Slide 1:Rajeev “M” Dhawan Director Office: 404-651-3291 email: rdhawan@gsu.edu web: www.robinson.gsu.edu/efc Successful Marketing of Research Centers Presented at the 58th AUBER Fall Conference Tucson, Arizona October 19, 2004


Marketing of a Center :Marketing of a Center Be in business, ala self-sufficiency Revenues strategies Message Consistency Analysis & Targeting of Customers Get media profile --Loss leader strategy/products Media trips to DC, NY etc. Build bridges with academia Solely a function of “your” creativity


Challenges of a Changing Revenue Model :Challenges of a Changing Revenue Model Unlike in the past, when data collection was costly and thus valuable to reprocess and sell by itself, the emphasis is now on the proprietary economic analysis and forecast that is sold to generate revenues as data has become a public commodity. Being a state university unit funded partially by tax dollars, there exists the expectation that the Center’s products should be available free-of-charge. Thus, conferences and forecast booklets are considered by many to be a public good. Obtaining sponsorship funding, which forms the bulk of the Center’s external revenues, depends critically on the external visibility of the Director, who happens to be the only economist on the team.


EFC Marketing Strategies :EFC Marketing Strategies Create consistent marketing message Information Conferences (Qtr.) Forecast Booklets Website Presence


EFC Marketing Strategies :EFC Marketing Strategies Analysis - Get to know your customers Categorize them Who buys our booklets and/or comes to our conferences? 75% businesses  20% students/professors 5% press What size businesses? 45%   small businesses 35%   large public companies 5%   medium-sized companies What Industries? 20%   Education 15%   Real Estate 10%   Services 10%   Government


Slide 7:Other* = One person each from Engineering, Hospitality, Insurance and n/a


EFC Marketing Strategies :EFC Marketing Strategies Conference Preparation Brochures (4 weeks prior) Emails 1x/week (4 weeks prior) RA phone calls to “Pay” people in database 1,000 calls made over 3 weeks Success rate 1.1%


EFC Marketing Strategies :EFC Marketing Strategies Analysis - Get to Know Your Customers Track buyer behavior at conference 20% of people who register are no-shows 35% of comp people were no-shows 50% of students were no-shows 75% of audience has attended before Low booklet subscriber attendance Implement strategies No show problem Require comps to register online Inform students of $25 no-show charge Repeat attendees Call previous attendees from last two years to remind them Low booklet subscriber attendance Send letter about free conference ticket, follow-up call


EFC Marketing Strategies :EFC Marketing Strategies Analysis - Get to know your customers Survey opinion of products Conference rating always high Rajeev’s speech gets high marks Varying industry speakers a BIG plus But some problems revealed and addressed: Want more Q&A Coffee area too crowded Make slides easier to read Give us color slides (no can do - but we will post online the day before for audience to print out in color)


EFC Marketing Strategies :EFC Marketing Strategies Target Most Probable Clients Surprise Trial and Error Investment/Financial firm campaign – disaster AUBER members ? Libraries and local government - success Methods Letters Follow-up RA phone call 2nd letter 3 months later Repeat conference customers Encourage to buy subscription


Strategies to Achieve Fiscal Balance :Strategies to Achieve Fiscal Balance Sell more Center Products -Paying conference attendees -Forecast booklets 2. Raise price of products 3. Seek more Sponsorship/Corporate Funding


Viability of Selling More/Raising Prices :Viability of Selling More/Raising Prices --Intense selling efforts have resulting in EFC now selling 25% more booklets compared to FY2001 --Prices raised in Feb 2002, and then again in May 2004; total increase over 3 years of ~ 100%. --”New paying customer” attendance in last 2 conferences has correspondingly declined in light of latest price increase Conclusion: Raising prices no longer viable strategy. Forecast booklet and conference product now seem to be unit elastic (see chart on next page)


Box Shows the 50% Drop of New Paying Customers for the May & August 2004 Conference Caused by the Latest Price Hike :Box Shows the 50% Drop of New Paying Customers for the May & August 2004 Conference Caused by the Latest Price Hike 1st Price Hike 2nd Price Hike


Sponsorship/CorporateDonation :Sponsorship/CorporateDonation Sponsorship: How you define it is critical. Pay according to ability is the key while also “discriminating” in services provided to them. Again, limits are there because of the public good perception and lack of resources. Corporate Donations: The cost is loss of credibility with the media unless they are “quiet” ones like sponsorships. Also, any donation is a one time event and not a recurring revenue base. It will help but solve the problem.


EFC Marketing Strategies :EFC Marketing Strategies


EFC Review 2003 :EFC Review 2003 Core Goals Collect economic data at the national, regional and local economy levels Provide consistent analysis of economic data Produce timely economic forecast and analysis reports Increase sponsorship, subscription and paying conference attendees so that the Center’s budget is self-sufficient Status/Achievements Data is collected consistently, with all 3 forecasts booklets being published on time In 2003, the Director was awarded the University of Arizona’s “Most Accurate US Forecaster” In 2003, FRB Atlanta acknowledged the Center as one of the most accurate in the Blue Chip Survey 100+ corporations and various government agencies use the forecast for their strategic planning and budgeting needs Since FY2001, the Center has increased sponsorship revenues by 60%, and overall revenues by 90% by initiating a price increase, as well as recruiting new clients. But, challenges remain due to the changing revenue model


EFC Review 2003 :EFC Review 2003 Post-2001 Goals Enhance the visibility of the Center and Georgia State University Foster relationships with the FRB Atlanta, the Governor’s Office, other national business research centers and GSU alumni Increase exposure to local and national media outlets Achievements 121 speeches 350+ media quotes 190 TV and radio appearances Go-To guy for the AJC, CNN, local TV, NPR and Charlotte Radio Participate in 12 forecast surveys Center profile article in NABE’s journal EFC@RCB brand is being built Member Governor’s Council of Economic Advisors 2 university sponsors - UCSB and UNO - use Center’s forecast FRB Atlanta calls upon the Director frequently for speeches and advice Speeches for GSU Real Estate, RCB and Exec. Ed. Alumni


EFC Review 2003 :EFC Review 2003 Post-2001 Goals Improve the quality and the attendance of the quarterly forecasting conferences Increase the interest and participation of Georgia State faculty at the conferences Improve the Center’s web presence Achievements Wall Street style conference is in place with a multiple speaker format (both from the academic as well as the business community) Attendance is up 300% in last the 3 years - from 70 to 200+; 75% attendees are from the business community; AJC regularly covers the conference proceedings (front page news story in Aug 2003!) 12 GSU faculty from RCB and AYSPS have spoken at the conference. 1/4th of the audience is faculty, students and staff of GSU. The Chancellor himself has attended, President Patton attends frequently, Provost and the RCB Dean do opening welcome remarks on a regular basis From almost no presence in 2000, the fully developed website even allows people to register online for the conferences


Proposed Solution for Fiscal Balance :Proposed Solution for Fiscal Balance 1. Invest in a state-funded economist to assist in the following: - Forecast Modeling - Global Productivity Developments - Local Demographic and Real Estate Trends - Analysis of Local City Budgets - Contract/Sponsor Requested Industry Analysis 2. Utilize freed up Director’s time for: corporate fund solicitation ($) consulting ($) contract research ($) elevate national visibility for EFC, RCB and GSU (PRICELESS!!)