- Weakness:
- Too many kinds of fee to pay. (Tuition fee, inquilinous fee, applying fee and so on)
- Age limited
New Zealand
- School: Christchurch polytechnic institute of technology
- Strength:
- They have the most advanced and complete installation in New Zealand.
- They pay great attention to foster the practical operational ability. Lots of opportunities to practice.
- Keep a close watch on the progress that the students get. Offer a pertinence tutorship betimes.
- School was located in the city, which is the next to the biggest.
- The diploma and the grade that the students get will be recognized in a public situation and international area. If the students have the diploma that the school awarded, they can favoringly transfer to so many colleges to continue their advanced study as a bachelor degree course or a master degree course.
- It doesn’t need the preparatory study. 4 years study life, the students can get the bachelor degree.
- Excellence student service
- Weakness
- Too much requirement to enroll
- Expensive to live in New Zealand
- Few of the course the school offer to Chinese students
- School: The Waikato polytechnic
- Strength
- Active and helping study environment. That will be advancing students to get a success on their study.
- Forgoing course to choose, including the certification, diploma, and the course of bachelor degree.
- They have the course that will be recognized in China and in the international area.
- In proper sequence course program: certification, diploma, and bachelor degree course.
- Friendly and experience school workers, they apply themselves to offer their students the diversified help.
- International classes, mix the foreign students and the Zelanian students in one class, it is propitious to get intercommunication
- Helping families program
- Weakness
- The time that starting the first lectures is not accord the Chinese school. Their first lectures will be held February or July.
- Tuition fee is more expensive than another school
- Need more cost of living
- School: Auckland business academy
- Strength:
- Auckland business academy has the international study environment, there are a lot of students come from different countries, they will be influenced by many kinds of culture.
- The students can study 10 weeks more lesson than another school in Auckland business academy. It offered students one more opportunity to get a quickly success. The students who have better ability at English add the study hard on subjects, they can finish their study ahead half year of the 3 years degree course.
- So many courses to choose, including certification, diploma, bachelor and master degree courses.
- Looser and more flexible enroll requirement. Students can apply directly to study in MBA course when they graduated from academy. Whichever course the students applying, they don’t need the grade certification of TOEFL or IELTS.
- The academy cooperated with some big international companies, after the graduation, these companies can employ students easier.
- Weakness
- More tuition fee and cost of living
- Chinese students cannot apply directly, they have to hand in the applying form to an intermediary company called Sino-overseas Consultants Co. Ltd.
It also have some universities in New Zealand, but we just analyzed the 3 schools and academies above, because they are our primary competitors in china, and they are in the same level of institution as us.
Germany
- School: the Charlotte-Wolff-kolleg
- Strength:
- All of the education in Germany is free.
- So many students have been Germany, they can do a good promotion for the schools and the country.
- Good distributors and retailers in China (Sino-overseas Consultants is the cooperation intermediary company of the Charlotte-Wolff-kollege that is the only intermediary company the Chinese government have recognized in Guangxi province.)
- The students are allowed to choose studying at daytime or evening time.
- Weakness:
- The study life is longer than the other countries, 4-6 years.
- Teaching language is in German, student got to learn German six month before enrolling.
- Very very expensive (for the intermediary company)
- Recruiting program is too complex:
Sign up ---- test (English) ---- training for the foreign language (English and German) ---- test the level of foreign language (English and German) ---- get the enrollment letter ---- get the Visa ---- study abroad
- School: Eurasia sprachen-institut
- Strength:
- Free tuition free for high education institution, not only the Germany citizens but also the foreigner can enjoy.
- Good international study environment
- So many experience teachers
- Cooperate with some big companies, offer the opportunities to students who want to get the further progress with practice.
- Friendly family program
- Students can work their way through the college in some office, industries, or take care the children for some families, or cleaning and so on.
- The school has held the exposition of high education many times in China. So the promotion is good.
- And the retailer is also good.
England
- School: London Finance Management College
- Strength:
- International competitive price of the fee for course that the London Finance Management College offered.
- The content of lectures is well-knit with the developing of age. It include all the latest business knowledge.
- Many members of the teaching staffs have former positions with multinational enterprises and local firms, which has given them extensive experience in international growth markets and trends.
- Students can get the degree that is awarded by the Oxford University when they graduate from the bachelor or MBA courses.
- Weakness:
- Very very expensive (intermediary fee, tuition fee, cost of living)
- Age limited (diploma course ---- 17 years old) and (MBA course ---- 25 years old)
- The implementation is too complex
- School: University of Hertfordshire in England
- Strength:
- Their education life has a long history. It is a very famous university in the world.
- Strict style of study
- Hertfordshire University offers the excellence quality of education.
- Large size of university
- They have the perfect teaching and living equipment. The library which founded in 1997 is the most advance in England.
- The university offers the international students thorough service. (information consultants, enrollment applying, transaction of permit , picking, housing, travel organization)
- There are 8 institutions in Hertfordshire University. (industry and commerce economic management, engineering information project, health and human science, art and design, culture science, modem language, science of law, natural science)
- Good pricing, placing, promoting strategy
Australia
- School: Taylors College
- Strength:
- The staffs of the college have the experience to take care of the foreign students.
- Students are encouraged by the challenging courses. It will encourage them to reach the best achievement in the strict study environment.
- Abundant information about the studying guide and auxiliary teaching material.
- Improving and enlightening the studying courses in class.
- Free additional lessons to help students understand what they are studying, let them make a good foundation with their knowledge when they are transitioning from high school to college or university.
- Free consultant service
- Excellent teaching installations
- School: Queensland High School
- Strength:
- Lots of opportunities for traveling and exploring.
- Social environment with many kinds ethnic groups.
- Safety environment for living in Queensland.
- Attractive subtropical climate and healthy outside living style.
- Elegant artistic style
- International modernized big city.
- Good organization, management, retailer
- Perfect strategy planning program (pricing, placing, and promoting)
3.2.0 Substitutive competitors
According to the result of the field research, and the traditional conception of Chinese people. That is no doubt, there are many Chinese students still want to study in their homeland. So we think the internal competitors, it means that the Chinese colleges will be our substitutive competitors, but we won’ t be threatened with all the Chinese colleges today, and only today. Because now the growth of economic in China is getting slow, and the Chinese colleges still can’ t catch up with Euro – American countries in the quality of education and the opportunity to get a job in some companies. And that is a real big population in China, even if there are 80 percent of students stay in their homeland to study, we still get a big potential market with almost half billion students.
On the other hand, in China, more and more people emigrated or are going to emigrate to foreign. They will choose the schools, which have the higher level of education than ours to be graduated. And first, they have to choose the language school to learn the local official language. Thus they can make a further communication with the other people. We think that is every important for Chinese people. That is always a big problem for a Chinese to get a good progress with foreign spoken language, especially students. So choose a good language school that is the first thing they got to do before choose a academy or a college. This situation also is the threat.
