Business Marketing. September 2014 Needs Assessment. Business Marketing Needs Assessment Page 1. Prepared by Danielle Pearson Date: September 24, 2014

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1 Business Marketing September 214 Needs Assessment Prepared by Danielle Pearson Date: September 24, 214 Business Marketing Business Marketing Needs Assessment Page 1

2 Scope Data compiled in this report covers San Bernardino, Riverside, Orange, and Los Angeles counties. Data were drawn from external sources, including the Employment Development Department s California Labor Market Information, the U.S. Department of Education s Integrated Postsecondary Education Data System (IPEDS), O*NET OnLine, and Chaffey College s Colleague Administrative database. Data Sources and Calculations Educational Program Data TOP Code Program of Study 59. Marketing and Distribution The Taxonomy of Programs (TOP) is a standardized system used at the state level to classify programs and courses that are intended to achieve the same outcome at different colleges throughout the state. CIP Code Program of Study Sales, Distribution, and Marketing Operations, General The Classification of Instructional Programs (CIP) is a standardized coding system used at the federal level to facilitate accurate tracking, assessment, and reporting of fields of study and program completion at educational institutions throughout the country. This report draws on the Sales, Distribution, and Marketing Operations, General CIP code, which maps to the Marketing and Distribution TOP code, to compare Chaffey College to other institutions and examine employment trends. Completions Data Degree and certificate data regarding students at Chaffey College were collected from the Colleague Administrative database. Degree and certificate data for all comparison schools were collected from the U.S. Department of Education s Integrated Postsecondary Education Data System (IPEDS). All comparison institutions included in this report are postsecondary and have provided data to IPEDS. IPEDS defines postsecondary education as a formal program designed primarily for students beyond high school age. These include academic, vocational, and continuing professional education, and exclude avocational and adult basic education programs. Occupational Data SOC Code Occupational Title Marketing and Distribution Wholesale and Retail Buyers, Except Farm Products Purchasing Agents, Except Wholesale, Retail, and Farm Products Retail Salespersons Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific Telemarketers Business Marketing Needs Assessment Page 2

3 The Standard Occupational Classification (SOC) system is used by federal statistical agencies to classify workers into occupational categories. The Sales, Distribution, and Marketing Operations, General CIP code was mapped to the SOC codes listed in the table above using the crosswalk described in the paragraph below. Educational Program to Occupation Crosswalk The TOP-CIP-SOC Crosswalk (Employment Development Department, 29) was used in this report to map TOP codes to CIP and SOC codes. This crosswalk allows the user to estimate labor market demand for California Community College program completers using SOC based projections from the Labor Market Information Division. Industry Data The North American Industry Classification System (NAICS) is used by federal statistical agencies to classify business establishments for the purpose of conducting and reporting research on the U.S. business economy. Using the Standard Occupational Classification codes listed above, associated NAICS industries were identified. Business Marketing Needs Assessment Page 3

4 Introduction and Contents Contents Background Information 5 Regional Job Outlook 8 Largest & Fastest Growing Industry Employers 12 Regional Graduation Summary 16 Chaffey College s Performance on Core Indicators 18 Purpose and Goals Chaffey College currently offers a 15-unit Nontranscripted Certificate in Business Administration/Marketing. The following is a description of the Business Marketing program as outlined in the Chaffey College Catalog: The Marketing Certificate prepares students for marketing and management training positions that require a working knowledge of marketing, advertising, and sales. The purpose of this report is to integrate and analyze data from multiple sources to determine labor market needs for the Business Marketing program at Chaffey College. Regional Definitions Inland Empire includes the Riverside-San Bernardino-Ontario Metropolitan Statistical Area (MSA) Los Angeles County includes the Los Angeles- Long Beach-Glendale Metro Division Orange County includes the Santa Ana- Anaheim-Irvine Metro Division Key Terms and Concepts Replacement Jobs: Replacement jobs refer to the number of job openings due to workers leaving an occupation. Annual Openings: Annual openings are calculated by adding the number of new jobs to the number of replacement jobs, divided by the number of years in the projection period. Projections: Projections of employment are calculated by the Employment Development Department and are based on a mathematical formula that includes historical employment and economic indicators along with national, state, and local trends. Occupation: Jobs are grouped into occupations using the federal Standard Occupational Classification (SOC) system. Industry: Occupations are grouped into industries using the North American Industry Classification System (NAICS). Wages: Hourly wages are reported in percentiles and averages. The 25 th percentile is a useful proxy of entry-level wages and the 75 th percentile of experienced-level wages. Business Marketing Needs Assessment Page 4

