Mark Dixon & Trevor Thorne (Southampton Solent), Andy Durman (ACTIVE) JUNE 2008 Using Marketing Intelligence through the Profiling Tool MOSAIC to Inform a Targeted Marketing Campaign for Student Recruitment A Presentation by: Mark Dixon – Strategic Marketing Advisor - Southampton Solent University Trevor Thorne - Director of Marketing and Communications, Southampton Solent University Andy Durman – Business Development Manager, ACTIVE

Mark Dixon & Trevor Thorne (Southampton Solent), Andy Durman (ACTIVE) JUNE 2008 Outline of Presentation Trevor Thorne Issues affecting the use of market intelligence in UK HE MOSAIC as a marketing tool Mark Dixon The advantages of using geo-demographic tools Scenario of a targeted marketing campaign using MOSAIC Andy Durman Going beyond direct mail marketing

Mark Dixon & Trevor Thorne (Southampton Solent), Andy Durman (ACTIVE) JUNE 2008 Market Intelligence (MI) Market Intelligence is the information relevant to a company’s (organisation’s) markets, gathered and analysed specifically for the purpose of accurate and confident decision-making in determining market opportunity, market penetration strategy, and market development metrics Market intelligence is the systematic process of gathering, analysing, supplying information (both qualitative and quantitative) about the external market environment Wikipedia

Mark Dixon & Trevor Thorne (Southampton Solent), Andy Durman (ACTIVE) JUNE 2008 Issues affecting use of MI in HE Collegiality v managerialism Local level decision-making leading to ‘silo mentality’ Lack of perception of markets Supply-led thinking (prior to massification of HE) Taught courses informed by niche research interests Poor market intelligence Lack of good data (e.g. JACS codes) or analysis of data into useful management information Role, status and development of ‘Marketing’ in UK HE Little forward-thinking on portfolio development or lifecycle management Government determinism Lack of long-term strategic planning ‘Survival’ comes first!

Mark Dixon & Trevor Thorne (Southampton Solent), Andy Durman (ACTIVE) JUNE 2008 MOSAIC UK Mosaic classifies all consumers in the UK into 61 types, aggregated into 11 groups. Using over 400 data variables and updated annually, it paints a rich picture of UK consumers in terms of demographics, socio-economics, lifestyles, culture and behaviour. It enables organisations to profile customers, better understand consumer behaviour, analyse the demographic characteristics of local areas, identify market potential for products and services, understand the performance of site locations and target communications more effectively Experian

Mark Dixon & Trevor Thorne (Southampton Solent), Andy Durman (ACTIVE) JUNE 2008 MOSAIC UK Mosaic UK classifies consumers by household or postcode, allowing the optimisation of segmentation dependant on the application 46% of the data used to build Mosaic is non-census sourced information that is updated annually enabling it to monitor changes in consumer behaviour and incorporate these each year within the classification Mosaic UK is validated by a comprehensive programme of fieldwork and observational research covering each of the UK’s 120 postal areas Mosaic UK is available for use on a bureau basis, or in-house as a licensed directory to augment customer databases or for use with mapping software for geographical analysis Experian

Mark Dixon & Trevor Thorne (Southampton Solent), Andy Durman (ACTIVE) JUNE 2008 MOSAIC classifications Determine whether you prefer city bustle or country peace, what you’ll buy, how you vote, your inner fears, and how best others might communicate with you! Six recently added classifications: City Adventurers Motorway Magnets Global Connectors British-born Asian Entrepreneurs Rural Isolationists High Technologists

Mark Dixon & Trevor Thorne (Southampton Solent), Andy Durman (ACTIVE) JUNE 2008 Targeting using MOSAIC The advantages of using geo-demographic tools include: Targeting the ‘locationally disadvantaged’ (Hugo, 1998), Locating districts with high levels of minority students (Martin, 2001), Building up profiles based on standard deprivation measures (Read et al, 2005), Creation and visualisation of catchment areas (Tonks and Farr, 1995; Mora, 2003) that would be lost in tables and text, Profiling of areas to develop new courses (or business) that could appeal to this segment (Mitchell and McGoldrick, 1992), Targeting of areas located close to feeder colleges, Development of area specific plans for targeted marketing activities and through real-time analysis provide on-the-fly retargeting of recruitment (Marble et al, 1996), Identifying, with precision, the geographical location of a specific audience to facilitate communication (Tonks and Farr, 1995), Identifying those groups most likely to become customers (Mitchell and McGoldrick, 1992)

Mark Dixon & Trevor Thorne (Southampton Solent), Andy Durman (ACTIVE) JUNE 2008 Targeting using MOSAIC Scenario: Increase participation from ‘low participation neighbourhoods’: Campaign objective: Identify lifestyles of individuals classed as deriving from ‘low participation neighbourhoods’ Student Lifestyles

Mark Dixon & Trevor Thorne (Southampton Solent), Andy Durman (ACTIVE) JUNE 2008 Targeting using MOSAIC Outline of Process Targeting Marketing Campaign Using data supplied by HESA, identify individual students derived from ‘low participation neighbourhoods’, Match this dataset with a student’s Home postcode Import this enhanced dataset into the ‘Lifestyles Software’, Check each pen portrait to ascertain if each identified lifestyle does indicate a location where few individuals go unto University, Map locations of all postcodes in these key lifestyles, Look for ‘Hotspots’ or concentration of neighbourhoods that will be the most profitable to target, Output specific postcodes for these areas, Examine postcodes against other dataset to get to your core target audience.

