xidp.com
Your independent source on international education
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Market research and international educationMarket research plays a key role in businesses: it anticipates, investigate and predicts consumer and client reactions to products and services. Market research is a key component in the marketing process that help businesses to avoid pitfalls (and the consequential losses in money) and to maximise or optimise the relations of consumers with products, services and brands. In markets characterised by maturity (eg. saturation of products or services, stagnated demand) the role of market research becomes more important than ever. The traditional early stage of a market in where products are rapidly adopted and the competition is low is sustained by high volume and high profit margins by those ones leading the market. It can be said that Australian international education has passed that phase. It is what I called in my previous article as 'happy growth'. The following phase is what it can be called an 'slow down' phase. It's where the growth declines to more 'sustainable levels'. In the main English Speaking Destination Countries this can be around 5 or 6 per cent per annum. This is the compound growth rate in the United States in the period 1997-2002, before the introduction of the immigration SEVIS system. Interestingly it is also the growth rate in numbers of international students in Australia experienced in 2004, compared to 2003. It can be said that Australia's international education industry is phasing into a 'slow down' phase. Growth will continue but not at past levels. In this case, it can be said that market research will play a fundamental role in the future of institutional marketing strategies. High volume and margins will not base future growth. To attract international students, institutions will need to have in-depth understanding of the international education markets. Similarly, competitor analysis will become crucial to anticipate future threats and potential market opportunities. Hence, marketing intelligence will play its part too. Consequently, it will not be enough to analyse past trends. In a rapidly changing market environment, to analyse historical data may not be enough. Australian institutions will need to invest on investigating the decision-making process in different education markets, behavioural attitudes to country and study options, intention to study, likeability, brand image, advertising evaluation and more. It will also need to track markets to understand the impact of competition in markets. Sound marketing decisions will need to be based on 'facts'. Conducting market research is not a 'value-for-money' exercise. However, it can save lots of money to those who are willing to invest in 'the right product'. A market pitfall can cost hundreds of thousands of dollars and can damage institutional reputation. In Australia, international education marketing research and consultancies can be carried out by specialists with strong experience in the industry.
- are among the better known researchers and consultants in the field. At the same time, AEI has been carrying out or sponsoring research into industry aspects of international education. Given that represent the Australian Government, its research has focused more on the Australian branding and positioning. However its database of resources is one of the best available, much of it for free on registration. There are also other researchers in different peak bodies and institutions. The emergence of the professional association, the International Education Association of Australia (IEAA) is promising, especially as it foreshadows "action research and data collection relating to the profession", among its members services. Considering that the market is becoming more complex, and students are facing an increasing number of international education options, I expect this market needs to be better understood. Consequently, I believe that growth in consumer and client market research can be expected. In the meantime, before you rush into the embrace of a pricey research firm, make a point of grasping what is already well documented, if not, well known. It's worth recalling Westheimer's Discovery: "A coupla months in the laboratory can save a coupla hours in
the library."
Marcelo Follari ABN: 86 079 691 845 |
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Marcelo's ArchivesMarket research and international
education 2005: The Challenges Ahead
The 'happy years' of growth are over and they will seriously impact
on the university business. What now? Blame it on the dollar? "...If you want to stay in the international education field,
this website is becoming a mandatory reference for the industry."
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