HIGHER EDUCATION MARKETING, RECRUITMENT, ADMISSIONS AND COMMUNICATIONS ORGANISATIONAL TRENDS MARKET TRENDS
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1 HIGHER EDUCATION MARKETING, RECRUITMENT, ADMISSIONS AND COMMUNICATIONS ORGANISATIONAL TRENDS MARKET TRENDS If we look at Michel Porter s 5 Forces model of competition, the last five years have seen the UK Higher Education sector facing a perfect storm across its competitive landscape: The intensity of competition is high with a large number of Institutions with similar market shares competing for a UK market with demographic challenges and increasingly competitive overseas markets. There are 130 HEFCE funded HEIs in England; 122 FE colleges receive direct HEFCE funding for delivering HE in England; and 98 alternative providers have specifically designated courses. Government policy is to increase the numbers of institutions, thus adding to the intensity of competition. In November 2012 the government announced the biggest change in the sector for 20 years with ten higher education colleges in England becoming full Universities along with a reduced minimum student intake of 4,000 for a university to 1,000. The traditional HE model is also under threat from possible substitutes in the form of distance learning, alternative degree routes (e.g. FE providers), overseas study and the massive impact of the internet on both modes of delivery and availability of information. Supplier power in the form of radical changes to government policy and funding models is exacerbated by the fragmentation of the sector and its inability to speak with a united voice. Our reforms are designed to deliver a more responsive higher education sector in which funding follows the decisions of learners and successful institutions are freed to thrive; in which there is a new focus on the student experience and the quality of teaching and in which further education colleges and other alternative providers are encouraged to offer a diverse range of higher education provision.
2 - HE white Paper June 2011 Buyer strength is growing under the impact of tuition fees. With the student now being directly the source of a major part of HE income this is leading to increasing consumerist behaviours and a necessary response from HEI s in the development of customer satisfaction models and KPI s (NSS, KIS statements, development of CRM systems etc.) This is being exacerbated by government policy aimed at freeing up the market such as the recent changes to AAB and soon ABB student entry. Employers too are becoming increasingly vocal in their requirements from Universities. Finally, the threat posed from new entrants. Here it is all about the attractiveness of the market and the barriers to entry for possible new institutions. The market is undoubtedly attractive: Over 2 million students in England benefitting from Higher Education in 2010/11 The UK attracts the 2 nd largest number of international students after the USA. Roughly one in six students come from overseas. Of these around twothirds from outside the EU. The total income of UK HEIs was 27.6bn in 2010/11 57% of this is staff costs. Compared to 12,779,676 in 1999/2000). - Source: government statistics However, this attractiveness may be offset by barriers to entry set by government policy and regulation; start-up costs; capital requirements and the level of technical skill and support needed to compete with existing suppliers. These barriers are substantial, but are being addressed: The main barriers faced by institutions seeking to expand and new providers who wish to enter the market, are student number controls and the complicated and slow processes for obtaining university title and taught degree awarding powers. To help more students attend the institution they want, and drive competition and innovation across the sector, we will free up
3 student numbers and consult on changes to the criteria and process for granting university title and taught degree-awarding powers. - Government response to consultation around the white paper June 2012 MARKETING IMPERATIVES Strategic marketing objectives are becoming more aligned across the sector and are driving organisational change: Strengthening the brand positioning of the University Raising the level of understanding of customers needs and market trends Development of CRM strategies Developing targeted communications campaigns Supporting the development of product portfoliosmarket led, incomegenerating products and services as determined by the vision CONCLUSIONS AND ORGANISATION MODELS MRC resources are becoming more centralised, with the emphasis on integrating marketing, communications and recruitment teams, working closely with admissions but not always merged with them. There is some evidence of integration around the student journey, but there is still too much emphasis on communications and brand management. Market intelligence and market research resources are patchy - this is an important area for marketing to develop if they are going to own the customer voice, and be central to the debate about institutional strategy. In-house creative functions are common and could be outsourced although it is important to retain digital expertise and internal accountability for the web site. Currently, it is not clear how well MRC is represented at the top table and integrated into strategic planning.
4 Overall, these functions should be integrated and work off complementary agendas e.g. fundraising, alumni and outreach working together. But it needs an integrating agenda at the top and only works if Directors of MRC are part of University Executives. A number of models are seen across the sector: 1. Brand and corporate communications - A concentration on external relations, marketing and recruitment. This is characterised by a focus on marketing communications, recruitment campaigns and events and corporate communications and PR. It is one way of coordinating resources better, but it is unclear how strategic a role these MRC organisations play. 2. Sales and Marketing As above but also including CRM, enquiries and schools outreach. These organisational models are focusing on sales and marketing by fully integrating recruitment, events, schools outreach and enquiries handling into the mix. However, they do not include admissions. 3. Integration - A fully integrated Marketing, Communications and admissions directorate. These organisational models integrate all central marketing, recruitment, communications and admissions functions, and are often most advanced in developing CRM systems. Variations on these models are concerned with whether they include International, and business engagement activities, although the trend is for both these activities to be increasingly integrated into an MRC function. Finally, there are examples where all these functions are completely centralised, and examples where some faculty resources are either left in place, or a proactive hub and spoke model has been developed with faculty based resources integrated into an organisational philosophy. OBSERVATIONS As resources have become more centralised, organisational models have developed with marketing, recruitment and admissions functions at their core and variations around them (including or excluding admissions; including or
5 excluding International; operating a wholly centralised team, or having some resources devolved to faculties). However, these models are still operating on functional lines, with a marketing communications heritage. The organisational possibilities arising from the impact of CRM and integrating around the student journey have not been fully explored. With the blurring of marketing and communications (social media, reputation and positioning); Blurring of marketing and recruitment ( sales and marketing) and the Role of admissions in fulfilling the end of the student journey there is the opportunity to re-think the old functional boundaries and job descriptions around managing the student journey, personalised communications and CRM. This will give an MRC directorate a greater strategic voice, and will offer efficiencies in organising resources. However, such a radical integration agenda to develop an MRC function which truly reflects the marketisation of Higher Education must be recognised, and championed, by those at the top of the organisation.
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