Back to Basics: Trends and Educator Outlooks on School Spending A - - PowerPoint PPT Presentation

Back to Basics:

Trends and Educator Outlooks on School Spending

• A webinar exclusively for Educational Book

and Media Association members

• Presented by Bob Stimolo, president and

founder, School Market Research Institute, Inc.

• Includes recent data collected from:
• Survey of school marketers
• Survey of school secretaries
• Tested marketing strategies and practices

School Secretary Survey

What is your opinion of the amount of direct mail and catalogs that your school receives each year?

2% 5% 21% 72% 0% 10% 20% 30% 40% 50% 60% 70% 80%

Somewhat less than necessary Just the right amount Somewhat more than necessary Way too much Source: SMRI-MDR 2018 School Secretary Survey

What is your opinion of the number of email promotions received by yourself and others in your school each year?

1% 2% 20% 52% 25% 0% 10% 20% 30% 40% 50% 60% Way too little Somewhat less than necessary Just the right amount Somewhat more than necessary Way too much Source: SMRI-MDR 2018 School Secretary Survey

What is your opinion of the number of spam emails received by yourself and others in your school each year?

2% 4% 18% 40% 37% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Way too little Somewhat less than necessary Just the right amount Somewhat more than necessary Way too much Source: SMRI-MDR 2018 School Secretary Survey

How would you rate the technology readiness of your school?

2% 31% 67% 0% 10% 20% 30% 40% 50% 60% 70% 80%

Not yet technology ready Somewhat technology ready Very technology ready Source: SMRI-MDR 2018 School Secretary Survey

In my school at least one computer with Internet access can be found in:

3% 3% 8% 87% 0% 20% 40% 60% 80% 100%

Few classrooms Some classrooms Most classrooms Every classroom Source: SMRI-MDR 2018 School Secretary Survey

Do you believe the majority of teachers view their email:

1% 9% 31% 59% 0% 20% 40% 60% 80%

On their computer at home On a mobile device (cell phone, tablet, Blackberry) On their classroom computer All of the below Source: SMRI-MDR 2018 School Secretary Survey

In your opinion what is the single best way to advertise educational products and services to administrators?

1% 1% 4% 4% 5% 12% 15% 25% 34% 0% 10% 20% 30% 40%

Telephone call Personal sales call Social media Print ads in education magazines and journals Web ads Internet search engines Direct mail (letters, catalogs) Educator conferences Email Source: SMRI-MDR School Secretary Survey

In your opinion, what is the single best way to advertise educational products and services to teachers?

1% 1% 3% 4% 10% 13% 17% 20% 32% 0% 10% 20% 30% 40%

Telephone call Personal sales call Print ads in education magazines and journals Web ads Social media Internet search engines Direct mail (letters, catalogs) Educator conferences Email Source: SMRI-MDR 2018 School Secretary Survey

In your opinion, what is the single best way to advertise educational products and services?

0% 5% 10% 15% 20% 25% 30% 35% 40% Telephone call Personal sales call Social media Print ads in magazines & journals Web ads Internet search engines Direct mail Educator conferences Email

Administrators Teachers Source: SMRI-MDR 2018 School Secretary Survey

School Marketers Most Effective Media vs School Secretaries Best Way to Advertise

0% 5% 10% 15% 20% 25% 30% 35% 40% School Marketers Which is the most effective media School Secretaries Best way to advertise

Source: SMRI 2018 Surveys-School Marketers vs School Secretaries

In the 2017-18 academic year do you expect that your school will spend more or less on printed instructional materials?

6% 24% 45% 16% 9% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Much less Somewhat less The same as last year Somewhat more Much more Source: SMRI-MDR 2018 School Secretary Survey

In the 2017-18 academic year do you expect that your school will spend more or less on school supplies?

2% 11% 51% 28% 9% 0% 10% 20% 30% 40% 50% 60% Much less Somewhat less The same as last year Somewhat more Much more Source: SMRI-MDR School Secretary Survey

In the academic year 2017-18 do you expect that your school will spend more or less on digital/online instructional materials?

3% 8% 38% 48% 7% 0% 10% 20% 30% 40% 50% 60% Much less Somewhat less The same as last year Somewhat more Much more Source: SMRI-MDR 2018 School Secretary Survey

In the 2017-18 academic year do you expect that your school will spend more or less on instructional materials?

0% 10% 20% 30% 40% 50% 60% Much less Somewhat less The same as last year Somewhat more Much more Printed Material School Supplies Digital/Online Material

Source: SMRI-MDR School Secretary Survey

What is the biggest issue facing your school administrators this year?

