Marketing Strategies and Value Creation for Non-profits: Oxfam

This report analyzes Oxfam International's marketing strategies and value creation processes within a non-profit context. It begins with an executive summary and introduction outlining the importance of value creation in business, particularly through marketing communication. The report provides background information on Oxfam, highlighting its mission to eliminate poverty and its various activities. It then delves into Oxfam's marketing communication, emphasizing its fundraising efforts and strategic planning. The core of the report focuses on marketing strategies, value creation, and theoretical approaches, including collaboration and stakeholder theory. The report examines how Oxfam uses marketing strategies to achieve its goals, including responses to humanitarian crises and policy changes. It explores the concept of collaboration and the collaborative value creation framework, which is crucial for non-profit organizations. The report concludes by summarizing the key findings and emphasizing the importance of the chosen strategies in creating value for Oxfam and its stakeholders.

Running head: MARKETING STRATEGIES AND VALUE CREATION
MARKETING STRATEGIES AND VALUE CREATION
Name of the Student
Name of the University
Author Note

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Executive Summary:
The purpose of the report is to highlight the process of value creation in business through various
marketing strategies. The method used in the report includes the study of two theoretical
approaches of value creation for nonprofit organization. The report concludes that through the
different theoretical framework and strategies the chosen organization ensure its value creation.

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Table of Contents
Introduction:....................................................................................................................................3
Company Background:....................................................................................................................3
Marketing Communication:.............................................................................................................4
Oxfam’s Marketing Communication:..........................................................................................5
Marketing Strategies:.......................................................................................................................6
Value Creation through Marketing Strategies:............................................................................6
Oxfam’s Marketing Strategies:....................................................................................................7
Theoretical Approach on Value Creation:.......................................................................................7
Collaboration:..............................................................................................................................8
Collaborative Value Creation Framework:..............................................................................9
Stakeholders’ Importance:.........................................................................................................10
Stakeholder Theory:...............................................................................................................11
Conclusion:....................................................................................................................................12
Reference:......................................................................................................................................14

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Introduction:
The primary aim of any business entity is the values creation. The creation of the values
by the firm helps the same to sell the products or service to the customers. The value creation is
the process by which the company can ensures its profitability in the market through its products
and service. The creation of the values is determined by various factors of the business as well as
the strategic management of the organization (Achtenhagen, Melin & Naldi, 2013). On the other
hand, value creation is referred to one of the aspects of the marketing communication which is
determines the firm’s performance in the market. The marketing communication further involves
the identification and understanding of the target audience, differentiation from the
competition in the market, development of the key messages and the selection of the
communication channels (Luxton & Mavondo, 2015). The marketing communication is thus
important for the creating and values to the organizations business activities. For establishing the
proper marketing communication and creating values for the business, different strategies are
used by the firms. The strategies determine the effectiveness of the value creation through
business communication (Grönroos & Voima, 2013). There are some theories, models and
principles that are used for utilizing the marketing communication in order to create value for
organizational activities. The chosen company for the following report is Oxfam International,
which is a non-profit organization. It must be noted that for any nonprofit organization the
marketing communication and value creation are focused on the service of the organization and
the same is not referred to the profitability.

4MARKETING STRATEGIES AND VALUE CREATION
Company Background:
Oxfam International is one of the biggest international nonprofit organizations based in
Australia. The aim of the organization is to eliminate poverty from the world (Oxfam
International, 2017). The firm is into various activities for the poor in order to create permanent
solution for removing their poverty. The purpose of the organization is focused on the
elimination of the poverty by supporting the poor communities in all over the world. The
company believes in the right to equality and for doing the same the firm in engaged in various
welfare activities through which the poor people can get opportunities to remove their poverty.
The organization is committed towards the protection of the human rights of the people
living in poverty throughout the world. Therefore, the area of serving the people and various
communities is spared in all over the world. The company was founded in 1942 and presently
serving the poor people of 20 countries. Being a charitable organization, Oxfam is not into any
specific business activities, rather the company does campaign and different fundraising program
for fighting the poverty. At present the company is serving 90 communities in the international
context. The activities of the company include financial support, educational and health support,
human development and women empowerment.
Marketing Communication:
Marketing communication is one of the major aspects for the business organization that
ensue the effective business activities of the firm in the market of target audience. The
effectiveness of the marketing communication is measured through the achievement of the
business goals and objectives which are focused on increasing preferences, raising awareness
and generating leads (Thorson & Moore, 2013). All these activities of the marketing

