Developing a Marketing Plan For Your Child Care

How you market your child care center may make the difference between its success or failure. Like any other business, a child care center provides a service that consumers want and are willing to purchase. Therefore, you will have to sell your service to the consumers (parents). Your marketing plan can help you achieve this goal.

Know Your Customers

Knowing your customer is the key to successfully marketing your child care center. The more you know about the parents' expectations, the easier it will be to develop a program that meets their needs, as well as the children's. The data collected in assessing your community's needs will help you do this. Also, develop a list of questions to help you identify what the parents will likely need, want and expect of your child care center. Use the data collected in your initial assessment and the survey to help answer those questions.

The questions may include:

1. What type of service will be provided?
2. What are the operating hours?
3. Do the operating hours match the parents' work schedule?
4. Is extended evening care available?
5. Where is the child care center located?
6. Is the location convenient and easily accessible?
7. How many staff members have degrees or training in early childhood education or a related field?
8. What is the teacher-to-child ratio (e.g., one adult to seven children)?
9. Will there be a curriculum? Will it be structured?
10. Have you or will you devise an activities schedule?
11. How will the child care center be operated? Hours? Staffing? Activities? Fees?
12. Have medical/first aid policies been developed?
13. What will the sleeping arrangements be?

Once you have answered these questions, you will have a base from which to develop your marketing plan.

The Marketing Program

Many first-time business owners think that simply placing an advertisement in the local newspaper or a commercial on a local radio or television station will make customers flock to purchase their product or service. This is true to a certain extent, but hundreds, even thousands, of other possible customers may never learn of your business. Just think of the money you'll lose, simply because you didn't develop an adequate marketing program.

There are certain factors you should consider when developing your marketing strategy. These are called the five Ps of marketing:

1. Product / Service - The description of the product or service.
2. Price - An amount competitive within the market area.
3. Place - The description of the location, including its advantages, such as adequate parking, good street lighting, easy access.
4. Promotion - The method of advertising or highlighting the business.
5. Persuasion - The ability to sell your services and the business to the surrounding community.

Each factor requires an investment in dollars, time and effort, but the reward will be worth it. Devise a plan that uses advertising and networking (word-of-mouth advertising) to promote your child care center. Develop short, descriptive copy that clearly identifies the services provided by your child care center, the price of those services and the child care center's location. Use catchy phrases to arouse the interest of your readers, listeners or viewers. Remember, the more care and attention you devote to your marketing program, the more successful your child care center will be.

Marketing Your Child Care Center

No matter what advertising media you use, you will have to spend money, so allow for advertising expenses in your budget. There are many ways to advertise your child care center, but keep in mind that advertising costs vary with the medium used. Newspaper advertisements and radio and television commercials are the most expensive means of advertising. If you can afford to use one of these media, talk to an advertising agency before making a final decision. Once you've decided on the medium, get the agency to help you design your advertisement or create a commercial.

Whatever advertising media you use, be sure to include the following information:

1. Name, address and telephone number of the child care center
2. Ages of children who will be accepted
3. Hours the child care center will be open
4. Fees charged
5. A description of the program and the qualifications of the staff
6. Whom to contact for more information
7. Date you plan to open

Start advertising your child care center at least three months before you open for business. Make sure your advertisements are consistent with the image you are trying to project.

To ensure the success of an advertising program, try to meet your competition head on. Look at your competitors. In what sections do they advertise? What size advertisements do they use?

Inexpensive Advertising Techniques

If you do not have the money to advertise by radio, television or newspaper, don't be discouraged. There are other inexpensive yet effective alternatives. A brief description of each follows.

