Marketing planning for colleges and universities

104

Long Kange Planning, Vol. 17, No. 6. pp. 104 I’rintcd in Great Britain

to

0021 0301/x3 Y.?.rlo+ .O(J I’crgntnott Press Ltd.

117, 19H3

Marketing Planning and Universities

for Colleges

Lois R. Smitll, University of Wiscclnsin-Wlaitewutev, Wisconsin, and S. Tarnev Cavusgil, Bradley University, Illinois, U.S.A.

History proves that institutions of higher education have been notoriously slow in adapting to changes in their environments, especially in their student-markets’needs. It is time for them to employ the techniques of strategic marketing planning used by the business sector. With adjustments made for their nonprofit nature and without comprising their cultural responsibilities, institutions of higher education could clearly better serve their students, benefactors, and communities by developing an ongoing system of environmental analysis and by acting on the insight they gain. This article demonstrates how institutions of higher education can implement strategic marketing planning. Frequent references are made to actual situations.

Enrollments and Financial Higher Education

Aid for

The worlds of academia and business rarely harmonize in their philosophies or their tactics, but they have been discovering a.grccment in one area in the last several years-that many insitutions of higher learning are in trouble, and that some of them just might be able to bcncfit from marketers’ expertise. The ‘trouble’ for these colleges and universities is that enrollments are declining, especially in private colleges, and reduced numbers of students result in pinched budgets, a problem exacerbated by reductions in governmental and private support.

It took institutions of higher education in the United States several years of declining enrollments to realize the alarming extent of their difficulties. After the boom years of the 1960s and early 197Os, administrators exuded the glow of good fortune and saw only bright futures. That phenomenon is

Lois R. Smith is a lecturer in marketing at the University of WisconsinWhitewater and Tamer Cavusgil is Professor of Marketing at Bradley University, Peoria, Illinois 61625, U.S.A.

U.S.A.

not surprising as from 1957 to 1960, college enrollments in the United States increased at an average rate of 7.5 per cent annually. Then the increases slowed to 4.5 per cent yearly from 1971 to 1974 when peak numbers of students were registered on college campuses. By the mid-197Os, the problems began with decreases in nontuitional funding, including reductions in money allocated to the institutions by state legislatures and by the federal government. Other donors such as businesses, foundations and individuals also reduced their contributions. After a few years of trying to ignore the trend, the scramble to cut programs, faculty and staff to survive the lesser availability of dollars began.’ Student enrollment figures did not begin to look really distressing in the United States until the late 1970s. In fact, for the decade from 1970 to 1980, total enrollments in institutions of higher education increased by 39 per cent. These increases came especially from part time students and from women, with most of the growth occurring in public rather than private institutions. Much smaller increases were recorded for full time students and men. In 1980 women accounted for 52 per cent of higher education’s enrollments, and in number. More students over age 25 doubled blacks and Hispanics also attended colleges than they had previous to this decade.’ The Carnegie Commission projects the decade of 1980 to 1990 as a bleak one for higher education. It predicts enrollment declines of a total of 7.8 per and it would seem that considering the cent,3 reduction in the number of traditional college-age Americans, the projections are appropriate. The number of students in the United States entering the traditional college-age category will be increasing markedly from 1990 to 2000 (see Figure 1). However, just because a particular college is able to weather the difficult years does not guarantee

loans will be another major factor in the survival of many educational institutions in the United States. The National Institute of Independent Colleges and Universities has said that the uncertainty about the availability of student aid clearly affected freshmen enrollments in 1981, and that if the trend of uncertainty and declining amounts of aid continues, private colleges will be in trouble as a group. From the fall of 1980 to 3981, freshmen classes at private colleges and universities dropped by 2 per cent, submitted by 634 private according to data institutions. Enrollments of freshmen in the north central states decreased 4.6 per cent with a total enrollment decline in this region of 0.2 per cent.’ These statistics show the effects of both student financial aid problems and regional relocation, and thus the ,decline in the Midwest and in private colleges appears to be occurring at a much faster rate than that which the Carnegie Commission predicted. The Wall StreetJournal predicts that private colleges of fewer than 800 students are doomed. About onethird of the total of 1250 private, nonprofit colleges and universities fall into this enrollment category.” Small schools arc especially vulnerable because they are not prestigious and do not have large endowments. These small, private colleges have recently been attracting studenfs from lower income families through government aid programs of grants and loans, but even with this help, public institutions can undercut a student’s costs by approximately S3000.

18-24 age group which opts for higher education) or the universities attract a new clientele, there are unlikely to be enough students to go around tojustify preserving higher education at its present level.’ Furthermore, tenure policies will prevent the hiring of new faculty, thus slowing any attempt at rejuvenation of programs. England too is facing a drop in birthrate. It is predicted that by the 1990s some institutions of higher education will have to close unless the student participation rate increases.8 Tuition Levels The cost of higher education and the amount government aid available in the form of grants

of and

Kotler projects that inflation will make the cost of tuition in the United States impossibly high; so high, in fact, th a t a child born in 1979 would have to pay $82,830 to buy an undergraduate degree at one of the better private colleges with the present rate of inflation continuing.” Because economic considerations are so important to students’ there is a definite danger that private colleges will lose out to public ones, and society will lose some of its excellence and diversity in higher education as a result of losing private schools such as the traditionally black institutions which are currently in difficult circumstances.12 Private colleges also serve the needs of those students who are seeking small classes and more teacher-student interaction, and it is this group of small colleges that are in the most dangerous position.13 If one studies only the statistics presented thus far, it seems that private-and especially small, privatecolleges could just as well close their doors now rather than prolong the agony of declining enrollments, increasing tuition, and decreasing student financial aid. Most of these statistics, however, deal with the traditional college-age students, and there might be some hope available through seeing college students in a broader way such as discovering the growing number of parttime students and meeting their differing needs.

Long

Range

Planning

Vol.

17

December

When all institutions of higher education in the United States are lumped together, the proportion of part-time students increased from 31 per cent in 1966 to 41 per cent in 1978 (see Figure 2). Private institutions, though, left this population largely untapped with only a 2 per cent part-time enrollment increase.14 This kind of lack of concern, or of awareness, or maybe even of willingness to accommodate the needs of the nontraditional student, may truly be the deciding factor between failure and endurance or even of success for institutions of higher education through the student drought of the 1980s. This time must most certainly be a period of rethinking and then of acting without the usual lethargy so typical of educational institutions. 7711~&&~_f&, Altcvnativrs Colleges tend to view this enrollment decline as a new phenomenon, but history shows that the trend upward higher educational enrollments has not been a steady one. Several temporary downturns occurred such as those during the Depression, during World War II, and during the 1950s. Administrators must determine at this point whether the ceiling has been reached in higher education enrollments or whether just a pause is experts are suggesting that occurring.’ ’ Many

Full-Time

All Institutions

;:

Part-Time

75%

50%

25%

0

25%

50%

75%

I

I

I

I

I

I

I

:~y3z%

1984

college planners need to think more terms of who a student can be.

