Stakeholder Centered Community Marketing Kristin Runge M S

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Stakeholder Centered Community Marketing Kristin Runge, M. S. Community Marketing Specialist Center for Community

Stakeholder Centered Community Marketing Kristin Runge, M. S. Community Marketing Specialist Center for Community & Economic Development kristin. runge@ces. uwex. edu; Twitter @Runge. Kristin

Agenda • Community Marketing & Community Branding Defined • Stakeholder vs. Commerce Centered Approach

Agenda • Community Marketing & Community Branding Defined • Stakeholder vs. Commerce Centered Approach • Woodburn School District • Target Market • Purchase Process • Wrap Up

Community Marketing & Community Branding Defined

Community Marketing & Community Branding Defined

Marketing Defined “The science and art of exploring, creating, and delivering value to satisfy

Marketing Defined “The science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit … It defines, measures and quantifies the size of the identified market and the profit potential. ” Dr. Phillip Kotler Marketing is to sales as plowing is to planting for a farmer—it prepares an audience to receive a direct sales pitch. Mary Ellen Bianco, Director Marketing & Communications Getzler, Henrich & Associates The process by which a firm profitably translates customer needs into revenue. Mark Burgess Managing Partner, Blue Focus Marketing is products that don’t come back and consumers that do Steve Dawson, President Walkers Shortbread Inc.

4 P’s of Marketing Product ◦ The tangible and intangible aspects of the item

4 P’s of Marketing Product ◦ The tangible and intangible aspects of the item that is sold Price ◦ The cost of purchasing and owning the product ◦ Retail price, rent, fee, subscription, admission … Place ◦ The physical channels the product moves through to get from producer to end user ◦ Distribution strategy and channel management designed to maximize profitability for channel members Promotion ◦ Advertising, promotion and discounts designed to make consumers aware and prompt purchase ◦ Sales incentives, advertising and promotion designed to highlight product profitability and encourage members of the distribution channel to carry and promote the product

Problematic Definition VS.

Problematic Definition VS.

Typical Target Markets for Stakeholder Centered Community Marketing The activities, institutions and processes involved

Typical Target Markets for Stakeholder Centered Community Marketing The activities, institutions and processes involved in creating, communicating and delivering value in a manner that propels a community towards its goals Residents & Workers Visitors Business & Industry Export Markets

Individual Community Stakeholders Residents & Workers Business & Industry Visitors Export Markets ◦ ◦

Individual Community Stakeholders Residents & Workers Business & Industry Visitors Export Markets ◦ ◦ Professionals Skilled & Unskilled Workers Investors & Entrepreneurs Wealth Holders & Community Anchors ◦ Business Visitors ◦ Tourists & Travelers ◦ ◦ Traditional Manufacturing Firms Tech Industry Firms Service Industry Firms Entrepreneurs ◦ Regional & National Partners ◦ International Partners Diffe Stak rent ehol s Ne der Diffe ed Stra rent tegie s

Community Brand Residents & Workers Visitors Business & Industry Export Markets

Community Brand Residents & Workers Visitors Business & Industry Export Markets

Community Brand Marfa, TX Spring Green, WI

Community Brand Marfa, TX Spring Green, WI

Community Branding vs. Community Marketing Community Branding ◦ The enduring essence of a community,

Community Branding vs. Community Marketing Community Branding ◦ The enduring essence of a community, including its reputation and the thoughts, values, feelings and expectations that form a compelling promise enabling people to choose that community over another. ◦ What makes a community special. Community Marketing ◦ The activities, institutions and processes involved in creating, communicating and delivering value in a manner that propels a community towards its goals ◦ The strategy and tactics used to ‘sell’ a community.

Community Brand Typology • Overarching Community Brand • The Big Apple, Keep Austin Weird

Community Brand Typology • Overarching Community Brand • The Big Apple, Keep Austin Weird • Destination Brand • Door County, Wisconsin Dells • Economic Development Brand • The Paper Valley, N. E. W. North, Motor City, Music City USA • Thematic Brand • Middle Coast, Water Park Capitol of the World

Commerce vs. Stakeholder Centered Community Marketing PROBLEM RECOGNITION AND COMMUNITY MARKETING

Commerce vs. Stakeholder Centered Community Marketing PROBLEM RECOGNITION AND COMMUNITY MARKETING

Institutional Community Stakeholders Local Public Sector City Managers Urban Planner K-12 School District Economic

