In what ways have the principles of the market been applied to Higher Education in recent decades?

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In what ways have the principles of the market been applied to Higher Education in recent decades?

In today’s society, there are more students attending university than ever before. This is perhaps thanks to the Robbins Report in 1963 which introduced an ‘education for all’ policy. In order to shoulder such expansion more universities have had to be created, which was seen particularly through the abolition of the binary divide. This was added to by the funding cuts in the 1980s, which indubitably forced institutions to compete between one another, unwittingly introducing the need for market principles. This suggests that in many ways the introduction of market principles was not a conscious decision.  External factors such as funding changes by the relevant authorities and changes in the way degree programmes are structured have almost thrust this business-minded approach upon Higher Education.  Indeed, in the increasingly money orientated society in which we live today, it is inevitable that Higher Education will also be effected.  In the course of this essay, I shall focus upon how such market principles are displayed in Higher Education, by looking in particular upon funding, the transition from scholars to ‘customers’, the effect of business-principles upon the internal structure of universities shown, modularisation, and the External Quality Assessment process.  Each of these has incorporated market principles within the Higher Education system, and therefore will allow us to observe market principles more clearly.

Primarily however, it would be useful to provide a definitive term of what ‘market-principles’ encompass. The American Marketing Association defines marketing as

“the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.”

(whatismarketing.co.uk/definitions.htm)

Such principles can indeed be applied to the Higher Education system.  For example,  ‘pricing’ may refer to the tuition fees paid by all students, ‘promotion’ to advertising through television/radio advertisements, university prospectuses and ‘distribution of ideas and goods and services’ to the information exchanged in lectures and seminars.  However, market principles in Higher Education take two rather distinct forms, applicable specifically to its infrastructure.  The first of these is the marketing of “academic wares in the commercial world” (Taylor et al, 1997 p.89) and the second is the application of business principles to administration (Taylor et al 1997) within the higher education institute.  Buchbinder and Newson (1990) refer to these marketisation terms as ‘inside-out’, i.e. the university is extending into the external market in order to attract students, and ‘outside-in’, in that the external world has influenced the institutions infrastructure in applying marketing principles.

        This ‘inside-out’ policy was primarily seen in 1987 when market-led growth was encouraged by then Secretary of State, Kenneth Baker (Bargh, et al (1996) p.16) and the UGC funding cuts (Theodossin, 1986) meant that universities were forced to look for other forms of funding on top of public funding and fees (Taylor et.al 1997).  The primary step that was taken was to review the way in which more students could be encouraged to enter the university.  Fundamentally this meant increasing people’s awareness of university places that were readily available which meant that their ‘product’ had to be marketed.  This was done in a variety of ways ranging from visits to sixth form colleges, to elaborate advertising campaigns (Symes and Hopkins 1994 in Taylor et al.)  Today’s influx of modern technology means this continues to readily take place today through Internet sights, television and radio advertisements and billboard posters.  Indeed corporate image is vital, and the more vibrant and creative a prospectus or Internet site (Boshier, et al 2001), the more students will be attracted, and so the monetary flow into that particular institution will be maintained.  In actual fact, successfully creating the image of excellence is a marketing tool itself in order to attract potential students (Buchbinder & Newson 1994)

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        Funding cuts in particular encouraged institutions of Higher Education to try and attract new sectors of the market, especially those groups that had previously been excluded, such as the socially disadvantaged, mature students and students from ethnic minority groups.  Theodossin (1986) focuses upon a variety of ways to do this, one of which is access, as entry into degree courses had to be made easier.  Publications in the 1980s, such as “Basic Skills”, “Progressing from Vocational Preparation” and “Moving Up” encouraged this move.  Counselling Services were also introduced to provide advice to any students facing particular problems, as was a flexible ...

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