creatively

in

Strategic marketing planning is one way to generate new alternatives, and educational institutions would not be alone in turning to business ideas for help. Many institutions such as banks, libraries, museums and hospitals that at one time did not use marketing techniques have come to find them useful. Bowen proposes that educational organizations go through the same kind of rethinking that those other institutions, both profit and nonprofit, have undcrgone.16 Colleges must not hunt exclusively for traditional students for the programs that they have offered historically, but they must seek new types of students for new types of programs. The demand for higher education is not independent of the supply. I)cmand can depend on the kinds of institutions available, on the convenience of times and places, on tuition charges and finalIcia aid, and on work rclcasc time from employers. Demand is highly flexible and expansible depending on the kind of education offered and the terms on which it is available. the current problem more Litten addresses specifically.” To survive the probable 15 years of declining enrollments, higher education will need to create for itself new markets to employ its surpluses in personnel and in physical resources. Many faculty will surely have to enter nonacademic roles, but some will be involved in teaching new types of students who might be older adults with needs for flexible schedules and child care services. Kotlcr feels that the education industry has been unresponsive to its potential markets. It has left demands unsupplied. It has tried to sell products that were not wanted.‘”

Private institutions

ii

A Look Forward: Strategic Marketing Planning for Higher Education

zzzzZh

Public Institutions

I;z

z;*zk%

Public 4-Year institutions

1;;:

77i-~2h

Public Z-Year Institutions

,;g

52:F:;3%

Figure 2. Distribution of full-time and part-time students at U.S. institutions of higher education

Now that higher education has been thoroughly chastized for blind-folding itself and for having its feet firmly planted in marble while the rest of the world kept moving, it has learned that it must act, or it will continue to erode away until only large, publicly supported institutions remain. It is even willing to peek at the offerings of strategic marketing planning, but first it must discover what marketing in the context of higher education is and is not. Markctitzg is Plot . . when mentioned around The word ‘marketing’, college faculty, especially when it might be used in their institutions disgust. ImlTledlarc~ings looks of horror and 1 they assume that jingles, television cameras an; faddish courses will appear, and with the gimmicks will come lowered

Marketing standards and loss of academic integrity and mission. When true marketing planning occurs, however, such is not the case. Littcn feels that effective marketing can even entail less advertising and selling in that the messages about services may bc delivered more efficiently in ways other than Selling entails gaining favorable advertising.” attention and telling about benefits, while strategic marketing planning involves more research into the identification and image of current programs, the finding of new markets, the matching of needs and the adjusting of offerings and the resources, evaluating of actions.” Too much selling and aggressive promotion of academic programs can even work to the detriment of the institution in that serious students’ sensibilities may be offended and ‘wrong’ types of students may be attracted, students who would drop out when they discovered that the college was not what they thought. Administrators must exercise care not to get so involved in promotions that the research and product improvement aspects of marketing are forgotten.21 Mavkrtir/cq is . . , Kotler gives a general definition of marketing relates to all three sectors: profit, nonprofit government. Marketing

is

achieving

desired

a

systematic exchange

approach relations

to with

as it and

planning other

and

groups.Z2

The words ‘planning’ and ‘achieving’ are key ideas for educators. Traditionally, colleges have just ‘offered’, generally without formalized planning techniques and without much advanced study about students’ needs and wants. ‘Achieving’ would seem to indicate concrete, objective goals, possibly for programs, students or donations. If the achievement did not materialize, the plans would need to be more carefully reformulated. Strategic marketing planning is concerned with development and with maintenance, and here again higher education has been so busy maintaining that the developing side has been ignored or hastily planned.

How Mavketirzg of Higher Educatim is Di&erzt III the case of higher education, the exchange process is more complex than the simple productmoney exchange between businesses and their customers. Colleges have two markets in which they perform exchanges. The product of education is exchanged for money with the clients or students, but the students do not pay enough to cover the actual cost, so another exchange between donors and colleges must occur. The donors receive tenuous ‘positive feelings’ for their contributions. Numerous other differences between business and nonbusiness products exist in addition to the multiple-exchange processes. There is a marked difference between the frequency of purchases, as college educations for the most part are purchased

Planning

for Colleges

and

Universities

107

only once in a lifetime from one college. Colleges are selling highly intangible products with many costs other than money. The college student pays greatly in terms of time, loss of other potential income, psychic costs, and inconvenience costs. A college education obviously calls for an extreme level of involvement from its consumer. For a college to complete its exchange with its clients successfully, it must demand both monetary and nonmonetary sacrifices. Marketing should help to clarify the college’s demands to its students, and the more successful it is in explaining its requirements, the greater will be its success with those students who do enroll.

Step One: Image and Mission Analysis Historically, the mission of many American and European colleges was to provide a broad and liberal education rich in cultural heritage studies and without any tangible occupational goals. In the United States, students are seeking college curricula with very practical and obvious job results, leaving these liberal arts institutions begging for students. In Germany, the opposite trends seems to be occurring, with engineering institutions lacking students and liberal arts and humanities thriving. The process for dealing with these opposite problems is the same-strategic marketing planning (see Figure 3). The first step is the

Analysing the Institution’s Image and Mission I

I

I by Departments or Colleges and by Functions

Students---

Product Distrib”tion

-1

-----___

---Donors

+I

-plor,‘l, I

I

t Implementing the Final Strategic Marketing Plan

ill

Routinely

Returning and Beginning Once Again

Figure 3. Steps in the strategic marketing planning for colleges and universities

c

Long dctcrniination mission or valid and viewed by the same as

Range

Planning

Vol.

17

December

of what an institution has as its purpose, whether that mission is still useful, and of how the institution is its various publics. Is the stated mission what others see as its mission or image?

Strategic Inarketing planning must be approached with the idea that it is a dynamic process rather than a set of fixed acts or’ engineered methods of increasing enrollments.23 Its final goals for colleges, according to Littcn, arc recognition and prestige, because with this image the institution will be able to be selective in admitting students, and it will be successful in getting donors and grants.24 One should note that in order for a college to gain a prestigious reputation, a sound academic program with satisfied students and alumni nlust be established first. This process of image-changing through marketing planning will take time, careful curriculum planning, and possibly even sonic mission adjustments.

1984

the general public such as students’ parents who are indirect consumers. With so many publics to study, the task force has no easy job, but the result of its research will determine what the work of the college will bF. Individual task forces for each public might be assigned to save time, but no matter how the im&e research is handled, it needs to be accomplished in a reasonable time frame so that the other studies can proceed, and it must be objective. Translating the results of the image study into action and realistic objcctivcs will be handled after the discrepancy between the college’s hoped-for image alld its actual image is determined. Analysis of programs and markets will be done first. Then the collcgc’s administration will be in a better position to pinpoint its strengths and weaknesses on a tangible level.

