Higher Education Marketing Mix
CHAPTER 3
MARKETING’S ROLE IN HIGHER EDUCATION
3.1
INTRODUCTION
Chapter 2 introduced some of the major changes and trends that have taken place in the higher education environment both internationally and locally. Although higher education institutions can be classified as non-profit organisations, the challenges discussed in Chapter 2 necessitate higher education institutions to take on the organisation-like behaviour of profit organisations and to become more marketingoriented. An understanding of the environment in which higher education institutions operate, provides an essential background against which to understand and assess the benefits of focusing on students as customers. If higher education institutions understand the landscape in which they operate, they can begin to plan to serve the market effectively and efficiently with their marketing strategy. Being marketingoriented requires that organisations have knowledge on external forces (as explained in Chapter 2), but also knowledge on customers’ needs and wants (to be addressed in
Chapter 4).
It is against this backdrop of changes in the environment, such as the decrease in government funding and the increase in competition, that the need for marketing in higher education can be seen. In order to survive and to develop a sustainable competitive advantage in a changing higher education landscape, higher education institutions should satisfy the needs of their customers by adding value. Institutions should provide more benefits to their customers than competitors if they want to stay competitive. In the competitive environment in which higher education institutions operate (refer to Chapter 2), enhanced customer satisfaction may be one of the ways in which institutions can create and sustain a competitive advantage. This can be achieved with the effective application of the marketing mix elements. Marketing, and more specific a market-orientation, can provide a detailed understanding of the needs
of
MARKETING’S ROLE IN HIGHER EDUCATION
3.1
INTRODUCTION
Chapter 2 introduced some of the major changes and trends that have taken place in the higher education environment both internationally and locally. Although higher education institutions can be classified as non-profit organisations, the challenges discussed in Chapter 2 necessitate higher education institutions to take on the organisation-like behaviour of profit organisations and to become more marketingoriented. An understanding of the environment in which higher education institutions operate, provides an essential background against which to understand and assess the benefits of focusing on students as customers. If higher education institutions understand the landscape in which they operate, they can begin to plan to serve the market effectively and efficiently with their marketing strategy. Being marketingoriented requires that organisations have knowledge on external forces (as explained in Chapter 2), but also knowledge on customers’ needs and wants (to be addressed in
Chapter 4).
It is against this backdrop of changes in the environment, such as the decrease in government funding and the increase in competition, that the need for marketing in higher education can be seen. In order to survive and to develop a sustainable competitive advantage in a changing higher education landscape, higher education institutions should satisfy the needs of their customers by adding value. Institutions should provide more benefits to their customers than competitors if they want to stay competitive. In the competitive environment in which higher education institutions operate (refer to Chapter 2), enhanced customer satisfaction may be one of the ways in which institutions can create and sustain a competitive advantage. This can be achieved with the effective application of the marketing mix elements. Marketing, and more specific a market-orientation, can provide a detailed understanding of the needs
of