5 Background Information Marketing and Distribution Marketing and Distribution programs in California Community Colleges focus on marketing functions and tasks that facilitate the flow of goods and services to customers and/or ultimate consumers. 1 The descriptions of job duties for Marketing and Distribution-related occupations are provided by the Occupational Information Network. 2 Wholesale and Retail Buyers, Except Farm Products 2 Wholesale and Retail Buyers, Except Farm Products, but merchandise or commodities, other than farm products, for resale to consumers at the wholesale or retail level, including both durable and nondurable goods. They analyze past buying trends, sales records, price, and quality of merchandise to determine value and yield. They select, order, and authorize payment for merchandize according to contractual agreements. They may conduct meetings with sales personnel and introduce new products. This includes assistant wholesale and retail buyers of nonfarm products. Typical Tasks Use computers to organize and locate inventory, and operate spreadsheet and word processing software Negotiate prices, discount terms and transportation arrangements for merchandise Manage the department for which they buy Confer with sales and purchasing personnel to obtain information about customer needs and preferences Examine, select, order, and purchase the most favorable price merchandise consistent with quality, quantity, specification requirements and other factors Monitor and analyze sales records, trends, or economic conditions to anticipate consumer buying patterns and determine what the company will sell and how much inventory is needed Set or recommend mark-up rates, mark-down rates, and selling prices for merchandise Authorize payment of invoices or return of merchandise Interview and work closely with vendors to obtain and develop desired products Conduct staff meetings with sales personnel to introduce new merchandise 1 California Community Colleges, Chancellor s Office, Taxonomy of Programs, Sixth Edition (Corrected Version). 2 O*Net Online: Business Marketing Needs Assessment Page 5

6 Purchasing Agents, Except Wholesale, Retail, and Farm Products 2 Purchasing Agents, Except Wholesale, Retail, and Farm Products, purchase machinery, equipment, tools, parts, supplies, or services necessary for the operation of an establishment. They purchase raw or semi-finished materials for manufacturing. Typical Tasks Prepare purchase orders, solicit bid proposals, and review requisitions for goods and services Purchase the highest quality merchandise at the lowest possible price and in correct amounts Monitor and follow applicable laws and regulations Research and evaluate suppliers based on price, quality, selection, service, support, availability, reliability, production and distribution capabilities, and the supplier s reputation and history Negotiate, renegotiate, and administer contracts with suppliers, vendors, and other representatives Analyze price proposals, financial reports, and other data and information to determine reasonable prices Maintain and review computerized or manuals records of items purchased, costs, deliveries, product performance, and inventories Write and review product specifications, maintaining a working technical knowledge of the goods or services to be purchased Formulate policies and procedures for bid proposals and procurement of goods and services Evaluate and monitor contract performance to ensure compliance with contractual obligations and to determine need for changes Retail Salespersons 2 Retail Salespersons sell merchandise, such as furniture, motor vehicles, appliances, or apparel to consumers. Typical Tasks Greet customers and ascertain what each customer wants or needs Describe merchandise and explain use, operation, and care of merchandise to customers Recommend, select, and help locate or obtain merchandise based on customer needs and desires Compute sales prices, total purchases and receive and process cash or credit payment Answer questions regarding the store and its merchandise Prepare sales slips or sales contracts Maintain knowledge of current sales and promotions, policies regarding payment and exchanges, and security practices Maintain records related to sales Demonstrate use or operation of merchandise Place special orders or call other stores to find desired items Business Marketing Needs Assessment Page 6