Institutional Community Stakeholders Local Public Sector City Managers Urban Planner K-12 School District Economic Development Agencies Infrastructure Agencies Technical Colleges & Universities Public Utilities Local Private Sector Real Estate Developers & Agents Architects & Designers Financial Institutions Chambers of Commerce Visitors & Convention Bureau Unions Private Utilities Regional County & State Officials Economic Development Agencies Regional Tourist Boards National/International National Unions National Corporations Federal Agencies & Bureaus Multinational Corporations International Chambers of Commerce Residents

Stakeholder vs. Commerce Centered STAKEHOLDER CENTERED COMMERCE CENTERED Concerned with maximizing the quality of

Stakeholder vs. Commerce Centered STAKEHOLDER CENTERED COMMERCE CENTERED Concerned with maximizing the quality of life in a community Not Mutually Exclusive Concerned with maximizing the profitability of a community

Stakeholder vs. Commerce Centered STAKEHOLDER CENTERED An aspect of the community worth patronage COMMERCE

Stakeholder vs. Commerce Centered STAKEHOLDER CENTERED An aspect of the community worth patronage COMMERCE CENTERED Product The monetary and psychological costs associated with the product Price Residential, civic, social and commerce spaces Place Advertising, promotion and discounts designed to attract necessary people Promotion A good or service offered by the community that is purchased or sold Monetary cost of purchasing and owning the product Commerce spaces Advertising, promotion and discounts designed to make consumers aware and prompt purchase

Stakeholders A group, organization or entity that seeks to solve a problem through community

Stakeholders A group, organization or entity that seeks to solve a problem through community marketing High Parent Satisfaction Strong Elementary Curriculum Above Average ACT Scores Nationally Recognized Foreign Language Program Low Property Taxes Declining Enrollment Less State Aid Wage Cuts School Closings

This Won’t Work

This Won’t Work

Problem Recognition Assessment Finds: Aging Population Low Number of Rental Units Low Housing Stock

Problem Recognition Assessment Finds: Aging Population Low Number of Rental Units Low Housing Stock Higher than Average Daycare Costs Incomplete AP Course Offerings Low Awareness of Community Declining Enrollment Less State Aid Wage Cuts School Closings Marketing Partners ?

Problem Recognition High Parent Satisfaction Strong Elementary Curriculum Above Average ACT Scores Nationally Recognized

Problem Recognition High Parent Satisfaction Strong Elementary Curriculum Above Average ACT Scores Nationally Recognized Foreign Language Program Low Property Taxes Product Price Attributes? Costs? Place Promotion Spaces? Communication? Aging Population Low Number of Rental Units Low Housing Stock Higher than Average Daycare Costs Incomplete AP Course Offerings Low Awareness of Community

Problem Recognition Product Incomplete AP course offerings High Parent Satisfaction Strong Elementary Curriculum Above

Problem Recognition Product Incomplete AP course offerings High Parent Satisfaction Strong Elementary Curriculum Above Average ACT Scores Nationally Recognized Foreign Language Program Low Property Taxes Place Aging Population Price Few rental units High daycare costs Low housing stock Promotion Low awareness of community Aging Population Low Number of Rental Units Low Housing Stock Higher than Average Daycare Costs Incomplete AP Course Offerings Low Awareness of Community

Stakeholders Local Public Sector City Managers Urban Planner K-12 School District Economic Development Agencies

Stakeholders Local Public Sector City Managers Urban Planner K-12 School District Economic Development Agencies Infrastructure Agencies Technical Colleges & Universities Public Utilities Local Private Sector Real Estate Developers & Agents Architects & Designers Financial Institutions Chambers of Commerce Visitors & Convention Bureau Unions Private Utilities Regional County & State Officials Economic Development Agencies Regional Tourist Boards National Unions National Corporations Federal Agencies & Bureaus Multinational Corporations International Chambers of Commerce Residents

Stakeholders: Price Local Public Sector City Managers Urban Planner K-12 School District Economic Development

Stakeholders: Price Local Public Sector City Managers Urban Planner K-12 School District Economic Development Agencies Infrastructure Agencies Technical Colleges & Universities Public Utilities Local Private Sector Real Estate Developers & Agents Architects & Designers Financial Institutions Chambers of Commerce Visitors & Convention Bureau Unions Private Utilities Regional County & State Officials Economic Development Agencies Regional Tourist Boards National Unions National Corporations Federal Agencies & Bureaus Multinational Corporations International Chambers of Commerce Residents

