A Literature Review to Marketing of Higher Education

Okai Ozbal, PhD Candidate, IBU Management Department
Zafer Konakli, PhD, IBU Department of International Business, HoD

Introduction
Changing Market Conditions
Marketing Mix
Communication with Publics
Conclusion

Marketing concept began to gel
and become recognized as a
vital and viable management
approach to the operation of
an organization back in the
1930s.
It blossomed from the
depression years providing
direction and integration to all
management functions.
Kossak (1989)
Larger photo: 1929 Wall Street Crash
Introduction
Changing Market Conditions
Marketing Mix
Communication with Publics
Conclusions
Introduction
The Great Depression (1929-1939)
Ozbal and Konakli International Burch University

After WW2 the US became the
greatest military and economic
power in the world.
• 7% of the world population
• Produced 50% of the
world’s manufactured goods
• Created 40% of the
world’s income
• The postwar baby boom
peaks, and a baby is born every
seven seconds in the U.S.
Introduction
Marketing Mix
Conclusions
Introduction
The Great Depression (1929-1939)

Introduction
Marketing Mix
Conclusions
Introduction
The Baby Boomers in 60’s

 American college market enjoyed the advantages of being a seller’s
market for decades.
 The use of marketing techniques by colleges and universities was not
realized until the 1960s and 1970s.
Introduction
Marketing Mix
Conclusions
Introduction
Seller’s Market

The demand for
higher education was
fed by the "baby
boom" with ever
increasing supply
of high school
graduates.
Introduction
Marketing Mix
Conclusions
College Enrollments

Introduction
Marketing Mix
Conclusions
Seller’s Market to Buyer’s Market
 To accommodate this increased market for higher education, the number of
colleges rose dramatically
 However, in the late 1970s
the "BABYBUST"REPLACEDthe "baby boom”
 The number of high school graduates dropped from 3.2 M to 2.8 M within 10 yrs
 The student market became increasingly competitive with decreasing numbers and
increasing tuitions
 Higher Education began to shift from a seller's to a buyer's market.
 Many administrators began to turn to marketing methods for help!

 Should educational institutions get involved in marketing?
 Students could be considered as customers or consumers in the first place?
 Isn’t it shameful to consider students as “costumers”?
 Marketing of education can evoke feelings of concern and even mistrust.
 How about problem of survival?
NO!
Introduction
Marketing Mix
Conclusions
Debates
YES!

Introduction
Marketing Mix
Conclusions
Kotler & Fox
In mid-80’s Kotler and Fox identified three groups of educational administrators
relative to marketing:
1) those doing little or nothing
2) those printing catalogs and doing
some limited media advertising
3) a small, but growing, number who
have taken a genuine marketing response
Photo: Professor Philip Kotler talks with two executive students in 1976

 Money
 Producers
 Consumers
 National and global markets
 Tuition (Kotler & Fox, 1995)
 Teachers
 Students Marginson (1997)
 Educational systems
In business In higher education
Introduction
Marketing Mix
Conclusions
Comparison of business and higher education
* Kirp (2003)

 Pasternak (2005) argues that, in
contemporary societies, HE is being marketed
just like any other product or service.
 A student’s decision to acquire advanced
knowledge is the culmination of weighing cost
against benefits, and this is similar to the
process applied when a customer selects a
product or service.
 Maringe (2006) states that introducing fees
into HE has resulted in greater ‘consumerist
behaviour’ by applicants.
Introduction
Marketing Mix
Conclusions
Marketing Mix
Value

 Competitive market conditions, time and pressure on HEIs were
driving the administrator to find solutions to problem of survival.
 The administrator were facing a dilemma whether to accept non-
qualified applicants or to suffer the effects of declining enrollment.
 Institutions emerged with multiple new directions: developing
remedial programs aimed at raising the academic level; focusing on
enrollment management; performing market research to identify new
applicants
 and looking at the applicability of the four P's (product, price, place,
promotion) of the marketing mix to education.
Introduction
Marketing Mix
Conclusions
Marketing Mix
Emergence of marketing into higher education

American Marketing Association
(AMA) defines:
“Marketing is the activity,
set of institutions, and
processes for creating,
communicating,
delivering, and exchanging
offerings that have value
for customers, clients,
partners, and society at
large.”
(Approved July 2013)
Introduction
Marketing Mix
Conclusions
Marketing Mix
Definition of Marketing

“Marketing is the analysis, planing,
implementation and control of
carefully formulated programs
designed to bring about voluntary
exchanges of values with target
markets to achieve institutional
objectives.
Marketing involves designing the
institution’s offerings to meet the
target markets’ needs and desires,
and using effective pricing,
communication and distribution to
inform, motivate, and service these
markets”
(Kotler and Fox, 1995)
Introduction
Marketing Mix
Conclusions
Marketing Mix
Definition of marketing of higher education

Introduction
Marketing Mix
Conclusions
Marketing Mix
University Stakeholders
 According to Kotler and Fox (1995), university stakeholders
can be classified into sixteen major publics:
current students prospective students faculty
parents of students administration and staff alumni
suppliers competitors government agencies
business community mass media foundations
trustees accreditation organizations
local community general public

Introduction
Marketing Mix
Conclusions
Marketing Mix
Kotler and Fox Marketing Mix Model
 Marketing-mix theory has four major components: product,
price, place and promotion (4P’s)
 Kotler and Fox (1995) adapted the marketing-mix model in an
educational context, by including additional elements, proposing
a set of seven marketing tools: programme, price, place,
promotion, processes, physical facilities, and
people (7P’s)

Introduction
Marketing Mix
Conclusions
Marketing Mix
7P’s and 7C’s
Photo: Professor Kotler (85) delivers a lecture in Romania, 2012

Educational institutions should use different
communication techniques to reach a specific target
audience which are usually classified into four major
categories: advertising, sales promotion, public
relations and personal selling (Philip, 2012)
Since the key publics are the younger generations (and
their relatives), higher education institutions should
perform marketing with the latest trends and should be
global players (Ozbal & Konakli, 2015)
Introduction
Marketing Mix
Conclusions
Techniques

• Website
• Social Media
• Word of Mouth
Introduction
Marketing Mix
Conclusions
Channels
“The first
impression is the
most lasting”

 Since the university website creates the
first impression for the most consumers, a
HEI should have a dynamic, well organized
and user friendly website (Ozbal & Konakli, 2015).
 A HEI website should be built and
maintained by considering content
techniques and search engine
optimization (SEO) to improve web page
visibility on search engines. McCoy (2011)
Introduction
Marketing Mix
Conclusions
User Friendly Website

 Prospective students visit a university website for:
1) offered programs
2) information
3) cost
4) success of the graduates Johnson (n.d.)
 He also takes attention that no students visit a university website for
reading the mission statement or other official text.
 Johnson also offers not to be marketing oriented but to be informative
on the university/college website. (CONTENT MARKETING)
Introduction
Marketing Mix
Conclusions
User Friendly Website

 Social media provides the opportunity to humanize
stories of students and alumni, which can create
loyalty and earn future students and ultimately their
respect. Solis & Carroll (2008)
 The emergence of social media caused decentralized
communication and has created a need for additional
guidance to the communicators (Fuchs, 2010).
Introduction
Marketing Mix
Conclusions
Social Media

 Emotional attachment of students is a key factor for a
higher education institutions.
 A university can enjoy the advantage of the ‘word of
mouth’ marketing if the students are satisfied and
emotionally attached to the institution. (Ozbal & Konakli, 2015)
 There is an agreement on that positive word of mouth
communication creates a competitive advantage to
higher education institutions’ favorable image.
 Ivy (2001), Beerli Palacio, Díaz Meneses, & Pérez Pérez (2002), Brown Barry,
Dacin, & Gunst (n.d.), Ladhari (2007), Matos & Rossi (2008)
Introduction
Marketing Mix
Conclusions
Word of Mouth

Introduction
Marketing Mix
Conclusions
Conclusions
• Competition is a fact.
• Decline of
demographic values is
another fact
• Marketing matters in
all sectors as well as
in higher education

Thanks for your attentions!
Introduction
Marketing Mix
Conclusions
Conclusions
Mobile apps
Story telling
Data mining

A Literature Review to Marketing of Higher Education

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