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".,V 33,331.33..ch .3631 few ‘ j ‘ b0? {mil 1 mm ‘ 1101\530/ IIIIIIIIIIIIIIIIIIIIIIIIIIIIIII m lIHIUWIHIIIIHHH“Will!IIUHIWHIIHHUIUII 31293 00571 3296 LIBRARY Michigan State University This is to certify that the thesis entitled SOCIAL MARKETING: A PRACTICAL EXAMPLE CONCERNING THE DEPARTMENT OF RESOURCE DEVELOPMENT presented by Judith H. Wagner has been accepted towards fulfillment of the requirements for M-S- degree in erlopment Wfimw Major professor Date February 7, 1989 0-7639 MS U is an Affirmative Action/Equal Opportunity Institution MSU RETURNING MATERIALS: Place in book drop to remove this checkout from LIBRARIES . “ your record. FINES will be charged if book is returned after the date stamped below. ' i 19:79 35:5 6 7 122.5 «”31“ ‘ mvii‘” " JUN 17:1999 SOCIAL MARKETING: A PRACTICAL EXAMPLE CONCERNING THE DEPARTMENT OF RESOURCE DEVELOPMENT BY Judith H. Wagner A THESIS Submitted to Michigan State University in partial fulfillment of the requirements for the degree of MASTER OF SCIENCE Department of Resource Development 1989 (97 4C4!) ABSTRACT SOCIAL MARKETING: A PRACTICAL EXAMPLE CONCERNING THE DEPARTMENT OF RESOURCE DEVELOPMENT BY Judith H. Wagner Social marketing can adapt certain qualities of marketing theory as used in business. Service organizations view research and exchange from perspectives that may define marketing as a breech of their values and ethics. Educational institutions are searching for methods to survive the turmoil facing them today. ”Thus, can marketing be used successfully as a tool for an educational organization to more efficiently develop and deliver services to its clientele? The Strategic Planning Process Model, developed by Philip Kotler and Karen Fox, is used as a guide in examining how the Department of Resource Development could possibly benefit from the development of a long-range marketing plan. The history and the current activities of the Department of Resource Development are given credence in establishing the values from which they would build such a plan. ACKNOWLEDGEMENTS I want to thank my graduate study committee members for their considerable assistance, encouragement and support in my work here at MSU. Dr. Raymond D. Vlasin gave many suggestions and had much patience throughout the rewriting of this thesis. Dr. Frank A. Fear shared many insights of the inner workings of the Department of Resource Development. And Dr. R. Dale Wilson helped to enlighten the transition of marketing from business to service organizations. iii CONTENTS CHAPTER ONE: INTRODUCTION 1 The Problem 1 The Challenge 2 The Study Plan 5 CHAPTER TWO: MARKETING LITERATURE REVIEW 9 Concepts of Marketing 9 Social Marketing 14 Marketing Mix Challenges 19 Educational Marketing 24 Strategic Planning Process 29 CHAPTER THREE: HISTORY OF THE DEPARTMENT OF RESOURCE DEVELOPMENT 48 Conservation Institute 49 Department of Land and Water Conservation 55 Department of Resource Development 60 CHAPTER FOUR: RD DEPARTMENT--APPLICATION OF MARKETING THEORY 75 Enrollment Challenge 75 Environmental and Resource Analysis 76 Goal Formulation 84 Strategy Formulation 85 Organization Design 86 System Design 87 CHAPTER FIVE: MARKETING THE DEPARTMENT OF RESOURCE DEVELOPMENT 92 Initial Applications 93 Implications 112 Limitations 123 Recommendations 125 APPENDIX 131 REFERENCES 136 iv CHAPTER ONE INTRODUCTION T O M Social organizations are in turmoil these days because it is becoming harder and harder to meet the basic needs for survival. They watch similar organizations close their doors due to a redirection in federal program strategies and desperately begin a search for answers to their own lack of growth and efficiency and their threatened survival. The federal government has changed its focus enough to cause catastrophic cuts in federal funding for social programs. Demographics have changed across the country resulting in a smaller population growth with greater proportions of older and very young people. Organizations downsize by employing fewer people and offering fewer services. They try tactics to restrain their budget demands. Many organizations operate as if what has been provided in the past is what is best and what they should continue to provide rather than to search for methods that will position them at the center of the development process. 2 Education is one of the service organizations caught in this turmoil. Many elementary schools, located in various sized communities across the nation, have closed their doors. In the early eighties, high schools struggled with the survival problem. Now in higher education institutions, fewer full-time students are enrolling or staying in universities. At the same time, universities must contend with the burdens of receiving less money to provide education for those students who require financial assistance. Further, costs of operation are increasing, requiring students to pay higher tuition fees and living costs. Some universities have not been able to survive and others, cutting their budgets to the bone, are in the process of searching for more efficient ways to operate. THE CHALLENGE What can service organizations do? What actions are they taking? Better planning throughout the organizations is frequently the agreed approach to try. Program planning and budgeting is one organizational strategy that is widely used. But, in recent years, more and more service organizations are reporting success with a marketing approach which has initially been borrowed from the private sector. Administrators of service 3 organizations are becoming more interested in how marketing ideas might be relevant to the issues they are encountering. A marketing approach involves long-range planning with an orientation toward what the consumer needs and wants, not toward what the service organization wants to provide. Through a process of research, goal formulation, organizational structuring and evaluation, the organization has the opportunity to position itself most advantageously, in relation to its external environment, thus taking advantage of the available market share. Universities must be in tune with the changing needs of today’s students, particularly the older student returning to college, the student seeking specific technical skills and the part-time student. Universities must understand also the changing demands of an information era on the job market and the career education required. And, because the universities are seeking more funds externally, they must be ready to meet the needs of program clientele, alumni, foundations, large private donors and university involved groups. Only recently have administrators in the education field recognized the value of marketing concepts and strategies for effectively designing and delivering educational services and for developing and implementing education programs. Such concepts and strategies have not 4 been widely accepted in the past because they are often misperceived and misused. Probably the greatest misunderstanding about marketing is the wide-spread belief that it is a "hard sell" application. There exists a belief that marketers coerce people into buying things they don’t really need, and that advertising presents products in an unfair light- -making them appear irresistible or showing them perform better than they do. Universities typically have not considered marketing planning as an option. One reason given is that professors are "academics" who are not experienced with business and marketing. Typically, faculty who move up to administrative posts, bring only their academic ‘ background, not one of marketing or management. Today, as marketing is investigated, we are able to move beyond misconceptions about it and its usefulness. We discover that marketing is a process of analyzing the product from the consumer’s point of view and we investigate new operational procedures to institute such a process into the "business" of universities. This thesis explores the possibilities of a marketing approach, instituted as a planning process, for the Department of Resource Development at Michigan State University. The Department of Resource Development is at a time when it is facing the educational crises of fewer 5 students, higher costs and lower budgets. But R.D. is not like an educational program in "business administration"-- one that is more clearly defined: one that is more familiar. R.D. encompasses several disciplines and involves both interdisciplinary and multi-disciplinary activities. It represents a complex image. Telling about it involves conveying a complex message, neither easily told nor easily understood. It is not familiar to the potential student. IEE_§IQDX_BLAN The following chapters examine how the Department of Resource Development might better fit with, and establish beneficial exchange relations with, the external world around it--its markets and publics. In particular, the chapters address the various components of marketing-- social marketing--and ways in which the Department of Resource Development can take advantage of them. The chapters also address ways the department can adopt a marketing approach in the student recruitment and instructional aspects of its overall departmental mission. Chapter two provides a review of applicable marketing literature. It explores the theory of marketing, and more particularly market planning, and indicates how market planning can make major contributions to the operations of 6 both businesses and non-profit organizations. Because marketing practice has only recently become acceptable in the social field, applications--mainly trial and error approaches--are having to be carefully documented and analyzed. Documentation available shows that adjustments are necessary as marketing theory is applied to the planning and operation of service institutions such as universities. The literature strongly suggests that adjustments are required because the involved human factors--both the consumers and the marketers--and the structure of the organizations themselves, represent backgrounds or cultures vastly different than firms engaged in business. Chapter three provides a history of the Department of Resource Development. Tracing the history helps reveal the values, traditions and aspirations that have common cultural acceptance for the people of the Department of Resource Development. The department’s history reflects the character and heritage of the department. It shows the identities that exist to propagate its values. Historic studies of the department help predict what is required to manage change while keeping within these acceptable boundaries of values and culture--which are influential in the choice of marketing strategies. It is important to reveal that certain events happened over 7 time, but it is equally important to know why and how they happened. Chapter four explores, from a marketing perspective, the activities being conducted in the Department of Resource Development at the present time. Departmental efforts of recent years are addressing the issues of change, indicating the Department’s growing readiness to institute a formal long-range planning process. Finally, chapter five discusses alternative ways to apply central ideas of marketing in the Department of Resource Development. It addresses key concepts and their implications, and provides helpful guidelines for use in designing and delivering educational services. The challenge confronting the department is whether it can apply a broader, social meaning to "marketing", and not just perform marketing-like activities. The main hypothesis of this thesis is that the application of marketing concepts and theories to department decisions and actions, constitutes a viable means of meeting the changes it is facing. In a broader sense, the application of marketing in higher education will permit modern educational institutions to meet change in society and to provide more efficient educational services for society. Whether for the department or higher education, the change process will not be easy or 8 quickly accomplished, but the benefits of the efforts are well worth the struggle--for it means survival. Education is vital to individuals and to society, especially in this era of rapid change. The mission of higher educational institutions in helping individuals and the broader society is equally important. Given the obvious constraints on resources, educational institutions, such as the Department of Resource Development, must investigate ways to improve their educational roles and actions with limited resources. The application of marketing concepts and theories holds special promise. CHAPTER TWO MARKETING LITERATURE REVIEW MAR NG Marketing, in its broadest sense, occurs when people decide to satisfy their needs and wants through an exchange process. People involved in the exchange must feel that they are gaining by the outcome of the exchange. Those involved in the process offer something that is attractive to the others with whom they wish to bargain. "Exchange is the act of obtaining a desired product or benefit from someone by offering something in return." (Kotler, Fox: 1985:21) In marketing there is a distinct difference between needs and wants. This distinction is of as great an importance to the marketing process as it is in understanding product and service production. Needs include the necessities of life which a person must have in order to survive. Food, shelter, clothing, safety, and belonging are examples of basic needs. Wants, on the other hand, one can live without but contain a strong motivational force to satisfy the higher level needs of social affiliation and self esteem. For instance, the lO desire for learning may eventually motivate a person to enroll in a university. According to Abraham Maslow, when a need is satisfied it is no longer a motivator of behavior. If a higher level need has been satisfied, then some competing need becomes more potent. If a higher level need is continually blocked, a person may substitute behaviors or activities until some degree of success and goal attainment is achieved. (Hersey,etc.:1977:18) It is a common error for service institutions to sometimes confuse wants and needs, or to misunderstand that these are not static but are part of a continually changing process. Service providers may easily become preoccupied with what they have to offer and miss the customers’ real concerns, forgetting that the product or service offered must satisfy consumers’ wants. The commercial business field advanced the development of the exchange or marketing process. Firms within the business field found success in production of quality products and in making products attractive for customers to purchase. In the business setting, motivation and success are derived from the sales of products or services. These sales create profits for stockholders. Later, businesses found that even the "good" product might not sell itself, and responded by moving marketing 11 into a sales era. Manufacturers increased their emphasis on an effective sales force to find customers to purchase their products. More recently, after years of research, businesses again changed the focus of their approach. In 1952, General Electric pioneered modern marketing practices that follow an orientation toward fulfilling customers' needs and wants through company studies and research. These analyses establish for the engineer, the design of what the customer wants in a given product, where and when it is wanted, and what price the customer is willing to pay. (Kurtz, etc.:1987:12) The American Marketing Association has defined marketing as the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual demand and organizational objectives. This more comprehensive definition encompasses the many functions of marketing. In addition, it extends the notion of marketing to services and ideas, and recognizes the importance of organizational objectives as well as satisfaction of individual consumer demand. Marketing is often confused with two of its possible components, advertising and public relations. Advertising and public relations represent communications with the consumers or promotion of the product. They constitute 12 portions of the marketing mix, the mix of activities, used in planning and implementing marketing. To carry out the marketing concept in commercial marketing, a company devises a plan that incorporates a marketing mix or the particular blend of controllable marketing variables to achieve its objectives in a target market. The total marketing mix includes the following variables, listed in order from least important to most important, according to Boone and Kurtz: (1987:402) PROMOTION: is the function of informing, persuading, and influencing the consumer’s purchase decision. Promotional strategy provides the appropriate blending of personal selling, advertising, and sales promotion for use in communicating with potential customers. Promotional tactics help make the product familiar, acceptable and desirable to the consumers. DISTRIBUTION: provides the means by which goods and services are transferred from producers to consumers and users in the exchange process. Place utility is created when goods and services are available at convenient locations that permit consumers’ motivations to be translated into actions. PRODUCT: refers to the physical or functional characteristics of a good, or service offered to consumers by the organization. 13 PRICE: represents the cost the buyer must accept to obtain the product. Prices and the corresponding quantities to be purchased by customers represent the revenue to be received by the organization. Pricing objectives are a critical component of the means-end chain extending from overall aims of the firm. One strategy in marketing is to develop a plan that will enable the organization to determine how its products or services will be perceived in the overall market. This plan, or the planning process, can provide a detailed expression of resources and actions necessary to accomplish stated marketing objectives. The plan can be formulated, implemented and have periodic evaluations to determine its success in moving the organization toward its stated objectives. The marketing plan typically focuses upon identifying answers to the following three questions: (1) Where are we now? (2) Where do we want to go? (3) How can we get there? (Kurtz,etc.:1987:92) Philip Kotler and Karen Fox define such overall planning as "strategic planning", the process of developing and maintaining a strategic fit between the institution’s goals and capabilities and its changing marketing opportunities. This strategic planning involves developing a clear institutional mission and supporting goals and objectives, establishing a sound l4 strategy to achieve the goals and objectives, and appropriately implementing the strategy. The steps in this process include: environmental analysis, resource analysis, goal formulation, strategy formulation, organization design and system design. Figure 1 presents the components of strategic planning as described by Kotler and Fox. It shows both the six major parts and the 23 sub-parts that comprise them. (Kotler, Fox;1985:74) O K ING The concept of "social marketing" was introduced in 1969 by Philip Kotler, as a broadening of the earlier views of marketing. The conCept was further elaborated in 1971 by Kotler and Zaltman who defined social marketing as the design, implementation, and control of programs calculated to influence the acceptability of social ideas and involving considerations of product planning, pricing, communication, distribution, and marketing research. This broadened definition of social marketing is still the most accepted definition today. (Kotler, Zaltman:1971:5) Lovelock points out that the product might be something as intangible as a politician offering a political platform, or a college offering an education. "Central to marketing is the concept of exchange-- consumers giving something in exchange for the product. 