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. 14: More Integrated Than Marketing
In this issue.
ON STRATEGY: MORE INTEGRATED THAN MARKETING
As I help colleges and universities develop integrated marketing strategies, I have begun asking them to write the phrase "integrated marketing" on a piece of paper. I then ask them to pick which of the two words—integrated or marketing—is most important to them. A surprising number pick "marketing." In actuality, the correct choice is "integrated."
Over the past couple of years, I've come to discover that successful integrated marketing efforts depend a great deal on how well the plan and its activities are integrated across campus. In other words, is everyone—throughout their day-to-day activities—working toward the same goal?
To help drive this point home, I
stress that a good integrated marketing plan with shared and agreed-upon goals
and pooled resources is like a well-coordinated racing shell with the coxswain
coordinating the efforts of the eight rowers. Everyone is pulling in sync to
the cadence called out by the coxswain. As a result, the shell moves swiftly
through the water toward the goal.
I stress that the coxswain, and certainly the other rowers, will not tolerate a rower who is out of cadence, has quit rowing, or is constantly complaining that they shouldn't be rowing at all. It is difficult enough to row against the water. It is impossible to row against rowers who are out of sync.
For colleges, this means that the efforts of academics, recruiting, advancement, facilities, HR, finance, IT, and student development must all be coordinated within the larger integrated marketing plan, or if you prefer, the strategic plan. They must all work toward the common, agreed upon goal of executing the vision.
And like the rowers, you cannot allow
discord. Everyone must listen and follow the coxswain.
Let's try this again. In the last issue of QuickTakes I introduced "the new economics of marketing." Unfortunately, somewhere between my head and my fingers I transposed a couple of numbers that made the illustration all but impossible to fathom. So, with a nod to a couple of sharp-eyed readers, I offer that article again. Here goes…
"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 matriculants, 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 the package that was initially more expensive, Package B. More of the respondents go on to matriculate from Package B than Package A. 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.
Hopefully this makes a bit more sense.
YOU
WORKED HARD TO GET THEM—DON'T LOSE THEM!
Scott Linzey, Principal Consultant
As we all know, recruiting the class is only part of the battle. Once the new students arrive on campus, the challenge is reshaped as it becomes time to deliver on your promises. It's true, differentiating your institution from the competition in a compelling, believable, and accurate manner can at times be a daunting charge. And one that is the primary responsibility of the admissions and marketing staffs. But once a class is enrolled, it becomes an institution-wide responsibility to live the brand that "sold" those students on choosing your school in the first place.
Effective management and conscientious tracking of student retention rates and persistence toward graduation are critical elements of a successful institution. Those schools who keep their promises will be rewarded with higher retention and graduation rates and various resulting and related accolades and positive marks. In order to be successful, it's imperative that you understand students' motivations for persisting or leaving your institution, and the actions you can take to encourage the former. Do you know the issues on which your school meets expectations and those where it falls below? Do you know how you can identify areas that require improvement and areas that are positions of strength?
According to the Consortium for Student Retention Data Exchange (CSRDE), the average first-year retention rate is 79.8% and the average six-year graduation rate is 54.1%. These percentages vary moderately depending on type of institution (four-year public, four-year private, two-year public), level of selectivity in admissions, and by student cohort. How does your data stack-up against those numbers?
Meanwhile we know from The College Board (March 2003) that first generation college students; students who did not enroll in a rigorous high school curriculum (a rigorous curriculum is minimally defined as four years each of English and mathematics (including precalculus), three years of science (including biology, chemistry, and physics), three years of social studies, and four years of foreign language.); and students who did not take at least one AP examination all run a substantially higher risk (15% or more in all three cases) of attrition than do their counter parts. But let's dig a bit deeper.
In order to develop an effective retention program, your school must determine the most important matrices for success on your campus and track those as predictors of retention success vigilantly. A good way to do this is to execute a student satisfaction survey and institutional priorities audit annually. After collecting these two groups of data, a gap analysis can be performed which will demonstrate areas where student expectations are being met by the institution and where you're greatly missing the mark. That information can be a powerful tool to ensure that your recruiting messages are consistent with the reality that is life on your campus.
