Columbia Teachers College - Klingenstein Marketing Course July 10-11 2014

1. 60 Minute School Marketing
Step 1: Goals
Step 2: The Market
Step 3: What I Wish Leadership Knew

2. 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.

3. Step 2: “Gotta Know the Territory”
5 Drivers of IS Demand
Demographics
Parent Attitudes and
Beliefs
Government Policy
Competition
Income & Wealth
Cf. “Managing Value: The Marketing
Perspective on Affordability and
Demand,” Affordability and Demand,
Jeffery T. Wack, NAIS 2009

4. – 1-3% growth in 80s and 90s
• Births peaked in 1991
• What’s happening in your neighborhood?
Demographics
3500
3600
3700
3800
3900
4000
4100
4200
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
US 9th Graders

5. Which markets are growing vs shrinking?
Non- “white”
Where it is warmer
Outer 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)

6. 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

7. Income Trends of the Probable Full Need, Partial
Pay, and Full Pay Markets
From NY Times,
July 2013

8. 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

9. $0
$50
$100
$150
$200
$250
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
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

10. $0
$5
$10
$15
$20
$25
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Sources: NAIS
StatsOnline and US
Census Income
Reports
Meanwhile, list
tuitions kept on
rising,
outpacing
incomes of
even the 5-
percenters
Jeffery T. Wack, PhD
http://www.census.gov/hhes/www/income/data/historical/families/index.html
History of Tuition of 9th Grade Day
Vs 80% Increase!

11. 0
10
20
30
40
50
60
70
80
90
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Tuition
95th
Percentil
e Income
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.

12. – 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

13. Public Assigned
76%
More Recently
• Charters – 1.4 million
• Magnets – 4 million
• Home Schooling – 1.5 million
• Proprietaries/For-profits
Public
Choice
14%
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?

14. 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

15. • 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

16. 0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2007
2011
SAT Test Takers
1972-2011
Year
Enroll in college right after high school:
1975=51% 2008=69% Source: National
Science Board report 2008

17. 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

18. 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

19. Applications to Yale
0
5000
10000
15000
20000
25000
30000
35000
1975 1980 1985 1990 1995 2000 2005 2007 2009 2011 2013
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.

20. 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.

21. School Success or Failure is a Joint Function of
the Qualities of a School AND the Health of Its Market
Assets and Liabilities of the Market
For Admissions:
For Fundraising:
AssetsandLiabilitiesoftheSchool
ForAdmission:
ForFundraising:
Weak ------------------------- Strong
Weak--------------------Strong

22. 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.

23. I wish they knew:
Marketing is not
marketing

24. 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?

25. 25
• 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

26. 26
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.

27. 27
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. 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
• etc
Reminding
• Retention
• Loyalty

29. 29
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. 30
Faciliti
Development
BusinessOffice
I wish they knew: Marketing is a Part of
Everyone’s Job
Parents
Others
Others

31. 31
I wish they knew:
How Important Customer-Centric Design Is
Inquiries, Applicants Colleges
1. Parent/board WOM
2. School fairs
3. Visit website
4. Reply to inquiry
5. Post inquiry prompts
6. Tour, interview
7. Reply to application
8. Accepts and Denies
9. Second Visit day
10. 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

32. 32
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

33. • 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: