E X E C U T IVE SUMMARY

Transcription

1 The Business of Branding 2012 An international report on branding, marketing and business school perceptions, drawing on the views of current students, alumni, faculty and administrative staff. July 2012 :: Andrew Crisp, Sarah Hardcastle, Lesley Brown E X E C U T IVE SUMMARY

2 carringtoncrisp CarringtonCrisp August 2012 All rights reserved. Reproduction in whole or part prohibited without prior permission of the authors. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means without prior permission of CarringtonCrisp.

3 the business of branding Why does brand matter? Business schools have operated in an increasingly competitive international market for much of the last decade. So how does a student choose what and where to study? The Business of Branding study, first run in 2004, provides an overview of international trends as well as offering individual business schools insights in to how they are perceived, their strengths and weaknesses, what students are buying and where to get best value from their marketing spend. The Executive Summary provides an overview of some of this year s major trends as well as contrasting those findings with data from previous years. Since 2004 more than 100 business schools have taken part in the study from 25 countries with over 70,000 respondents completing the research. Figure 1. Factors influencing the reputation of a business school Quality throughaccreditation byequis, AACSBor AMBA International students, staff, links and course content Highquality teaching staff Strong academic performance Provision of placements for students Use of technology for teaching and learning Good value for money Flexible study patterns allowing students tocontinueworking while studying Mychosen course/subject links with business and industry Enhancing career prospects As one of the best business schools in the country The excellence of itsresearch Its performance in rankings Its history 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% PhD/DBA Other Business Masters MBA part time/executive MBA full time First degree (BA/BSc) 3

4 carringtoncrisp This year s study was conducted by CarringtonCrisp in partnership with the Association of Business Schools (ABS) and EFMD during March/April Respondents to the survey were drawn from 90 nationalities. Eight nations had more than 1% of the total response Australia, China, Germany, India, Malaysia, New Zealand, UK and Vietnam. Across the sample respondents were split almost 58:42 female to male. The largest responses were drawn from first degree students and alumni other business Masters. Skills or earnings? Career continues to dominate motivation for studying business and the reputation of business schools, but career can mean many things. While acquiring new skills had been on the increase, this year s data suggests that earning potential has now replaced skills as the second most important motivation. Whether this change reflects a perceived improvement in job prospects or a need to replay higher fees is unclear. Data from the CarringtonCrisp study Tomorrow s MBA suggest that many students and employers are increasingly focusing on soft skills leadership, managing and motivating a team and interpersonal skills as much as they are looking for harder, technical skills. Figure 2. Items having the greatest impact on choice of where to study Employer Proximity to where I live/work University/business school website University/business school prospectus/course literature Staffat the business school/university Parents Recommendations from peers Blogs B Open Open days days Internet Social networkingsites Education/career advisers International agents working for business schools/universities Fairs/exhibitions for prospective students Newspapers/magazines 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% PhD/DBA Other Business Masters MBA part time/executive MBA full time First degree (BA/BSc) 4

5 the business of branding 9.00 Figure 3. Describing a school to a potential student with data broken down by participating school School 1 School 2 School 3 School 4 School 5 School 6 School 7 School 8 Total sample Different reputations For many business schools, core product offers often appear similar to the prospective student. Of course, there are points of differentiation in cost, location, outcomes, rankings and other factors. However, weaving these items in to a convincing narrative and building a brand can be difficult. In this year s study respondents were asked to describe their school based on 13 pairs of words. When presented graphically the data has the look of a bird s nest. Respondents appear to believe there is little that differentiates one business school from another. However, look more closely and it is clear that School 1 is more likely than all the other schools to be considered linked to business and professional. School 6 is considered flexible and accessible. School 5 is believed to be most bureaucratic among those sampled and School 8 is seen as impersonal, unresponsive and not interested. The key drivers of reputation, and thus potential points of differentiation are often career success, flexibility that allows students to work and study at the same time or learn in different ways, rankings, accreditation, high quality teaching staff and good value for money. 5

6 carringtoncrisp Flexibility, not surprisingly, is particularly important to part-time MBA students. In another CarringtonCrisp study, Tomorrow s MBA, flexibility is taking on a growing variety of guises from block weeks to evenings to weekends, often supplemented with distance learning. Flexibility may also become more important for undergraduate students as they seek to find ways to cover increasing fees and costs of study. For full-time MBA students, accreditation, high quality teaching staff and good value for money are key to reputation. Other Business Masters highlight rankings. For those schools that are not covered by the Financial Times, BusinessWeek or The Economist this can appear to be an insurmountable problem. However, other research by CarringtonCrisp suggests that business schools in universities can draw on the rankings of their parent in assessments such as The Times Higher Education World University or the Shanghai Jiao Tong rankings. Value is not just about money Value for money involves comparisons between fees and other costs of studying at different schools, but also is evaluated on the basis of anticipated career outcomes. Education spend will potentially increase if students believe a particular degree or business school will help them get a better job as a result of links with business and industry or enhanced career services. Of course, overall reputation of the school is important for all audience groups when determining value for money, almost feeding a virtuous circle with value for money driving reputation. Don t forget people in the marketing mix Inevitably, the internet dominates marketing and information sources used by students when considering what and where to study. Social media is growing in importance and extending its role in to classroom and study collaboration. However, people still play a very important role in decision making. While the internet is described by two-thirds of students as their most important source of information, it is rare that a final choice is made without human contact. The data makes this particularly clear among first degree students, where the role of open days for domestic students and educational advisers for international students is particularly influential in their choice of what and where to study. Newspapers have declined in importance in recent years, although they still have influence, often through their online versions. For undergraduates, parents are key influencers and are likely to still be consumers of newspapers unlike their sons and daughters. Among full-time MBAs, The Financial Times has a significant following. 6