Step Two: Thus far marketing has been characterized as an activated process by which administrators of colleges and others involved with colleges can affect an image for an institution. However, images and missions arise whether active marketing plans were implemented by colleges or not, so one can say that since colleges seek customers, sell programs, price their courses, and promote them, they are employing marketing whether they know it or not. The difference between a successful or unsuccessful image could be the difference between a witting or unwitting nlarkcting process. Institutions of higher education must do extcnsivc, objective study and assessment of the current status and possible positioning alternatives for their particular college. Kotlcr suggests a number of steps that institutions should take to begin to implement a marketing program. First, he feels that a specific marketing committee should be appointed, one that represents the varied interests of the college. Nest, a task force should be given the job of determining how the institution is seen by its various key publics, a study of what the image really is, in other words. 2s A college has numerous publics or groups that have an actual or possible interest in it or impact on it. These publics come under different headings, and together they determine what image the college projects. First, there are the so-called ‘input publics’ whb are donors of time or money, suppliers of goods and and regulatory agencies. The ‘internal services, publics’ of trustees, faculty and staff also need to be studied to determine their attitudes toward and suggestions for the institution. Another public, the includes mass media or high school agents, counsellors, the means to get the message to the clients who are obviously the students themselves but are also busincsscs who hire graduates from the school. The task force has the further duty to study

Unit

Analysis

A study of separate strategic business units would be the second major task in a profit-oriented organization, and the concept of a strategic unit must be translated by each institution separately. For large universities, separate colleges might be considered as ‘units’; for small schools, individual majors might be units. Functional departments such as financial aids, admissions, placement or maintenance need to be assessed as units as well. Research into staff, costs, program enrollments and a number of other areas determined to be important to a particular unit will need to be conducted. Some weaknesses and strengths may already have been determined from the earlier image research, and any glaring inefficiency should appear through careful study. Checking programs in terms of enrollments is an easy way to measure success, but some programs may contribute substantially to an instieution’s image without attracting great numbers of students. Analysis should be done with a sensitivity to important points. subtle but Administrators will need to decide whether this analysis should be conducted by the units themselves, by outside consultants, or by the appointed task force or committee. Since the definition of what determines a strategic unit will be so widely varying among institutions, any discussion of unit analysis must be general. However, the study of an institution’s ‘product’ markets can be more directive.

Step Three:

Market

Analysis

Student Markets Institutions of higher education have been notorious for ignoring shifts in their markets, as proved by history, but one must admit that a college’s exchange with its market is more complex than the simple product-money exchange between busi-

Marketing nesses and their customers. Colleges have two markets in which they perform exchanges. The product of education is exchanged for money with the clients or students, but the students do not pay enough to cover the actual cost, so another exchange between donors and colleges must occur. The donors receive tenuous ‘positive feelings’ for their contributions.26 A college’s image is of tremendous importance students and in soliciting both in attracting donations, and when the image and strategic unit research is taking place, another type of study-a determination of the needs of the potential students, what they are seeking in a college-should be conducted. Higher education has been accused for being too product-oriented when it should focus more on its markets, both students and donors. Businesses are well aware of the marketing concept which basically states: We’re not the boss, the consumer is. What the consumc’r wants, the consumer gets. Under the marketing concept, the consumer is at the top of the organization chart.”

A good place to start would probably be with current students, then shifting to the communities from which the college draws most of its students to see if there are potential, untapped students whose needs the college could serve. Krachenberg points out that finding the needs of the various distinct markets is itself not enough, but the colleges must also discover their ‘wants’, their sizes, and how they are changing.28 For instance, a college might locate a group of people who arc working fLll1 time and fleed computer science courses for their jobs. Their rzeeds would be evening or weekend courses, but they might ~lufzt child care facilities, ten-week terms rather than semesters, courses of limited student size, access to a career counsellor, or a myriad of other offerings. Fulfilling some of the ‘wants’ along with the ‘needs’ could improve the offering’s potential success. Determining student needs and wants is not a simple case of interviewing current and potential students as it might be for a regular product. Many times students and community members do not know what they really want or need, partly because they are baffled by the complexity of the product that higher education is selling and because the consequences of changes made to suit students’ wants may have unanticipated results. Fram tells a story of a study of students at a college concerning what they wanted in a new dormitory. They generally suggested that the building have larger lounges and smaller rooms to accommodate the lounge size. When the dormitory was built, students did not use the lounges very much, and the small size of the rooms led to a decline in student morale. Fram suggests that surface opinions should be questioned and either supported or refuted by a study of living styles.29 Adding to the difficulty of

Planning

for Colleges

and

Universities

109

studying students is the problem that students as consumers of education are often unstable and immature; however, they are making an investmcnt decision that is major and long-term. The benefits which they will derive from this purchase are directly proportional to their personal effort and motivation. Some potential students, however, may not have these immaturity problems because they arc adults. Colleges need to widen their view of what constitutes a student market. When observers refer to the ‘nontraditional student’, they are almost always referring to adults who are over age 25. Colleges have been slow moving institutions historically, but when they are faced with extinction, they become less lethargic and more creative. The ‘new’ idea is ‘adults’. In fact, more adults are on college campuses now than have ever been before, with some colleges having over 40 per cent of their enrollments being adults. Some colleges arc clearly hoping that adults uTil1 offset the decline in traditional enrollments.“” adults on campus is important Having more because of the revenue they contribute, but there are other benefits to be gained from having older students in classes. Colleges with noticeable adult cnrollmcnts have reported a more mature atmosphere, increased evening enrollments, which were traditionally light, and livelier class discussions due to the experience that adults could bring to academics. There is disagreement about whether adults in the United States will continue to attend colleges as they are now. Three trends would support the notion ofcontinuing adult registrations in colleges. First, leisure time is increasing. Next, more jobs are requiring continuing education, and last, women are rechtcring the job market or are entering it for the fn-st time. Donor Markets Shapiro describes nonprofit transactions as attracting resources from donors and allocating those resources to clients.31 There arc two distinct groups of ‘consumers’ with whom to deal, and to be successful, the institution must satisfy both. Shapiro goes even further in declaring that the donor exchange is of greater importance than is the client cxchangc. The financial viability of the organization depends on resource attraction rather than on resource allocation; thus poor servicing of clients does not ensure financial doom. In the case of benevolent organizations such as the March ofDimes or UNICEF, Shapiro’s point about the ultimate importance being with the donor is certainly true. However, in the case of private colleges, the student is at least paying for a portion of the cost of his or her education, sometimes for a very large portion; the donor in this case must be seen as of equal importance but not of more importance. Without both exchanges being suc-

110

Long

Range

ccssfully completed, the either fails, the college makes private colleges nonprofit organizations will eventually become

Planning

Vol.

17

December

19X4

college cam?ot continue. If fails. Another aspect that different from many other is that their client publics their donor publics.

Colleges’ problems with insufficient funds are relatively new phcnomena.32 Traditionally, colleges were not forced to be so efficient with their funds or with methods of fund raising. They had enough money to allow for some waste. Now they need to do careful research and planning to keep going. Shapiro suggests that attracting funds for nonprofit organizations entails the LISC of all marketing’s basic clcments.33 The first job is to segment the donor market just as the student market was segmented. Then fund raisers can make appeals based on what particular donor segments want and need. The emphasis is consistently on providing the donor with a reason for giving and on making it easy for him or her to give.

