31
MARKETING HIGHER EDUCATION: THE MBA EXPERIENCE
Introduction
Hebron[1] has argued for a marketing approach in higher
education; otherwise there has been relatively little
published research outside the USA on the marketing
aspects of activity in educational institutions, including
those offering Master of Business Administration
degrees (MBAs). This seems strange in view of the
increasing competition among them as providers of
services and the importance of some of the issues to the
health and even survival of some of these institutions in
the present climate. For example:
●
How far are educational institutions really
“customer-oriented”?
●
Do they choose the most appropriate market
segments for their organization’s strengths?
●
Is there consistency between the segments
targeted and their product offerings?
●
How far are they aware of the complexities of the
decision processes of the “buyers”?
●
Is it appropriate for educational institutions to
become “marketing-oriented”?
In this article we explore some of the above marketing
issues in higher education in the context of MBA degrees,
the main source of fee income for most business and
management schools in UK higher education.
Viewed in terms of the product life cycle, the launch of
MBAs in the UK took place in the 1960s, growth occurred
in the 1970s and particularly 1980s, and the 1990s have
probably seen the arrival of the maturity stage. Indeed, it
is generally agreed that there has been a 10-15 per cent
dip in demand associated with the recession: most
business schools state that they expect moderate growth
to resume as the recession ends.
According to Kempner[2], all MBA courses have the same
objectives: “to develop managers who will run efficient,
profitable enterprises in a competitive world for the
creation of wealth in society”. Whether or not the
objectives are the same – and some would question the
profit aspect – MBA courses and their methods of
delivery now differ enormously. There are one-year and
two-year degrees, full-time and part-time degrees,
campus-based versus distance learning MBAs,
“consortium MBAs” with foundation companies, single
company programmes and others, including action
learning approaches.
In the early 1980s it was estimated that there were 28
institutions in the UK offering MBA degrees, mainly the
members of the Conference of University Management
Schools (now renamed the Association of Business
Schools (ABS)). Professor David Ashton, chairman of the
ABS, has stated[3] that there are now 92 institutions
offering these courses. They include business schools,
university schools of management and other educational
establishments, with private sector providers becoming
increasingly involved. Competition is fierce; operating
margins are expected to decline and some organizations
are likely to be forced to drop out of the market, or at least
to drop some of their courses.
As Which MBA?[4] points out, it is difficult to define
exactly what constitutes an MBA degree because of the
variety of product offerings. In the early 1980s it was
likely that the market did not perceive the differentiation
in offerings. Clearly, however, as the market has matured,
the typical customer appears to have become more
knowledgeable and discriminating. For example, Beard[5]
shows that there is a clear awareness of the main modes
of study, issues of content, and the reputation of the MBA
providers among those entering MBA degrees.
Almost all organizations offering MBA degrees
necessarily have management expertise and most have
marketing expertise, since these subjects are taught on
their courses. It is somewhat ironic that some of the
current market offerings appear to suggest that their
organizations have made insufficient use of their own
internal marketing resources. Moreover, there appears to
Marketing higher education: the
MBA experience
John Nicholls, John Harris, Eleanor Morgan, Ken Clarke and David Sims
Business schools should improve their marketing or stand accused of not practising what they preach
International Journal of Educational Management, Vol. 9 No. 2, 1995, pp. 31-38
© MCB University Press Limited, 0951-354X