HIGHER EDUCATION MARKETINGAna Popovi, PhDFaculty of EconomicsUniversity of Ni, Serbia

1.1. COURSE OUTLINEI. Introducing marketing in higher education sector

Marketization of Higher Education and Higher Education Markets

Main elements of HE market:

- Education as a service

HEIs as service providers & their marketing mix

Students as consumers & consumer behaviour research in HE

Competition: HEIs rankings & performance

II. Marketing management in higher education institution

Marketing management process focus on:

- Marketing analysis

- Optional marketing strategies

University branding

Marketing communications of HEIs

INTRODUCTION marketing revolution increasing importance of marketing(Keith, 1960) (Cohen & Harris, 2003)

extending marketing to other markets - objects of exchange (Kotler & Keller, 2006): products, services, information, know-how, places/destinations, people, etc.

extending scope of marketing (Hunt, 1976): non for profit organizations have marketing-like problems and employ marketing-like activities, practices and procedures to solve them

Higher education marketing (Kotler, 1979):

marketing principles and activities that HEIs adopt and implement primairly to achive competitive advantage and increase share on inter/national market

Marketization of higher education (Gingrich, 2015)

dynamic position and role of higher education and HEIs (Castells, 2001):

ideological apparatus: creating and spreading ideology

selection of dominant elite: elite establishing and networking

generation of knowledge

professional training: education (administration, professionals)

Important social changes (XIX to XX c.) - increasing number of the interested:

Democratization - full participation and access to all social resources

Development of job positions that require professional skills and higher education

Implications:increasing number of traditional universities establishment of new types of institutions and new study programmes pronounced heterogenity (student body, programmes, methods, techniques) (Mainardes et al., 2010; Tam, 2007; Smith et al., 1995; Maringe & Foskett, 2005; Maringe & Gibbs, 2009)

higher education market (Hemsley-Brown and Oplatka, 2006): from state-controlled to market-led sector (Jongbloed, 2003) state control + university autonomy + higher education privatization (Young, 2002)Why does state want to interfer in this sector?

How does it do that?

MARKETS ON WHICH HIGHER EDUCATION INSTITUTIONS ARE INVOLVED ?

I RESOURCES MARKETSHuman resourcesMaterial resources financial and other

II. SERVICE PROVISION MARKET - HIGHER EDUCATION MARKET

criticism: business life values oppose to academic values (principles as well as terminology e.g. competition) identity crisis: creation of knowledge used for economic and technological development

DISCUSSION: MARKETING ACTIVITIES EMPLOYED BY HIGHER EDUCATION INSTITUTIONS?Which activities did you notice?

1.2. Discussion:Why is marketing necessary in this sector?Aim: To improve performances New environment :Increased competition, globalization, technological development, changed economical and social role of education

Higher education institutions rankings

Higher education institutions performance Problems in defining performance (indicators):(Lucier, 1992; Wright, 1996; Sawhill & Williamson, 1997; Anthony & Govindarajan 2007)

1. Different approaches: academic or business perspective

2. Lack of unique performance indicator (ratability, ROI, overall performance)

3. Financial performance (indicators) are not crucial (profitability, sales)Solution non-financial performance (indicators):

- Overall performance/successfulness

Competitiveness / attractiveness number of students (enrolled/applied)

Image and reputation

Satisfaction of students/employees

Innovativeness

Performance measurement drivers: increasing efficiency, effectiveness, and quality, improving planning, greater responsibility

Recognizing needs of clients and capabilities of competitorsAttracting and retaining clients

Profitability and other financial performances

Image, reputation and other nonfinancial performances

Overall success

Sustainable competitive advantage

Specifics of marketing in higher education as a field of non-profit sector Higher education market (specific aims of HEIs)

Services related to education as object of exchange

Subjects involved in exchange:

- Higher education institutions as service providers - Students as service consumers

Strategic decision-making (about strategies/policies, teaching process, study programmes, additional services, informing)Shapiro, 1988; Narver & Slater, 1990; Kohli & Jaworski, 1990; Rukert, 1992; MARKETING CONCEPT IN HIGHER EDUCATION INSTITUTION

2.1. EDUCATION AS A SERVICE Education as a service

Higher education institutions as service providers

Exercise (brainstorm): explore various types of services offered by higher education institutions

Marketing mix in Higher Education Institutions

Exercise(group work): Identify elements of marketing mix at the example of this University/ Faculty

Education is a service OECD, WTO- GATSScharacteristics (perishability, intangibility, inseparability, heterogeneity...)

Education is a specific service:

a process, full benefit is postponed , diploma is just a certificate(Nowothny, 1988; Gibbs, 1998; Maringe & Gibbs, 2009)

a product of interaction among subjects and other resources (Cowell, 1984; Naude & Ivy, 1999; Maringe & Gibbs, 2009): *importance of belief and confidence (Bearden, Hardesty & Rose, 2001)

Do you know any other services with postponed effects or products of interaction?