7 Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific 2 Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific, sell goods for wholesalers or manufacturers to businesses or groups of individuals. The work requires substantial knowledge of items sold. Typical Tasks Contact regular and prospective customers to demonstrate products, explain product features, and solicit orders Recommend products to customers, based on customers needs and interests Answer customers questions about products prices, availability, product uses, and credit terms Estimate or quote prices, credit or contact signings to resolve problems and to provide ongoing support Provide customers with product samples and catalogs Identify prospective customers by using business directories, following leads from existing clients, participating in organizations and clubs, and attending trade shows and conferences Prepare drawings, estimates, and bids that meet specific customer needs Monitor market conditions, product innovations, and competitors products, prices, and sales Perform administrative duties, such as preparing sales budgets and reports, keeping sales records, and filing expense account reports Telemarketers 2 Telemarketers solicit donations or orders for goods or services over the telephone. Typical Tasks Deliver prepared sales talks, reading from scripts that describe products or services, to persuade potential customers to purchase a product or service or to make a donation Contact businesses or private individuals by telephone to solicit sales for goods or services, or to request donations for charitable causes Explain products or services and prices, and answer questions from customers Obtain customer information such as name, address, and payment method, and enter orders into computers Record names, addresses, purchases, and reactions of prospects contacted Adjust sales scripts to better target the needs and interests of specific individuals Obtain names and telephone numbers of potential customers from sources such as telephone directories, magazine reply cards, and lists purchased from other organizations Answer telephone calls from potential customers who have been solicited through advertisements Telephone or write letters to respond to correspondence from customers or to follow up initial sales contacts Maintain records of contacts, accounts, and orders Business Marketing Needs Assessment Page 7

8 Regional Job Outlook Projected Regional Job Outlook The table below displays 21 employment estimates and 22 projections for the occupational groups associated with Business Marketing programs. Expected job growth depends on the region and the occupation. Retail Salespersons generally are expecting the most growth over the time period examined. Total Estimated 21 Jobs Total Projected 22 Jobs Projected Growth (%) Ave. Annual New Job Openings Ave. Annual Replacement Job Openings Ave. Annual Total Job Openings Wholesale and Retail Buyers, Except Farm Products State of California 17,6 2,4 2,8 (15.9%) Inland Empire 85 1,2 17 (2.%) Los Angeles CO 5, 5,76 76 (15.2%) Orange CO 1,66 1,82 16 (9.6%) Purchasing Agents, Except Wholesale, Retail, and Farm Products State of California 33,4 35,8 2,4 (7.2%) Inland Empire 1,87 2,6 19 (1.2%) Los Angeles CO 9,11 9,56 45 (4.9%) Orange CO 3,51 3,63 13 (3.7%) Retail Salespersons State of California 468,4 528,1 59,7 (12.7%) 5,97 16,3 22, Inland Empire 42,76 53,63 1,87 (25.4%) 1,87 1,255 2,342 Los Angeles CO 114,94 139,5 24,56 (21.4%) 2,456 3,376 5,832 Orange CO 43,87 51,87 8, (18.2%) 8 1,289 2,89 Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific State of California 138,7 158,9 2,2 (14.6%) 2,2 2,71 4,73 Inland Empire 9,23 11,31 2,8 (22.5%) Los Angeles CO 42,9 5,2 8,11 (19.3% ,82 Orange CO 14,71 15,95 1,24 (8.4%) Telemarketers State of California 14, 15,7 1,7 (12.1%) Inland Empire 1,41 1,52 11 (7.8%) Los Angeles CO 6,99 7,6 61 (8.7%) Orange CO 2,75 2,85 11 (4.%) Source: Labor Market Information Division, Employment Development Department, Occupation Profile, on the Internet at: (visited September 22, 214). Business Marketing Needs Assessment Page 8

9 Projected Job Growth by Region The graphs below show the projected growth from 21 to 22 of occupations that employ completers of Business Marketing programs. Growth is expected in all areas for all occupations across this time frame. 5 Wholesale and Retail Buyers, Except Farm Products 4 % Growth California Inland Empire LA County Orange County Purchasing Agents, Except Wholesale, Retail, and Farm Products 5 4 % Growth California Inland Empire LA County Orange County Business Marketing Needs Assessment Page 9

10 5 Retail Salespersons 4 % Growth California Inland Empire LA County Orange County 5 Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific 4 % Growth California Inland Empire LA County Orange County 5 Telemarketers 4 % Growth California Inland Empire LA County Orange County Source: Labor Market Information Division, Employment Development Department, Occupation Profile, on the Internet at: (visited September 22, 214). Business Marketing Needs Assessment Page 1

11 Hourly Wages by Region This table displays the first quarter 214 hourly wage statistics of individuals employed in occupations for Business Marketing program completers. Purchasing Agents, Except Wholes, Retail, and Farm Products, can generally expect to earn the highest mean wages among these occupations. Mean Hourly Rate 25 th Percentile Median Hourly Rate 75 th Percentile Wholesale and Retail Buyers, Except Farm Products State of California $27.99 $19. $25.62 $33.52 Inland Empire $28.68 $16.2 $243 $32.64 Los Angeles CO $27.1 $17.19 $25.4 $33.6 Orange CO $3.2 $21.88 $27.72 $35.16 Purchasing Agents, Except Wholesale, Retail, and Farm Products State of California $33.35 $24.2 $31.84 $41.49 Inland Empire $27.12 $2.49 $25.5 $32.14 Los Angeles CO $32.56 $23.5 $3.87 $41.6 Orange CO $32.15 $22.54 $3.98 $4.18 Retail Salespersons State of California $12.96 $9.19 $1.77 $14.14 Inland Empire $12.2 $9.3 $1.24 $13.14 Los Angeles CO $12.49 $9.9 $1.41 $13.8 Orange CO $13.69 $9.15 $1.76 $14.29 Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific State of California $3.81 $17.78 $26.3 $37.67 Inland Empire $3.15 $18.85 $25.65 $36.78 Los Angeles CO $29.96 $16.47 $24.32 $35.76 Orange CO $31.19 $18.15 $26.75 $4.74 Telemarketers State of California $13.35 $9.55 $11.76 $15.39 Inland Empire $12.7 $9.12 $1.72 $14.42 Los Angeles CO $12.76 $9.78 $12.4 $14.89 Orange CO $13.25 $9.76 $11.61 $14.75 Source: Labor Market Information Division, Employment Development Department, Occupation Profile, on the Internet at: (visited September 22, 214). Business Marketing Needs Assessment Page 11

12 Largest and Fastest Growing Industry Employers Largest Industry Employers of Business Marketing Occupations The graphs below display the 21 staffing patterns of the largest industries employing completers of Business Marketing programs across the state of California. Number of Employees Wholesale and Retail Buyers, Except Farm Products Retail Salespersons Number of Employees Business Marketing Needs Assessment Page 12

13 Purchasing Agents, Except Wholesale, Retail, and Farm Products Number of Employees Number of Employees Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific Number of Employees Telemarketers Source: Labor Market Information Division, Employment Development Department, Staffing Patterns, on the Internet at: (visited September 23, 214). Business Marketing Needs Assessment Page 13

14 Change Over Time of the Largest Industry Employers of Business Marketing- Related Occupations The graphs below display projections of change over time from of the largest industries employing Business Marketing-related occupations in the state of California. Growth is expected among the majority of industries employing individuals in the occupations evaluated. Wholesale and Retail Buyers, Except Farm Products 4% 37.5% 33.3% Percent Change 3% 2% 1% % 17.4% 11.1% 12.5% 12.5% 12.5%.% 16.7%.% Retail Salespersons Percent Change 3% 25% 2% 15% 1% 5% % -5% 16.7% 4.2% 22.9% 12.3% -3.6% 27.7% 13.7% -2.7% 2.1% 12.6% Business Marketing Needs Assessment Page 14

