HIGHER EDUCATION SERVICES - MARKETING - MASS OR MARKETING SEGMENTED? Abstract

Transcription

1 International Conference On Applied Economics ICOAE HIGHER EDUCATION SERVICES - MARKETING - MASS OR MARKETING SEGMENTED? MARIA-LAVINIA POPESCU 1 Abstract The deep changes which happen in today society impose of educational institutions new exigencies for qualifications of the young generation. Taking her the former responsibilities of people, those see obliged all the time to adjust oneself by new curricular projects at quick economic and social change which influence decisive the conception what regarding the role of education system. For this reason any entity for profit to a big notoriety, for use at maximum the opportunities offered by market and for neutralization the threats of external environment in the first place is necessary to invest in human component and in them perfection, the key of any successful business. That is why a special importance presents the adaptation capacity of educational entities to continuum improvement of them offers which to lead to essentials elements of concept super named the new paradigm of marketing. JEL codes: M310 Key Words: education, educational services market, marketing culture 1 Introduction Marketing has entered very late in services sphere, creating in this regard a considerable gap between the entities producing goods and materials service. Default tertiary research literature addressing this issue is relatively small until the early 1990s. The news conditions make adequate the pedagogic preoccupations which regarding the issue of educational change in the direction drawing up the practical models which can be use by the managers of each university and by the teachers for project and for use the personal development strategies, but in the same time organizational. The changes impact and of the new socials requirements from Romanian education it is apparent in theoretical plan, but and in practical plan by the imperative of development strategies of Romanian schools accommodation at essential principles of quality in education. People make decisions every day, but most decisions involve a lesser degree of involvement. Decisions on the educational services are high because they involve decisions (Kotler & Fox, 1995, p. 245): a. choosing a faculty has implications for their image and may have lasting consequences on the lives of potential students; b. the decision to purchase educational services requires personal sacrifices economic; c. personal and social risks in the case in which they take a wrong decision are perceived as being very high; d. there is considerable pressure from reference groups to choose a particular faculty or university, and the potential student is strongly motivated to meet the expectations of reference groups. Currently, higher education institutions, as is the other organizations and businesses operating in a very dynamic environment. As a result of the speed and dimensions of environmental change, higher education institutions can not watch every change as a separate event that can be studied individually to maximize benefits and minimize negative effects to occur. Jim Knight said that the change is a present reality in which schools must learn to operate or to assume the risk of failure. 2 These developments require changes in how managers understand the relationship with the market institution that is addressed. Higher education reform requirements imposed by the transition to the Bologna system, universities and faculties require considerable efforts to adapt. With all elements of reform implemented, the current educational marketing information system applicable in Romania presents big deficiencies in special as regarding the quality of information provided to both managers and third-party institution. Thus, the current competitive environment, universities are beginning to recognize the growing importance of services they offer and, accordingly, focus on student needs and expectations. To be successful, a university must identify which are important issues for students and, therefore, to give students what they expected. Marketing orientation of activity of any modern higher education institutions have the prerequisite knowledge and anticipation of change taking place in its marketing environment. 3 2 Conceptual delimitations Investigation of educational request imposes the valuation of its structure and dimension, of spatial representation and phased in over time, the referral of trend. Investigation of potential consumers of education supposes the knowledge of images which they have about the values and educational services, about the report education - culture civilization. The educated fellow is also cultured, having a special capacity to obtain the social recognize of him values; he carry into effect the knowledge s and the personals qualities in the service of a good accommodation at the social life. 1 PhD candidate, Faculty of Economics Science and Business Administration, Babeş-Bolyai University, Cluj-Napoca, Romania, lavinicamaria@yahoo.fr Investing in people! Ph.D. scholarship, Project co-financed by the SECTORAL OPERATIONAL PROGRAM FOR HUMAN RESOURCES DEVELOPMENT Priority Axis 1. "Education and training in support for growth and development of a knowledge based society" Key area of intervention 1.5: Doctoral and post-doctoral programs in support of research. Contract nr.: POSDRU/88/1.5/S/60185 Innovative doctoral studies in a Knowledge Based Society Babeş-Bolyai University, Cluj-Napoca, Romania 2 J. Knight, Strategic Planning for School Managers, Kogan Page Limited, London, 1997, p.8. 3 R.G. Javalgi, C. L. Martin, R.B. Young, Marketing research, market orientation and CRM, Journal of Services Marketing, Vol. 20, No. 1, 2006, p. 13.

2 610 International Conference On Applied Economics ICOAE 2010 Are also important, and opinions citizens have about one or another fact of educational life. They have, of course, a certain attitude by which results the adherence or reserve of subjects with a particular subject matter. Research needs are the most significant part of studies on demand for education. Sociologists consider that, without examining the needs of the public cannot evaluate the effects of preferences and consumption of education. Because the education services are public services, at a first analysis we tend to consider their potential customers segmentation unnecessary. This idea of equality subordinate message transmitted for the first time the Statement of Rights of Man in 1789 is inconsistent with the distinct characteristics of consumers based on geographic, demographic, psychographic and behavioural criterions. The rapid development of universities and higher fees, together with increased competition in the current educational environment requires universities to adopt a strategy oriented by market to distinguish and differentiate the competitors offer. Also, in the context of a declining birth rate, government priorities in terms of quality education and reductions in public funding, many European countries suffered a sharp reduction of students number (Alves, 2005). Peter Scott report offers three possible scenarios for the future. The first is called steady state. Under this scenario, it will keep the current stage of expansion of higher education, although in Europe, recorded a substantial decrease in the number of young people (unlike the U.S. and Canada where the birth rate has not decreased, and immigrations also contributes positively). In addition, a higher education continuously expanding and increasingly diversified to become very difficult to finance as much of that cost would be borne by families or employers, which in current lending conditions will be very difficult. The second scenario considered by the authors as most likely to provide continued growth, diversification and expansion of higher education, but with large differences from one region to another, from one country to another, depending on the degree to which the current crisis economy is felt. This scenario provides exacerbation importance given rankings. The third scenario is to transform the entire current system of higher education in a Life Long Learning, which would mean giving up the elite form. According to the author, long-term impact of this measure cannot be predicted. In these circumstances universities are facing the need to adapt to some significant changes, with increasing emphasis on attracting and retaining students in faculty, through the satisfaction their needs and expectations. But first it is necessary to know these needs through careful study of the dimension of the student educational experience. Their knowledge will allow the determination of interest for future studies, but for the present, because a student may waive an institution of higher education courses at any time. Parents and students may choose an educational institution only taking in account the image possesses by this. The image can be changed or consolidated by creating a distinct identity. Positioning refers to the differentiation of educational institutions offer other possible alternatives, on the market. By determining the causes which determine the attraction or rejection of an institution by customers can be determined position in the framework of market, can be explored and identified best position to positioning and can be outlined several strategies through which to be reached this position. An educational institution speaks to a vast audience of consumers. By identifying the specifics of each segment and individual particularities can develop strategies to answer these needs. The effectives and potentials students represent specific market segments, which institutions must pay a very good attention. First be identified segments of students who frequent the education institutions and types of customers wanted them. Then recruitment process should focus on these market segments. Today, to can to survive organizations must know their customers well. When teachers are asked what their target audience in mind, one answer is given, namely community. However the concept of community is quite ambiguous. More specifically it can refer to a specific location, for example community of Cluj or may refer to the Hungarian community. But when it is brought into question the educational domain can say that there are many communities that the term community is understood as being useless. As such it is more productive if they use a series of specific marketing concepts, such as: market, market segments and target market. In education, as well as the private sector, a clear identification of market segments, whose needs must be covered and not least satisfied, is a focal point of any specific marketing activities. An organization is considering two ways through which it can approach the market. More specifically it can appeal to mass marketing, which involves a failure of the differences between needs and consumer preferences or market segmentation, which involves an adaptation to the needs and preferences of each type of consumer. The first approach is more convenient because it involves much lower costs than the two and is much easier to implement. In other words, mass marketing is applicable then when the consumers indifferent by needs and preferences are not alternatives. More and more people aspiring to obtain a higher education diploma, which induced important changes in offers of university services. As a result of these pressures and diversification over the past 30 years, in the world, number of students increased by 300% and that of academics has tripled. On selective higher education has become the mass. Education in general and especially higher education turned into a veritable industry, have reached a similar projection of the most powerful contemporary and modern industries (for example, the communications) and to replace traditional industries established in the centuries XIX -XX. Indeed education services are fundamental to society and knowledge economy. While mass marketing is common in the educational domain, segmentation and positioning are better adapted to specific populations. The argument supporting the appeal to market segmentation is very simple and natural at the same time. Specifically people are different one from another and at the same time have different needs, and any organization should consider this. Garrido Garcia 4 identified the following trend has evident in the higher education sector today: the generalization of higher education. This trend runs counter to the main reason to be of universities: an elite education in science and arts domain. Educational 4 J. L. G. Garrido, The Evolution of European University, European Education, vol. 34, no. 3, 2002, pp

