
Three CUES is a GDA Integrated Services' free electronic newsletter. In
each edition, we focus on only three items taken from our College &
University Environmental Scanning (CUES) and our
GDAIS research. Unlike most higher
education newsletters, Three CUES often looks beyond news about colleges
and universities to review greater social and marketing trends. Three
CUES not only provides information, but also offers observations and
recommendations concerning each topic.
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Inside This Edition:
Paul
F. Nunes, a senior research fellow at Accenture's Institute for
Strategic Change in Cambridge, is fascinated by the tier just below the
luxury class and the products and services that cater to the demographic
group he calls the "almost rich."
According to Nunes, the "almost rich" are not truly wealthy but manage
to rank in the top 20% of US earners, with incomes that hover around
$100,000.
While this group's income has risen, their spending is lagging as a
percentage of their income. One possible reason for this upscale
parsimony: this group tends to be frugal, focused on savings and
investments (The Millionaire Next Door by Stanley and Danko
confirmed this propensity). Nunes describes some of the products and
services that he feels have successfully targeted the "almost wealthy."
Mercedes, BMW, and Jaguar all now have models in the $30,000 range.
That's the luxury market attempting to reach down and pull some
customers from the "almost rich" crowd. Home Depot's Expo Design Center
stores are clearly focused on a group that can afford to spend more on
barbecue grills and floor lamps.
"The top quintile of earners is worth pursuing because they actually
have money to spend," Nunes said. "Much of the spending in the other
segments of the population is driven by credit card debt. That could go
away." (D.C. Denison, "Marketers May Be Missing the 'Almost Rich',"
The Boston Globe, 9/15/2002)
GDAIS Observations and Recommendations
There
are two lessons here. First, the "almost rich" tend to be frugal, which
on one hand could mean they have more disposal resources for their
children's college education, or it might mean a reluctance to spend the
money for a high-cost college or university.
The key to reaching them may be their interest in "value" and "perceived
luxury." A college or university that has a strong regional reputation
may be able to find the children of these people in their institution's
sphere of influence. Presenting your institution as "prestigious and
providing a good value" should be effective. If yours is a small
residential college, one way to present value is to describe your
institution as a "a total learning community" that values learning in
all its iterations both in and out of class. Obviously, intentional 24/7
learning experience implies greater value for the dollar. Of course, to
make this claim your institution has to recognize in some way (not
necessarily by academic credit) the learning that takes place in
extracurricular and co-curricular activities.
There
are forty Arthur Anderson accounting professorships, a half-dozen
Kenneth Lay chairs, and a number of Enron centers of education. We all
need to think about when the next executive or company may be exposed
for criminal activities. As scrutiny of corporate executives tightens,
many universities and colleges are confronted with the question of what
to do about money from "tainted" sources.
McGoldrick development consultants offers the following advice:
Investigate the gift. If there is no proven direct relationship
between the source of the funds in question and illegal activities and
if the funds were donated and receipted in compliance with
institutional policy, it is reasonable to believe that the funds
appropriately belong to the university. The university should also
cooperate fully with investigations by law enforcement agencies.
In
addition to dealing with gifts that may come from moneys of questionable
source, there is the issue of the continuing involvement of a trustee
who has been indicted. Though media and others may pressure an
institution to remove a trustee charged with criminal offences, a person
accused of these crimes seldom has time for continued service on boards
of trustees and he or she often resigns. This, in turn, allows the board
to appoint a replacement, thus protecting the institution from further
or potential embarrassment.
GDAIS Observations and Recommendations
What
then is the public relations strategy for addressing these issues?
- Know the facts. Often policies at a private university
allow it to decide whether to release the amount and conditions of
gifts. The policy at a public institution varies with the structure of
the university's fund-raising operation. Release only those facts that
are accurate and appropriately a part of the public record.
- Know the process. How an institution responds to an
issue is more a measure of its ethical stance than the fact that it
was confronted by the issue in the first place. If the institution is
undertaking a review, create a time-line and report the findings.
Leave discussions of the legal process to law enforcement agencies.
- Be humane. Endeavors by men and women are plagued by
frailty.
- Take the long view. Persons pilloried in the press
often have done great good. Few institutions have bulldozed Carnegie
libraries or rejected Rhodes scholarships.
In
research studies by GDA Integrated Services, we know that only about 15%
of the college-bound population describes "gaining a liberal arts
education" as essential in their choice of a college with another 20%
saying it is very important. We also gave college-bound students a list
of benefits and asked them how accurately they described the liberal
arts. The results of our research are included in the table below.
GDAIS Observations and Recommendations
While
liberal arts colleges are fond of saying that a liberal arts education
"teaches students how to think," fewer than half of college-bound
students say that is a "very accurate" benefit of the liberal arts. Your
institution has to remind prospective students of the benefits your
liberal arts curriculum provides.
Additionally, too often colleges and universities write about the
liberal arts in their admission publications as if the prospective
student knows why they are important. The key to the effective
positioning of your institution is to define complex concepts such as
the liberal arts in your own language. Doing this not only removes the
confusion about what your institution means but also forces the
competition to "live up" to your definition. If you do not define your
meaning of the liberal arts, you leave the definition up to a generally
ill-informed public.
Finally, it appears that institutions with a liberal arts curriculum
have to go an extra mile to convince college-bound students that they
provide excellent preparation for graduate school, offer strong
sciences, and can meet the needs of undecided students. Since in our
research more than six of ten college-bound students now expect to
attend graduate school sometime in their lives, linking a liberal arts
education to graduate school preparation is quite important. Of equal
importance is demonstrating that the liberal arts are a good way to find
a major field because they expose students to a variety of fields. Our
studies show that prospective students who have not decided on a major
tend to choose large public universities where there are many options
for a low cost.
GDA
Integrated Services is a market research, consulting and services firm
that specializes in customized, integrated marketing solutions that help
colleges and universities compete successfully for students, funding,
and visibility in the twenty-first century.
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