts are of central significance to non-profit entities. As one would anticipate, individuals have a high willingness of choosing to aid non-profit organizations, which demonstrate services of high quality. Volunteers and donors should demonstrate the willingness to believe that a given entity will employ their donations of time and money in conducting operations in a suitable manner (Quesenberry, 2012). According to the prediction of the social exchange theory, donors or supporters will continue to contribute money and time to organizations, when these parties are satisfied with results of obtained from organizations. As such, non-profit organization should make the provision of rewards, which are desirable to supporters, their priority. This should be extended to ensuring that levels of satisfaction that supporters obtain from organizations are of high quality.
Sample Population and Sample Procedures
The study will employ random sampling technique in selecting the participant organizations. Ten organizations will be involved in this study. Moreover, the study will obtain data that concerns non-profit organizations from the government statistics on tax payments. In addition, data on these organizations can be obtained from the government agency that deals with statistics on charitable organizations (Anderson, 2009). Besides, accurate representation of the population under study will be accomplished by means of sample stratification. This process will be conducted using annual revenue. Consequently, the selection of organizations to take part in the research will be followed by the use of telephone call or online search to identify the addresses or contacts of these organizations. Furthermore, online survey will be sent to these organizations. This will be followed by sending of follow-up emails to those organizations that will not respond after a 4 to five days. It is crucial to note that the random selection process will be repeated to add the number of participants to thirty in case some of the selected organizations will not respond. This will be accompanied by the stratification process and sending of follow-up emails as in the initial process.
Methodology
This research will employ both qualitative and quantitative techniques in the collection and evaluation of data. Qualitative technique is significant because it focuses on obtaining deep knowledge on a specific event or organization as opposed to surface description of enormous samples of population. This method always serves to provide a clear comprehension of the structure, order and broad patterns (Anderson, 2009). Besides, this research technique is referred to as filed research as it is based on the provision of information that is related to human group in social settings. On the other hand, quantitative research technique focuses on numerical analysis. Its objective is often targeted at developing or employing mathematical models and hypotheses or theories that relate to phenomena. One of the main reasons that qualify this method to its use in this study is its ability to yield reliable and quantifiable data, which are often generalized into enormous populations (Creswell, 2003). As such, the study will employ the data obtained from the participants in making inferences about the entire population of non-profit organizations. Besides, this method will enable me test the generated hypothesis as opposed to the qualitative technique, which is extremely exploratory in nature.
Research Instrument
Interview will be employed as a qualitative research technique. This is because it will benefit the research in many ways. This instrument will be used in investigating the research questions in an adequate manner. Moreover, they will provide an insight concerning views of non-profit organizations in relation to the use of ICM in the building of relationships. Interviews always aim at obtaining on gaining a suitable understanding of events via first-hand experience, truthful reporting and citation of valid conversations (Anderson, 2009). In addition, this method will provide the study with a suitable platform on which the investigation of the usefulness and efficiency of library collections and services that are related to the topic of study will be conducted. Consequently, the use of interviews will lead to the achievement of high rates of response from the participants alongside the recording of the participant’s words. Moreover, the accuracy of the research will be enhanced as those who participate in interviews are always not influenced by other participants. Therefore, interviewing of the non-profit organizations will enable the study identify essential mechanisms of responding to the research questions. Participant will be queried on the views concerning the use of IMC in non-profit organizations and answers that they issue will be noted down. This will provide adequate data that will be employed in assessing the efficiency, which is achieved by organizations that employ IMC in relationship-building.
Piloting Instrument
Ten questionnaires will be used as the piloting instrument in this study. Questionnaire is the main mechanism, which employed in the gathering of data as it provides an easy way of accessing people or participants who are located in far distances and those who are near (Saunders, 2003). Based on the method of distributing questionnaires, the process can be done in a swift way followed by an immediate analysis of data. Questionnaires are vital as they help eliminate the biasness that can be associated with the interviewer. This is because the involvement of the interviewer may lead to cues and guiding that can affect the reliability and legitimacy in the research.
In this study, a close ended questionnaire will be designed and replicated to ten questionnaires. These questionnaires will be distributed to the communication professionals who are found in the non-profit organizations that will participate in this study. Eight variables will be evaluated in this research. These variables will include the significance or relationship marketing, the average duration of associations between supporters (community leaders, board members, donors and corporations) and organizations, the view of success in the establishment and maintenance of associations with principal stake holders, views of gains to organizational supporters, annual revenue, and the view of success with communication techniques in building or sustaining relationships. The communication techniques that will be investigated include mailings, advertising, face-to-face and emails. Besides, database marketing and public relations among other will be included in the investigation. Thus, adequate and accurate data will be obtained from the use of questionnaire in this study.
In conclusion, conducting an investigation of the use of IMC in non-profit organizations is crucial in expanding the knowledge that is related to the non-profit organizations’ present use of Integrated Marketing Communications (IMC) in building relationships with stakeholders. Furthermore, it is vital in the achievement of three objectives, which include are the illustration of the content and application of IMC strategies in organizations, determination of the nonprofit organization types that employ IMC currently and to examine the efficiency or success of these IMC strategies that are used by these organizations.
References
Anderson, L; Taylor, F. (2009). Sociology: The Essentials. Belmont, CA: Thomson, Wadsworth.
Andreasen, R. (1995). Marketing Social Change. San Francisco: Jossey-Bass Publishers.
Chen, W. (2011). Integrated Marketing Communications and New Product Performance in International Markets. Journal of Global Marketing, 24(5) 397-416
Clow, K. (2013) Integrated Advertising, Promotion, and Marketing Communications (6th Edition). New Jersey: Prentice Hall.
Creswell, J.W. (2003) Research Design. London: Sage
Dant, P; Gleiberman, A. (2011). Preventing and Combating the Onset of Dark-Side Symptoms. Journal of Marketing Management, 27(13) 1426-1443
Herron, B. (1997). Marketing Non-Profit Programs and Services. San Francisco: Jossey-Bass Publishers.
Kitchen, J; Schultz, E. (2008). Integrated Marketing Communications: Practice Leads Theory. Journal of Advertising Research, 48(4) 531-546
Kotler, P; Alan, R. (1987). Strategic Marketing for Non-Profit Organizations. Englewood Cliffs, NJ: Prentice Hall.
Mihart, C. (2012). Impact of Integrated Marketing Communication on Consumer Behavior: Effects on Consumer Decision Making Process. Journal of Marketing Studies, 4(2) 121-129
Quesenberry, A; Coolsen, K; Wilkerson, K. (2012). IMC and The Effies: Use of Integrated Marketing Communications Touch-Points Among the Effie Award Winners. International Journal of Integrated Marketing Communication, 4(2) 60-72
Saunders, M; Lewis, P; Thornhill, A. (2003) Research Methods for Business Students. Harlow: Prentice Hall.
Spiller, D. (2013). Using Metrics to Drive Integrated Marketing Communication On Decisions: HI-Ho Silver. Journal of Integrated Marketing Communication, 5(1) 24-38
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