2. 1.1. COURSE OUTLINE
I. 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
3. 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”
4. Marketization of higher education
(Gingrich, 2015)
▸ dynamic position and role of higher education and HEIs (Castells, 2001):
1. ideological apparatus: creating and spreading ideology
2. selection of dominant elite: elite establishing and networking
3. generation of knowledge
4. 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
5. ▸ 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?
6. MARKETS ON WHICH HIGHER EDUCATION
INSTITUTIONS ARE INVOLVED ?
I RESOURCES MARKETS
1. Human resources
2. Material resources – financial and other II. SERVICE PROVISION MARKET
- HIGHER EDUCATION MARKET
7. ▸ 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
Increased
demand
Expansion and
diversification
of supply
MARKETING
10. • Focus on quality
development
• Marketing as
facilitator of
exchange
1970s – Production
concept
• Focus on sales
• Marketing =
marketing
communications
1980s and 1990s
Sales concept
• Focus on students
• Strategic marketing
approach
2000s onwards
Marketing concept
11. 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
17. 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
18. information about HE
market
employers
and other
subjects
competitors
students
services
teaching staff
other employees
management
dissemination
of this
information
throughout
institution
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
19. 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
20. • Education is a service – OECD, WTO- GATSS
characteristics (perishability, intangibility, inseparability, heterogeneity...)
•Education is a specific service:
1. a process, full benefit is postponed , diploma is just a certificate
(Nowothny, 1988; Gibbs, 1998; Maringe & Gibbs, 2009)
2. 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)
21. 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 (Maringе, 2005):
• teaching and research (Tjeldvoll, 1998)
• additional/ facilitating services (Nguyen & LeBlanc, 2001)
HIGHER EDUCATION INSTITUTIONS
AS SERVICE PROVIDERS
24. Group exercise 1: Identify elements of marketing mix
at the example of this University/ Faculty
25. 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
26. • 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)
1. They are much more then consumers:
1) Clients – advices
2) Consumers – satisfaction
3) Residents of campus
4) Subjects – responsabilities
(Litten, 1991; Mintzberg, 1996)
2. Less (consumer) rights
1) Intention and resources are not
enough for purchase -
Universities as gate keepers
(qualified available market)
2) Students are not entitled to some
rights and priviledges (e.g.
guarantee of outcome; claim)
Are students = consumers? NO!
27. 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-HEI’s identity, image and reputation
(Arnett et al., 2003, Oplatka & Hemsley-Brown, 2004)
- expectations – satisfaction link (Sander et al., 2000)
- active role (Baldwin & James, 2000)
28. 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)
29. How do these needs influence consumer choice and
behaviour in the higher education sector”
30.
31. Exercise: Analyzing examples of marketing research related to students’
needs, preferences and satisfaction.
Discussion
34. Brainstorm
•Who are other subjects we need to take into account?
• How they influence higher education institution’s functioning?
• What do we need to know about them?
35. Work in groups 2nd part: Marketing analysis
– 1st step in the process of developing the strategy for our faculty
36. Marketing strategy selection
– Optional marketing strategies pt. 1
Penetration strategy
• Increasing market share
• Increasing use/purchase
frequency
• New possibilities for use
Product 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)
37. 4.1. Optional marketing strategies pt. 2:
Segmentation, Differentiation, Positioning
1. Segmentation
▸ various criteria:
- Geographical
- Demographical
- Psychological
- Bihevioristic
▸ Example on higher education market:
1. Pupils who graduated from high school
2. “adult” students
3. Foreign/international students (Soutar & Turner, 2002)
▸ Profiling – determining segment potential, decreasing risk,
improving decision making (Rindfleish, 2003)
38. 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)
1. Established by state or private subjects
2. Academic and/or professional studies
3. “Traditional” or applied sciences
4. Research or teaching-oriented
5. New types: virtual universities, corporate
entities rooted in large private
organizations
(Mintzberg & Rose, 2003)
39. 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)
1. Service environment
(employees +resources)
2. Reputation
(brand recognition, achievements, high standards)
3. Possibilities for graduates *
(employment possibilities, salary, reputation on labour market)
4. Destination image
5. Possibilities for social integration
* before/during studies
45. Marketing communications
in Higher Education sector
• specifics: 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 types
- all means: print, electronic and other
• Integrated approach
46.
47.
48. Types of promotional appeals in HE sector
Clow & Baack. , 2010
▸ Verbal and non-verbal
▸Positive and negative
▸One or two-faceted
50. ▸ Classification of appeals according to creative message based on:
1. Economic motives 5. Entertainment (travel, humor…)
2. Satisfaction of existential needs 6. Humanistic content
3. Social status and prestige 7. Specific human characteristics
4. Moral, altruistic values (e.g.curiosity, adventuresness)
51. Work in groups 3rd task:
Re/positioning (Re/branding) our university/faculty
