Marketing AKL 101 by Sean Walters

Definitions:  A market consists of all the potential customers sharing a particular need or want who might be willing and able to satisfy that need or want.  The process of bringing a product or service to fulfill that need or want is Marketing. 

Analyze Market Opportunities

                         Determine long run opportunities of the market. 

                        Gather significant information about the market. 

·        Competitor Analysis -- Who is the competition?  What are they doing/not doing? 

       Competition need not solely be other fraternities.  In fact, many times the other

       fraternities will not  be competitors, as they may be targeting a completely

       different segment of students. 

·        Demographic, economic, sociological, social/cultural, and technical Analysis --

       What factors affect our success?  Must look at long term, not short term. What are

       trends in market? 

·        Consumer Market Analysis -- Who is buying?  What are the characteristics of students

       on campus?  Determine Socio-economic, Demographic, and Psychographic factors. 

       Look at who are currently members of fraternities, then look at those who are not. 

       If possible, access university registrar information.

        What are they looking for?  What kinds of options are available for them on campus? 

        How many fraternities are on campus, and how different are they?  Look at percentages

        of involvement in student activities.  Find what the students NEED.  This will help you

        position your fraternity to serve that need.

        Where are they located?  How accessible are the students?  This is the age old expansion

        question: “residential, commuter, or suitcase?”.  This will help you determine what

        marketing channels will need to be utilized.

        When will they buy?  If you know enough about who they are, what they want, and where

        they are, you should know the best time to conduct your recruitment.  It may be a little

        more complex.  In marketing, there are buying cycles that are targeted.  If you can

        determine a buying cycle on a given campus, you are one step ahead of the pack.

        Why are they buying?  Buyer decision process is another core concept of marketing. 

        What makes them decide to join a fraternity?  Of course, there are a number of reasons,

        but look at the primary one on the campus you are researching.  This will help determine

        your Unique Sales Proposition (USP), which we will discuss later.

        How do we sell to them?  This is a more operational question than a philosophical one! 

        What are the resources at our disposal.  Be creative. 

Research and Select Target Markets

                        Research consumer, break into segments, and target desired markets. 

                        Estimate the market’s size, growth, profitability, and risk.

“Forecasting is like trying to drive a car blindfolded and following directions

given by a person who is looking out the back window.”

·        Segment the Market

            The market consists of different types of buyers.  Each type of buyer is essentially a

            separate market because of unique needs and wants.  Large groups of identifiable

            people are segments.

            1.         Survey Stage:  Conduct interviews, organize focus groups, and/or utilize random

                        surveys to gain insight into five areas:

                        * Attributes desired in a fraternity.  What do they want?

                        * Brand Awareness.  How much do they know about fraternities?

                        * Product Usage.  Patterns of how they use similar organizations on campus.

                        * Attitudes toward the extracurricular activities and fraternities.

                        * Demographics of the respondents: age, major, hometown, psychographic ,etc.

            2.         Analysis Stage:  Determine highly related variables.  Group different variables into segments.

            3.         Profiling Stage:  each cluster is then profiled in terms of its distinguishing attitudes,

                        behavior, demographics, psychographics, and consumption habits. For example, a fraternity

                        market could have five identifiable segments:

                         * Passive bookworm  (i.e. honorary clubs)

                         * Active sports enthusiast (i.e. athletes)

                         * Inner directed, self sufficient  (i.e. resident advisors)

                         * Organizationally zealous  (i.e. organization presidents)

                         * Socially active  (i.e. sorority boyfriends)

These are just labels for the segments. You  should be comprehensive in defining the variables of each.

There are a number of segmentation possibilities in any market.  That is why you must clearly identify

which variables you are going to use to segment.

            --  Identify variables used to segment: 

                          * demographic:  age, income, geographic

                          * behavioral:  attitudes, psychological needs,

                          * lifestyle: different types of lifestyle within market,

                          * benefits: different benefits sought within market,

                          * user status: non-user, first time, ex-user

                          * buyer readiness stage:  unaware...aware... informed...interested...desire...intending

You may choose the manner in which profile the segments.  You may want to weigh the above variables

differently.  There are certain requirements for effective segmentation:

            Requirements for Effective Segmentation

                          * Measurable:  The size of the segments can be determined, or measured.