4.0.0 Identifying our target groups and positioning
Of course EBA cannot offer the best education for every student in China. Therefore we should use STP marketing model.
Figure 4.0.0, steps in market segmentation, targeting, and positioning.
Sources: Marketing Management by Philip Kotler
These three steps are:
- Market segmentation: Identify and profile distinct groups of buyers who might require separate products/ or marketing mixes.
- Market targeting: Select one or more segments to enter.
- Market positioning: Establish and communicate the products’ key distinctive benefits in the market.
In our situation, EBA’s market consists of buyers (potential students), and buyers differ in many ways. The buyers differ in their want, purchasing power, geographical location, buying attitudes, and buying habits.
The People’s Republic of China is administratively divided into 23 provinces, 5 autonomous regions, 4 municipalities and 2 special administrative regions (SAR).
In 1st November 2000, the total number of population is 1,295,330,000. There were 1,265,830,000 peoples in mainland.
Data from National Bureau of Statistics
Figure 4.0.1- Made by Peter.
Notes:
- Taiwan is a province of China, but our research does not include it. Because there were lot of political factor, it will be very difficult to analyses.
- Municipalities directly under the administration of central government. For example, Beijing, Shanghai, etc. they have the same political, economical and jurisdictional right as a province;
- Two special administrative regions (SAR) were established specially. Hong Kong and Macao, they have completely different social systems (political system) with mainland. These 2 SAR will not be analyses in our report; the reason is same as Taiwan.
- The statistics of areas and populations are based on official information constantly.
4.1.0 Market segmentation
Bases for segmenting consumer markets
Geographic Segmentation.
Region
Because of the economic and political factors. We only choice Chinese Mainland for our target region.
City or Metro size
We are looking for the cities that the populations are 500,000 or over. We can choice the cities, which are capital of province or capital of autonomous region and municipality.
Density
Urban, city is much better for select our target group and doing the marketing strategy. Another reason is in China the people who live in city the income is much higher than people who live in countryside.
Demographic
Age
EBA got some problem in last two or three years. Some of the Chinese students are too young (around 16-17 years old), they cannot take care themselves when they just leaved their family, and then they stay in the dormitory all the time wasted the money and time. Finally they went back to China and get nothing. But that is the only one aspect of the problem, the younger students are much easier affected by environment, some of them given up to study and taken the unlawful job or lived with their ‘friends’-they hoped they can marriage with Danish people and stay in Denmark for a long time be come a Danish citizen, but about this we don’t have a conclusive testimony.
Family size
China began apply the Planned Parenthood since 1978. Therefore there are a lot of Chinese family have only one child. The family size will be 3-4 peoples.
Type of family
In China (include some Asian countries), some old people live with their children who have been married. So we call these families are patulous families. Some times these old people will participate in making a main decision. For example, they will care about their grandson taking study abroad.
Family lift cycle
Parents are in midlife; they have one (or two) child. Their child is around 18 years old.
Family income
The tuition fee for study in EBA market economics course is 5400 USD for first year 4800 USD for second year. The cost of living in Denmark (Esbjerg) is around 200 USD, for 2 years is 4800 USD. Before the students go to Denmark they should pay around 2200-3000 USD to agent for the agency service.
So the student has to pay (at list) 10,000 USD in the first time before he comes to EBA and study.
This expenses includes:
Tuition fee for first year is 5400 USD
Cost of living for first year is 2400 USD
Agency service expense is 2200 USD
Total is 10,000 USD. It is equal to around 88,000 RMB. This is not a little number for a normal Chinese family. Young students have no their own income. So we have to choice the high-income family.
Occupation
Students
Education
EBA requests student must be High school graduated.
Nationality
Chinese.
Social class
Our consumers are students; we cannot confirm their social class. But in fact, we should pay attention for the social class of their parents. Because EBA offers a European higher education service, some parents think it can emblematize their social class that their children study in Europe.
Psychographic segmentation
Personality
Independence, freedom, adventure, advocate of knowledge, acquainted, greathearted, enterprising, all of these are characteristics of the Chinese students who are studying abroad.
Behavioral
Occasions. EBA starts its marketing economist course in autumn every year; therefore it should begin its recruiting students program in the beginning of summer.
Benefits. EBA should look for someone who is interested on high quality education service that is what EBA can give to the consumers.
User status. Nonusers and first-time users are the main in our target group. But EBA should also pay attention on ex-users, because they have the experience of study abroad. For example, in the term 1999, we have some Chinese students were study in Malaysia. They can accommodate the new environment quickly and easily. They made the trouble less than the students who were first-time study abroad.
4.2.0 Market targeting
4.2.1 Evaluating the market segments
The number of Chinese students abroad is growing very quickly.
4.3.0 Selecting market segments
Single-segment concentration. In the simplest case, EBA selects a single segment.
4.4.0 Positioning
Figure 4.4.0 EBA’s Position.
Made by Peter
Figure 4.4.0 shows that EBA’s marketing economist course is on point A, with high quality and medium price.
Marketing programs
5.0.0 Product strategy
5.1.0 The product
EBA’s product is marketing economist course, it’s a Danish higher education service.
Abroad education service is a very special product (service). Consumer has to expend a lot of money and time. Therefore they will think about it very carefully before they make a decision.
5.2.0 Product-mix decisions
A product mix is the set of all products and items that a particular offers for sale to buyers.
Figure 5.2.0 Product-mix width and product-line length for EBA’s higher education service.
Made by Peter
Basic on figure 5.2.0, we can see the Product-mix width and product-line length for EBA’s higher education service. Because EBA is a SBU (Strategy Business Unit) of Esbjerg Handelsskole, therefore it only has one product-line. It included marketing economist course and HH course. EBA only offered marketing economist course to Chinese students.
5.3.0 Product-line length
5.3.1 Line stretching
- Downward stretch. Some of the new Chinese cannot follow the lesions at the beginning, because they cannot accommodate it. Therefore EBA can offer a preparatory course for them.
- Upward stretch. If EBA could offer a degree course for the diploma graduate, we think it can increase EBA’s attraction.
6.0.0 Pricing strategy
A firm must set a price for the first time when the firm develops of acquires a new product, when it introduces its regular product in to a new distribution channel or geographical area, and when it enters bids on new contract work. The firm must decide where to position its product on quality and price. As any other companies, EBA has to consider many factors in setting its pricing policy.
6.1.0 Selecting the pricing objective
EBA first has to decide what it wants to accomplish with its particular product offer. If EBA has selected its target market and market positioning carefully, then its marketing-mix strategy (including price) will be fairly straightforward. The clearer a firm’s objectives, the easier it is to set price. A company can pursue any of six major objectives through its pricing: survival, maximum current profit, maximum current revenue, maximum sales growth, maximum market skimming, or product-quality leadership. So EBA can pursue it too. Because of the following reasons, EBA can pursue the maximum sales growth. Let it be its major objective.