3 International Conference On Applied Economics ICOAE policies try to establish compatibility between generalization process and selection of candidates taking into account their specific skills. 3 Mass marketing versus marketing segmentation in higher educational services by consumers point of view Image an educational institution is in an amount of mental representations, objective and subjective outlined among the target audience. Table no. 1: Most disagreeable aspect in FSEGA Disagreeable aspects in FSEGA Percent Big number of students 30 The fees very big 22 Inadequate preparing of teachers 6 Insufficient support from academic performance 7 Low students information 3 Absence the firms stages 25 Very big bureaucracy 7 Total 100 The most disagreeable aspects from the people who study in the framework of FSEGA are the big number of students register in the framework of this higher education entity (30%), absence of internships offered within firms (25%) and high fees (22%). Percent less accumulated: high bureaucracy (7%), poor academic performance support (7%), dissatisfaction vis-à-vis the level of teacher education (6%) and information poor students. Table no. 2: Most disagreeable aspect in FSEGA N Valid 100 Missing 0 Mean 3.34 Median 2 Mode 1 Std. Deviation 2.22 Variance 4.91 Skewness 0.37 Std. Error of Skewness 0.24 Kurtosis Std. Error of Kurtosis 0.48 Minimum 1 Maximum 7 Percentiles The modal indicates the fact that the aspect considered most unpleasant in FSEGA is the big number of students. Analyzing the minimum value taken respectively the maximum value than that observed to use one of the seven types of response at least once. It is noted that the series is slightly asymmetric positive, with deviation to the right (Skewneess = 0.37 > 0), and distribution is plutocratic (Kurtosis = < 0), clustering around the central value is lower and frequency curve is flatter.

4 612 International Conference On Applied Economics ICOAE 2010 Figure no. 1: Disagreeable aspects in FSEGA The most disagreeable aspect in FSEGA high bureacracy 7.0% stages absence 25.0% big no. of students 30.0% poor students inform 3.0% poor support 7.0% inadequate prepare high fees 22.0% 6.0% A special importance must attributed by education services providers to increase consumer acceptance near the agreeable environment given of educative act. The attitudes are perceived by some experts as representing a general assessment. This valuation can range from extremely positive to extremely negative. It is very important to note how respondents perceive the usefulness of introducing a screening examination for admission, taking the view that attitudes vary in strength and favourability. Observes the fact that students within the framework of FSEGA consider that the selection realizes in base of entrance examination, how it acts in the big universities of world, would be more efficient, 93% between the persons asked being in agreement with this affirmation. Figure no. 2: Efficiency of selection in base of examination Big universitie entrance examination selection=better? no 7.0% yes 93.0% An important characteristic of attitudes is this that they are dynamics. This implies that attitude will change over time, thus can see that if in previous period the consumers of educational services were somewhat reluctant at changes happened in professional former process, now results of horizon opening and of free access at information, as and of informational air raid at who we are witness in the last period see an opening face to novelty which is percept as an instigation and an opportunity rather than as an unnecessary change. The students asked are aware of fact that the system used in the biggest universities which involves the suggestion an one vast palette of optional disciplines between which the consumer of educational services can choose those which represents him better and to give a diploma corresponding to the profile obtained in base of disciplines basket studied is more efficient, 88% between they declaring this thing. Figure no. 3: Higher diploma in rapport with an options gamut Higher diploma in repport with an optionals gamut no 12.0% yes 88.0% The students at masters are aware that the most important aspect of educational prepare is represented by competences, abilities, aptitudes and knowledge acquired at the end of process, 88% between they said that the accent must put on this side and not only the existence of a diploma.