Students as products (Kotler & Fox, 1985; Conway et al, 1994)

Exercise (brainstormm): exploring various types of services offered by higher education institutions

Object of exchange: set of services (Hemsley-Brown & Oplatka, 2006) delivery of knowledge, skills and expertises embedded in curricula (Maring, 2005):

teaching and research (Tjeldvoll, 1998)

additional/ facilitating services (Nguyen & LeBlanc, 2001)HIGHER EDUCATION INSTITUTIONS AS SERVICE PROVIDERS

Higher education institutions as a service providers

Marketing mix of Higher Education Institutions

Group exercise 1: Identify elements of marketing mix at the example of this University/ Faculty

2.2. Students as consumers/clients

Students as consumers/clients

Consumer behaviour research in the case of students assessing their needs, preferences and satisfaction

Examples analysis, discussion

If customers pay, who are the customers on HE market? (Lindsay & Rodgers, 1988)

Who are the consumers? (Cowell, 1984; Gummeson, 1991: Barett, 1996; Naude & Ivy, 1999)

They are much more then consumers:

1) Clients advices2) Consumers satisfaction3) Residents of campus4) Subjects responsabilities

(Litten, 1991; Mintzberg, 1996)

2. Less (consumer) rights

Intention and resources are not enough for purchase - Universities as gate keepers (qualified available market)

Students are not entitled to some rights and priviledges (e.g. guarantee of outcome; claim)

Are students = consumers? NO!

Consumer behaviour research in the case of students

1970s: rational and well-informed students seeking for quality (Baldwin & James, 2000)

1990s decision making (for designing means of communication)(Mortimer, 1997; Gatfield et al., 1999; Hesketh & Knight, 1999)

2000s strategic approach:theory of identities: students-HEIs identity, image and reputation (Arnett et al., 2003, Oplatka & Hemsley-Brown, 2004)

expectations satisfaction link (Sander et al., 2000) active role (Baldwin & James, 2000)

Assessing needs, preferences and satisfaction of students Specifics: unique transaction, but long-term relationship; active role interaction, image-creation

Factors: Geographical Demographical Economical Social (family, peers, opinion leaders) Psychological (needs, motives, perception, learning, opinions)

ACTIVE/EXTENSIVE DECISION MAKING (high risk, engagement, strong bond with self concept , extensive brand evaluation)

How do these needs influence consumer choice and behaviour in the higher education sector

Exercise: Analyzing examples of marketing research related to students needs, preferences and satisfaction.

Discussion

3.1. Developing marketing strategy for Higher education institution Marketing analysis internal and external Strategy selectionStrategy implementation Strategy evaluation

Marketing analysis in Higher Education SectorInternal environment:- Resources - Capabilities 2. External environment

circumstances: PESTLE

subjects: Students Competitors Who else?

Brainstorm

Who are other subjects we need to take into account?

How they influence higher education institutions functioning?

What do we need to know about them?

Work in groups 2nd part: Marketing analysis 1st step in the process of developing the strategy for our faculty

Marketing strategy selection Optional marketing strategies pt. 1Penetration strategy

Increasing market share Increasing use/purchase frequency New possibilities for useProduct development

product improvements brand/category extension new product-same market Market development

geographical expansion expansion to new market segments Diversification strategy

related products/markets (horizontal, vertical)

non-related products/markets -Heterogeneous (conglomerate)

4.1. Optional marketing strategies pt. 2: Segmentation, Differentiation, PositioningSegmentation various criteria: GeographicalDemographicalPsychological Bihevioristic

Example on higher education market:Pupils who graduated from high schooladult studentsForeign/international students (Soutar & Turner, 2002)

Profiling determining segment potential, decreasing risk, improving decision making (Rindfleish, 2003)

2. Differentiation strategy in higher education sector various criteria: Physical aspects (Price et al., 2003) Quality, Functionality Durability Design

Intangible aspects

Problem: regulation uniformity (Temple & Shattock, 2007; Kantanen, 2007; Chapleo, 2004)

Established by state or private subjects

Academic and/or professional studies

Traditional or applied sciences

Research or teaching-oriented

New types: virtual universities, corporate entities rooted in large private organizations

(Mintzberg & Rose, 2003)

3. Positioning in higher education sector various criteria: problem-solver, value, special occasion/ segment or niche

intangible aspects: image, reputation, additional value, communications

(Price et al., 2003; Mazzarol & Hosie, 1996; Baldwin & James, 2000; Hemsley-Brown & Oplatka, 2005)

5 main dimensions (Medina & Duffy, 1998)

Service environment (employees +resources)Reputation (brand recognition, achievements, high standards)Possibilities for graduates * (employment possibilities, salary, reputation on labour market)

Destination image

Possibilities for social integration

* before/during studies

Service environment

Reputation

Possibilities

Destination imageSocial integration

Higher Education Institution Branding image reputation brand(Kantanen, 2007; Nguyen & Le Blanc, 2001) spontaneously formed vs. constructed (Chalpeo, 2004)

- learning environment and employees as main influences

Minimal sales concept

Brand elements

Memorability Meaningfulness Likability Transferability AdaptabilityProtectability

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Marketing communications in Higher Education sectorspecifics: students as well-informed and rational clients, only once, marketing communications are highly valued (relevant and credible)

all types and means of marketing communications :

both direct and indirect typesall means: print, electronic and other

Integrated approach

Types of promotional appeals in HE sectorClow & Baack. , 2010 Verbal and non-verbal

Positive and negative

One or two-faceted

Rational appeals

Emotional (positive and negative) appeals

Classification of appeals according to creative message based on:

Economic motives 5. Entertainment (travel, humor)Satisfaction of existential needs 6. Humanistic content Social status and prestige 7. Specific human characteristicsMoral, altruistic values (e.g.curiosity, adventuresness)

Work in groups 3rd task: Re/positioning (Re/branding) our university/faculty

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Presentations: Re/positioning (Re/branding) our University/Faculty

Write to: ana.popovic@eknfak.ni.ac.rsThank you for your attention!