Marketing of Educational Services

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Marketing of Educational

Services

By Priyanka Balwa By Priyanka Balwa MBA-III-B MBA-III-B 2009-10 2009-10

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Education



 EducationEducation in its broadest sense is any actin its broadest sense is any act

or experience that has a formative effect on

the

the mindmind,, character character , or , or physical abilityphysical ability of of

an individual.

an individual. 

 EducationEducation is the process by is the process by which societywhich society

deliberately transmits its accumulated

knowledge

knowledge,, skillsskills andand valuesvalues from onefrom one

generation to another through

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Need for Marketing

Educational services



 Need to “market” their services has notNeed to “market” their services has not really been felt by the educational

really been felt by the educational

sector



 This is because there is alwaysThis is because there is always Demand>Supply

Demand>Supply



 But in the recent years, there is a shiftBut in the recent years, there is a shift in trends

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

 Large number of institutions for Large number of institutions for

specialized fields have been set up in

the recent years for fields like

Management and computer education



 This has lead to increase inThis has lead to increase in competition

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

 This makes them come face to faceThis makes them come face to face with questions like

with questions like



 Product differentiation,Product differentiation,Product differentiation,Product differentiation, 

 product extension,product extension,product extension,product extension, 

 diversificationdiversificationdiversificationdiversification 

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Education as a service



 Services are those separatelyServices are those separately identifiable,

identifiable, essentially intangibleessentially intangibleessentially intangibleessentially intangible activities, which provide want

activities, which provide want

satisfaction and are

satisfaction and are not necessarily not necessarily

tied to the sale of product another

service

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

 Education as a service can be said toEducation as a service can be said to be providing an

be providing an intangible benefit intangible benefit

(

(Increment in knowledge,Increment in knowledge,

aptitude, professional expertise,

skill

skill) produced with the help of a set) produced with the help of a set

of tangible (

infrastructure

), and), and

intangible

(

(faculty expertise

faculty expertise

and learning

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:::Points to be noted:::



 A consumer may have tangibleA consumer may have tangible

physical evidence

toto

show for the service exchange

transaction



 But the actual benefit accrued is purelyBut the actual benefit accrued is purely intangible in nature

intangible in nature



 Education is a service which is gearedEducation is a service which is geared primarily to the

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Characteristics:-:::INTANGIBILITY:::

:::INTANGIBILITY:::



 Education is an Intangible dominant serviceEducation is an Intangible dominant service

—Impossible to touch, see or feel

:::Standardization is difficult:::



 Lack of Standardization opens upLack of Standardization opens up

marketing opportunity of

differentiated need based course

packages



 Education as a serviceEducation as a service cannot becannot be

patented patented

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:::Perishability:::



 Production and consumption areProduction and consumption are simultaneous activities

simultaneous activities



No inventories

_{can be made up}_{can be made up}

Eg:- A lecture scheduled cannot be

stored

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:::Inseparability:::



 It is impossible to separate a service fromIt is impossible to separate a service from

the provider

the provider 

 There is a need for the service provider toThere is a need for the service provider to

be present when the service is to be

performed and consumed

performed and consumed 

 This This limits limits the the scale scale of of operations—Theoperations—The

number of providers available would define

the

the number number of of simultaneous simultaneous performancesperformances

possible

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:::Other

Characteristics:::



 High Fixed cost, Low Variable CostHigh Fixed cost, Low Variable Cost 

 Specialized and need basedSpecialized and need based 

 CompetitionCompetition 

 Customer limitationsCustomer limitations 

 Lack of ownershipLack of ownership 

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Marketing Strategies

::::Before Deciding on the Marketing Mix,

Educational Institutes should answer

certain basic Questions::::



 What Business are we in?What Business are we in? 

 Who are our customers and WhatWho are our customers and What benefits they seek?

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

 Criteria that students apply:-Criteria that students

apply:-

 Reputation of the instituteReputation of the institute 

 Number of applicants keen to enroll in theNumber of applicants keen to enroll in the

course



 Past success rate of placementPast success rate of placement 

 Faculty expertiseFaculty expertise 

 Width of specialization offeredWidth of specialization offered 

 Infrastructural facilitiesInfrastructural facilities 

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

 How can we build or defend our How can we build or defend our competitive position?

competitive position?



 What is our entry strategy?What is our entry strategy? 

 How should we offer new serviceHow should we offer new service offers that help/strengthen the

offers that help/strengthen the

competitive position?

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:::Marketing Mix:::

HIGHER HIGHER EDUCATION EDUCATION VOCATIONAL VOCATIONAL EDUCATION EDUCATION SECONDARY SECONDARY EDUCATION EDUCATION ELEMENTARY ELEMENTARY EDUCATION EDUCATION ADULT ADULT EDUCATION EDUCATION MARKETING MARKETING MIX MIX

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:::Marketing Mix:::

Marketing Marketing MIX MIX P

Prroodduucctt PPrriiccee _Place_Place PhysicalPhysical ProcessProcess

Evidence

Promotion

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Product



 Range- Range-

 Quality Level-Quality Level-

 Brand Name-Brand Name-

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Service-Price

Price



 LevelLevel 

 Discounts (Scholarships)Discounts (Scholarships) 

 AllowancesAllowances 

 CommissionsCommissions 

 Payment TermsPayment Terms 

 Consumers percived valueConsumers percived value 

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Place

  LocationLocation   AccessibilityAccessibility 

 Distribution ChannelsDistribution Channels 

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Promotion



 AdvertisingAdvertising 

 Personal sellingPersonal selling 

 Sales promotionSales promotion 

 PublicityPublicity 

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People

  PersonnelPersonnel   TrainingTraining   CommitmentCommitment   IncentivesIncentives   AttitudesAttitudes 

 Degree of involvementDegree of involvement 

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Physical evidence

  EnvironmentEnvironment   FurnishingsFurnishings   LayoutLayout 

 Noise levelsNoise levels 

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Process

  PolicesPolices   ProceduresProcedures   MechanismMechanism 

 Employee discretionEmployee discretion 

 Customer involvementCustomer involvement 

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:::Current Trends:::



 The RDAS Approach—The RDAS Approach— 

 The Relating, Discovering, Advocating,The Relating, Discovering, Advocating, and Supporting (RDAS)

and Supporting (RDAS)



 Notion of concept selling is applied to the marketingNotion of concept selling is applied to the marketing

of products and services



 The four RDAS categories are further dividedThe four RDAS categories are further divided

into 12 sequential and interdependent tasks:

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

 Client IdentificationClient Identification 

 Fact FindingFact Finding 

 Planning;Planning; 

 Establishing CredibilityEstablishing Credibility



 Targeted Research;Targeted Research;



 Focused Planning;Focused Planning;



 Problem Analysis and Agreement;Problem Analysis and Agreement;



 Planning the Presentation;Planning the Presentation;



 Presenting;Presenting;



 Facilitating the Decision;Facilitating the Decision;



 Achieving Closure;Achieving Closure;



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

 RationaleRationaleRationale, practical suggestions,Rationale, practical suggestions,, practical suggestions,, practical suggestions, and examples related to marketing and examples related to marketing and exam

and examples related to marketingples related to marketing

task accomplishment task accomplishment task accom

task accomplishmentplishment are presentedare presented

within the discussion under each major

heading.

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

 This RDAS schema provides aThis RDAS schema provides a

template against which practitioners

may assess their current activities, and

may serve as a basis for establishing a

new genre of management and cost

accounting systems that can be

applied to marketing educational

products and services.

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Marketing of Educational Services