0I D 0 n 11

0

))

0

))

))

Step Four: Positioning As has already been shown, during the analysis of the target markets for students and donors, numerous strategies for dealing effectively with markets will surely arise. The more those alternatives that the institution can generate, the more potential there will be for full responsivcncss to the markets. Once again, the ideas of image and mission will become important. If the image of the institution in the eyes of its markets is less than ideal, or if the mission of the organization is outdated for the markets’ needs, or if the mission is the same as every other organization, changes-repositioning-must be accomplished. Image is a nebulous term, and trying to improve a college’s image after it has been tarnished may entail numerous different tactics including possibly a new focus for public relations, new course offerings, elimination of weak course offerings, more student participation, cleaning of the grounds, encouraging public involvement in campus activities, a faculty lounge, the list could go on endlessly (see Figure 4).

))

))

Guidance

0

0

A relatively obvious and logical initial grouping of potential donors, who most often are alumni, is into three groups: those who give regularly, those who have the same characteristics as those who give, and those who do not have characteristics similar to those who give. A sampling of alumni could help to get descriptive and demographic information about them. Those who are most generous could be studied most carefully for their attributes. Finding reasons that they contribute could help focus promotions on those college attributes. Locating unfulfilled needs could also help to adjust promotions to the expectations of those who are presently not contributing.

Alumni

))

0

1

Students

)I

Counselors

))

)) Potential

Adult

Students

High School Seniors

Figure 4. These groups and others determine the image of a university

combine

to

The next step for the marketing process may be to hire a professional marketing consultant and other individual specialists such as research firms or advertising agencies as their expertise is needcd.34 It seems that in the traditional academic rivalry between administrations and faculties, a marketing consultant from the ‘outside’ would not be seen as siding with either group and thus might elicit better cooperation from both groups. These experts can help to determine where limited resources can best be used to change positioning in the areas needed, and with the help of consultants, the should be able to determine its institution immediate and long-term goals and objectives. A marketing director or vice president may then be hired to perform a number of tasks such as compiling needed data, conducting continuing studies, assisting in planning promotions, developing a communications system, advising appropriate people concerning student satisfaction, recruitment and fund raising. It is important that a person have the sole job of handling marketing, because otherwise there would be a tendency for an adult to be conducted once and then considered ‘done’. It cannot be stressed enough that marketing, to be successful, must be a continuing process. Institutions, publics, students, all are changing and need constant monitoring. The institution must adjust and readjust to meet the changing needs of its changing internal and cxtcrnal environments.

Marketing To some institutions, the acceptance of the publics’ well might not change current practices and positioning to a very great extent, but to others, it might mean a basic altering of offerings that have not changed for some years because of a lack of responsiveness to the environment. Many private colleges may have to undergo extensive program changes because they have reached a state of ‘faltering demand’. This faltering demand is characterized by a smaller demand than was previously known and by an expected further decline without remedial marketing efforts. The challenge posed by faltering demand is remarketing or starting a new life cycle for the college; a rejuvenation brought about by the analysis of donors, programs and promotions. students, Emphasis should be put on analysis first because trying to promote a’ bad product will only accelerate its demise. Responding to the student will, in many ways, also be responding to the donor market because students move into the donor category each year. In the generation of alternatives for target markets, colleges need to be more creative both in defining the term ‘student’ broadly enough to consider nontraditional ways. One option that some colleges have found successful in this area can be aimed at the It is cooperative education. younger student. North-eastern University has the country’s largest cooperative education program. In this program, students either work part time in jobs related to their majors or else they alternate working full time with going to school full time. This type of offering allows lower income students to attend college, but it also gives all of its students better job possibilities because they have experience as they graduate. The average student earns between $3000 and $6000 per year and takes 5 years to complete the degree.35

Step Five:

The

Marketing

Mix

Product Strategy For colleges, the product is an intangible combination staffing, of academic offerings, educational philosophy, social offerings and ‘quality’ of student life. 36 Each and every institution of higher education is offering a unique product. A college’s product is so complex as to be impossible to pin down entirely objectively. The portions of the product that make it difficult to study are involved in Litten’s definition which says that colleges’ products ‘. . . include the preservation and creation of sophisticated knowledge and skills and values that permit these functions to occur.‘37 The college can find out which skills students need and seek to supply an opportunity for them to learn those skills, but in the matter of values and social criticism, the college must look to the careful hiring of administration, faculty and staff and the preservation of academic integrity. The product that the college is exchanging for donors’

Planning

for Colleges

and

Universities

111

contributions is even more difficult to study and adjust. These products are elusive and may include intangibles such as satisfaction, belonging and there is still a broad area of loyalty. However, over which colleges do have direct ‘product’ control and that is tangible and can be studied objectively and empirically (see Figure 5). Dormitories \

Social Activities

The Product a College

Figure

5. The

product

of

of a college

Part of the product is most obviously the course offerings at a particular institution of higher education. Universities in Canada have been grappling with the problem of their having tried to offer everything to every student. In an attempt to become ‘relevant,’ universities have been trying to appeal to the same types of students who have traditionally attended community colleges. Universities are also facing demands to increase research activities and to return to liberal arts honors programs. Each institution will have to go through a process of redefinition to determine its best product, and then it will proceed with marketing that product to its most receptive, specific audience. Ideas for adding new courses or for eliminating old ones will surely have arisen during the analysis of the student market. Numerical goals for enrollments in programs will need to be developed along with appropriate shifts in faculty. These changes in faculty will not come easily because of the effects of tenure. Canadian educators predict that there can be little room for faculty changes on an immediate basis because new faculty hiring will be halted due to declining enrollments. New policies for dealing with tenured faculty need to be established to preserve the more important goals of institutional

112

Long

Range

survival and especially needs of students.

Planning of serving

Vol. the

17

December

educational

Product includes more than courses and appropriate faculty, though. It includes living conditions, both in the community and on campus; cultural activities both on and off campus; recreation; and job placement services. There can even be flexibility within a given campus. Gorman suggests such possibilities as having a variation in dormitories, one with strict rules such as quiet hours, another with flexible rulcs.3s Other product considerations are the personnel, including faculty, staff and even the students themselves; the campus, which entails the grounds, the buildings, the equipment and the library; and the activities being pursued such as research or athletics.

