Brands and Branding in the “Push and Pull” Marketplace

Brands and Branding in the “Push and Pull”Marketplace IU Communications and Marketing Conference Don E. Schultz, PhD Northwestern University 28 November, 2011 Indianapolis

First,Before Delving into the Educational Arena, Let’s Look at the Overall Field of Branding, Marketing and Communication

Marketing, Communication And, Even Branding, Used to Be Soooooo Easy!

Just Look At The Way It Used To Be Done

Marketing, Communication and Branding Were Based on Systems and Content the Marketer Controlled

It Looked Like This Agency →Media →Sales Force Retail Products and Services Consumer/ Prospect Marketer Messages and Incentives

And, We Assumed It Worked Through a “Hierarchy of Effects” Model One-Way Media Adver- tising Attitudes/ Awareness Purchase Behavior Knowledge Preference Conviction Linear “Influencing and Persuading Consumers” Source: Adapted from Lavidge and Steiner

Lots of Assumptions Were Made People want what we have made They will use the processes we control Behaviorist psychology “works” Stimulus  Response Attitudinal change  Behavioral change We can interrupt whenever we want Unconnected, separate and distinct functions work best In Short, We Talk, They Listen…and…Respond !

Unfortunately, Too Many Colleges and Universities “Bought Into” This One-Way, Outbound Marketing System

Everyone Tried to Find Something Unique About Their College or University….A Continuing Search for a Brand USP!

We Tried Lots of Things… • Only major research university in the Tri-State Area • More Nobel Prize winners than any other Community College • Our graduates make more money • Six NCAA Football championships in the last five years • More student aid than the funding for the UN • Seventy-four new buildings in the past two years • Free tuition, free labs, free housing, free food for under-qualified students • Etc.

And, We Distributed Them Through Outbound, Linear Communication Systems We Controlled….

And, They Seemed to Work…. Enrollments grew Funding exploded Honors and accolades rained down Students seemed happy, although they were deeply in debt Donors still wanted to fund bricks and mortar

And, Then the World Changed….. The Economy “went South” And, Technology exploded

Since I’m Not from the University of Chicago, I Have No Magic Economic Elixir to Offer Milton Friedman

So, Let’s Focus on Marketing, Communication and Branding

First, We Must Think of Stakeholders, Not Customers or Consumers or Users……They’re People, Not “Targets”

Second, Innovative Technology Has Changed the Entire Game Internet – WiFi Mobile Telephony iPods/MP3 -- podcasts Consumer Social Networks Cable/satellite Blocking Systems - TIVO/DVRs/ Filters/Pop-up Blockers/etc.

Competitors Competitors Competitors Competitors Marketers No Longer Control the System, Stakeholders Do! Web Search AgencyMedia  Sales Force Products and Services Customers/ Prospects Employees/Recommenders/Distributors/Influencers Marketer Messages and Incentives Word-of-Mouth New Forms of Media

We’re Must Re-invent Branding Communication Just to Cope Brand Experiences Internet Systems • Web sites • Customer Service • Tech support • Retailers • Distributors • User communities • Blogs • RSS • Influencers • Recommenders Organization Messages Audiences Agencies Brand Experiences Electronic Systems

Here’s the World Our Stakeholders Live in….. Customer Service Channels/Distributors Product/Service Direct Mail Stakeholders View of Marketing & Communication Package/Displays Press Coverage e-commerce Sales Promotion Advertising Pricing

Here Are Our Communication Planning Systems Brand Marketing Events/ Sponsorship Media Advertising Public Relations Direct Marketing Sales Promotion Stakeholders Attitudes Behaviors ?

Result?We Have to Move Beyond the Old-Fashioned, Linear, Marketer-Controlled Systems of the Past…..

To a New, Interactive, Networked, Reciprocal Branding System for Today and Tomorrow!

And, Nowhere Are These Changes More Evident Than on College and University Campuses

Just Look at Today’s Students

Our Stakeholders Don’t Think Linearly, But, We Do! Monochronic -- sequential processing Polychronic -- parallel processing

We’re Only Just Beginning to Recognize the Changes

We Must Re-Think College and University Brand Communication Programs…… One Approach: Service Dominant Logic

Evolution of Marketing Thought To Market (Matter in Motion) Marketing To (Management of Customers & Markets ) Marketing With (Collaborate with Customers & Partners to Cocreate & Sustain Value) Historic 1950-2005 2005 R. Lusch, 2010

G-D Logic: A Logic of Separation Producer Consumer Separation R. Lusch, 2010

S-D Logic: A Logic of Togetherness Cocreating Firm Customer Cocreating R. Lusch, 2010

Core Foundational Premises R. Lusch, 2010

Push and G-D logic Pull and S-D logic R. Lusch, 2010

Emergent, Co-created, Resource Integrating, Dynamic R. Lusch, 2010

With Service-Dominant Logic in Mind, Let’s Look at a University

Supplementary Services Core Service: Learning Co-created, Emergent, Unstructured, Uncertain First, Think of the University Holistically Physical Factors Facilities Accommodations Learning Material Equipment People Factors Students Academics Administrators Staff External Factors Alumni Government Contributors Communities Teachers/Counselors Process Factors Application Registration Exceptions Support Systems Adapted from Irene Ng and Jeannie Forbes

Indiana University Is a “Service”Not a “Product”

Services Are All About Relationships Internal External Continuous Evolving Shared Reciprocal

Communication Is Not Something You Do…..It’s Something You and the Stakeholder Do TOGETHER!

This Idea of Reciprocity(Shared Value) Challenges Most of Our Traditional Marketing and Communication Measurement Systems

Three Pathways Customer-Based Brand Equity Short-Term Incremental Sales Branded Business Value Present/Future Brand Value Attitudinal Data Cash Flows Discounted Cash Flows Marketing Mix Modeling Hierarchy of Effects Brand Scorecards Brand Tracking Studies ROCI Sales Shareholder Marketing Traditional Measures of Brand Marketing Returns

All Those Measurement Systems Are Based on Returns to the Organization…..One Way, Outbound, What Did We Get Back?

Good Measurement Starts With Clear Planning……What We’re Trying to Do Determines What We’ll Get Back!

Here’s One Approach: Stakeholder-Focused Planning Solutions Information Values Access S I V A

S Is for Solution to Stakeholder Problems and Concerns: S • Stakeholder Question: • How can I solve the problem I have or expect to have? • Brand’s Answer: • Here’s our solution to your problem

I Is for Stakeholder Need for Information I • Stakeholder Question: • Where can I learn more about your Solution to my problem? • Brand’s Answer: • Here are the answers to your questions – ways to get the information, plus the products and services you want or need

Brands and Branding in the “Push and Pull” Marketplace