                          (a segment of students who have a “good attitude” is not measurable)

                          * Substantial:  The segments are large and profitable enough to go after.

                          (a segment of students who are legacies is usually not substantial)

                          * Accessible:  The segments can be effectively reached and served.

                          (a segment of students who are married and commute to campus is not accessible)

                          * Differentiable: The segments are conceptually different from each other.

                          (athletes and band members are differentiable--they respond to different messages)

                          * Actionable:  Effective programs can be designed to attract and serve each segment.

                          (if athletes are not permitted to join fraternities, then don’t list them as a segment)

·        Market Targeting

            The recruitment team now has to evaluate the various segments and decide how many and which

            ones to target.

            Evaluate the Market Segments

            1.         Segment size and growth: Can a colonization effort be supported by the  segment(s)?  Will

                        the chapter continue to be supported by the segment(s)?

            2.         Objectives: Even if a segment is large and growing, the fraternity needs to

                        consider its objectives. 

            3.         Resources: Each segment has certain “success requirements”.  If the recruitment

                        team lacks the funds or manpower to successfully serve that segment, it should not be

                        targeted.

            Selecting the Market Segments

            1.         Single Segment Concentration:  A single segment is targeted.  Concentrate all marketing

                        efforts on one segment.  Higher risk, but long term leadership if successful.  Simpler to

                        market, as only one, clear message is sent to one, distinct segment (or niche) on campus.

            2.         Selective Specialization:  Selects multiple segments based on fraternity objectives.  Each

                        segment should be appealing.  Less risky, as it diversifies coverage.  Best utilized when

                        knowledge about the segments is uncertain.  Multiple messages for multiple segments.

            3.         Product Specialization:  The recruitment team is organizing a chapter with specific

                        characteristics and concentrates on the segments that will be most interested

                        in this “product”.  Must know the segments well and know the “product” well.  High risk,

                        though reputations can be built that will make future marketing easier.

            4.         Market Specialization:  Specializes in serving a specific customer group (or segment) with

                        multiple services.  This is similar to what fraternities traditionally do.  They offer all kinds of

                        benefits and services to one type of person.  The message is therefore narrow in its delivery,

                        but jam-packed with content.  Higher risk in that if segment dries up, there is difficulty

                        shifting to another segment. 

            5.         Full Market Coverage  Mass Marketing.  All segments are attempted to be served by all

                        services of the fraternity.  There is no rhyme or reason to the approach of the segments.  This

                        is the traditional approach to fraternity recruitment.  The recruitment team approaches the

                        campus with a shotgun and attempts to blow a whole in the middle of it!  Low risk, high return

                        in short run,  but higher long-term instability.

Design Marketing Strategies

      Differentiate your fraternity.  What are the aspects about the recruitment process that could  

      be used to differentiate it from the competitors during the expansion?  This does not mean

      these aspects will be used. Position the marketing mix.  The differentiators you select should

      align with the markets you have targeted. 

·        Differentiate

            Definition:  The act of designing a set of meaningful differences to distinguish the fraternity’s offer from competitors’ offers.

                        BETTER                                  NEWER

                        FASTER                                  CHEAPER

            Three primary differentiation variables:

      1.   Features/Services  These are the characteristics or programs that segments of students may desire in a

            fraternal experience.  (i.e. a comprehensive job placement service, grants/scholarships, etc.)

      2.   People  The type of people you select is perhaps the greatest differentiator. 

      3.   Image  Perhaps the most used differentiator in expansions is the communication of image.  Though a

            fraternity may strive to present an image during recruitment, in many cases a negative image

            has already been established by competitors.  Understanding this image can help us differentiate our

            image for a more strategic impact.

·        Positioning

            Definition:  The act of designing the fraternity’s offer and image so that it occupies a distinct and valued

            place in the target consumers’ minds.