5 Frequency International Conference On Applied Economics ICOAE Figure no. 4: Diploma versus knowledge s What aspect is most important in your opinion? diploma 12.0% aptitudes, abilities 88.0% Table no. 3: How much are you inclined to pay for educational services with better quality? Percent Valid Till at 1000 euro/year 86 Till at 3000 euro/year 11 Till at 5000 euro/year 3 Total % between persons asked would be disposed to pay the most 1000 euro/year for can beneficiate by educational services with a superior quality, while as 11% would be disposed to pay off till at 3000 euro/year and just 3% would offer till at 5000 euro, over this value any person not being interesting to offer. Figure no. 5: The fees value 100 Fees for educational services by quality till 1000 euro/year 11 till 3000 euro/year till 5000 euro/year What are you dispose to pay from quality in educational services? Table no. 4: How much are you inclined to pay for educational services with better quality? N Valid 100 Missing 0 Mean 1.17 Std. Error of Mean 0.05 Median 1 Mode 1 Std. Deviation 0.45 Variance 0.20 Skewness 2.73 Std. Error of Skewness 0.24 Kurtosis 7.03 Std. Error of Kurtosis 0.48 Range 2 Minimum 1 Maximum 3 Percentiles Mean value, median value and modal value have approximately the same value, the difference between the first and the following two being just 0.17, thing which indicates the fact that the series studied is almost symmetric.

6 Count 614 International Conference On Applied Economics ICOAE 2010 Between the four proposed variants of persons asked only three between them was used, for the last does not be any apparition frequency. Studying the 3 quartiles it can observes that all frame in the first interval (fewer 1000 euro), the people asked choosing in a percent more than 75% this variant. Table no. 5: What aspect considers you is the most disagreeable aspect in FSEGA? * FSEGA services are they by quality? % of Total FSEGA services are they by quality? Total no yes What is the Big number of students most The fees very big disagreeable Inadequate preparing of teachers aspect in Insufficient support from FSEGA? academic performance Low students information Absence the firms stages Very big bureaucracy Total Students interviewed consider that most unpleasant aspect in the framework of FSEGA is the big number of students, followed by the absence of internships in companies and high fees. Percent much reduced chose the response option the bureaucracy, inadequate teacher prepare, insufficient support of academic performance and poor students information % of those who are dissatisfied by the quality of educational services believe that this is due to too many students, 22.73% think that this is due to inadequate preparation of teachers, lack of internships in companies 18.18% and 13.64% failure to support academic performance. Figure no. 6: Disagreeable aspects in the framework of FSEGA versus FSEGA educational services FSEGA services=qual big no high of students fees inadequate poor support prepare high buracracy stages absence poor students inform yes 0 no The most disagreeable aspect in FSEGA? 4 Conclusions Even if the principal tendency is represented by the higher education generalization, result of fact that the number of students increased by 300% and that of academics has tripled, though we see that in reality we confront with a mass marketing, at least at declared level the recipients of benefit of this type of services want a differentiated education, respectively a marketing segmentation having in view the fact that they appreciate the selection on the base of examination more efficacy and they wish a diploma in rapport with an options gamut. Thus, FSEGA must able in view all this aspects emerged by consumer study of educational services, the central pawn of anyone purchase decision for obtain a competitive advantage in an economy with profoundest changes. Is essential for this that entity to introduce an adequate strategy which lead at a big profitability and an efficacy. 5 References Brătianu, C., (2002) Paradigmele managementului universitar, Editura Economică, Bucureşti Garrido, J.L.G., (2002) The Evolution of European University, European Education, vol. 34, no. 3 Jaba, E., Grama, A., (2003) - Analiza statistică cu SPSS sub Windows, Iaşi Javalgi, R.G., Martin, C.L., Young, R.B., (2006) Marketing research, market orientation and CRM, Journal of Services Marketing, Vol. 20, No. 1 Knight, J., (1997) - Strategic Planning for School Managers, Kogan Page Limited, London Kotler, Ph., Karen, F. (1995) Strategic Marketing for Educational Institutions, Second Edition, Prentice-Hall, Inc., New Jersey Kotler, Ph., (coord.), (1998) - Principiile marketingului, Ed. Teora, Bucureşti Pah, I., (2004) - Tehnici de analiză a datelor cu SPSS, Ed.Presa Univ.Clujeană,Cluj-Napoca Plăiaş, I., (2005) - Comportamentul consumatorului, Editura Risoprint, Cluj-Napoca Pop, M.D., Băcilă, M.F., Moisescu, O.I., Tîrcă, A.M., (2008) - Marketing educaţional sistemul informaţional de marketing, colecţia Marketing Expressus, Ed. Alma Mater, Cluj-Napoca