SMAI 2013 - Marketing Philosophy

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"Marketing" is regularly used within independent schools merely as a synonym for communications or selling. But marketing is mindset. As well as a set strategies --of which brand, communications, selling tactics comprise the set known as Promotion strategies.

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SMAI 2013 - Marketing Philosophy

  1. 1. Marketing 202: Version 18.0 Core Themes of Marketing Philosophy and Practice
  2. 2. “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 Bassett President, National Association of Independent Schools, and Marketing Institute alumnus, Class of 1998
  3. 3. Perceptions of Marketing     Why “Marketing & Advancement” Institute
  4. 4. What Marketing is NOT  Advertising  Sales  branding The aim of marketing is to make selling superfluous - Peter Drucker
  5. 5. Mission, Marketing, and Margin  For Profits  Non-Profits  Buyer driven  Mission driven  Mission sensitive  Buyer sensitive  Money earned must  Money earned must equal or exceed money spent equal or exceed money 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.
  6. 6. Selected Other Barriers to Adopting Marketing  Terminology (e.g. “brand”, enrollment management, cultivation, parent relations, product…)  Non-profits lag in adopting proven management practices: We look to the nation’s colleges as sources of innovation…but not for management models.  Belief in the Magic Bullet: “We need the right message.” “Oh, to be mentioned in the Times.”  Typical admin structure fractures: “To the little boy with a hammer, everything needs to be nailed.”  And on…and on…
  7. 7. Marketing We Are Talking about: Aka  MBA Marketing  Contemporary Marketing  Enterprise Marketing  Integrated Marketing  Holistic Marketing  Strategic Marketing Management  Marketing with a capital ‘M’  Brand Management, but only with a capital ‘B’
  8. 8. Contemporary Definitions Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. -American Marketing Association Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value – Kotler and Keller
  9. 9. 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
  10. 10. = Customers  What do different organizations call “customers”?  Name an organization that does not have a customer  What is the common thread?
  11. 11. = Being Customer Oriented  Thinking outside in  Value the customer’s point-of-view “Without customers, you don’t have a business”
  12. 12. =Exchange of things valued ALUMNI<------------------>SCHOOL PARENTS<------------------>SCHOOL What of value is exchanged in each case? In the healthy buyer-seller relationship, each side benefits equally.
  13. 13. = Segments 1. Customer e.g.,  Admissions (the “funnel”)      Inquiries Applicants and Non-Applicants Accepts and Denied Matriculants and Non- Development (the “hierarchy”)     Living alumni Reachable alumni Levels of engagement Levels of giving
  14. 14. Segments of Interest (cont’d) 2. Internal market “The Market” is not monolithic. Many segments (aka constituencies) 3. Referral market contribute to  Feeder schools, Education consultants success, or failure. Each may warrant a plan, certainly a set 4. Influence market of objectives and  actions to achieve Accreditors, Competitors, Opinion them. leaders, Advisors 5. Suppliers
  15. 15. = Alert to Alternatives  Markets change (Surprise!!)  Who is the competition in the 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.
  16. 16. = A Disciplined Process as Commonly Observed : ANALYSIS ? PLANNING Fire! Fire! Fire! If you don’t remember why it is done the way it is, chances are there is now a better way!!!! EXECUTION
  17. 17. Strategic Marketing Management ANALYSIS EVALUATION PLANNING Ready! Aim! Fire! Assess! EXECUTION “Without a solid foundation of information about their markets, managers are guessing, not managing.”
  18. 18. = A Reality Check  For  Visions,  Mission Statements,  Wishes,  and 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?”
  19. 19. = Managing Reality  Reality = Customers’ Perceptions  How do we want to be perceived?  How does one fix a negative perception? Take an honest look---is it grounded in reality?  If yes, then fix the product/program.  If no, then fix the perception.
  20. 20. = Long-term interest in customer  Selection of only those we can serve  Retention and satisfaction (e.g. Enrollment management model)  Build affinity  Lifetime value concept  Tuition ($20,000 * 4) + Lifetime donations or, just sell snake oil!
  21. 21. Draw Your Schools’ Org Model
  22. 22. H um an A dm iss io n s Faculty (Segments) Fa c ili tie s O Business es ou rc e s Development Customer R ffice
  23. 23. oed Sil = Integrating the Experience The 4th Dimension of Integrated Marketing Development Within Grade-toGrade Grade Within Grade Admissions Deans The Customer Experience Perspective Bequest Prospect The Egg-Carton Perspective
  24. 24. = Doing the Little Things Right  Identify Customer Interfaces  Telephones  Bills  Physical Plant  Manage the Interfaces  Defining roles & expectations  Hiring & training  Monitoring Performances
  25. 25. Marketing Manages Customer-Enterprise Interfaces  Yellow pages   Tuition bills   Food menus   Teachers’ contacts   Phone receipt   Athletics   Transportation   Pick-up queues Alumni events Solicitations  And in the 2-way role of a translator!  etc...
  26. 26. = Part of everybody’s job  Some aspect of every employee’s job is marketing  The sum total of marketing determines success  Scripting interfaces
  27. 27. = Increasing Satisfaction, Reducing Dissatisfaction  Builds a strong institution/brand  Favorable word of mouth  Expensive to replace a desirable customer  Financially  Pride
  28. 28. = Listening  Many barriers to hearing  Stylized exchanges, formalities (the hour the Head’s door is open)  Certainty, paternalism (dismissive)  Fear (“Will it affect my child?”) Use multiple methods for feedback
  29. 29. = Champions of Change, the Customers’ Advocate  How many staff are needed to change a lightbulb??? Change?!!!!  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.

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