Positioning calls for the fraternity to decide how many differences and which differences to promote to the target consumers.  The trick is knowing that not every difference is a differentiator.  The fraternity recruitment team must carefully select the ways in which it will distinguish itself from the competitors. 

A difference is worth establishing if it satisfies the following criteria:

            1.         Important:  The difference is a highly valued benefit to a sufficient number of students.

            2.         Distinctive:  The difference isn’t offered by others or is offered in a more distinctive way.

            3.         Superior:  The difference is superior to other ways to obtain the same benefit.

            4          Communicable:  The difference is a easily communicated and visible to students.

            5.         Preemptive:  The difference cannot easily be copied by competitors.

            6.         Affordable:  The student can afford to pay for the difference.

            7.         Profitable:  The fraternity will not take a loss by offering the difference. 

·        Develop a Unique Sales Proposition (USP)

            Find your number one attribute and simplify it.  This will remain your consistent theme throughout the

            marketing planning process. 

            Don’t get caught up in too broad a USP.  A fraternity risks disbelief or a loss of clear positioning.

There are at least seven positioning strategies available:

      1.   Attribute Positioning:  AAA Fraternity can advertise itself as the largest fraternity in the world in

            number of chapters.

      2.   Benefit Positioning: BBB Fraternity can advertise itself as a fraternity that offers a

            comprehensive member development program.

      3.   Use/Application Positioning: CCC Fraternity can position itself for the student who wants to get

            drunk and beat up AAA Fraternity.

      4.   User Positioning:  DDD Fraternity can advertise itself as the fraternity for religious students, thus

            defining itself through a user category.

      5.   Competitor Positioning:  EEE Fraternity can advertise that over a three year period it has

            experienced a greater percentage increase in pledgings and initiations than any other fraternity

      6.   Product Category Positioning: FFF Fraternity can advertise itself as a non-secretive fraternity, thus

            putting itself into a different product class.

        7. Quality/Price Positioning: High quality/high price  (not as applicable at a national level, but can be

            used in expansions for value positioning)  GGG Fraternity can position itself as the fraternity for rich guys.

Positioning, in a nutshell, is the act of designing the fraternity’s offer and image so that the target market

understands and appreciates what the fraternity stands for in relation to its competitors.  The positioning

decision must be rooted in an understanding of how the target market defines value and worth.

Plan Marketing Programs

                Marketing strategy must be turned into marketing programs.  This is traditionally

                referred to as the Four P’s; Product/service, Price, Place, Promotion.

·        Product/Service

            What is the fraternity’s offer to the market. What is the image, design, features, structure,

            and programs.  The fraternity’s USP should be part of the product, as well as any other

            primary differentiators.  Most fraternities come to the expansion table with this aspect

            pretty well in mind.

·        Price

We all know that a major objection from prospective members is the cost.  Fraternities are generally

uncreative when it comes to discounts, pricing communication, credit options (though this is improving),

and allowances.  The cost of membership should be a perceived value, and all marketing mix objectives

should support this element.

·        Place

            The third marketing tool stands for the various activities the fraternity undertakes to make itself

            accessible to the target students.  As part of your marketing planning, you must decide where and how

            to deliver the message to the target.  We have all tried various methods, but the target market must be

            clear in mind during the delivery.  We all tell our chapters not to use flyers and advertisements, but we

            continue to rely upon these mediums as our message distribution tools.  Again, we must be more creative.

·        Promotion

            The fourth marketing tool stands for the various activities the fraternity undertakes to communicate and

            promote itself to the target market.  The process of determining the appropriate “Marketing Communications

            Mix” is a multifaceted one.

Marketing Communications Mix

1.         Identify the Target Market:  It is important to reacquaint yourself with the segment(s) you are targeting. 

            But also to evaluate factors affecting our communication of the message.

                        * How familiar are they with fraternities (never heard of  . . .  know very well)

                        * How do they feel toward fraternities (very unfavorable  . . .  very favorable)

2.         Determine Communication Objectives: What is your desired response from the target audience.  Most

            students follow the cognitive response model, “Learn, Feel, Do” when it comes to fraternities.  This is

            because it is a “complex buy”.