- The market is highly price sensitive, and a low price stimulates market growth.
- Production and distribution costs fall with accumulated production experience.
- A low price discourages actual and potential competition.
6.2.0 Determining demand
Each price that the company might charge will lead to a different level of demand and will therefore have a different impact on its marketing objectives. EBA must know that demand and price are inversely, especially China. That is, the higher the price, the lower the demand, and the lower the price, the higher the demand.
The important step in estimating demand thus understanding the factors that affect buyers’ price sensitivity. Factors affecting price sensitivity:
- Unique-value effect: buyers are less price sensitive when the product is more distinctive. Especially Chinese students, they prefer market economist course, it means ME course has more distinctive than the other course that another country offers, like hotel management course (Switzerland), IT course (Germany), engineering course (UK).
- Substitute-awareness effect: buyers are less price sensitive when they are less aware of substitutes.
- Difficult-comparison effect: buyers are less price sensitive when they cannot easily compare the quality of substitutes.
These two points are mentioning our competitors’ products. Most Chinese students, they don’t get so much information about the schools or colleges that cannot decide which one they should choose. As long as EBA increase the quality of promotion, the Chinese students will less price sensitive.
- Total-expenditure effect: buyers are less price sensitive the lower the expenditure is as a part of their total income. EBA has to pay more attention on this. The total income of every Chinese family is not too high. It will increase price sensitive.
- Price-quality effect: buyers are less price sensitive when the product is assumed to have more quality, prestige, or exclusiveness. This is fit to EBA, good quality service of education. That is what exactly EBA is offering to all the students who are studying at EBA.
EBA needs to benchmark its costs against its competitors’ costs to learn whether it is operating at a cost advantage or disadvantage. That means EBA needs to analyze its competitors’ costs, prices, and offers after they estimated demand. EBA can ask Chinese students how they perceive the price and quality of each competitor’s offer. And why they choose Denmark to continue their study. Make a possible price according to competitors’ price. It is aware of competitors’ prices and offers, it can use them as an orienting point for its own pricing. EBA’s offer is similar to the major competitor’s offer, so EBA has to price close to the competitor. But that will have so many factors to influence the pricing that will not close to the competitors’.
6.3.0 Selecting a pricing method
EBA should use the most elementary pricing method, Markup Pricing. That is to add a standard markup to the product’s cost. That must include the salary for each teacher, and the fee for executive operating system.
On the other hand, EBA should adapt the price compare to competitors’. Because a high-markup strategy could be fatal if a competitor is pricing low. EBA should prepare for lowing the price or reset a new price refers to competitors’.
6.4.0 Using the result of the field research
Figure 6.4.0-‘which factor is the most important when you conside study abroad’
Made by Kiki.
This graph indicates that Chinese people have a high price sensitive. EBA should take care that when it wants to make a good price for its profit. But EBA can less customers’ sensitive through its good quality of education. There is about 80% of customers pay more attention to the level of education when they consider which school they should choose.
12 Family income per year
0 No Answer 35,5%
1 Above 100,000 3,2%
2 60,000-90,000 4,3%
3 50,000-10,000 30,1%
4 Below 10,000 26,9%
According to this feedback of the question above. With our point, I suggest EBA to make a middle range of price for Chinese recruitment market. And it emphasizes the promotion of EBA’s quality of education, service, and studying environment. That will lead to EBA get more attention from more customers than its competitors.
7.0.0 Place strategy
7.1.0 Distribution objectives
Most companies or producers do not sell their goods directly to the final users. EBA either. Between EBA and the Chinese students stands a distribution channel. The objectives of EBA’s distribution channel in China are that sets up an interdependent organization to let its products or service be known by Chinese people. Recruiting more and good students to study at Esbjerg Denmark. The distribution channel designer must know the service outputs desired by the target customers.
7.2.0 Selecting of distribution channel
EBA has many channel alternatives for reaching a market in China. Sell direct channel. EBA can establish a recruitment office in someplace of China. Or use intermediary companies to introduce EBA’s service quality and education quality. Another choice, EBA can cooperate with some high schools or colleges. The major way of this distribution channel is exchanging students.
7.2.1 Pros and cons of using intermediary companies
Advantages:
- Because there is a big difference of language background between Denmark and China. The intermediary companies can make a good communication with target customers and EBA.
- It will lead EBA to get a cost savings effected by using intermediary companies. Save the cost of carry out direct marketing.
- The intermediary companies search for customers and negotiate. They know where and whom they should target. It will be easier to find out the factual situation than EBA set up an own office in China.
- In China, the Chinese government has legislated to rule the foreign schools or colleges or universities doing recruitment in China. The intermediary companies will not have this problem. Although the intermediary companies have to face the other kinds of the Chinese law, but it is not so difficult as establishing an office of EBA’s management.
Disadvantages:
- Not so easy to control, the information feedback will be slowly. Because the delegation means that EBA has to relinquish some control over to the intermediary companies.
- EBA will loose some information when the intermediary companies report the achievement they have got.
- Maybe the intermediary companies would introduce some wrong information to customers, it will lead to a greater reducing of EBA’s image.
7.2.2 Pros and cons of using recruitment office
Advantages:
- EBA can control the recruitment office directly. Carry out direct marketing, customers’ satisfy feedback directly to the management.
- It can get an excellent communication between customers and EBA. Customers will find out the service they need indeed.
Disadvantages:
- It is very complex for the process as launching a new company in China.
- The cost is very expensive. And it always takes time to get use to a new place. If EBA want to recruit just a limited number of Chinese students, I don’t think that is a good idea to set up an own office in China.
- EBA has to face a lot of problem that cause by Chinese law.
7.2.3 Pros and cons of using cooperative schools
Advantages:
- Make cooperation with some of schools or colleges or universities, it can get the fixed number of customers.
- Cost of carry out marketing is low; promotion cost will also be low.
Disadvantages:
- Because there are very few of colleges have cooperation with some foreign colleges in China. So that is very difficult to make a good cooperation with the Chinese colleges.
- The time of contact between cooperating schools and EBA will be longer. That means it will take long time for design this distribution channel, and set up the relative system.
7.3.0 Channel – design decisions
According to the analysis of channel selecting. We are now identifying EBA’s major channel alternatives. EBA should use intermediary companies strategy, it means that use the agent in China. And selective distribution strategy will be fit to EBA to seek the potential market. After that, we should select the channel members. As we introduce above, Sino-Overseas Consultants Company should be selected by EBA. And the strategy for motivating the channel member is reward power strategy. EBA should often pay attention at the intermediary company, it should advert the distribution channel dynamics.
7.4.0 Using the result of the field research
We made two open-end questions for our target group. Question 10 and question 11. That ask about what the customers want a intermediary company to do. And what they want to get from a school or a college. With question 11, that is accord to that we described about the channel designing. We think that is very necessary to increase the reliability of an intermediary company. That is normally we talk about the faith. Never ever let any customer get the bad felling about that they think the intermediary company is cheating them.
