The Application of Stakeholder Theory to Relationship Marketing Strategy Development in a Non-profit Organization

Non-profit (NP) organizations present complex challenges in managing stakeholder relationships, particularly during times of environmental change. This places a premium on knowing which stakeholders really matter if an effective relationship marketing strategy is to be developed. This article presents the successful application of a model, which combines Mitchell’s theory of stakeholder saliency and Coviello’s framework of contemporary marketing practices in a leading NP organization in the U.K. A cooperative enquiry approach is used to explore stakeholder relationships, dominant marketing practices, and to surface differing perceptions about the organization’s marketing strategy. Resolving these differences sets the scene for developing choices in marketing strategy for the future. Simon Knox is Professor of Brand Marketing at the Cranfield School of Management in the UK and is a consultant to a number of multinational companies including Levi Strauss, DiverseyLever, BT and Exel. Upon graduating, he followed a career in the marketing of international brands with Unilever plc in a number of senior marketing roles in both detergents and foods. Since joining Cranfield, Simon has published over 100 papers and books on strategic marketing and branding and is a regular speaker at international conferences. He is a Director of the Cranfield Centre for Brand Management Development in the School and is currently looking at the impact of Corporate Social Responsibility on Brand Management. He is the co-author of two recent books, "Competing on Value", published by FT Pitman Publishing in the UK, Germany, the USA and China, and "Creating a Company for Customers", FT Prentice-Hall, in the UK, Brazil and India. Colin Gruar is currently studying for his Doctorate of Business Administration at the School. His thesis is concerned with developing marketing strategy across stakeholder groups in the Not-for-Profit sector.Formerly Head of Marketing at a major UK medical research charity, Colin has also had senior roles in sales, marketing and operations management in a range of sectors including manufacturing, financial services and energy supply.