Marketing of Educational

Services

By Shivanshu Gupta-UM11910

Shubham Puri UM11411

Education

Education in its broadest sense is any act

or experience that has a formative effect on

the mind, character, or physical ability of

an individual.

Education is the process by which society

deliberately transmits its accumulated

knowledge, skills and values from one

generation to another through institutions.

Need for Marketing

Educational services

Need to “market” their services has not

really been felt by the educational

sector

This is because there is always

Demand>Supply

But in the recent years, there is a shift

in trends

Need for Marketing

Educational services (1)

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 in

competition

Need for Marketing

Educational services(2)

This makes them come face to face

with questions like Product differentiation,

product extension,

diversification

and service integration

Education as a service

Services are those separately

identifiable, essentially intangible

activities, which provide want

satisfaction and are not necessarily

tied to the sale of product another

service

Education as a service(1)

Education as a service can be said to

be providing an intangible benefit (Increment in knowledge, aptitude, professional

expertise, skill) produced with the help of

a set of tangible (infrastructure), and

intangible (faculty expertise and

learning ) aids

:::Points to be noted:::

A consumer may have tangible

physical evidence to show for the

service exchange transaction

But the actual benefit accrued is purely

intangible in nature

Education is a service which is geared

primarily to the consumer market

Characteristics:-

:::INTANGIBILITY:::

Education is an Intangible dominant

service—Impossible to touch, see or feel

:::Standardization is difficult::: Lack of Standardization opens up marketing

opportunity of differentiated need based course

packages

Education as a service cannot be patented

:::Perishability:::

Production and consumption are

simultaneous activities

No inventories can be made up

Eg:- A lecture scheduled cannot be

stored

:::Inseparability:::

It is impossible to separate a service from

the provider

There is a need for the service provider to

be present when the service is to be

performed and consumed

This limits the scale of operations—The

number of providers available would define

the number of simultaneous performances

possible

:::Other Characteristics:::

High Fixed cost, Low Variable Cost

Specialized and need based

Competition

Customer limitations

Lack of ownership

Heterogeneity

Marketing Strategies

::::Before Deciding on the Marketing Mix,

Educational Institutes should answer

certain basic Questions::::

What Business are we in?

Who are our customers and What

benefits they seek?

Criteria that students apply:- Reputation of the institute

Number of applicants keen to enroll in the

course

Past success rate of placement

Faculty expertise

Width of specialization offered

Infrastructural facilities

Fees

How can we build or defend our

competitive position?

What is our entry strategy?

How should we offer new service

offers that help/strengthen the

competitive position?

:::Marketing Mix:::

MARKETING MIX

ELEMENTARY EDUCATION

SECONDARY EDUCATION

VOCATIONAL EDUCATION

HIGHER EDUCATION

:::Marketing Mix:::

Marketing

MIX

Product Price Place Process Physical

Evidence Promotion

Product

Range-

Quality Level-

Brand Name-

Post Transactional Service-

Price

Level

Discounts (Scholarships)

Allowances

Commissions

Payment Terms

Consumers percived value

Quality/price relationship

Place

Location

Accessibility

Distribution Channels

Distribution Coverage

Promotion

Advertising

Personal selling

Sales promotion

Publicity

Public relations

People

Personnel

Training

Commitment

Incentives

Attitudes

Degree of involvement

Customer contact

Physical evidence

Environment

Furnishings

Layout

Noise levels

Facilitating goods

Process

Polices

Procedures

Mechanism

Employee discretion

Customer involvement

Flow of activities

:::Current Trends:::

The RDAS Approach—

The Relating, Discovering, Advocating,

and Supporting (RDAS) Notion of concept selling is applied to the marketing

of products and services

The four RDAS categories are further divided

into 12 sequential and interdependent tasks:

I. Client Identification

II. Fact Finding

III. Planning;

IV. Establishing Credibility V. Targeted Research;

VI. Focused Planning;

VII. Problem Analysis and Agreement;

VIII. Planning the Presentation;

IX. Presenting;

X. Facilitating the Decision;

XI. Achieving Closure;

XII. and Rediscovering.

Rationale, practical suggestions,

and examples related to marketing

task accomplishment are presented

within the discussion under each major

heading.

This 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.

:::Thank you:::