5% 8% 31% 56% 0% 20% 40% 60%

Implementation of Common Core State Standards Improvement in technology readiness Assessments, student performance on standardized tests School funding

Source: SMRI-MDR 2018 School Secretary Survey

In your school, where do funds for most classroom materials come from?

10% 4% 18% 68% 0% 10% 20% 30% 40% 50% 60% 70% 80% Other PTA/PTO Teacher out-of-pocket School funds

Source: SMRI-MDR 2018 School Secretary Survey

The Trump administration has decided to return education policy decisions to the states. What impact do you think that will have

• n states spending to meet federal education requirements?

13% 18% 52% 11% 6% 0% 10% 20% 30% 40% 50% 60% Funds previously spent will significantly free up Funds previously spent will somewhat free up There will be little or no change in spending Spending will somewhat increase Spending will significantly increase

Source: SMRI-MDR 2018 School Secretary Survey

Do you think that the Trump administration’s decision to return education policy decisions to the states will:

6% 12% 42% 22% 18% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Will significantly hinder our school's ability to meet the needs

• f students

Will somewhat hinder our school's ability to meet the needs of students Will have little or no impact on our school's ability to meet the needs of students Allow our school to do a somewhat better job at meeting the needs of students Allow our school to do a much better job at meeting the needs

• f students

Source: SMRI-MDR 2018 School Secretary Survey

Do you think that school choice and vouchers that enable parents to choose alternative schools for their children would:

17% 17% 34% 13% 19% 0% 10% 20% 30% 40%

Allow our school to do a much better job at meeting the needs

• f students

Allow our school to do a somewhat better job at meeting the needs of students Will have little or no impact on our school's ability to meet the needs of students Will somewhat hinder our school's ability to meet the needs of students Will significantly hinder our school's ability to meet the needs of students

Source: SMRI-MDR 2018 School Secretary Survey

School Marketer Survey

School Market Sales % Increase (Decrease) 2013-2018 Forecast

• 2%
• 1%

0% 1% 2% 3% 4% 5% 6% 7% 2013 2014 2015 2016 2017 2018

Source: School Market Research Institute, Inc.

Enrollment (000) by Grade Level

5,000 10,000 15,000 20,000 25,000 2013 2014 2015 2016 2017 2018 PreK Elementary Middle/Jr Senior

Source: Projections of Education Statistics to 2025 by NCES

Sales Growth vs Expenditure Per Pupil in Constant $

• 4.0%
• 2.0%

0.0% 2.0% 4.0% 6.0% 8.0% 2013 2014 2015 2016 2017 2018 Sales

• Exp. Per Pupil

Source: Projections of Education Statistics to 2025 by NCES

Sales Growth vs % Change in New Teacher Hires

• 10.0%
• 8.0%
• 6.0%
• 4.0%
• 2.0%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 2013 2014 2015 2016 2017 2018 Sales New Hires

Source: School Market Research Institute, Inc.

Sales Growth by Industry Segment

• 6.0%
• 4.0%
• 2.0%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 2013 2014 2015 2016 2017 2018 Publishing School Supplies Furniture

Source: School Market Research Institute, Inc.

Sales Growth by Market Segment

• 2.0%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 2013 2014 2015 2016 2017 2018 PreK Elementary Middle/Jr Senior

Source: School Market Research Institute, Inc.

Technology Budget Outlook: All Districts 2016-17 School Year

0% 10% 20% 30% 40% 50% 60% 70% Increase a lot Increase a little Stay the same Decrease a little Decrease a lot Hardware Software Training Support

Source: EdNET Insight Survey by Market Data Retrieval

Districts Expecting Technology Budget Increases 2016-17 School Year

44% 42% 32% 35% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Hardware Training Software Support

Source: EdNET Insight Survey by Market Data Retrieval

Back to Basic Marketing

School Marketers Most Effective Media

0% 5% 10% 15% 20% 25% 30% 35% 40%

Source: SMRI 2018 Surveys-School Marketers vs School Secretaries

Potential to Increase Response Rates List Selection Up to 500% Offer Up to 100% Timing Up to 50% Package Up to 50% Copy and Design Up to 30%

How Your Promotion Dollar Is Spent Cost/Piece % of Total List Rental $.10 10% Creative $.15 15% Print and Mail $.75 75% Total $1.00 100%

Marketing to Prospects Market to schools and districts that have discretionary monies. Market to educators that are most in need of supplemental materials.

Sales by Expenditures for All Instructional Materials (AIM)

$78.27 $95.92 $279.42 $179.42 $124.34 $134.41 $130.14 $134.59 $149.82 $153.66 $118.51 $45.98 $0 $50 $100 $150 $200 $250 $300 $350 $500 $400-$499.99 $350-$399.99 $300-$349.99 $270-$299.99 $250-$269.99 $220-$249.99 $200-$219.99 $180-$199.99 $145-$179.99 $1-$144.99 Unknown

Sales per Institution A i m R a n g e

Sales by Allocation of Title I Funds per Student

$147.43 $147.09 $130.04 $166.86 $0 $50 $100 $150 $200 $250 $275 + $175-$274 $85-$174 $1-$84

Sales per Institution

T i t l e I A l l

• c

a t i

• n

Sales by Household Income (HHI)

$194.94 $148.71 $133.09 $120.82 $140.92 $0 $50 $100 $150 $200 $250 $70,000+ $50,000-$69,999 $40,000-$49,999 $35,000-$39,999 Under $35,000

Sales per Institution H H I

Affinity Model Sales by Institution

Total Total Responding Total Sales Per Decile Institutions Responses Institutions Revenue Institution 1 11,699 4,683 2,541 $875,465 $74.83 2 11,700 1,809 1,077 $643,277 $54.98 3 11,699 1,346 846 $454,166 $38.82 4 11,700 813 543 $281,666 $24.07 5 11,699 800 495 $167,086 $14.28 6 11,700 668 422 $143,309 $12.25 7 11,700 580 367 $112,572 $9.62 8 11,699 452 310 $67,523 $5.77 9 11,700 362 252 $46,497 $3.97 10 11,700 209 157 $27,118 $2.31

Affinity Model Sales/Contact

Total Total Responding Total Sales Decile Institutions Contacts Institutions Revenue Contact 1 11,699 128,745 2,541 $875,465 $6.80 2 11,700 112,680 1,077 $642,277 $5.70 3 11,699 105,620 846 $454,166 $4.30 4 11,700 95,480 543 $281,666 $2.95 5 11,699 80,330 495 $167,086 $2.08 6 11,700 75,426 422 $143,309 $1.90 7 11,700 68,226 367 $112,572 $1.65 8 11,699 57,223 310 $67,523 $1.18 9 11,700 48,945 252 $46,497 $0.95 10 11,700 42,372 157 $27,118 $0.64

Affinity Model Educator Report

Jobs Title Total Contacts # Responding Personnel Personnel Response Rate Total Revenue Ave Revenue Per Contact School Secretary/Administrative Assistant 4,133 358 67.67% $114,238 $27.64 History Teacher 140 7 21.88% $3,093 $22.09 Assistant Principal 2,352 101 18.10% $38,874 $16.53 Superintendent 1,130 8 1.86% $7,333 $6.49 K-12 Social Studies Director 965 11 3.51% $5,315 $5.51 Seventh Grade Teacher 16,009 293 5.59% $76,837 $4.80 Director 165 12 60.00% $772 $4.68 Library Aide 433 8 3.69% $1,836 $4.24 Social Studies Teacher 10,303 166 4.11% $43,466 $4.22 Eighth Grade Teacher 11,439 185 4.73% $47,997 $4.20

The Best Prospects

Schools and districts located in communities with high household income. Experienced educators new in their current job.

Which teacher is most likely to purchase supplementary materials?

52% 24% 8% 2% 23% 0% 20% 40% 60% First year teacher Second year teacher Third year teacher Fourth year teacher Teaching 5+ years

Source: School Secretary Survey, School Market Research Institute, Inc. NOTE: Multiple responses cause the total to exceed 100%.

When will your school begin to make decisions about purchases made in the upcoming school year?

6% 5% 6% 12% 11% 19% 21% 20% 5% 4% 2% 1% 0% 1% 0% 5% 10% 15% 20% 25%

Source: School Secretary Survey, School Market Research Institute, Inc. NOTE: Multiple responses cause the total to exceed 100%.

When Orders Are Received By School Secretaries From Educators

15% 11% 15% 25% 32% 14% 3% 9% 31% 13% 5% 5% 1% 0% 10% 20% 30% 40% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec All Year

Source: School Market Research Institute, Inc.

Purchase Request Submission For Fall Delivery Of Product

4.2% 5.3% 15.2% 25.9% 36.4% 12.3% 3.6% 6.5% 8.0% 5.2% 4.3% 3.1% 0% 10% 20% 30% 40% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Source: Market Data Retrieval, Educator Buying Trends: A National Survey

Direct Marketing Theorem Mailing the same promotion to the same list, 4 to 6 weeks after the first mailing will deliver approximately 1/2 the response

Typical Mailing Windows In The School Market

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Mail Volumes First mailing Remail to best segments

Institutional Purchases

Source: School Market Research Institute, Inc.

Free Consultation

Free ½ hour telephone consultation to any EBMA member

Please schedule an appointment at rstimolo@smriinc.com Sign up to participate in the next quarterly survey of school marketers at http://www.smriinc.com/survey.html