15 While money is the most common quid pro quo, time and other personal variables may also constitute part of the exchange transaction." (Lovelock:l977:75) The concept of marketing has been debated, mostly by those in academia, for the last ten years. David Luck argues that the core concept of marketing includes the exchange of values between two parties. If a person receives free service then no exchange has occurred. He continues by observing that it is implied that a "marketer" is some stereotype who is involved in the entire marketing process. This, he contends, cannot happen in modern society for there are thousands of specialized marketing tasks and it takes millions of people to perform them. (Luck:1974:71) Drucker counters, "But the service institution is in a fundamentally different ‘business’ from business. It is different in its purpose. It has different values. It needs different objectives. And it makes a different contribution to society." (Drucker:1973:68) Service organizations traditionally have been against marketing for it was perceived as an unethical misuse of .public funds. Various writers also have raised questions about the application of marketing to service organizations. For example, Laczniak asks, "Can the application of marketing techniques to social issues and ideas be considered a step toward a society wherein the 16 opinions held by the population could be manipulated? Is it proper that marketing research methods are used to determine which issues appeal to various constituencies and how these often conflicting views can be optimally incorporated into the party platform without alienating many voters?" (Laczniak, etc.:1979:32) Lovelock points out, "Advertizing of public service agencies is viewed as crass commercialism which is inappropriate to a public agency. If the public needs services they will come to see us." (Lovelock,etc.:1975:24) Alternatively, one can ask whether this a matter that is safely left to the marketer’s own sense of values and ethics? Lovelock and Weinberg remind us that public sector organizations tend to be more subject to public review, regulations and criticism than most private firms. (Lovelock, etc.:1977:28) Blakely, Schutz and Harvey say, "...a citizen is much more likely to respond to very personal feelings about community management or service management, as represented by members of the city council and school superintendents. Since the citizen is both a consumer and manager or stockholder he has the right and desire to voice his opinions on the ultimate product as well as the mode of delivery." (Blakely, etc.:1977:41) In judging the ethical questions which arise from the marketing of social issues, Lovelock also suggests it is l7 necessary to examine the most frequent motivations of public organizations for adopting marketing practices. The three most significant motivations include (1) financial pressures resulting in efforts to increase net revenues, (2) pressures to maximize the effectiveness of publicly financed programs, and (3) external pressures that come from changing technological and social environments which necessitate changes in people’s behavior patterns such as we find in adopting the metric system or encouraging more efficient use of energy. (Lovelock:1975:30) Several general problems have confronted practitioners who attempted to adopt commercial marketing approaches to promote social issues or organizational change. Those involved in the social issues or those confronted with need for organizational change typically have little understanding of the concepts of marketing, their potential usefulness, or their appropriateness for approaching social or organizational issues. Pressures and attitudes, such as those presented above, also present major differences for service organizations as compared to commercial marketing. Therefore, service organizations must approach a marketing plan prepared to make alterations in commercial marketing approaches, especially taking into consideration the relationship of the consumers to the service organization. 18 Looking back in time one can observe social organizations mostly expanding, or for the very first time, putting out some aggressive promotions about the services they were offering to the public. This early promotion did not approach the use of services from a marketing perspective and could potentially prove quite dangerous to the organization if nothing was done to develop its basic products or services. Promotion alone might attract only short term participation with no retention of users or service development possibilities. Both user retention and service development are important variables and require special action by social- organizations to carry out successful marketing programs. When designing each portion of the marketing mix, the social marketer must be aware of the unique situations that set social marketing apart from commercial marketing. The research needed to gather and analyze information to build the marketing plan is much more difficult. There is less good secondary data available about the customers and there is great difficulty in creating reliable, valid research measures to gather accurate customer reactions to social questions. (Bloom, etc.:1981:80) Funding, public funding especially, is not available for organizations to study what must be done, in relation to what is already happening, or to analyze the consumers’ needs. The social organizations must, in addition, market their service 19 intentions to state and federal organizations so as to increase the likelihood of receiving funds with which to achieve this broader mission. (Blakely,etc.:1977:41) Thus innovative approaches become necessary in adapting information for the development of a comprehensive social marketing plan. MARKETING MIX CHALLENGES The development of a marketing strategy basically consists of two steps. First, the market target needs to be identified. This is a particular consumer group to whom the organization wishes to appeal. The second step is to design a marketing mix--or the blending of the elements of marketing decision making--necessary to reach that target group. "Although thousands of variables may be involved, marketing decision making can be conveniently divided into four strategies: (1) product, (2) pricing, (3) distribution or place and (4) promotion." (Kurtz, etc.:1987:15) Those adapting strategic market planning to social institutions confront additional challenges. A number of these challenges are evident as one addresses the development of a proper marketing mix. PRODUCT: The complexity of formulating programs may be increased or the character of the product or service 20 may be seriously constrained by government regulations. Regulations may both constrain the organization’s behavior patterns and require a considerable period of time by it performing repetitive activities to bring about any change. (Bloom,etc.:1981:82) In addition, frequent budget shifts and personnel changes common to social organizations may cause a lack of continuity, and make it difficult for social marketers to create an effective product strategy. Development of products or services adapted to target segments is difficult because political ramifications, budget restrictions, or the lack of data may make identifying individual target segments impossible. For instance, social services or community services, funded by public funds, are required to be available to the whole community, not just a market segment. (Lovelock,etc.:1975:31) Consumers have limited service choices in many instances, since in order to use the public services they must adhere to boundaries of home, school, community etc. In social marketing there is often no one product that can fulfill the overall standards (ie. a safe driver), therefore, various products and services must be designed that will make partial contributions to the social objectives. (Kotler, Zaltman:1971:7) 21 PRICING: Pricing is also a complicated matter for service organizations. "The social marketer must understand that the target user will engage in an informal cost-benefit analysis in making a decision about adoption and the marketer’s task is to structure the exchange in a way that reduces the many intangible costs and highlights the benefits to the user." (Kotler, Zaltman:1971:9) "The marketer has no control over the consumers’ nonmonetary costs (ie. time costs involved in car pooling) but can only try to help the consumer to perceive it accurately without inflating the costs." (Bloom,etc:1981:83) Pricing presents problems in measuring the costs to the consumers since imposing a charge may cover less or more of the costs of the service and not indicate the effectiveness of its marketing tasks. Marketers try to price offerings to minimize any barriers that might be preventing consumers from taking desired actions. Incentives are many times considered more desireable than charges to stimulate different kinds of behaviors. (Kotler, Levy:l969:56) PROMOTION: Blakely has observed that paid advertising is usually impossible for the social marketers to use therefore limiting their options to only the free sources of communication with consumers. In turn this prevents the marketers from having control over the reach 22 and the frequency of communications with their target segments. The messages need to contain large amounts of information (making paid advertising extremely expensive) for it cannot be assumed that the consumer knows what action to take concerning the advertised information. Messages must state the expectations indicating how the clients are to participate or contribute. (Blakely, etc.:1977:43) Because the free communication channels have no commitment to the service organization or its project, these communication channels can be unreliable, especially in providing access for repeated messages. The uncertain availability of free communication opportunities requires ‘the concept of the service to be put before the public in a very short period of time. Meaningful communication for service organizations is difficult because there is a lack of norms or standards against which newly tested social messages can be compared. (Bloom, etc.:1981:84) Lovelock points out that there is no public sector sales force and no strategies in the orientation of management and personnel. Either organizations have staff representing a life time career commitment, or they rely on volunteers and short term staff who lose their jobs when the problem is solved or the funding has ended. In either situation, there is little commitment to solving the problem or meeting organizational goals. Sales 23 incentives or other short term incentives used by private organizations are unheard of for social service personnel. (Lovelock, etc.:1975:31) PLACE: Barton indicates that the degree of satisfaction a consumer can receive depends on the availability of the goods and services. Through the communication promotions the consumer must be told of the actions necessary to acquire the product. Other channels that provide the opportunity for the consumer to respond to the service need to be built into the distribution system. (Barton;1986:72) EVALUATION: Bloom and Novelli observe that not only is it most difficult to measure the impact or effectiveness of a social program, it is also impossible to estimate the contribution the marketing program has made toward the achievement of certain objectives. There is no measure of profit, or proven measure of customer _ satisfaction in social marketing. Social marketers are unsure what to measure. For example, a social service program may be designed to create awareness of an issue, change people’s behavior, save lives, or do something else. Still other questions require attention. Should there be a study of the secondary or the unintended effects of a program? Should consideration be given to the utilization of the service or product? Social 24 evaluation provides no control group data against which to evaluate the current activity. Further, behavioral changes by service users usually require a long period of time. As an added complication, in social marketing there is no direct route for feedback, creating a long and slow process for evaluating information. (Bloom, Novelli:l981:86) Drucker makes an important observation connecting evaluation with the budgeting properties of a social service organization. "An institution that is financed by a budget-~or that enjoys a monopoly which the customer cannot escape--is rewarded for what it ‘deserves’ rather than for what it ‘earns’. It is paid for good intentions and for ‘programs’. It is paid for not alienating important constituents rather than for satisfying any one group. It is misdirected, by the way it is paid, into defining ‘performance’ and ‘results’ as what will maintain or increase its budget." (Drucker 1974:71) EDUCATIONAL MARKETING During the last two decades, educational organizations have faced serious adjustments making them important candidates for social marketing. Many public schools have faced closing brought on by a dramatic drop 25 in the number of school age children throughout our population. Elementary schools met this student change in the 1970’s and high schools began facing it in the early 1980’s. (Kotler,Fox:1985:5) Universities are now facing the crisis of declining enrollments. Reacting to these demographic changes, the state and federal governments have made cutbacks and alterations in their funding policies. National, state and institutional studies have been made calling for educational reform. Kotler and Fox report that higher education is searching for innovative methods to deal with diminished government funding and the ever rising costs of advanced education. 'Universities want to attract more and better students who they can retain through increased student satisfaction within the institution. However, education is not a commodity that can be produced and sold to consumers at a price covering its costs. In fact, tuition charges only cover approximately 25 percent of the total cost of college education. (Kotler, Fox:1985:25) Therefore, it is necessary for universities to design quality programs that will carry out their mission and that will enable them to enlist the financial support and enthusiasm of their program clients, communities and alumni. Kotler observes that, NTo achieve these fundamental requirements, educational institutions have 26 only two choices: Either they must cultivate and attract supplementary markets, or they must find a way to enhance their appeal to their present target markets in order to increase their market share." (Taylor; 1986:45) Kotler observes also that through a marketing orientation, universities must be prepared to present their products to several different types of market segments in order to gain full advantage of available resources. Universities want to attract additional funds and students, but to be successful at this, to maintain these additions, they must be ready to deliver the promised value of the exchange. (Taylor; 1986:45) Philip Kotler reports, "...I’m pleased that a higher percentage of colleges are responding to the serious problems they’re facing, but I still see too much confusion between a sales response and a marketing response. Too many colleges are confusing motion with action." (Taylor: 1986:45) Barton observes that traditionally, universities have used a sales orientation, strong on public relations and fund raising, to attract more students and monies to their institution. Sales driven approaches do not include sustained implementation plans that will support the long- range plans from which the school is going to build its future and fulfill its mission. "Successful marketing focuses on the strengths of the program it promotes. How 27 many can say their university offers a freshman year like no other or a degree like no other? Marketing is more than selling. It is price, program, place, and philosophy as well as promotion. In sum, marketing is an attitude about institutional behavior." (Barton: 1986:72) Strategic marketing planning, as devised by Kotler and Fox, has been developed to incorporate planning of the overall direction of the university in response to its markets and opportunities. Use of a long-range plan can strategically orient the focus of short-range plans, fitting them into the overall direction and avoiding an exclusive selling approach addressing one problem or symptom. (Kotler, Fox:1985:72) Figure 1 presents the components of a strategic planning process model as described by Kotler and Fox. Their definition of strategic planning embodied in this model suggests the appropriate steps a university can take to improve its effectiveness. Their model appears applicable to the full range of universities. The model brings together all the separate aspects of the marketing process, forming an organized, formal planning system. When used as a system in the decision making process, the model should yield information that helps improve performance and allocate resources to uses with the greatest potential. The strategic planning Figure 1: Environmental Analysis e Internal environment 0 Market environment 0 Competitive environment e Public environment 0 Macroenvironment (Threat and Opportunity Analysis) Goal Formulation e Mission 0 Goals 0 Objectives Resource Analysis 0 Personnel 0 Funds 0 Facilities 0 Systems (Strengths and Weaknesses Analysis) Source: Kotler, 1985 28 Strategy Formulation e Academic portfolio strategy 0 Ptoduct/Market opportunity strategy 0 Competitive strategy 0 Positioning strategy 0 Target market strategy STRATEGIC PLANNING PROCESS MODEL Organization Design 0 Structure 1 0 People 0 Culture System Design u...“ e Planning 0 Control Philip, and Karen F.A. Fox Strategic Marketing for Educational Jersey: Prentice-Hall, Inc., e Information Englewood Cliffs, New page 74. 29 process model also can reflect the policies and practices increasing confidence of an organization. And, this particular model easily adapts to social marketing concepts as will be described in the following sections. RA C N G PROCESS ENVIRONMENTAL ANALYSIS: The environmental analysis, as recommended by Kotler and Fox, addresses the question, "Where are we now?" It is intended to give a documented picture of the most significant environmental developments or trends that may have an effect on the university. The future environment is given character as information is assembled about the different areas in which the institution has interests. The environment includes areas such as demographics, economics, political influences and cultural changes. It is important to understand that the environment is constantly changing and one has no control or influence over these changes. (Kotler, Fox: 1985:103) The insight gained in analyzing environmental changes can determine the strength of "threats" and "opportunities" the university will be facing in future situations. Having this documentation available will afford an institution the necessary tools to find marketing opportunities through which it could enjoy a superior competitive advantage. The university may choose 30 to simply react to or manage its threats. Reacting to or managing threats is a management style that will allow the institution to stay intact but provides no basis for promoting growth. At best, the university could respond to its future opportunities and decide to modify its structure or programs to improve its fit within the new environment and find new markets offering a more compatible fit. Or the university might decide to ignore environmental changes or fight the environmental changes in an effort to buy time in which to make adjustments. The environmental analysis also is intended to provide informative data about the many different publics connected with the university. Besides encompassing students, faculty, program clients, and alumni, these publics include groups such as the media, government, the general public and the local community. For example, in all there are more than twenty identifiable publics that a university must deal with on an individual basis. The larger and more diversified the university, the greater the number of publics. Each public wants access, information or other benefits from a university in a manner that is a bit different from benefits sought by the other publics. Through the environmental analysis, a university can define the unique needs of each public and the resources or benefits it 31 wants to receive from each public in exchange. To make this a smooth flowing process of exchange, the university must understand how each of these publics perceives it. (Kotler, Fox:1985:25) Also important is the image of the university held by each public. The image is the sum of beliefs, ideas and impressions that a person has of an object. (Kotler, Fox: 1985:38) Of course, the university wants its publics to have accurate and favorable images of it for this image is a link to the behaviors or actions happening between the two groups. If the university is aware of the images the various publics hold it can answer the following questions. What do the publics see as the strong and weak points? What do they want the university to be? Answers to these questions will enable the university to create changes fostering more favorable perceptions and to increase positive exchanges of resources. The promotion of positive and beneficial actions toward the university by its publics comes through the generation of real satisfactions. Consumer satisfactions become positive through fulfillment of consumer needs and wants and development of consumer loyalties. Satisfaction is perceived by customers according to the availability of services and the perceived quality of the service they 32 receive in relation to the price they pay for the service. (Blakely,etc.:1977:43) For example, research at GM has shown that managing a complaint well, translates directly into increased business during the year and in the long term. If four complaints a week were resolved to the customer’s satisfaction, the long-term cash value would be equivalent to an additional fifty auto sales per year. Also GM was able to determine that it could achieve repeat sales by eighty percent of unhappy customers, if customer complaints were handled adequately. (Merra:1986:14) Similar consumer behavior patterns are likely in the service industry. Therefore, we can assume from the GM research that positive response to complaints in the service industry will produce similar levels of consumer satisfaction. "Bad news travels twice as fast as good," is a an adage worth remembering in the promotion of satisfaction. (Merra:1986:14) The competition of the university is included in the environmental analysis. Who the competition is will depend upon who the university defines as its target markets. (Taylor; 1986:46) "The analysis for some of the resulting competitor groups may need to have more depth than others. It is often important to consider potential as well as actual competitors. In order to develop strategy it is important to understand the competitor, 33 their objectives, strengths and weaknesses." (Aaker:1984:23) RESOURCE ANALYSIS: In a