When a college seeks to be creative or to maintain an image for itself that is suitable to its student and donor publics, it must adjust its entire product to suit that image. Such adjustments can surely be wrenchiiig, shaking an institution’s very foundation in some cases. A tremendous degree of cooperation and coordination must be mustered from all hierarchical levels. Such change comes about with least resistance when it is directed by a consulting firm from outside the institution or by a 11ew1y hired high-level administrator with a title such as vice president of marketing. Marketingoriented administrators should not be too optimistic because faculty will surely be suspicious of anything that might entail ‘advertising’ and they will resist any major curriculum changes.39 Administrators too need to see clearly the faculty’s point of view; they serve as a stabilizing force that may resist change but will also absolutely stop any whimsy. There is a difference, however, between being willing to show more daring and being tempted to employ hucksterism and gimmickry. Faculty will need to be convinced that serving different students with new offerings can be accomplished while still maintaining standards, ideals and honesty. It cannot be stressed enough that the complexity of a college’s product makes marketing a terribly difficult task. Businesses rely on repeat sales and brand loyalty, but for most students, one single choice is made during a relatively immature age. Also, customer satisfaction is not the only consideration and neither is the maximization of profits. Ultimately, what is sought is a transmission and exploration of cultural values. Distribution

Strategy

For most colleges, the location of courses is fixed, but a few have explored the possibility of offcampus courses, especially for adults who hold full time jobs. Four year or advanced degree programs offered at numerous sites, using excess space at other schools, hospitals, or armories are an example of an innovative approach to ‘place’. This new

1984

concept of a college’s location as not being fixed presents alternatives to the traditional, daytime only, on-campus programs. Some institutions are working with cable or public television, newspaper or radio courses. Weekend classes and direct mail courses are other alternatives being explored. There is much room for even more creative, ncedsatisfying ideas to be generated in this new frontier. Administrators will in some cases, be pleased to discover that renting space off-campus will be considerably cheaper than providing additional oncampus rooms.

The third component of the marketing mix is pricing which could include tuition, room, board and financial aid offerings. A college might ask, for instance, how price conscious its students are or how the financial aids office could communicate more effectively with potential and current students. Comparing tuition rates among competing institutions might also prove helpful. The tuition factor will become more crucial as less financial aid is available, but one study found that students were willing to opt for a low prestige college if the expense was very low; for slightly more prestige however, they would pay significantly more.4o Academicians will need to watch the relative importance of tuition costs closely because. with difficult economic times, pricing could become the major factor rather than prestige. Through continual monitoring of the college’s image, the important prestige factor can be studied and adjusted when it becomes necessary. Many institutions are hoping that some of their financial difficulty will be alleviated through encouraging nontraditional students to attend. Colleges need to be realistic in their expectations about monetary gains from this segment. It appears that European institutions have been cvcn slower in moving into the nontraditional student markets than have American institutions, probably because in some cases restructuring of lower levels of education would need to be accomplished first. Many European adults are not allowed the option of changing their career goals from vocational to professional or vice versa because of choices they made in their youth. The flexibility of early education in the United States allows for wider career changes for its adults and thus a wider market for its higher educational institutions. Adults, however, are not necessarily a cure-all either. It takes between three and six part time adults to bring in the same amount of revenue as one full time undergraduate student. Still, adults do not need many of the support services that on-campus students need. Some creative thinkers have even suggested developing pricing policies that arc more than the usual rcsident/Ilonrcsident, undergraduate/ graduate distinctions in which considerations are made for costs of particular programs and services or demand for programs. In this case, adults

Marketing enrolling in expensive offerings might bc balancing breaks by Ilot having to pay for advising services. Adults are probably more concerned about costs because many arc using their own discretionary incomes to pay their tuition costs. In the embryonic stage, though, this multiple cost idea sounds more like a business office headache than an exciting approach. Pror~iotion

Stvatcyy

distribution and pricing When the product, strategies have all been dctcrmined, it is time for the institution to promote its market-responsiveness offering. Promotion, as in the general marketing of a college’s inlagc, can happen consciously or Conscious promotion includes unconsciously. advertising, direct mail, personal visits to high schools and to college fairs, or on and off campus programs. Unconscious promotion or demotion can occur through word-of-mouth or option leaders, cspccially through alumni, faculty and administration. Public relations offices will hopefLllly be able to control rumours and promote positive news releases that are free to the college. One of the first promotional tasks is to learn how students make their decisions about which college to attend with the hope that the college can ‘be there’ with the right information at the right place and time to assist in that decision-making process. The college needs to offer an informational service for a student’s two part decision-making process. First, the student decides which institution to attend.47 For some of the new nontraditional students, the first step of introduction ofthc idea of attending collcgc at all will probably take the most energy. The second step of deciding on a particular institution may take less persuasion. Numerous studies have been done on particular institutions of higher education or in particular geographical regions to determine what criteria were most important to the final choice of one institution over another. Since results conflict, it is important for each institution to do its own student study. In the initial stage of the individual choice situation, the college must make the potential student aware of its existence. In a 1966 survey, researchers found that two-thirds of freshmen first heard about the colleges that they attended from relatives, friends, counsellors or tcachers.42 This initial contact appears to be of lesser importance in the final decision stage, however, than in the awareness stage. In a survey of students from seventeen colleges, students reported that the most important decision factors to them were the size of the school and its academic prestige; the advice of other had little influence on their choicc.43 The promotion of a particular college can occur through innumerable means and admissions people are trying more creative ones all the time, some with success, some without. A few of the more

Planning

for Colleges

and

Universities

113

common promotional means are direct mailings, visits to guidance counsellors, visits to college nights news releases, word-ofat high schools, posters, mouth, invitations to weekends at the college, telephoning, speeches to local groups, or concerts and plays. Most collcgcs handle their promotion within their own organization, but some feel that in-house personnel arc not trained well enough in and so arc turning to promotional techniques professional agencies. Hoopcs feels that too many admissions departments arc plagued by a discasc called ‘panic’ that manifests itself in a desire for more publications, because must surely lead to more more publications IHoopcs tries to calm them with the students.44 Hc logic that ‘niorc’ does not equate with ‘better’. need to accomplish that publications suggests numerous tasks in a definite order. First, the publications should make the public aware that the college exists. The best publications for this task arc press releases in the media. Nest, publications should create inquisitivcncss which can be achieved through mailings and other distribution of viewbooks to the target markets. After inquisitiveness is attained, publications need to gain an initial commitment. Hoopcs suggests mailing viewbooks in sections so that rcpcated exposure is accomplished. The USC of reply cards in catalogs, in viewbooks and on posters can stimulate people to A dccpcr commitments is possible by action. getting those who mail reply cards to complete applications. Prompt, personal responses to reply cards arc the best means of getting applications returned. Zulker notes that for their small, private college, quick response has helped enrolln~cnts.4’ Furthermore, keeping contact through monthly ncwslcttcrs mailed to prospective students, to high schools and to churches, has also hclpcd. Just getting application forms is not the end, however. To sustain an acceptance commitment, several tcchniqucs such as alumni contacts, parties and days on campus have been successfL1. Publications arc only one aspect of a successful promotion, and many other decisions arc necessary. The impersonal nature of the media, especially of advertising, works less well than personal counscling and recruiting. The information that a college is trying to convey is subtle and complex, and visuals and scanned print do not probably convey the complexity accurately. Public appearances by personnel and personal contact with prospective students would get his strong support. One of the most common means of promoting a college on a personal basis would be the high school visits form admissions personnel. Two University of Chicago faculty members studied high school visits and proposed that their effectiveness be studied as objectively as would business sales calls. ‘Sales’ in this case would be measured by a combination of applications acceptances, and/or

114

Long

Range

Planning

Vol.