7 the business of branding Many of the same elements that influence undergraduates are also important for postgraduates, especially peer recommendation, course literature and the internet. However, the business school website features more prominently than it does with undergraduates; possibly reflecting a large international cohort without the opportunity to visit a campus. With the growing availability of interactive tools, including the provision of virtual open days, international students, short of physical contact with a school, can access much the same experience as their domestic counterparts. Google and the university/business school website stand out as most important for all groups among e-media. Full-time MBAs also focus on ft.com, mba.com (the GMAT site) and mbaworld.com (the AMBA site). Social media is not the dominant force that might be expected from general news coverage. However, in the last 12 months there has been a large growth in the number of students indicating that they use social media in connection with their studies. It may be that those young people who began a social media journey on MySpace or Bebo and then moved on to Facebook and perhaps to LinkedIn, see it as entirely normal to collaborate through social media across many aspects of their lives, including study. Figure 4. Experience of using career services at a business school PhD/DBA Other Business Masters MBA part time/executive MBA full time First degree (BA/BSc) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Not at all useful A little useful Some use Useful Very useful 7

8 carringtoncrisp There has also been a large growth in the number of LinkedIn users and a continued growth in specialist social media sites, often based on nationality or language. Around the world sites such as RenRen, Hyves, Tuenti and Orkut all have a role in influencing decisions of prospective students. While total sample usage of national social media sites may be small overall, among national groups it is often much greater. Just under 10% of the total sample use RenRen, but 55% of Chinese students use the service. Growing sustainability Sustainability still doesn t have a dominant role in decision making when students decide what and where to study, but it is growing in importance, especially among specialist business Masters. Many students would also like further opportunities to have sustainability included in their degree programs. In 2011 the data suggested that while students felt it was important to study sustainability, few took any account of sustainability issues when deciding where to study. In 2012 only among part-time/executive MBAs did more than 60% say they didn t consider sustainability when choosing my degree Figure 5. Priorities for improvement with future spending at a business school Moreinnovation in courseprovision Gaining external accreditation by EQUIS, AACSB or AMBA Ensuring the school is more highly ranked A more flexible approach to the academic timetable Reduce fees andother charges tostudents Delivering a more international experience Moreplacement provision Smaller class sizes Better facilities on campus for students Greater provision and use of technology in learning Improvements inthe quality of lecturing Enhanced career service provision Stronger links with businessand industry Better quality accommodation for students 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% PhD/DBA Other Business Masters MBA part time/executive MBA full time First degree (BA/BSc) 8

9 the business of branding Figure 6. Reasons for recommending a business school Triple accreditation by EQUIS, AACSB andamba It lives uptoits historic reputation for excellence High position in rankings The school is helping me become a high employable graduate It provides the flexibility I needed to study and work It is delivering good value for money I was able/expect tosecurea great placement experience High quality research output There is a strong international dimension to my studies Good use is made of technology in and out of the classroom On site facilities are outstanding Teaching staff challenge me to think differently The location of the campus is excellent Academic standards are high The school has good links with business and industry The course content is very applicable to modern business The quality of my fellow students is high I have a good social life 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% Professional/admin staff Faculty PhD/DBA Other Business Masters MBA part time/executive MBA full time First degree (BA/BSc) Across the sample, 22% to 30% of the respondent groups said there were not as many opportunities to learn about sustainability as they would have liked and around 10% said that sustainability was not included in their degree. Step up career services Careers play a central role in business education. For a large majority of students, career advancement is the main motivation for studying business. Careers are one of the four key topics sought when visiting a business school website. Better career outcomes are one of the reasons why students will pay more than they had budgeted for when deciding where to study. Links with business and industry are often cited as a key driver of reputation. Investment in career services is likely to yield more satisfied students and deliver improvements in reputation. Despite the importance, of career services while 60% of first degree students say their experience of using them has been useful or very useful, this declines to around 43% among full-time MBAs and other business Masters. 9