university the internal analysis examines the administrators, trustees, faculty, staff and volunteers. It is important to determine what kind of a commitment each of these groups will contribute to a marketing effort. "Marketing efforts must be focused, consistent, harmonious--in short, centrally planned and controlled. This calls for an extraordinary exercise of leadership. By taking an active part the presidents must provide the first vital step." (Halpern: 1986:42) Actions from the leadership set the priorities and expectations. "The leader is someone who is very clear about the goals of an organization and has the skills to bring the various groups within the organization to accept the goals and even be enthusiastic about them. Now, college faculty members act like independent contractors rather than corporate players. They believe they should run their own courses and the institution as well. This makes them hard to manage, let alone lead." (Taylor: 1986:47) The organizational leader does not necessarily have to do the actual leading. But the unit’s leader must give visible support to any marketing orientation and show 34 expectations as to its success through the involvement of the internal resources. Resource analysis looks at the internal resources from a standpoint of "strengths" and "weaknesses". The overall plan must have documented input as to what the actual resources are and how dependable they are throughout the year. For instance does the form of some resources change over the summer months? What are the major strengths and weaknesses in faculty, programs and facilities? What opportunities are there to expand the financial resources? (Kotler:1979:39) To maintain healthy growth and extended maturity in the life cycle of a university, the university must be able to adapt to changing circumstances. The university that simply keeps doing the same things year after year may find itself serving a declining market. "An adaptive institution is one that operates systems for monitoring and interpreting important environmental changes and shows a readiness to revise its mission, goals, strategies, organization and systems to be maximally aligned with its opportunities." (Kotler, Fox:1985:119) To plan for the university’s best opportunities, the opportunities the resources might support, attention should be given to its distinctive competencies. Distinctive competencies are those resources and abilities in which the institution is especially strong. If a 35 university has a strong foreign language department, it might consider such opportunities as starting an area studies program or an evening non-credit language program. (Kotler, FOX: 1985:120,121) Kotler and Fox provide a suggested check sheet to determine strengths and weaknesses of the available resources (see Figure 2). It allows a university to identify its high, medium and low strengths, plus its low, medium and high weaknesses. The ratings given for strengths and weaknesses are simply examples to illustrate proper use of the form. Also, a university can add other- items that constitute its fund of resources. GOAL FORMULATION: From the study of data collected in the environmental and resource analysis, the institution will have the background from which to build goals and objectives for future growth of the organization. As the environment changes, administration should review and reassess the basic mission, goals and objectives. (Kotler, Fox: 1985:77) Mission: A mission statement is both a long-term vision of what the university is striving to become and an identification of the underlying need it is trying to serve. "The mission statement acts as an ‘invisible hand’ that guides widely dispersed employees to work independently and yet collectively toward realizing the organization’s goals." (Kotler: 1984:46) "No phase of 36 Figure 2: INSTITUTIONAL RESOURCE ANALYSIS IH - high; M - medium; L - low; N - neutral) (Checks w are illustrative) RESOURCE STRENGTH WEAKNESS HMLNLMH lflmpb 1. Adequate number? 2. Skilled? 3. Enthusiastic? V 4. Loyal? V 5. Service-minded? 5’ Money (Income and endowment) I. Adequate? .V Zthfibh? 3’ Facilities 1. Adequate? 2. Flexible? ' 3. Location quality? .fimMWw 1. Information system quality? V 2. Planning system quality? 3. Control system quality? IWMMnamwm 1. Student base? 2. Alumni and other donors? 3. Faculty quality? w 4. General reputation? w ‘ \ ‘ \ ‘ \ ‘ \ X Source: Kotler, Philip, and Karen F.A. Fox 1985 Strategic Marketing for Educational Institutions. Englewood Cliffs, New Jersey: Prentice-Hall, Inc., page 121. 37 the marketing planning process is more important, or deserves more clear and deliberate thinking, than specification of the agency’s mission." (Crompton,etc.:1986:54) It can take a group a long time to reach consensus in clarifying the organization’s mission. "You can end up with a mission statement that’s a paragraph long and has taken two years to develop. But the analysis and the process themselves are the mostimportant thing, not the mission statement. The process brings people together to share a common concern and participate in its resolution." (Taylor: 1986:46) Because the environment around the organization is continually changing, the mission statement should be reviewed regularly to ensure that it reflects the service needs of the publics. The mission provides clarification to the five following environmental areas: (1) What is our business? (2) Who is our consumer? (3) What is our value to the consumer? (4) What will our business be? (5) What should our business be? Each institution needs to think through alternative definitions to determine its own specific function, purpose and mission. (Drucker: 1973:74) Businesses focus their mission definition not on their product but on the market. For instance, Revlon does not sell cosmetics but focuses on the sale of hope. If you sell drills, do you sell quarter inch bits or do 38 you sell quarter inch holes? What is the customer seeking in the exchange with you? (Kotler: 1984:48) This presents a new concept to universities. As a university do you sell knowledge, a path to a career, personal growth, a time of fun and games, or a combination of these? Qggls: The institution’s goals are the variables it will emphasize. Major goals need to be developed that are separate from but consistent with the mission statement. An organization will have more goals than it can concentrate on at one time because of budget limitations and because some goals may be incompatible. Therefore, it will need to choose certain goals that are more applicable at a certain period in time. Goal formulation is a difficult process. Practice and several theories from different areas indicate that those who will be affected by the goals established should have a voice in formulation of those goals. Kotler reports that some university administrators have found it more successful to involve faculty, alumni and other publics in the process of formulating goals. (Kotler, Fox:l985:127) Obiectivgs: Objectives translate the mission statement and the identified goals into operational terms. They are stated in a measurable form and focus on the actions of the organization for the next three to five years. For example, an objective for increased enrollment 39 could state: "to increase the next term enrollment by 15 percent, and to increase the enrollment by 25 percent in each of the following three years." Short term objectives are usually program specific and assure that a gradual progress is made toward long-term objectives. (Crompton,etc.: 1986:70) Using the example of the telephone service, Drucker shows how the mission, goals and objectives mesh throughout the process. "Vail thought through what the telephone company’s business was and should be, and came up with his famous definition: ‘Our business is service.’ This totally ‘intangible’ statement of the telephone company’s ‘business’ then enabled Vail to set specific goals and objectives and to develop measurements of performance and results. His ‘customer satisfaction’ standards and ‘service satisfaction’ standards created nationwide competition between telephone managers in various areas, and became the criteria by which the managers were judged and rewarded. These standards measured performance as defined by the customer, e.g., waiting time before an operator came on the line, or time between application for telephone service and its installation. They were meant to direct managers’ attention to results." (Drucker:1973:72) To assure that the mission, goals and objectives theory works in practice, it is imperative that the leader 40 fully understands, supports and uses the concept. Each leader needs a priority and definition against which he measures performance. (Drucker: 1973:73) "It is imperative that senior management be involved in the process of developing the marketing plan. Such ideas should be conceived broadly throughout the organization, summarized in writing, and promulgated in every work and action of all employees." (Crompton,etc; 1986:54) .STRATEGY FORMULATION: Strategies grow out of and reflect the environmental analysis, resource analysis, and goal-formulation steps. You must know where you want to go in order to build a strategy. Developing this strategy requires choosing which programs will receive emphasis and which will need to be scaled down or dropped. In service institutions these decisions may be extremely difficult to make. Drucker points out that without decisions of this kind the organization follows the path of trying to please everyone. This will lead to no achievement and will promote mismanagement of budget funds. "No institution likes to abandon anything it does. Business is no exception. But in an institution that is being paid for its performance and results, the unproductive, the obsolete, will sooner or later be killed off by the customers. In a budget-based institution no such discipline is being enforced. The temptation is great, 41 therefore, to respond to lack of results by redoubling efforts. The temptation is great to double the budget, precisely because there is no performance. To obtain its budget, it needs the approval of practically everybody who remotely could be considered a ‘constituent’. Where a market share of 22 percent might be perfectly satisfactory to a business, a ‘rejection’ by 78 percent of its ‘constituents’, would be fatal to a budget-based institution. And this means that the service institution finds it difficult to set priorities: it must instead try to placate everyone by doing a little bit of everything-- which, in effect, means achieving nothing." (Drucker:1973:71) Because there are So many variables in the decision making process of developing a marketing plan, it becomes imperative that the ramifications of the decisions are well thought out. Balancing the components of the marketing mix while taking into consideration the strengths and weaknesses of available resources and the environmental threats and opportunities, will help in reviewing the entire plan. Price, product, place and promotion decisions, put together in combinations of different strengths will create various outcomes. For instance, one strategy could be to achieve the lowest-delivered cost position, coupled with a pricing policy that aims at profitable volume and 42 market share growth. Another strategy could be to achieve the highest product/service/quality differentiated _position relative to competition, coupled with a cost and pricing policy that would produce margins sufficient to fund reinvestment in product/service/quality differentiation. (Aaker:1984:7) Decisions of strategy and how the program is positioned or perceived in relation to other similar programs, has a bearing on the target markets and the‘ reactions of the competition. "Competitive positioning is that art of developing and communicating meaningful differences between one’s offer and those of competitors serving the same target market." (Kotler,Fox: 1985:152) In higher education the options and alternative strategies that are taken into consideration must be appropriate for the situation in which they are to be utilized in each program market. Marketing strategy is the selection of one or more target-market segments, the choice of a competitive position, and the development of an effective marketing mix to reach and serve the chosen consumers. (Kotler,Fox:1985:155) ORGANIZATION DESIGN: The program must have structure, people and culture to carry out its strategies. Internally, relationships need to be developed among staff, faculty and students that will result in a referral system for the organization, to carry out the planned 43 strategies that are possible. The referral system will serve new students, clients and potential grant sources. There may need to be changes in the organizational formulation to best meet the needs of the new strategies. For instance, people may have to be retrained for the key positions needed to provide comprehensive services for the prospective programs. Halpern points out that school leaders have frequently found there is tremendous resistance in changing to a marketing culture in which faculty and staff must learn that their first obligation is to serve and satisfy their markets. "Student recruitment was certainly something close to faculty hearts and interests...And faculty members believed, quite correctly, that their teaching is what the institution is about and what the students come for. They also assumed, less correctly, that students would value the college for the same things that the faculty did and that the faculty members know best how to make their own case." (Halpern:1986:42) Leaders try to instill an internal commitment to an approach that everyone supports wherever their loyalties lie. "We’ve all heard the remark, ‘This place is great when the students aren’t around.’ Leaders must reinforce the concept of consumer sovereignty throughout the organization." (Barton:l986:72) 44 It is important to analyze what rewards are being derived from the system. Is it intellectual skills, people skills or professional performance? What are the costs and benefits of services to each of the involved groups? The implementation process requires planning and timing. "When enrollment starts to decline, colleges usually adopt one of three responses. Some proceed to do more of what they have been doing in the past: The admissions director hires more admissions counselors to make more high school visits: the brochures are printed in four colors with new photographs, and more are mailed. This approach may temporarily attract more interest but is doomed to failure from the start. This we should term a ‘sales’ approach, focusing on ways to ‘sell’ the product of a college education." (Kotler, Fox;1985:320) A second group will turn to the "hard sell" even incorporating gimmicks and "deals" to convince available students that the university can deliver exactly what the student wants. The third group will turn to a marketing approach including research to understand students’ wants and needs. (Kotler, Fox:1985:320) To carry through a sustainable plan, the strategy must be translated into an action plan that includes what needs to be done, who will be responsible for doing it, and when each step of the plan needs to be put into 45 action. This process requires an intricate meshing between structure, people and culture within the program. If the plan is meeting consumer needs, then it can be assumed that it will be a plan with sustainable qualities. Of course, the consumer satisfaction levels should be continually monitored to keep pace with the environmental changes. SYSTEM DESIGN: System design is comprised of the controls that are built into the marketing plan to monitor progress of the plans. This control system can assure that feedback is being directed to its appropriate place in a timely fashion so that meaningful adjustments can be added to the action plans. The marketing control system includes: (1) Measuring the performance or results-- asking what is happening? (2) Diagnosing the results -- asking why is it happening? (3) Taking the corrective actions--asking what should we do about it? The results go back into the planning and execution or implementation stages to stimulate alternative action plans or processes. Long-range plans cannot be static because they are based on assumptions of how the program will react to environmental conditions. Therefore, after the first year of implementation, the long range plan needs to be revised to contemplate alternative strategies that will improve the institution’s performance. (Kotler, Fox;1985:86) 46 Drucker emphasizes that evaluation is the most important aspect of the entire plan. "No success lasts forever. Yet it is even more difficult to abandon yesterday’s success than it is to reappraise failure. An organized audit of objectives and results is needed, so as to identify those objectives that no longer serve a useful purpose or have proven unattainable. The organization needs to identify unsatisfactory performance, and activities which are obsolete, unproductive, or both. And they need a mechanism for ‘sloughing off’ such activities rather than wasting their money and their energies where the results are not. What now has to be learned, is to manage service institutions for performance." (Drucker:1973:74) "Project (or program) evaluation can be much more easily accomplished if well-designed project (or program) objectives are included at the design stage. That is because objectives represent the ‘targets’ of the change effort: evaluation (impact evaluation, to be most precise) can inform us as to whether the targets have been reached." (Fear;1987:140) The budget guides all the marketing operations, financial planning and personnel recruitment. A cost analysis must be included as an ongoing part of the evaluation process. Budgets are best formed by estimating current and future needs, not by political expedience and 47 past practices. In order to develop budgets accurately, information must be collected concerning per unit costs of successful adaptions to the provided service. The formal marketing plan can fit the individual components together into a coordinated and controlled system that is sustainable and will provide long-range efficiency for the organization. "The real contribution of marketing thinking is to lead each institution to search for a more meaningful position in the larger market. Competition creates a pattern of varied institutions, each clear as to its mission, market coverage, need specialization and service portfolio." (Kotler:1979:44) CHAPTER THREE HISTORY OF THE DEPARTMENT OF RESOURCE DEVELOPMENT The Department of Resource Development at Michigan State University was established in response to the needs of the agricultural people and rural communities of Michigan. Thus, in its origin the department was able to fulfill the needs and wants of its consumers by having the target audience defined in advance. A review of the history of the department may provide other insights concerning the user markets that Resource Development could target today. By looking at events over time, a review may also define important dimensions of the Department and how they differ from one period to another. The study of history can prevent the reinvention of the wheel. It can point out what is required to manage at each of the different stages, for through history, the stages become predictable. History helps us understand the connections among external forces, functional necessities, and the structure of organizations—-not just that certain things have happened, but also why and how they happened. (Kantrow:1986:88) 48 49 CONSERVATION LESIIIQIE In 1935, the state of Michigan decided not to appropriate monies for the continuance of the Land Economic Survey Program, which had been a division of Michigan’s Department of Conservation since 1922. "This program provided an inventory of soil, slope, forest, land use, geology, potential power resources, and other economic facts." (Hill:1976:1) County agricultural agents, mostly from the northern counties, who depended upon the results of the studies preformed by the survey program, requested Michigan State College to assist them in obtaining the needed information. Local groups from other areas of the state, approached MSC for information to fulfill growing interests in public land use, rural zoning and management of natural resources. MSC did not have the personnel or leadership available to respond to these requests during the economic depression of the 30’s. Michigan conservation and agricultural leaders pursued the problem. Through discussions they investigated possible roles of the college in conservation, and presented the idea of a Conservation Institute at Michigan State College to the administration. As a result of the pressures from users, and recommendations from an appraisal conducted by MSC administration, the MSC State Board of Agriculture 50 approved the establishment of a Conservation Institute in May of 1937. (Hill:1976:3) It is important to review some of the ten initial recommendations made in developing this new institute, for it is here, at the beginning, where a foundation for serving state needs was established. Of the ten recommendations, four are particularly significant from a marketing orientation: (Barlowe:1984:7) (1) Because of the nature of its functions and obligations to the people of Michigan, and because of its Constitutional close cooperative relationship with State and National programs in research and Extension, MSC must commit itself to serve in the several fields of Conservation. A recognition of this obligation can no longer be delayed. (2) That its work and functions may completely cover the entire field of Conservation and be institution-wide in its scope, it is recommended that the policies and programs of the Institute be developed through an advisory group of five members, from the faculty of the several departments responsible for Teaching, Research and Extension in the field of Conservation. There needs to be a coordination of the several agencies within the Institution that would develop a unified and balanced teaching, research and extension program. 