5MARKETING STRATEGIES AND VALUE CREATION
communication ensure the value creation and value addition to the business. Precisely, the
marketing communication is the process and strategies through which the firm communicates
with the consumers in order to convey right messages to the targeted audience (Vanhamme et al.,
2012). Among the different types of the marketing communication, development of the key
message is the majorly important in terms of making the consumers aware of the marketing and
business activities of the firm for the certain stakeholders. Through the effective marketing
communication, the firm is able to ensure the profitability and long run of the firm in the
competitive market.
Oxfam’s Marketing Communication:
It is mentioned previously that being the charitable nonprofit organization, the company
is not into any specific business activities that can make profit to the organization. Consequently,
the company has no such competitors in the market from the same background. However, there
is various nonprofit organization in all over the world, but the aim of them are different from
Oxfam. On the other hand, having no such market and competitors the firm’s marketing
communication is not based on the business activities.
As mentioned earlier the organization is aimed at providing service to the poor in order to
eliminate the poverty from the world. For serving this purpose the company needs financial
resources by which Oxfam can provide proper support to the poor people. As the company does
not have any proper business, the company sells the old second hand things that are donated by
various people. The company also raises funds from various events and campaigns (Oxfam
International, 2017). Hence the marketing communication of the firm is based on the fundraising
programs for serving the poor.

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The company through its website and various campaigns and events convey its messages
of providing betterment service to the society. For selling the products donated by the people, the
company uses its marketing communication. However, it must be noted that the company is
more focused on the values creating through strategic management rather to focus on marketing
communication.
Marketing Strategies:
Marketing strategies are the major and primary part of the marketing in business. the
proper and effective marketing strategies determine the profitability and success of the business
in the market. Marketing strategies are a set of ways and process through which the company
runs its business activities effectively and uniquely (Hollensen, 2015). Each company has
different set of marketing strategies for its business activities. However, there are some
theoretical and corporate set of marketing strategies that are popular among the successful
business organization as the same have shown its effectiveness. The organizations use their
marketing strategies not only for the successful business activities, but also connecting their
corporate activities to the society which leads the organizations to sustain in the market
(Grönroos & Voima, 2013). In short the proper and effective marketing strategies and its
implementation by the organization ensure the firm’s sustainability, but also create values for its
business.
Value Creation through Marketing Strategies:
The uniqueness of the marketing strategies for each business entity is responsible for the
value creation. The purpose of the marketing strategy is to add value to the organizational
business and corporate social activities. The uniqueness and the differentiation of the products or

7MARKETING STRATEGIES AND VALUE CREATION
service are rendered to the consumers through the effective marketing strategies (Lindgreen et
al., 2012). For example, the marketing strategies of the organization often exaggerate the
specifications and qualities of the products or service offered by the company. Such marketing
strategies undoubtedly add values to the firm’s business activities by attracting more customers
towards the firm. On the other hand, such marketing strategies lock the sustainability of the firm
in the competitive market.
Oxfam’s Marketing Strategies:
It is repeatedly mentioned in the report that Oxfam is a charitable firm and does not
operate any active business. Rather, the nonprofit organization is into serving the poor.
Therefore, the marketing strategies of the firm are focused on achievement of the organizational
goals. As mentioned in the strategic planning report of Oxfam, the firm has six goals and for its
achievement the company’s strategy is to respond effectively and swiftly to the humanitarian
crisis, support the poor for claiming their rights and work for bringing about long term and
significant changes in government policies and practice (Oxfam International, 2017). These
strategies are not exactly the marketing strategies but a part of the strategic plan for achieving the
noble aim of eliminating poverty from the world. Through the annual report of Oxfam, the firm
let its stakeholders know about the strategic plan and the awareness of the people from the same
adds value to the activities of the organization.
Theoretical Approach on Value Creation:
There are different theories of value creation as preferred by the scholars. The theoretical
approach of the value creation of the organizations indicates the effectiveness of the marketing
strategies in order to add values to the firm’s business activities (Husted, Allen & Kock, 2015).

8MARKETING STRATEGIES AND VALUE CREATION
This must be noted that the theories of value creation are different for profit and nonprofit
organizations because the marketing strategies are different for the firms. The theoretical
approach of the value creation enables the firms to ensure the success of its business activities.
Collaboration:
One of the major strategies of the firm for value creation is the collaboration. There are
so many organizations that collaborate with various other business entities for adding more value
to the business. Collaboration makes the organization increase its public image and social values.
On the other hand, the collaboration increases the profit through the more approachable business
activities. As opined by Pedersen and Solerød, (2016), most of the business entities are now
moving forward to collaborate with other local business organization, be it small or big, for
profitable outcomes through increased business.
To win the competition in the market, the company must ensure meaningful and long
lasting relationship with the consumers. For strengthening the relationship with the stakeholders
as well as wit the customers, the firm therefore chose the collaboration. The local business
entities are more popular to the customers and have the brand loyalty; hence it adds an advantage
to firm’s business as well as to the public image when it collaborates with the local business
organizations (Austin & Seitanidi, 2012). Along with this, both the collaborating organizations
are provided with wide range of resources through the collaboration which are beneficial for both
of them.
Similarly, Oxfam is no different. Oxfam also believes in the collaboration for enhancing
the process of value creation to its business (Oxfam International, 2012). However, the
collaboration for Oxfam in not indicated towards the increase of firm’s rate of profit (Sodhi,

