1. Page 1 NSF STC Industry/University Cooperative Research Centers Member Recruiting: A Focus on Marketing

2. Page 2 NSF STC Industry/University Cooperative Research Centers Purpose Help improve IUCRC member recruitment by highlighting marketing “best practices”Help improve IUCRC member recruitment by highlighting marketing “best practices” – Summary of a recent survey of center marketing practices – Highlight some specific best practices – Stimulate discussion about what works and what doesn’t work when trying to recruit member companies

3. Page 3 NSF STC Industry/University Cooperative Research Centers Who will join and who will decline? An analysis of factors predicting a firm’s decision to join a university-based industrial consortia Denis O.Gray, Ph.D & Drew Rivers, M.S. Psychology in the Public Interest Program NC State University

4. Page 4 NSF STC Industry/University Cooperative Research Centers Motivation Why ImportantWhy Important –Recruitment of new members is one of the most, if not the most, important challenges a center directors confronts –Affects technology transfer »Joiners : »Sustain these centers »Get to influence the research agenda »Get technology transfer and other benefits (e.g. recruitment) »Decliners »Do not … –Factors affecting participation/non-participation in CRCs is an important scholarly issue »Very small literature

5. Page 5 NSF STC Industry/University Cooperative Research Centers Study Plan Center marketing practicesCenter marketing practices – Web-based survey of IUCRC Directors »Complete Factors within the firm affect decision to join/not joinFactors within the firm affect decision to join/not join – Qualitative interviews »Underway Quantify the importance of various factors to membership decisionQuantify the importance of various factors to membership decision – Questionnaire »Next Year

6. Page 6 NSF STC Industry/University Cooperative Research Centers Center Marketing Study- Overview MotivationMotivation –It is the part of the membership process that Center Directors have the most control over –No literature! PurposesPurposes –Identify which advertising, marketing and recruiting strategies directors use –Perceived effectiveness (best practices) –Explore empirical relationship of practices to “success”: leads; new members –Perceived facilitators and barriers to membership Web-based survey of IUCRC directors & site directorsWeb-based survey of IUCRC directors & site directors –Response rate: 55% (n=47), 41 different centers –Analyses: Descriptive, predictive

7. Page 7 NSF STC Industry/University Cooperative Research Centers Background: Effort and Results

8. Page 8 NSF STC Industry/University Cooperative Research Centers Center Marketing Overview New member marketing is modest ad hoc activity –Annual budget (without staff time): $7,000; Std Dev: $10k –18 hours/month or 4.5/week on recruitment –9% report a formal, written marketing plan –34% set formal recruitment goals »Use of marketing plans and recruitment goals correlates negatively with membership counts

9. Page 9 NSF STC Industry/University Cooperative Research Centers Multi-site center recruiting [If your site is part of a multi-site center, please answer item 9] 9) Which of the following best describes how your multi- site center handles recruiting? (n=32) –50%: Each site handles recruiting independently of other sites –25%: Each site establishes their own leads, but other sites help 'sell' the center –25%: Sites work closely together throughout the recruitment process

10. Page 10 NSF STC Industry/University Cooperative Research Centers Recruiting Success Rates Lead generationLead generation –On average, centers generate about 11 new leads over a 12 month period New member commitmentsNew member commitments –On average, for every 10 firms actively pursued by centers for membership: »3 will join »2 will decline »5 will be undecided

11. Page 11 NSF STC Industry/University Cooperative Research Centers Descriptive Findings: Marketing Activities and Perceived Effectiveness

12. Page 12 NSF STC Industry/University Cooperative Research Centers From leads to prospect 1) Consider how your center/site identifies potential industry members. How effective have you found the following activities in generating leads for new members? Effectiveness Percent reporting use Many methods used to identify prospects Relationship networking viewed as most effective

13. Page 13 NSF STC Industry/University Cooperative Research Centers Recruiting responsibilities 7) To what degree are the following individuals or groups actively involved in the recruitment of industry members? Degree of involvement Percent reporting involvement Directors bear most of the recruitment burden Consultants also contribute