17

December

registrations. The purpose of high school visits must bc determined, however. Arc they intended to increase awareness, or arc they a technique for final application-definitely that final enrollment is of utmost importance. The two researchers, Chapman and Franklin, developed a mathematical model to measure the effectiveness of the visits, and their empirical results show that these personal contacts do have a positive effect on admissions statistics of all types, including applications, acceptances and rcgistrations.4”

1984

remember that collcgcs have a cultural obligation to fulfill and that changes in curriculum have an impact beyond the college itself. In an cmpassioncd plea for responsibility in higher education’s strategic marketing planning, Krachcnbcrg writes: Mxkcting

decisions,

administrative mcnsions.

A can

influence

career

whole

litcrnlly ctylc

role

The double-exchange idea again must surface in promotions. The college has two definite audiences, and promotions must be directed toward donors as well as students. Shapiro capsulizes the idea of fund raising into the statement that it entails arousing donors into making that first contribution and then periodically getting them to repeat their contributions in larger amounts.47 He has found if they are well done, to serve alumni magazines, two important purposes in encouraging gifts; they give a positive image of the institution if they arc well done, and they provide the alum with a feeling of belonging. They can also serve to give the actual funding appeal.

m~dc

available,

price,

directly

those

who

Strategic

Strategic

Developing Marketing

,lbout

the

course’

when,

nffcct

and,

J new

of inconic,

nunlbcrs and

Lvhcre, cvcn

dcgrcc It cm ii&cd,

of individuals.

cat:llogs,

to whom,

more‘

of di-

of society.

in life, Icvcl

teach-c

elm

cthic,ll

how and

critically,

it i$

.It what

detc’rminc

COIISllnlC.4H

Marketing

Planning:

Create

a task force

Study majors.

individual

Study

functions

for image strategic

such

Checklist

for

Administrators

analysis. units,

as financial

Analyze in depth the student attend and those who might seeking in a college?

whether

colleges

who already are students

of donors. more donors

Plan to adjust the marketing mix of the institution the needs and wants of the markets.

the Final

Continue

the final

or

aids.

market-those attend. What

Determine distinguishing characteristics do they differ from nondonors? Seek similar characteristics.

Implement

Six:

dnd

other

Although Krachenberg’s point of ethical rcsponsibility on the part of colleges is a good one, he seems to view the college as almost godlike, creating and shaping students who are passive clay. If a college designs a poor program, students can act by not enrolling in the program, thus killing the offering. for a weak curriculum If students do register because it is easy, when they graduate and perform poorly as employees, their employers will respond by refusing to hire them, thus killing the program because its students will not be able to find jobs. Sound curriculum offerings, carefully researched, continuing cnrollmcnts. If will result in good, marketing planniklg ideas are truly strategic implemented, only sound curriculum will result.

The marketing of a college to its alumni entails almost the same procedures as marketing to students. A combination of publications, personal visits and phone calls, along with good public relations news releases are certainly helpful in both situations. Private colleges must not limit their thinking only to raising funds from alumni. Just as admissions people arc thinking of nontraditional students, so must fund raisers seek creative funding sources. Everything from bake sales and bingo to government grants and private foundation contributions is fair game for consideration.

Step

by

any

ma11ifold

of countless

HOW it is promoted Collcgcs will need to experiment with their own publications, personal contacts, and other proto determine how their motional techniques students respond to the different stimuli. Over time, a balanced communication mix, using media and personal selling, that is most effective at a minimum cost should be accomplished.

than

dccision change

choice,

lit?

xnorc

cncompa~s

university’s

progrdin the

prolxbly

activity,

How with

to meet

plan.

to analyze

the college

image

regularly.

Plan-Caution!

From each of the marketing mix strategies must come a final, coordinated plan-a plan with inner consistency and a singular mission. Before final adoption of the plan, however, administrators will have to consider the college’s moral obligations to society. Carefully researching the various components of a college and then following the ideas generated by that research sounds very logical to anyone but one needs to associated with business,

Strategic

+

Marketing

Take an active

$7 Help determine strategic units. +> Protect the conscience. =k Maintain

Planning:

Checklist

for Faculty

role in the task force. the

institution

a willingness

important from

criteria

frivolous

to respond

for

change.

to student

evaluating Act needs.

as the

Marketing

Conclusion Many have accused the new use of marketing in higher education for eroding the integrity of institutions of higher learning and of bringing hawkers or slick Madison Avenue types into colleges. The assumption is almost that marketeers will turn colleges into carnival sideshows and kidnap students who are unwilling and unable to think clearly and work hard. Numerous cases of occurred under the guise of gimmickry have marketing, but whether these actions are marketing at all is questionable. One angry denunciation of marketing conies from Stephen VanLuchenc, the admissions director of St. John’s College. He accuses marketing programs of concentrating on what is new and different rather toward the ends that college than ‘ . looking education has served and should serve.‘49 This statement itself is unnerving in that he assumes that all colleges serve the same purpose and that colleges sllollln all have 011~’ purpose, in effect duplicating services. If such were the case, few colleges would

Planning

If all institutions of higher education from whatever nation followed strategic marketing planning guidelines such as studying their students, publics and competitors, they could find unoccupied or weakly occupied positions. Hopefully, they would move toward supplying the needs of those people who were not previously being served. If a tendency toward diversity in higher education should develop, society would benefit from wider offerings. People are not alike; they do not have the same preferences and concerns, and neither should colleges. Currently, many institutions of higher education seem to have lost their power in the face of declining enrollments, declining financial support, declining outside contributions and rising costs. They have pared back offerings, cut faculty and staff, and still they have difficulty even staying open. They face a time when no environmental changes other than increasing inflation and even further declines in traditional college-age students

and

115

Universities

arc in the crystal

ball. They have two option-to close or to change. Budget tightening cannot do the job alone. Neither can attempts to recruit the same types of students in the same ways-only harderbecause all other institutions are doing that already. Strategic marketing planning is not the magic answer, however. It requires honest research and financial outlay for tht research and for the changes that the college will need as a result of the research findings. It also requires a commitment from all lcvcls of the institutional hierarchy, a commitment that can come through communication and the education of both marketers and academics. Hope exists for those few institutions willing to give it ‘the old college try’.

(1)

F. Krone, eta/., Factors Influencing the graduate business school decision, The Changing Marketing Environment: New Theories and Applications, p. 453, Eds K. Bernhardt, et a/., American Marketing Association Proceedings Series, Chicago (1981).

(2)

W. V. Grant, Trends in college enrollment, American Education, (U.S. Department of Education), 17, 33, July (1981).

(3)

F. Krone,

(4)

M. M. Frankel, Projecting American Education, (U.S. August-September (1983).

(5)

W. V. Grant,

(6)

P. Kotler, Strategies for introducing organizations, Journal of Marketing,

(7)

S. Midgley, Canada counts the cost of a sharp decline in student numbers, Times Higher Education Supplement, p. 9, 14 December (1979).