51 (3) The director of this Institute needs to be a professor, a research associate, and also an extension specialist in conservation. (4) It is recommended that as projects, fields of work, courses of instruction, etc., are developed, suitable groupings of staff be organized and additional staff be added, but that such staff shall remain with the subject matter departments concerned and that all such courses shall be given under the direction of the subject matter department. The Institute was placed in the Division of Agriculture of Michigan State College. Lee Roy Schoenmann, who had at one time been the director of the Land Economic Survey Program, was appointed as the new director. Other original appointments included Ivan Schneider as Research Assistant in Land Use, who was housed in the Soil Science Department, and Russell Hill, an Extension Specialist in Farm Game Management, in the Department of Zoology. The Conservation Institute started out with one full time person, the two joint appointments and office space at the top of Agriculture Hall. The Institute was expected to perform some teaching and research duties, but its principal responsibilities would be to give attention to practical problems through field service. The farmers couldn’t leave their farms to 52 come to the school, although they were in great need for answers to a variety of agriculture problems. A field service educational program called the Farmer’s Institute was developed in response to this need. It was a week long program that throughout the year was held in various agricultural communities across the state. The ensuing program developed into a powerful relationship bringing college agricultural specialists together with practicing farmers, to devise serviceable methods of putting modern agricultural technology into practice. The Farmer’s Institute became tremendously popular, because of the agricultural and conservation needs they met and possibly because of the famous dinners prepared by the Ladies Aid Societies and the Granges. During this time, farming was rapidly becoming more competitive. Economic practices were changing. Farmers needed answers and information from the college at a much faster rate than in earlier years. In addition, a new attitude about the wise use of natural resources was forming throughout Michigan as policies for conservation were being adopted. The farmers couldn’t wait for the one week of training to come around each year, nor could they rely on that week to fully meet their needs. The Farmer’s Institute soon turned into a twelve week short course taught in the winter months, when the farmers home duties 53 were slack. Modern practices learned through these courses were promptly put into use on the farms. Again, we see a readiness to adjust to the needs of rural people and to adjust content and delivery modes accordingly. During the years from 1937 to 1950, the Conservation Institute developed in its three areas of emphasis, teaching, research and extension, again reflecting a responsiveness to existing users: (Hill:1976:9-16) (1) Teaching started with one course in Introductory Conservation and 84 students. In 1941, in conjunction with the School of Education, a minor in conservation was offered. In 1944, the first international students joined the program. By 1950, eleven courses were being taught to 250 undergraduate students, 18 short course students and several graduate students. Other degree program students took Conservation courses in addition to their degree program. (2) Research, during these years, was accomplished by staff members working with the Institute but carrying appointments with a number of other academic departments. In war time, the most successful studies were pursued in conjunction with the departments of Home Economic, Fisheries and Wildlife, and Zoology to determine the nutritive value of rough fish and game animals. The studies examined ways to 54 increase the poundage of fish and experimented with recipes to encourage popular edibility. (3) Extension was the area receiving most of the energies and talents of the Conservation Institute. Greater amounts of monies and staff time were alloted for extension and public service than for teaching and research. Some of the major accomplishments of the Institute at this time included: Publications promoting public land use and management: Guidance by staff to land use management councils and commissions: In-service training in Conservation, especially for public school teachers: Development of visual, educational materials including maps, slides and charts: Instituting the first conservation show held during the annual Farmers’ Week on the MSC campus. In conjunction with the Michigan Department of Conservation, important land surveys were conducted to classify public and private lands, and included zoning, land use, and economic and social uses of land. Farm game management was studied with the Zoology Department. In addition,.one of the fastest growing demands of the public was for assistance in the tourist and resort area. Community groups and individuals demanded more information about motels, recreation, landscaping, food preparation, 55 public relations, sanitation and even playground equipment. Thus, the Conservation Institute evidenced substantial and continual responsiveness to the needs of field clientele, and it was beginning to respond to on- campus needs. It also continued its assistance to the Michigan Department of Conservation. DEP ENT OF LAND AND WATER CONSERVATION By the year 1950, it became evident that many Conservation Institute activities were being carried out in a number of other college departments. Institute members and MSC administrators thought that the expected needs could be better fulfilled by being brought together under one basic leadership in a Conservation Division. This change, created four new departments. The Conservation Division directed by Dr. Paul Herbert, included the departments of Fisheries and Wildlife, Forestry, Wood Utilization, and Land and Water Conservation. The Conservation Institute was now to become the Department of Land and Water Conservation. Dr. Herbert, from the Forestry Department, was instrumental in the conceptual design of this Division. He described the Department of Land and Water Conservation this way: (Barlowe:1984:25) 56 "The Agriculture College had a Land-use Institute headed by Roy Schoenmann that included extension work in rural zoning and general land problems. It was not a full-fledged department and conflicted somewhat with Soils and at times with other Agriculture Departments--such as Agricultural Economics. No one knew just what to do with it, so I included it in my division as the Department of Land and Water Conservation. As it had a few students and as I also had another embryo unit that I knew would some day grow to be of major importance--recreation, I put them together for the time being. Of course municipal forestry belonged there too, extension workers in the tourist and resort industry that I previously referred to also being there. And so while it was a mixture it was a proper administrative unit. Of course this department was also based upon the natural sciences with a much different emphasis and much more attention to water and zoology." The Department of Land and Water Conservation maintained Dr. Schoenmann as the director until his death in 1952. Frank Suggitt was appointed the director in October 1952. Reorganization of conservation activities resulted in some changes of emphasis. The Department of Land and Water Conservation expanded its teaching curriculum almost 57 immediately. Staff membership was increased to meet these teaching requirements, but remained diversified, with most staff holding only part time appointments with the new department. The majority of the extension work carried out under the old Conservation Institute continued in the new department. Research work, however, was greatly reduced or transferred to other departments. (Hi11:l976:20) Teaching was still focused largely toward the off- campus setting. On campus, courses were added to include Conservation, Park Management, Municipal Forestry and service courses in Forestry. Growth in student instruction was rapid, increasing over 100 percent in the five years from 1951 to 1956. (Hill:l976:25) Public Service from staff members was one of the biggest benefits of the new department. State and national organizations and commissions dealing with conservation, planning and zoning all were to benefit from the expertise of this staff. (Hill:1976:24) Two problems confronted the new department. One was the rapid growth through the addition of new and existing college staff. The other was the difficulty of coordinating programs and staff activities that were widely diversified among four divisions of the college. The fast growth and efforts to maintain the department with programs spreading throughout four 58 departments, was not always easy or successful. In his annual report of July 8, 1955, the Chairman made the following observations: "The Department is comprised of eight categories of function with varying degrees of interrelationship and support between each. There is no clear-cut departmental purpose or objective, the Department thus is more of an administrative ‘holding corporation’ than the usual type of subject matter department." (Hill;1976:26) "The 1954-1955 Annual Report summed up some of the department’s future plans: Suffice it to say that organizational changes must be made if the reputation for effective educational and research service is to be maintained. Functions which require closest scrutiny include tourist and resort service, land use planning (area development), and conservation education." (Hill:1976:27) Other factors of concern included the fact that the staff was housed in eight different buildings on campus, and serious organizational conflicts arose as to lines of authority and responsibilities. It was evident that Dean Cowden tended to treat Director Herbert as a department head and the four department heads as subchairmen rather than as chairmen. (Barlowe:1984:35) In the fall of 1955, the President of Michigan State University and the Dean of the College of Agriculture requested Dr. George A. Garratt, Dean of the School of 59 Forestry, Yale University, to formulate a committee of his own selection to undertake a study of the organization and program of the department. They also asked Dr. Garratt to propose recommendations for strengthening the Division and its component departments. The resulting Garratt Report observed that, "The greatest weaknesses in the present Division of Conservation appears to be a lack of cohesion between the several component departments and the absence of day to day close working relationships which might be expected to foster coordination of activities among divisional personnel. This lack can be traced in part to physical separation of the department but in even larger measure it is due to a critical failure to establish specific and stimulating goals for both the Division and the component department and to provide effective coordination and supervision of instruction, research, and extension activities. Outstanding among the factors contributing to this situation has been the notable lack of an effective, accepted and continuous leadership that would encourage working out of problems and development of objectives on a cooperative basis." (Hill:1976:29) 60 QEEAEIEEHI OE REEOQECE DEVELOPMENT Though the Garratt Report was kept confidential, its recommendations became a major influence on the recommendations which Dean Cowden and President Hannah submitted to the State Board of Agriculture in 1956 for the reorganization of the Conservation Division. As these basic recommendations were refined in 1956, through the office of Dean Cowden, the proposal for a Department of Resource Development emerged. Many discussions were held concerning the name "Resource Development" since not many had a clear understanding as to the meaning of the term. In this organizational change, programs that had been assigned to the department in 1950--Conservation EduCation, Municipal Forestry and Tourist and Resort Services--were now transferred to other departments. Throughout its history, the department has always given strong support to extension programs. "It is interesting to note in the Department’s 1951-52 Annual Report that approximately three-quarters of a page is devoted to reviewing the teaching program, and two and one-half pages are devoted to research, but ten pages are required to report on extension and other public service activities." (Hill:l976:24) Over the years, extension programs have adjusted to the changing demands and needs of the public. In 1957 the department head was asked to serve as "program leader" for 61 resource development (including rural development) extension work. Considerable effort was devoted to in- service training sessions, field visitation, and participation in county programs. Despite all the organizational changes, unrest was still felt throughout the Department. Dr. Suggitt made efforts to "unify" the department. Through a memo on April 3, 1958, he shared his concerns. "To this point neither the staff nor the administration have convinced me that this department has any reason for existing in its present form and location. I am not satisfied with the argument that we are here because we are here, because of our administrative history, because we are doing an indispensable service, because we are all good fellows and work hard. It is up to the staff to present better arguments as to why the present functions should be grouped into a department rather than diffused into other existing departments or grouped into different units." (Hill;1976:38) Dr. Suggitt’s memo continues, "Of this I am sure: (1) The administration is looking for soft spots where it can economize in both funds and in courses and curricula. It is currently costing more than $125,000 a year to maintain us in this department. Over the next 20 years, the average remaining length of service of our staff, this totals to a two and one half million dollar commitment. 62 This is a significant figure. (2) Any unit on the campus which cannot present a ‘unified front’ and a ‘solid, unified core of program functions and objectives’ is vulnerable. (3) In such a situation, the most effective defense is a strong offense, and this does not include emotional rationalizations and re-hashes, but a strong, concise statement of unified objectives and scheduled plans." (Hill:1976:38) Dr. Suggitt continues by defending the work of the department in its search for more defined directions. "...features of the changing America and the needed responses on the part of a major university include (a) recreation, (b) regional planning and development, (c) water resources management, and (d) changing concepts of extension education. The four areas of need are all inter-departmental and all-university in scope. Day by day these areas are being better defined with the experience of new programs, new grants, new faces, new contacts. There is no evidence of central direction, nor is there evidence of taking advantage of past experiences, failures and successes, on the part of the university administration. The function of the university can be likened to an amoeba-like octopus whose tentacles thrust out first in this way and then in that, without conscious reason except to justify, at all costs, the most recent expansion and engulfment. The resultant is an awful lot 63 of motion and commotion with little notion as to direction, depth or velocity or consequences." (Hill: 1976:39) This early history indicates a continuing search for clarity in departmental purpose and for unified objectives. The diversity was along topical and functional lines. The adjustments largely involved grouping, adding to, and diminishing the purposes and functions. In July of 1959, Dr. Frank Suggitt shifted to a 75 percent joint appointment with the Fund for Adult Education. This shift was only the beginning of a time of many changes. Dr. Raleigh Barlowe was appointed the head of the Resource Development Department, but was in South America and could not take over his duties until late September. Dr. Barlowe had served as a professor in the Department of Agricultural Economics since 1949. The emergence of "resource development" as a unifying purpose or objective is reflected by Dean Cowden in correspondence to Barlowe. Cowden’s letter indicated that "...we have spent a good bit of time trying to decide what to do with this department. The decision has been reached that we think there is an important field of resource development that should be developed. We are also of the opinion that, if we are going to do what should be done with this department, there would have to be more than just 64 Extension--we will need to have research and good, strong academic teaching." (Barlowe:1984:49) Meanwhile, Harold Schick resigned his position as Extension Specialist, and Arthur Wilcox of the Park Management program submitted his resignation. This left the department with a professional staff equivalent to 6.75 people: 2.25 in extension, 1.75 on Agricultural Experiment Station research and 2.75 for teaching and administrative staff, with a full slate of courses to be taught in September of 1959. (Barlowe:1984:50) In November the department moved to the old Wells Hall. For the first time, all the staff was brought together, physically, allowing for an increase of staff input into departmental matters. The staff, developed three broad areas of emphasis used as guides to pinpoint the Department’s thrust. The emphases were: (1) Resource Economics and Policy, (2) Land and Water Resource Management, and (3) Community and Regional Development. (Hill;1976:46) Growth, and adjustments necessary for growth, seemed to be the emphasis by Dr. Barlowe.