Strategy: Lower the Cost of Living in Woodburn FEW RENTAL UNITS LOW HOUSING STOCK

Strategy: Lower the Cost of Living in Woodburn FEW RENTAL UNITS LOW HOUSING STOCK HIGH COST DAYCARE Tactic: Real estate developer and urban planners work to find location and investors for rental units. City managers, urban planners, architects and financial institutions work to identify infill lots for housing, vacant land for subdivision. Chamber of Commerce works to find new daycare operators, expand existing operators. Financial institutions put together loan packages for first time buyers. Financial institutions work to mentor new daycare operators.

Target Market COMMUNITY MARKETING FROM THE OTHER SIDE OF DESK

Target Market COMMUNITY MARKETING FROM THE OTHER SIDE OF DESK

Identifying Target Market Geographic ◦ Segmenting based on proximity to community, or location within

Identifying Target Market Geographic ◦ Segmenting based on proximity to community, or location within community ◦ Consumers living within 5 miles of downtown ◦ Residents within the school district ◦ Local businesses searching for expansion space Behavioral ◦ Segmenting based on attitude, knowledge, usage rate, loyalty ◦ Frequent restaurant patrons ◦ Green Bay Packer season ticket holders ◦ Visitors and tourists who vacation by car Lifestyle/Psychographic ◦ Segmenting based on a particular stage in life or lifestyle choice ◦ Millennials looking to purchase a first home ◦ Suburbanites with teenagers ◦ Retirees with second homes in Northern Wisconsin Demographic ◦ Segmenting based on quantifiable characteristics within a larger population ◦ Upper income women ages 45 to 60 with professional jobs ◦ Teenage boys 14 to 18 living with their parents ◦ Men earning between $50 k and $75 k with children at home

Target Market: Lifestyle SOCCER MOMS HOME IMPROVEMENT US Households: 3, 327, 000 US Households:

Target Market: Lifestyle SOCCER MOMS HOME IMPROVEMENT US Households: 3, 327, 000 US Households: 2, 058, 000 Average Household Size: 2. 96 Average Household Size: 2. 86 Median Age: 36. 6 Median Age: 37. 0 Median Household Income: $84, 000 Household Income: $67, 000 College Degree: 37. 7% Both parents work

Typology of Buyers Initiator Approver Influencer Buyer ◦ Recognizes problem and takes action ◦

Typology of Buyers Initiator Approver Influencer Buyer ◦ Recognizes problem and takes action ◦ Involved at some point and exerts influence Decision Maker ◦ Has the authority to make final decision ◦ Can approve or reverse the final decision ◦ Implements the final decision User ◦ Consumes or uses the final product or service

Purchase Process

Purchase Process

Buyer Behavior Problem Recognition Information Search Evaluation of Alternatives Purchase Decision Post. Purchase Behavior

Buyer Behavior Problem Recognition Information Search Evaluation of Alternatives Purchase Decision Post. Purchase Behavior

Step 1: Problem Recognition • Initiator • Identifies problem • Conceptualizes solution • Create

Step 1: Problem Recognition • Initiator • Identifies problem • Conceptualizes solution • Create initial decision criteria set

Step 2: Information Search • Two levels of search • Heightened awareness. Active information

Step 2: Information Search • Two levels of search • Heightened awareness. Active information search • Various levels of engagement • Limited problem solving … Extensive problem solving • The higher the stakes, the more involved the information search

Where would a young family look for information on a new community?

Where would a young family look for information on a new community?

Step 3: Evaluation of Alternatives Total Set Awareness Set Consideration Set Choice Set Decision

Step 3: Evaluation of Alternatives Total Set Awareness Set Consideration Set Choice Set Decision

Evaluation of Alternatives = Attributes Buyer selects and evaluates on attributes ◦ Salience ◦

Evaluation of Alternatives = Attributes Buyer selects and evaluates on attributes ◦ Salience ◦ Beliefs ◦ Image ◦ Utility Marketing communication attempts to impact these aspects of the attribute

Expectancy Value Model of Evaluation SALIENT ATTRIBUTES • Affordable housing • High test scores

Expectancy Value Model of Evaluation SALIENT ATTRIBUTES • Affordable housing • High test scores • Strong elementary • Small graduating class • In-town bus