9MARKETING STRATEGIES AND VALUE CREATION
2015). On the opposite side, the collaboration organizations are provided with the scope to
participate in the social welfare program as conducted by Oxfam, which enable the profit-firms
to overcome business model and social liabilities (Dahan et al., 2010). In regard to this, it must
be mentioned that Corporate Social Responsibilities (CSR) is one of the emerging strategies that
have became almost necessary for the firm operating its business in a broader context to avoid
the legal obligation (Lee, Olson & Trimi, 2012). Through the strategy of collaboration the
profitable organization is able to engage in CSR activities practiced by the non-profit
organization.
Collaborative Value Creation Framework:
As discussed the collaborative value creation framework is one of the major and effective
framework that aims at the creation of the value for the non-profit organization through
collaboration. The theoretical approach defines value as “the transitory and enduring benefits
relative to the costs that are generated due to the interaction of the collaborators and that
accrue to organizations, individuals and society” (Pedersen & Solerød, 2016). This theoretical
framework is divided into four sections: The Value Creation Spectrum, Collaborative Stages,
Partnering Processes and Collaborative Outcome (Austin & Seitanidi, 2012). The Oxfam’s
value creation strategies follow this theoretical approach through collaboration (Oxfam
International, 2012). This model of value creation proposes an analytical, extensive and
conceptual approach to the firm’s marketing strategies.

10MARKETING STRATEGIES AND VALUE CREATION
Figure 1: The Value Creation Framework
Source: Koschmann, Kuhn & Pfarrer, 2012
Stakeholders’ Importance:
Stakeholders are the most important and basic part of any organization. Stakeholders are
the people of the firm who are responsible for successful business activities. The importance of
stakeholders is measures by overall business activities of the firm in the competitive market. For
any international business organization, the stakeholders play the most vital role in determining
the success and profit of business in the international market. It must be mentioned that the
stakeholders are not only the employees of the consumers of the organization, but also refers to
all the people involved in the business activities directly as well as indirectly.
As stated by (Austin & Seitanidi, 2012), stakeholders are the basis of the business which
influence the sustainability of the firm in the market. In addition, the stakeholders also are

11MARKETING STRATEGIES AND VALUE CREATION
capable of influencing the value creation of the business. Both the profit and nonprofit
organizations are dependent on their stakeholders’ engagement in the business activities and
CSR activities for long term existence in the market. The key stakeholders of the firms are the
investors, employees, shareholders, vendors and customers. All the key stakeholders are
important for playing its own role which individually adds value to the business.
On the other hand, the engagement of the stakeholders is determined by the
organizational activities and image in both the market and society. Therefore, the firms take
some important and effective strategies to engage people to the organization’s activities. Better
communication, social and environmental activities, transparency in the business activities,
giving importance to the stakeholders opinions are some of the strategic management that
ensures the involvement of the same in the organizational activities (Sodhi, 2015).
Similarly, for Oxfam the stakeholders play the most important role in ensuring the firm’s
process of value creation (André, 2014). However, the consumers are less for the organization,
but there are other stakeholders engaged in the organizational activities for serving the poor. The
firm also follows the stakeholder’s theory for the engagement of more people for serving the
noble purpose of Oxfam.
Stakeholder Theory:
Considering the importance of the stakeholder’s engagement in the firm’s activities, the
stakeholder theory is aptly consistent with the maximization of value for the firm. The
stakeholder’s theory is indicated towards the management of the organization to comply with the
constituencies in the part of the stakeholders that is capable of affecting the firm (Sodhi, 2015).
The theory of stakeholders implies that the organization must pay attention to the employee

12MARKETING STRATEGIES AND VALUE CREATION
management; consumer’s benefits and suppliers risk reduction, governmental regulation and
organizational ethics maintenance, community development and competitor’s analysis in terms
of creating and adding value to organizational activities (Dentoni, Bitzer & Pascucci, 2016).
Similarly, Oxfam maintains the stakeholder theory as a strategy to secure the value creation for
the firm.
Figure 2: Stakeholder Theoretical Framework
Source: Harrison & Wicks, 2013
Conclusion:
Therefore it can be concluded from the above report that the value creation is one of the
major aspects of the business. The report identifies that the value creation is possible through
effecting and successful marketing communication. It is presented in the above report that the
marketing communication determines the profitability of the firm. The chosen organization,
SuppliersCmmunityShareholdersCustomersGovernmentsEmployeesCompetitors

13MARKETING STRATEGIES AND VALUE CREATION
Oxfam being a nonprofit organization does not have any specific business, and hence the
marketing communication and the value creation of the firm are based on its service to the
society. It is found in the report that the organization is focused on making a poverty free society
where people have equal rights and for serving this purpose the firm raises funds through various
activities. The value creation of Oxfam is therefore attached to the fundraising programs for the
intended service. The report further discuses two theoretical approach for the value creation of
the nonprofit organization that is practiced by the chosen firm. In addition, it is found that the
report defines that the theoretical frameworks for nonprofit organization are different from that
of profit organizations. However, the approaches present some strategic movement of the firm
for value creation in terms of social activities.

14MARKETING STRATEGIES AND VALUE CREATION
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