This is the result of the question 8.
Figure 7.4.0- Made by Kiki.
This figure shows us that most of our customers think just a few of the intermediary company could be believed in. and the real bad indication is that there are few percentage of the customers have been thinking that all of the intermediary companies could not be believed in. that means it is very difficult for increase EBA’s image through the intermediary companies in China. Another word, that is very necessary to invest more many for doing promotion to increase the image of the agent and EBA.
8.0.0 Promotion
8.1.0 Identifying the target audience
Our target audience includes the students and their parents (and other family members). Students are the consumer of EBA education service; their parents are the customer and decision-makers.
8.1.1 Image analysis
The first step is to measure the target audience’s knowledge of the object. According to our questionnaire, in question No.2, there were only a few people choice Denmark to take their higher education. Also in our interview, we found there is a lot of Chinese have never heard of anything about Danish higher education. Therefore the EBA’s challenge is to build greater awareness.
In question No.3, we asked about the image of European higher education. There were 71% parents and 68% students agree that the European higher education is better than Chinese higher education. Detailed information please consult Appendix 1.EBA has a good favorable attitude as same as the other business academies or college in other European countries.
Figure 8.1.1 Familiarity-Favorable Analysis
Sources: Marketing Management by Philip Kotler
Clearly, EBA’s position in this figure is on point B. Therefore EBA must gain the attention of more people, since those who know it consider it a good academy.
8.2.0 Determining the communication objectives
Once the target market and its characteristics are identified, the marketing communicator must decide on the desired audience response.
The marketer might want to put something into the consumer’s mind, change the consumer’s attitude, or get the consumer to act. But we are facing 4 different models of consumer-response stages.
Figure 8.2.0 Response Hierarchy Models
Sources: Marketing Management by Philip Kotler
In our situation, the consumer of EBA’s education service has high involvement with the service category and perceives high differentiation within the category. Therefore we will work with the Hierarchy-of effects model (learn, feel, do-see the second column of Figure 8.2.0) and describe how marketer should behave in each of six buyer-readiness stages. They are awareness, knowledge, liking, preference, conviction, and purchase:
- Awareness. If most of the target audience is unaware of the object, the communicator’s task is to build awareness, perhaps just name. This task can be accomplished with simple messages repeating the product (service’s) name. But building awareness takes time. Actually, in our field research, we found there was few Chinese people know about Danish education, lots of Chinese even don’t know anything about Denmark. Therefore EBA should pay more attention and time in this step. This is the first thing is let Chinese people know EBA is a Danish academy, and how dose Denmark looks like.
- Knowledge. The target audience might have EBA or its education service awareness but not know much more. EBA may want its target audience to know that it is a private Danish business academy with excellent 2 years program in English for Chinese students. It thus needs to learn how many people in the target audience have little, some, or much knowledge about EBA. Based on this information, EBA may then decide to select product knowledge as its first communication objective.
- Liking. If target members know the service, how do they feel about it? If the audience looks unfavorably on EBA, the communicator has to find out why and then develop a communication campaign to shore up favorable feelings. If the unfavorable view is based on real problem of EBA, then a communication campaign alone cannot do the job. For example, EBA cannot offer the degree program for the students who were finished market economist program. EBA will have to fix its problem, like make a corporation with some Danish college or university, which can receive EBA’s graduate. Then EBA can communicate its renewed quality.
- Preference. The target audience might like the service but not prefer it to others. Nowadays Chinese students have many choices for their further study when they want to study abroad. In this case, the communicator must try to build consumer preference. The communicator will promote the service’s quality, value, performance, and other features.
- Conviction. The target audience might prefer the service but not develop a conviction about buying it. The communicator’s job is to build conviction among interested students that EBA is their best choice. For example, show more advantage of study in EBA to the students, make a comparison to other academy in other country for point out EBA is the best choice. The students who are studying in EBA meet the target audience is a good idea too. The target audience may trust the old students more than some one else. Because basic on our questionnaire, there were more than 50% students and their parents trust the suggestion from the students who are studying in EBA, contrarily there were more than 70% of them alleged they don’t think the agent can be trusted.
- Purchase. Finally, some members of the target audience might have conviction but not quite get around to making the purchase. They may wait for more information or plan to act later. The communicator must lead these consumers to take the final step. One of the idea is, don’t give the consumers so much time to think over it. The communicator can tell the students and their parents the deadline of application of EBA is on 30 June, please make a decision as soon as possible, after that you have wait until next year. Usual actions might include offering the service at a low price, offering a premium, letting consumers try it on a limited basis. Thus EBA might invite selected high school students to visit the campus and attend some classes. Or send some lecturers to china, make a simulative class, teach students more about EBA and tell them what should they do when they began the course. Or EBA might offer partial scholarships to deserving students.
8.3.0 Designing the message
Having defined the desired audience response, we move to developing an effective message.
Formulating the message will require solving four problems:
- What to say? (Message content).
- How to say it logically? (Message structure).
- How to say it symbolically? (Message format).
- Who should say it? (Message source).
8.3.1 Message content
The communicator has to figure out what to say to the target audience to produce the desired response. This amounts to formulating some kind of benefit, motivation, identification, or reason why the audience should think about or investigate the product. There are three types of appeals: rational, emotional, and moral.
- Rational appeals appeal to the audience’s self-interest. They show that the product will produce the claimed benefits. Examples are message demonstrating the quality of EBA’s education service, economy, and the advantage of study in Denmark. Consumers, when they buy certain big-ticket items, tend to gather information and compare alternatives. In our case, when people want to study abroad they will respond to the quality of school’s education service, economy, diploma, subject, class hour, and environment. They will compare with schools and countries make a decision at the end.
- Emotional appeals attempt to stir up negative or positive emotions that will motivate purchase. For example, in the days when students near the college/university entrance examination their parents will much more concern about student’s future. Students and their parents will worry about that students fail in the exam, because in China nowadays only 30% (at most) high school graduates can pass the exam to get higher education in Chinese college or university. In this case EBA can offer a ‘ higher education solution’ to students and their parents before the exam, tell them they can also get the best higher education service in Denmark when they fail in the exam. EBA can give them another way ‘out’ will motivate purchase.
- Moral appeals are directed to the audience’s sense of what is right and proper. From 1978 until now, Chinese subsistence level is much higher than before. Parents don’t want their children have a rough time like them. They think they owe their children too much. Therefore they always give the best to their children, food, clothes, toy, and of cause education. They think the children’s future is the most important. Therefore EBA should catch this mind, tell the parents that their children study in EBA can get the best education service and a best future, this is the best they can give to their children. EBA can say ‘This is the best way to show how much do you love your children’.
