Marketing Summer Session Course Covers the Bases from Government to Business and Nonprofits

Marketing Summer Session Course Covers the Bases from Government to Business and Nonprofits
"Marketing Management in the Government, Business and Nonprofit Sectors," was developed in 2011 at the suggestion of students who indicated that these skills would enhance their performance in summer internships and their belief that future leaders, as "walking billboards" for their organizations, they needed to understand basic marketing communication concepts. The course, taught by Constance Rossum, introduces students to "customer-centered" marketing concepts, as well as research and copy testing methods that gauge the effectiveness of communication strategies before they are executed.
Rossum uses case studies ranging from Zappos' service orientation, Ford Fiesta's use of social media, the Clinton-Obama YouTube campaign, Coca-Cola's "New Coke" fiasco, and brand "Oprah," to highlight marketing successes and failures.
She adds, however, that one only needs to read recent headlines to see the range of marketing, political and policy challenges facing leaders today: Apple (accused wrongly) of horrific labor conditions in China; the highly regarded Susan B. Komen Foundation's decision to discontinue funding Planned Parenthood is met with passionate donor reaction (on both sides) and the resignation of a valued staff member; the beloved Penn State coach Joe Paterno and the university president are forced to resign after the revelation of Jerry Sandusky's years of the sexual abuse of young athletes; and more recently, a former derivatives salesman very publicly accuses Goldman Sachs of "duping its clients" and fostering a climate of "moral and ethical deterioration." And, who has forgotten the "Tiger Woods incident?"
According to Rossum, these organizations and individuals had powerful "brand equity" earned after years of hard work by many individuals on behalf of their customers. She predicts that most organizations and public figures will face customer, employee and media scrutiny. This course explores the steps needed to restore trust and value to the "product" when reputation is damaged, as well as how to develop and nurture upfront what McKinsey executives have concluded: "We are all marketers now."
Rossum's outcome for the course is "that students will understand that effective marketing provides and communicates value to the customer both ethically and profitably.
*** CMC: Marketing courses are usually connected with business schools. Why do you believe students in the liberal arts, government, leadership and nonprofits can benefit from this study as well? Rossum: Marketing communications is the business of anyone who wants to get his message across effectively. President Obama was named "Marketer of the Year" in 2008 by Advertising Age, largely for his ability to connect with various voter segments and his brilliant use of social media. (The Ford Motor Company was chosen as winner in 2010.) BP's CEO was criticized for his poor crisis management skills following the oil leak. World Vision's president, Rich Stearns, succeeded in crafting a rationale to wary donors that helped support its new Project Hope AIDS initiative in Africa.
Peter F. Drucker, the "father of modern management" described management as "one of the liberal arts." He taught that the first responsibility of leaders is to "define the mission and communicate it clearly" to their primary and supporting customers. So, whether you are trying to influence customers to purchase a particular product, vote for a specific candidate or ballot measure, or convince individuals to change their destructive behavior effective marketing skills are needed. Understanding marketing can also make us better consumers and informed citizens. CMC: What would be some good examples of ethical problems in marketing? Rossum: Besides those described earlier in the course introduction, there are many questions that lead to interesting discussions. For example, is it "unethical" to market to children (e.g., a toy in a McDonald's Happy Meal)? Or, is it an extension of the experience parents choose to give their children? Consider that "word-of-mouth," even among children, is a powerful influencer. Clothing brands and make-up for tween girls are promoted by the users themselves.
Consumers are led to believe that the "truth in advertising" standard applies to all advertising. While commercial companies are restricted from making false claims about their products or their competition at significant risk, candidates and elected officials are not held to the same standards, as their statements and advertisements are considered "political speech" under the protection of the First Amendment. The ethics of marketing a position take on even more complexity when you are trying to sort out the "truth" of the dangers of global warming or the benefits of Obama Care. And, as Public Relations has become an increasingly important part of what we call "Integrated Marketing Communications," how the media presents rival positions significantly affects public perception. CMC: Is there a big, demonstrable difference in marketing strategies for for-profit companies and non-profit companies, or are the principles the same? Rossum: The principles are the same so far as effective marketing strategies are research-based, customer-centered, and focus on delivering value. We used to talk about the "4Ps" Product, Price, Place and Promotion. Today, given the importance of the service sector, we recognize at least three additional "Ps" People, Process and Physical Evidence. All of these are touch points for effective marketing. CMC: Tell us about your own marketing experiences. Are there successful campaigns with which you have been involved? Rossum: As an Account Executive at Leo Burnett Advertising, my job was to help introduce "Chicken McNuggets." Students today do not know of life pre-nuggets but it was truly a new product/form that McDonald's developed and our agency needed to introduce successfully. I tell a lot of behind-the scenes stories in class, including why McNuggets were almost "killed" early on despite their popularity. One I can share is that McRib, not McNuggets, was supposed to be "the star," but our research indicated that McRib was more an occasional taste and not one we could justify selling daily. Our recommendation then (and a tactic that is still practiced today) was to reintroduce McRib at different times throughout the year for an extra sales bump.
As Director of Marketing for Marriott-Host International, I was part of the team that helped reconfigure airports (we serviced 55 major airports) to improve the food service offerings and merchandising. Our goal was to enhance the airport experience. Over the years, we needed to work around deregulation, embrace the increases in passenger traffic (no longer primarily the business traveler), union issues, security challenges, and the rise and fall of various airlines (e.g., Hello Southwest and Good bye Eastern).
I have very fond memories of working with the late Ruth Fertel (the "Ruth" of Ruth's Chris Steak House) and her staff in developing their national marketing plan. Part of the lessons learned for marketing students is the necessary evolution of a marketing plan as the social, cultural, technological environment changes. (I share this case in class so students can understand how research among key segments leads to informed decisions and effective marketing plans when each group has a "very different idea on how to proceed.")
I feel very blessed to have had the opportunity to know Peter and Doris Drucker; he served as an advisor on my Ph.D. dissertation, which built upon my work developing what is known the "Drucker Tool." In 1997, I received the Drucker Management Center's Alumni Award for Outstanding Entrepreneurship. My current CMC Management and Leadership classes introduce students to Drucker's "Five Most Important Questions" as a framework for organizational planning and accountability. This summer course shares lessons learned from years of consulting on how organizations in the public, private and social sectors can improve their marketing effectiveness. CMC: Why are Peter Drucker's Principles of Management so important in a marketing course? Rossum: This is best explained by reviewing Drucker's "Five Most Important Questions": What is your business? (mission); Who is your customer? (primary and supporting); What does the customer consider value? (not what you think he ought to value); What have been the results (of the way you have been managing/marketing the enterprise)?; What is the plan? (Given the way you/staff/board have answered these questions, what are the next steps?).
Drucker acknowledged that these five questions were "simple, but not simplistic," and that they took a great deal of thought to answer. Consider that before organizations (business, government or nonprofit) develop a business and marketing plan, they need first to have thought through these important questions and get agreement on each before developing specific programs, products, campaigns. CMC: This is a presidential election year. Will political communication be part of class discussion?
Rossum: This is an exciting time to study marketing in the political arena. Each Republican hopeful needs to craft positions that differentiates himself, that are meaningful to the voters, that he is competent to execute and win bi-partisan support, and whose results can be measured against his promises. For President Obama, the question will be: are American voters sufficiently satisfied to repurchase product "Obama?" Or, will they be seeking "new" and "improved." In class, we will be examining some of Dr. Frank Luntz' work on both parties/candidates' advertising and how various voter segments are responding and why. CMC: In a nutshell, what's the best bit of instruction you ever received about marketing either on the job or in class? Rossum: There are several. The first is from Leo Burnett, the founder of the major Chicago- based advertising agency that bears his name. Our mission was "reaching for the stars" a customer-centered ethical approach to marketing for our clients, including P & G, Kellogg, McDonald's, United Airlines, Pillsbury, Green Giant, etc. As Leo put it:"We may not actually reach the stars, but we won't end up with a handful of mud either." (His was the folksy, mid-western approach the anti-Mad Men of Madison Avenue popularized on TV today.)
Next was Bill Marriott's constant reminder that "If we take good care of our employees (internal marketing), they will take good care of our customers (superior service.) At 80 years' old, Bill still visits the kitchen staff and the laundry rooms when he stops by any Marriott hotel.
Finally, there is Drucker's definition of marketing: "To make selling' superfluous." If you need a good example, consider AFLAC. The duck opens doors for the field staff who do not have to explain who they are and what they do.
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