Chapter 18 - Sales Promotion and Personal Selling

Experience is Key...

 

    Businesses across the world do all they can to hold effective promotion activities targeting the ultimate consumer. Whether its through coupons, sweepstakes, hiring effective sales persons, or offering rebates, if the customer has an incentive to buy; they will most likely buy. The Boys and Girls Clubs America doesn't use any of these techniques though - they use a technique called sampling. Many clubs across the nation allow non-members to sample what the they offer by allowing a "free day." The second main source of income for clubs, behind sponsors, are memberships and registration fees from events. The more people that are in the building, the more revenue the club is generating. That is why clubs offer free days on specific dates, and others may allow a non-member to come any one-day they please.

Source: http://www.mbgcnh.org/main_sublinks.asp?id=1&sid=45

    Not only does the free day program attract more than just kids, it boosts membership purchases depending on the turnout. The Boys and Girls Club of Manchester, New Hampshire is one of the many clubs that holds the free day program. The club calls the event "Day for Kids" presented by Panera Bread. The event offers a great all around experience for new customers by hosting live shows, music & dancing, food, arts and crafts, and much more!

(The "Day for Kids" ad above is another representation of cause-related advertising talked about in my advertising blog post for Chapter 17.)

Chapter 17 - Advertising and Public Relations

One hand washes the other when seeking sponsorships...

BGCA's BE GREAT advertising slogan

     When any non-profit organization approaches a company for a sponsorship, that company is faced with a decision to make. A sponsorship is an investment, and before the company sponsors an organization they look at how the business decision will be a benefit. Let's say an organization asks a local business for a $1000.00 sponsorship. That business needs to know if the investment will be more profitable as a result, instead of taking that money and creating an ad in the paper. In essence, the organization asking for the sponsorship needs to promote the local business so they feel it was a good investment. This is when the advertising sector for that non-profit needs to step up, and one of the best in the market right now is the Boys and Girls Clubs of America.

    When any Boys and Girls Clubs of America hosts an event, they need capital - so they look for sponsors. Through hard work and great promotion, many clubs across the nation build great relationships with their sponsors that give much needed help. A powerful advertising slogan the BGCA uses worldwide is "BE GREAT". - two powerful words that the organization teaches their youths to strive for everyday. Many companies like seeing that positive attitude when sponsoring an organization, that's why the BGCA has so many sponsors. Microsoft, Taco Bell, Tupperware Brand, H&M, The MLB, and The NBA, just to name a few, are all are long-time sponsors of the BGCA. Every time one of these companies sponsors an event, The BGCA adds the company logo to all ads pertaining to the event, gives a recognition speech for the company's contributions, and volunteers to help that company in any events they may hold. This is called cause-related marketing - here are a few companies showcased in BGCA ads...

The BGCA helps a long-time sponsor, H&M, attract more customers to their store by using their strong brand name and slogan. A percent of every H&M sale is then used to help the BGCA. 

Tupperware sponsors the BGCA's annual Youth of the Year event, and in return, The BGCA promotes Tupperware brand (flyers, program pamphlets, commercials, etc.).

     The BGCA's prestigious Youth of the Year event is like the Super Bowl of all BGCA events, and it gets a lot of media coverage. If people aren't at the event watching it, than they can read it on newspapers for weeks after the event is over. By Tupperware sponsoring an event geared towards promoting volunteer service, leadership, and character of our youths, it gives Tupperware a positive rep and a motive for customers to choose their product over competitors. In this situation it is a win / win for everyone, The BGCA, Tupperware, and the consumer. That is how powerful the Boys and Girls Clubs of America are in cause-related marketing. In this industry, one hand has to wash the other - and the BGCA's hands are quite clean.

Chapter 15 - Retailing

My Recent Retail Experience...

  

    Although every Boys and Girls Clubs of America chain is based on service rather than retail, I've noticed some aspects of retailing. When it comes to chain stores, the BGCA is more of a chain organization because although the BGCA isn't really a "store," every club facility is owned by the BGCA. In any club facility, the consumer can see memberships, specialties, and departments, all that are often seen in retail stores. The BGCA adds their own twist though. When it comes to club memberships, instead of receiving rewards and discounts, members are allowed to use the facilities in the club and have exclusive offers on field trips, programs, and even job opportunities!

    The BGCA doesn't offer everything though, because they are a specialty organization. Every BGCA specializes on human development, just like Staples specializes in office supplies.