10 carringtoncrisp International enough Students don t expect schools to be more international than they already are. Improvements in the quality of lecturing, more placement provision and higher rankings are priorities for improvement. Greater internationalization, better student accommodation and technology for learning received least support when respondents were asked to prioritise future spending by business schools. Internationalism is almost taken for granted among students and while some schools clearly offer a more international experience than others, it may be that most schools now reach a level that matches student expectations. Better accommodation may be less important than it might have been a number of years ago, especially in the UK where a growing number of students are living at home when studying to reduce the cost of completing a degree. Technology may also not be a factor as many students provide their own technology and don t expect it to be delivered by a business school or it may just be seen as a proxy for more slide presentations. Driving recommendation Schools are likely to be recommended to prospective students if they have course content that is very applicable to modern business, offer flexibility to study and work, have good links with business and industry and high academic standards. Those that don t get recommended are likely to have poor teaching quality and staff that are out of touch. A great brand can t replace a poor experience. Poor teaching quality, weak academic rigour and an absence of services to students can t be overcome by excellence in marketing. However, schools can t ignore continuing growth in programs taught in English to capture the large and mobile international student marketplace, MBA fees rising above 50,000 and a revolution in e-learning. With these and many more issues to consider in the business school marketplace, a great brand can make the difference when a student is deciding what and where to study. 10

11 the business of branding Group Market Research Schedule What do you need to know to develop your business school and keep it competitive in the international marketplace? CarringtonCrisp have worked with more than 100 business schools in 25 countries, providing actionable data to improve their operations and effectiveness. If you can t find what you want below, get in touch and ask us about a special piece of research to meet your specific needs. Each school participating in a study receives: A comprehensive set of slides with charts and analysis from all respondents and those from your business school. An on-campus presentation detailing the results from your school, as well as international trends. A global report in print and PDF format. Individual studies cost from 3000, but savings are available for any school booking multiple studies in a 12 month period. Three studies cost just 7000 with further discounts for four or five studies. THE BUSINESS OF BRANDING Distinctiveness is key to success in the international business school marketplace. Know your strengths and weaknesses, as well as those of your competitors. Understand where to promote your business school to get the best results from your marketing budget. Study commences: March 2013 Results available: May 2013 GENERATIONWEB For two-thirds of potential students your website is their most important source of information when deciding where to study. Get it wrong and the next school is just a click away. Discover what students think of your school website, what attracts them to stick on your site and how they use other web tools and social media. Study commences: November 2012 Results available: January 2013 TOMORROW S MBA Many schools report declining MBA applications, so what will attract tomorrow s MBA? How do prospective students make decisions? What motivates students, what impact do fees have and what return on investment do they expect? Study commences: October 2012 Results available: December 2012 ALUMNI MATTERS Alumni are often the most underutilised and undervalued resource that a business school has available. Whether it s advising prospective students, mentoring current students or supporting the school financially, alumni have an ever more important role. But what do alumni expect in return and what do they get? Study commences: May 2013 Results available: June 2013 TOMORROW S MASTERS Are Masters students the new MBAs? Numbers have grown dramatically in recent years, but what do tomorrow s Masters want to study, why do they choose a Masters instead of an MBA, what outcomes do they expect from their studies and why will they choose your school over a competitor? Study commences: November 2012 Results available: January 2013 For more information about any of the studies, visit our website at or to take part in a study, tick the appropriate box below, return the form and we will contact you to confirm your booking. GENERATIONWEB TOMORROW S MBA THE BUSINESS OF BRANDING ALUMNI MATTERS TOMORROW S MASTERS We wish to take part in the survey(s) selected above Contact Job title Name of Business School Telephone Signature Date e: info@carringtoncrisp.com t: +44 (0) Ladbroke Square London W11 3NB, UK The CarringtonCrisp report on the performance of our web site has provided us with a wealth of invaluable information. It was a thoroughly worthwhile investment Professor Alison Preston, Director Curtin Graduate School of Business Participating in Tomorrow s MBA has been invaluable to the University of Sydney Business School as it seeks to grow its management education portfolio. It required very little administrative support from us and provided us with a wealth of data in the key factors that influence prospective students decision to consider MBA and just as importantly which MBAs they are more likely to choose. Particularly significant for us was that Tomorrow s MBA allowed us to look at changes in student attitudes and perceptions over a number of years and also provided us with the ability to examine similarities and differences in the responses of prospective students from different geographic areas. The survey and its results produced some key insights that we have been able to use to identify opportunities to clearly differentiate our new program offerings. Nick Wailes, Director of MBA programs The University of Sydney Business School 11

12 European Foundation for Management Development rue Gachard 88 box 3 B-1050 Brussels, Belgium Telephone: + 32 (0) info@efmd.org Website: The Association of Business Schools 137 Euston Road, London NW1 2AA, United Kingdom Telephone: abs@the-abs.org.uk Website: CarringtonCrisp 34 Ladbroke Square London W11 3NB, United Kingdom Telephone: +44 (0) info@carringtoncrisp.com Website: