Targeting K-12 Market Segments for Vantage Learning

1. Marketing Communications January 11, 2008 Vantage Learning OTS Sales Meeting

2. Overall K-12 Market Segments • Education Delivery - @ 55 million students • K-12 Public Schools – largest 100 districts serve 23% of student population • Private, Catholic, Charter • Virtual Schools • Home School • Contract management, e.g. Edison, University partnerships Source: US DOE

3. K-12 Market Segment • 50 state agencies/departments of education • 15,767 public school districts serving @ 52 million students • Very Large (25,000+) 307 36% • Large (10,000-24,999) 612 18% • Medium (5,000-9,999) 1097 15% • Small (2,500-4,999) 2,039 14% • Very Small (< 2,500) 10,014 16% • 100 largest school districts range from 46,000 to 1,100,000 students • 27 districts serve > 100,000 students • Largest 15 districts serve about 25% of all students • 93,954 total K-12 public schools

4. K-12 Market Segment • http://nces.ed.gov/ • http://www.cde.ca.gov/ds/ • Writing Data

5. Marketing Functional Responsibilities Vantage Learning Marketing Communications Product Marketing • Brand • Lead Generation/Sales Support • Advertising • Public Relations/Media Outreach • Direct Marketing/email Marketing • Business Partnership Development • Conferences • Web • Collateral/Sales Support Materials • Vantage Community • Product/Market Research • Competition • Product Management • Feature/Function/Offering • Pricing • Development/sales liaison • Vantage Community

6. Vantage Learning Marketing Communications Organization • 2.1 FTE for Vantage Learning • Other resources that support • Creative Services for web design • ISSA, ISR, Regional team for eMail • ISSA, ISR, Regional team for references • Sales admin for conference planning • Product marketing resources • Paul Edelblut and international partners

7. Some of the things we did in 2007 • Greta • John

8. Public Relations – Media Outreach http://tinyurl.com/aftkn

9. Public Relations – Media Outreach Lifecycle of a Lead

10. Public Relations – Media Outreach Media Alerts

11. Public Relations – Media Outreach As a result of  media outreach regarding the FCATs, we’ve secured an interview with Aventura magazine. The reporter, Ivette, is looking to focus on technology advancements in school and how it’s helping to better prepare students for the FCATs. She would like to schedule interviews within the next two weeks with a representative from Vantage and then maybe a Florida teacher or school superintendent is currently using the program. Please advise who is available. In the meantime, here’s some background info. about the pub: Aventura Magazine Circulation: 50,000 Overview: Written for affluent residents of South Florida who seek an upscale lifestyle and its brands. Demographics: Gender: 55% Female, 45% Male;Education: College Grad 73%.  http://www.aventuramagazine.com Thanks,Kathleen

12. How Our Products Support the Vantage Learning Mission http://www.vantagelearning.com/corporate/news/media/k8_abc.html

13. Selling To Schools • Viral Marketing – • “A technique that uses pre-existing social networks to increase brand awareness through word-of-mouth, delivered or enhanced by the network effects of the internet. Viral marketing is a marketing phenomenon that facilitates and encourages people to pass along a marketing message voluntarily.” - Wikipedia • Viral Marketing Turns Stories Into Sales • Peer Groups of Educators Are the Most Powerful, Efficient, Effective Channel Available to Marketing and Sales People • Not sales people • Not marketing brochures • Not “one way” web site information • Viral Marketing Is Part of Web 2.0….But Has Been Around A Lot Longer

14. Web Evolution and Potential Impact on Teaching/Learning & Vantage Product and Service Delivery, and Sales & Marketing

15. Glen McCandless – Is Viral Marketing New? • Viral Marketing Coined Over 10 Years Ago Long Before Web & YouTube • “Some of you have taken my advice or otherwise ‘drank the Kool-Aid” or seen the stunning results for those companies who have the vision and the persistence. Witness the success of Renaissance Learning, Texas Instruments and Scholastic – companies that built their customers into their most powerful sales channel. These are three of the most successful companies in our industry, with enviable profit margins and revenues that keep rolling in the door. They enjoy commanding market share in their categories. The proof that this strategy works is in front of you and begs your attention.” • “These three industry leaders built their franchise and annuity largely from ‘viral’ channels, not overnight, but over many years by patiently applying viral principles.” • There Are New Tools To Supercharge This But The Foundation Remains Customer-Driven Marketing

16. Glen McCandless – Is Viral Marketing New? Contact Us Form from Vantage Learning -------------------------------------------- Date Submitted: 01/11/2008 (11:11 am) Form Information: ----------------- Inst./Co.: Carmel High School Contact: Barbara Steinberg Title: English Department Chair Telephone #: 831-624-1821 x3722 Fax #: 831-626-4313 E-Mail Address: bsteinberg@carmelunified.org Address 1: PO Box 222780 Address 2: City: Carmel State: CA Country: Zipcode: 93922 Interested In: How Heard: fellow teachers Comments: --------------------- We would like a quote for purchasing the My Access! Instructional Writing program for our school.

17. Sales Being Marketing “The conversations your salespeople or channel partners have with prospects and customers may be your last bastion of competitive differentiation in today’s rapidly commoditizing markets. As a result, they are also Marketing’s number one……..and most under-utilized…. branding and positioning resource.” - American Marketing Association

18. Sales Being Marketing • 50%-90% of what we produce as marketers goes unused in the field • 80%-90% of customer-facing content created by salespeople is inaccurate and dilutes the brand • Only about 10% of salespeople are capable of selling the value of the brand on their own • 25% of marketers believe sales is effectively selling the value of the brand • 70% of marketers give themselves a failing grade in providing useful sales support • - American Marketing Association

19. Sales & Marketing Cycle

20. Web chat Traditional 4 P’s of marketing rapidly changing Product Price Place Promotion

21. Typical K-12 Marketing Initiatives Source: QED

22. Effective Sales/Marketing Partnership to Drive Leads and Build The Buzz % of the total 100% • Customers – 100% • Renewal Customers – 85% • Reference Accounts – Provides Quotes – 75% • Testimonials – 60% • Formal approval for contact, use in proposals – 50% • Participate in Community and Writing Forums • Case Studies/Spotlight on Success • Place on their website • Allow ghost-written story • Allow placement on our website • Present at conferences • Paid to support sales efforts • Formal Research 0%

23. Effective Sales/Marketing Partnership to Drive Leads and Build The Buzz 500 500 Elementary Schools within a District 1500 Middle Schools 1500 High School 3000 50 student pilot in a single 5th grade classroom • @ 7500 student opportunity district-wide • Fred’s “deal size” parameter

24. Taking Advantage of Existing Media/Channels • Real Events – conferences, events, users groups • Traditional advertising – no national but local/regional, e.g. CA • Email through SF.com and bulk via OEM Pro • Phone • Proposals • Demos • Media outreach/articles/TV • User testimonials – Spotlights, Video, Testimonials, References, Outreach • Partner – Reeves, Reeves consultants, NCERT, Wiggins, Walter Amprey?

25. Sales Pipeline – SF.com Categories • Initial Appointment • Demo • Written Proposal • Quote • Verbal Commit • Closed – Won • Lost • No bid

27. Mark McCormick The Rock Mark McCormick Mark – you are going to Disneyworld – or anywhere else you want to go for a Conference! Thank you so much for all of your hard work and effort during March Madness and the Vantage Bowl! You entered well over 100 accounts and this will help us EARN MONEY in 2008! You are THE MAN!