• Fliers and brochures - One inexpensive way to advertise is to post fliers in public buildings, such as shopping centers, markets, laundromats, restaurants and community centers. Get permission from the owner(s) or governing body (e.g., managers, board of directors) of these facilities before posting your fliers - some public buildings prohibit solicitation. Distributing brochures is another good way to advertise. Take brochures or fliers to employment offices, libraries, schools, personnel offices of businesses and industries, government agencies, hospitals, union headquarters or shops, women's groups, colleges and universities, church groups and the parent-teacher associations (PTAs). To develop effective brochures and fliers, study written advertisements in the newspapers and magazines; ask yourself which advertisements appeal to you and why and try to develop similar ones. If you know people in advertising or public relations, ask them to help you design your brochures and fliers, to avoid the cost of professional help.
• Business cards - Business cards are an excellent, inexpensive way to advertise. Have business cards printed in lots of 1,000. Include your name, address and telephone number, the hours of your child care center and the ages of the children you'll care for. Ask parents, friends and relatives to pass them out to interested people at work. Take them along to pass out when you take the children on a field trip or a walk in the neighborhood. Anyone who works with families may be able to make referrals to you -- ministers or rabbis, school staff, pediatricians, parent groups and business or civic organizations. Provide them with business cards, fliers or brochures on your child care center so they can knowledgeably talk to prospective clients.
• Referral agencies - The number of child care referral agencies is growing. If you are licensed or registered, you may be eligible to be listed for referrals by the licensing office and other referral agencies in your community. Check the National Directory of Child Care Information and Referral Agencies for the agency nearest you. (For this information, write to the California Child Care Resource and Referral Network, 809 Lincoln Way, San Francisco, CA 94122.)
• Networking - Perhaps one of the best ways to market your child care center is through networking. Since most parents choose their child's caregiver from word-of-mouth recommendations, talk about yourself and your program to people who might have the opportunity to recommend you. Volunteer to speak to local civic and church groups and to the PTA. Networking adds a credibility to your service that advertising can't. This is primarily because advertisements are designed to convince people to purchase a certain product or service at any cost while word-of-mouth referrals are based on an individual's satisfaction with a product or service. Since most people value their family's and friends' judgment more than an advertisement, they will more likely choose your child care center if it is so recommended. Remember, word-of-mouth advertising depends on the quality of your program. If parents are pleased with the way their children are thriving at your child care center, they will tell their friends. Good providers in clean, safe and appealing child care centers are in high demand almost everywhere.
• Yellow Pages - Directory advertising is completely different from other forms of advertising. It is for people who are ready to buy. Other media deliver readers, viewers or listeners; directories deliver buyers. Include as much information as possible in your directory advertisement as people frequently make decisions based on the information in directories. As with any print media, be sure your entire market is covered by the intended directory with minimal waste.
• Classified ads - Place an advertisement in the classified section of your local newspaper. Announce your opening in the business section as well as other feature sections. Many people read the business and classified sections of the newspaper during their commute to and from work. Placing an advertisement in these sections increases your clientele base.
• MommyDaycare.com - MommyDaycare.com is the largest online directory of child daycare centers throughout the U.S. Listing you child care center in this directory will allow potential clients to find you easily on the internet. Since the internet is the most widely used method of finding information, listing your child care in this online directory is not only the least expensive but can be the best method in having people find you. Learn more

Know the Competition

A cardinal rule of effective marketing is to know your competitors. Assess their operations and find a way to beat them. Many entrepreneurs mistakenly believe that their competitors consist solely of firms that offer similar services or products in the same geographic area. However, they may also include any business vying for the same clients.

Your estimate of competitors should include all those who offer related services. They may be in the same geographic area or another area that is accessible to your clients. To determine the competitiveness of your market, find out:

1. What businesses offer child care service?
2. Who your major competitors are, both direct and indirect (e.g., child care centers accessible to your clientele)?
3. How long your competitors have been in business?
4. How your child care center will benefit the clients more than your competitors' child care centers?
5. Is there is a need for additional centers in your area or in an area that is easily accessible?
6. How competitors' centers are similar to or different from yours?
7. What your competitors' strengths and weaknesses are?
8. How competitors' businesses are faring?
9. How competitors will act when you enter the market?
10. What competitors' managerial abilities, financial situations, facilities, reputations, etc. are?

Financial institutions and investors often place heavy emphasis on potential competition when deciding to fund a new business. Whether or not you apply for a loan to finance your child care center, it is good to know as much as possible about your competitors.

Sources of Market Information

There are several sources of market information. They include:

• Market research consultants and advertising firms
• Colleges and universities
• Your own research
• Other sources, such as the Yellow Pages or industrial directories
• Market Research Consultants and Advertising Firms

Market research consultants are professionals who complete market survey reports. They can also help you develop a marketing plan. Most advertising firms also have a market research department that can help you develop survey questionnaires and analyze and interpret the data. The drawback to using a professional consulting and advertising firm is the cost.

Try to find a consultant or advertiser who will analyze and interpret the data and help you develop a marketing plan for a nominal fee.

Colleges and Universities

Business schools in local colleges and universities often have professional and student groups that offer consulting services. They can help you with a market survey and a marketing plan, as well as with problem areas. Student services, however, may be available only during the academic year. It is important that you approach these services with well-defined needs and be prepared to actively participate as the project progresses. Contact local colleges or universities for additional information.

Many colleges and universities are involved with an SBA-affiliated program called the Small Business Institute (SBI). SBIs provide many services, including market analysis. If you need help analyzing the market and interpreting survey data, contact the local SBA office for information on the nearest SBI program.

Your Own Research

You may choose to conduct your own market analysis. Most market research is time consuming, and the techniques can sometimes be quite sophisticated. Even if you do not have the time or the skills needed, you can still conduct simple research that can yield a tremendous amount of information. This technique is called focused group interviews.

First, from your personal knowledge, put down some facts about your market. Then assemble a small group of acquaintances, friends or relatives who represent a good cross section of the client group you are hoping to serve. Describe your child care center and the service you plan to provide. Ask for feedback. Use this information to determine if your idea is feasible and if your child care center will be accepted. A marketing or advertising specialist can help you set up these groups.

Other Sources

Your local library is usually a gold mine of information. Many publications, such as government reports, contain valuable up-to-date information. If you have any questions, the reference librarian is trained to find the information. Do not hesitate to ask for help.