Many institutions have become quite adroit at promotion. The problem is many are not promoting the reality of who they really are. Students then arrive on campus with certain expectations only to be disappointed. There is an inextricable link between your school's ability to clearly communicate its brand in the recruiting process and its ability to then live that brand on a daily basis. Retention and graduation rates are accurate statistical indicators of that link between expectation and reality.
If you'd like to discuss ways to improve retention on your campus or other issues, contact Scott at 410-356-6140 or scott.linzey@stamats.com.
UPDATE ON TOP 10 MARKETING BOOKS
For those of you who are interested, I've revised my list of top 10 marketing books. If you don't have a lot of money to buy books, or time to read, here's the handful that I believe matter most. As you read these, you will likely notice that I stay away from technological fads. I am more interested in the enduring principles.
Fall board meetings are just around the corner. If you would like someone from Stamats to present on:
Please drop Suzanne (suzanne.schloss@stamats.com) an e-mail and she will give you a call to determine your exact needs.
NEW CLIENTS
Stamats would like to welcome the following new clients:
STAMATS SEMINAR SCHEDULE FOR 2003
Mastering the Integrated Funnel
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.
Principal Consultant
Stamats
Stamats Communications, Inc., is looking for a principal consultant to sell
and manage communications, research, planning, and consulting projects for colleges
and universities. This person should have at least 10 years of higher education
marketing experience. Individuals who have successfully sold and managed these
kinds of projects are of special interest. A graduate degree is preferred. This
position requires someone with exceptional sales, phone, interpersonal, writing,
and group communication skills, and the ability to juggle multiple projects
and meet deadlines. Compensation will include a base salary, commissions, and
a bonus based on sales, profitability, and client retention and satisfaction.
This person will work out of Stamats Cambridge office. For more information
on Stamats, please check our Web site at: www.stamats.com.
To submit a confidential resume or to request further information on this position,
please contact: Jo Ann Binzen, Stamats Communications, Inc., PO Box 1888, Cedar
Rapids, IA 52406. joann.binzen@stamats.com.
EOE
Manager of Graduate Admissions
and Recruitment
MGH Institute of Health Professions
The Office of Student Affairs seeks candidates for the Manager of Graduate Admissions
and Recruitment position. Responsibilities include, but are not limited to,
the recruitment and advisement of prospective graduate students, management
of admissions operations, maintaining contact with applicants, managing applicant
files, and collaborating with faculty and staff on admissions activities. We
seek candidates who demonstrate strong database management skills, good judgment,
energy, creativity and the ability to interact effectively with a wide range
of people. An ease of comfort in speaking before groups is important. Successful
candidate will possess: Bachelor's degree (Master's preferred) and
4 or more years of work experience in higher education, preferably in admissions
or student services; ability to work independently or with a team as necessary;
strong organization skills, attention to detail and accuracy; excellent written
and oral communication skills; and proficiency with Microsoft Word, Excel, PowerPoint,
and database management. Send cover letter, salary requirements and resume to:
Rebecca L. Cadima, Human Resources Manager, MGH Institute of Health Professions,
Charlestown Navy Yard, 36 First Avenue, Boston, MA 02129-4557. Fax - 617-724-6321.
E-mail: rcadima@mghihp.edu. www.mghihp.edu.
We are an equal opportunity employer committed to workforce diversity. EOE/AA
Communications Manager
Michigan State University
Michigan State University, a research-intensive land grant university with a
unique commitment to advancing knowledge and transforming lives, seeks a Communications
Manager to begin this fall. The Communications Manager is responsible for developing
a comprehensive communications program to advance the mission and strategic
priorities of the College of Human Medicine at Michigan State University, emphasizing
both academic and clinical program objectives. Reporting to the Assistant Vice
President for University Relations, the individual in this position is a member
of the University Relations staff who works with the MSU College of Human Medicine.
Seeking candidates with at least a bachelor's degree, at least five years
of professional communications and marketing experience, and a proven record
of accomplishment in higher education, health care, or related clinical practice
marketing and public relations is preferred, along with knowledge of the health,
medical, and life sciences. To receive a detailed candidate profile, please
contact J Thomas Forbes, MSU Assistant Vice President for University Relations,
at jtforbes@msu.edu.
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.
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