8.3.2 Message structure
A message’s effectiveness depends on its structure as well as its content. In EBA’s case, we should pay more attention on some negative reactions when we drawing the conclusion.
If the communicator is seen as untrustworthy, the audience members might resent the attempt to influence them. This is a very big problem when we choose an agent to doing the promotion. Because there were more than 40% students and their parents will not trust the agent company. When we ask people that what do you want agent company to do, there were more than 90% people’s answer is ‘honesty’. Here is a good example for explain why Chinese people cannot trust the agent companies. In April 2001, Beijing city government found that there were 309 study abroad agent companies in Beijing city, but only 46 of them are legal! That is a horrible number, lots of illegal agent companies lie to consumers even some of them are cheaters. Therefore EBA should choose an agent company very carefully.
Drawing too explicit a conclusion can also limit a product’s appeal or acceptance. If EBA had hammered away on the point that the Market economist cause was for the students who are just graduated from high school, this strong definition might have blocked other age groups who were attracted to it.
Two-side messages tend be more effective with better-educated audiences. Our target group include the people who are at lest finish their high school studies. Therefore that is a good idea for using a two-side message.
8.3.3 Message format
The communicator must develop a strong format for the message.
The guide EBA’s 2 years marketing economist course (see Figure 8.3.3), it can shows that EBA is very good at this way.
Figure 8.3.3, the front page of guide of EBA marketing economist course.
Made by Peter
A high quality paper shows that EBA is real pay attention to its image. The black backdrop can give a feeling to readers; EBA is a professional business academy. The white title shows that EBA is a regular and traditional education servicer. The green logo shows a typical European style.
Only from this front page we can see EBA is really good at making the message format.
8.3.4 Message source
Messages delivered by attractive or popular sources achieve higher attention and recall. In our case, the trustworthiness is very important. Therefore EBA can make a meeting for potential students, meet the old Chinese students who are studying in EBA. In our field research, there were 46% people will trust who are studying in a foreign school. So the message from the old Chinese students is a good message source.
8.4.0 Selecting the communication channels
The communicator must select efficient channels of communication to carry the message.
8.4.1 Personal communication channels
Personal communication channels involve two or more persons communicating directly with each other. Personal communication channels derive their effectiveness through the opportunities for individualizing the presentation and feedback. A foreign education service is a special product for Chinese. A consumer wants to buy this service then he/she has to learn a lot about this, before he/she purchase. Clearly, this is a complex buying behavior. Therefore a face-to-face promotion will help consumer to get more detailed information about EBA’s marketing economist course.
Personal influence carries especially great weight in two situations. One is with products that are expensive, risky, or purchased infrequently. In our case, the EBA’s marketing economist course is much more expensive than Chinese higher education service. Also this investment is risky, because the parents will worry about the future of their child. Therefore using personal communication strategy is very helpful for doing promotion in China.
8.4.2 Nonpersonal communication channels
Nonpersonal communication channels carry messages without personal contact or interaction. They include media, atmospheres, and events.
Media consist of print media (newspapers, magazines, and direct mail), broadcast media (radio, television), and electronic media (audiotape, videotape, videodisk, CD-ROM0, and display media (billboards, signs, and posters).
If you type ‘study abroad’ in SOHU.COM, you will found 137 Chinese web page about study abroad. Foreign school using Internet to introduce themselves in China is more and more popular. Usually, they through Chinese agent company or education service network to make the introduction on Internet in Chinese. EBA has its own web size in English, but the students in China will not visit at all. Because students cannot found it on some big Chinese web station like CN.YAHOO.COM, and SINA.COM.CN.
8.5.0 Establishing the total promotion budget
In this report we haven’t a certain problem about promotion budget, also we cannot get the information about this part. Therefore we will ignore this part.
8.6.0 Deciding on the promotion mix
EBA has five promotional tools, they are advertising, sales promotion, public relations and publicity, sales force, and direct marketing.
Many factors influence the marketer’s choice and mix of promotion tools.
8.6.1 The promotional tools
Each promotional tool has its own unique characteristics.
- Advertising. Because of the many forms and uses of advertising, it is difficult to make all-embracing generalizations about its distinctive qualities as a component of the promotion mix. Yet the following qualities can be noted:
- Public presentation: advertising is a highly public mode of communication. Its public nature confers a kind of legitimacy on product and also suggests a standardized offering.
- Pervasiveness: advertising is a pervasive medium that permits the seller to repeat a message many times.
- Amplified expressiveness: advertising provides opportunities for dramatizing the company and its products through the artful use of print, sound, and color.
- Impersonality: advertising cannot be as compelling as a company sales representative. The audience does not feel obligated to pay attention or respond.
In our case, EBA only recruit at most 30 students in China. Therefore some kinds of advertisement like TV advertising are not necessary. It also will waste the money.
- Sales promotion. Although sales-promotion tools are highly diverse, they all offer three distinctive benefits:
- Communication: they gain attention and usually provide information that may lead the consumer to the product.
- Incentive: they incorporate some concession, inducement, or contribution that gives value to the consumer.
- Invitation: they include a distinct invitation to engage in the transaction now.
Usually, in China the foreign school using the international educate exhibition as a sales-promotion. Our field research was support that is a good way to making the sales-promotion. There were 94%people will go for the international educate exhibition.
- Public relations and publicity. The appeal of public relations and publicity is based on their three distinctive qualities:
- High credibility: news stories and features are more authentic and credible to readers than ads.
- Ability to catch buyers off guard: public relations can reach many prospects who prefer to avoid salespeople and advertisements. The message gets to the buyers as news rather than as a sales-directed communication.
- Dramatization: like advertising, public relations have the potential for dramatizing a company or product.
Marketer tends to underuse public relation and publicity or use them as an afterthought. But in China that is a very useful strategy. In China there are a lot of statute and a lot of official manage departments. When a foreign company wants to go in to Chinese market, the first step is making a good relationship with those official departments. Otherwise it will be very difficult to doing marketing in China.
- Personal selling. Personal selling is the most cost-effective tool at later stages of the buying process. It has three distinctive benefits
- Personal confrontation: personal selling involves an alive, and interactive relationship between two or more persons.
- Cultivation: personal selling permits all kind of relationships to spring up, ranging from a matter-of-fact selling relationship to a deep personal friendship. After that consumer may introduce someone else to take the service, become another customer of EBA.
- Personal selling makes the buyer feel under some obligation for having listened to the sales talk.
- Direct marketing. Although there are many forms of direct marketing-direct mail, telemarketing, electronic marketing, and so on. It has four characteristics.
- Non-public: the message is normally addressed to a specific person. For example, EBA can send some information about the course to the Chinese student who is interest on it.
- Customized: the message can be customized to appeal to the addressed individual. It can give to people what they need.
- Up-to-date: a message can be prepared very quickly for delivery to an individual.
- Interactive: the message can be altered depending on the person’s response.
