EAIE 17th Annual Conference September 2005 Krakow. Workshop 8 14th September 05 Preparing a Marketing Plan for your Institution

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1 EAIE 17th Annual Conference September 2005 Krakow Workshop 8 14th September 05 Preparing a Marketing Plan for your Institution Andrew Nicol - Speaker Arnold Persoon - Speaker Chris Price Speaker Christiane Roth - Chair 1

2 WORKSHOP OVERVIEW Introduction Definition of Marketing Why a Marketing Plan The components of a Marketing Plan: - Objectives - Market overview and situational analysis Coffee Break - SWOT analysis - Definition of marketing strategy and positioning Lunch Break - Target definition - The 7 Ps - Action Plan and Timing Coffee Break - Budget - Critical Issues - Implementation and Controlling Closure 2

3 What is Marketing? Some definitions Marketing is a social and managerial process through which institutions and individuals obtain what they want through creating, offering and exchanging products and services with others. The management of marketing solutions in such a way as to create exchanges that satisfy individual and institutional objectives. (Gibbs and Knapp, 2002) How will people know what you offer and what you are good at unless you tell them? (Hermans, Price and Van Vugt, 2004) 3

4 What is Marketing? To do all in our power to pack the customer s dollar full of value, quality and satisfaction JC Penney, 1913 (Far ahead of his time) Around the same time Henry Ford said: you can have it in any colour you like as long as it s black 4

5 What is Marketing? The Customer first Find wants and fill them Make what will sell instead of trying to sell what you can make Love the customer and not the product (the customer is always right) Have it your way (Burger King) You re the boss (United Airlines) 5

6 What is Marketing? The process Analysis Planning Execution Control Of carefully designed programs/plans to generate a free transaction with the aim to realize your institutional goals. 6

7 Marketing of HEIs Non-profit Public Good Exchange based on trust The future of young people We are not selling tooth paste! 7

8 Why Marketing for HEIs? The university business in the US is worth 175bln US$ Competition among HEI - Student population decrease - Direct competition - Indirect competition - International competition Increased mobility of students 8

9 Why a Marketing Plan? WHY does WHAT have to be done by WHOM with WHICH MEANS and WHEN To realise corporate goals 9

10 So writing an international marketing plan is easy. 10

11 Well not really International Offices are working in a sophisticated and increasingly competitive international environment We don t have the time to plan there is too much to do! There is always something more important to complete We do not have the resources in terms of marketing budget or staffing resource to become active internationally 11

12 Why a Marketing Plan Important Principles International Marketing Managers will benefit from any systematic, strategically focused, market planning process Writing the plan is easy - it is the work that goes into the plan that requires research, preparation and thought It is astounding how many universities with significant marketing, non-staffing budgets and large marketing/ recruitment operations, spend little or no time on the international marketing plan Clarity of international strategy (corporate objectives) and operational plans (country and school/faculty plans) will result in positive outcomes for the organisation 12

13 International Marketing Plan: Corporate Plan Strategic Country Plans for each Strategic Aim In the Corporate Plan Development Faculty/School Plans Plan for each School and Department 13

14 Key Steps to Developing the International Marketing Plan: Assessing the Market Choosing the Market Setting Goals and Objectives Selecting Entry Modes: Export (Agents) Contractual (Franchises) Investment (in-country campus) Writing and implementation of International Marketing plan: Corporate Plan Country Plans School Plans Operation within the target Market CONTROL SYSTEM Monitoring Revising and Refining 14

15 1. Executive Summary Marketing Plan An overview 2. Objectives 3. Market overview and situational analysis 4. Marketing strategy definition and positioning statement 5. Definition of target 6. Definition of Marketing Tools 7. Operational Plan 8. Timing 9. Budget 10. Critical Issues 15

16 The Executive Summary 1 A4 page To be written in the end Key points you wish to convey Presentation of a Marketing Plan 16

17 Objectives The Institutional Goal The Mission The Marketing Goal Measurable Context/background 17

18 Marketing Goal: an example Your university has a great reputation in biogenetics and the institutional goal points this field as 1 of the 5 fields to focus on for the future since data show important competitive advantages. For this reason funds will made available to change the existing program to a 2 year top research master. The marketing goal is (1) to double the amount of incoming masters students of 100 for the existing low promoted program to 200 for the new established top master in five years time and (2) to secure a qualitative recruitment (90% of students should be able to finish within 2 y). Research shows international recruitment next to national recruitment will be necessary to achieve both goals. Subsequent intermediate goals deriving from this medium-term goal are: Year 2005 Total amount of master students recruited 100 % growth Minimum amount of graduated masters Specify Measurable % 7% 95 Realistic? % % 29%

19 International Marketing Goal deriving from the overall marketing objective To achieve the institutional goal for the research master in biogenetics data show international recruitment is necessary to achieve overall marketing goals. National recruitment will not be enough to double the amount of students by The international marketing goal will be to have a participation of 20% international students by the year year Total amount of master students to recruit % growth / year Forecast national National growth forecast % Number to recruit internatio nal Internal growth % % internation al as % of total % 102 2% 3 3% % 107 2% 5 67% 4% % 114 2% % 11% % 130 2% 25 79% 16% % 160 3% 40 60% 20% 19

20 Objectives - Exercise What is your institution s Mission? Formulate the marketing objective! International Marketing Goal? 20

21 Market Research. 21

22 International Market Research Secondary Data: Collected by someone other than the researcher, for purposes other than those of the project in hand Primary Data: Collected by the researchers or their agents specifically for the project at hand. Primary Data is i) expensive and ii) takes time to collect great if you have the time but focus on collection of secondary material! 22

23 International Market Research: Sources of Secondary Information EXTERNAL INTERNAL Previous Market Research CRM Database information Sales Reports Student Registration information Internet Government information British Council/IDP/DAAD/ Edu France Economist/Euromonitor EAIE/NAFSA/KAFSA 23

24 Example Secondary (External) Main Source Countries for International Students to the UK 2002/ China 32, USA 14, India 10, Malaysia 10, Hong Kong 9, Gulf States 6, Japan 6, Taiwan 4, Singapore 4, Nigeria 4,100 Source: Vision 2020 Report British Council (2004) 24

25 Example Secondary (External) Forecast of Demand for International Student Places in the UK (base scenario) Top 3 Source Countries China India Malaysia Source: Vision 2020 Report British Council (2004) 25

26 Example Secondary (External) Which institutions receive the largest numbers of international students in the UK? Top 10 largest recruiters of international students, 2001/02 Non-UK student Numbers % students at institution who are international Middlesex University The University of Cambridge The University of Birmingham The University of Oxford London School of Economics The University of Warwick The University of Nottingham The University of Leeds The University of Westminster University College London 5,395 5,125 8,815 4,705 4,640 4,635 4,565 4,425 4,225 4,040 22% 21% 16% 21% 60% 17% 16% 14% 17% 23% Source: UKCOSA The Council for International Education 26

27 Internal and external environment. 27

28 External Environment Undifferentiat ed products Predatory nature of established competition Threat of Substitute products or services -Threat posed by other providers Australia, NZ, Singapore etc -Better quality of local provision -Elearning/blended delivery Bargaining power of suppliers Intensity of rivalry among existing competitors. Bargaining power of channels and end-users. -Agents have vast numbers of partners and opportunities difficult to build loyalty No significant barriers entry liberalisation of education; KAPLAN, Singapore Etc Barriers to Entry Increased power of students due to extended choice, transparency of pricing and availability of programmes 28

29 Environmental Scanning/Country Screening Environmental/Country screening is a critical element with formulating an international marketing plan The external environment consists of two interacting subsets: 1. The Macro-Environment (no control) 2. The Competitive Environment (control can be exerted) 29

