columbia klingenstein masters program july 2014
DESCRIPTION
Columbia Teachers College - Klingenstein Marketing Course July 10-11 2014TRANSCRIPT
60 Minute School Marketing
Step 1: GoalsStep 2: The Market
Step 3: What I Wish Leadership Knew
Step 1: Schools’ Core Advancement (aka Marketing) Objectives
• Reputation• Recruiting• Retention• Relationships• Revenues
The 5Rs of Marketing in Education
…objectives that are primary drivers of thrive-ability.
Step 2: “Gotta Know the Territory”5 Drivers of IS Demand
Demographics
Parent Attitudes and Beliefs
Government Policy
Competition
Income & WealthCf. “Managing Value: The Marketing Perspective on Affordability and Demand,” Affordability and Demand, Jeffery T. Wack, NAIS 2009
– 1-3% growth in 80s and 90s• Births peaked in 1991• What’s happening in your neighborhood?
Demographics
US 9th Graders
Which markets are growing vs shrinking?Non- “white”Where it is warmerOuter margins of metro areas, urban core
3.7
3.8
3.9
4
4.1
4.2
4.3
4.4
2005 2006 2007 2008 2009 2010 2011
US Births (millions)
US Births (millions)
The 1%-er Comeback!!
• Assets, a major contributor to incomes and wealth of the best-off, have rebounded
• Million dollar home sales up
• Prada is adding stores
• Rate of sales of luxury cars is double that of Fords, Mazdas, Jeeps
• Record prices for art
• Return of 9-figure gifts
Income & Wealth
Income Trends of the Probable Full Need, Partial Pay, and Full Pay Markets
From NY Times, July 2013
Day School: How much does it cost?
Family of 4, no COLA, no net worth/assets. (SSS Data)
“Full Pay”Income
“Full Pay”Income
Grade Tuition 1 Child 2 Children
6th $18,459 $130,473 $193,270
8th $19,340 $133,538 $199,430
9th $22,115 $142,807 $218,837
12th $21,695 $141,402 $215,900
Tuition = Medians for 2010-11; Source: NAIS National Tables
Chart excerpted from 2012 SSATB presentation
Income Trends of the 95th Percentile
Family
Sources: US Census Income Reports
35% Increase ($155,020 to $210,000)
Note the inflection in income growth in 2007, to no growth 2008-10, to %2 growth in 2011 and 2012.
Meanwhile, what did tuitions do?
http://www.census.gov/hhes/www/income/data/historical/families/index.html
Sources: NAIS StatsOnline and US Census Income Reports
Meanwhile, list tuitions kept on rising, outpacing incomes of even the 5-percenters
Jeffery T. Wack, PhDhttp://www.census.gov/hhes/www/income/data/historical/families/index.html
History of Tuition of 9th Grade Day
Vs 80% Increase!
The 95th Percentile Family is No Longer Full-Pay …Neither is the 96th
or 97th
(Rate of Growth in %)
The divergent rates of growth, plus fewer kids, explain why:
1) More of those families already at the school qualify for FA,
2) There are fewer full-pay families for the Admissions Office to find
Attribution: Jeffery T. Wack, Ph.D.
– No Child Left Behind, Common Core, next flavor • Public’s perceptions of public largely unchanged (Gallup/IU poll)
– Public schools dissatisfiers shake parent confidence• Reduced programs, larger classes, redistricting etc
– Income tax increases directed at IS parent and donor core
– Education loan availability, controls
– Public college tuition inflation
Government Policy
Public Assigned76%
More Recently• Charters – 1.4 million
• Magnets – 4 million
• Home Schooling – 1.5 million
• Proprietaries/For-profits
Public Choice14%
Private Religious
8%
Independent
2% (~570,000)
THEN • Neighborhood Public
• Parochial
• Private independent
Competition
What will be the impact of local budget battles on charters, magnets? Will mid-priced for-profits and religious schools grow?
Elasticity of Interest in Independent Schools at Two Price Levels by Family Income
25%
18%
29%
43%
4%6%8%
20%
0%
10%
20%
30%
40%
50%
$18,000 $10,000
Less than $100K
$100K-$150K
$150K-$20K
More than $200K
• Less secure
• Less confident their child can achieve what parents have
• Parents are education system “sophisticates”
• Believe a good education (and parent involvement) is critical to success
• Getting into a great college solves everything.