15 Purchasing Agents, Except Wholesale, Retail, and Farm Products Percent Change 4% 3% 2% 1% % -1% -2% -3% -12.5% -5.6% -23.5% 2.% 7.1% -8.3% 8.3% 27.3% 9.1% 33.3% Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific Percent Change 4% 3% 2% 1% % -1% 32.2% 1.1% 9.4% 1.2% 11.1% 15.6% 4.2% 2.% -8.3% 8.3% Telemarketers Percent Change 12% 1% 8% 6% 4% 2% % -4.% 33.3% 16.7% 16.7% 2.% 33.3% 5.%.% 1.%.% -2% Source: Labor Market Information Division, Employment Development Department, Staffing Patterns, on the Internet at: (visited September 23, 214). Business Marketing Needs Assessment Page 15

16 Regional Graduation Summary Education and Training 3 The five occupations associated with a Marketing and Distribution program differ in terms of education and training. Employers of Wholesale and Retail Buyers and Purchasing Agents are usually looking for candidates with a Bachelor s degree. Employers of Retail Salespersons and Telemarketers usually expect an employee to be able to do the job after short-term on-the-job training. Employers of Sales Representatives typically expect an employee to be able to do the job after moderate-term on-the-job training (1-12 months). Regional Completers in Business Marketing Programs The table below displays the number of program completers in the academic year at regional institutions offering Business Marketing programs with CIP codes associated with those programs offered by Chaffey College. There are 25 regional institutions offering degrees and/or certificates below the baccalaureate level. Institution Name < 1 year Certificate 1 to < 2 year Certificate Award Level Associate s Degree 2 to < 4 year Certificate Antelope Valley College College of the Canyons Cypress College East Los Angeles College El Camino College Compton Center El Camino Community College District Fullerton College Glendale Community College Long Beach City College Los Angeles City College Los Angeles Mission College Los Angeles Pierce College Los Angeles Trade Technical College Los Angeles Valley College Moorpark College Moreno Valley College Mt. San Antonio College Norco College Orange Coast College Pasadena City College Riverside City College Labor Market Info, Employment Development Department, California Occupational Guides, on the Internet at: (visited September 24, 214). Business Marketing Needs Assessment Page 16

17 Saddleback College Santa Ana College Santa Monica College Santiago Canyon College Total Note: -- indicates that this type of degree is not offered. indicates that this degree is offered but no degrees or certificates were granted. Source: National Center for Education Statistics, U.S. Department of Education, Integrated Postsecondary Education Data System, on the Internet at: Business Marketing Needs Assessment Page 17

18 Chaffey College s Performance on Core Indicators The Perkins IV Career and Technical Education Improvement Act of 26 mandates that all state and local postsecondary institutions provide data on six core performance indicators for their career and technical education programs. These indicators are: 1) Technical Skill Attainment; 2) Completions; 3) Persistence and Transfer; 4) Employment; 5a) Nontraditional Participation; and 5b) Nontraditional Completion. Performance goals are set at the state and local levels and progress is monitored based on a comparison between the actual percentage of students who master each performance area and the negotiated levels of performance Chaffey College Performance on Core Indicators The table below displays negotiated and actual core performance indicator levels for all Chaffey College students classified under the Marketing and Distribution TOP code. A CTE Cohort is defined by the Chancellor s Office as those with 12+ CTE units in a discipline in 3 years. Low sample sizes and privacy restrictions limited outcome information for three of the core indicators; negotiated levels were exceeded for two of the other three core indicators. Core Performance Indicators Negotiated Level State District Chaffey College Performance Percent Above or Below District Negotiated Level Marketing and Distribution Core 1 Technical Skill Attainment 89.5% 89.5% 91.3% 1.8 Core 2 Completions- Credential, Certificate, Degree, or Transfer Ready 81.5% 75.61% 81.82% 6.2 Core 3 Persistence and Transfer 86.5% 83.24% 82.61% -.6 Core 4 Employment 8.85% 77.65% DR N/A Core 5a Non-traditional Participation 22.6% 2.29% N/R N/R Core 5b Non-traditional Completions 26.5% 22.49% N/R N/R DR indicates privacy requirements. N/A (Not Applicable) indicates denominators < 1. N/R (Not Reported) indicates categories where no participants were recorded. Source: CA Community Colleges Reporting Services, Marketing and Distribution, College Core Indicator Information by 6-Digit TOP ( Fiscal Year Planning). Business Marketing Needs Assessment Page 18

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