30 Example PEST Analysis - CHINA Factor Political/Legal Economic Impact of Factor UK Visa Section increases number of rejections to 55% - impact of student mobility to UK Students returning to China after taking a vocational UK Masters degree are not yielding higher salaries ion the Chinese market place Opportunity or Threat? THREAT You are considering direct student recruitment to be a key objective in your recruitment plan THREAT Student applications to the UK are dropping from China and this, combined with political/legal context (visa situation), may effect your potential number of registrations. OPPORTUNITY You offer an internship at your university as an integral part of your masters programmes Socio-Cultural A UK education is perceived in Chinese society to be synonymous with quality Chinese employers i) value and ii) pay higher salaries to English-speaking graduates OPPORTUNITY: Your are a traditional UK university with government indicators of teaching and research quality Your graduates have an excellent employability record and you have successful testimonies from past Chinese students Technological Chinese society views elearning and distance learning as an inferior/low quality option THREAT E-Learning is one of your key product offerings 30

31 Factor Example Environmental Impact Analysis - INDIA Impact of Factor Opportunity or Threat? Competition Customers Suppliers Threat of New Entrants Intense rivalry in market place from UK, Australian, and local providers IDP Australia invest in new office network in New Delhi, Chennai, Mumbai, Chandigarh, Bangalore, Ahmedabad and Hyderabad Overseas investment by HP, Vodafone etc has resulted in skills shortage which is driving significant customer demand for vocational masters programmes in IT area. Local universities both state-owned and private cannot keep up with demand. Barriers to entry are low (India is low-cost to operate in; well-established system of law and governance, safe etc.) CRITICAL THREAT The market place is becoming crowded can you compete? Can you build market share (if you are already there)? Are your products/prices competitive enough to build market share if you are a new entrant to the Indian market? SIGNIFICANT OPPORTUNITY Local demand strongly converges with your product offering OPPORTUNITY: Although competition is fierce, demand is high THREAT New entrants Germany, France, Netherlands, etc may also enter the market with innovative product offerings/lower cost etc. 31

32 Conclusion. 32

33 Conclusion 1. Your institution will benefit from any market planning, however modest, you undertake 2. Writing the plan is easy it s the preparatory work which takes time and effort 3. Your international plan will only be as good as the market research and intelligence which underpins it 4. Understand the environment you are working in if you don t buy in expertise 5. Your plan cannot be developed in isolation from the rest of the institution buy in is critical 33

34 SWOT Exercise Strength SEU is an institution with long tradition and wellknown nationally Their language for foreigners is highly successful and recognized SEU has an office dedicated to orientation for national students The international reputation of the faculties of biology and agriculture Their economics department already has 6 years of successful experience in recruiting international students and providing services to these students. The organisational structure has proven to be effective. Their campus is located at the shore of the Mediterranean sea Weaknesses The SEU is not ranked in any European university listing Its research program in agriculture is small and relatively unknown The SEU does not have any international presence at fairs or events The SEU is not a brand like LSE, Harvard, etc. There are no courses taught in English The SEU has no strategy for international alumni. The SEU lacks a campus wide, integrated CRM system, therefore the effectiveness of marketing and recruitment instruments cannot be measured Campus housing is limited. 34

35 SWOT Exercise (cont.) Threats National immigration laws are too strict. The GATS agreement will bring other suppliers of HE to the market. The implementation of Bologna will lead to the possibility that an estimated 10-30% of the students will go abroad for a post-graduate degree. The financial support from the national education ministry will be reduced by 20% over the next 5 years The forecast of student population for the next 10 years shows a reduction of 15% SEU notes lower preparation in sciences and math of first-year students Roughly 50% of all EU students opt for Social Sciences, Humanities, Business and Law. Opportunities The global demand for international education is expected to grow steadily in the next 20 years. The implementation of Bologna offers the opportunity to recruit for 1-year post-graduate degrees. More and more students in the EU can take their national study grant abroad. The accession of 10 new member states to the EU opens up the market to recruit students against the home fee. Strict US immigration laws will force students to choose a different destination. National grants and scholarships are open to all students EU strategy is aimed at improving the position of EU HE vis-à-vis the US and Australia. Top-up fees in the UK will make British universities more expensive for EU students The local population of the town is known for 35 its hospitality and openness towards foreigners

36 Mass-marketing vs nichemarketing Mass-marketing: using almost the same product, promotion and distribution for all customers (Philip Kotler) Nichemarketing: adapting a company s offerings to more closely match the needs of one or more subsegments where there is often little competition (Philip Kotler) 36

