smai 2013 - marketing philosophy

Marketing 202:Version 18.0

Core Themes of Marketing Philosophy and Practice

“No other business I know is so under-invested in marketing and sales than independent schools. If we were to "start over," with a new product, we would invest at least 10 percent of our budget in marketing and sales (admissions), but I know of very few schools for whom even a 5 percent investment is standard (inclusive of personnel costs). Thus, the second weak link in our chain of promoting independent schools is our lack of commitment to and under-investment in marketing our own schools.”

Patrick BassettPresident, National Association of Independent Schools, and Marketing Institute alumnus, Class of 1998

Perceptions of MarketingPerceptions of Marketing

Why “Marketing & Advancement” Institute

What Marketing is NOTWhat Marketing is NOT

Advertising Advertising

SalesSales

bbrandingranding

The aim of marketing is to The aim of marketing is to make selling make selling superfluous - Peter superfluous - Peter DruckerDrucker

Mission, Marketing, and MarginMission, Marketing, and Margin

For ProfitsFor Profits Buyer drivenBuyer driven

Mission sensitiveMission sensitive

Money earned must Money earned must equal or exceed equal or exceed money spentmoney spent

Non-ProfitsNon-Profits Mission drivenMission driven

Buyer sensitiveBuyer sensitive

Money earned must Money earned must equal or exceed equal or exceed money spentmoney spent

No margin? No mission.

Schools under financial pressure increasingly shade from being driven by mission to driven by market, for better and for worse.

Selected Other Barriers Selected Other Barriers to Adopting Marketing to Adopting Marketing

Terminology Terminology (e.g. “brand”, enrollment management, cultivation, parent relations, product…)(e.g. “brand”, enrollment management, cultivation, parent relations, product…)

Non-profits lag in adopting proven management Non-profits lag in adopting proven management practices: practices: We look to the nation’s colleges as sources of We look to the nation’s colleges as sources of innovation…but not for management models.innovation…but not for management models.

Belief in the Magic Bullet: Belief in the Magic Bullet: “We need the right “We need the right message.” “Oh, to be mentioned in the Times.”message.” “Oh, to be mentioned in the Times.”

Typical admin structure fractures: Typical admin structure fractures: “To the little boy “To the little boy with a hammer, everything needs to be nailed.”with a hammer, everything needs to be nailed.”

And on…and on…And on…and on…

AkaAka

MBA MarketingMBA Marketing Contemporary MarketingContemporary Marketing

Enterprise MarketingEnterprise Marketing Integrated MarketingIntegrated Marketing Holistic MarketingHolistic Marketing

Strategic Marketing ManagementStrategic Marketing Management Marketing with a capital ‘M’Marketing with a capital ‘M’

Brand Management, but only with a capital ‘B’Brand Management, but only with a capital ‘B’

Marketing We Are Talking about:Marketing We Are Talking about:

Contemporary Definitions Contemporary Definitions

Marketing is an organizational function and a set of Marketing is an organizational function and a set of processes for creating, communicating, and processes for creating, communicating, and

delivering value to customers and for managing delivering value to customers and for managing customer relationships in ways that benefit the customer relationships in ways that benefit the

organization and its stakeholders. organization and its stakeholders. -American Marketing Association-American Marketing Association

Marketing management is the art and science of Marketing management is the art and science of choosing target markets and getting, keeping, and choosing target markets and getting, keeping, and

growing customers through creating, delivering, and growing customers through creating, delivering, and communicating superior customer value communicating superior customer value – Kotler and Keller– Kotler and Keller

Who Said the Following:Who Said the Following:A customer is the most important visitor to our premises. He is not dependent on us, we are dependent on him. He is not an interruption in our work. He is the purpose of it. He is not an outsider on our premises….he is part of it. We are not doing him a favor by serving him. He is doing us a favor by giving us the opportunity to do so.

A: Bill Gates B: Herb Marcus (Neiman Marcus)

C: Mahatma Ghandi D: J. W. Marriott

= Customers= Customers

What do different organizations What do different organizations call “customers”?call “customers”?

Name an organization that does Name an organization that does not have a customernot have a customer

What is the common thread?What is the common thread?

= Being Customer Oriented= Being Customer Oriented

Thinking outside inThinking outside in

Value the customer’s point-of-viewValue the customer’s point-of-view

““Without customers, Without customers,

you don’t have a business”you don’t have a business”

=Exchange of things valued=Exchange of things valued

ALUMNI<------------------>SCHOOLALUMNI<------------------>SCHOOL

PARENTS<------------------>SCHOOLPARENTS<------------------>SCHOOL

What of value is exchanged in each case? In the healthy What of value is exchanged in each case? In the healthy buyer-seller relationship, each side benefits equally.buyer-seller relationship, each side benefits equally.