Evaluation of Alternatives WOODBURN SCORE = ATTRIBUTE SCORE(IMPORTANCE)+ ATTRIBUTE SCORE (IMPORTANCE)… Affordable housing High

Evaluation of Alternatives WOODBURN SCORE = ATTRIBUTE SCORE(IMPORTANCE)+ ATTRIBUTE SCORE (IMPORTANCE)… Affordable housing High test scores Attribute Score Importance Woodburn 5 (. 4) =2 10 (. 3) =3 Strong elementary 8 (. 2) =1. 6 Small graduating class 7 (. 1) =4. 9 In-town bus 9 0 =0 Woodburn Score 11. 5

Evaluation of Alternatives BUYERS COMPARE SCORES ACROSS ALL CANDIDATES IN THE CONSIDERATION SET Woodburn

Evaluation of Alternatives BUYERS COMPARE SCORES ACROSS ALL CANDIDATES IN THE CONSIDERATION SET Woodburn Springfield Little Creek Affordable housing 2 4 4 High test scores 3 1 2 Strong elementary 1. 6 . 5 1 Small graduating class 4. 9 1 4 0 0 In-town bus 0 11. 5 7. 5 11. 0

Changing Attribute Valuation • Alter the attribute • Alter beliefs about competitor attributes •

Changing Attribute Valuation • Alter the attribute • Alter beliefs about competitor attributes • Alter weights • Call attention to neglected attributes • Shift buyer’s ideals

Step 4: Purchase Decision • Perceived risk related to decision • Attitudes of others

Step 4: Purchase Decision • Perceived risk related to decision • Attitudes of others ◦ Influencer ◦ Approver ◦ User

Step 5: Post Purchase Behavior Satisfaction = Expectation – Perceived Performance Buyer’s Remorse Disconfirmed

Step 5: Post Purchase Behavior Satisfaction = Expectation – Perceived Performance Buyer’s Remorse Disconfirmed Expectations

Post Purchase Behavior SATISFIED DISSATISFIED Positive public reviews Negative public reviews Recommendations to others

Post Purchase Behavior SATISFIED DISSATISFIED Positive public reviews Negative public reviews Recommendations to others Disengagement in community Engagement in community Negative engagement in community

Wrap Up

Wrap Up

Institutional Community Stakeholders Local Public Sector City Managers Urban Planner K-12 School District Economic

Institutional Community Stakeholders Local Public Sector City Managers Urban Planner K-12 School District Economic Development Agencies Infrastructure Agencies Technical Colleges & Universities Public Utilities Local Private Sector Real Estate Developers & Agents Architects & Designers Financial Institutions Chambers of Commerce Visitors & Convention Bureau Unions Private Utilities Regional County & State Officials Economic Development Agencies Regional Tourist Boards National/International National Unions National Corporations Federal Agencies & Bureaus Multinational Corporations International Chambers of Commerce Residents

Problem Recognition Product Price Attributes? Costs? Place Promotion Spaces? Communication?

Problem Recognition Product Price Attributes? Costs? Place Promotion Spaces? Communication?

Identifying Target Market Geographic Behavioral Lifestyle/Psychographic Demographic

Identifying Target Market Geographic Behavioral Lifestyle/Psychographic Demographic

Buyer Behavior Problem Recognition Information Search Evaluation of Alternatives Purchase Decision Post. Purchase Behavior

Buyer Behavior Problem Recognition Information Search Evaluation of Alternatives Purchase Decision Post. Purchase Behavior

Evaluation of Alternatives Total Set Awareness Set Consideration Set Choice Set Decision

Evaluation of Alternatives Total Set Awareness Set Consideration Set Choice Set Decision

For More Information Kristin Runge, M. S. Community Marketing Specialist University of Wisconsin Extension

For More Information Kristin Runge, M. S. Community Marketing Specialist University of Wisconsin Extension The Lowell Center 610 Langdon Street Madison, WI 53706 (920) 851 -0213 kristin. runge@ces. uwex. edu Twitter @Runge. Kristin

Sources Kotler, P. , Hamlin, M. A. , Rein, I. , & Haider, D.

Sources Kotler, P. , Hamlin, M. A. , Rein, I. , & Haider, D. H. (2002). Marketing Asian places: attracting investment, industry, and tourism to cities, states, and nations. The Free Press, New York, NY. Baker, Bill. (2007). Destination branding for small cities: The essentials for successful place branding. Creative Leap Books, Portland OR.