(8)

J. O’Leary, Drop in birthrate threat to colleges’ survival, Higher Education Supplement, p. 1, 27 June (1980).

(9)

J. Magarrell, Freshman rolls drop 2 percent at independent colleges, The Chronicle of Higher Education, 23, 10, November (1981).

be needed. The current period is a time for learning, both for professional marketers and for academicians. The marketers need to understand that higher education and culture society. responsibilities to has Academicians need to learn that marketing is not the same as selling and that marketing has some insights to offer academics without compromising its integrity. More listening from both sides would be helpful. Ideally, marketing should be viewed as a frame of mind in which questions are asked about the optimum relationship between an organization and its environment, or parts of its environment, and action is taken that is informed by the answers to those questions.50

for Colleges

see Ref. 1, p. 453. a school Department

enrollment turnaround, of Education), 17, 34,

see Ref. 2, p. 33. marketing into 43, 38, January

nonprofit (1979).

Times

(10)

B. Schoor, population

Small colleges struggle to survive in face of aid cuts, shifts, Wall Street Journal, p. 21, 5 March (1982).

(11)

P. Kotler,

(12)

L. H. Litten, Marketing higher education: the American academic system, Journal 51, 56 (1980).

(13)

B. Schorr,

(14)

C. Anderson, Enrollment patterns: meaning Educational Record, 61, 46, Winter (1980).

of

(15)

H. R. Bowen, Higher education: a growth Record, 55, 147, Summer (1974).

Educational

(16)

H. R. Bowen,

(17)

L. H. Litten, Educational essentials and the marketing of higher education, Marketing of Services: Proceedings Series, p. 135, Eds J. H. Donelly and W. R. George, American Marketing Association, Chicago (1981).

(18)

P. Kotler. Marketing for Nonprofit Organizations, Prentice-Hall, Englewood Cliffs, NJ (1975).

see Ref. 6, p. 37. benefits and risks for of Higher Education,

see Ref. 10, p. 36.

ibid.,

industry?

change,

p. 149.

p. 345,

(19)

L. H. Litten,

(20)

S. H. Lamb, Defining the business marketing strategy for higher education recruitment plannmg, The Journal of Cooperative Education, p. 31, 15, Spring (1979).

see Ref. 12, p. 45.

116 (21)

Lolig

Range

Vol. 17

Planning

1)ecernber

P. Kotler,

see Ref. 6. p. 39.

(22)

P. Kotler,

see Ref. 18. p. ! 3.

(23)

M. Mushkat, Jr., Implementing public plans: the case for social marketmg, Long Range Planning, p. 25, 13, August (1980).

(24)

L. H. Lrtten,

(25)

P. Kotler,

see Ref. 6. p. 41,

(26)

P. Kotler,

see Ref. 18, p. 32.

(27)

P. Kotler,

Ibid.,

(28)

A. R. Krachenberg, Bringing the concept of marketing education, Journal of Higher Education, p. 371, (1972).

(29)

E. H. Fram, Marketing hrgher education, The Future in the Making, p. 59, Ed. D. Vermilye, Jossey-Bass, San Francisco (1973).

(30)

(31)

H.

see Ref. 12, p. 53.

pp. 346,

B. P. Shaprro, Marketing Business Review, p. 124,

(32)

P. Kotler,

R Bowen, Record, 55,

Higher education: 147-l 58, Summer

a growth (1974).

American

Schooland

to hrgher 43. May

industry?

Educational

R. G. Chapman and M. S. Franklin, Measuring the impact of high school visits: a preliminary investigation, The Changing Marketing Environment: New Theories andApplications. pp. 124--l 27. Eds K. Bernhardt, et al., American Marketing Association Proceedings Series, Chicago (1981 ). E. H. Fram, Marketing higher education, 56-67, Ed. D. Vermilye, Jossey-Bass,

347.

Adults: no collegiate cure-all, p. 64, 52, March (1980)

19X4

The Future in the Making, San Francisco (1973).

M. M. Frankel. Projectrng a school enrollment Education (U.S. Department of Education), September (1981).

turnaround, 17, 34-35,

pp.

American August-

W. P. Gorman, Marketing approaches for promoting student enrollment in higher educational institutions, College and University, 49, 242-250, Spring (1974). W. V. Grant, Trends in college enrollment, American Department of Education), 17, 33, July (1981).

Education

(U.S.

University,

for nonprofit organrzations, Harvard 51, September-October (1973).

see Ref. 18, p. 347.

M. J. Houston, The marketing of higher educatron: a multimarket, multiservice approach, Marketing of Services.. Proceedings Series, pp. 138-140, Eds J. H. Donnelly and W. R. George, American Marketing Association, Chicago (1981 )_ R. R. Klotz, Admissions marketing for private University, 47, 303-315. Summer (1972).

(33)

B. P. Shapiro,

see Ref. 31, p. 125.

(34)

P. Kotler,

(35)

B. T. Watkins, Cooperative education, with burlt-m benefits for students and employers, gains acceptance, The Chronical of Higher Education, p. 3, 22, 26 May (1981).

(36)

P. Kotler.

P.

see Ref. 6. p. 41.

Kotler, Marketing for Nonprofit Englewood Cliffs, N.J. (1975).

P. Kotler, ations, A.

see Ref. 6, p. 40. see Ref. 17, p. 134.

colleges,

Organizations,

College

and

Prentice-Hall,

Strategies for introducing marketing rnto nonprofit Journal of Marketing, 43, 3744, JanGary (1979)

organiz-

R. Krachenberg, Brrnging the concept of marketing to higher educatron, JournalofHigherEducation, 43, 369-380, May (1972).

(37)

L. H. Litten,

(38)

W. P. Gorman, enrollment in University, 49,

(39)

L. Mrddleton, Student-hungry colleges adopt new techniques to market their wares, The Chronicle of Higher Education, 18,4, 30 April (1979).

S. H. Lamb, education Education,

(40)

K. Traynor, A benefit analysrs of higher education using multiple discrimrnant analysrs, Marketing of Services: Proceedings Series, p. 132, Eds J. H. Donnelly and W. R. George, American Marketing Association, Chicago (1981 ).

L. H. Litten, Educational essentials and the marketing of higher education, Marketing of Services: Proceedings Series, pp. 134-I 37, Eds J. H. Donnelly and W. R. George, American Marketing Association, Chicago (1981).

(41)

M. J. Houston, The marketing of higher education: a multimarket, multiservice approach, Marketing of Services.. Proceedings Series, p. 139, Eds J. H. Donnelly and W. R. George, American Marketing Association, Chicago (1981 ).

L. H. Litten, Marketing higher education: benefits and risks for the American academic system, Journalof HigherEducation, 51,4@59 (1980).

(42)

W. Gorman,

Marketing approaches for promoting student higher educational institutions, College and 246, Sprmg (1974).

see Ref. 38, pp. 246-247.

(43)

F. Krone,

(44)

R. R. Klotz, Admissions marketing for private colleges, and University, 47, 306, 308, Summer (1972).

(45)

R. R. Klotz,

(46)

G. C Chapman

(47)

B. P Shaprro,

(48)

A

(49)

S. R. VanLuchene, ground, The College

(50)

L. H. Litten,

F. Krone, et a/., Factors influencing the graduate business school decision, The Changing Marketing Environment: New Theroies and Applications, pp. 453-456, Eds K. Bernhardt, et al., Amencan Marketing Association Proceedings Series, Chicago (1981 ). Defining the business marketing strategy for higher recruitment planning, The Journal of Cooperative 15, 30-34, Spring (1979).