‘ The first change Barlowe incorporated, was a shift from emphasizing off- campus teaching to on-campus teaching. In 1960, Dr. Steinmueller joined the staff increasing the teaching faculty to four, plus two lecturers from the State Attorney General’s Office. Seventeen on-campus courses 65 'were taught in 1960 to 561 students. (Hi11;1976:41) Enrollment in the Department’s courses steadily increased to 1,065 students by 1965, and 1,496 by 1970. (Hill;1976:46) Dr. Barlowe took action to rewrite the department’s course descriptions and to initiate a reevaluation of the course offerings. In early 1960 steps were taken to designate a central core of graduate courses and to prepare a booklet on graduate study opportunities. A request to initiate a doctoral program was rejected by the dean in 1961. After many revisions and modifications, the program was approved by the College Graduate Committee in 1966. Three graduate assistants were appointed in 1960 and by the year 1970, 100 graduate students reported for registration, though assistantships were awarded to only a fraction of the students. (Barlowe; 1984:51,67,80) The Park Management program in Resource Development was experiencing considerable growth at this same time. Staff appointments included Louis Twardzik and Theodore Haskell, and Charles Doell as a visiting professor. Seven staff members were actively engaged in the department’s extension activities but their positions had to be modified to reflect the increasing teaching and research needs. Extension staff were pressed into teaching courses and advising students in addition to supervising some research. Extension staff focused on 66 soil and water conservation issues, water resource management, resource public policy issues and community resource development issues. The research area had six faculty members serving on research appointments. They focused on water resources, park facilities and management, erosion and land use, and impact of general property taxes on rural suburban properties. Barlowe saw Resource Development as a holistic discipline that draws together knowledge from more specialized disciplines such as biology, geology, economics, sociology and law to formulate workable practices, programs and policies for developing, managing and conserving natural and related community resources. Such a framework for resource development practices, programs and policies calls for the interaction between natural and social sciences, and for considerable information from the two broad scientific fields. Barlowe felt practical programs and policies must always pass the three-fold test of physical and biological capability, engineering and economic feasibility and institutional acceptability. (Barlowe:1984:54) Interest in public resource policy became a qualification for new staff appointments. Barlowe developed a strategy to restructure the undergraduate program to make it more attractive to 67 prospective students. The department developed a broad non-career-oriented major that would encourage students to take blocks of courses in the humanities, and natural and social sciences and give emphasis to the relationships between people and their natural environment. Barlowe’s department goals for teaching were: "Improvement and upgrading of its teaching program by: employment of highly qualified individuals to share future teaching loads, critical reevaluation and definite strengthening of individual courses, dropping the less valuable and more vocational- oriented courses, adding new courses where needed to round out the Department’s offerings in the Resource Development area, putting more emphasis on fundamental courses and on an expanded graduate study program, and generally up-grading both the faculty and the curricula so as to make Michigan State a mecca for graduate study at both the master’s and doctoral level in Resource Development." (Barlowe:1984:58) The department also proposed this non-career-oriented program to fill the needs of two groups of students--those who were not yet ready to commit themselves to a career major and those who were transferring to MSU with combinations of credits that did not fit the major requirements of numerous departments. (Barlowe:1984:69) 68 Several actions were undertaken by the College that served to retain natural resources as a part of the college and to strengthen its role. The name of the College was changed to Agriculture and Natural Resources. In 1966, the Department of Resource Development was given authority to offer a doctoral degree in Resource Development. The department and its sister natural resource units were moved into the new Natural Resources Building. And, Dr. Howard Tanner was appointed the Director of Natural Resources in the renamed College. Dr. Tanner was to be in charge of the natural resources area which included the Departments of Forestry, Forest Products, Fisheries and Wildlife, and Resource Development. He was to give overall leadership in this general area, to strengthen the entire natural resource program. Problems arose when lines of authority were again obscured and Dr. Tanner was treated more as a super- department head. This, in turn, reduced the chair positions to that of subchair and reduced communications within the college to and from these departments. The position of Director of Natural Resources in the college was not refilled when Dr. Tanner resigned from MSU in 1975 to become Director of Michigan’s Department of Natural Resources. By 1969, the new Department of Parks and Recreation Resources had been created. This same year, Dr. Barlowe 69 requested a reassignment within the department. Also in 1969, there was an interim period between the retirement of one Dean of the College and the appointment of another. An effort was made by many staff members and some alumni of the four Natural Resources departments to server their ties with the College of Agriculture and Natural Resources and to establish a new College of Natural Resources. This effort gained little support from the University’s administration and was dropped. Dr. Raymond Vlasin, from the University of Wisconsin, became the new chair in August of 1971. Dr. Vlasin changed the emphasis to create interdepartmental cooperation. From his 1972-73 Annual Report, "The. Department is a multi-disciplinary integrative department and its concerns encompass physical feasibility, economic feasibility, social and political acceptability, and legal-administrative feasibility of resource use and development. It cannot conduct research in these areas, or extension and teaching, unless it builds and maintains close ties with other units on campus and elsewhere in the State." Under the leadership of Dr. Vlasin, faculty members joined various university committees and participated in interdepartmental teaching efforts. His emphasis was that of developing quality over quantity in the department. 70 Pursuing the goals to become a truly integrated department, Dr. Vlasin initiated a review which was designed as a built-in part of the department’s planning process. The review team was charged to probe the meaning of the department’s mission, to deliberate about its past and present functions and to explore alternative responses to the future. Dr. Vlasin was looking for methods that would enable the department to advance, with unity, in directions that were beneficial to both the university and the people of Michigan. The analysis of the 1977 review team revealed some old problems which had not been resolved within the department, and recommended some directions that would bind the philosophies more strongly together. The number of students in Resource Development had dropped drastically in 1969 when the Park Management program left the department, but the student enrollment was again increasing. There had been a suggestion for the department to abandon its undergraduate teaching. The review team cautioned that a reduction in department undergraduate enrollments in preference to graduate students could be a negative factor in the department’s competitive bargaining position relative to other departments. (Department:l977:11) The team felt that undergraduate advising appeared to be improving. Undergraduate students were frankly advised 71 of the non-career emphasis in Resource Development and it attracted students who did not necessarily want a professional or technical degree. A degree offering of a more professional or technical nature in resource development, management and conservation could be an alternative to a Liberal Arts degree. The review team reported that some upper level skill-oriented courses, and internships or practicums through Extension programs would be beneficial to both undergraduate and graduate students. (Department:1977:12) The review team also observed, difficulty in attracting and holding the more able graduate students-- the lack of graduate fellowships and assistantships for high quality, first term graduates being a major factor. Recommendations included that the graduate student be involved with the faculty even in developing an identity and sense of what resource development is all about to reduce the confusion of the integrative nature of the RD program. Revamping the awarding process for assistantships to offer security of expectations for the student was seen also as a crucial matter. (Department:1977:14) Review team observations of the research area included: "With the exception of the projects being undertaken by the remote Sensing Unit, very little of the research in progress provides direct assistance to public 72 agencies and organizations. Reference here is to research that sponsors normally buy and analyze themselves because of its value to their program operations." (Department: 1977:19) The emphasis was on the need to reestablish touch with user groups, State Departments and Extension where research and practice could blend in meeting the needs of the public. "As a panel we suggest that a portion of the extension capacity be reserved to respond to new problems and issues as they arise." The review team also felt that more comprehensive and integrated research was in order. "There appears to be an emerging need for more multi-level analysis of problems in resource use, resource management, and community development. Such research would help build understanding of how things come together in the least reducible units, and of the interplay between people and their institutions at various political/government levels. Such research would seem to fit within the focus set by the department" (Department:1977:22). Evaluating the International program, the review team concluded that this dimension should be built into the basic functions of the department, not operate as a fourth dimension. It was recommended that the international aspect be planned, rather than operate as a conglomeration of the interests of various staff members. 73 The review team of 1977, spoke highly of the accomplishments of the department. But the team felt that department members still had to work hard toward the goal of integration and toward achieving balance among the emphasis areas. Efforts were made to attract quality candidates to the department’s graduate programs. The brochure on Graduate Study in Resource Development was updated at regular intervals, informational materials were sent to prospective students, and graduate assistantships and financial aids were provided for outstanding applicants. This funding was small therefore, requiring the department to make quick offers to prospective students and to use funds from supporting research grants. Dr. Vlasin was appointed dean of the Lifelong Education Programs on January 1, 1979. Dr. Chappelle served as acting chairman until 1980. Dr. Ronald Shelton was named acting chair but his tenure was cut short by his sudden death in August. Dr. Barlowe became acting chair until Dr. Paul Nickel was nominated as chair in 1981. "Nickel had to make several unpopular decisions and encountered many frustrating problems requiring fiscal cuts" (Barlowe;1984:96). He resigned in 1982. Dr. Jon Bartholic was named as his successor in March, 1983. The lack of continuity in leadership between 1979 and 1983, and the budget reductions in 1981-82, impacted the 74 department’s previous gains in program expansion, faculty additions and graduate and undergraduate student support. Periods of uncertainty, such as these, also make more difficult the development and implementation of forward looking plans. CHAPTER FOUR RD DEPARTMENT-~APPLICATION OF MARKETING THEORY NRO N NG Currently the RD Department is experiencing the common trend of declining enrollment. This is prevalent throughout the entire College of Agriculture and Natural Resources here at MSU (Spring term of 1988, MSU’s enrollment in the college was down by 1.6 percent) and is following the trend of agriculture colleges across the nation. In RD, the enrollment decline is most noticeable within the Undergraduate Program. In 1983, the program reached a fourteen year low with 66 students. In 1986, the department had only 47 undergraduates. The graduate program has been maintaining a fairly steady enrollment of about 70 students. This decline within the college and the department may not qualify as a crisis situation yet. However, it is serious enough for the College of Agriculture and Natural Resources to start examining RD and other programs from a more critical viewpoint. The climate for using marketing approaches to counter enrollment declines is improving, both within the 75 76 department and across the university. Barton observes, "Finally, marketing is no longer a dirty word on the nation’s campuses. Education is getting better at marketing, but it’s still not good enough." (Barton;1986:72) The marketing that is happening in service organizations such as universities and departments, often is on an informal basis. Usually the marketing is treated in a fragmented manner, not as a broad concept to guide the long-run direction of the unit. Therefore, the "marketing" that is applied is not able to produce the desired results. The RD Department is in the process of trying to pull together some situational information to begin the development of a marketing plan. This thesis serves as one contributing action to this broader departmental interest and action. Using the Strategic Planning Process Model as an outline, I will examine some of the actual situations having occurred within the RD Department which are crucial to the development of an overall plan. ENVIRONMENTAL ANQ RESOURCE ANALYSIS The environment and resource analysis is the research process where by the department identifies opportunities and problems that affect it now or that will affect it at 77 a later time. The analysis, if thorough, will provide a critical accounting as to the strengths and weaknesses of the resources available to the department from which the department can begin to build its plan. To properly complete this analysis, internal and external data must be collected and documented in a manner suitable for study and comparisons. Though the conduct of such analysis is beyond the scope of this thesis, provided here are some examples of the types of data having a bearing on the RD Department. EXTERNAL CHALLENGES: Statistics show that there is still a nation wide decline in students attending college. John Naisbitt says that new trends show that by the year 2000 we will be changing the ways we deal with our human resources. We will be retraining our managers to become not order-givers, but facilitators. He says, "The population growth of the world is slowing down dramatically. In this global economy, all agricultural products and raw materials-~natural resources--things that come out of the ground--are in permanent oversupply. We are moving away from material-intensive products (copper or steel) in favor of more efficient man made materials, such as plastics, ceramic materials, and fiber glass cable." (Naisbitt:1987:8) While there are several alternative views about current and future global and national resource scarcity, 78 and while the Naisbitt view fails to recognize the crucial nature of state, regional and local resources constraints- -his conclusions are among those that an RD long-range marketing plan would need to consider. Dr. Vlasin, of the Department of Resource Development, states one alternative view: "Globally, the desertification of lands, the loss of the rain forests, and the destruction of forest land cover are on the increase. Also globally significant is the ‘greenhouse effect,’ with its predicted shift of U.S. farming areas northward, dramatic shrinking of U.S. forests, and destruction of current coastal areas. These are predicted adverse changes that make the benefits from reduce dependency on minerals, cited by Naisbitt, pale by comparison. Also to be reckoned with is our continued global dependence on fossil fuels. Society has made little progress in shifting away from its nonrenewable fund of energy resources. Harnessing tidal forces, developing broader applications of solar energy technology and managing the logistical and environmental effects of wood energy generation are major challenges ahead." Dr. Vlasin continues, "Many other changes in the external environment are worthy of special consideration. Closer to home we see the challenges of ground water contamination, of solid, hazardous and nuclear waste disposal, and of competition for local natural 79 environments. We see daily reports of conflicts over ‘locally unwanted land uses’. We have insufficient plans and governmental arrangements for handling suburban sprawl, or for sharing the burdens and benefits of business and industrial development. Increasingly, we are aware of the fact that scarcity of our natural resources cannot be defined without including the demands for and supplies of local, regional and global environments." These and many other challenges will confront the leaders, professionals and citizens of today and tomorrow. The domestic and foreign students of today will be the leaders and responsible professionals of the near and distant future. Dr. Vlasin also pointed out that, "Each of these external challenges spans disciplines around which most universities are organized. But few colleges and departments have the cross-discipline orientations, plus the contacts with society, that are needed. It is possible that the multi-discipline orientation of the Department of Resource Development, plus its array of linkages with other departments, is more appropriate and necessary today than at any time in the past." UNIVERSITY AND DEPARTMENT CONDITIONS: MSU has been in the throws of discussions to refocus, rebalance and to refine MSU. The discussions are intended to offer new direction in the university’s growth, and to enhance 80 academic quality. At the same time, the Michigan legislature has funded the University with insufficient funds to meet its rising costs and commitments. The Fall of 1988 is the beginning of a three year, university wide, budget cut--generated in part to provide resources for the refocusing, rebalancing and refining of MSU. A University level tuition increase of 9.7 percent is being imposed on all students. Conditions within the Department of Resource Development present another set of important facts—-the internal environment. Currently there are twenty-six faculty members connected to the department. They are divided into FTE’s accordingly: Teaching 5.96, Research 3I12, and Extension 2.9 for a total of 11.98. Seven of the faculty are from other departments with joint appointments in RD. No search for new faculty to enter the tenured stream has been initiated since 1978 when the last new faculty member joined the staff. Forty-two courses were offered through the RD Department in 1987. (Fear:l987:7) Support staff for the department includes thirteen members. Recent research shows that this is a ratio much higher than other departments. The ratio of faculty to support staff in RD, as of May 1988, is 1:1 while other departments maintain a 3:1 ratio or lower. 81 The Council to Review Undergraduate Education report released by MSU in the Spring of 1988 recommends university wide changes that will affect both students and the individual programs offered by departments. Among the changes proposed are plans for the University to discontinue the quarter system in favor of the longer semester system. Students would be required also to take courses in written and oral communications--every major will require three courses of three credits each--and computer-related skills would be reinforced. (Gazdik:1988:1) Additional recommendations made that would bring changes to the academic process include, foreign language requirements, access for handicapper students, and an advanced recruiting process to sustain the current enrollment. Interviews were conducted with each clerical and technical staff member in August of 1987. The interviews provided information about the general situation in the Department of Resource Development from the support staff perspective, and advice from each staff member on areas needing priority attention. Themes that were identified from this process included an appreciated flexibility of the department which added to the enjoyment of the work situation. Areas that need attention were identified as: improvements in communication, greater professionalism among staff, more efficient ways of doing things including 82 the phone system and message taking system. (Fear;1987:2) A new phone system was installed in the spring of 1988. The RD graduate program annually enrolles approximately 65 students. Of these approximately 55 percent are doctoral students and 45 percent enter the master’s program. Using data from the Community and Regional Development area of emphasis, we can see an example of the demographic breakdown of the students enrolled in that area. These percentages may not be true across the entire RD Department but provide useful insights. In 1984, the analysis of Community and Regional Development data showed that the mean age was 29 years for a master’s student and 33 for a doctoral student. At that time, 82 percent of the RD graduate students were U.S. citizens and 18 percent were of International origin. The majority of the U.S. students were from the state of Michigan. Some 64 percent were male, 36 percent were females and 18 percent were Black. Of the total group of graduate students 75 percent reported at least one year of agency field experience before entering the program. (Fear:1984:8) In 1983, twenty seven Master’s students graduated from the RD Department. Of these 69 percent were employed, 23 percent entered graduate school, and 8 percent were unemployed. Of the four PhD students who graduated that year, half reported they were employed. (Department:1984: 7b-3) The graduate enrollment in the 83 department reflects a greater proportion of students with international backgrounds than is shown in the 1984 Community and Regional Development data. The undergraduate program enrolls about 60 students per year. Most of these students transfer in during their junior year-~they transfer from other parts of the University and from beyond MSU. The majority of the students select RD because they have not been able to find what they are looking for elsewhere in the university. About 50 percent of the students participate in an RD internship experience as a part of their program. Following graduation, compiled statistics show that 65 percent of the undergraduate students become employed (60 percent in the RD field) and 15 percent enroll in graduate school. (Department:1988:7) An annual student survey to determine why students choose this undergraduate program was started in the spring of 1988. Dr. Steinmueller reports that the clients are more agency orientated now rather than people orientated. "The RD Department is more involved with the Department of Natural Resources, the Forestry Department and other Government departments. We used to be more active outside the University, especially in county extension work. As we have had changes in the department faculty, their interests in special projects has gone by the wayside. 