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

• 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-why-people-follow-brands.

How Extension can use Social Media• 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?