37 Marketing Strategy 37

38 Marketing Strategy Present Market New Market Present Product domestic market share increase Internationalisation New Product Distance Learning Microsoft Pfizer 38

39 Which students should become our Customers? Use STP Segmentation Targeting Postitioning 39

40 STP: Segmentation Segment the market in useful groups Based on: Geographical factors Demographic factors Sociographic factors Psychographic factors Life-style factors Etc. 40

41 STP: Targeting Decide which segments are best for your product: Based on Market research Quality vs Quantity Available funds Passed performance in segment Risk management Classroom diversity Other strategic motives 41

42 STP: Positioning Positioning is not about your product or organisation It s about the Perception of your product or organisation in the minds of (potential) customers Perception = Truth 42

43 Positioning Your Organisation / brand Marketing Communication Benchmarking Your Positioning Feedback & Purchase Target Audience relevance Marketing Communication Competition distinction Feedback & Purchase 43

44 Key to good positioning Know your customer (or segment) and how/what to communicate with him/her Know the position of your competitors Know your product and adapt it to the customer as required (the 7P s) Turn your Product into a Brand (Using Integrated Marketing Comm.) 44

45 Your product can be described using the 7 P s It includes all aspects of your Product/Service: Product (or Service) Price Place Promotion People Processes Physical Evidence 45

46 The 7P s: Product (or Service) What is included in the Product? What is the quality/reputation? How broad is your offering? Language used? Think of the computer software and signs Extra s? (e.g. language course, orientation, etc.) Etc. 46

47 The 7P s: Price Price in comparison to: Competitors Quality/Reputation Purchasing power of Customers Career prospects 47

48 The 7P s: Place Traditionally: via which distribution channels is the product available? For Universities also: Where is the institution located Do you use agents or can students apply directly? Where is the institution located in comparison to Competition? 48

49 The 7P s: Promotion Which type of promotion will you use? Advertising? PR Direct Marketing Sales Promotion? And how/what do you communicate via these channels? (Integrated Marketing Communications) 49

50 The 7P s: People What are the skills of the people involved with your Product? Language skills? Cultural Sensitivity? Reputation Internationally applicable knowledge/skills? For all your: Teaching and International office staff And did you think of your janitors, security officers, receptionists & doormen? 50

51 The 7P s: Processes How easy is it to buy & use your product/service? Application & Admission Procedure Visa/Housing Procedure Registration for courses Renting books from the library Opening a bank account Complaints/Withdrawal Procedures Customer first! Processes should be easy for the customer rather than for your institution 51

52 The 7P s: Physical Evidence Proof that you exist Proof that you are who you say you are Proof of that you are able to deliver what you promise 52

53 Key to good Marketing Adapt the 7P s to the targeted Customer s needs and desires Do it the best of your (institutions) capabilities Do it better than and different from your competitors Information is key in decision making! Ensure you collect as much information about your customers as possible 53

54 Action Plan & Timing Operational Planning Exhibitions CRM Systems Agents Advertising PR Material Internet Etc. Time frame External factors Internal factors 54

55 Classifying entry modes INDIRECT ENTRY DIRECT ENTRY MARKETING ONLY Website Advertising Telephone Mailings Scholarship Agents In-country representative In-country Office LOW RISK Franchise Validation Exchanges MARKETING AND DELIVERY LIMITED CAPITAL Joint venture (joint programmes) Sole venture (in-country campus) EXTENSIVE CAPITAL HIGH RISK 55

56 Budget 80% of all Marketing spending is thrown away the problem is you don t know which 80% Collecting information stops you from guessing and makes the results of your actions measurable 56

57 Assignment - Budget You represent an institution new to marketing but with an existing inflow of international students and enquiries (due to word of mouth and partner institutions) You have limited staff available and now for the first time receive a limited marketing budget from your institution (let s say 100,000 in total for a period of 3 years) Your task is to recruit as many (fee paying) enrolled students as possible within three years. (Lets say +50% compared to year 0) The continued existence of your office depends on success How do you divide your money over the 3 year period and What do you spend your money on in each year? 57