84 New faculty hasn’t picked up these interest areas. Extension these days, is mostly on the University level." An observation from the 1985 RD Department Review Team, report also needs to be included in the environmental analysis. On page 16 the team reports, "The Resource Development Department is uniquely positioned to establish the college as a national center of excellence in economic development of rural and natural resources." The review team goes on to explain that the combination of the department’s expertise in community development, community economic analysis, regional economics, and the economics of natural resources and resource using- activities will have a higher probability for success in stimulating economic development than any other department or university in the nation. GO 0 At the Fall 1987 Retreat, the RD faculty came together in agreement to revise the Mission Statement, and related goals and objectives. It was decided that a committee approach would enable the collection of input from several differing sources, with the combined input to be used in building a new statement. A questionnaire was sent to alumni to respond to a draft "Department Statement." Department faculty members were asked to give 85 comments and recommendations before a redraft was made and brought back to the faculty. Also taken into consideration were the ten faculty responses to a survey asking for impressions about what RD is and what RD is not. A revised Mission Statement, including department goals, was adopted by the faculty in January 1988. This document also includes descriptions of how the department operates, organization of the department and why the department was established. (see Appendix) §IEAIE§X_EQBMHLAIIQN The creation of a strategy, more particularly a long- range strategy, involves translating the mission into a department plan and then into a marketing plan. The information from the previous sections--the environmental and resource analyzes, plus goal formulation--provides the framework for building of the departmental and marketing plans. Then strategies are formulated that will help define the marketing mix--how the department approaches the issues of product, price, promotion, and distribution. Currently, plans are being formulated by the department to promote the undergraduate program to MSU students with undeclared majors and to students at the nearby community colleges. Promotional information about 86 the undergraduate program will also be given to environmental groups and to other department clientele. For recruiting purposes, Dr. Nichols has made recent visits to high schools to talk to students and counselors. The RD Undergraduate Affairs Committee plans include the following objectives: (1) to restructure the curriculum, (2) to develop a marketing plan to recruit students and (3) to better integrate undergrads into the department. (RD:1988:8) ORGAN A ON D SIGN Several actions have been taken by the RD administration recently to ensure broader involvement of persons in departmental decisions. A Departmental Planning Committee has been established to consider and debate important issues facing the department, and to make recommendations to the Chairperson, Associate Chairperson, and faculty as appropriate. The committee would also plan retreats, special faculty meetings, and related events that include a planning function. It is recommended that the four area of emphasis coordinators will serve on this committee in order to ensure representation across the department. Suggestions were made that an RD Advisory Committee should be established. The administration expressed 87 desires for a truly representative committee. To do this would require a systematic effort to identify all the clientele associated with the department and select advisory committee members from among the identified clientele. It was later decided that there were not sufficient funds to support the travel costs associated with bringing advisory committee members from across the state. A departmental newsletter is to be published twice annually, once at the very beginning of Fall Term (to be current enough for use during student orientation sessions) and once at the end of Winter Term or the beginning of Spring Term (to be included in the mail-outs to prospective students). New department brochures providing timely and pertinent information about the department, were designed for distribution in the Fall of 1988. Another new program which was initiated in the Spring of 1988, was the presentation of awards, given by the faculty, to selected graduate students and undergraduate students. SYSTEM DESIGN The system design has as a major function the identification of evaluations to be conducted and development of plans for keeping the selected current and 88 on-going evaluations documented. These are evaluations necessary in determining the effectiveness of both the output of the departmental programs and the methods of delivery. The resulting evaluative information can then be used in restructuring the planning process to keep it abreast of current and emerging developments, satisfactions and images incurred in the environment. Dr. Vlasin reports on the eight actions the department currently takes that provide evaluative information. First, individual faculty members are expected to provide their students with opportunities to evaluate each course taught within the RD Department. Standard university forms are typically used by faculty in obtaining undergraduate student evaluative information. Usually more tailored approaches or faculty prepared forms are used to obtain course evaluations from graduate students. These evaluations are reviewed by the faculty member and the chairperson in an effort to strengthen the content and improve the instructional methodology of the course. Second, all faculty and staff members are evaluated on an individual basis annually. Faculty members are evaluated by the chairperson based on departmental performance criteria in the areas of teaching, research and extension/outreach. Support staff are evaluated by the clusters of faculty they each serve. In both cases, 89 written evaluations are provided as one output of the process. An attempt is made to recognize quality performance by individuals and to identify specific areas in which performance could be improved. Third, the department chairperson is evaluated annually by the Dean of the College of Agriculture and Natural Resources. The Associate Deans for Instruction, Agricultural Experiment Station, Cooperative Extension Service, and International Agriculture make inputs to this evaluation. Fourth, and similar to on-campus instructional evaluations, are those conducted by the RD Extension Specialists for programs they conduct on a county, multi- county or state-wide basis. These evaluations provide direct feedback from program clientele concerning adequacy of program content, and the educational processes employed. Fifth, and less formal, are the evaluative comments received from RD Alumni. The RD Department makes efforts to keep in touch with its Alumni. Alumni names and addresses are entered into the mailing list and periodically the department surveys the alumni for various informational purposes. Sixth, five years after the appointment of a chairperson there is a review of that chairperson. The Dean of the College of Agriculture and Natural Resources 90 invites the department’s faculty to develop information they would like to share with the Dean, and to meet with the Dean either individually or collectively. The evaluative information the Dean obtains is used along with other information in his decision to reappoint the chairperson, recommend changes in performance, or counsel the chairperson against reappointment. Seventh, approximately each five years a review of the departmental programs is conducted by an outside team. This team is comprised of faculty members from other universities and from one or more federal agencies--the Cooperative State Research Service and possibly the Economic Research Service of U.S.D.A. While emphasis centers on research performance of the department, major attention is given to teaching, extension and international programs as well. Finally, but by no means last in significance, are the evaluations conducted of faculty for promotion and tenure recommendations. In the department each non- tenured faculty member in the tenure track is evaluated-- between the second and their year of appointment to see if the faculty member will continue, and between the fifth and sixth to see if the faculty member will be recommended for promotion and tenure. Such evaluations occur in advance of possible promotion to Associate Professor and to Professor. A review committee of departmental faculty 91 colleagues serves a central role in the evaluation process. Faculty performance in all programs of the department are considered in these evaluations and resulting recommendations. A review of the components of social marketing indicates that none would be totally foreign to members of the Department of Resource Development. In fact, during the last several years the department has performed activities applicable under each of the components. Notable are departmental efforts at creating a mission statement plus goals and objectives, its special attention to the service of undergraduate students, and its ongoing program, personnel and unit evaluations. In addition there is a growing readiness in the department to undertake a market oriented planning effort. The creation of a Planning Committee, the plans for creation of an RD Advisory Committee comprised of clientele, the development of a career-oriented undergraduate curriculum, and the unit’s dedication to the interests and needs of undergraduate students are clear indications of the growing readiness. CHAPTER FIVE MARKETING THE DEPARTMENT OF RESOURCE DEVELOPMENT The Department of Resource Development is caught in the times of change. The students have changed, the department’s clients have changed, the department’s leadership has changed, but for the most part, the faculty composition has not changed. But then, how do you measure change? As Dr. Suggitt pointed out in 1958, the department was lacking a unified front with no objectives or a plan for direction at that time. Dr. Barlowe’s program strategies and interpretation of department policy of the 60’s, are still echoed among faculty. Today, budget cuts have become a reality once again, and with them comes the necessity of delineating the emphases of the department and presenting a unified direction. With a widely diverse, or integrated, department, this direction is not easy to delineate. Dr. Steinmueller observed that it sometimes takes a long period of time for the department faculty to come to agreement, probably because they are so diversified and they each observe events from different perspectives. In the pursuit of options to bring minds toward a common goal 92 93 and to create a plan to enhance long-range growth, marketing becomes one strategy to be examined. The Department of Resource Development has been carrying on marketing activities for years, but without the benefit of a long-range marketing plan. This fact was recognized by the department faculty and administration. An ad hoc committee, the Communicating RD Committee for the Department of Resource Development, was created within the past two years to focus on mission and related aspects of the department. However, the ad hoc committee did not have the responsibility to foster a strategic plan. This thesis is not an analysis of the RD Department. Neither is it an attempt to provide a set of guidelines for implementing a marketing program. Rather it is a presentation of insights, hopefully useful, that can assist the department in preparing for its development of a formal marketing plan. It provides an alternative way of looking at the thought and decision processes that would be required to bring about sustainable change to the RD Department regarding its market potential. INITIAL APPL CATIONS The strategic planning process model used in chapters two and four (see Figure 1, page 28) will be used in this chapter to exemplify how each strategic planning component 94 can be applied to the RD Department. The information discussed in chapter four will be used as a starting point. Chapter five will suggest techniques or activities that would be appropriate in the design of a departmental marketing plan. ENVIRONMENTAL ANALYSIS: "In this business of finding out where you are, we believe that you constantly have to compare where you are with where you’ve been, with where the other democratic market economies are, and so on. The emphasis on the comparative method really helps in the process of sorting out whether a given set of events represents a discontinuity." (Kantrow:1986:83) During the early years of the RD Department there was a great deal of input from the Michigan farmers and community leaders throughout the state. It was, after all, from the efforts of these very people that the department was established. The active extension programs were already working closely with the client groups. Through these every day contacts, the department was informally researching the needs and wants of its consumers. The new MSC department was able to provide information, education and research services valued by these clients. Over the years, it was the sons (and not many daughters at that time) of the clients who came to the university for further education and training in the 95 natural resources. Many of the students were attracted by the professors who had associations with them and their parents in the communities. Because the professors and administrators had close client ties, they knew and understood the reasons these particular students were coming to the university. They were able to recognize the employment positions students would fill following the completion of their studies. Today the Department of Resource Development is involved mainly with governmental units, agencies and groups. Slowly, over the years, the individual contacts by faculty with prospective students has diminished. The problems of the community now have a tendency to be perceived by the professors and administrators as distinct from the problems and needs of prospective students. Because of the orientation of the department’s research and extension/outreach, faculty and administrators have been less involved in asking: Now, who is coming to school? Whose sons and daughters are these students of the 80’s? How old are they? What is their cultural background? Where do they live? What do they expect from college? What are their objectives of accomplishment after college? We are reminded, however, of the central importance of students to this and other academic units. "Students provide most educational institutions with their reason 96 for being. Without students, schools would close their doors, not just because tuition revenues would drop but because the schools would no longer have clients to receive the classes, counseling, and other services that the institutions were established to provide." (Kotler, Fox:1985:319) History shows that for a period of time there was an overabundance of students in the department causing informal limitations to enrollment. One self-imposed departmental action was to limit enrollment to that level permitting the department to provide quality counseling. Watching trends, John Naisbitt sees there is to be a continual decline in population through the year 2000. This decline has implications for student enrollment levels. In fact, the department is already facing a smaller undergraduate enrollment than several years ago. What will happen if no departmental action is taken? Will the fact that tuition has been raised for the last three years, mean that there will be still fewer students coming to the department in the near future? Do increases in tuition and other educational costs imply a smaller proportion of students from the lower socio-economic groups, and a greater proportion from the upper socio- economic groups? The department seems to have students show up every year. But, Dr. Bartholic says, "We don’t 97 know why, but a good portion of quality students come to our department to study." When education costs rise, there is a natural tendency for some students, who would normally choose to attend a private college, to now choose a somewhat less expensive, state supported college or university. A student’s decision to choose a particular college is influenced by many people including parents, relatives, friends, and teachers. Marketing theory tells us that these people can become more influential in a student’s decision if the department creates favorable, satisfying associations with each of them. There has been a noticeable decline in students at some large universities, and especially in colleges providing agricultural studies. MSU’s College of Agriculture and Natural Resources has experienced a similar enrollment drop. Therefore, it may be assumed the Department of Resource Development will run a high risk if it does nothing to assure adequate enrollment levels in years to come. Demographic data are invaluable in determining the kinds of students who make up the department’s market. Data collection and analysis is used in the marketing decision making process to answer such questions as: What student locations to target in recruitment? What motivational influences are successful in attracting 98 students? Why did some students who were accepted, not follow up and choose to enroll? Secondary data addressing some of these questions are available in the RD Department, but those data have not been systematically compiled and analyzed to assist faculty to better know the students and understand their needs. A strategic marketing plan could be developed by the department that would take into account environmental changes impacting the department’s operations. The strategic plan could help it anticipate demographic and educational shifts, analyze market opportunities, and consider the impacts the various environmental changes would have on the department. One analytical strategy is .to assess impacts of environmental changes assuming nothing within the department changes. Another analytical strategy is to identify environmental shifts, allowing the department time to formulate adaptive strategies that will take advantage of external environmental changes in targeting future opportunities. Under the second strategy the leadership is able to anticipate and plan for progress rather than react to surprises. For instance, actions by the Council to Review Undergraduate Education and its report constitute a major shift in the external environment of the department. Through development of a strategic plan, the department could predict some significant changes in its academic 99 programs. The department could explore the distinct opportunities or challenges a semester system offer for its undergraduate and graduate programs. Likewise, it could explore other important program, financial or societal changes as well. RESOURCE ANALYSIS: The strengths and weaknesses of the department can only be determined by those directly involved in the department leadership and direction. Outsiders can provide insight as to what they observe but they do not make any of the final determinations. Dr. Bartholic believes that the multi-disciplinary nature of the department is one major strength. Further, he feels the "Sustainable Development" program will become a unifying focus for the four subject matter areas of emphasis in the department. Community Economic Development, one of those four areas, is another growing strength of the department. Faculty quality is still another department strength. Also, RD faculty members are serving in leadership roles on campus, on national committees and with state committees. Dr. Bartholic believes that these and other positive changes constitute a move toward excellence in RD programming. Dr. Steinmueller has indicated his belief that the interdisciplinary aspect of the department is its greatest strength, as it gives the capability to study and solve problems from a multi-angle approach. "This same aspect 100 is also a weakness because we try to do too much. It takes longer to examine a problem from all angles. Neither does the mix allow for intellectual sparring with others in your field, therefore, individually, we tend to operate on a less sophisticated level." Mark Lelle, who specializes in advising undergraduate students, observes that having a department that is not easily definable is perceived as a weakness by some undergraduate students. He reports that this view is held by students who are seeking employment after completing RD studies. Dr. Vlasin says, "There is no other similarly integrated academic department in the University. If not integrative, the department would have no influence on how others view resources from their narrow, technical view." He also feels that the department is becoming quite thin in the extension area which is the unit’s strongest link to the Land Grant Mission of the University. Through my personal readings, I thought it was interesting that the 1977 review team viewed the resources of the department as having enough strength for national prominence. A similar observation was made by the 1984 review team. To make these observations creditable, a measuring system of strength and weakness values must be devised. The system would help to rate department characteristics 101 in an organized manner (see Figure 2, page 36). Ratings must reflect the scorer’s perceptions of the resources as they are, not as one thinks they should be or may wish them to be. Strength and weakness perceptions combined with the data about the external environment, constitute strong inputs in formulating directional decisions. GOAL FORMULATION: Kotler has stressed, as have many authors of group change theory, that it is many times not the end product that is important, but the fact that a group has come together to collectively address a problem or issue. Over many months of work the Resource Development Department has revised the mission statement to better express the department’s identity. There was input from faculty and some outside sources. Much hard work and long discussions went into this task before agreement was finally reached. The process has brought the department together in development of a common definition. The mission statement, is symbolic as the beginning of the long-range planning task. Where should the department go from here? There are several possibilities. One possibility is that an analysis of external environmental conditions and internal strengths and weaknesses can be introduced, and the concept of consumer marketing can be introduced. After this step, the mission statement can be reviewed to assure it is focused on the underlying needs that the department 102 intends to serve, not on the products the department is offering. Depending on the department’s commitment, it could proceed with data collection and analysis. Results of the analysis could be used to influence the goal formulation process. The questions found on page 45 can be helpful guidance. Once goals are identified, emphasis could be put on the formulation of specific, measurable objectives for meeting those goals. The department could concentrate on a few chosen goals (eg. department brochures and newsletters). The department could identify and undertake some short-term activities and include as a part of those activities the collection of statistics helpful in 'documenting market segmentation, consumer images and consumer needs. It would be reinforcing if some of the activities could yield fairly quick successes. The successes would serve to augment the marketing process, giving it some creditability and providing a visual accounting of the mechanisms of the plan. There are two major cautions in pursuing this plan. One is not to let short term success be an alternative to developing a long- range plan. The other is to avoid the trap of producing a "selling approach" rather than a "consumer approach". It is easy to overlook both cautions through the initiation of short term activities. 