Online MBA Programs:
Marketing Plan
Abstract
There is growing demand of online MBA programs across the world. The basic reason of this growth is the advantages the online programs are provided to the students. Before online courses, MBA program are in mostly demanded by the students and the organizations. This is due to the reason that it helps students to develop their knowledge, skills and career goals efficiently and effectively. At the same time it also helped organisation to have increased productivity and profitability. With the advent of technology and communication, Internet becomes popular. And with this, online academics programs started. Online MBA program is one of such program. It is widely preferred due to the reason that it provides quality education regardless of time, distance, money and working professional constraints. Here, marketing plan is prepared for the University of Phoenix.
Company Overview
Online MBA program is provided by many leading business school; as an alternative for those who cannot attain regular classes. University of Phoenix is one of such university that was started in the year 1976 and currently it is the largest private university in North America. The university is accredited through Higher Learning Commission of the North Central. This university has mission to satisfy the various needs of working students. It provides access to higher education fostering enhanced knowledge, skills and values for the students to achieve their career goal, increased productivity for the organization and leadership for the society. The university provides both local campus and online MBA programs. The university utilizes advance and innovative technology, online library, e-books, computer simulations for its students. Currently university consists of students studying at 200 centres and also across the globe through online program. Thus, it is offering MBA program across the globe fostering students to earn MBA degree while working and without sacrificing quality of education.
Executive Summary
MBA programs are increasing day by day. During 2001 to 2003, online graduates programs have risen from 48 to 246. It has been seen that MBA degree has positive impact on employment, short term and long-term income and also in terms of job promotions (Zhao et al., 2000). Thus, the major reasons for such an exponential growth of MBA programs are individual’s progressive career and improved management performance (Lewis, 1992; Mihail & Elefterie, 2006). But the rising trend of Online MBA is due to flexibility of time management and convenience. (Arbaugh & Duray, 2002). More and more business executives, professionals prefer to enrol in online MBA through Internet. This provides them with business knowledge based on international foundations. It fosters opportunity for the student across the globe to interact in virtual classroom and share their ideas. Moreover, the online MBA programs are increasing also because of being cheaper in comparison to conventional MBA classes. So with the increasing demand for Online MBA, this paper presents marketing plan to design attractive and affordable program for the target customers as well as an opportunity for the university to earn increased revenue, long term sustainability and competitive advantage in the global market. Marketing plan presented will be including sections – target market, competitors, description of product or services, marketing budget, pricing strategy and recommendations.
Target Market
Market consists of heterogeneous types of products, services, needs, and customers. As a marketing strategy, marketer has to decide which particular groups of customers are profitable to achieve company objectives. Thus, dividing the market into groups having similar need, demand for products or services, behaviour, and similar response for the marketing efforts; is known as segmentation. This segmentation is done on the basis of demographic, psycho graphic, geographic etc. After segmenting the market into the next step is to choose target market. Market targeting is the process of evaluating various market segments attractiveness and then entering into one or more segments. Target market is the market that consists of a set of buyers who share common needs or attributes that company wants to serve (Kotler and Armstrong, 2000). Target market is selected on the basis of segments that are most profitable foe the company and that can generate customer value and long-term growth for the company.
Target market for Online MBA programs are having scope in both national and international market. The primary focus on the business professionals or full time working students who cannot attend regular classes. The secondary target are the foreign individual who wish to pursue MBA from the university but due to time and place constraint, cannot get enrol in the course. The other target is the family member who cannot pursue their education due to family life. The other segment that can be targeted are either local or foreign individuals who wish to pursue MBA with the university but due to money constraint cannot get admitted in the university. Thus, target market for the Online MBA programs are any local or international individuals who can pursue MBA through campus due to time constraint or being working professionals or due to place constraint or because of financial constraints. The online program will be beneficial for these target market as they can earn MBA degree while working and from anywhere in the globe, without sacrificing the quality of education.
Competitors Analysis
Competitor analysis is the process of is the process of finding out key competitors, their objectives, their strategies, strength and weaknesses. It is necessary to compare its products and services, prices and promotions strategies with its close competitors. The steps in analysing competitors are described as below:
The University of Phoenix is the best university providing online MBA program (ibtimes.com, 2010) and major competitors of the University of Phoenix in the market place are:
DeVry University – it has the second position among the university offering online programs. North Central Association has accredited it. Various program are offered having integration of blended learning with the real business perspective.
AIU Online – American InterContinental University is the university that is accredited by Southern Association of Colleges and schools (1987 – 2009). Since 2009, the university has been accredited through Higher Learning Commission of the North Central. It has mission to provide educational needs of culturally diversified student who are spread geographically across the globe. The course is designed to provide information that is market –relevant through combination of business education and real world situations.
Capella University – the university is accredited by Higher Learning Commission. It is also a member of North Central Association of Colleges and Schools. This university provides online MBA program to advance their career through topics like management of change, ethical leadership and negotiations. They provide professional coach to assist the learner in achieving competitive advantage at workplace; course designed according to busy lifestyle, flexible, high quality education system through blended learning. The program starts at the interval of every six months and will be completed within two years.
Walden University – this university provides MBA degree that broadens learner’s knowledge, critical thinking skills, and leadership skills and enhanced career growth opportunities. They offer specialization in various fields like: entrepreneurship, corporate finance, healthcare management, human resource management, health care system, marketing, leadership, international business, project management, risk management, technology management and strategies for sustainability.