= Segments= Segments

1.1. Customer e.g.,Customer e.g., Admissions (the “funnel”)Admissions (the “funnel”)

InquiriesInquiries Applicants and Non-ApplicantsApplicants and Non-Applicants Accepts and DeniedAccepts and Denied Matriculants and Non-Matriculants and Non-

Development (the “hierarchy”)Development (the “hierarchy”) Living alumniLiving alumni Reachable alumniReachable alumni Levels of engagementLevels of engagement Levels of givingLevels of giving

Segments of Interest (cont’d)Segments of Interest (cont’d)

2. Internal market2. Internal market

3. Referral market3. Referral market Feeder schools, Education consultantsFeeder schools, Education consultants

4. Influence market4. Influence market Accreditors, Competitors, Opinion Accreditors, Competitors, Opinion

leaders, Advisorsleaders, Advisors

5. Suppliers5. Suppliers

“The Market” is not monolithic. Many segments (aka constituencies) contribute to success, or failure. Each may warrant a plan, certainly a set of objectives and actions to achieve them.

= Alert to Alternatives= Alert to Alternatives Markets change (Surprise!!)Markets change (Surprise!!)

Who is the competition in the market?Who is the competition in the market?

What is our position in that market?What is our position in that market?

It is curious to a marketing pro that none of the typical school’s planning processes (accreditation, the “strategic” plan, campaign planning, board retreats etc) causes one to analyze the market environment, namely customer trends, and competitors.

= A Disciplined Process = A Disciplined Process

as Commonly Observed :as Commonly Observed :

ANALYSIS

EXECUTION

PLANNING

If you don’t remember why it is done the way it is, chances are there is now a better way!!!!

?

Fire! Fire! Fire!

StrategicStrategic Marketing Management Marketing Management

ANALYSIS

EXECUTION

PLANNING

“Without a solid foundation of information about their markets, managers are guessing, not managing.”

EVALUATION

Ready! Aim! Fire! Assess!

= A Reality Check= A Reality Check

For For Visions, Visions, Mission Statements, Mission Statements, Wishes, Wishes, and Platitudesand Platitudes

Alumnus: “Here’s $8 million for a new, larger upper school.”

Marketing: “Is this a priority? Do we appreciate what this change would mean? Can we fill the seats?”

= Managing Reality= Managing Reality

Reality = Reality = CustomersCustomers’ Perceptions’ Perceptions

How do we want to be perceived?How do we want to be perceived?

How does one fix a negative perception? Take How does one fix a negative perception? Take an honest look---is it grounded in reality?an honest look---is it grounded in reality?If yes, then fix the product/program.If yes, then fix the product/program.If no, then fix the perception.If no, then fix the perception.

= Long-term interest in customer= Long-term interest in customer

Selection of only those we can serveSelection of only those we can serve

Retention and satisfaction Retention and satisfaction (e.g. Enrollment management model)(e.g. Enrollment management model)

Build affinity Build affinity

Lifetime value conceptLifetime value conceptTuition ($20,000 * 4) + Lifetime donationsTuition ($20,000 * 4) + Lifetime donations

or, just sell snake oil!or, just sell snake oil!

Draw Your Schools’ Org ModelDraw Your Schools’ Org Model

Customer

(Segments)

Human Resources

Develop

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Business Office

Facilities

Faculty

Admiss

ions

The 4The 4thth Dimension of Integrated Marketing Dimension of Integrated Marketing

= Integrating the Experience= Integrating the Experience

Prospec

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Wit

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Develo

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The Customer Experience Perspective

The Egg-Carton Perspective

= Doing the Little Things Right= Doing the Little Things Right

Identify Customer InterfacesIdentify Customer Interfaces TelephonesTelephones BillsBills Physical PlantPhysical Plant

Manage the InterfacesManage the Interfaces Defining roles & expectationsDefining roles & expectations Hiring & trainingHiring & training Monitoring PerformancesMonitoring Performances

Marketing Manages Marketing Manages Customer-Enterprise InterfacesCustomer-Enterprise Interfaces

Yellow pagesYellow pages Tuition billsTuition bills Food menusFood menus Teachers’ contactsTeachers’ contacts Phone receiptPhone receipt AthleticsAthletics TransportationTransportation Pick-up queuesPick-up queues

Alumni eventsAlumni events SolicitationsSolicitations etc...etc...

And in the 2-way role of a translator!

= Part of everybody’s job= Part of everybody’s job

Some aspect of every Some aspect of every employee’s job is employee’s job is marketingmarketing

The sum total of The sum total of marketing determines marketing determines successsuccess

Scripting interfacesScripting interfaces

= Increasing Satisfaction, = Increasing Satisfaction, Reducing DissatisfactionReducing Dissatisfaction

Builds a strong Builds a strong institution/brandinstitution/brand Favorable word of mouthFavorable word of mouth

Expensive to replace a Expensive to replace a desirable customerdesirable customer FinanciallyFinancially PridePride

= Listening= Listening

Many barriers to hearingMany barriers to hearingStylized exchanges, formalities (the hour the Stylized exchanges, formalities (the hour the

Head’s door is open)Head’s door is open)Certainty, paternalism (dismissive)Certainty, paternalism (dismissive)Fear (“Will it affect my child?”)Fear (“Will it affect my child?”)

Use multiple methods for feedbackUse multiple methods for feedback

= Champions of Change, = Champions of Change, the Customers’ Advocatethe Customers’ Advocate

How many staff are needed to change a How many staff are needed to change a lightbulb??? Change?!!!!lightbulb??? Change?!!!!

Ask: Why the hell do we do it this way?Ask: Why the hell do we do it this way?

If the person wearing the marketing hat is not entirely popular, that’s a good sign.