A. Mackay-Smith, The death of a college underscores the plight of private institutions, The WallStreet Journal, pp. 1, lo,14 December (1982).

see Ref. 1, p. 453.

ibid.,

pp. 308,

College

L. Middleton. market their April (1979).

312-313.

and M. S. Franklin,

see Ref. 1, pp. 124-126.

S. Midgley, numbers, (1979).

see Ref. 31, pp. 127-128.

R. Krachenberg,

J. Magarrell. Freshman rolls drop 2 percent at independent The Chronicle of Higher Education, 23, 10, November

see Ref. 28, p. 379. Enough of marketing: defend the high Board Review, p. 28, Spring (1980).

see Ref. 12, pp. 54, 41.

M.

Mushkat, marketing,

Student-hungry colleges adopt wares, The Chronicle of Higher

new techniques to Education, 18. 334,

Canada counts the cost of a sharp drop in student Times Higher Education Supplement, p. 9, 14 December

Jr.. Implementing public plans: Long Range Planning, 13, 24-29,

the case for social August (1980).

J. O’Leary, Drop in birthrate threat to colleges’ survival, Education Supplement, p. 1, 27 June (1980). M.

colleges, (1981 ).

L. Rothschild, Marketing communications ations or why It’s hard to sell brotherhood Marketing, 41, 1l-20, Spring (1979).

Times Higher

in nonbusiness situlike soap, Journal of

B. Schorr, Small colleges struggle to survive in face of aid cuts, population shifts, WallStreet Journal, pp. 21, 36, 5 March (1982). Adults: no collegiate cure-all, 6466, March (1980).

American

School

C. Anderson, Enrollment patterns: meaning Record, 61, 46-47, Winter (1980).

and University,

of change,

52,

Educational

B.

P. Shapiro, Marketing for nonprofit organizations, Harvard Business Review, 51, 123-l 32, September-October (1973).

K. Traynor, A benefit analysis of discriminant analysis, Marketing

higher education using multiple of Services: Proceedings Series.

Marketing pp. 129-133, Eds J. Marketing Association,

H. Donelly and W. Chicago (1981).

R. George,

American

S. R. Van Luchene, Enough of marketing: defend the high ground, College Board Review, pp. 28-30, Spring (1980). 6.

The

T. Watkins, Cooperatwe education, with built-in benefits for students and employers, gains acceptance, The Chronicle of Higher Education, 22, 26 May (1981).

Appendix castarc: A4iltorl

Collty~,

Mi/forr,

I~~~is~orlsirr

Milton College, originally established in 1834 as a private liberal arts college, showed an unusual combination of shortsightedness and creativity in its recent history. During the late IY(,Os, when college enrollments were at peak levels, the administrators of the college built several new dormitories, a new library, a student center and a gymnasium. Enrollments at the college had been stable at roughly 200 students for a century. Suddenly, the student population swelled to YOOby lY72. Oblivious to indications that enrollments would once again decline, the administration plunged the college into a long term debt from which it would never rise. When enrollments began to slow, one administrator showed real foresight in developing an extension program aimed at adults who wanted to complete degrees at night. The program offered degree programs for nursing, business and criminal justice at as many as 16 sites across the entire state of Wisconsin. When enrollments in the on-campus programs dropped to a low of 187 students, off-campus students numbered over 400. When the long term debt forced the closing of the campus in May of lY82, the off-campus programs that had for some time financially supported the on-campus programs continued independently for several months. The innovativeness of the idea of an extension program with no regular campus to anchor it gave rise to a fear that the accrediting agency would not look favorably on the institution. Without accreditation, students could not receive federal financial aid or transfer to other educational institutions. Administrators decided that in the students’ best interests, they would sell the program for a sizcable sum of money to another private college, Mt. Scenario College of Ladysmith, Wisconsin. (Source: the authors.) Carr, Tu~o: Eiscrrllolllev Co//r,~c, Scr7cca Fnllr, 11’fw York Eisenhower College was founded in lY68. Its interdisciplinary curriculum was based on Eisenhower’s belief that shared understanding was a pathway to peace. The Eisenhower World Studies Program uniquely combined the study of world history and culture. Its new campus was built for 1100 students, but enrollments never exceeded 800, and for 3 years dipped to below 400. A strong alumni organization did not exist because of the fledgling status of the institution, making donors difficult to find. Apparently, founders felt that with the name of Eisenhower, they would have no difficulty in finding donors. Such was not the case. Three years ago, the college almost closed, but the nearby Rochester Institute of Technology agreed to incorporate it as

Planning

for Colleges

and Universities

part of its complex of colleges. Eisenhower College continued to lose money. With a S5.7m debt and a dim future, RIT had no choice but to close Eisenhower’s doors. RIT President M. Richard Kose felt that only a miracle could have kept the college open. The founders based the institution on their idealistic beliefs in peace and understanding, but ideals alone could not sustain its all too real financial losses. Eisenhower College was built during the swell of enrollments in the late 1YhOs. The end of the baby boom generation’s vast numbers was ignored here as in so many other institutions. No large endowments were established at its onset to help it through lean years. It was probably doomed from the beginning; however, early longrange marketing plamung might have averted its demise by balancing its original idealistic goals with a more concrete scenario of the difficulties it would have to face a few years after its inception. One cannot help but wonder if the ideas of the program might have been better served if instead of creating a new campus, the program’s proponents might have convinced another existing campus to incorporate their interdisciplinary approach. (Source: Ani~ Mackay-Smith, The death of a college underscores the plight of private institutions, Lf’a11 Street jourrlal, pp. 1, 10, 13 December (lY82).)

lYh4, at a time when most colleges were happily building massive long term debt to serve the needs of a temporary swelling of traditional college age Americans, a group of ten college presidents founded the Union for Experimenting Colleges and Universities. They saw that the needs of a specific target market of a more lasting nature were not being met. They directed their marketing efforts toward the highly motivated adult learner. In

Now operating independently, the Union enrolls approximately 600 learners from across the United States. They offer both undergraduate and graduate degrees in a variety of subject areas to adults, YO per cent of whom are employed while they arc enrolled in the program. This innovative approach is based in flexibility-both in location and in course offerings. They offer credit for work experience and large doses of independent study mixed with seminars conducted throughout the United States. The first program of its kind, the undergraduate program is appropriately designated the University Without Walls. The mean age for undergraduate students is 3Y and for doctoral students is 42. The Union has 1500 doctoral alumni and 1100 undergraduate alumni. Recognizing that a number of factors such as full time employment, family priorities and geographical location can prcvcnt adult learners from completing dcgrce programs, the Union tailors its programs to suit the needs of its adult market, at the same time maintaining its academic integrity. By not seeking to meet a few needs ofa variety of markets, the institution seems to be meeting most of the needs of its specialized audience. It shows a promising future. (Source: General Information Bulletin, The Union for Experimenting Colleges and Universities.)