SEATTLE -- Credit unions prepping to launch community chartersought to be ready for sticker shock, a doubling of marketingbudgets, a breakout session at the Marketing Association of CreditUnions was told here.

The days of "simply changing the signs in the branches andissuing statement stuffers announcing a community charter" are longgone, said Jane Ronnfeldt, vice president of marketing at NumericaCredit Union, Spokane, adding "if you have $50 in the ad budget,you will now need $100."

A big reason for the added expense, she explained, is thesoaring costs of media ads and the sheer number of potential newmembers that need to be reached via a community charter, saidRonnfeldt who spoke on the "Seven Deadly Mistakes of CommunityCharter Marketing" at MAC's annual conference May 23-25 at theSheraton Seattle Hotel.

She was joined in the presentation by Randy Schultz, vicepresident of marketing at Weber Marketing Group, Seattle, with bothspeakers arguing that senior management has a hard time grasping atthe notion that marketing budgets need to move "beyond the 10%-20%range."

In her remarks, Ronnfeldt also urged marketers to resistdraining the marketing budget by funding the many sincere requestsof local groups asking for donations to benefit charitable orcommunity events.

"Try to get in on the big events where the credit union name canbe put up on banners and paraded before the public" since that iswhere the CU can get the most mileage for its marketing dollar, shesaid.

Ronnfeldt said she did not mean to be cynical about the needyrequests, but there is only so much a CU can do to help out thesmall cause so marketers need to learn "how to say no." Sometimesposting rules and sign-up sheets on the Web site for sponsorshipsdiscourages excessive requests.

"I don't like our credit union to be the 42nd sponsor of thelocal run," said Ronnfeldt noting that that kind of exposure iscostly and winds up burying the CU message. There are alwaysexceptions when a particular member contingent or SEG group isinvolved, but for the most part marketing departments need toexercise discipline in turning away requests.

As one way to bring valued CU exposure, one Wisconsin marketerin the audience suggested, "why not start sponsoring your own localrun or race and then put your name on it."

The Numerica executive also reminded the MAC audience that CUsplanning on making a community splash need to make sure theirbranches are designed with bright inviting colors and reflect theculture of the community.

She showed slides of one branch in a college town which hadhanging on the walls "iPods, toboggans and climbing poles" givingthe branch a youth oriented look attractive to that segment.

But in more established, residential branches, different iconsare needed to draw in new business, she said.

Ronnfeldt admitted that sometimes she is horrified to visit a"trashy, unkempt branch" with excessive clutter. "A clean,organized and tidy" setting sends a strong message to potentialmembers, she said.

Sometimes that means "I have to get the employees to remove thebeanie babies on the desks," considering those treasured stuffedanimals present a less than sophisticated image.

She also finds herself eliminating the "pamphlet rack with olditems" replacing it with more attractive furniture orbright-colored kiosks or desks.

Ronnfeldt said adoption of new names is a long-term process andthat she does not get upset when veteran members "still call usSpokane Railway Credit Union." Those members identify themselvesthat way and CUs should not be discouraged if the new name does nottake hold right away.

In the breakout, Ronnfeldt and Schultz both urged caution in"protecting the brand", but admitted they disagree on whethermembers "should wear the logo" on baseball caps and other wear.

"I don't want to see our baseball cap or T-shirt on some drunkguy falling out of a bar and being arrested by the police on TV,"said Ronnfeldt. Schultz maintained there are risks to "wearing thebrand as ambassadors", but having the extra exposure bolsters theCU image.

One audience member, Chris Gardner, division manager ofmarketing at Wright-Patt Credit Union in Fairborn, Ohio, said hisCU is trying to control the problem by sifting through the apparelrequests from members and "having their purchases made directlythrough us."

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