Uncertainty Fear Strive for Control
Parent Attitudes and Beliefs
SAT Test Takers 1972-2011
YearEnroll in college right after high school: 1975=51% 2008=69% Source: National Science Board report 2008
College Common App Prompts More Applications per Student, Fueling
Perception of Scarcity
SOURCE: HERI at UCLA College Freshman Survey
Average # apps filed:
1997=2.9
2012=3.7
1997:
1,100,000 SAT takers x 2.9 Apps =
3.2 Million Applications
2013:
1,660,000 SAT takers x 3.7 Apps =
6.1 Million Applications!
Why Parents, Seniors (and College Counselors) Have Gone Crazy:
Nearly Double the College Apps Over 16 Years
Applications to Yale
There has been very little growth in recent decades in the number of Ivy League freshman spaces. A benefit? This has enabled other colleges to become more selective, and to upgrade their student and faculty quality.
What’s the Net-net on the Market Environment?
Demographics
Parent Attitudes and Beliefs
Government Policy
Competition
Income & Wealth
Every school, and every school’s market, differs. So in marketing, rarely does one solution fits all.
School Success or Failure is a Joint Function ofthe Qualities of a School AND the Health of Its Market
Assets and Liabilities of the MarketFor Admissions:
For Fundraising:
Ass
ets
and
Lia
bili
ties
of
the
Sch
ool
For A
dmis
sion
:
For
Fun
drai
sing
:
Weak ------------------------- Strong
Wea
k--
----
----
----
----
--
Stro
ng
Step 3: I Wish Schools’ Leadership Teams and Boards Knew…
How to increase the birth rate ro move the school to where kids are; reduce the appeal of public schools; eliminate competitors; boost family income and wealth;
produce more moms and dads who view education as the solution to their worries.
But, schools can’t control these market drivers of IS demand.
I wish they knew:
Marketing is notmarketing
24
Sample Marketing Questions
• Is the market growing?• What are competitors doing?• How can we stand out?• Are program and pronouncements in line?• How can we boost inquiries and yield?• What is the impact of a common app?• Can we package these disparate programs?
• What factors predict choice?• Offer merit scholarships?• How can we better use parents and alumni?• How can we attract teaching talent?• How can the program be made stronger?• How should we organize for this new generation of parents?
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• How can we broaden faculty understanding of their roles?
• What are customers saying about the school?
• Is our tough grading hurting us with colleges?
• Are families pleased with the College Counseling?
• Do faculty know how to write recommendations?
• Should Development have its own communications office?
• What is the message for an event?
• What characteristics of students predict giving as alumni?
• What programs are attractive to alumni?
• How is the website being used?
• What is our image in the community? Among feeder school? Consultants?
• Etcetera, etcetra, etcetra
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I wish they knew:To Coordinate the Factors that Shape Desirability
Price
Place/ Access/Policies
Product/Program
DEMAND
Promotion/ Communications
The 4Ps (+1) of The Marketing Mix
People
Demand is determined by how the offer to the market is configured and delivered.
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Perceived Benefits Perceived Costs
The higher the perceived value,
the higher the probability of purchase.
Value =
I wish they knew:Perceived Value Drives Buying/Giving
28
I wish they knew: Marketing Causes Better Processes to Support the
Longitudinal Customer Relationship
Attracting
• Mission-consistent
• Image
• Promotion
• Program
• Appeals
Delivering•
Satisfaction/value
• etcRemindi
ng• Retention
• Loyalty
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ANALYSIS
EXECUTION
PLANNING
•Demographics
•Statistics
•Research
•Brochure
•Web
•Scripts
•Objectives
•Choices
•Design
Assess! The Market
I wish they knew: Strategic Planning that Does not Begin with
Marketing is NOT Strategic
30
FacilitiAlu
mni
Personnel/HR
Develop
men
tB
usin
ess
Off
ice
Facilities Faculty
Admiss
ions
I wish they knew: Marketing is a Part of Everyone’s Job
Colleges A
gents
Parents
Others
Others
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I wish they knew: How Important Customer-Centric Design Is
Inquiries, Applicants Colleges
1. Parent/board WOM2. School fairs3. Visit website4. Reply to inquiry5. Post inquiry prompts6. Tour, interview7. Reply to application8. Accepts and Denies9. Second Visit day10.Post-accept recruiting
1. Visits to school
2. Phone contacts
3. School profile
4. Student’s application
5. Recommendations
6. Student’s interviews
7. College fairs
8. Feedback re alumni performance
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Development: Annual Fund
Parents Association: Fundraiser
Business Office: Tuition Payment
Athletics: Team uniform
Communications: Bulletin Subscription
Admissions: Volunteer Time
Who’s asking customers for what, and when?
I wish they knew: Marketing strives to overcome
schools’ vertically-siloed organizational structures
• How to design marketing positions, and hire• What works at the trustee’s Fortune 500 is
irrelevant to a school…and vice versa• Magic bullets are not magic• Etc• Etc• About the 19th Strategic Marketing & Advancement
Institute, November 18-20, Charleston www.marketingindependentschools.com
I wish they knew: