Headquarters U.S. Air Forces in Europe “Bring Your Courage” Marketing and Commercial Sponsorship Mandy Smith-Nethercott USAFE/A7SPM 1 Topics Why Market? Marketing’s Role in Services Keys to a Successful Services Marketing Plan Sponsorship & Advertising USAFE Services Programs/Promotions AFSVA Programs/Promotions References 2004 AF Customer Feedback USAFE Results “Bring Your Courage” 2 Why You Need to Market What the Competition is Doing % Est. Annual Revenues Spent on Sales & Marketing 3% Less than 1% 45% 1%-5% 25% 22% 5% 6%-10% 11%-20% More than 50% “Bring Your Courage” 3 Why You Need to Market Sales are Not Made on Price Alone What’s Most Important in Buying Decisions Best Quality Fair Price for Quality Ease of Purchase With no Hassles Great Customer Service Lowest Price No Market Leader is the Lowest Price Brand “Bring Your Courage” 4 Why You Need to Market Audiences Forget 90% of What They See Within 2 Weeks Power of Repetition Creates Top-of-Mind Awareness It Takes 22 Impressions to Move the Mind From Total Apathy to Purchase Readiness “Bring Your Courage” 5 Why You Need to Market Existing Customers are the Most Likely Source of Referral and the Only Source of Repeat Sales 60% of Your Marketing Effort Should Be Here It is 6 Times More Expensive to Attract a New Customer as it is to Keep a Current Customer “Bring Your Courage” 6 Your Marketing Partner “Bring Your Courage” 7 Marketing’s Role in Services Partnership is the Key Include your Marketing Partner/Director in Planning Meetings/Staff Meetings/Flight Meetings “Bring Your Courage” 8 Where Marketing Fits in the Organizational Structure Commander/Division Chief Deputy (Note 1) Admin Orderly Room HRO (Includes all Ed & Tng) (Note 2) Marketing Combat Support Flight Community Support Flight Business Operations Flight Family Member Programs Flight Resource Mgt Flight Food Service Mortuary Fitness Lodging Readiness & Plans Libraries Linen Exchange Laundry Skills Dev Aero Clubs Outdoor Rec Rod & Gun Marinas Recreation Pools Information Ticket & Tours Clubs Aero Clubs Golf Bowling Civilian Welfare Funds (Restaurant & Outlets) Retail Vet Clinic Child Development Center Youth Program Family Child Care School Age Program Community Center Slot Pgm Mgt NAF Mgt NAF Payroll NAF Purchasing APF Mgt Systems Support Logistics Private Orgs (Note 4) (Note 3) Notes: (1) Deputy is responsible for facility projects (APF & NAF) (2) With approval from the MAJCOM, bases may realign the training function directly under the Commander/ Deputy with an office symbol and organizational structure code (OSC) of SVT (3) Business Operations Flight combines with Community Support at medium bases (military population between 1K and 5K) (4) Family Member Support Flight and Business Ops Flight combine with Community Support Flight at small bases (population less than 1k) “Bring Your Courage” 9 Marketing’s Role in Services Make Flyers? Change Take Marquee Letters? Pictures? Do PowerPoint Slides for Commander? Not even close! “Bring Your Courage” 10 Marketing’s Role in Services Develop, Implement & Analyze Market Research Corporate PRISM Customer Feedback Local Surveys Develop Marketing Goals, Objectives and Strategies Make Marketing a Key Team Partner “Bring Your Courage” 11 Marketing’s Role in Services Advise Managers on Marketing and Promotional Strategies Identify Target Markets Determine Effective Ways of Reaching Those Markets “Bring Your Courage” 12 Marketing’s Role in Services •Determine Effectiveness of Current Initiatives •Measurements/Goals •People, Participation •Dollars, Register Rings “Bring Your Courage” 13 Marketing’s Role in Services Plan and Implement Marketing, Promotional and Publicity Campaigns for Flight- and Squadron-wide Events “Bring Your Courage” 14 Marketing’s Role in Services Coordinate Implementation of Marketing Plans Obtain Sponsorship to Support Events Utilize Advertising Program to Offset Costs of publishing “Bring Your Courage” 15 10 Steps To An Effective Services Marketing Plan Step 1 - Identify trends and examine your local environment Step 2 - Examine potential opportunities and threats to your program Step 3 - Determine the strengths and weaknesses of your program Step 4 - Ask yourself, “What business am I in?” Step 5 - Identify who your customers are and what they need Step 6 - Identify your marketing goals Step 7 - Determine the best marketing mix Step 8 - Select appropriate marketing strategy Step 9 - Develop a plan of action Step 10 - Monitor program and evaluate results – revise as appropriate “Bring Your Courage” 16 AF Corporate PRISM “Bring Your Courage” 17 Corporate PRISM Weighted survey answers representative of entire base population Survey accomplished every 2 years Next data available end 2005 Used to define AF leisure markets Provides demographics, market size/share, and improvements 13 facility/program areas in survey “Bring Your Courage” 18 Corporate PRISM charts define installation’s population characteristics Demographics Market analysis charts evaluate market size and share of installation’s programs/activities charts identify customers’ wants and needs and the potential gains Improvements Detailed inquiry charts give the frequency and location of visits “Bring Your Courage” 19 Corporate PRISM Used by managers to assess customer needs, increase participation, and make sound business decisions Groundwork In-house for additional research surveys Focus groups Needs assessment studies “Bring Your Courage” 20 AF Customer Feedback “Bring Your Courage” 21 Customer Feedback Benefits Assess satisfaction Prioritize problem areas Develop marketing strategies Baseline for comparison of previous years’ data “Bring Your Courage” 22 Customer Feedback Annual measurement of customer satisfaction Analysis tool for managers “Bring Your Courage” 23 Customer Feedback Measurement Variables Customer Service Facilities Equipment Value Overall Activity Rating “Bring Your Courage” 24 Customer Feedback Overall Services Grade Satisfaction/Importance Attributes Demographics “Bring Your Courage” 25 AF Customer Feedback Comparison of Annual AF Findings FY04 FY03 FY02 Customer Service 83% 83% 82% Facilities 80% 80% 80% Equipment 80% 80% 79% Value 81% 80% 80% Overall Activity 81% 80% 79% Overall Services 74.49 73.65 73.40 Results indicate a slight but steady increase in satisfaction “Bring Your Courage” 26 Customer Feedback FY04 AF Activity Averages Program Service Facility Equipment Value Overall Library 88 81 81 90 84 Fitness 85 82 84 92 84 Dining Facility 85 85 83 84 84 Arts & Crafts 86 81 82 82 83 Golf Course 86 82 82 82 83 Outdoor Rec 85 80 81 83 82 ITT 85 80 81 81 82 Rec Equipment 85 79 79 82 81 Bowling Center 83 80 79 83 81 Child Development 83 85 85 75 81 Auto Skills 83 79 80 83 81 Youth Programs 82 79 79 77 79 Officers’ Club 80 80 78 72 76 Club Dining 79 78 77 71 75 Enlisted Club 79 77 76 73 75 “Bring Your Courage” 27 Local Surveys Provide Customer Satisfaction Reviews Program Specific Feedback Targeted Concern Feedback “Bring Your Courage” 28 Local Surveys Interactive Customer Evaluation (ICE) FREE Web-based electronic comment card system joyce.mussey@osd.mil Opinion Meters Comment Cards Paper Web “Bring Your Courage” 29 Commercial Sponsorship “Bring Your Courage” 30 “Bring Your Courage” 31 Sponsorship Designed to Help Enhance or Off-set Expense for Services MWR Programs Must be a Bona Fide Services Event Can Only be Used for “MWR” Elements Honor Guard, Lodging, Military Dining Excluded Does not Include Normal Day-to-Day Management and Overhead Operations Not a Budgeted Item “Bring Your Courage” 32 Sponsorship Does NOT include Internal Services Events Conferences Evaluation Ice Breakers (LeMay, Eubank, Gold Key, Hennessey, etc.) Organizational Not Parties, Retirements, etc. Authorized for Other AF Organizations Private Organizations “Bring Your Courage” 33 Sponsorship Approval Levels SV Up to $5K Installation CC Up to $25K MAJCOM SV UP to $50K MAJCOM CV $50K-$100K HQ Per AFSVA/CC $100,000+ Sponsorship Agreement “Bring Your Courage” 34 Your Role in Sponsorship Potential Sponsor Hit List Vendors Suppliers Plan Ahead Clear Communication of Needs with Marketing Return on Investment Sponsor Recognition Receives Promised Exposure “Bring Your Courage” 35 Sponsorship Vs. Donations P.O.s prohibited from soliciting as official representatives of DoD, USAF, etc. Any Organization May Accept Donations Wives’ Very Club, CGOC, Squadrons Limited Recognition Reference AFI 34-201 for approval levels and limits “Bring Your Courage” 36 Private Organizations Help in the Education Process Topic for Annual Letter to PO’s Monitor Private Fund Raising Activities Organization AFI 34-223 “Bring Your Courage” 37 Advertising Program AFMAN 34-416 Authorizes Advertising for “Open to Public” Events in Civilian Media “Bring Your Courage” 38 Advertising Program Purchasing Event Advertising Must be Open to Public Cannot Compete with Similar Event Held in Local Community Must be Infrequent In-kind Advertising and/or Funds Designated for Advertising under Commercial Sponsorship is permitted Must Coordinate with Public Affairs “Bring Your Courage” 39 Advertising Program Can use NAF/Sponsorship Dollars to Purchase Restricted Media (Military Audience) for Services Programs Example AF Times Must use NAF Dollars to Purchase Ads Required for Solicited Sponsorship Package “Bring Your Courage” 40 Advertising Program Selling Advertising Space Avoid Competition with Public Affairs Only sell on NAFI Funded Media Must be Unique to Services Examples Club Calendars Ball Field Fences Message and Menu Boards Golf Tee Signs Services Magazine “Bring Your Courage” 41 USAFE Services Programs/Promotions “Bring Your Courage” 42 USAFE Specific Programs/Promotions Extreme Summer Project CHEER USAFE Idol Air Force Birthday Bash USAFE Club Membership Drive USAFE Youth of the Year USAFE Youth/Teen Talent Contest Youth/Teen Camps “Bring Your Courage” 43 AFSVA Programs/Promotions Highlights Football Frenzy AF Club Membership Drive Tops In Blue Stars and Strikes Bowling Promotion “Bring Your Courage” 44 References AFI 34-264 Services Marketing and Publicity Program AFI 34-407 Commercial Sponsorship Program AFMAN 34-416 Commercial Sponsorship and Sale of NAFI Advertising Procedures AFI 34-223 Private Organizations AFI 36-3101 Fund Raising within the AF Para 19 AFI 34-201 Use of Nonappropriated Funds (NAFS) Chapter 5.7. “Bring Your Courage” 45 Air Force 2004 Quality of Customer Service Customer Feedback Survey Results “Bring Your Courage” 46 Aviano “Bring Your Courage” 47 Croughton “Bring Your Courage” 48 Fairford “Bring Your Courage” 49 Incirlik “Bring Your Courage” 50 Izmir “Bring Your Courage” 51 Lakenheath “Bring Your Courage” 52 Mildenhall “Bring Your Courage” 53 Molesworth “Bring Your Courage” 54 Moron “Bring Your Courage” 55 Lajes “Bring Your Courage” 56 Ramstein “Bring Your Courage” 57 Rhein Main “Bring Your Courage” 58 Sembach “Bring Your Courage” 59 Spangdahlem “Bring Your Courage” 60 Stavanger “Bring Your Courage” 61 Quality of Facility “Bring Your Courage” 62 Aviano “Bring Your Courage” 63 Croughton “Bring Your Courage” 64 Fairford “Bring Your Courage” 65 Incirlik “Bring Your Courage” 66 Izmir “Bring Your Courage” 67 Lakenheath “Bring Your Courage” 68 Mildenhall “Bring Your Courage” 69 Molesworth “Bring Your Courage” 70 Moron “Bring Your Courage” 71 Lajes “Bring Your Courage” 72 Ramstein “Bring Your Courage” 73 Rhein Main “Bring Your Courage” 74 Sembach “Bring Your Courage” 75 Spangdahlem “Bring Your Courage” 76 Stavanger “Bring Your Courage” 77 Quality of Equipment “Bring Your Courage” 78 Aviano “Bring Your Courage” 79 Croughton “Bring Your Courage” 80 Fairford “Bring Your Courage” 81 Incirlik “Bring Your Courage” 82 Izmir “Bring Your Courage” 83 Lakenheath “Bring Your Courage” 84 Mildenhall “Bring Your Courage” 85 Molesworth “Bring Your Courage” 86 Moron “Bring Your Courage” 87 Lajes “Bring Your Courage” 88 Ramstein “Bring Your Courage” 89 Rhein Main “Bring Your Courage” 90 Sembach “Bring Your Courage” 91 Spangdahlem “Bring Your Courage” 92 Stavanger “Bring Your Courage” 93 Value for Price Paid “Bring Your Courage” 94 Aviano “Bring Your Courage” 95 Croughton “Bring Your Courage” 96 Fairford “Bring Your Courage” 97 Incirlik “Bring Your Courage” 98 Izmir “Bring Your Courage” 99 Lakenheath “Bring Your Courage” 100 Mildenhall “Bring Your Courage” 101 Molesworth “Bring Your Courage” 102 Moron “Bring Your Courage” 103 Lajes “Bring Your Courage” 104 Ramstein “Bring Your Courage” 105 Rhein Main “Bring Your Courage” 106 Sembach “Bring Your Courage” 107 Spangdahlem “Bring Your Courage” 108 Stavanger “Bring Your Courage” 109 Overall Assessment “Bring Your Courage” 110 Aviano “Bring Your Courage” 111 Croughton “Bring Your Courage” 112 Fairford “Bring Your Courage” 113 Incirlik “Bring Your Courage” 114 Izmir “Bring Your Courage” 115 Lakenheath “Bring Your Courage” 116 Mildenhall “Bring Your Courage” 117 Molesworth “Bring Your Courage” 118 Moron “Bring Your Courage” 119 Lajes “Bring Your Courage” 120 Ramstein “Bring Your Courage” 121 Rhein Main “Bring Your Courage” 122 Sembach “Bring Your Courage” 123 Spangdahlem “Bring Your Courage” 124 Stavanger “Bring Your Courage” 125 Satisfaction “Bring Your Courage” 126 Aviano “Bring Your Courage” 127 Croughton “Bring Your Courage” 128 Fairford “Bring Your Courage” 129 Incirlik “Bring Your Courage” 130 Izmir “Bring Your Courage” 131 Lakenheath “Bring Your Courage” 132 Mildenhall “Bring Your Courage” 133 Molesworth “Bring Your Courage” 134 Moron “Bring Your Courage” 135 Lajes “Bring Your Courage” 136 Ramstein “Bring Your Courage” 137 Rhein Main “Bring Your Courage” 138 Sembach “Bring Your Courage” 139 Spangdahlem “Bring Your Courage” 140 Stavanger “Bring Your Courage” 141 “Bring Your Courage” 142