8.6.2 factors in setting the promotion mix
EBA must consider several factors in developing its promotion mix
- Type of product market. A foreign education service is a very special product. It has characteristics.
- Costliness. The tuition fee of EBA’s marketing economist course is 10,000 USD. It is very expensive for normal Chinese family.
- Long term. The course will spend at lest 2 years.
- Awareness. There are a few Chinese people know about Danish higher education.
- Culture. EBA’s promotion has to fit to Chinese culture.
Therefore the relative spending on promotion tools has been showed.
Figure 8.6.2
Relative spending on promotion tools in Chinese market for foreign education service.
Made by Peter.
- Push versus pull strategy.
A push strategy involves manufacturer marketing activities directed at channel intermediaries. For example, making a corporation with a Chinese agent company.
A pull strategy involves marketing activities directed at end users. For example, EBA can conducting an international educate exhibition in China with other Danish academy.
- Buyer-readiness stage. Promotion tools vary in their cost effectiveness at different stages of buyer readiness.
- Product-life-cycle stage. Promotional tools also vary in their cost effectiveness at different stages of the product life cycle.
In our case, EBA’s marketing economist course in China is in the introduction stage, advertising and publicity have the highest cost effectiveness, followed by personal selling to gain distribution coverage and sales promotion to induce trial.
- Company market rank. Clearly, a top-ranking brand derives more benefit from advertising than sales promotion. EBA is now in the low market rank situation, with low return on investment rises (ROI). Therefore EBA should pay more attention on sales promotion.
9.0.0 Evaluating the opportunities and threats
The business unit should set up a marketing intelligence system to track trends and important developments. For each trend or development, management needs to identify the associated opportunities and threats.
Opportunities. A major purpose of environmental scanning is to discern new marketing opportunities.
Opportunities can be classified according to their attractiveness and their success probability. The EBA’ s success probability to recruit in China is a little bit higher, compare to the other European countries’ schools, which are in the same level of institution. Because EBA is a relatively new academy, so its company reputation in Chinese brain is very lower, compares to American, England, Canadian and Australian schools, EBA’ s success probabilities are lower than them. All of the Chinese understands depending on there understands of Denmark. And Danish reputation compares to those counties’ above is much lower. Even it compares to the European, like French, Germany, Italian and Netherlands’, the EBA’ s reputation is also lower than their.
EBA’ s success probabilities:
- We have an advantage because we have the priority of entering market. In year 1997, EBA has started to recruit the first group of students in China. That is earlier than some European countries.
- EBA is always holding a very good relationship with the co-recruiting company.
- EBA has so many seasoned teachers. (Teachers’ teaching skill will influence the quality of education)
- The distribute ability of EBA’ s intermediary company is good.
- Consumers believe that EBA will offer them an excellent school service.
Threats. Some developments in the external environment represent threats.
Threats should be classified according to their seriousness and probability of occurrence. EBA is facing a few of threats below:
- The academies and colleges are entering the recruiting marketing of China one after another. Some of them even using the preferential policy in order to improve their attractiveness. Ant they are advertising widely for their schools and their countries.
- EBA lacks the understanding with the job of its intermediary company (executive of recruitment). That means, it is very difficult for the management of EBA to be concerned with recruiting, they lean on the intermediary company completely.
- Because of the different culture between China and West countries, the teachers lack the experiences with teaching Chinese students.
- Chinese students always take long time to get use to the new studying and living environment. So slow feedback of information that will influence the controlling and development.
10.0.0 Suggestions for programme
EBA’s Teachers work as an effective curriculum management team to benefit students. They use many up-to-date curriculum management practices in a well organised, attractive and well resourced learning centre. They deliver and evaluate programmes for individuals and groups of students. They keep records that indicate that students’ progress as a result of the programmes. This level of curriculum management is the result of the teachers’ and licensee’s commitment to provide high quality learning opportunities for students.
10.1.0 Programme implementation
Students enjoy themselves in the academy of very supportive teachers and managers. They have many learning experiences that are likely to contribute to their overall development.
Students particularly enjoy studying in small groups, for example when they learn about advertising and product planning. They delight in linking what they already know with new knowledge. They have their scientific, mathematical, language and social skills and knowledge extended when they discuss, take turns, research, read reference books, and writ the report as a member of a company. On these occasions, teachers allow the students to initiate ideas, develop new skills, and to follow their own constructive lines of inquiry. An example of how teachers help the students to develop skills was when a student asked a teacher to analyze a company’s strategies of development. The teacher demonstrated to the student how to start the task, before leaving the student to complete the task herself.
Teachers help individual student to enjoy experiences. For example, they help student to learn about Danish business law, and about concepts of number, measurement, and construction. Students enjoy challenging questions, reading about topics of interest, and discussing their ideas with teachers.
Reviewer observations and students’ achievement records suggest that students have their skills, attitudes and knowledge improved by the programme because teachers:
· regularly encourage them to improve their social skills. For example, they
encourage students to take turns, respect the work of others, co-operate
effectively, and be polite;
· establish one system to care for students’ healthy and safe attitudes;
· provide many opportunities to further develop the students’ language. They encourage students to try to use an extensive range of reference books at the library, to learn about science and other cultures especially Danish, and to ask and answer questions about their findings. Teachers extend students when they share information, encourage students to research their own questions, and encourage new ways of dealing with problems or issues;
· provide students with opportunities to learn useful practical skills. For example, the students learn management skills, about responsibilities in some big companies, make them as the managers;
10.2.0 Programme review
Teachers regularly review and evaluate the students’ programmes and achievements, and their own teaching strategies. These practices enable them to regularly improve programmes for students and to report to them about the progress they make. Definite their achievements they get.
11.0.0 Conclusion
No matter what you are trying to sell, whether its a vocational program, a new technology center, the hire of your hall, an invitation to an open day or a positive image to attract enrolments, you need a strategic marketing plan.
In today's competitive environment the question of how to successfully market yourself on a new and big market with a marketing plan is a key for success.
Today, we use the knowledge that the Esbjerg Business academy’s teachers are teaching us writ in the dissertation. In order to help EBA to analyze the potential market that it can get from a big developing country—China.
After the last step of the analysis above. We can find out the answer that we mentioned in the problem formulation.
- What is the effective and potential market for higher education in china?
There is a big potential market for higher education in China. According to the analysis of the research, the high school graduate with high family income is the EBA’s biggest potential market. Also EBA can focus on the students who are studying at colleges or universities.
- What does the market and competitive environment look like?
The competitive environment is sharp to EBA. So lot of competitors including the Chinese schools, colleges and the other countries’ colleges. But EBA has its own strength to recruit the students. That means EBA has more attractive than the others.
- Who is in the potential target market, and how can we effectively position ourselves compared to the competition?
The position of EBA is high quality and medium price.
- What should be our marketing strategies and how can they help us to grow the market?
