Stamats QuickTakes
Insights into Research, Strategic Planning, and Integrated Marketing for Colleges and Universities by Dr. Robert A. Sevier, Senior Vice President at Stamats (quicktakes@stamats.com)
Vol. 6, no. 13: New Economics of Marketing
In this issue.
STAMATS SEMINARS
Strategy and Finance: Helping Colleges Thrive in Tough Times
Stamats' 3rd Annual Presidents' Institute on Integrated & Brand Marketing
Additional conference details can be found at www.stamats.com/seminars. Please check the Web site often for changes in times or locations.
ON STRATEGY: THE NEW ECONOMICS OF MARKETING
"How much does it cost?" That's the question many of us ask when evaluating a new marketing strategy. A much better question, however, is "what's the return?"
Welcome to the new marketing math.
We've been trained on "how much?" We believe intuitively that a $2.00 search piece is twice as expensive as a $1.00 search piece. But what if the $2.00 search piece was four times more effective? That's the challenge. Keeping track of marketing response rates, not merely marketing expenditures, will likely do a better job telling the whole story.
Below is a grid that contains a number
of key variables including the cost to print and mail, search size, cost of
the search package, percent who respond, number who respond, percent of respondents
who matriculate, number of matriuclants, and final cost per matriculant.
Cost to
Print/Mail |
Search Size |
Cost for
Search |
% Who Respond |
# Who Respond |
CPI |
% Respond
Matriculate |
# Matriculate |
CPM |
|
| Pkg A | $1.90 |
10,000 |
$19,000 |
8.2 |
820 |
$23.17 |
42 |
344 |
$55 |
| Pkg B | $3.80 |
7,500 |
$28,000 |
17.2 |
1290 |
$22.09 |
55 |
710 |
$40 |
As you can see, Package B costs twice as much, per unit, than Package A ($3.80 vs. $1.90). However, because it generates twice the response rate, you don't need as many. It generates a higher response rate because it has been customized for each student based on their zip code, academic interest, test score, and other variables. Because of this higher response rate, the actual number of students who respond to Package B is greater than A, even though more Package A brochures were sent. At this point, the CPI, or cost per inquiry, for each brochure is amazingly similar.
At this point, the numbers begin to diverge in favor of package A, which was initially more expensive. More of the respondents go on to matriculate from Package A than Package B. As a result, the final CPM, or cost per matriculant, is only $40 for Package B and nearly 30 percent more, $55, for Package A.
Someone who is trained to ask, "how much does it cost" would quickly settle on Package A. Someone who is trained to ask, "what's the response" would quickly see the sense behind the dollars spent on Package B.
MAXIMIZE
YOUR WEB SITE - ADDENDUM
Scott Linzey, Principal Consultant
In the last issue of QuickTakes I wrote an article titled, "Maximize Your Web Site," which contained an incomplete list of specialized industry directories. I inadvertently overlooked a few noteworthy directories, such as CollegeBoard.com, FastWeb.com, CollegeNET.com, CollegeLink.com, GradSchools.com, BusinessWeek.com, and—one of the most prominent higher education resources available—The Princeton Review (TPR).
TPR is the clear leader among higher education resource sites in terms of traffic, averaging more than 1.2 million unique visits per month. The reason TPR leads in terms of traffic is not only its student advocacy position and "edgy" reports on colleges, but also their traffic-driving partnerships with Yahoo!, AOL, MSN, and (especially) Bolt. Bolt currently gets more than 150 million page views per month, more than 1.5 million visitors per month, and has more than 6 million registered members. The reason Bolt is the most popular hangout for high school students is almost all of the content is written by members…plus they offer free e-mail, home pages, and instant messaging. If you haven't visited www.bolt.com, take a look. It will probably be a long time coming before a college posts "What Rules" vs. "What Sucks" on their site, but this kind of candor is attracting traffic and repeat visitors in droves.
I apologize for not including this information in my previous article and hope the additional insights are useful.
"Selling for Fun and Profit". That's the title of a fascinating article in the April 2003 issue of University Business. The subhead, "In tough times, the ‘customer-focused' campus bookstore is becoming one heckuva revenue generator" tells the rest of the story. The article succinctly covers the transition of bookstores from basement dwellers to major cash generators in a few short years. The central theme of the article—one near and dear to our marketing hearts—is no surprise: keep your eyes focused on customer needs and expectations. Says one consultant, "A successful bookstore retailer has to create a shopping experience customers will love." In other words, do the research on customer needs and wants, plan, and execute.