58 The Marketing Funnel Leiden University (70%) 500 Enrolled students (60%) 720 Accepted Applicants (25%) 1,200 Unprocessed Applicants (12,5%) 4,800 Enquirers (Brochures/ questions) 38,000 Webvisitors Students who don t know you 58

59 The Marketing Funnel: Spending Enrolled students Start here! Accepted Applicants Work down Unprocessed Applicants Enquirers (Brochures/ questions) Webvisitors Students who don t know you 59

60 Implementation - Controlling OK from your top management: GET IT DONE! Resources Budget Timing Share commitment Internal Marketing CONTROL RESULTS! 60

61 EXTERNAL INTERNAL Critical Issues or Contingency Thinking OTSU! 61

62 SUMMARY Introduction Definition of Marketing Why a Marketing Plan The components of a Marketing Plan: - Objectives - Market overview and situational analysis Coffee Break - SWOT analysis - Definition of marketing strategy and positioning Lunch Break - Target definition - The 4 Ps - Action Plan and Timing Coffee Break - Budget - Critical Issues - Implementation and Controlling Closure 62

63 EAIE 17th Annual Conference September 2005 Krakow Workshop 8 14th September 05 Preparing a Marketing Plan for your Institution Andrew Nicol - Speaker Arnold Persoon - Speaker Chris Price - Speaker Christiane Roth - Chair THANK YOU! 63

64 Writing an International Marketing Plan Andy Nicol, Deputy Director of International Development Nottingham Trent University

65 Format 1. Context why planning is important 2. Key stages and elements of market planning 3. Market research 4. Internal and external environment 5. Concluding remarks 26 September

66 So writing an international marketing plan is easy.

67 Well not really International Offices are working in a sophisticated and increasingly competitive international environment We don t have the time to plan there is too much to do! There is always something more important to complete We do not have the resources in terms of marketing budget or staffing resource to become active internationally 26 September

68 Market Planning.

69 International Marketing Managers will benefit from any systematic, strategically focused, market planning process Writing the plan is easy - it is the work that goes into the plan that requires research, preparation and thought It is astounding how many universities with significant marketing, non-staffing budgets and large marketing/ recruitment operations, spend little or no time on the international marketing plan Clarity of international strategy (corporate objectives) and operational plans (country and school/faculty plans) will result in positive outcomes for the organisation

70 International Marketing Plan: Corporate Plan Strategic Country Plans for each Strategic Aim In the Corporate Plan Development Faculty/School Plans Plan for each School and Department 26 September

71 Key Steps to Developing the International Marketing Plan: Assessing the Market Choosing the Market Setting Goals and Objectives Selecting Entry Modes: Export (Agents) Contractual (Franchises) Investment (in-country campus) Writing and implementation of International Marketing plan: Corporate Plan Country Plans School Plans Operation within the target Market 26 September 2005 CONTROL SYSTEM Monitoring Revising and Refining 8

72 Classifying entry modes INDIRECT ENTRY DIRECT ENTRY MARKETING ONLY Website Advertising Telephone Mailings Scholarship Agents In-country representative In-country Office LOW RISK Franchise Validation Exchanges MARKETING AND DELIVERY LIMITED CAPITAL Joint venture (joint programmes) Sole venture (in-country campus) EXTENSIVE CAPITAL HIGH RISK 26 September

73 Market Research.

74 International Market Research Secondary Data: Collected by someone other than the researcher, for purposes other than those of the project in hand Primary Data: Collected by the researchers or their agents specifically for the project at hand. Primary Data is i) expensive and ii) takes time to collect great if you have the time but focus on collection of secondary material! 26 September

75 International Market Research: Sources of Secondary Information INTERNAL Previous Market Research CRM Database information Sales Reports Student Registration information EXTERNAL Internet Government information British Council/IDP/DAAD/ Edu France Economist/Euromonitor EAIE/NAFSA/KAFSA 26 September

76 Example Secondary (External) Main Source Countries for International Students to the UK 2002/ China 32, USA 14, India 10, Malaysia 10, Hong Kong 9, Gulf States 6, Japan 6, Taiwan 4, Singapore 4, Nigeria 4, September 2005 Source: Vision 2020 Report British Council (2004) 13

