Stakeholder Centered
Community Marketing
Kr i st i n R u n g e , M . S .
C o m m u n i t y M a r ke t i n g S p e c i a l i st
C e n t e r fo r C o m m u n i t y & Ec o n o m i c D e v e l o p m e nt
k r i st i n . r u n g e @ c e s . u w ex . e d u ; Tw i tt e r @ R u n g e Kr i st i n
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
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
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 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.
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
◦
◦
◦
◦
Professionals
Skilled & Unskilled Workers
Investors & Entrepreneurs
Wealth Holders & Community Anchors
Visitors
◦ Business Visitors
◦ Tourists & Travelers
Business & Industry
◦
◦
◦
◦
Traditional Manufacturing Firms
Tech Industry Firms
Service Industry Firms
Entrepreneurs
Export Markets
◦ Regional & National Partners
◦ International Partners
Community Brand
Residents & Workers
Visitors
Business & Industry
Export Markets
Community Brand
Marfa, TX
Spring Green, WI
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
•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
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 life
in a community
Concerned with maximizing the profitability of
a community
Not
Mutually
Exclusive
Stakeholder vs. Commerce Centered
STAKEHOLDER CENTERED
COMMERCE CENTERED
An aspect of the community worth
patronage
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 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
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 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
High Parent Satisfaction
Strong Elementary Curriculum
Above Average ACT Scores
Nationally Recognized Foreign
Language Program
Low Property Taxes
Product
Price
Incomplete AP course
offerings
Few rental units
High daycare costs
Low housing stock
Place
Promotion
Aging Population
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
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
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 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
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
HIGH COST DAYCARE
Tactic:
Tactic:
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
Identifying Target Market
Geographic
◦ Segmenting based on proximity to community,
or location within community
Lifestyle/Psychographic
◦ Segmenting based on a particular stage in life or
lifestyle choice
◦ Consumers living within 5 miles of downtown
◦ Millennials looking to purchase a first home
◦ Residents within the school district
◦ Suburbanites with teenagers
◦ Local businesses searching for expansion space
◦ Retirees with second homes in Northern Wisconsin
Behavioral
◦ Segmenting based on attitude, knowledge,
usage rate, loyalty
Demographic
◦ Segmenting based on quantifiable characteristics
within a larger population
◦ Frequent restaurant patrons
◦ Upper income women ages 45 to 60 with professional jobs
◦ Green Bay Packer season ticket holders
◦ Teenage boys 14 to 18 living with their parents
◦ Visitors and tourists who vacation by car
◦ Men earning between $50k and $75k with children at home
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
Median Household Income: $84,000
Household Income: $67,000
College Degree: 37.7%
Both parents work
Typology of Buyers
Initiator
◦ Recognizes problem and takes
action
Influencer
◦ Involved at some point and exerts
influence
Decision Maker
◦ Has the authority to make final
decision
Approver
◦ Can approve or reverse the final
decision
Buyer
◦ Implements the final decision
User
◦ Consumes or uses the final
product or service
Purchase Process
Buyer Behavior
Problem
Recognition
Information
Search
Evaluation
of
Alternatives
Purchase
Decision
PostPurchase
Behavior
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 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?
Step 3: Evaluation of Alternatives
Total
Set
Awareness
Set
Consideration
Set
Choice
Set
Decision
Evaluation of Alternatives
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
• Strong elementary
• Small graduating class
• In-town bus
Evaluation of Alternatives
WOODBURN SCORE = ATTRIBUTE SCORE(IMPORTANCE)+ ATTRIBUTE SCORE (IMPORTANCE)…
Attribute
Score
Importance
Woodburn
Affordable housing
5
(.4)
=2
High test scores
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
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
0
11.5
7.5
11.0
In-town bus
Changing Attribute Valuation
• Alter the attribute
• Alter beliefs about 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
◦ Influencer
◦ Approver
◦ User
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
Disengagement in community
Engagement in community
Negative engagement in community
Wrap Up
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?
Identifying Target Market
Geographic
Behavioral
Lifestyle/Psychographic
Demographic
Buyer Behavior
Problem
Recognition
Information
Search
Evaluation
of
Alternatives
Purchase
Decision
PostPurchase
Behavior
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
The Lowell Center
610 Langdon Street
Madison, WI 53706
(920) 851-0213 [email protected]
Twitter @RungeKristin
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.