            This means that our communication objectives should follow this response model.  This is the order in

            which the buyer responds to our messages.

                  a.) Learn:  AWARENESS AND KNOWLEDGE.  Telling market about the new fraternity.  describing 

                       services. Correcting false impressions.  Reducing buyer fears.  Building fraternity image. 

                  b.) Feel:  LIKING AND PREFERENCE Play upon emotions to establish desire. 

                    Fantasy.  Fear.  Mood or image.  Fun. This is the stage where interest is captured.

                  c.) Buy:  CONVICTION AND PURCHASE  The process of communicating a need

                   for closure.  Establish a sense of immediacy.  Impulse behavior. 

3.         Designing the Message:  Ideally the message should gain Attention, hold Interest, arouse Desire, and elicit Action.  This is known as the AIDA model.  Formulating the message requires solving four problems:

            Message Content  -- What to Say.

            This is traditionally the USP (Unique Sales Proposition).

            Message Structure  -- How to say it logically.

            Do you draw the conclusion for the audience or let them draw their own conclusion?  Don’t be ambiguous.  Remember that with most expansion audiences the first reaction need is to LEARN.  Then they should be led through the FEEL and BUY responses.

            Message Format  -- How to say it symbolically.

            Print ad?  radio?  television?  In person?  Presenters?  Product or package?  All of these formats must convey

            the USP symbolically.

            Message Source  -- Who should say it?

            What factors underlie credibility?  Expertise.  Trustworthiness. Likability.  Stick to these traits as you

            present yourselves to the target audience.

4.         Select the Communication Channels:  There are two types of channels for communicating the message: 

            personal and non-personal.  As we all know, work of mouth is the greatest medium for advertising during a recruitment.  Below are listed five tips on how to enhance the word of mouth process:

            * Identify influential individuals and organizations and devote extra time to them.

            * Create opinion leaders by holding information seminars for influencers, and offering them incentives to attend.

            * Work through campus influentials such as organization presidents, and presidents of women’s fraternities.

            * Use influential people in testimonials. 

            * Develop advertising that has high “conversation value”.

5.         Deciding on the Marketing Communication Mix:  There are primarily five promotional/communication tools:

            Advertising  Four primary characteristics:

                *      Highly public in its scope of the message.  High contact.

                *      Highly pervasive.  Allows the fraternity to repeat the message several times.

                *      Highly expressive.  Allows the fraternity to be more creative in the message design.

                *      Impersonal.  Cannot be as compelling as a personal contact. 

            Sales promotion (coupons, contests, incentives, invitations) Three primary characteristics:

                *      Attention.  They can  gain attention and provide information about the fraternity.

                *      Incentive.  They usually incorporate an inducement that gives value to the student.

                *      Invitation.  They usually include an invitation to engage involvement immediately. 

            Direct Marketing (direct mail, electronic marketing, etc.)  Three primary characteristics:

                *      Nonpublic  The message is normally addressed to a specific person and does not reach others.

                *      Customized.  Can only be customized to the extent of the recipient’s name.

                *      Up to date.  A message can be prepared very quickly for delivery to an individual.

            Public Relations & Publicity (interviews, news stories, etc.)  Three primary characteristics:

                *      Credible.  News stories and features seem more authentic and credible to the target audience.

                *      Off Guard.  Public relations can reach people who might avoid advertisements or representatives.

                *      Dramatization.  Has the potential to dramatize the fraternity and its role on campus.

            Personal Selling  Three primary characteristics:

                *      Confrontation.  Involves alive, immediate, and interactive relationship.  Feedback essential.

                *      Cultivation.  All kinds of relationships are developed.  Interests are determined and personalized

                       sales are attainable..

                *      Response.  The buyer has a greater need to attend and respond. even if the response is a polite,

                        “No thank you”.

6.         Measuring Promotion Results:  This involves asking the target audience:  Whether they recognize or recall

            the message, how many times they saw it, what points they recall, how they felt about the message, and

            their previous and current attitudes toward the fraternity.