103 STRATEGY FORMULATION: By the time departmental planning approaches strategy formulation, the department will have a vision of where it wants to go. This stage of the planning determines how the mission translates into a departmental plan, and then into a marketing plan. (Goldgehn:1985:38) (For simplification purposes, I will use the example of increasing student enrollments in this discussion.) The first step in strategy formulation will be the selection of target markets. Research findings obtained from the current students will provide valuable- information. Behavioral patterns, plus demographic or geographic similarities, will help classify students with similar characteristics into defined market segments. The undergraduate program has chosen two target markets to pursue, non-preference MSU juniors and community college students of Southern Michigan. Making this decision also defines the department’s undergraduate program competitors. They are the other academic units that would like these same groups of undergraduate students to choose their programs. The second step in strategy formulation will be determining the best marketing mix to be formed. This is a time consuming process and can involve the efforts of everyone in the department. Decisions as to product/service, price, place and promotion have to be 104 agreed upon. Information from the environmental and resource analysis will be of great assistance in formulating these plans. Information on and analysis of strengths/weaknesses, opportunity/threats and perceived needs of the students and faculty should be very helpful. Program development presents the challenge of improving the product or service internally, and strengthening the uniqueness of the program which sets it apart from all the others. To decide the development directions, information must be documented concerning the following issues: What are students looking for from an RD background? Does there need to be equal treatment of the graduate and undergraduate programs? Do the students want to be trained for employment (resource development jobs) or do they desire a liberal arts education? What are the indications of student satisfaction concerning the career/non-career curriculum tracks? What skills and knowledge are employers buying? What kinds of jobs are available now and what will be available in five years? Other departmental concerns that need to be taken into consideration as the product or service offerings are emphasized, appear in the answers to questions such as these: What kind of student counseling is needed? What will the individual subject matter areas of resource development require by the year 2000? Are the RD teaching, research and extension programs formulated in a 105 manner that will best serve the needs of students and other clients and the university? "Program planning raises the question of who knows what is best for the student--the student, a confused person who doesn’t have much experience or perspective, or the people who teach these subjects?" (Taylor:1986:48) B.F. Skinner’s theory is that educators, who have the expertise, have the responsibility to guide students into what is necessary to learn in order to meet the student’s plan. This involves knowing each student well enough to understand the individual’s plans and needs. With this comes the realization that one program is not going to fulfill the needs of everyone involved. Many questions must be analyzed to assure the RD program is consistent with the mission while fulfilling the needs of students. Decisions must be made about where, when, and how frequently different types of promotion will be carried out by the department. Promotion efforts have already begun in the RD Department. All the RD subject matter areas, also called areas of emphasis, are producing new brochures. This effort provides an opportunity to develop the identity of the department. "Graphic identities can visually tell what you are about, perpetuate the values and reflect the character of the college." (Feinstien:1985:28) 106 One possibility that could be considered is to design the brochures so they are similar in style and appearance. The size of the RD brochure, the wording (Resource Development at Michigan State University), the type of print (block letters), the color either of the brochure or the print, or some distinctive logo or design could demonstrate a unified department with a single identity. One easy test of this would be to arrange all the printed materials together on a table to visually determine if an identifying appearance is easily recognizable. A review of the department’s objectives may help determine that brochures alone may not be adequate. Departmental promotion, and more particularly student recruitment may require letters, posters, postage paid return post cards to request information, a slide show depicting the program at MSU and other promotion techniques. For example, the department could review the newsletter’s objectives to determine if promotion is, or should be, a part of its purpose. The department also could determine if the newsletter has the same identifying look as the brochures. The budget will have a major influence on these decisions. Thus, it is possible the department will want to pursue some free types of promotion (ie. a newspaper story) at regular intervals. This would stimulate an 107 awareness of the department’s on-going activities, and reinforce confidence in the image held by various publics. Also, the department might sponsor conferences or workshops to bring perspective students, or influencers of perspective students, into the department to meet personally with professors. It is obvious that the various promotion actions interrelate so strongly that it is difficult to separate one from the others. For instance, in determining what promotion activities to conduct, the department must also decide where to conduct them--the place decisions. Where will the department find perspective students? What is Aconsidered timely? Is information about the RD Department available and accessible to perspective students? In the marketing of services, there must be an awareness and understanding of the many non-monetary costs incurred by the consumer. "Before a consumer buys a product, a cost/benefit analysis takes place to somehow process the major costs, and the strength of their motivation to act is directly related to the magnitude of excess benefit." (Rothman, etc.:1983:90) According to Kotler students are most often upset with college programs and college inconveniences. (Taylor:1986:48) Therefore, the RD Department needs to identify student "costs" so that RD at Michigan State University will minimize what students see as costs, and 108 emphasize what students perceive as benefits. Identifying student costs also will allow the department to be efficient in its organizational design. The Resource Development Department, never having a marketing plan before, will probably incur new budget expenses and require reallocation of certain budget items. The plan will not work without the support of an adequate budget and the necessary support of administration in providing such a budget. Estimations can be projected as to the costs of the plan compared to the benefits that will be gained if objectives are met in a timely manner. A budget to cover the costs of a marketing plan will have to be constructed. There also will be non-monetary . benefits and costs to the Department that will need to be Iidentified. ORGANIZATIONAL DESIGN: The organizational design translates the plan into action. All the programs resulting from the "strategy formulation" must now be developed and implemented. The implementation of each activity needs to be smooth, professional and timely if success is to be obtained. People must be designated to carry out certain actions--who is going to visit the community college, who will write letters, who will do a mass mailing, etc. This may require department staff and faculty to take on added responsibilities or to perform in different capacities. 109 With a successful recruitment effort, the dissemination of information from the RD office will rise considerably. It is important that reliable people answer requests, give correct and adequate information, and extend an attitude of hospitality. Frequently a person serving in this capacity is the first departmental person the perspective student will see or talk to. The impression that is conveyed at this time is often the one used in decision making by the student. Implementation of the plan of strategy requires coordination among the different aspects of the plan. For example, smoothness depends on the person who can make sure that funds are available when needed for a mass. mailing, that the speaker at the community college has the slide projector, that materials are available and faculty and staff are ready to lead a workshop program. It is extremely important to have follow-up information for, and contacts with, prospective students who have inquired about the program and the students whom the department is pursuing. Who will decide what will be done, who will do it, and when will it be done? Directing faculty and staff to change job responsibilities or take on additional responsibilities is a delicate operation. SYSTEM DESIGN: Evaluation and control, though they come at the end, are probably the most important aspect to the development of a sustainable plan. Evaluation 110 procedures need to be built into the program so that they are preformed in a continuous manner throughout the project. Waiting until the end of a project to evaluate the outcomes will not allow for improvements to be made in the delivery process along the way. Two aspects of the marketing plan must undergo critical evaluations--the results and the procedures. Measurement tools and control levels will have to be devised for such evaluations. Information gained in answering the following questions could help in formulating measurement tools: When the department brochures are distributed, where do they go? How many brochures from each place produced inquiries? How many inquiries constitute an adequate response? Were the inquiries from students the department would consider strong prospective RD students? In what other ways have the brochures been helpful? What is the cost/benefit of producing and distributing brochures? How well did prospective students understand the material printed in the brochures? As the overall plan is reviewed, the input of this information will influence the continuation, modification and discontinuance of specific activities. In evaluating the increased enrollment, the department may want to look both at new students joining the program and students who are staying in the program. 111 "The importance of creating more satisfaction and improving retention cannot be overemphasized." (Kotler, Fox:1985:337) Retention rates can serve as an evaluation measure to determine the strength of the target market and the ability of the department to serve it. If the right students are being selected, and if the RD program is meeting their needs, high rates of retention should occur. It is more cost effective to retain a students in the program than to recruit many students who will not stay in the program or receive satisfactions from it. In addition, the unhappy persons generate negative promotion which has a tendency to be more impacting than positive promotion. Measurements of satisfaction by the students can be used as an evaluation tool producing information to revise and strengthen program plans and implementation. Satisfaction is difficult to measure but schools report good results have been obtained through the use of focus groups and periodic surveys. Questionnaires can be designed to obtain from students their level of satisfaction on a scale from highly dissatisfied to highly satisfied. Further, the level of dissatisfaction can be quantified. In measuring satisfaction with the "quality of the academic program", the following questions could be 112 formulated: a) How much quality is there now? (min) 1 2 3 4 5 6 7 (max): b) How much quality should there be? (min) 1 2 3 4 5 6 7 (max). The difference will measure derived dissatisfaction. By subtracting the answer for part ‘a’ from that for part ‘b’ we can derive a "need- deficiency". The greater the need-deficiency score, the greater the respondent’s degree of dissatisfaction (or smaller the degree of the respondent’s satisfaction). From survey responses such as these, department faculty and administration can determine the perceived quality of programs and better understand current student moods. (Kotler, Fox:1985:341) Satisfaction occurs when students feel their expectations have been fulfilled. If students are satisfied, they will stay in the program. They will give support to the program. And, they will promote the program to prospective students. MPL T ONS To introduce "marketing" to the RD Department is to ask the faculty and administrators to accept a new product or, in this case, an innovative idea. In this regard, it is useful to view the RD Department as a "consumer". It is faced with the choice of adopting the idea of a long- range marketing plan. Only after the idea is accepted can a long-range marketing plan be developed and used. 113 Success of a new ideas, as success of a new product, must take into consideration the fit or compatibility of the new product and the department’s resource base and the specific characteristics of the new product effort. (Kurtz,etc.:1987:336) Other marketing alternatives that could be considered by the RD Department to introduce a new planning idea would be either a product-improvement strategy, referring to a modification in existing products, or a market- development strategy. Product positioning plays a major role in a product-improvement strategy. "Market-research methodology allows marketers to analyze consumer preferences and to construct product-positioning maps that plot a product in relationship to competitive offerings." (Kurtz, etc.:1987:336) In a market-development strategy where concentration is on finding new markets for existing products, market segmentation is a useful tool. (Kurtz,etc.:1987:337) Market segmentation could be used by the department in focusing on smaller, more homogeneous groups with similar product interests. At this point the RD Department needs to perform a critical screening to separate the marketing ideas with potential from those incapable of meeting department objectives. There needs to be a weighing of the perceived probability of success of the chosen ideas. After this 114 stage, the department will have to invest time and money to implement the market planning processes it has chosen for itself. What is the RD Department’s readiness to respond to the chosen marketing strategy? The basic culture, spirit and drive of the people in an organization have the greatest bearing on the success of the organization. The internal organization and the chosen strategy are closely linked. The department will need to identify and position organizational components and their interactions in order to judge organizational effectiveness in the development and implementation of new strategies. What is the department’s ability to support an existing or planned strategy from its current resource base? How the department communicators define the seriousness of the existing problem and its affects on the culture of the department are important. Both will have a bearing on the willingness of department personnel to accept and support a new marketing strategy. Interactions between the formal organization (style of management), the informal organization (shared values and culture), the tasks and the people will all affect the decisions and actions of the organization. (Aaker:1984:146) The terms "marketing" or "marketing audit" may be perceived by department faculty and administrators to be 115 synonymous with a "hard sell" approach that persuades random student groups to commit to the existing departmental programs. Departmental personnel may have limited understanding of the other aspects involved in marketing theory and practice. It is possible that this perception of hard sell about marketing is so strong and negative; that it would be best to substitute the term "marketing opportunity analysis" or "image and opportunity analysis" for more assured acceptance. (Goldgehn:1983:36) Several universities that have adopted a marketing approach have found success in developing a task force comprised of members from all areas of the organization, to introduce the idea and design the beginning requirements for its use. Others have formed an internal task force with the assistance of an outside consultant to perform the initial audit process. If a task force is formed in the RD Department, it will need to be broadly representative to achieve faculty, staff, student and administrative support. The task force will need to be given staff and possibly financial support besides the necessary authority to attain success. The department should draw from the lessons of its past. For example, RD history indicates that sub-chairs were unintentionally formed at one time because of unclear lines of authority. 