Description of Product or Services
The university offers innovative curriculum with high quality of faculty’s with advanced degrees an experience in their respective fields. They are having electronic courses that are available to all students worldwide at any time. Online University Library provides ample of course materials, research materials and expert guidance through the specialists. The curriculum designed also incorporates business scenarios and business models that foster critical-thinking and decision-making skills within the students. The university offers online learning facility for the students. It combines online face to face to learning. Various delivery methods are used for example: face-to-face classroom i.e. virtual classroom, self-paced instruction, streaming video, web-based training, and e learning, e mentoring, etc; through software, web-based, EPSS, online self-assessment, knowledge databases, chat and instant messages, online feedback etc (GrayHarriman.com, 2004). The main advantage for the growing culture of online learning’s are: 1) It is creative technique in comparison to traditional methods i.e. classroom methods. 2) This method foster increased interaction between instructor and the learner. 3) It provides homogeneous access of learning for any learner across the globe at all the times. 4) Facilities like chat rooms helps to increase interaction between the instructor and the learner, help them to resolve there doubts instantly, 5) It allows students to share their personal work online to stimulate their performance, can download materials from internet to supplement their knowledge.
Marketing Budget
Online Campus
The campus of the university is in online format where students and instructors interact through online medium and asynchronously. This helped in gaining control of time and place where and when interaction can take place. Online campus helps students to work in groups without any geographical constraints. The online campus websites provides facilities to
Check emails,
Have access to various student services,
Participate and complete coursework through electronic forums,
Participate in class according to their time and flexibility,
Working in a small learning teams,
Online communications with classmates, instructors and counsellors,
Online facilities for paying fees, obtaining grades, requesting of transcripts etc.
The university provides Online MBA program starts at the interval on every six months and requires a minimum 36 credits. The core MBA includes management, human capital management, business law, quantitative reasoning, quantitative management, economics, accounting, marketing, corporate finance, strategic planning and implementation. It offers specializations in the following areas:
Accounting – the students gets understanding of accounting concepts, application and competency to use appropriate technologies.
Energy Management – students will develop managerial skills that are required to face challenges in the energy sector. They will gain knowledge and evaluation skills to evaluate cases related to renewable and non-renewable sources of energy.
Global Management – develop skills to deal with cross border business opportunities, challenges faced due to international economy, diversity in political, social, legal and cultural aspects.
Health Care Management – this is to develop managerial skills required to deal with challenges in the healthcare industry.
Human Resource Management – this will provide knowledge about the legal, social and ethical values of human resource management practices.
Marketing – this helps to develop skills related to marketing concepts, applications innovative marketing approach towards stakeholders.
Project Management – this develops managerial skills required for understanding project management concepts, five processes and the applications.
Technology Management – this will develop skills and abilities to integrate business with technology.
Pricing Strategy
Pricing decision is affected by both internal and external factors. Internal factors include analysis of marketing objectives, costs, marketing mix and organizational considerations. The pricing strategies generally are designed to have survival, profit maximization, gaining leadership in market share, and product quality leadership. Cost to be analysed includes both fixed costs and the variable costs. External factors affecting pricing decision are types of market i.e. pure competitions, monopolistic competitions, oligopolistic or perfect market conditions. In case on online MBA program there is perfect competitions in the market with free entry and exit barriers, large numbers of players, price set through forces of demand and supply. The other factor that affects the pricing strategy is competitors price and offers.
There are various strategy to set price i.e. cost based pricing, break-even analysis and target planning, value based pricing, competition based pricing.
Summary and Implementation Plan
The Online MBA program is innovative, interactive approach that helps individuals to earn MBA degree. The university of Phoenix is already ranked among the various Universities providing Online MBA programs. The university gain competitive advantage for being able to provide curriculum that is well integrated with business education requirements and real life challenges. The university currently offers concentrations only in eight fields. To sustain in long term and gain more market share it should offer more concentration in more areas that are critical in today’s world. It is proposed that it should add additional specialization in the field of leadership, entrepreneurship, strategic management etc. This can be added to the curriculum after making surveys and analysing the demand for the major specialization. Additionally, they had online learning system that adds competitive advantage for the university as it offers courses, resources, guidance, consultancy through online medium that resolves the constraint of time and place. The individuals in working profession can also earn MBA degree and progress towards career path. The university program must be developed to gain competitive advantage thorough differentiation. The course should be design that is not offered by any of the competitors and raise its brand value. After having a high brand value and image, pricing for the courses must be based on value pricing. This pricing is based on the perception of customers about the value derived from the course. First target price will be set at customer’s perception of the product value and then it will be designed accordingly. Thus, differentiation strategy will help to gain competitive advantage and value based pricing will foster good revenue generation. Therefore, it can be concluded that, this marketing plan will help to gain more market share, high ranking and triple bottom line for the university.
References
Arbaugh, J.B. & Duray, R. (2002). Technological and structural characteristics, student learning and satisfaction with web-based courses: An exploratory study of two on-line MBA programs. Management Learning, 33(3), 331-347.
Kotler and Armstrong. (2000). Principles of Marketing. Ninth Edition. Prentice Hall Publication.
Lewis, J. (1992). Student expectations on the Open Business School’s MBA, Target Management Development Review, 5(2), 16-23.
Top Online Colleges And Online Universities In U.S (2010, October, 4). Retrieved from http://www.ibtimes.com/articles/68449/20101005/top-online-colleges-and-online-universities-in-u-s.htm
Zhao, J.J., Truell, A.D., Alexander M.W. & Hill, I.B. (2006). “Less success than meets the eye?” The impact of master of business administration education on graduates’ careers. Journal of Education for Business, 81(5), 261-268
