MARKETING

Service Marketing

Table of Contents

Introduction1

Size of the Education Industry in United Kingdom1

Issues in Service Marketing2

Problem Statement4

Problems in Marketing Educational Sector4

Third Party Accountability4

Solution4

Client Uncertainty5

Solution5

Experience is Essential5

Solution6

Limited Differentiability6

Solution7

Maintaining Quality Control7

Solution7

Discussion8

Assessment of Opportunities and Threats/Problems facing the Sector8

Unemployment8

Restrictions over international students8

Lack of Funding9

Financial Instability9

Marketing Strategy of the Education Sector10

Development of Industrial Organization Theory10

Promotional Marketing Strategies11

Commonalities of Service Marketing Strategies among leading players13

Differentiating of Service Marketing Strategies among leading players13

Service marketing issues for next five years14

Relation between the issues and the principles of service marketing of Selected Institution15

Solution of the Problem through relative Service Marketing Theory15

Conclusion16

References17

Service Marketing

Introduction

Size of the Education Industry in United Kingdom

United Kingdom has the sixth largest global economy. Leading the Industrial revolution, U.K. has now started putting global economy into consideration. The city of London is the fifth largest economic metropolitan of the world and is the center of global finance and trade.

In the educational sector, U.K. is growing at a rapid pace. Each year, numerous foreign students, got attracted with the vibrant educational market of U.K because a number of world's leading education institutions are operating in this country, with high standards of education, wide range of courses and various degree programs.

Within the educational sector, I am focusing on the higher education sector of United Kingdom. Considering the statistics of 2010, 111,000 international applicants had applied for full-time undergraduate degree program and out of which 63,000 applicants got selected. Considering UK-domiciled students, 587,000 applicants applied in 2010, out of which 425,000 got selected. In the session of 2009/10, around 2.49 million students were studying in full-time and part-time degree programs of higher education in U.K, categorized into 19 different categories. Business and administrative studies always hold the most number of students, in 2009/10, there were around 0.35 million students studying in this category.

Focusing on the international market of U.K. educational sector, the greatest chuck got entertained from Asian region. A study of 2010 revealed that 42% of the international students in British higher educational institutions were Asians, followed by European union students (excluding U.K.) and then African, North American and Middle Eastern.

On an average around 15,000 students are studying at every higher education institute in U.K. Out of 165 higher education institutions, 52 are serving to more than 20,000 students whereas, 23 institutions are serving to 15,000 to 20,000 students and 23 are serving to 10,000 to 15,000 students. With such large numbers of students, the average annual income of each higher education institute, in 2010, was £162 million (£154 million in 2008/09). The total annual income of entire higher education sector, in 2010, was £26.73 billion (£25 billion in 2008/09). International students are also a primary source of income for this sector. In 2008, higher education sector generated revenue of £1,880 million only from international students, which excludes students from European Union countries. In 2009, revenue around £2,200 million got generated, and in 2010, £2,580 million got earned. The total expenditure of higher education sector of U.K. in 2009/10 was £25.9 billion.

Considering the facts and figures discussed, one can easily estimate ...