116 The RD Department also needs to examine the politics within the department to determine the effectiveness of using internal or external consultants or change agents. Rothman and colleagues found in their studies that an internal agent was more successful than an external agent in influencing the acceptance of change. The external agent, however, generated more enthusiasm, excitement and anticipation. (Rothman,etc:1983:l8) Persuasive abilities of persons acting as change agent will play an important role in the acceptance of a new concept. The various departmental people involved in the change need to know how this plan will solve their problems and what is in it for each of them. What will be their individual advantages from the change? All departmental personnel will want to know the nature of the advantages and how their behaviors will have to conform to receive them. Communication channels within the RD Department will be extremely important. They will convey the feelings and ideas about changes, advantages of those changes and possible actions required. For the department to be successful, its communication channels must serve the exploration, design and implementation of its marketing approach, especially by expansion through the informal organization. There will need to be a free flow of information among all the different groups within the 117 department. Administrators, faculty, staff and students of all subject matter and professional areas must willingly share information so that none feels threatened if its group is not emphasized at any particular moment. To enhance communication, the department may wish to arrange schedules to encourage informal meetings--group lunch or coffee breaks, traffic patterns that intermingle the areas of emphasis, open door policies of administrators and other similar actions. Each of these actions would encourage the sharing of information which has the innate ability to lessen levels of conflict and resistance. Two requirements in initiating a substantial change are leadership and rewards. '"Leadership is the process of influencing the activities of an individual or a group in efforts toward goal achievement in a given situation." (Hersey,etc.;1977:84) To achieve common departmental goals, the RD Department will at some time have to bring dissenters into the exploration, design and implementation of the marketing plan. It is a time consuming and complicated process to bring about major changes within groups or organizations even without major dissent. "An effective strategy may be to identify the informal and formal leaders among the work groups and concentrate on gaining their behavioral support for the desired change. Once 118 this is accomplished, organizational change may be affected by getting others to begin to pattern their behavior after those persons whom they respect and perceive in leadership roles." (Hersey,etc.:1977:281) It is debated that there is one best style of leadership. Several authors report substantial findings that "supervisors with the best records of performance focus their primary attention on the human aspects of their subordinates’ problems and on endeavoring to build effective work groups with high performance goals." (Hersey,etc.:1977:99) Though Hersey and Blanchard say that leadership style is most effective when it changes to meet specific situation requirements, a strong relationship with staff members is most frequently perceived as a necessary component. Then as styles need to change, for instance, as they would during a crisis situation, the transition would maintain its effectiveness. (Hersey,etc.:1977:104- 107) Leadership and administrative support are imperative to the success of a marketing plan. Needed is an assurance of budget support for the entire program. Also needed is leadership in attitude change within the department--change toward attitudes supportive of marketing approaches. Many schools have met faculty responses such as, "I am here to teach (or research), not 119 to recruit students," and "I’m too busy with my regular work, I don’t have time to document data for the task force." These attitudes are most likely to surface in the middle of a project when the project becomes more of a threat to the perceived status of one’s position. Will there be adequate leadership available in the RD Department to overcome such obstacles during the design and implementation of a marketing plan? The likely person to emerge as the key leader will be the one with a vision for the success of the marketing plan. This person will find the power to advance the idea and will work to maintain the forward momentum. Further, the person will need to create visual patterns from the marketing information to successfully communicate the plan to each of the groups or individuals involved in the project. "Every project--even non-controversial and apparently desirable ones--needs somebody behind it pushing, especially when things become difficult, as they usually do when change is involved. This kind of leadership involves communication plus conviction, both energized by commitment." (Kanter:1988:46) The department leadership must be such that it involves everyone and fosters so strong a commitment to the new marketing plan that it can be maintained. Involving all parties and developing feelings of commitment will take a strong and active leader. This 120 leader will probably experience unbearable pressures and maintain long work weeks for at least a year. Getting a group as diverse as the RD faculty to come to a full agreement on a marketing plan could be an involved and political task. Therefore, the leader will have to be someone who can stand rejection, and at the same time build motivation, freely share information, respect the expertise of co-workers, communicate exceptionally well, and continue to believe in the success of the new idea. The leader must have the ability, and authority, to build a working team to carry out the ideas of a marketing plan. Group efforts make it successful. "Change requires above-and-beyond effort on the part of everybody participating.“ It requires their creatiVity and their commitment." (Kanter:1988:52) Because of their training and expertise as researchers and educators, most academic leaders have not developed exceptional management or program leadership skills. Finding the best blend between knowledge of subject matter and knowledge of departmental management and programmatic operation is a major challenge. The RD Department also faces this leadership challenge. Incentive levels and reward systems will have to be studied, when introducing the change of a consumer orientation to the RD Department. Everyone working on the project will need to be rewarded in some manner. Now 121 faculty are rewarded for publications, research, extension outreach and related professional achievement. How will the faculty and staff be rewarded for recruitment of students, brochure development, speaking to community college groups, and helping to obtain employment for graduating students? People must be able to attain rewards of power, position, recognition, security and/or money if they are to be motivated to make major behavioral changes. Rewards are only rewards if they are perceived by the ones receiving them as such. Change can then become an opportunity rather than a threat. The introduction of new rewards into the departmental system must actively incorporate the needs of those being asked to change. Rewards can be decided through discussions and negotiations, for the rewards will have to be backed by the administrative authorities. When initiating a new behavior strong rewards meeting basic needs must be offered at first. As the behavior becomes more comfortable or is more accepted, the rewards may be altered to meet lower priority needs or may be offered less frequently. If the department’s search for a more meaningful position in the larger market is to succeed, the potential benefits of an implemented marketing plan must be clearly understood by all the persons involved in the process. 122 Key questions to be addressed include: Will a marketing plan position the department better within the College of Agriculture and Natural Resources, the University, or the State? Can the Department create or otherwise expand a uniqueness that is desireable to the University? What does the University want that only the RD Department can provide? What specifically, does the college and department want-~more students, more money and grants, one hundred percent employment of all graduating students, a field of study offered nowhere else on campus, or something else? The department must consider its orientation toward controlling its future, as well as defining its position in the market place. A long-range marketing plan could facilitate a change in management behavior from one of reacting to events to one that will foresee opportunities and seek their achievement. Further, the department must be willing to structure itself to be both market oriented and proactive. It must determine whether it has the infrastructure that will be able to deliver the promised value of the department. Its infrastructure must help the department attract high quality students, or provide better equipment, or an expanded program if those become outcomes the department seeks. 123 How the department establishes its goals and objectives, and how it makes use of them also will affect movement toward a marketing approach. Communication, through the goals and objectives, will help describe the new operations and expectations of the department and how it will fit into the environment after incorporating a marketing plan. How difficult is it to sustain a marketing plan? Kotler says, "There are two implementation stages: initial implementation and sustained implementation. The irony is that if initial implementation produces good results, the institution may never get to sustained implementation. The college feels self-satisfied, it relaxes the pressure to change, it tables further research, and it again loses touch with its environment." (Taylor:1986:47) L MI I NS There is no sure-fire approach to social marketing. Design and implementation of a marketing plan for an academic unit will require much trial and error. The social marketer must realize that both the consumer and the service provided possess different characteristics than do their counterparts in the private business market. Therefore, some of the private business marketing advantages are not available in social marketing. New 124 product testing and research capabilities to measure reactions to consumer services have not been developed to provide fast or reliable measurement tools in social settings. To overcome the special obstacles of social marketing and to learn to better manage the "specialness" of providing services, practitioners and marketing researchers must work closely together benefiting from their various social marketing trials and errors. Bringing practitioners and researchers together to share ideas and expertise in the formulation of a long-range marketing plan will not be easy. Social organizations do not feel the competitive pressures that the business world feels. Employees do not lose their jobs or gain promotions based on how well the organization performs. Consequently, new tactics have to be developed within this framework to assure quality performance. There is a great probability that special problems will arise in the RD Department as it tries to design and implement a marketing plan. From the study of the history, culture and values we can predict a difficult and slow process of reaching a consensus among the involved faculty members, staff, students and administrators. Changes that require a revision of individual performance systems likely will be slow to come about. A long-range marketing plan will take at least three years to explore 125 and develop and probably five years to fully establish and implement. In developing and adopting a new unit-wide marketing approach the department likely will experience an uncomfortable period when the negative attitudes will increase. Some departmental members may actually seek to eliminate the marketing approach and return to old behaviors. To achieve success, the department must plan for this critical period and build a momentum that will carry it through. If the RD Department decides to implement a marketing plan it will be taking a great risk. It will be in the role of innovator. Marketing in the educational setting is very new. Probably only a handful of universities have taken on the challenge. At Michigan State University, no single department appears to have made the decision to market itself. If the RD Department designs and implements a marketing plan, many others will be observing it to learn from its experience and to seek and provide advice. RECOMMENDATIONS Organizing for a unit-wide marketing approach, and initiation of supportive analysis for planning components will be two of the first tasks to be required if a 126 marketing plan is to be designed and implemented. New efforts require special information, appropriate data, and new sources of knowledge. Probably RD faculty and staff will be asked to perform many of these tasks. From the beginning the expectations for faculty and staff should be defined and the likely rewards should be clear. New ideas, many times, seem like nuisances because they require people to stop what they are doing or redirect their thinking. Those involved in the new plan need a stake or a special ownership in it if they are expected to volunteer the job changes that may be required. To get these resources, the leader must find individual supporters who have a personal commitment. It may be best to begin the marketing plan with a faculty and staff group that is more flexible and strongly committed to the program and then involve others. "If you involve others in a project, you give those people a stake in making the project work. Their reputations (and egos) are now on the line. As a result you, the leader, are not out there all by yourself trying to convince a reluctant organization to do something. Now you’ve got cheerleaders." (Kanter:1988:46) The department also needs to invest in information and training efforts to communicate to faculty and staff its expectations and department values. Further the 127 department should help faculty and staff learn about processes and demands of a marketing approach, as well as to develop the special skills that make the department unique. And, the department should help faculty and staff identify potential individual rewards and possibilities for promotion. Everyone in the department needs to be treated as a career professional. Employee feelings of role overload, lack of autonomy and responsibility, which inhibit change, can be overcome by information and training efforts. Such efforts will enhance the overall capabilities of the department so that as jobs change or become obsolete (due to the implementation of new marketing systems) people will be prepared for what lies ahead. Eventually, more work could be done on the mission statement of the department. It would benefit the department to be more easily definable to its own members and to its clientele. The uniqueness of the RD Department should be something that can be easily explained to interested individuals or groups. It is important for them to know the meanings of the new Department of Resource Development--as defined by the unit-wide marketing approach. All interested individuals and groups should be helped to understand that the new RD Department differs from the old one, but more important, that now it views its environment from a consumer’s orientation. 128 Current history of the RD Department is scattered or mostly stored in the heads of faculty. It would be nice to have a current update written by either Dr. Steinmueller or Dr. Vlasin. These two faculty members have personal histories with the department that span several leadership eras. Their influences throughout the years has been strong in creating the directions of Resource Development. Their written perspectives would share valuable historic insights for safe keeping over the years to come. Social marketing research is only beginning. The literature is encouraging in that it is relating experiences of application of the marketing theories to practical situations. Organizations are now ready to give up their institutional service orientations to explore their service markets and market potentials. Those researching social marketing and those practicing marketing need to work together as the topic is being explored. More and more, social organizations likely will find their own "nitch" in marketing. Their social marketing will have ties to commercial marketing, yet be quite different than commercial marketing. The RD Department could benefit the study of social marketing by closely documenting its experiences in exploring, designing and implementing a marketing plan. Whether the efforts succeed or fail, much is to be learned 129 from an evaluation of the process and outcome. It is important to examine, and document, the fine distinctions of social marketing so that others might benefit from the RD Department experiences. Whatever the specifics of a marketing plan the RD Department should gain from the design process and implementation of its marketing plan. A marketing process brings people together to solve problems and to grow in directions decided upon by the whole group. Though the framework of a long-range and strategic marketing plan (as described in earlier chapters) appears revolutionary, it incorporates concepts that appear over and over in education, community development, social work and many other fields of study with whiCh various RD faculty members are familiar. To be successful, the department must be willing to make some remarkable changes, especially in the way it decides how to best serve its market clientele, and, it will need to provide the required leadership to achieve the major changes. The RD Department can draw upon rather wide range of marketing concepts and potential strategies. Seldom does one marketing concept or one marketing strategy satisfy the requirements of a situation. Many times the best plan will result from using parts of several concepts and strategies, incorporating the portions that make sense to the people using them. If the department can be flexible, 130 open, listen well to the world around it and build toward the goals of the group, then it can be successful. APPENDIX APPENDIX 1988 THE DEPARTMENT OF RESOURCE DEVELOPMENT at MICHIGAN STATE UNIVERSITY Mission 0: eraggment The focus of the Department of Resource Development is on the interactions between people and their environment. It is an interdisciplinary department with over fifty years of history at Michigan State University. Faculty and students of the Department concentrate their attention on critical resource issues and the opportunities and conflicts that result when people try to manage their natural resources and develop their related community resources. In this way, the Department brings a broad perspective to the College of Agriculture and Natural Resources at Michigan State University. Resource Development serves as a partner to the more specialized, 131 132 discipline-oriented departments as we work together to improve the human condition throughout the world. Depagtment goais The goals of the Department are to discover and apply knowledge about: 1. how natural resources, including agriculture, are developed, used, and managed within social and political systems; 2. how natural resources stimulate or constrain the ability of communities, regions, nations and the world to change and develop: and 3. how, given these natural resource availabilities and constraints, human, social and political resources can best be used. How the Depagtment Operates Generally, the Department uses social science methods to understand relationships between-the natural-physical environment and people. The faculty is concerned about the use of basic resources (water, land, energy, minerals, and air), the goods and services derived from these resources, the quality of the environment, and the ways in which policies and institutions affect human use of the environment. 133 Resource Development faculty and students work together in small teams to develop strategies for managing natural and human resources to improve living conditions and sustain a healthy environment. These teams work with various groups including community leaders or public agencies to address resource problems, implement plans, and evaluate the consequences of policies. Many projects within the Department have focused on local communities and the State of Michigan. Some programs are national or international in scope. Major projects. have been undertaken in Latin America, Africa, Asia, and the Middle East. Ogganizagiog of ghe Department The current faculty have advanced training in such varied disciplines as soil physics, agronomy, resource conservation, resource management, economics, forestry, geography, sociology, psychology, education and law. Associated faculty from related academic departments at MSU, as well as professionals from the public and private sectors further strengthen the Department. Resource Development is organized into four areas of emphasis. 1. Natural Resource Management, 2. Environmental Policy and Law, 3. Resource Economics and Policy, and 134 4. Community and Regional Development. Each of these four areas stresses a distinct approach to resource development, but there is a healthy overlap among areas. Most faculty members span two or more areas in their work. The strength of the Department of Resource Development comes from the perspective its interdisciplinary teams develop while addressing critical resource issues. Over the past fifty years, the faculty and students of Resource Development have established a strong foundation for teaching, research, and public service on significant domestic and international resource issues. Why the Depaggmeng of Resoggcg Deveiopmegt wgs Esgablished Michigan State’s program in Resource Development had its formal beginnings with the establishment of a Conservation Institute in the College of Agriculture in 1937. This Institute was designed to deal with an array of resource conservation issues: most specifically, the land management problems of northern Michigan. Major emphasis was initially given to the classification of Michigan’s land resources, planning for better land use, and helping communities adjust through zoning and other land use policies. 135 The Institute’s activities were transferred to a new Department of Land and Water Conservation in 1950. The name was changed to Resource Development in a second reorganization in 1956. Throughout its history, the Department has focused on the classification of lands, soil and water conservation issues, water resource management, and resource public policy issues. Work on community resource development issues gradually emerged after the 19503 as a major area of extension work. The Department’s early emphasis on offering service courses for other departments was modified during the 1940s to permit the granting of master’s degrees. The teaching program was upgraded during the 19605: new courses were developed, a larger teaching staff was assembled, a doctoral program was initiated in 1966, and an undergraduate program was launched in 1969. REFERENCES REFERENCES Aaker, David A. 1984 Stpatggic Mapket napagement. New York: John Wiley & Sons. Barlowe, Raleigh 1976 "A Framework for Resource Development Policy." Pg. 1-9 in Barlowe, Department of Resource Deveiopment - Hispopy. East Lansing, Michigan: Michigan State University. 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