The marketing strategies for EBA are adaptation of the product and promotion. Continue to use the distribution channel that EBA has used before. Agent will be suggested. In the long run situation, EBA should adapt the strategies of marketing plan. Especially on channel re-design and promoting. EBA should pay more attention at choosing a legal intermediary company.
- What should we do in the future? Build, hold, harvest, or divest?
Esbjerg business academy has its own position on Chinese market. The academy is providing good quality education. Students’ achievement records indicate most are performing at the expected levels. EBA should build a function for keep the Chinese students staying at EBA to continue their study. And hold the growth of market share.
12.0.0 List of literature
12.1.0 Books:
Information Guide- Esbjerg Business Academy, year 1998-1999
Curriculum for Marketing Economist- Esbjerg Business Academy,16, May, 2000
Marketing Management-Philip Kotler
Competitive Advantage-by Michael E. Porter
Marketing Research Essentials-3rd Edition, by Carl McDaniel, Jr.
Market Research-EBA
Sino Express-08/Oct/2000
Yearbook of Guangxi statistic-1995-2000
Yearbook of China statistic-1995-1999
News Letter-February 2001, Esbjerg Business Academy, 5th issue
12.2.0 World Wide Web
The Ministry of Education People’s Republic of China
National Bureau of Statistics
Ministry of Finance People’s Republic of China
Sino-Overseas Consultants Co., Ltd.
Sohu.com Inc.
EduShanghai International
Esbjerg Business Academy
Bank of China
China Today
Study abroad-Beijing
SINA.com, Stone Rich Sight
Danish Embassy-Beijing
USA Embassy-Beijing
Study abroad magazine
International education service of China
Study abroad Service
Study abroad information
Study abroad information
Study abroad information
Chinese student in Europe
New Silk Way Consultants Co., Ltd.
Guangdong International Education Exchange Service Centre
Study abroad information
Study abroad information
Education
Appendixes
Appendix 1
Introduction to Field Research
In order to complete this report, from 15th Dec 2000 to 15th Jan 2001, we made a field research in China. Basic on the questionnaire (200 pieces for student, 100 pieces for parents), we interviewed and got the papers back. The effective questionnaires in total are 253 pieces, 191 from students and 62 from parents. We random selected samples in 2 cities; they were Lanzhou City (the capital of Gansu province) and Nanning City (the capital of Guangxi autonomous regions). We were doing research in following schools.
Teachers University of North West (Lanzhou city)
No.1 middle school of Nanning city
No.2 middle school of Nanning city
No.3 middle school of Nanning city
No.13 middle school of Nanning city
No.14 middle school of Nanning city
No.26 middle school of Nanning city
There into the research in No.13 and No.14 middle school were unsuccessful, because they were taking an exam in that time.
Also we interviewed a study abroad agent company in Nanning city. That is Sino-overseas Consultants Co., Ltd. The purpose was getting some information about study abroad agent company, interrelated law, policy, and charge of the agent service, etc.
The interview in Bank of China was for getting information about the private consumption loan that can borrow money to the student who is going to study abroad.
Content and purpose of the questionnaire
We made 2 kind of questionnaire, one for students, the other one is for parents. But the content of these 2 questionnaires are almost the same. Therefore we only explain the questionnaire which for students.
In this questionnaire we’ve made 15 questions, the example has been show. Of course the language was Chinese when we interviewed and asked our interviewees.
There were 3 open-end questions and 12 close end questions. Now we will explain the questions and the purpose of each of them.
1. Which way do you wish to go preferably after your high school?
In this close-end question, we want to know the students and their parents wish to continue the study in China or study abroad.
There are 61% parents and 53% students hope they can take higher education in China. There are 6% students chooses another way after their high school education. Some of them want to get a job, emigration, and marriage, etc.
2. If you want to study abroad, which country would you choose?
In this question, we can find out our competitors.
3. Generally, the European quality of education is higher than the internal. What do you think about it?
- If there is an international education exhibition to be held in the locality, would you go there and pay a visit to it?
4 If there is an international educate exhibition will be hold in the locality, would you go there and pay a visit to it?
0 No Answer 0 0,0%
1 Definitely go 32 34,4%
2 Probably go 56 60,2%
3 Not sure 4 4,3%
4 Probably not go 0 0,0%
5 Definitely not go 1 1,1%
5 Which factor is the most important one when you consider study abroad?
0 No Answer 0 0,0%
1 Price (include tuition and living cost) 33 35,5%
2 Level of education 48 51,6%
3 Diploma 4 4,3%
4 Educational system 3 3,2%
5 Subject 5 5,4%
6 other, please specify 0 0,0%
6 What would your families think of when you have a plan for study abroad?
0 No Answer 0 0,0%
1 Definitely support 30 32,3%
2 Probably support 46 49,5%
3 Not sure 11 11,8%
4 Probably against 6 6,5%
5 Definitely against 0 0,0%
7 If someone of one of Chinese studentn in Denmark recommends you a Danish academy, you would
0 No Answer 0 0,0%
1 Definitely go 5 5,4%
2 Probably go 38 40,9%
3 Not sure 29 31,2%
4 Probably not go 15 16,1%
5 Definitely not go 6 6,5%
8 How reliable do you think the study abroad intermediary companies are in China?
0 No Answer 0 0,0%
1 All of them could be reliable 2 2,2%
2 Mostly could be reliable 22 23,7%
3 Unaware of that 31 33,3%
4 Few of them could be reliable 36 38,7%
5 All of them could not be reliable 2 2,2%
9 How many people that you know are studying or going to study abroad?
0 No Answer 2 2,2%
1 None 28 30,1%
2 1-5 39 41,9%
3 6-10 16 17,2%
4 10-15 1 1,1%
5 16-20 2 2,2%
6 Above 20 5 5,4%
10 What kind of the help and the condition do you want to get from the external school?
11 What's your desire to the intermediary companies?
12 Family income per year
0 No Answer 33 35,5%
1 Above 100,000 3 3,2%
2 60,000-90,000 4 4,3%
3 50,000-10,000 28 30,1%
4 Below 10,000 25 26,9%
13 Age
0 No Answer 2 2,2%
1 15-20 86 92,5%
2 21-25 5 5,4%
3 26-30 0 0,0%
4 Older 30 0 0,0%
14 Sex
0 No Answer 2 2,2%
1 Male 44 47,3%
2 Female 47 50,5%
Appendix 2
Certificate of private study abroad agency service qualification
Issuing by ministry of education of PR China
Business license
Issuing by bureau of business administration of Nanning city
Executive summary
Outcomes of the two years’ hard work are visible. Staffs have a professional attitude to their work. Providing well-planned units of work within interesting contexts. Lessons are supported with an appropriate range of resources. Students move around the school quietly and are motivated to learn. Discussions with students indicate that they enjoy school life, consider they are learning and being prepared well for their next phase of education. Works displayed around the school are creative and of good quality.