Mark Dixon & Trevor Thorne (Southampton Solent), Andy Durman (ACTIVE) JUNE 2008 Targeting using MOSAIC Outline of Process Targeting Marketing Campaign CAMPAIGN INTELLIGENCE WHO are the targets? WHERE: Gather Postcode data Lifestyle matching analysis Core ‘targets identified’ against other datasets Map lifestyles to key areas Mapping

Mark Dixon & Trevor Thorne (Southampton Solent), Andy Durman (ACTIVE) JUNE 2008 Targeting using MOSAIC Match MOSAIC to your own postcode data Purpose: To identify the key urban areas for a targeted campaign. ARCHIVE Low Participation Neighbourhood data ACTIVE Lifestyles

Mark Dixon & Trevor Thorne (Southampton Solent), Andy Durman (ACTIVE) JUNE 2008 Student Profiling – Mosaic Profile Example

Mark Dixon & Trevor Thorne (Southampton Solent), Andy Durman (ACTIVE) JUNE 2008 Targeting using MOSAIC Analysis of one particular lifestyle Southampton Solent University Solent ‘H47 - New Town Materialism’ Hotspots in South East of England

Mark Dixon & Trevor Thorne (Southampton Solent), Andy Durman (ACTIVE) JUNE 2008 Targeting using MOSAIC Analysis of one particular lifestyle Southampton Solent University Solent ‘H47 - New Town Materialism’ Hotspots in South East of England Hatched area encompasses 1,560 individual postcodes relating to 33,000 households.

Mark Dixon & Trevor Thorne (Southampton Solent), Andy Durman (ACTIVE) JUNE 2008 Targeting using MOSAIC Analysis of one particular lifestyle Southampton Solent University Solent ‘H47 - New Town Materialism’ Hotspots in Southampton Area Isolating the Hotspots produces a more manageable 900+ postcodes which constitutes 18,000 households.

Mark Dixon & Trevor Thorne (Southampton Solent), Andy Durman (ACTIVE) JUNE 2008 Targeting using MOSAIC Analysis of all lifestyles connected with low participation neighbourhoods Southampton Solent University Solent Hotspots in South East Area

Mark Dixon & Trevor Thorne (Southampton Solent), Andy Durman (ACTIVE) JUNE 2008 Targeting using MOSAIC Summary One strong example of MOSAIC is isolating areas of deprivation - assist in widening participation, Could add to the map the location of schools and colleges to identify which are the most appropriate to visit for particular groups of students, Knowledge of individual lifestyles can assist in selecting the most appropriate communication channel to reach these individuals, Allows testing of hypotheses in particular locations before running a full blown campaign, Can minimise risk and take away some of the guesswork.

Mark Dixon & Trevor Thorne (Southampton Solent), Andy Durman (ACTIVE) JUNE 2008 Developing our thinking Demographic and lifestyle analysis goes beyond direct mail marketing

Mark Dixon & Trevor Thorne (Southampton Solent), Andy Durman (ACTIVE) JUNE 2008 Developing our thinking Demographic and lifestyle analysis goes beyond direct mail marketing Schools Liaison Planning: Evaluate proximity of schools to target postcodes Evaluate current target schools, often based on historic relationships Prioritise schools visited using proximity of target demographics Ensure resources are used most effectively

Mark Dixon & Trevor Thorne (Southampton Solent), Andy Durman (ACTIVE) JUNE 2008 Developing our thinking Demographic and lifestyle analysis goes beyond direct mail marketing Event Planning: Find alternative methods to communicating with target lifestyles Take appropriate marketing materials and messages to key neighbourhoods Identify opportunities or events within target neighbourhoods Supermarkets Community facilities Local events

Mark Dixon & Trevor Thorne (Southampton Solent), Andy Durman (ACTIVE) JUNE 2008 Developing our thinking Demographic and lifestyle analysis goes beyond direct mail marketing Conversion analysis: Analysis of conversions from applicant to enrolment by lifestyle type Understand those lifestyles that are most likely to convert – ‘good customers’ Understand those lifestyles that are less likely to convert What might the barriers to enrolment be? How can we break down these barriers? Are these groups ever likely to enrol? Utilise intelligence to market appropriately Focus activities between application and enrolment

Mark Dixon & Trevor Thorne (Southampton Solent), Andy Durman (ACTIVE) JUNE 2008 Developing our thinking Demographic and lifestyle analysis goes beyond direct mail marketing Understanding untapped demand: Profile local demographics against enrolment profile Which local population groups not appearing amongst our student population? Explore socio-demographic profile of these low penetration groups Understand potential barriers: Education level Course profile on offer Marketing messages Competition from other institutions Age Prioritise which new markets to target and build appropriate strategies to engage with the target population

Mark Dixon & Trevor Thorne (Southampton Solent), Andy Durman (ACTIVE) JUNE 2008 Developing our thinking Demographic and lifestyle analysis goes beyond direct mail marketing Competitor analysis: Geographic analysis of enrolments identifies the impact of competitor institutions Analysis of recruitment of students from the locality of competitor institutions can evidence competitive advantage in particular course areas Model potential impact of competitor’s improvement Widening curriculum More effective marketing Develop strategies to minimise impact should competitor improvement occur. Forewarned is fore-armed!

Mark Dixon & Trevor Thorne (Southampton Solent), Andy Durman (ACTIVE) JUNE 2008 Summary: Marketing intelligence = informed decision making MOSAIC adds to marketing intelligence i.e. better understand consumer behaviour, analyse the demographic characteristics of local areas, identify market potential, target communications etc. MOSAIC can be used to target student groups based on their ‘lifestyles’, Assist in defining communication channels and media, Conversion Analysis – building up intelligence Searching for untapped demand, Competitor analysis