Transcript 2013 U Of Minnesota Extension PowerPoints

Marketing in the Context of
Extension
CFANS Extension Meeting
October 9, 2013, DECC
I. PRICING: CONSIDERATIONS IN
SETTING A PRICE FOR YOUR
PROGRAMS
COME
ON
• Why aren’t all of your programs
free? After all, you’re a state
agency.
• And most everything USED to be
free!
• What is our tax money being used
for anyways?
HOW IMPORTANT IS SETTING THE
RIGHT PRICE? WHAT HAPPENS WHEN
YOU DON’T
Basic primer on setting prices
1. Identify price constraints and
objectives
• Constraints
– Number of potential
buyers
– Newness of the service
– Costs of creating and
doing the program
– Amount of competition
and what they charge
1. Identify price constraints and
objectives (cont)
• Objectives
–
–
–
–
Profits
Number sold
Market Share
Survival
2. Estimate demand and revenue
• Demand estimation (at
various pricing points)
• Sales revenue
estimation (at various
pricing points)
2. Estimate demand and revenue (cont.)
Elasticity = % change in
number who will
attend/% change in price
– If greater than 1, then it is
elastic
– If less than 1, then it is
inelastsic
– Examples (gasoline=.2,
clothing =1.2)
Inelastic demand
?e.g., of elastic demand?
3. Estimate cost/volume/revenue relationships
• Gets into total costs,
fixed costs, variable
costs, marginal costs.
• Estimates Breakeven
point
– BE quantity = Fixed
costs/Unit price – unit
variable cost
4. Set the price
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•
•
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•
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•
•
Cost plus
ROI (profits)
Above, at or below-market pricing
Odd-even pricing
Bundle pricing
Loss leader
One price or dynamic pricing (e.g., Timberwolves)
Discounts
Skimming vs. penetration pricing
• Highest initial price or
low price to appeal to
more people ($440 vs
$8.7 million)
HOW ABOUT “LET’S BE AS CHEAP
AS WE CAN POSSIBLY BE”?
Price helps determine the “buyer’s”
estimation of quality and value
• Retailers don’t price store brands more than 20-25% less
than manufacturer’s brands…signals lower quality
QUESTIONS AND COMMENTS ON
PRICING BEFORE WE MOVE ON?
II. BRANDING: WHAT HAPPENS WHEN
WE DON’T BRAND?
Definition
• Branding: using a name, phrase, design,
symbol or combination to identify one’s
services and distinguish them from those of
competitors.
Why is branding important?
The value of the UM and Extension Brand
• Forms an intense, active loyalty relationship
between consumers and the brand. Think of
this as a psychological bond.
•
Your brand is your promise to your customer. It tells them what they can expect
from your products and services, and how you’re different from your competitors.
We want UM Extension to be a brand
that people love
• Brand equity: Strong, favorable, unique
consumer associations and experiences with a
brand.
– Not easily achieved.
– Not quickly achieved. Must go through steps to
get there: Who are you? What are you? What
can you do for me?
What can happen when we don’t
brand or use our brand symbol?
• We lose that intense, active loyalty
relationship
Do you have a valuable Personal
Brand?
• Make sure you enhance the
benefit of your brand by
including the UM Extension
brand in all you do
QUESTIONS AND COMMENTS ON
BRANDING
HOW DO THE “CUSTOMERS” FOR YOUR
SERVICES WANT TO HEAR ABOUT YOUR
OFFERINGS AND FEEL CONNECTED?
Forest & Tree Invasive Species Program target
audiences:
• Tree and forest professionals
• Master Naturalists
• Forest pest first detectors
• Family forest landowners
• Tourism operators and managers
Forest Ecosystem Health target audiences:
• Loggers and natural resource prof.
• Family forest owners
• Volunteers
• County tax assessors
Precision Ag Program target audiences:
• County grower groups
• Machinery and implement dealers
• Farmer under-utilizing precision
ag technology
• Ag professionals
Small Farms Program target audiences:
• Rural residence farms
• Intermediate farms
Institute for Ag Professionals target
audiences:
• Ag business input dealers
• Crop consultants
Turfgrass management
• Consumers (lawn care)
• Golf course superintendents
• Master Gardeners
A static web page probably isn’t
enough today
May 2000
September 2013
Digital Marketing
• Photos—consider allowing photo-sharing (Flickr)
• Videos – be sure to edit to suitable length, promote them
through social media (YouTube)
• Search Engine Optimization (SEO) -- based on key words,
links, site features
• Mobile marketing – text messaging, sites optimized for
mobile devices (e.g., scrolling in one direction, no
Javascript, simple layouts)
• Email – avoid opt-outs and being labeled as SPAM
Extension (Mike’s office) has resources/templates to
help making branded videos, emails, etc. easier for you!
Social Media
• Interactions between people online
• Digital tools that let you share information
and network with others.
45% of buyers interact with
brands on social networking
sites. Why?
– Gain access to a discount (61%)
– Purchase a product/service
(55%)
– See reviews/product ratings
(53%)
– Get access to general
information (53%)
– Get access to exclusive
information (52%)
– Learn about new
products/services (51%)
Source: http://www.slideshare.net/duckofdoom/ibm-whypeople-follow-brands.
How Extension can use Social Media
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•
•
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Generate awareness and exposure
Enhance customer service
Drive website traffic
Improve monitoring and do research
Generate leads and improve sales
Use of Social Media
• Facebook page is altogether different from
your webpage. More FUN, LOOSE,
ENGAGING!
• Goals: Generate buzz, give audience
something of value, integrate with other parts
of your social media presence.
Create conversation and engagement.
• What is your favorite memory of our session?
• What’s one thing you would like to see us do differently in
our next program?
• How can we improve your experience at our event?
Generate a call to action. Get them active and give them
something to do (“like” your brand, share this content with
others, engage in a contest to name your next conference
title).
Text (like this page) is boring. Use pictures and other media!
Visuals!!!
Use of Social Media
• Twitter—like a text message that goes out to
groups, instead of individuals.
• Key is timeliness!
• Numbers:
– Justin Bieber = 45 million followers
– UM Extension = 2750 followers
Source: http://twittercounter.com/UMNExt, Sept 20, 2013
• Use breadcrumbs approach.
– Use quotes, etc. and then link to your site for full
details.
– Do surveys to generate interest.
– Share content that is demanded.
Other Use of Social Media
• LinkedIN similar to Facebook, but more for
business professionals.
• Google+ similar to Facebook plus Twitter in
one platform. Use “circles” to control who
sees what content.
• Quick conversation.
– How are we doing with
digital media for our
offerings?
QUESTIONS AND COMMENTS ON
“USING TECHNOLOGY TO SELL” BEFORE
WE DISMISS?