The academy uses self-review to identify its own improvement needs. The Office finds that issues evident in this review are already in hand. Areas for further development relate mostly to the design and implementation of the school assessment systems to obtain greater consistency of measurement. The intended development of benchmarks for expected achievement in targeted knowledge; skills and attitudes should assist individual teachers to mark daily student work, provide achievement-based feedback and facilitate student progress.
Students are relaxed, comfortable and convey a sense of enjoyment and belonging in their attitudes to each other and their teachers. Students are encouraged to respect others and themselves through the consistently high behavioral expectations placed on them by the principal, senior managers, staff and senior students.
The well-planned, well-structured learning programmes provide students with secure learning environments. The extensive co-curricular social, cultural and sporting activities encourage students to participate, perform and gain confidence and self-esteem. A sense of wellbeing, pride and belonging is fostered through regular celebration and reward of student achievement at school assemblies and through the daily encouragement given by teachers to groups and individuals.
There is the greater consistency has been achieved in the quality of learning programmes that are suited to the diversity of student learning needs. Senior managers have strengthened the quality assurance procedures and systems for providing information on student achievement. The management structure supports a professional climate of self-review, innovation and continuous improvement. Effective communication, supported by clear documentation, results in effective management and decision making.
A significant proportion of students are from non-English speaking backgrounds. The academy has a number of international students. In our report describes mainly from China. The main object of our dissertation is evaluation the attractiveness of Chinese market for the academy.
In our report the first step we introduce the background of our dissertation and Esbjerg business academy, and its product. EBA has a good environment for studying. The international studying environment is what the students want to get from a school. The good quality of education lead to students enjoy themselves with each teach and classmate, and the other student who are not studying market economist course. The Market Economist course is the product that EBA offer to Chinese students.
Step 2, we analyzed the competitive environment in China. Economics is not mentioned in the title of this dissertation about the history of Chinese competition policy. In today’s sharp competitive environment, EBA has to know that which strategies of its competitors are using. So that it can get the capacity to compete with its current competitors and new competitors.
Step 3, is to define the people to whom we wish to target. That is identifying our target audience. Sort them into groups so that we can relate to their specific needs and deliver a message that is relevant to them. This is called segmenting our market. Of course EBA cannot offer the best education for every student in China. Therefore we should use STP marketing model.
These three steps are:
Market segmentation: Identify and profile distinct groups of buyers who might require separate products/ or marketing mixes.
Market targeting: Select one or more segments to enter.
Market positioning: Establish and communicate the products’ key distinctive benefits in the market.
In our situation, EBA’s market consists of buyers (potential students), and buyers differ in many ways. The buyers differ in their want, purchasing power, geographical location, buying attitudes, and buying habits.
The People’s Republic of China is administratively divided into 23 provinces, 5 autonomous regions, 4 municipalities and 2 special administrative regions (SAR).
Step 4, we made a position for EBA in Chinese market compare to the other competitors. We consider that the position of EBA is high quality of education and medium range price.
Step 5, analyzed the product mix strategy. EBA’s product is marketing economist course, it’s a Danish higher education service.
Abroad education service is a very special product (service). Consumer has to expend a lot of money and time. Therefore they will think about it very carefully before they make a decision.
Step 6, we suggested a pricing strategy for EBA. EBA should use the most elementary pricing method, Markup Pricing. That is to add a standard markup to the product’s cost. That must include the salary for each teacher, and the fee for executive operating system.
Step 7, Our target audience includes the students and their parents (and other family members). Students are the consumer of EBA education service; their parents are the customer and decision-makers.
According to our questionnaire, in question No.2, there were only a few people choice Denmark to take their higher education. Also in our interview, we found there is a lot of Chinese have never heard of anything about Danish higher education. Therefore the EBA’s challenge is to build greater awareness.
In question No.3, we asked about the image of European higher education. There were 71% parents and 68% students agree that the European higher education is better than Chinese higher education.
EBA has a good favorable attitude as same as the other business academies or college in other European countries. Therefore EBA must gain the attention of more people, since those who know it consider it a good academy.
Therefore EBA must gain the attention of more people, since those who know it consider it a good academy.
In our situation, the consumer of EBA’s education service has high involvement with the service category and perceives high differentiation within the category. Therefore we will work with the Hierarchy-of effects model and describe how marketer should behave in each of six buyer-readiness stages. They are awareness, knowledge, liking, preference, conviction, and purchase.
A message’s effectiveness depends on its structure as well as its content. In EBA’s case, we should pay more attention on some negative reactions when we drawing the conclusion.
If the communicator is seen as untrustworthy, the audience members might resent the attempt to influence them. This is a very big problem when we choose an agent to doing the promotion. Because there were more than 40% students and their parents will not trust the agent company. When we ask people that what do you want agent company to do, there were more than 90% people’s answer is ‘honesty’.
Step 8, in this step, we choose the distribution channel from the three major feasible channel. In a market environment EBA must drive its message through illustration, make itself known, make it easy for people to find us and easy for people to deal with us. An intermediary company will be suggested. Schools are fortunate to have access to many channels of communication, such as newsletters, media promotion, direct mail and person-to-person contact that can be used to reach internal and external audiences. By using individual examples the school would illustrate repeatedly that young people are responsible and good at what they do and that students in service industries are valuable members of the community.
Step 9,
About our field research:
In order to complete this report, from 15th Dec 2000 to 15th Jan 2001, we made a field research in China. Basic on the questionnaire (200 pieces for student, 100 pieces for parents), we interviewed and got the papers back. The effective questionnaires in total are 253 pieces, 191 from students and 62 from parents. We random selected samples in 2 cities; they were Lanzhou City (the capital of Gansu province) and Nanning City (the capital of Guangxi autonomous regions).
Also we interviewed a study abroad agent company in Nanning city. That is Sino-overseas Consultants Co., Ltd. The purpose was getting some information about study abroad agent company, interrelated law, policy, and charge of the agent service, etc.
The interview in Bank of China was for getting information about the private consumption loan that can borrow money to the student who is going to study abroad.
There into the research in two middle schools were unsuccessful, because they were taking an exam in that time.
We made 2 kind of questionnaire, one for students, the other one is for parents. But the content of these 2 questionnaires are almost the same. Therefore we only explain the questionnaire which for students.
In this questionnaire we’ve made 15 questions, the example has been show. Of course the language was Chinese when we interviewed and asked our interviewees.
There were 3 open-end questions and 12 close end questions.
After that we evaluated the opportunities and threats. Opportunities can be classified according to their attractiveness and their success probability. The EBA’ s success probability to recruit in China is a little bit higher, compare to the other European countries’ schools. But at the same time EBA get the threats from some big developed countries as America, England, Australia, and some EU countries, France, Germany.
Finally we give some suggestions for EBA’s programme. The main way is the review program. In order to keep looking the achievement the students have got. And in the conclusion we answer the question that asked in the front of the dissertation. Let the while report complete.