14. Page 14 NSF STC Industry/University Cooperative Research Centers Recruiting responsibilities 6) For those organizations interested in learning more about your center/site, how effective have you found the following approaches at securing new members? Level of effectiveness Percent reporting use Dedicated marketing visits appear to be superior

15. Page 15 NSF STC Industry/University Cooperative Research Centers Predictive Findings: What Factors Correlate with Memberships

16. Page 16 NSF STC Industry/University Cooperative Research Centers Predictive Findings LeadsLeads –Total center funding –Larger recruiting budget –Director administration time & past industry experience MembershipsMemberships – Presenting at trade shows and scientific meetings – Networking through other stakeholders (IAB, faculty PIs) – – Director with industry experience Industry experience director relationshipsIndustry experience director relationships –More leads –Higher percentage of rejections –Higher networking for leads through other center staff –Get other stakeholders involved in recruiting (IAB)

17. Page 17 NSF STC Industry/University Cooperative Research Centers What else works? Director comments on effective practices To generate leads…To generate leads… –Organizing workshops and conferences –Respond to industry need for consulting Marketing materials…Marketing materials… –Website –Re-prints of publications –PowerPoint presentations, videos Changes to membership structure…Changes to membership structure… –Tiered structure, associate membership –Guaranteed research project to new sponsor

18. Page 18 NSF STC Industry/University Cooperative Research Centers Perceived Acceptance and Rejection

19. Page 19 NSF STC Industry/University Cooperative Research Centers Acceptance and Rejection Factors Factors that directors believe account for joining: Factors that directors believe account for NOT joining Selected as a Top 3 reason Relevance of research to organization needs 78.7% High probability of future knowledge and technology transfer benefits 61.7% Success of past Center/PI research accomplishments 40.4% Quantity and/or quality of graduate students to recruit 21.3% High financial leveraging provided by your center/site 21.3% Selected as a Top 3 reason Cost of membership fee 51.1% Lack of relevance of research to organization needs 38.3% Concerns about IP and licensing rights 38.3% Organization had short-term research priorities 34.0% Organization rep did not have access to real decision makers 29.8%

20. Page 20 NSF STC Industry/University Cooperative Research Centers Marketing Model Relationship development modelRelationship development model InitiationEstablishmentDevelopmentMaintenance Dormant Termination Rao, S. & Perry, C. (2002). Thinking about relationship marketing: Where are we now? The Journal of Business and Industrial Marketing, 17 (7), pp 598 –614.

21. Page 21 NSF STC Industry/University Cooperative Research Centers Summary General marketing model application Initiate & establish relationships Develop relationships Secure new members KeyFactors Relationship networkingRelationship networking Conference & tradeshow presentationsConference & tradeshow presentations Involving other site stakeholdersInvolving other site stakeholders Recruitment strategy Recruitment strategy Involving other site stakeholders (consultant)Involving other site stakeholders (consultant) Face timeFace time Visiting the organizationVisiting the organization Hosting visits to the centerHosting visits to the center Demonstrating technical relevanceDemonstrating technical relevance Future technology transferFuture technology transfer Justifying benefits relative to costsJustifying benefits relative to costs Neutralizing IP concernsNeutralizing IP concerns Facilitating within firm decision makingFacilitating within firm decision making TT Director Ind. experienceDirector Ind. experience Recruiting budgetRecruiting budget

22. Page 22 NSF STC Industry/University Cooperative Research Centers Conclusions A modified “relationship development marketing model” appears to do a good job of representing how directors market membershipsA modified “relationship development marketing model” appears to do a good job of representing how directors market memberships – Technical issues dominate when membership is really decided »Understand “consultative sales” »Our early peek into how decisions are made within a firm is very intriguing – Need to move focus from doing the right thing to doing things right

23. Page 23 NSF STC Industry/University Cooperative Research Centers Acknowledgements Support for this project provided by the NSF IUCRC and the NSF STC programsSupport for this project provided by the NSF IUCRC and the NSF STC programs