    Like a department store, most BGCA clubs have departments. If a mother is looking for morning daycare for her 2 yr old child, she will be directed to the daycare department. Or, if a customer calls and asks about athletics, they will be directed to an athletic director. Although there is a front desk in every club facility, one of the main purposes of a front desk is to listen to the customer's needs and channel them to the right department.

Source: http://citygirlnyc.com/?tag=duane-reade

    My experiences shopping at retailing stores vary with the level of service they offer, the type of ownership, their product assortment, and of course the pricing on the shelves. Although I didn't have the chance to visit a local Boys and Girls Club, I recently visited Duane Reade - a popular drugstore chain located all around New York City. Duane Reade is very similar to CVS, Wallgreens, and Rite Aid. In the pharmaceutical industry, Duane Read and others alike hold a dominant share of the market, because not only can they fill my prescriptions, but some offer 24 hour service, convenience, membership rewards, and other non-traditional items like candy or toys. That is why I chose to shop there when I realized I needed a new deodorant. There are two Duane Read stores in the area where I go to college and take the 6 train home, so it was convenient for me. I also have what they call a Duane Reade Flex Rewards Card, for loyal customers like me who enjoy the special discounts. Instead of getting my deodorant at retail price for $3.99, I only paid $2.99 with my rewards card.

      As I end this note, the one aspect of a good shopping experience that I must sacrifice when picking Duane Reade is the level of service I will receive. Many chain stores struggle to provide decent customer service. The Duane Read I shopped at was very understaffed, and the only time I saw a staff member was the one scanning my items as I checked out. Chain stores aren't like your local mom and pop stores, because consumers nowadays value a good price and convenience rather than customer service.

Chapter 6 - Consumer Decision Making

Who Says Making Shopping Decisions Was Easy?

       
    Walking into a Boys and Girls Club facility, the average consumer doesn't stop and think about the many behaviors involved in purchasing a membership. Every consumer is unique in a way that defines how they shop in certain situations. Whether it is their first time, being accompanied by a child, or being a regular customer renewing a membership, a lot of factors influence the decision-making process before the final purchase.

    Whether the consumer knows it or not, there are 5 key decision-making steps that are implemented every time he or she has a cash in their wallet, and a product in their sights. These 5 steps are: (1) need recognition, (2) information search, (3) evaluation of alternatives, (4) purchase, and (5) post-purchase behavior. Not all steps occur in order depending on the involvement or interest the consumer has into the product, that's why ever shopper is different.

    For the most interested and involved consumer, all of the steps listed above will be covered in one way or another. I will use the Boys and Girls Club of Bristol, CT and a child's parents as examples of how these steps are explored in buying a membership.

    One day, mother and a father decide it is getting too expensive to pay for a sitter and they recognize the need for the supervision of their child after school while at work. Contemplating whether or not to let the sitter go, the mother searches for information on the internet, and asks friends and family for advice on good alternatives. Now the mother feels confident in an evoked set of alternatives that she gathered from external information sources. These alternatives are: The Boys and Girls Club of Bristol CT, The YMCA of Plainville, CT, or an after school program held at their child's elementary school. After 2 days worth of evaluation and calling around, the mother decided that the best and most affordable alternative was the Boys and Girls Club of Bristol, CT with memberships of only $20 per year. The YMCA and after school program were cutoff due to prices too close to what they were paying before. The father agreed to the decision as well because he doesn't care where his wife puts their child, as long as it doesn't burn a hole in his pocket. Price often influences the decision making of consumers.

Kids having a great time at the annual Academic Decathlon hosted by the Boys and Girls Clubs of Bristol, CT

    A week later, the parents let go of their sitter and purchase the membership. As the mother walks in to pick up her child the next day, she sees her child and all of the kids laughing and smiling in game room. This experience reinforces their confidence in making a good decision, because she knows it will be a good social experience for her child. Now, the parents are satisfied with their decision and have saved money as a result.

    I am not saying every parent will have the same reaction, but her involvement in finding the right place for her child increased the positive behavior after the purchase. A less involved parent would have probably not put a lot of effort in the decision making process, possibly causing her not to purchase a membership at all. If the Boys and Girls Club's prices weren't so cheap, the decision making process would have been harder and more time consuming. That is yet again, another edge the Boys and Girls Clubs of America has on it's competitors. Who wants to make shopping hard?

* The figures and scenarios used in this blog are true to the Boys and Girls Club of Bristol, CT