The article cites a number of bookstores including Bowling Green University, University of Colorado-Boulder, University of Cincinnati, and UC-Santa Barbara. I would also add one of my favorite all-time bookstores: Calvin College.
YOUR
RECRUITING E-MAILS COULD BLACKLIST ALL OF YOUR SCHOOL'S E-MAIL
Scott Hall, Interactive Media Director
Using e-mail to help your recruiting is a great idea, but it could also mean your boss can't e-mail his friends or colleagues. Here is what you should know about being "blacklisted."
A number of colleges have already been through blacklisting. It happens like this: one day, people on the college e-mail system send messages to friends or colleagues, only to find the message doesn't arrive. They try again, still no message. No matter what they try, the message doesn't show up.
The school's e-mail administrator investigates. He or she finds the recipient's mail provider has blacklisted the school's e-mail server, saying that the server is being used to send spam.
Frequently, it's the school's newsletters or recruiting messages that caused the blacklisting. Here's an example of how it can happen. Let's say your newsletter has 2,000 subscribers from AOL. You click "send" and your server fires 2,000 messages to AOL in only a couple of minutes. The AOL anti-spam systems notice the spike and start pouring over your messages.
If the anti-spam software recognizes that your message is a newsletter, you're OK. But if the system can't be sure, your messages will probably go into a spam/trash folder and never be read. Even worse, the system can tag you as a spammer and block ALL the messages from your e-mail server.
Here are some tips for staying off the blacklist.
Here's a final reason to pay attention to this: AOL, Microsoft, Yahoo, and other companies have just formed an anti-spam alliance. (See: http://media.aoltimewarner.com/media/press_view.cfm?release_num=55253147 for details.) Once that gets rolling, getting blocked on one system could cause you to get your school cut off from all the major e-mail providers at once.
CAMPS, SYMPOSIA, SPECIAL EVENTS—GETTING EARLY TEENS ON CAMPUS
Once every couple of years or so we compile and then publish a list of the best new ideas for getting early teens on your campus. Beyond sports camps, what are you doing to get those middle schoolers on your campus? If you've got an idea, and don't mind sharing it with the world, pass it on to Brandy (brandy.huseman@stamats.com) and we will round them up and put them in a future issue of QuickTakes. Thanks. Bob
AUTHENTIC
LEADERSHIP AND YOUR BRAND
Eric Sickler, Principal Consultant
& Melissa Erbes, Associate Writer
Presidents and marketing officers frequently suggest to us that their schools have no brands. The brutal truth is, college and university brands exist but only in the minds of individual constituents, not on the pages of a marketing planning document. So rather than being "brandless," most schools really suffer from a multitude of inconsistent brands. Why? Because (1) there is too little functional consensus among internal stakeholders about what the institutional brand should be, and (2) there is woefully little integration among campus marketing practitioners due largely to underdeveloped plans and overdeveloped "turf" sensitivities.
To help colleges and universities find clarity for their brands, we have developed a series of practical initiatives that equip campus-based marketing leaders with the data and the confidence necessary to make enlightened brand marketing decisions.
We're not talking about "creating" brands for schools here. Rather, we're talking about considering a college's unique heritage, mission, and vision in light of it's key audiences' prevailing perceptions, all in an effort to discover the intersection of thought and emotion that already is the school's brand.
If you were to study any number of flailing colleges, universities, businesses, or other organizations, you might notice two things missing—a point of view and a process designed to breathe life into that point of view. At Stamats, our point of view is that a brand is a promise, and we're fully committed to it. Just look at our tagline. And if you visit our campus, you'll witness a smorgasbord of processes that bring our point of view to life for our clients, and for each other, 24/7.
In a March 2003 article from the Boston Business Journal, Jay Sidhu reviews the five components of emotional-based authentic leadership: self-awareness, social skill, self-regulation, empathy, and values. Not surprisingly, these components parallel the brand clarification process we have dubbed The Stamats Way.
We begin by helping our clients develop an acute sense of self-awareness, including an honest assessment of its strengths, weaknesses, values, and driving forces. We also look at its impact on prospective and current students, parents, alumni, and the community. It's essential to get everyone on campus—from the top of the organizational chart to the bottom—on the same page, able and eager to relay a consistent message about their school.
No matter how you slice it, the most prudent way to launch any institutional marketing planning process involves an accurate assessment of the emotional makeup of your target audiences, be they internal or external.