77 Example Secondary (External) Forecast of Demand for International Student Places in the UK (base scenario) Top 3 Source Countries China India Malaysia September 2005 Source: Vision 2020 Report British Council (2004) 14

78 Example Secondary (External) Which institutions receive the largest numbers of international students in the UK? Top 10 largest recruiters of international students, 2001/02 Middlesex University The University of Cambridge The University of Birmingham The University of Oxford London School of Economics The University of Warwick The University of Nottingham The University of Leeds The University of Westminster University College London Non-UK student Numbers 5,395 5,125 8,815 4,705 4,640 4,635 4,565 4,425 4,225 4,040 % students at institution who are international 22% 21% 16% 21% 60% 17% 16% 14% 17% 23% 26 September 2005 Source: UKCOSA The Council for International Education 15

79 Internal and external environment.

80 External Environment Undifferentiated products Predatory nature of established competition Threat of Substitute products or services -Threat posed by other providers Australia, NZ, Singapore etc -Better quality of local provision -E-learning/blended delivery Bargaining power of suppliers Intensity of rivalry among existing competitors. Bargaining power of channels and end-users. -Agents have vast numbers of partners and opportunities difficult to build loyalty Increased power of students due to extended choice, transparency of pricing and availability of programmes No significant barriers entry liberalisation of education; KAPLAN, Singapore Etc Barriers to Entry

81 Environmental Scanning/Country Screening Environmental/Country screening is a critical element with formulating an international marketing plan The external environment consists of two interacting subsets: 1. The Macro-Environment (no control) 2. The Competitive Environment (control can be exerted) 26 September

82 Example PEST Analysis - CHINA Factor Impact of Factor Opportunity or Threat? Political/Legal UK Visa Section increases number of rejections to 55% - impact of student mobility to UK THREAT You are considering direct student recruitment to be a key objective in your recruitment plan Economic Students returning to China after taking a vocational UK Masters degree are not yielding higher salaries ion the Chinese market place THREAT Student applications to the UK are dropping from China and this, combined with political/legal context (visa situation), may effect your potential number of registrations. OPPORTUNITY You offer an internship at your university as an integral part of your masters programmes Socio-Cultural A UK education is perceived in Chinese society to be synonymous with quality Chinese employers i) value and ii) pay higher salaries to Englishspeaking graduates OPPORTUNITY: Your are a traditional UK university with government indicators of teaching and research quality Your graduates have an excellent employability record and you have successful testimonies from past Chinese students Technological Chinese society views e-learning and distance learning as an inferior/low quality option THREAT E-Learning is one of your key product offerings 26 September

83 Example Environmental Impact Analysis - INDIA Factor Impact of Factor Opportunity or Threat? Competition Intense rivalry in market place from UK, Australian, and local providers IDP Australia invest in new office network in New Delhi, Chennai, Mumbai, Chandigarh, Bangalore, Ahmedabad and Hyderabad CRITICAL THREAT The market place is becoming crowded can you compete? Can you build market share (if you are already there)? Are your products/prices competitive enough to build market share if you are a new entrant to the Indian market? Customers Overseas investment by HP, Vodafone etc has resulted in skills shortage which is driving significant customer demand for vocational masters programmes in IT area. SIGNIFICANT OPPORTUNITY Local demand strongly converges with your product offering Suppliers Local universities both state-owned and private cannot keep up with demand. OPPORTUNITY: Although competition is fierce, demand is high Threat of New Entrants Barriers to entry are low (India is low-cost to operate in; wellestablished system of law and governance, safe etc.) THREAT New entrants Germany, France, Netherlands, etc may also enter the market with innovative product offerings/lower cost etc. 26 September

84 Conclusion.

85 Conclusion 1. Your institution will benefit from any market planning, however modest, you undertake 2. Writing the plan is easy it s the preparatory work which takes time and effort 3. Your international plan will only be as good as the market research and intelligence which underpins it 4. Understand the environment you are working in if you don t buy in expertise 5. Your plan cannot be developed in isolation from the rest of the institution corporate buy in is critical 26 September

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