Throughout any marketing planning initiative, it is evident that for communication to be effective, it must be created by process and monitored audience-by-audience for relevance. Jay Sidhu sums this up best with a quote from an article by Peter Drucker. "Communication is in the mind of the recipient: You're just making noise if the other person doesn't hear you."
If you would like to discuss this article further, please contact Eric at eric.sickler@stamats.com
BUILDING
A BRAND THAT MATTERS
Bob Sevier has published a new book, Building a Brand That Matters: Helping Colleges and Universities Capitalize on the Four Essentials of a Block-Buster Brand. The book covers such topics as
Information on the book, and its companion volume, Thinking Outside the Box, is available at the Strategy Publishing Web site: www.strategypublishing.com.
NEW CLIENTS
Stamats would like to welcome the following new clients:
STAMATS SEMINAR SCHEDULE FOR 2003
Strategy and Finance: Helping Colleges Thrive in Tough Times
Stamats' 3rd Annual President's Institute on Integrated & Brand Marketing
Additional conference details can be found at www.stamats.com/seminars. Please check the Web site often for changes in times or locations.
Senior Consultant, Marketing
and Public Relations
Stamats
Stamats Communications, one of the nation's most experienced higher education
research, marketing, and consulting companies, is seeking an individual to provide
marketing, brand marketing, and public relations counsel and planning to colleges
and universities. This senior level, sales-support position requires five years
of experience in higher education and significant management experience. Extensive
travel, exceptional writing and presentation skills, and a high degree of computer
literacy, are required. The ideal candidate should be an aggressive self-starter
and be willing to relocate to Cedar Rapids, IA. Please send a cover letter,
resume, portfolio, salary history, and references to: Jo Ann Binzen, at Stamats
(joann.binzen@stamats.com). -
615 Fifth Street SE, Cedar Rapids, IA 52406.
Registrar
University of Alaska Fairbanks
Experienced and effective senior-level leadership for the Office of the Registrar
sought.
Duties include development of student-centered and effective registration policies
and procedures, development of the master course schedule each semester, maintenance
of the academic portion of the university catalog, development of the Academic
Calendar, scheduling of instructional facilities, and ability to communicate
these goals effectively to a diverse audience. Specific qualifications and an
applicant form can be found at http://www.uaf.edu/uafhr/Employment/Job0703-283.html.
To apply, submit a signed UA Applicant Form, a letter of interest, resume, and
names of and contact information for five professional references to: UAF Human
Resources, Attn: Claudia Clark, PO Box 757860, Fairbanks, Alaska 99775-7860.
UAF is an equal employment opportunity/affirmative action employer and educational
institution.
Director of Admissions
Midwestern University
Midwestern University in Downers Grove, IL, is recruiting a Director of Admissions.
The Director is responsible for all facets of the admissions process for the
Chicago College of Osteopathic Medicine, Chicago College of Pharmacy, and College
of Health Sciences. This individual works directly with the upper-level administrative
and academic officers to develop, implement, and manage all admissions activities
on the Downers Grove Campus. Bachelor's degree is required; master's
degree is preferred. Minimum of four to 10 years of admissions experience, preferably
in graduate programs, or equivalent combination of education and experience.
Management experience is required; marketing knowledge is a plus. A competitive
salary and benefits package is offered. If you are interested, please forward
your resume to the Office of Human Resources, 555 31st St, Downers Grove, IL
60515; fax 630/515-7207.
Director of Development
and Alumni Relations
Midwestern University
Midwestern University is seeking a professional to lead its development and
alumni relations programs at its Downers Grove, IL, campus. This position will
direct a comprehensive fund-raising and alumni program, placing special emphasis
on a major gifts initiative targeting alumni, volunteer leaders, and other friends.
The position will report directly to the Vice President for University Relations
and will manage a full-time staff of program officers and administrative support
personnel. Qualified candidates will have a minimum of five years of progressively
responsible fundraising experience, preferably in higher education. Salary is
competitive and includes a generous benefits package. If you are interested,
please forward your resume to the Office of Human Resources, 555 31st St, Downers
Grove, IL 60515; fax 630/515-7207.
Marketing Assistant
Ave Maria College
Ave Maria College seeks a full-time Marketing Assistant. The position reports
to the VP for Institutional Advancement and supports the College's marketing,
communications and direct-mail fundraising efforts. Bachelor's degree
in business, communications or related field and three years' experience
in marketing, fundraising, or communications. Experience with outside vendors
and customer database helpful. Strong written and oral communication skills,
proficiency in Microsoft Office. Support College's mission as Catholic
liberal arts college. Mail, fax or e-mail cover letter and resume to: David
J. Kelley; VP for Institutional Advancement, Ave Maria College, 300 West Forest.
Ypsilanti, MI 48197, fax 734.337.4140. dkelley@avemaria.edu.
Public Relations Coordinator
Ave Maria College
Ave Maria College seeks a full-time Public Relations Coordinator to gather campus
news, write and edit releases for local and national media, fundraising campaign
literature, newsletters and brochures to promote Ave Maria College. Bachelor's
degree in communications field required, with two years' experience in
a marketing, fundraising, public relations or publishing. Outstanding written
and oral communication skills, proficiency in MS Office, adept and juggling
multiple projects simultaneously. Support mission of Catholic liberal arts college.
Mail, fax or e-mail cover letter and resume to: Jay McNally, Director of Public
Relations, Ave Maria College, 300 West Forest, Ypsilanti, MI 48197, Fax 734.337.4140,
jay.mcnally@avemaria.edu.
Admissions Counselor AP-5,
Senior Admissions Counselor AP-6, or Assistant Director-Admissions AP-7
Northern Michigan University
Three full-time positions; level based upon applicant's qualifications; 10-
or 12-month status to be determined. Positions based in the Chicago area, Southwest
Michigan (Grand Rapids/Kalamazoo), and Southeast Michigan (Detroit/Ann Arbor).
Travel, evening, and weekend work may be required. Job opening #APUAW03-006/007/008.
Annual salary rate range: $30,575-$39,443 (AP-5); $33,634-$43,386 (AP-6); $36,998-$47,727
(AP-7); to be prorated for 10-month appointments. Screening will begin immediately
and continue until the position is filled. Application requirements: submit
application, resume and names, e-mail addresses and phone numbers of three professional
references. For more information go to: http://www.nmu.edu/humanres/Employment/Administrative.htm.
Director of Admission
Fairfield University
Fairfield University, a small comprehensive, independent Catholic and Jesuit
institution, seeks a director of admission to begin this fall. Fairfield University
is consistently ranked among the top five small comprehensive universities in
the Northeast. Visit www.fairfield.edu for more information. The Director of
Undergraduate Admission oversees 18 professional and support staff members and
reports to the Associate Academic Vice President for Enrollment Management.
The Director will be responsible for implementing a strategic undergraduate
recruitment and admission plan, while managing the daily operations of the admission
office. Seeking excellent leadership skills, an understanding of enrollment
management and a willingness to advance the mission of a Jesuit and Catholic
institution. Strong skills in communication, data analysis and technology required.
Knowledge of SCT Banner a plus. Lahti Search Consultants is assisting with this
search. Please send a letter of application and resume by email to Terry Lahti
at terry@lahtisearch.com.
(This is a little off our primary
focus, but still an important position opening.)
Senior Vice President of Brand/Marketing National 4-H Council
Chevy Chase, MD
National 4-H Council seeks a Senior Vice President of Brand/Marketing to fill
a newly created position that will manage the major brand repositioning strategy
for the 4-H movement. Working with the senior leadership of the 4-H movement
and reporting to Council's President and CEO, the Senior Vice President
will complete the development and lead the implementation of a significant program
of reinvention and renewal for this century old university based youth development
program. The ideal candidate will bring:
Candidates should hold at least a Bachelor's degree (preferably, an advanced degree) and be willing to invest time and energy learning the issues and the interests of 4-H, understanding its constituencies, and embracing its values and goals. To apply, please send your resume to: E-mail: 2654.N4HC@imsearch.com. Electronic submission of materials is strongly encouraged.
If you have a short position description (100 words or less) you would like posted, please forward it on to brandy.huseman@stamats.com. There is no charge for this service. Job listings available online at Higher Educations Careers.
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Stamats QuickTakes is published by Stamats and is distributed to our clients and colleagues in higher education at no charge. Contents (c) 2003 by Stamats. Please feel free to forward copies of Stamats QuickTakes in its entirety to colleagues. Visit QuickTakes for past issues. To subscribe, reply to this e-mail, send your request to quicktakes@stamats.com, or visit QuickTakes.
ABOUT STAMATS
Every year, more than 100 colleges and universities nationwide rely upon Stamats marketing and communications programs to help them keep their promises. Stamats services include research, consulting, publications, interactive media, search solutions, and advertising.
Stamats. Promises kept.